Online-only retailers crashing too.
13th February 2019.
A total of 246 online-only retail businesses became insolvent in 2018!
That represents a 19% increase on the previous year, 2017 and more than double the 120 that failed in 2010.
The high street is under extreme pressure but it’s online rivals apparently are not invincible either.
Declining consumer demand, coupled with aggressive discounting, are driving a growing number of online fashion retailers to the wall.
The perennial problem is customers returning a high percentage of stock, often 40 to 50%.
With much of returned stock not being able to be re-packaged and re-sold.
How can CPA help?
Do you supply to online retailers?
You might think you have done well to diversify away from high street retailers, but the research above shows that on-line retailers are far from risk free.
And online retailers often lack the physical assets that underpin the credit worthiness of their competitors.
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 predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad 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 online retailers, help us help you identify the risks.
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.
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!
Keep up to date with the latest news by following us on social media:-
How to overcome 25 of the most common excuses for non-payment
Discover how to improve your cashflow in 3 steps.
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes