5 keys to stay afloat – business news 11 November 2020.
James Salmon, Operations Director.
We look at 5 keys for SMEs to stay afloat, bounce back loan bonanza, a closer look at the jobs figures, covid-19, market and other business & finance 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.
Cherry’s lock-down guide to staying afloat
Federation of Small Businesses chairman Mike Cherry gives his advice on how small businesses can adapt to the pandemic in the Mail.
He urges owners to
- network – stay in touch with those facing similar challenges
- plan ahead – consider the scenarios you might face and what you will do. Consider how your cash flow might be affected. consider options for finance. What can you do yo boost cashflow. What option are available to you.
- ensure access to legal support, including HR advice if you are an employer
- and to be adaptable. Be innovative. Adapt your products, services and business systems to the new conditions. Can challenges be turned into opportunities?
- Improve your digital skills. Can you implement social media, online sales platforms or otherwise activate your team who work remotely?
Mr Cherry reminds small business owners to look after themselves too: “Be mindful of your physical and mental health, and that of any employees you may have.” Seek support for you and your business.
CPA has been helping businesses boost their cash flow for over 10 years. Can we help you?
See the section below Stay afloat! Don’t let Covid-19 bust your business! to see how.
Thousands of UK companies apply for ‘top-ups’ to bounce back loans
Lenders in the Bounce Back Loan Scheme (BBLS) reported that thousands of small businesses had applied for loan top-ups after the scheme opened yesterday. Two high street banks said that there had been about 2,000 applications for extra money in the first few hours of the scheme going live.
Surge in redundancies pushes UK unemployment to 4.8%
Redundancies rose to a record high of 314,000 in the three months to September driving up unemployment from 4.5% to 4.8%, according to figures from the Office for National Statistics (ONS). The number of people out of work rose by 243,000 in the three-month period, the largest increase since May 2009. The redundancy figure was higher because it included people who may have lost their jobs and then retired or decided to stop looking for work. Young people and men fared the worst and there was also a dramatic drop in the foreign-born workforce. Tony Wilson, director of the Institute for Employment Studies, said the changes in unemployment and employment were “worrying but not catastrophic”, although the continued lack of hiring was troubling.
Covid-19 general news
The UK reported 20,412 new cases yesterday.
With 538,072 new cases, global cases reach 51.5 million as deaths reach 1,273,055.
The NHS will be ready from December to roll out the new coronavirus vaccine if it gets approved, Health Secretary Matt Hancock has said. Mr Hancock told MPs the news about the vaccine was an important step but “there are no guarantees”.
Rapid Coronavirus Tests are set to be rolled out across the bulk of London boroughs, as part of government plans to step up asymptomatic testing across the country. Lateral flow tests, which have a turnaround time of 15min, will be sent to 21 London boroughs this week.
The U.K. government is set to hand more than 40 billion pounds to companies that can help in its drive to ramp up mass coronavirus testing, a plan dubbed “Operation Moonshot,” with government bodies issuing tenders for test makers and diagnostic equipment that are bigger than the annual budgets of some government departments.
Shares in firms specializing in industrial freezing are soaring, as Pfizer’s vaccine needs to be stored at around -70 degrees celsius.
The developer of Russia’s vaccine said it shows a 92% efficacy rate in preventing infections, as the country pushes for a top slot in the fight against the coronavirus.
France and Italy both recorded the highest daily covid-19 death tolls since April
Markets.
The markets continued their rise in response to vaccine news yesterday with the FTSE 100 rising 1.8% and similar rises in Europe. In the US however the response remains muted perhaps because of the continuing political uncertainty and the tech weighting of US indexes. Oil continued its rise with Brent reaching $44.8 and Gold firmed at $1880. Stirling is at 1.125 Euros and 1.327 USD.
New takeover protections
The UK Government will today unveil legislation, a national security and investment bill , which will enable ministers to intervene and block firms in hostile states from taking over UK companies. Under the National Security and Investment Bill, it will be mandatory for deals involving firms in 17 sectors deemed of strategic importance to be notified to officials. The legislation would also allow ministers to retrospectively halt acquisitions any time in the five years after the deal was sealed. Alok Sharma, the business secretary, said that while ministers were keen to attract inward investment, “hostile actors should be in no doubt – there is no back door to the UK”.
Amazon
The European Commission has charged Amazon with abusing its dominant position in online retail to gain an unfair advantage over competitors. The case revolves around the firm’s dual role as a marketplace for third-party vendors, and also as a competitor which sells its own goods, which has created concerns that it may be abusing its role by using the data it gathers on merchants to compete against them. EU Competition Commissioner Margrethe Vestager said: “The use of these data allows Amazon to focus on the sale of the bestselling products and it marginalises third-party sellers and caps their ability to grow.” Amazon said: “No firm cares more for small businesses or has done more to support them over the past two decades than us.” The company faces a potential fine as high as 10% of its global turnover – about £15bn – if it is found guilty of breaching competition law.
Pubs
JD Wetherspoon suffered a 27.6% drop in sales in the 15 weeks to 8 November following the introduction of a 10pm curfew for pubs and restaurants in England.It forecast a cash burn of £14 million from the new lockdown in England during November.
Luxury brands in tax-free shopping warning
Bosses of nearly a dozen luxury fashion firms including Gucci and Hugo Boss have written to Rishi Sunak warning that plans to abolish the VAT rebate for tourists risks their future investment in Britain. “As global brands operating in the UK, we greatly value Britain’s status as a world-leading shopping and tourism destination, attracting visitors from around the world, and have invested in the UK accordingly,” the letter said. “But the Treasury’s plan would give the UK the least competitive [tax-free shopping] regime in Europe and put this status at risk.”
Gender pension savings gap narrows
Research by Scottish Widows shows the pensions saving gap between men and women is the narrowest on record. A record 59% of women are saving adequately for their retirement, compared with 60% of men. However, the study also found that because of lower wages and past under-saving, women would still need to work beyond the age of 100 to amass a pension pot equal with men, in theory.
Firms ‘unprepared for Brexit’ – MHA MacIntyre Hudson partner
Alison Horner, indirect tax partner at MHA MacIntyre Hudson, is interviewed in City AM on trading with Europe after Brexit and how it will affect firms more than many are expecting. She remarks: “Due to COVID-19 the majority of British companies involved in exporting to Europe have not been able to give Brexit the attention they should and unfortunately some are in denial about the scale of the challenge.” She continued: “It is crucial to realise that although a deal will bring great relief to businesses and their bottom line by removing the cost of duty tariffs, the legal and regulatory as well as administrative costs will remain.”
Stay afloat! 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 and stay afloat. 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).
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 you stay afloat!
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.
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, helping them to stay afloat.
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 to stay afloat.
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.
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 to stay afloat.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an extra 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.
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 to stay afloat.
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.
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 and stay afloat.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help to stay afloat 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.