New emergency support –  business news 24 September 2020.

James Salmon, Operations Director.

The Chancellor is to announce new emergency support, business growth slows, return to the office abandoned, covid-19, market and other business news.

Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.

Chancellor to announce new emergency support

Chancellor Rishi Sunak has cancelled his planned autumn Budget and will instead announce a package of new emergency support for UK businesses in a bid to stop mass unemployment. Sunak was supposed to unveil his second budget this year within the next few weeks, as he prepares the country for the next stage of its economic recovery.

The Chancellor has postponed his November Budget until next year amid the financial turmoil created by the pandemic, but today will announce how a replacement for the furlough scheme will form part of a new emergency support economic rescue package.

Rishi Sunak is expected to announce a wage subsidy scheme for people only able to work part-time, along with an extension to four different lending schemes.

These should help keep credit flowing to businesses hit by the fallout from the virus, while companies could be given more time to pay VAT and other tax bills.

The CBI, the TUC and Acas have issued a joint call to businesses to “exhaust all possible alternatives” before making redundancies, but if they became inevitable, to treat workers fairly.

UK business activity growth slows as new Covid-19 restrictions take effect

Growth in business activity in the UK slowed in September, according to a closely watched survey that indicated a summer economic surge was at risk from new restrictions to curb coronavirus.

The IHS Markit/Cips UK flash composite purchasing managers’ index, down from a 72-month high of 59.1 in August but still above the 50-mark separating expansion from contraction.

The flash reading, based on 85% of the usual monthly responses, was taken before the prime minister announced further restrictions to control coronavirus on Tuesday.

IHS Markit economist Chris Williamson warned: “Unemployment is likely to soon start rising sharply…(which) raises fears that growth could fade further as we head into the winter months, especially as lockdown measures are tightened further”.

City of London abandons plans for widespread return to office

A raft of City companies have halted plans to bring staff back into the office. Thousands of staff at firms such as JPMorgan and PwC who had been brought back will now revert to working from home after Boris Johnson reversed guidance on returning to offices. The FT’s Lombard says the City of London risks being permanently damaged by the atomisation that comes with coronavirus restrictions. The Times cites Catherine McGuinness, policy chairwoman of the City of London Corporation, who comments: “We are disappointed at the blanket call for office workers to return to working from home where possible. Firms have taken huge steps to make sure that their offices are Covid-secure. It’s clear that this virus isn’t going to go away quickly so we need to find a way of living with it that doesn’t cripple our economy.”

Watchdog urged to force insurer to pay firms hit by Covid

The Financial Conduct Authority is being urged to use its enforcement powers against Hiscox to force the company to start making payouts to small businesses hit by the pandemic. Lawyers acting for almost 400 firms want the insurer to start making interim payments after a High Court judgment last week found in favour of arguments that the FCA had presented for policyholders.

Lord Digby Jones: Help businesses create wealth

Lord Digby Jones writes in the Express on ways Rishi Sunak could help boost the economy. Forefront in his mind should be support for small businesses and the first thing the Chancellor should do is exempt them from employers’ National Insurance. He also calls for fairer taxes for online giants which continue to get away with paying little tax on UK sales.

UK companies under-prepared for Brexit, BCC finds

Analysis by the British Chambers of Commerce suggests only half of UK firms have taken steps recommended by the Government to prepare for Brexit while just 38% have completed a Brexit risk assessment this year, compared with 57% in 2019. BCC Director General Adam Marshall said: “The Government must ramp up engagement with businesses urgently to ensure that the real-world issues facing firms get tackled immediately.”

Covid-19 general news

With 262,748 new cases reported yesterday the tally rise to 31.8 million with deaths now 976,640

Prime Minister Boris Johnson has vowed to bring in further measures to support businesses affected by the latest coronavirus restrictions as he comes under pressure to extend the furlough scheme. Calls are growing from the UK’s most prominent business groups and from opposition MPs to extend the government’s wage subsidy scheme, which is due to end next month, or replace it with a similar programme.

France moved to tighten restrictions to curb the spread of the covid-19. Health Minister Olivier Veran announced bars and restaurants in Marseilles and Aix-en-Provence will shut down while in Paris gatherings of more than 10 people will be banned and pubs will have to close early. Like in the U.K., people were urged to work from home as much as possible

The government is considering carrying out the first vaccine studies that would involve deliberately exposing healthy people to covid-19.

President Donald Trump signalled he could overrule any tightening of U.S. rules for the emergency clearance of a coronavirus vaccine, a move that could increase concerns that the race to find a shot is being politicized ahead of the presidential election

Markets.

The FTSE 100 ended yesterday sharply higher, gaining 1.2%, while the 250 added 1% as stocks in London ended higher despite disappointing economic data from the UK and Europe, as investors were given a repreive from harsh UK lockdown restrictions. The fact that the PMs announced new restrictions stopped short of a full lockdown proved a boost to markets.

Risk aversion continued to dominate the markets in the US, on concern of another wave of covid-19 heading into Autumn and winter. US stocks closed notably lower after brief initial rebound. Asian markets follow with heavy selling, with major indices in deep red. In Asia the Nikkei is down -0.89%, Hong Kong HSI is down -1.78%, the China Shanghai SSE is down -1.46% and the Singapore Strait Times is down -1.08%. Overnight in the US the  DOW dropped -1.92% the S&P 500 dropped -2.37% and the NASDAQ dropped -3.02%.

The oil price rose to around $42 a barrel, supported by rising investor risk appetite and as US fuel inventories fell, although rising supply and stalling demand worries capped gains. The Gold price meanwhile dropped to a six-week low as the dollar held onto its rally, while a lack of more stimulus to aid the recovery of the global economy further weighed on sentiment.

Majority back tax rises to pay for Covid

A poll by the think tank Demos has found that 58% of the public would back increasing income tax for everyone by 2p in the pound to help pay for the coronavirus crisis, while raising the personal allowance to £20,000. Just 37% of respondents supported the idea of a 1p in the pound rise for everyone while 69% of people would support raising income tax on earnings over £100,000 per year by 10p in the pound.

Dimon open to higher income taxes for the wealthy

JPMorgan chief Jamie Dimon has backed the idea of higher taxes on the income of the rich but said a wealth tax would prove over-complicated and ultimately unworkable. “There are taxes which will slow down growth, like taxes on capital formation or labor, and there are taxes which will not affect growth, like taxes on, you know, well-to-do people like me,” he told CNBC on Wednesday. “I’m not against having higher tax on the wealthy,” Dimon said. “But I think that you do that through their income as opposed to, you know, calculate wealth, which becomes extremely complicated, legalistic, bureaucratic, regulatory, and people find a million ways around it. I would just tax income.”

Government confirms it will maintain triple lock

The Government has confirmed it will maintain the triple lock and increase the state pension in 2021-22 despite speculation that it might be scrapped due to COVID-19. Legislation was tabled yesterday to avoid the state pension being frozen in April because of the fall in average earnings. Rishi Sunak has been pushing for the triple lock to be suspended for fear of soaring costs because of the recession and a fall in wages caused by the furlough scheme, which covers 80% of earnings. Ian Browne, a pensions expert at Quilter, said that the triple lock could lead to “intergenerational unfairness” as wages fall and pension incomes rise.

US PMIs

Growth in the US Private Sector was “solid” but cooled off slightly in September as services firms lost some momentum according to the IHS Markit US composite purchasing managers’ index (PMI) which slipped to 54.4 in September from 54.6 in August. With a score of above 50 indicating growth.

Heathrow

Heathrow bosses said the airport is operating at 15-20% of its normal levels for this time of the year. Speaking at today’s World Aviation festival, John Holland-Kaye reassured listeners that demand would return despite the current downturn in traffic.

5G

Former BT chief executive and trade minister Lord Ian Livingston has been asked to find alternative telecoms providers to replace Huawei equipment in the UK’s 5G networks. Livingston has been named as chair of a new government task force that will seek to diversify the country’s telecoms supply chain and reduce reliance on high-risk vendors.

Brits veer away from asking banks about financial advice

A new survey carried out by SimpleUsability has found that 68% of UK banking customers would seek financial advice from sites like MoneySavingExpert or ask family members, before their own bank or app. The results also revealed changes in spending habits, reduced incomes and new ways of managing money. Judith Doherty, strategy director at SimpleUsability, comments: “Brands should be asking themselves, what can we do to make sure our customers come straight to us instead, and how can we support them across every touch point?”

Tax tech firms thriving on pandemic, say campaigners

Campaigners are focusing on some of the companies that have thrived during the lockdown, particularly Amazon, Apple, Microsoft and videoconferencing company Zoom.

Robert Palmer, director of Tax Justice UK says these companies also pay less tax than businesses with a physical retail presence and calls on the Government to hit the tech firms with a windfall tax to help the country rebuild after the pandemic.

In the longer term, he says the Government should rebalance the tax system by increasing corporation tax above its current level and crack down on corporate tax avoidance. “Polling shows increasing taxes on multinationals would be really popular with voters, including Conservative voters,” says Palmer. “I think there’s a feeling in the business community too that it is important for firms to pay back and contribute.”

Don’t let Covid-19 bust your business!

It will if your cash flow dries up, either sooner or later.

The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.

To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.

  • The annual package costs start at very low rates
  • A minimum performance warranty is provided
  • Several complimentary services included

Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).

Don’t rely on the governments new emergency support!

A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?

Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.

It takes less than 17 minutes to see how you would benefit, do you have the time now?

No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.

When you see your money come in, you will be so glad you used CPA.

Do you sell on credit?

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

Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, 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.

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 on credit, 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 your 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.

Don’t rely on the governments new emergency support!

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections

 

Ready to speak to an advisor?

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

Call us today

0330 053 9263

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 extremely 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.

You put up with the PAIN – now claim the GAIN!

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.

Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?

How many of your invoices are paid late each month – 20, 50, 100 or more?

At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim! 

At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.

For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!  

Yes, CPA can help you boost your business cash-flow.

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

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

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.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

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

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an bit of extra cash in your business, rather than 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 fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

Don’t rely on the governments new emergency support!

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 weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

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 provide the cash boost 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 recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

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.

Don’t rely on the governments new emergency support!

We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

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!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.