Brexit’s impact on SMEs – 27th August 2019.
Augusts bank holiday weekend was a scorcher with records broken and temperatures records broken again with temperatures in West London reaching 33.3C. London was fittingly hotter than Rio, for the Notting Hill Carnival.
Meanwhile in Biarritz, France, the temperature was a chilly 27 degrees as Boris Johnson attempted to woo his fellow leaders at the G7 Summit.
The Primeminister was ‘marginally more optimistic’ about the prospect of a new deal, while trying to avoid the issue of potentially suspending parliament to block plans by opposition MPs to block a no deal exit.
According to reports, Johnson made a good first impression at the global summit, with one official saying, ‘He has come across as serious, well briefed and, against our first impressions, he wants a deal. He has personally moved the dial.’
Prime Minister Boris Johnson clearly turned on the charm at the G-7, and broke with his usual brusque style, avoiding his usual clangers. He focused on the common ground he shares with European leaders, from Iran to Russia to trade, and charmed his hosts with typical bonhomie. This followed last week’s well reported one on ones on Brexit with German Chancellor Angela Merkel and French President Emmanuel Macron.
The tone from Europe appears to have shifted slightly. It could just be the realization that time is running out or an actual new openess from officials willingness but optimism appears to be gaining a foothold.
A no deal Brexit still seems to be the base case. But Europe at least seems open to talks and willing to listen to Johnson’s alternatives to the backstop. Even Tusk’s team spoke positively about Johnson’s constructive spirit — on all things non-Brexit.
However sentiment is one thing. We have yet to see actual proposals on which they can reach agreement. And now Johnson returns to a Parliament returning from recess, bringing with it possible no-confidence votes, the task of finding a real, acceptable, alternative to the backstop, and potentially even a general election.
Getting urgent: the race to stop no-deal Brexit
Boris Johnson says breezily that Britain can easily cope with a no-deal Brexit on October 31st. A majority of MPs, including a chunk of the prime minister’s own Tories, disagree and want to stop no-deal. But they do not agree over how.
Labour’s leader, Jeremy Corbyn, has invited other party leaders to a meeting today to discuss the next steps, including the right time to propose a vote of no confidence in Mr Johnson’s government.
But Tories who oppose a no-deal Brexit refuse to attend, saying they cannot support any move that risks putting Mr Corbyn into Downing Street. They prefer to repeat a gambit tried in March, when MPs seized the parliamentary agenda and legislated to require the government to seek an extension of the Brexit deadline.
Yet it is not clear in the time left that this plan will succeed. So although most MPs may oppose no-deal, the chances of its happening are rising.
Lyons outlines three-point plan to get UK on track
Economist Gerard Lyons outlined a three-point plan in the Sunday Times which he claims will get the UK on track following the shock a no-deal Brexit would bring.
Firstly, the Government should take advantage of the low costs of borrowing and use it to invest.
Secondly, the BoE should continue with its focus on low inflation, and monetary and financial stability.
Finally, tax and regulatory incentives should be used to promote infrastructure spending, encourage investment and enhance innovation which will drive the supply side of the economy.
Trump and Johnson hope to remove obstacles to trade
Boris Johnson met with Donald Trump over the weekend for their first face-to-face talks since the PM entered Downing Street.
Mr Trump said Mr Johnson would need no advice, that he would make a great Prime Minister and was the “right man” to deliver Brexit. Both men talked about how they hoped to thrash out a comprehensive trade deal.
Mr Johnson said Mr Trump was hoping to complete a deal within a year.
The US president added that progress on talks over a post-Brexit deal had been “stymied” under Theresa May and the EU membership had been an “anchor” around the ankles of Britain.
A British government official said the President acknowledged in the meeting with Mr Johnson that the NHS would not form part of an agreement.
Lord Wolfson: Nothing to fear from no-deal
Lord Wolfson explained in the Mail on Sunday why he is no longer fearful of a no-deal Brexit. The CEO of Next says the work done by the Boris Johnson government is starting to make up for the complacency of Theresa May and Philip Hammond.
Lord Wolfson points to the “excellent transitional arrangements for imports issued recently by HMRC” which have greatly simplified the process of bringing in goods from around the world. “If there is no congestion there will be no shortages and no need for stockpiles. It really is that simple.”
Lord Wolfson looks forward to being free from the EU’s “shackles” adding that: “If Government prepares effectively for No Deal and if businesses follow suit; if we embrace an optimistic outward looking vision of Britain’s place in the world, at the forefront of free trading and democratic thought, then the worst we have to fear is mild disruption.”
Leadsom: Businesses want to us “crack on” and end the uncertainty
Writing in the Sunday Telegraph, Andrea Leadsom said businesses across the country are overwhelmingly positive about the future but they want the Government to “crack on”, deliver Brexit and end the uncertainty.
The Business Secretary points out that the Government has auto-enrolled nearly 90,000 VAT-registered businesses with an EORI trading number to enable them to trade with their customers in the EU after Brexit day and urges any non-VAT registered businesses that cannot be auto-enrolled to come forward and register.
After citing a raft of opportunities, such as clean tech and life sciences, Ms Leadsom says: “Brexit is a once-in-a-generation chance. I believe that Britain’s best years for business and for all our people lie ahead.”
Hundreds of companies consider move to Netherlands
As many as 325 British-based companies are in talks with the Dutch government over relocating to the country after Brexit, according to the Times.
Growing anxiety over a no-deal Brexit is leading a string of firms to consider moving their European bases to the Netherlands, with Dutch officials suggesting their government offers tax breaks to help sway businesses.
The paper goes on to cite EY, which says 41% of Britain’s financial services companies are considering or finalising plans to move to another EU city.
Firms confused by advice on EU trade
The Government says it has cleared up confusion over no-deal Brexit advice it had given to businesses. Advice from the Government and the European Commission gave the impression that they would need to apply to Brussels for an identification code as well as getting one from HMRC if they were exporting to continental Europe.
The EU Commission’s tax department also deleted a tweet saying both an EU EORI number and a UK EORI umber would be required.
Craig Beaumont, director of external affairs at the Federation of Small Businesses, said: “Small firms are trying to get ready for Brexit in nine weeks’ time. Confused guidance between UK and EU customs authorities is the last thing we need. If they can’t agree how goods will flow, what chance do our small businesses have?”
Brexit sees men more cautious with cash
Research from KPMG shows that men are much more cautious about their money in regard to Brexit than women, with over a third of men changing their money management while only one in four women have done the same.
New CBI head wants migrant salary threshold dropped
The incoming boss of the CBI is calling on Boris Johnson’s government to drop Theresa May’s proposed £30,000 minimum salary threshold for skilled European migrants. Lord Bilimoria, president-designate of the business lobby, said the requirement was “impractical” and would hit the construction and leisure sectors hardest, as well as the NHS. “An open economy like Britain has had access to the best talent from around the world – including the European Union,” Bilimoria said. “The public sector wouldn’t survive without them,” he added.
Eurozone confidence at six-year low
Confidence in the eurozone has dipped to its lowest level in six years, with the purchasing managers’ index (PMI) showing that industrial output fell for a seventh consecutive month.
The PMI inched up from 51.5 to 51.8 in August but businesses reported a “sizeable drop in confidence” and manufacturers cut jobs for a fourth consecutive month.
Andrew Harker at IHS Markit commented: “It appears that companies are braced for a sustained period of weakness, and as a result are showing greater reluctance to take on additional staff.”
Melanie Debono, Europe economist at Capital Economics, said the “trivial increase” in the composite PMI “still leaves it consistent with feeble GDP growth this quarter”.
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 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.
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.
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
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