Bank of England Governor evaluates effectiveness of measures -Covid-19 lock-down business news update 28 May 2020.

28 May 2020.

James Salmon, Operations Director.

The Covid-19 lock-down continues and we are having to make do in a new normal.

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.

Bailey: BoE’s pandemic measures are working

Writing in the Guardian, the governor of the Bank of England, Andrew Bailey, says Britain is entering the second phase of the covid-19 crisis with the lock-down lifting gradually and businesses starting to open up again.

“There are reasons to believe that economic activity will return at a faster pace than in many past recessions, but this depends on how the measures continue to be eased, what degree of natural caution is shown by people, and how much longer term damage is done to the economy. The risks are undoubtedly on the downside for a longer and harder recovery.” The measures taken by the Bank were working, adds Bailey, who continues: “The Bank stands ready to do whatever we can to help UK firms and households in this economic disruption and get through this together. This is our duty.”

Scottish firms concerned about post-coronavirus prospects

Research carried out by think tank Scotianomics has found that 61% of Scottish firms fear they will go bust as a result of the coronavirus pandemic, despite support from the government.

Gordon MacIntyre-Kemp, director of Scotianomics, commented: “After extensive analysis of the results, we have suggested a series of innovative and forward-thinking suggestions on how to rebuild Scottish business confidence.

We are urging the Scottish government to consider these very seriously. If they act on these suggestions, we believe Scottish business and the economy will snap back quicker and more effectively than in many other countries.”

Covid-19 general news

Virus tracing systems have gone live in England and Scotland with thousand of contact tracers tracking down those who have come into contact with people infected.

The European Commission today unveiled a huge €750bn stimulus package to help lift the bloc out of a sharp recession caused by the covid-19 pandemic. The package is set to be divided between €500bn in grants to member states and €250bn in loans, which will be borrowed on financial markets and dispersed to governments.

Following Twitter adding a fact checker link to Trumps tweets, the President is reported to be preparing an executive order targeting social media firms, after accusing them of stifling conservative voices.

The number of coronavirus deaths in America surpassed 100,000, way ahead of all other countries

The World Health Organisation said Latin America is the new centre of the covid-19 pandemic. It is being estimated that deaths in Brazil could hit 125,000 by August, where they already have 410,000 cases and 25,000 deaths.

Travel firms have got together to say the plan to quarantine those arriving in the UK should be scrapped as it will discourage tourists.


The FTSE 100 and 250 both rose yesterday (1.26% & 1.24%) on improving risk sentiment. European stocks were even stronger on the stimulus package.

Oil Prices fell yesterday after U.S. President Donald Trump said he was working on a strong response to China’s new security law in Hong Kong which has now been approved. China blocked a call for a UN security council to discuss the situation. Mike Pompeo, America’s secretary of state, declared that Hong Kong is no longer meaningfully autonomous from China

Gold Prices also fell to their lowest in two weeks yesterday as hopes of quick economic recovery brought investors back towards riskier assets, despite escalating U.S.-China tensions over Hong Kong.

Small firms borrow over £18bn under government scheme

A total of £27.5bn in emergency lending has been provided to more than 650,000 businesses by banks, according to Treasury figures.

Over £18bn was borrowed by SMEs through the government-guaranteed Bounce Back Loan Scheme (BBLS), while the Coronavirus Business Interruption Loan Scheme (CBILS) has lent £8.15bn so far.

Lenders have approved around 50% of loan applications under CBILS so far, while the BBLS scheme has an approval rate of 79%.

The figures were published as research from the Association of Chartered Certified Accountants and the Corporate Finance Network found that one in four companies claim to be unable to access enough cash to survive another two weeks of lock-down.

Service sector suffers steep drop in optimism

The CBI’s quarterly review has found confidence in the services sector is declining at a record pace with companies struggling with declining sales, mounting costs and weak cash-flow.

Optimism about the general business situation slumped to -79% among business and professional services firms, the worst figure since the financial crisis.

The index for consumer services firms fell to a record low of -86%.

SME representatives urge Chancellor not to proceed with furlough ban

The Chancellor has been urged not to ban firms from placing more staff on furlough, with Michael Lassman, London chairman of the Federation of Small Businesses, commenting: “It’s been a lifesaver for many small businesses, there’s no two ways about it, and if they need to they should be able to continue to access it.

If there’s a cut-off that applies too soon that is going to be a concern.” This comes as Rishi Sunak prepares to make announcements on the future of the scheme, including outlining how much firms will have to contribute towards employee wages from August.

Furlough figures reach new high

Government figures reveal that the number of jobs furloughed under the government’s coronavirus scheme has reached a new high of 8.4m, alongside 2.3m self-employed.

The new figure marks an increase of 400,000 people on last week’s update, with over 1m companies using the scheme.

The figures were released as Chancellor Rishi Sunak prepares to bar firms from furloughing more workers, and to outline how much employers will have to pay towards workers’ wages from August.

Tej Parikh, chief economist at the Institute of Directors, remarked: “While the Treasury is keen to reduce its spend on the scheme, for firms that have tried to hold off using it and may now need to, this will be a bitter pill to swallow.”

Craig Beaumont of the Federation of Small Businesses noted: “The vast majority of employers registering for the scheme are SMEs. These struggle with changes, so any ending should be announced in advance so they have time to plan, including those who are entering the scheme now as their business enters difficulty.”

UK hiring sentiment may be turning around

The Recruitment & Employment Confederation’s Business confidence measure rose to -10 from -21 in April with short-term demand for permanent staff improving to -5 from -9.

“Coronavirus has caused a huge slowdown in the labour market, but this data indicates that the worst could be behind us,” REC chief executive Neil Carberry said. Separately, the Institute of Directors has warned that companies using the government’s furlough scheme would struggle to contribute to the salaries of furloughed workers from August, raising fears of job losses.

Construction to drop by 25%

The Construction Projects Association – another CPA , not associated with us – has forecast that construction output will fall 25% in 2020 before having a V Shaped recovery with a 26 % rise in 2021. However this is dependent on there being no second wave. A second wave could mean that by the end of 2021, construction was still 19% lower than 2019

France overtakes UK to take foreign investment crown

The latest attractiveness survey from EY reveals that the UK has lost its crown as Europe’s top destination for foreign investment for the first time in 22 years after being overtaken by France.

Despite this, Britain attracted almost a third of all overseas digital technology investments across Europe last year, more than France and Germany combined.

The survey also found that with Brexit transforming global economic ties, the US superseded the EU last year as the UK’s biggest source of foreign investment.

EY also found that less than a quarter of investors regarded Brexit as a risk factor, down from 38% last year.

Separately, research by Refinitiv shows British companies seeking venture capital enjoyed their best first quarter on record, generating £2.1bn through 137 deals, down slightly on the final quarter of 2019, when 132 deals raised £2.4bn.

Tories to stick to manifesto commitments on tax, says Johnson

While taking questions from MPs yesterday on the government’s response to the coronavirus pandemic, Boris Johnson said the Conservatives would not be “blown off course” when it came to sticking to manifesto commitments on tax.

The Tory party promised not to raise the rates of income tax, National Insurance or VAT, and to maintain the “triple lock” on pensions. Mr Johnson said his instinct is to “keep taxes as low as we conceivably can” but added that he did not want to “anticipate now what we’re going to do on our economic package.”

Homeowners warned against extending payment breaks

UK Finance has written to the Financial Conduct Authority to warn that it would not be in the best interests of homeowners to allow borrowers to extend a three-month holiday on repayments to up to six months.

The trade body said, “around 60% to 70% of customers can demonstrate affordability to resume full payments at the end of their current payment deferral”.

There are concerns borrowers could run into difficulties when faced with the bigger interest bills while banks worry they will be accused of failing to provide enough information when customers sought an extension, leading to a rush of complaints.

Coronavirus accelerates shift away from cash

The FT on page 9 considers the effect of the coronavirus on cash, with more businesses moving to contactless payments and concerns raised over remote locations losing their access to coins and notes.


Halfords said it will reopen 53 stores across the UK after it was forced to close down its physical operations due to coronavirus. The retailer was granted essential retailer status following the lockdown, meaning it was able to keep 335 of its 446 stores open.

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 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


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.

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

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.

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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See all our latest news here!

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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.

25 excuses for late payment and how to get around them.

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog – How to select a debt collection agency

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see our blog – 15 steps to avoid invoice fraud

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