Covid-19 restrictions eased –  business news 23 June 2020.

23 June 2020.

James Salmon, Operations Director.

We look at today’s announcement on restrictions, markets, news from the Bank of England, calls from the former chancellor, Amazon, calls for cuts to employment costs and a lot 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.

Covid-19 general news

Social distancing has also been reduced from 2m to “1m plus” provided people take mitigating measures such as wearing face masks to reduce transmission.

Boris Johnson announces that pubs and hotels can open from 4th July. The hospitality sector opens with Cinemas, hairdressers and museums also to benefit and 2 households will be able to meet up, indoors as well as outdoors.

“Our long national hibernation is beginning to come to an end,” Johnson said. “A new but cautious optimism is palpable.”

American health agencies are preparing for the Covid-19 pandemic to stretch into the winter, meaning they expect it to be active at the same time that flu season puts pressure on health services.

President Trumps team were forced to reiterate the claim that he was joking at his event in Tulsa when he said he had ordered testing to be slowed down.

World wide there have now been 9 million confirmed cases and 471,000 deaths confirmed as resulting from the virus.


Yesterday the market responded negatively to the increase in infections in China and the USA with the FTSE 100 ending 48 points down at 6244. The pound recovered slightly as the Chancellor gave an indication that the government was reconsidering the 2m distancing rules. In the US markets moved higher, as tech stocks led the charge as investors still put faith in a V shaped recovery and the President said the US-China deal continues fully intact.
Bank of England to reverse QE before rates are raised – Bailey

The Bank of England must begin reversing quantitative easing before interest rates can be raised from record lows, according to governor Andrew Bailey. He wrote in an article for Bloomberg: “When the time comes to withdraw monetary stimulus, in my opinion it may be better to consider adjusting the level of reserves first without waiting to raise interest rates on a sustained basis.” The policy of predecessor Mark Carney was that the Bank should raise rates before trying to sell bonds back to the market, while Mr Bailey said he does not want high Bank of England purchases of government bonds to become a long-term arrangement. In separate comments to Sky News, Mr Bailey said the Bank’s early intervention in the coronavirus crisis save the government from potential financial collapse.

Creativity and boldness required to lift UK up again – Javid

In a piece for the Telegraph, former Chancellor Sajid Javid outlines some of the measures the government could take to rejuvenate the economy. Mr Javid has written a report with the Centre for Policy Studies called After the Virus which sets out more than 60 recommendations, covering everything from taxation to monetary policy. Jobs, growth and business support should be the top priority, he says, recommending a significant cut to Employer’s National Insurance, and a temporary VAT cut, which would help encourage spending and hiking investment in infrastructure. The report also urges the Chancellor to ensure the deficit falls year on year, and aims to balance the current budget within three years of GDP returning to pre-crisis levels.

Amazon has today launched an accelerator programme for the UK’s small businesses and startups, aimed at providing them with digital tools to recover lost income during the coronavirus crisis. Launched in partnership with small business support network Enterprise Nation, the Amazon Small Business Accelerator will operate a free online training programme for 200,000 businesses.

Business leaders call for cut to cost of employing workers

The Institute of Directors (IoD) and the Federation of Small Businesses (FSB) have both called on the Chancellor to use next month’s economic statement to prime the economy for recovery. The IoD called for measures including an increase in the employment allowance and in the threshold for employers’ national insurance contributions. The FSB also urges Rishi Sunak to cut employers’ national insurance contributions, and also to provide help with apprenticeship costs and offer a full rebate for sick pay costs faced by companies that lose staff hours as a result of track-and-trace. The Guardian’s Richard Partington notes suggestions from George Osborne and the FSB on forgiving bounce back loans given to small businesses, or allowing them to pay them back only when they return to profit.

BDB calls for post-Brexit equivalence priority as banks told to prepare for worst

The Association of German Banks (BDB) has urged the EU to prioritise equivalence rules in post-Brexit negotiations with the UK, arguing that these rules are essential for achieving market and financial stability on both sides. In a position paper, the BDB said: “Clarity regarding future market access arrangements should be provided at the earliest possible date,” adding that a comprehensive free trade agreement should be established, alongside strengthening “the EU internal market and market infrastructure”. A spokesperson for British trade body UK Finance said: “The Association of German Banks is right to call for full and reciprocal financial services access to be established as early as possible in the EU-UK trade deal… These arrangements do not need to be contained solely within a free trade agreement and can build on the longstanding regulatory relationships and supervisory cooperation that already exist.”


New FCA chief appointed

Nikhil Rathi, chief executive of the London Stock Exchange, has been appointed head of the Financial Conduct Authority by Chancellor Rishi Sunak. Mr Rathi will replace Chris Woolard, who has run the regulator on a temporary basis since Andrew Bailey left to become Bank of England governor in March. FCA chair Charles Randell commented: “Nikhil has been closely involved in guiding the FCA’s development… and brings both private sector management skills and experience of domestic and international regulatory policymaking.” Mr Sunak added: “Nikhil is the outstanding candidate for the position of chief executive of the Financial Conduct Authority, and I am delighted that he has agreed to take up the role.”

Foreign takeovers to be scrutinised in light of public health emergencies

The Department of Business, Energy and Industrial Strategy has revealed that ministers are to be handed powers to scrutinise foreign takeovers of UK firms to ensure that the UK’s ability to deal with future public health emergencies is not compromised. Business Secretary Alok Sharma commented: “These powers will send an important signal to those seeking to take advantage of those struggling as a result of the pandemic that the UK government is prepared to act where necessary to protect our national security.”


HSBC faces £1.3bn lawsuit over film scheme

Investors have filed a £1.3bn lawsuit against HSBC relating to a Disney film financing scheme that HMRC deemed to be a tax avoidance vehicle. The Mail reports that former football managers Sir Alex Ferguson and Sven-Goran Eriksson are among the hundreds of investors bringing the case.

Missing Wirecard money ‘does not exist’

German payments firm Wirecard has said that €1.9bn (£1.7bn) believed to be missing from its accounts may not exist, after auditor EY refused to sign off the firm’s accounts until the money was located. Felix Hufeld, head of Germany’s top financial regulator Bafin, commented: “It’s a complete disaster we’re looking at… It starts with looking at complete failure of a senior management, despite many, many hints to discover the facts. It goes on to the scores of auditors who couldn’t dig up the truth and it goes on with a whole range of private and public entities including my own who have not been effective enough to prevent something like that happening.” Munich police have now said they were launching a criminal investigation into the group.


TPR urged to nudge savers back into pensions

The Work and Pensions committee has urged the Pensions Regulator (TPR) to consider helping workers who have opted out of their workplace pension during the coronavirus crisis to re-enrol sooner than the current three-year timeframe under auto-enrolment rules.

Scots economy warning from CBI

The CBI in Scotland has set out measures including tax breaks, investment in “shovel-ready” projects and scrappage schemes to stimulate activity, as it warned that urgent action was needed to address soaring levels of unemployment. CBI Scotland director Tracy Black remarked: “This unprecedented crisis demands an unprecedented response to get the economy back on track. The Scottish economy was already struggling before COVID-19 hit, and now every single bit of growth matters for people’s jobs and livelihoods.” It is also suggested that business rates relief be extended to mid-sized businesses to help them proceed with innovation projects.

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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Read our blog here on how to crack down on the late payment culture.

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