Late payment problems lead to redundancies at electrical and mechancial contractor.

31st May 2019.

Late payment problems have lead to redundancies at Star Services (Southern).

The Wiltshire based Mechanical & Electrical services specialist, Star Services (Southern) has made the “majority” of its staff redundant after being hit by late payment problems.

Star Services (Southern) Ltd provide mechanical and electrical services in the industrial, commercial and domestic sectors.

They provide installation of electrical systems including lighting, power, fire alarms, intruder alarms, data and telecoms and mechanical installations including plumbing, heating, ventilation, air conditioning and specialist services such as photovoltaics, air source heat pumps, other renewables and steam.

In a letter sent to all staff by boss Nick Yeomans earlier this month it says: “It is with deep regret that I have to inform you that Star Services (Southern) Ltd is unable to continue trading in its current form. Despite the best efforts of the directors and all of the staff we have been unable to sustain the impact on the business caused by non-payment from one of our main contractors.

“We have no option than to make the majority of staff redundant.”

“It is a sad day for all of us.”

The latest accounts filed at Companies House showed Star Services employed 33 staff last year.

Are you affected by late payments?

All to often we see perfectly good companies destroyed because of cash flow difficulties caused by late payments.

A perfectly good company can be undone because their customers refuse to release payments when they are due. Without the necessary funds, they can’t pay their own suppliers or staff and end up ceasing to trade.

With pressures on the UK Business it is essential that you stay on top of the credit limits you grant and watch carefully for any late payments.

You can’t just assume your customers can and will pay you, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

See the section below – About CPA.

Do you realise you may have hidden capital tied up in your business?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If like Star Services you are struggling and need extra capital, rather than shutting down or jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden stash of cash  within your business, sitting there, just waiting to be uncovered and released?

We can help you uncover a hidden goldmine, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to ruin any customer relationships you value.  It is one that allows you to find out who’s been paying late and to realise the significant sums in compensation you may be due, under The Late Payment of Commercial Debts (interest) Act 1998, from relationships that have soured.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could be the cash rescue your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cashflow.

Don’t let your bankers control you, contact CPA today.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply to retailers like Select or small ones, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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