Sunak to extend covid loan relief – business news 8 February 2021.
James Salmon, Operations Director.
Sunak to extend covid loan relief, economy faces long recovery, analysts predict recession avoided , covid-19, market and awful lot more business news.
Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.
Sunak to extend covid loan relief
Rishi Sunak has announced that small firms will be granted more time to repay state-backed loans taken out to help survive the coronavirus lock down, with the Chancellor saying the move gives companies “breathing space to get back on their feet”.
The new arrangements will allow those who have utilised the Bounce Back Loan scheme to extend the length of the loan from six years to ten; make interest-only payments for six months; and pause repayments entirely for up to six months.
Chancellor Rishi Sunak will give small businesses longer to pay back their covid loans to prevent an anticipated wave of insolvencies once the reliefs are removed.
Treasury officials have said the Chancellor will announce that 1.4m small businesses that have borrowed money through the Bounce Back Loan Scheme (BBLS) will be given far longer to repay those debts.
About £45bn was paid out to small businesses as BBLs and repayments were due to start in May.
Under a new “pay as you grow” plan, those firms will be able to extend their repayment plan from six to 10 years and reduce their monthly installments.
Businesses in difficulty will also be able to choose interest-only repayments or ask for payment holidays for up to six months.
This follows warnings from the Bank of England that much of the debt would not be collectable.
Bank of England deputy governor, Sam Woods, warned on Friday that £22billion as much of half of the £45 billion paid out could be lost.
He said taxpayers faced a “significant” loss from the bounce back loan scheme and warned the toughest period was yet to come, warning of a wave of insolvencies.
Sunak will reportedly say today: “Businesses are continuing to feel the impact of extended disruption from Covid-19, and we’re determined to give them the backing and confidence they need to get through the pandemic. That’s why we’re giving Bounce Back Loan borrowers breathing space to get back on their feet, through greater flexibility and time to repay their loans on their terms.”
Other Government relief schemes such as furlough payments and loan guarantees have supported businesses through the pandemic, but the pain has only been deferred, not deterred!
BBLS was announced on 17 April 2020 and launched very speedily, for good reason, just a few weeks later on 4 May 2020.
In the same month, May 2020, the Office for Budget Responsibility (OBR) forecast a likely 10% default rate on these loans.
However, by the end of May 2020, British banks (who are responsible for all BBLS debt collection) were widely reported as predicting a 40%-50% default.
By July 2020, the OBR had updated its prediction to assume 40 per cent of BBLS borrowers will ultimately default.
In September, the BEIS annual report for 2019-20, went further still, revealing there will likely be, “losses estimated as at September 2020 to be in a range of 35-60%.”
On 1 December 2020, Meg Hillier MP, Chair of the Public Accounts Committee suggested the default rate could be as high as 80%.
Late last year, the Chancellor announced a lengthening of the maximum repayment term from 6 years to 10 years, but far from solving the problem, this simply defers it.
If official figures from BEIS show 60% won’t be able to pay back this money and small businesses account for 66% of all bounce back loans, then we are only talking about writing off an additional 6% of loans which ain’t much of the £400bn COVID debt.
Write off bounce back loans to small business!
Britain’s economy faces lengthy recovery as business debt soars
Figures from EY show British businesses took on debt at more than twice the normal average growth rate since the coronavirus crisis began and are on course to have borrowed £61bn by the end of 2021.
EY forecasts a £26bn rise in borrowing from banks this year – as much as £17bn more than in 2019 – with the scale of debt raising fears of weaker investment and a hamstrung economic recovery.
Separately, business surveys from NatWest and BDO show that tougher lock-down measures at the start of the year triggered a broad-based contraction in business activity.
UK skirts double dip recession despite £250bn hit to economy
Analysts expect the loosening of Covid restrictions in the run-up to Christmas to have helped the UK avert a double-dip recession.
Stockpiling ahead of Brexit in December also boosted the economy, according to Paul Dales, chief UK economist at Capital Economics, which predicts a 10% slide over 2020 overall, marking the worst economic hit for more than 300 years.
The Bank of England is braced for a 4% slide in the current quarter. The blow to growth leaves the UK economy nursing almost £250bn in lost output, according to Nomura economist George Buckley.
High street chiefs for level playing field
The bosses of supermarkets and high street chains have asked the Chancellor to overhaul the current tax system to put them on a “level playing field” with digital rivals. A letter signed by Asda chief Roger Burnley and Morrisons CEO David Potts, along with 18 other prominent retail figures and high street landlords, warns the sector has already lost nearly 15,000 jobs with “many more to come”. They continue: “Reducing business rates for retailers and re-balancing the tax system to ensure online retailers pay a fair share of tax would be revenue-neutral, provide a vital boost to bricks-and-mortar retailers and support communities in need of leveling up.” The letter follows news first published in the Sunday Times that the Chancellor is considering new taxes for businesses which profited from Covid lock-downs. An “excessive profits tax” could be used to keep bricks-and-mortar retailers afloat, reports have suggested, but a Government spokesman said this was “not something the Treasury is looking into”.
Cost of liability insurance for company directors soars
The cost of insuring British directors has doubled in the past year, the FT reports, and could rise further with proposed new regulations making directors personally responsible for the accuracy of financial statements. Meanwhile, the Telegraph details industry fears that making directors personally liable for any errors in their accounts could deter entrepreneurs from starting their businesses in the UK, potentially causing them to incorporate in rival European tech hubs.
Gove accused of ignoring Brexit trade warnings
The Observer reports that exports to the EU through British ports fell by 68% last month compared with January last year, with Brexit deemed the chief reason for the slump. The Road Haulage Association says it reported the figures to Michael Gove, the Cabinet Office minister at the beginning of the month but had been largely ignored. The RHA’s chief executive, Richard Burnett, asserts that ministers have repeatedly ignored warnings from industry while Richard Ballantyne, chief executive of the British Ports Association, warns that worse is to come when the UK introduces full import checks on goods from the EU on 1st July.
Manufacturers call for a new Marshall Plan
Ministers have been urged to devise an industrial strategy akin to the Marshall Plan to help British manufacturers recover from the pandemic. Stephen Phipson, the chief executive of Make UK, said that Britain needed an industrial strategy as ambitious as the American aid programme that helped to rebuild western Europe after the Second World War. He added that as well as the pandemic, manufacturers have been wrestling with complications at Britain’s borders after the end of the Brexit transition period on December 31.
House prices fall as end nears for stamp duty holiday
House prices fell 0.3% between December and January, figures from Halifax show, with this the biggest monthly fall since the housing market shutdown in April. The typical home sold for £251,968 in January, a 5.4% increase on January 2020’s average but a drop of £865 compared to the previous month. The annual price growth rate fell 0.6 percentage points from the rate recorded in December, the second consecutive month of decline for year-on-year growth, which was down 2.2 percentage points from a November peak. The dip in prices comes as demand eases, with buyers seeing their chances of finalising a deal before the stamp duty holiday ends on March 31 decreasing.
Consumers likely to hold off certain spending, says Broadbent
Ben Broadbent, the Bank of England’s deputy governor for monetary policy, says concern over coronavirus variants could hit consumer spending, deterring people from certain financial decisions when restrictions have been relaxed. He warned that sectors where people interact socially could see weaker levels of demand for goods and services, saying: “I can certainly see why people might be fearful to spend on particular things, things that expose them to the risk of infection.” Despite this, Mr Broadbent said he anticipated a strong recovery in consumer spending as coronavirus restrictions are eased, saying: “Overall spending does come back pretty strongly when you remove these caps, at least initially”. He added that while some sectors have been hit hard by lock-downs and fears over infection – such as hospitality and leisure – consumers had reallocated spending to other sectors and online re tail, helping to offset damage to the wider economy.
Bank braced for a post-Covid spending binge
Bank of England governor Andrew Bailey believes that once Covid restrictions are lifted Britons will embark on a spending spree and provided the supply side can cope with demand the public are likely to splash out with the estimated £125bn in extra savings they have accumulated since the start of the pandemic. Mr Bailey’s comments echo those of his deputy Ben Broadbent who also anticipates a strong recovery in consumer spending as coronavirus restrictions are eased, although concern over coronavirus variants could dampen demand.
Lock-down hits retail sales
Ministers have been urged to offer a roadmap out of lock-down so retailers can plan toward their post-pandemic recovery. This came after figures revealed that retail sales fell 10.1% last month – the worst January result since records began in 2017. BDO warned that the future for non-essential retailers, which have been forced to close amid the latest lock-down, is “currently clouded with uncertainty”. The firm’s head of retail, Sophie Michael, said retailers have “the additional problem of predicting how and when consumers will return, and at what level of spending.” She added: “Providing a roadmap out of lock-down is a tall order, but one that retailers desperately need.”
Permanent recruitment falls in January
Research conducted by KPMG and REC shows that hiring of permanent staff fell in January, with the decline driven by the latest coronavirus lock-down. The report also said the increase in infection rates saw growth in short-term vacancies weaken in most sectors. Pay trends also took a hit as recruiters reduced starting salaries and wages for temporary staff. James Stewart, vice chair at KPMG, said: “There is cause for optimism as businesses carefully monitor the vaccine rollout and look forward to the Budget next month.” “It gives the Government the opportunity to further help the recovery in jobs and revive the UK’s productivity growth”, he added.
Online giants face tax raid on booming sales
The Government is drawing up plans for a double tax raid on tech firms and online retailers that have profited from the Covid crisis, according to leaked emails seen by the Sunday Times. Treasury officials will meet with business leaders this month to discuss how an online sales tax would work while the Downing Street policy unit is also working up proposals for an “excessive profits tax” on companies that have seen profits surge as a result of the crisis. Neither tax rise is expected in the March 3 budget, but sources tell the paper the increases could form a centrepiece of efforts to cut Britain’s debts this autumn.
Labour urges Sunak not to increase taxes
The shadow chancellor, Anneliese Dodds, has urged the Chancellor not to increase taxes in his March Budget because the economy is too fragile to withstand such a move. Ms Dodds instead called for tax cuts for businesses hit hardest by the pandemic, such as an extension to the business rates holiday and the reduced VAT rate for hospitality businesses. In an interview with the Sunday Telegraph Ms Dodds did however suggest that Labour might support a one-off tax raid on internet giants that have made billions during the pandemic.
Close EU tax loopholes and earn extra £15bn, UK urged
Tax consultant Bob Lyddon, the founder of Lyddon Consulting Services, is urging Boris Johnson to scrap rules permitting companies to take advantage of low tax jurisdictions such as Ireland or Luxembourg while setting up subsidiaries in the UK where the majority of their business is done. If loopholes in the EU’s Freedom of Incorporation rules were closed the UK could reap £15bn more a year in taxes.
Alcohol-free pubs and restaurants could reopen in April
UK ministers are considering allowing pubs and restaurants to reopen as soon as April if they agree not to sell alcohol. A temporary “booze ban” is being considered as part of the Government’s roadmap for lifting lock-down, which will be unveiled on Feb 22nd. The ban on alcohol would allay concerns that people are less likely to abide by restrictions after drinking. Kate Nicholls, the chief executive of UKHospitality, said: “We welcome the opportunity to have sensible and pragmatic discussions with the Government about the pace and nature of reopening.”
Restaurants were in trouble before pandemic struck
Britain’s leading restaurants had lost over £500m in the 12 months ahead of the first lockdown in March last year, according to a study by UHY Hacker Young. Peter Kubik, a partner at the firm said: “These figures reveal how seriously the restaurant industry was already struggling pre-pandemic. Restaurants will be still having to absorb the impacts of lockdowns for weeks or months to come. The Government has stepped in to help, but it’s likely that even more will need to be done. At the very least, the hospitality VAT cut will almost certainly have to be extended.”
Covid-19 general news
There were 15,845 new cases in the UK yesterday (total 3.95m) with 373 more deaths (total 112k). That marked the lowest daily total of new cases in 2 months. The number of deaths was a 6 week low.
Globally 396,269 new cases brought the total to 106 million with 2,317,944 deaths.
131,649,852 vaccine does have now been given worldwide. 12 million of those were in the UK with 550,000 on Saturday.
The U.K. is on track to vaccinate all over-50s by May, with almost 1,000 people a minute receiving shots during the busiest period, Health Minister Nadhim Zahawi said.
The Government has also predicted that annual vaccination drives may be needed like with the flu jab.
The government is considering proposals to vaccinate front line workers at work in a drive to vaccinate teachers, emergency services workers, delivery drivers, supermarket and food processing factory workers ahead of the queue. Prison staff, police and even jurors may be included.
South Africa plans to fast-track the rollout of Johnson & Johnson’s vaccine after it showed more efficacy against a new variant that’s prevalent in more than 90% of new cases in the country. A trail of the AstraZeneca vaccine showed it only had limited efficacy with the mutation. Sarah Gilbert, leading the Oxford University-AstraZeneca vaccine program, said work was already under way to adapt the vaccine to deal specifically with the South African variant. The new shot is “very likely” to be available by autumn, she said.
Bosses question plans to punish directors for accounting errors
A number of prominent business leaders have commented on Government plans to impose fines and bans on directors for inaccuracies in their companies’ accounts. Sir Martin Sorrell, founder of advertising firm S4 Capital, warned against a move that could “strangle initiative” at companies trying to survive the pandemic, while Pimlico Plumbers chairman Charlie Mullins warned that the policy would be “a huge disincentive to start a business.” Tim Martin, chairman of JD Wetherspoon, said increasing the burden on directors will “put the frighteners on boards” and “discourage risk-taking”. The Institute of Directors stressed that it is important policy does not “place extra and unnecessary burdens on directors”. ICAEW CEO Michael Izza said making directors personally liable “is going to really focus the mind on being a director of a public interest entity, as it should”. Matthew Fell, chief policy director at the CBI, said: “Improving the quality of audit to enhance public trust and investor confidence is paramount.”
Markets.
On Friday the FTSE 100 closed at down 0.22% at 6489.33 and the 250 Closed up 1.24% at 21,066,87. While Euro Stoxx 50 rose 0.37% and the 600 was flat. The S&P 500 rose 0.39% and the NASDAQ rose 0.57%.
UK equities were mixed on Friday with big gains in covid-19 sensitive stocks. Overall the index fell due to declines in telecoms and pharmaceuticals companies. Both AstraZeneca and GSK were down on rising sterling concerns and a rotation out of defensive companies into cyclicals. Oil stocks rose with the oil price and financials were still benefiting from the BOE Thursday announcements. How the midcaps on the 250 saw the most action, as the UK centric stocks benefited from hopes of easing covid restrictions.. And hotels benefited from the announcement on mandatory quarantining.
Risk-on sentiments continue in Asian session today with Nikkei hitting 30-year higher, while oil prices are also back at pre-pandemic level. Brent Crude hit $60 on Friday on hopes of economic recovery and Gold is at $1813. Sterling is at 1.1395 Euros and 1.370 US Dollars.
The US Economy added just 49,000 jobs in January as the coronavirus pandemic continued to hamper recovery. Losses underscored the need for further economic relief. The Labor Department said the unemployment rate fell from 6.7% to 6.3%, down 0.4 percentage points from December. As the drop in employment in December was revised from 140,000 to 227,000. Treasury Secretary Janet Yellen said the U.S. can return to full employment in 2022 if it enacts a robust enough coronavirus stimulus package, but otherwise risks a slower rebound in jobs and the economy.
Both houses of Congress passed a budget resolution including President Joe Biden’s $1.9 trillion stimulus bill, with votes split along party-lines. In the Senate Kamala Harris, the vice-president, had to cast the tie-breaker
UK M&A begins 2021 at pace
The value of deals involving a UK company hit $38.8bn in the first few weeks of 2021 – a high not seen since the 2008 crash, according to Dealogic. “People have fully grasped that deals can be done, and done quickly, under lockdown,” said Nick O’Donnell, who advises on deals for law firm Baker McKenzie. “The strange outcome is that we find ourselves in a very counter-intuitive place where the possibility of a return to more normality later this year is now the largest known unknown.”
No delay for IR35 reforms
Changes designed to stop workers hiding their pay from the taxman will go ahead as planned, despite calls for IR35 reforms designed to tackle disguised employment to be postponed for a second time as they will create extra work and costs. HMRC believes off payroll workers should be treated as full-time employees and as of April 6, medium and large businesses will be responsible for setting the tax status of contractors they hire, mirroring a system that has been in place in the public sector since 2017. The Treasury expects the change to raise £3bn by 2024.
Extra percentage point can wipe years of pension income
Retirees who use expensive pension providers have been warned they risk losing more than four years’ worth of retirement income unless they switch. Figures compiled for the Sunday Telegraph by LCP indicate that paying just one percentage point more in charges can wipe years of income from a pension pot. And pensioners who use “income drawdown” can be more than £70,000 poorer within 25 years on a £500,000 pension pot if they fail to switch from an expensive provider to another with average charges. Dan Mikulskis of LCP said someone who pays 2% on a £250,000 pension could save up to £35,000 by age 85 if they switched to a provider that charged 1%.
Contactless limit to rise to £100
The contactless card payment limit is set to rise to £100 from the current maximum of £45. The change, which will be made in the next Budget, was not possible while Britain was bound by EU rules, which cap payments at €50.
Think tank calls for end to stamp duty
Gerard Lyons, a senior fellow at the Policy Exchange think-tank and an adviser to Boris Johnson when he was London mayor, has urged the Chancellor to extend the stamp duty holiday permanently or even scrap the tax altogether. Mr Lyons said: “The current stamp duty holiday should become permanent with stamp duty being abolished on lower valued properties. Temporary freezes in stamp duty are not a solution as they prompt a spurt in demand as people try to buy before the tax is raised again, pushing prices higher, out of the reach of many first time buyers.” The Telegraph notes that Policy Exchange has a strong track record of having its suggestions adopted by the Government.
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
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.
You put up with the PAIN – now claim the GAIN!
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.
Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?
How many of your invoices are paid late each month – 20, 50, 100 or more?
At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim!
At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.
For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an extra bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
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.
Keep up to date with the latest news by following us on social media:-
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.