Covid19 lockdown business news update 6 May 2020.

6 May 2020.

James Salmon, Operations Director.

The Covid19 lockdown 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.

Covid-19 general news

The U.K.’s COVID-19 death toll has soared passed that of Italy, making it the worst hit country in Europe, and globally second highest to only America as a top British official expressed regret over the lack of early testing.

Testing of a contact-tracing app among health workers began on the Isle of Wight. The app is intended to notify people who have come in contact with someone infected with Covid-19; the government hopes to roll it out in mid-May.

Goldman Sachs is cautioning against copying Sweden’s light touch approach to lockdown, “The Swedish experience therefore cannot be extrapolated to support a swift reopening elsewhere,” Goldman said. “Its population density is about half that of Italy, and Sweden has a high proportion of single-occupancy households, and a relatively low proportion of multi-generational households.”

In the U.S., President Donald Trump said Americans should begin returning to their everyday lives even if it leads to more virus cases, while the White House is discussing disbanding its virus task force.

A patient treated in a hospital near Paris on 27 December for suspected pneumonia actually had the Coronavirus, his doctor has said. This means the virus may have arrived in Europe almost a month earlier than previously thought. In  the US the S&P 500 closed at 2868 up 0.9% and the NASDAQ closed at 8809 up 1.1%.

In the US, President Trump said Americans should begin returning to their everyday lives even if it leads to more virus cases and confirmed the White House coronavirus task force will be winding down despite the virus remaining rampant, with Vice-President Mike Pence suggesting it could be disbanded within weeks.

His suggestion came even as the University of Washington’s Institute for Health Metrics and Evaluation raised its estimate of America’s death toll from covid-19 by early August, from 72,000 to nearly 135,000. New confirmed infections per day in the US currently top 20,000, and daily deaths exceed 1,000. US health officials warn the virus may spread as businesses begin to reopen.

The FTSE rallied 1.66% yesterday by 95 to 5849 with the Euro stocks 50 likewise up 2.1% with a raft of positive earnings reports added to optimism over the easing of lockdowns by major economies.

Oil Prices also soared higher yesterday on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.

Index slump prompts recession warning

The coronavirus crisis may be driving the UK toward the worst recession in living memory, with concerns raised after a closely watched survey revealed the dominant services sector contracted at the fastest pace on record.

The latest IHS Markit/Cips composite purchasing managers’ index for the UK fell to 13.8 last month, representing the lowest score in over two decades on an index where anything below 50 represents decline.

Nearly 80% of companies reported a drop in activity in April, compared with 43% in March. Tim Moore, economics director at IHS Markit, commented: “April’s PMI data highlights that the downturn in the UK economy during the second quarter of 2020 will be far deeper and more widespread than anything seen in living memory.”

A further warning sign came from Society of Motor Manufacturers and Traders data showing just 4,321 new cars were sold in April, a decline of 97% on April 2019 and the lowest total since 1946.

Extended lockdown would put 1m firms at risk

A report from the Centre for Economics and Business Research (CEBR) think-tank and polling company Opinium shows that 591,000 businesses are at high risk of going bust as a result of the COVID-19 pandemic – a figure representing one in ten UK businesses.

The study also suggests that more than a quarter of a million firms will not survive if the lockdown lasts for another month, while a second wave of coronavirus and fresh lockdown measures “could prove fatal for the business community.”

Assessing a poll of 500 firms, the report predicts that 1.1m firms could collapse if the lockdown rolls on for another three months. Pablo Shah, senior economist at CEBR, said that the findings “provide the first glimpse of the deep and long-term scars that the coronavirus crisis is set to inflict upon the UK economy”.

Government considers trimming furlough rate

The Chancellor has started to plan a phased withdrawal of the furloughing scheme, with one option being considered reducing the 80% wage subsidy to 60%.

Another approach would be to allow some furloughed staff to work, but with a smaller taxpayer subsidy.

Rishi Sunak said that without changes, the Government would spend as much on furloughing as it does on the NHS, remarking: “Clearly that is not a sustainable situation.”

Some 800,000 employers have applied for the coronavirus job retention scheme, according to HMRC.

Small firms could miss out on bounce-back loans

Concern had been raised that a lack of uptake for the Government’s Bounce Back Loan Scheme by lenders may mean small firms hit by the coronavirus crisis are at risk of missing out on support.

So far, just eight banking groups been authorised to handle applications for the scheme, and most are restricting loans to their own business customers.

This raises the possibility that small businesses in need of finance will face delays unless they bank with the larger lenders.

Suren Thiru, head of economics at the British Chambers of Commerce, has urged the Government and British Business Bank to “pull out all the stops to ensure the scheme has sufficient capacity to meet demand”.

Meanwhile, Mike Cherry, national chairman of the Federation of Small Businesses, says full transparency over the loan scheme is “a must”, adding: “All accredited banks should be publishing details on applications, approvals and declines – as well as the speed with which money is reaching accounts after approval”.

Goodbye globalisation?

David Smith in the Times looks at a decline in globalisation, saying it was “severely damaged” during the financial crisis, which marked the end of “hyper-globalisation”. He declares a liking for PwC’s description of the shift: “slowbalisation”.

Pandemic may see increase in flexible leases

Kazim Razvi, a director of Financial Reporting Policy at CFA Institute, believes that covid-19 lockdown restrictions will make businesses “rethink their commitment to renting office spaces when modern technology could be used to chip away at this fixed cost,” and lead them to renew lease contracts with maximum flexibility.

He suggests that real estate leases “have long represented a point of disagreement between accountants and financial analysts.”

UK property groups plead for extended business rates holiday

Over 50 commercial property firms have warned the government that without assistance, many companies risk bankruptcy, calling for all sectors of the economy to benefit from a business rates holiday.

Half of online ad spending goes to industry middlemen

A study from PwC focused on “the highest-profile advertisers, publishers, agencies and adtech” suggests publishers receive just half of money spent on their digital ads by premium brands.

US Manufacturing

US Non-Manufacturing PMI fell to 41.8 in April, down from 52.5 in March, according to the Institute of Supply Management. The market had been expecting a deeper fall to 37.5.

Don’t let Covid19 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).

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 Cash Flow Advice

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Read our blog – What is credit management?

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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