UK Crash to be worst in G20 – business news 13 July 2020.
13 July 2020.
James Salmon, Operations Director.
The UK crash is expected to be worst in G20, Output at 10 year low, Britain attracts inward investment, high street job losses, SME lending hampered, furlough hits wages, Rich say tax us, city will never be the same, unemployment, Covid-19 in company reporting and a lot more.
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.
UK expected to suffer worst crash of any big economy
Credit ratings agency Moody’s expects the UK to suffer the worst economic crash of any major economy in 2020, with Brexit acting as a drag after the coronavirus crisis. Analysts said they thought the UK will suffer the biggest drop in GDP in the G20 this year, with the economy shrinking by 10.1%. Moody’s also predicted that government debt as a share of national income will increase by 24 percentage points compared to its 2019 level.
Output remains at 10-year low despite rise
Business output rebounded last month as service companies and factories reopened, according to the business trends report by BDO. However, activity remained drastically below normal levels. Overall, the output index rose by 11.16 points to 66.50 last month, still well short of the 95 level that represents positive growth, and significantly below the lowest point of the last recession, which hit a low of 79.28 in April 2009. Kaley Crossthwaite, a partner at BDO, said: “Although economic activity remains considerably suppressed, the recovery in output is an encouraging signal that the easing of restrictions has breathed life into certain sectors.”
UK FDI up 4% in the latest financial year
Britain attracted 1,852 new inward investment projects in the latest financial year, up 4% on the year before, according to official figures. Data from the Department for International Trade shows that the US continues to be the No 1 source of foreign direct investment in the UK, delivering 462 projects and 20,131 jobs. Liz Truss, international trade secretary, said: “These figures demonstrate the resilience of the UK economy and the work of the government to continue to build and attract inward investment into the UK.”
Just one in five people feel safe dining out
A new survey by the Office for National Statistics indicates just one in five people are ready to return to restaurants as they reopen following lockdown. The ONS survey of 2,500 people – which was conducted before the Chancellor’s ‘eat out to help out’ meal voucher scheme was announced – found just 20% of adults were comfortable with eating at restaurants either indoors or outdoors, compared with 60% of respondents put off by the idea. Among the over-70s, two-thirds of all respondents rated themselves either “uncomfortable” or “very uncomfortable” with eating out. “The reluctance of consumers to go to restaurants and cinemas fuels concern that the UK’s recovery will be held back by persistent cautious behaviour even after restrictions are eased,” said Howard Archer, chief economic adviser at the EY Item Club.
High street could see 250,000 job losses
Retail experts say as many as 250,000 jobs could be lost in the sector as the public shifts to online shopping and the Government’s support schemes start to come to an end. The prediction comes after John Lewis and Boots announced a raft of store closures and thousands of redundancies. Prof Joshua Bamfield, of the Centre for Retail Research, told the Sun that closures announced to date are the tip of the iceberg. He added: “All big retailers will be having talks as to how many stores they really need open in 2021.”
High street banks hampered SME crisis lending
Peter Evans reported in the Sunday Times that high street banks, including RBS, Lloyds, HSBC and Barclays objected to plans to allow fintech lenders indirect access to funding from the Bank of England so they could sell loans to small businesses through the Government’s emergency bounce back loan scheme (BBLS). Without access to the same cheap funding, fintech must rely on private backers, meaning the soon run out of cash leaving them unable to lend to thousands of small firms applying for emergency loans. The scheme would have required the big banks to funnel cash from the Bank’s term funding scheme to alternative lenders. But sources say commercial banks did not want to help their competitors.
Work begins on tackling corporate debt pile
The Treasury is looking at possible solutions to the expected growth in corporate debt, with £45bn lent to SMEs which MPs would prefer were contributing to the recovery rather than struggling under their debt.
Furlough brings fall in wages while jobless rate jumps
Official figures will this week reveal that average wages have fallen for the first time in six years, driven down by the Coronavirus Job Retention Scheme which has resulted in a pay cut for many. Furloughed workers only receive 80% of their pay to a maximum of £2,500 and many employers have not taken up the option of topping up this up. The overall jobless rate is expected to rise to 4.5% over the quarter, but this excludes furloughed workers and economists fear as many as 20% could be laid off as the scheme is wound up. Kallum Pickering, Berenberg’s senior UK economist, said: “We estimate the actual underlying rate of unemployment is somewhere between 8% and 9%.” Some good news is that May growth figures are likely to reveal a record 5.3% surge in output. But this revival is set to “struggle for traction beyond August”, says Samuel Tombs, chief UK economist at Pantheon Macroeconomics, as social distancing and an increase in redundancies hampers the recovery.
Labour calls for a back-to-work budget
The Labour leader is calling for a back-to-work budget with jobs at its heart. Sir Kier Starmer told a virtual Durham Miners’ Gala that working people should not have to pay for the costs of the crisis. “It is not of your making and many of you, and your families, have been on the front line, in our hospitals, our shops, our care homes, keeping schools open for the children of key workers and in so many other jobs that have been undervalued and underpaid for too long,” he said.
Will the City ever be the same?
The Guardian’s Joanna Partridge considers how the largest banks, accountancy and law firms are in no rush to bring staff back to the office following a successful transition to home working during the coronavirus lockdown. She notes that PwC, which is aiming to have more than half of its employees back by the end of September, reopened all its UK offices last week, while Deloitte began to allow staff back to some sites in the capital and other regional cities. “Bringing people together safely is important for teams, good for communities and good for the economy. There is also a mental health benefit for many,” said PwC chairman, Kevin Ellis. “I see value in people being back in the office.” But according to the City of London police commissioner, Ian Dyson, the 30 biggest employers in the City only intend to bring between 20% and 40% of workers back to their offices in the coming months, leaving small service businesses such as sandwich shops struggling.
(The Guardian, Page: 28 )
Businesses urge Sunak to extend VAT holiday
A poll conducted for the Telegraph by the Chartered Management Institute found 57% senior managers across private and public sectors think ministers should extend the VAT deferral scheme which helps businesses stay afloat during the coronavirus crisis. Between April and June, companies deferred a total of £27.5bn in VAT payments. Chancellor Rishi Sunak declined to renew it after it expired at the end of June. The survey also revealed that 35% of managers expect their organisation to shed jobs by the end of the year, although 53% agreed with the decision to end the furlough scheme.
Tax us to pay for Covid recovery, world’s rich say
An open letter signed by 84 of the world’s richest people calls on governments around the world to hike taxes on the wealthy permanently to help pay for the economic recovery from the COVID-19 crisis. They are calling on politicians to “address global inequality and acknowledge that tax increases on the wealthy, and greater international tax transparency, are essential for a viable long-term solution”.
New P2P COVID-19 loans for the self-employed
A new emergency COVID-19 loans scheme has been launched to help some of the freelancers and self-employed workers who have missed out on Government support. The Small Business Interruption Loan Service has been unveiled by a fintech-led group in association with EXCLUDEDUK – which has been joined by tens of thousands of self-employed and small business owners not eligible for Covid financial help. It works as a peer-to-peer lending platform, which has been provided by P2P lender JustUs.
Graduates left out of kickstart programme
Rishi Sunak’s “kick-start” scheme to get young people into work is focussed on low-paid jobs in industries such as hospitality, construction and care, experts argue. The Government’s scheme will do nothing for aspiring lawyers, accountants and other ambitious graduates, the Telegraph reports. The £2bn package will l see the state pay the wages of young people on Universal Credit for six months, but most university leavers will be excluded and those who can take part can only work for 25 hours a week, paid at the national minimum wage.
Jobless total rose by 250,000 last month
Official figures next week are forecast to show that roughly 250,000 people lost their jobs in June, with Capital Economics predicting that the quarter-on-quarter employment figure will fall by 290,000.
Separating COVID-19 impact in results “inappropriate”
Some companies are deciding to simply exclude the impact of the coronavirus pandemic from their earnings leading investors and market watchdogs to speak out against the practice. They say that turning the commonly used Ebidta (earnings before interest, depreciation, taxes and amortization) into Ebidtac (c for coronavirus) can give a misleading impression. Ebidtac is a measure that’s emerged in recent months as a way for borrowers to show what their performance might have been had it not been for the impact of the pandemic. Proponents of Ebidtac say it provides continuity with past results and some banks have been sympathetic, but regulators are cautious. The European Securities and Markets Authority has said businesses should be wary of separating the impact of the virus in profit and loss statements while the Financial Reporting Council has warned that measures which attempt to show “normalized” results are likely to be “highly subjective” and “potentially unreliable”. Ratings agencies and investors echo these views.
Chancellor must set out long-term recovery plan
Andrew Harding at the CIMA says the Chancellor needs to provide certainty on future tax and regulatory frameworks as part of efforts to “lay the groundwork to drive the long-term economic recovery”.
Decision due on Apple tax row
A ruling from the European General Court on Apple’s appeal against a €13bn bill for back taxes the European Commission says is owed to the Irish government is scheduled for Wednesday.
Triple-lock unlikely to survive the year
Experts have said that pensioners should brace themselves for the end of the state pension triple lock guarantee in the autumn. The Chancellor is reportedly planning to scrap the policy amid concerns that it has become unaffordable. It guarantees that the state pension rises every year by the highest of wage growth, inflation or 2.5%. But a sharp rebound in wages predicted next year could add £10bn to the benefits bill. Steven Cameron of Aegon said a double-digit increase in the state pension would be a hard sell and could spark intergenerational tensions. Retirees would have to foot their share of the pandemic bill, including a sacrifice of the annual boost in state pension.
Italian consultancy firm snaps up Britain’s Chaucer
An Italian management consultancy spun out of Deloitte in 2003 has snapped up the London-based consultancy Chaucer for £60m. BIP was founded in the wake of the Parmalat and Enron accounting scandals as regulators attempted to untangle consultancy services from audit work. The acquisition of Chaucer will take total group revenue to €350m.
Itsu puts CVA on the table
The Asian food chain Itsu has appointed Alix Partners to look at options for the company including a company voluntary arrangement (CVA). Itsu has been hit by the lack of commuting office workers, particularly in London, during the pandemic. Alix Partners is also handling the administration of Casual Dining Group, which has entered exclusive talks over a sale to Epiris, a private equity firm.
Merkel’s government pressed to release conversations with former Wirecard chief
Conversations between Germany’s deputy finance minister Jörg Kukies and former Wirecard chief executive Markus Braun have been classified by the government in a move the left-wing Die Linke party described as “utterly unacceptable”.
HMRC investigator lost job after claiming Satan was on his PC
A fraud investigator lost his job in Risk and Intelligence Services at HMRC after telling managers he had begun to see demons. Paul O’Connor, a devout Christian, claimed his computer needed to be doused with holy water after Satan had appeared on his system, an employment tribunal has been told. Mr O’Connor was ultimately paid 12 weeks’ notice and compensation of more than £25,000 after being signed off work and subsequently deemed unfit to return. Mr O’Connor maintained that they had discriminated against him due to his religious beliefs – a claim dismissed by a judge
Planning overhaul and tax cuts planned for ‘freeports’
Under Government plans for a post-Brexit economic revolution, Chancellor Rishi Sunak is preparing to introduce tax cuts and an overhaul of planning laws in up to 10 new “freeports” within a year of the UK becoming fully independent from the EU in December. Mr Sunak will use his autumn budget to invite bids from towns and cities to become freeports, where tax and regulatory changes will be introduced, including research and development tax credits, generous capital allowances, cuts to stamp duty and business rates, and local relaxations of planning laws. The Government believes the policy can transform ports into “international hubs” for manufacturing and innovation. Meanwhile, Michael Gove has announced that the Government is spending £705m to ensure that Britain’s “new borders will be ready when the UK takes back control on January 1 2021”, with or without a post-Brexit trade agreement. The work will lay the foundations for “the world’ s most effective border by 2025”.
Tories will struggle with inevitable need for tax rises, says Gauke
Former Tory Treasury minister David Gauke says in a piece for the Observer that tax rises will have to do “most of the heavy lifting” when it comes to paying for the state intervention needed to rescue the economy from the shock of the coronavirus pandemic. Mr Gauke says the country is heading towards an annual deficit of £350bn and that for the first time since the early 1960s the size of government debt will exceed the size of the UK economy. “The political challenge in raising tax by the necessary amount will be immense. Any plan will need to be seen as being fair – those with the broadest shoulders will have to bear the greatest burden – but must not undermine our attractiveness as a location for investment and wealth-creating individuals.” He goes on to add, however, that it is “not yet clear that the Conservative Party as a whole is reconciled to the reality that sound public finances wil l require higher taxes.” A range of other voices echo these sentiments and consider how various tax rises could make a dent in the country’s debt.
Labour’s wealth tax plans would cost £2,500 each
A tax on wealth by the Labour party could land six million people with an annual bill of £2,500, according to an estimate from the Conservative Research Department. The Tories claim that Labour is eyeing a system in operation in Norway – where everyone with savings and property worth more than £126,000 is hit with an annual charge of 0.85% above that amount. Labour appears split over the wealth tax policy with several members of the front bench taking different positions. The Express cites Paul Falvey, a tax partner at BDO, who believes “a UK wealth tax would probably take account of homes”.
Police let illegal sweatshops go unchecked due to racism fears, says Patel
Priti Patel has reportedly raised concerns that police have declined to investigate exploitation in the garment industry due to fears they would be viewed as racist. A source close to the Home Secretary said: “This scandal has been hiding in plain sight and there are concerns cultural sensibilities could be in part to blame for why these appalling working practices haven’t been properly investigated.” Shares in Boohoo slumped last week following news workers were being paid as little as £3.50 an hour to pack clothes destined for the fast-fashion retailer. Sara Thornton, the independent anti-slavery commissioner, says the Modern Slavery Act needs to be tightened up while Robert Jenrick, the communities secretary, has ordered an investigation. The Sunday Times suggests this could lead to the Government seizing control of Leicester city council, which has been accused of repeatedly failing to address the issue. HMRC, which is responsible for enforcing the minimum wage, has also come under fire, with a senior Home Office source saying they have “been asleep on this issue for ages.”
New State regulator for tax advisers
The Treasury is launching a consultation on whether to create a new regulator to oversee tax advisers, the Mail on Sunday reports. “Many tax advisers are competent and adhere to high professional standards,” said the Treasury. “But some are incompetent, some unprofessional, a few actively corrupt.” Glyn Fullelove, head of the Chartered Institute of Taxation, said: “We are greatly in favour of raising standards, but believe this ought initially to be based on the professional bodies. It would raise tricky conflict-of-interest questions were the State to be the regulator.”
M&C Saatchi’s profits set to crash
There is speculation that the 2018 profits at M&C Saatchi could be marked down to zero by the advertising agency’s auditor PwC in another blow to investors. The company was hit by an accounting scandal last year that prompted four directors to leave. PwC has been carrying out an independent review of the agency’s accounts after KPMG, the firm’s auditor since 2012, resigned last September after clashing with the agency over fees.
Byron Burger staff braced for job cuts
Burger chain Byron filed notice of its intention to appoint administrators for a second time on Friday as KPMG continues its attempts to sell the chain. Byron, which has 1,200 staff across 52 outlets, is said to have received interest from three suitors. The Sunday Times says a pre-pack administration is the most likely outcome.
The Sunday Times, Business, Page: 1
Private hospital company NMC Health set to be sold
Alvarez & Marsal , the administrators to NMC Health, have appointed advisers from US firm Perella Weinberg to find a buyer for Aspen Healthcare as part of a break-up of the company. NMC Health collapsed into administration in April after a £5.2bn debt pile was unearthed.
Pensions savers forced to wait for cash
Pension Bee has found that one in seven savers who requested access to their pension pots have had to wait more than five months. The research also found that a fifth of savers abandoned their plans to withdraw their cash to reinvest or spend it because they found their pension company’s process too complicated. Romi Savova, the chief executive of Pension Bee, said the delays were concerning. “Companies should develop straightforward and flexible products to help consumers draw down their pension funds simply and efficiently,” she said. Ros Altmann, a former pensions minister, defended the delays, saying, “if accessing your pension is as simple as a click of a button, people may think it is just like their bank account, which it’s not supposed to be at all.”
Families of women who died with underpaid state pensions will get paid
The Government has confirmed that the heirs of elderly women who die without realising they were underpaid massive sums in their state pension will receive the money. According to research by the Mail on Sunday, tens of thousands of women are owed a fortune in lost state pension due to the blunder. In another breakthrough, women will be shielded from unfair income tax bills on their back payments, the Labour Party has established after pressing the Government on the scandal.
BlueBay bets on sterling drop from hard Brexit
BlueBay Asset Management is predicting a 10% slide in sterling against the euro as the chances of a comprehensive trade deal between the UK and the EU grow increasingly unlikely
Recession will put HMRC under pressure to raise revenue
After HMRC revealed that the tax gap had been reduced to a record low of 4.7%, or £31bn, experts point out that large slices of this is put down to “taxpayer error”, “failure to take reasonable care” or “legal interpretation” – where tax is not legally due, but HMRC was expecting it because it misunderstood the law. John Barnett at the Chartered Institute of Taxation, commented: “If even HMRC does not understand the law to the tune of £4.9bn, what hope is there for ordinary taxpayers faced with the same complexity in the system?” With the tax gap predicted to increase and tax revenue to shrink as the economy contracts, there is likely to be more pressure on HMRC to raise revenue. Tom Selby, a senior analyst at the wealth manager AJ Bell, said: “These efforts are likely to focus on people breaking or bending the rules to artificially reduce the amount of tax they pay. However, simplification of the rules that people are required to navigate and efforts to further modernise the system of reporting could also go a long way to reducing tax errors.” HMRC said: “We provide a wide range of support and guidance so all our customers can access all the information that they need to get their tax right.”
A data foundation for tax automation
As tax authorities have become more sophisticated about their own data management, they’re requiring more data, more frequently, from tax departments. At the same time, new regulations require finer levels of transaction detail, and U.S. tax reform has created ever more complexity. “Data management is a constant challenge for tax,” says Deloitte Tax partner Emily VanVleet. “Despite a host of new automation technologies that can be deployed for greater efficiency—including workflow tools, robotics, and AI – much of the actual data retrieval and processing is still done manually with spreadsheets.” Data wrangling is a fundamental process that can support and complement many of the latest technologies because of its ability to retrieve and aggregate raw data from multiple sources and in different formats, making it readily available for analysis and reporting. “Data wrangling can be deployed relatively easily, which makes it very inviting to tax functions because users can see real benefits soon after implementation,” says Joel Hermes, a partner at Deloitte Tax LLP. “It can offer quick wins while establishing a platform for more widespread tax automation. We like to think of this in terms of think big, start small, and act fast.”
Labour conflicted over wealth taxes
Labour is fighting with itself over whether the party supports a wealth tax or not. Following reports that the shadow chancellor was no longer calling for tax rises, Dan Carden, the shadow financial secretary, broke ranks to dismiss as “false” reports that leader Sir Keir Starmer had abandoned plans for a new tax on wealth. Mr Carden said: “Labour is clear that the cost of the crisis should be borne by those with the broadest shoulders. We are following very closely the academic research under way by LSE Inequalities, CAGE Warwick and others on how a UK wealth tax would work.”
Standard Life Aberdeen dumps Boohoo stock amid ethical concerns
One of Boohoo’s biggest investors has sold down its stake and labelled the retailer’s response to illegal pay allegations “inadequate”. Standard Life Aberdeen has now sold most of its 3% holding in the company which is embroiled in a scandal over claims its suppliers are paying staff less than the minimum wage and that Leicester factories where its clothes are made failed to protect staff from coronavirus. Multiple sources report of instances where staff are paid as little as £3 per hour with a dossier on another retailer, Quiz, put together by the Times now in the hands of the National Crime Agency and the Gangmasters and Labour Abuse Authority. Questions are being asked about the lack of enforcement, undocumented workers, collusion between bosses and workers who want to continue to receive benefits, and VAT fraud. One source told the Times: “It’s an open secret there are an army of accountants and lawyers who help these factories in Leicester shut and reopen by phoenixing companies.” The FT in Saturday cites David Metcalf, the former director of labour market enforcement at HMRC, who said recently: “Often, HMRC doesn’t go after the people who don’t have records.” The Mail on Saturday talked to one factory operator who freely admits to paying staff £4 per hour and a machinist who says she’s paid £5 per hour but her payslip reads £8.72.
Tax cut announced for Scottish home buyers
Kate Forbes, the Scottish finance secretary, has announced a temporary cut to the transaction tax on house sales and extra support for first-time buyers. The starting point for land and buildings transaction tax (LBTT) is to rise from £145,000 to £250,000 from Wednesday.
Brexit
The UK Government will spend £700 million preparing the UK’s borders for Brexit as it begins a widespread information campaign to prepare businesses for next year. The funding is being spent on 500 new border guards, IT systems and essential infrastructure at Dover and other ports of entry as the UK prepares for the end of the transition period.
Covid-19 general news
The World Health Organisation reported a record 230,370 new covid-19 cases globally on Sunday. The biggest increases were in America, Brazil, India and South Africa . Almost 13 million people have now caught the disease and more than 566,000 have died. Florida reported a record for an American state, with over 15,000 new infections. Cases across the country have exceeded 60,000 for three consecutive days. There are signs it is running out of testing capacity.
After the WHO’s reversal on Covid-19’s airborne nature, governments are stepping up measures to encourage the wearing of masks. Prime Minister Boris Johnson is reportedly set to make them compulsory in shops soon, though Cabinet Office Minister Michael Gove on Sunday said the government shouldn’t make face masks mandatory. Berlin’s transport authorities fine mask-less passengers 50 euros, less than the 135 euro penalty in the Paris metro system or £100 fine on the London Underground. While primarily intended to protect others from the wearer in case of infection, recent research suggests masks also drastically reduce the wearer’s risk. Meanwhile, stylish but ineffective masks popping up on handicraft marketplace Etsy are popular with people opposing mask requirements.
Gilead Sciences reported positive in house data on its redesvir drug reducing Covid mortality by 62% and patients recovering by Day 14.
Italy, one of the countries worst-hit by the covid-19 pandemic, reported surprisingly strong industrial output in May. In the previous two months, during a strict lockdown, record falls had been recorded, but in May output was 42% higher than in April
Markets.
Development of coronavirus pandemic was the main driver in rather dull markets last week. Just when it looked like risk-off was back on second wave of infections, markets were saved by news from Gilead Sciences regarding the test results on redmesivir. NASDAQ has extended its record run, helping other stock indexes rebounded on Friday.
The pound has strengthened to 1.26 US dollars.
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).
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.
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
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For help or advice on credit management, entirely without obligation.
Call us today
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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.
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 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.
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.
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.
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