Ease insolvency rules to save viable firms –  business news  3 August 2020.

3 August 2020.

James Salmon, Operations Director.

We cover the call to ease insolvency rules to save viable businesses, while others say zombie firms should be allowed to collapse. The mountain of debt points to a long recovery and how SMEs have been hit by the reopening delay but how SMEs are key to the recovery, the calls for bank of England action and lots of other stories that we have seen that will affect our members and visitors.

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.

Economist: Ease insolvency rules to save viable firms

Economist Randall Kroszner, who sat on the US Federal Reserve’s board of governors, says Britain should rethink its insolvency system to prevent viable businesses from going bust.

Professor Kroszner, of the University of Chicago’s Booth School of Business, believes relaxing insolvency rules could help protect jobs and economic activity, saying: “Given the number of bankruptcies are likely to go up quite significantly, it can be better for the economy and better for the debt-holders to not ‘wind down the business’ and to do a restructuring that maintains employment”.

Insolvency support scheme sees few takers

Despite the Corporate Insolvency and Governance Act being brought in at the end of June in a bid to give struggling companies breathing space from creditors to pursue a rescue plan, just one business has applied for a moratorium under the scheme. Liam Kelly in Sunday Times notes that a company wanting to use the scheme needs an insolvency practitioner to say it will survive, declaring this “something the administrative fraternity finds difficult.”

Let zombies collapse

Ric Traynor, executive chairman and founder of Begbies Traynor, has suggested that letting weak firms collapse might be the “right thing” for the economy. He argues that allowing zombie firms to “go to the wall”, could see stronger rivals take over their share of the market.

Debt points to ‘long road to recovery’

A poll by BDO suggests that nine in 10 medium-sized businesses have made staff redundant amid the COVID-19 crisis, with almost a third of the 500 firms surveyed saying they have laid off around a fifth of their workforce.

More than four-fifths said they will only be able to continue trading for up to nine months, while almost two thirds of companies predicted that it would take between one to three years for the economy to recover from the impact of coronavirus.

The study shows that medium-sized companies have taken an average of £21m in loans, with 10% saying they do not expect to be able to pay it all back.

Paul Eagland of BDO comments: “Some businesses have taken on large amounts of debt to survive, which prefaces a long road to recovery.”

UK Finance and banks are working together to develop a strategy that will ask the Government to help bear the brunt of the significant amount of inevitable incoming bad debt accumulated by UK businesses.

There are concerns about a re-run of the aftermath of the Global Financial Crisis. Previously businesses could service debt from remaining cash flows with little or no capital for investment which resulted in a zombie status for many UK SME’s. However it appears this dangerous trend is re-emerging and according to The City UK, it is estimated that businesses may build up £100 billion of debt by next March which they would be unable to repay with 780,000 SMEs in danger of insolvency.

We are facing a significant double dip recession that could last well into late 2021 and the economy will be hurt by both SMEs closing and mass redundancies for a significant part of the workforce. SMEs are not just the lifeblood of the economy, it is where innovation and creativity happens.

Since the epidemic took hold, the UK Government has been quick to back sectors that are resilient to recessions and market volatility, providing financial security and protection through initiatives such as the bounce-back loans scheme.

Firms may miss out on £1.37bn

The Local Government Association (LGA) has warned that firms could miss out on more than £1bn in support as the Government looks to close emergency funding schemes for small business and the retail, hospitality and leisure sector on August 28. The body calculates that £1.37bn has yet to be allocated and has urged ministers to keep the discretionary grants fund open. LGA Resources Board chairman Richard Watts has also called for any unspent resources to be redistributed to local authorities so they can help support small businesses and “reboot local economies.”

Reopening delay a ‘massive blow’ for small firms

The Government has delayed the latest stage of easing the lockdown, meaning some businesses due to reopen today must now stay closed for at least another fortnight.

Federation of Small Businesses national chairman Mike Cherry said the announcement would come as “a massive blow to thousands of small firms,” but noted businesses were warned that restrictions would “need to be responsive to any resurgence in transmissions”.

“What we absolutely have to avoid is a scenario where whole swathes of the small business community … are wiped out entirely,” he added.

British Chambers of Commerce co-executive director Claire Walker said that while public health must be the priority, such announcements, made at very short notice “will be a hammer blow to business and consumer confidence at a time when many firms were just starting to get back on their feet.”

SMEs will help post-virus recovery

International Trade Secretary Liz Truss believes the online sales and exports generated by SMEs will benefit from the free-trade deals being negotiated by the Government. She said exports and e-commerce have been “essential in keeping the economy going” during the coronavirus crisis, “and will continue to be at the forefront as we expand our horizons”. On the impact of the pandemic, a poll by Oxford Economics has found that 86% of SMEs have changed the way they do business, making greater use of digital tools.

BoE to look to QE and negative rates?

Economists expect the Bank of England (BoE) to hold interest rates at 0.1% this week, forecasting that the Bank could launch a further stimulus package worth up to £100bn before cutting rates to below zero. Bloomberg analysis shows that money markets are beginning to price in a cut to negative rates in Q2 2021.

Chris Williamson, chief business economist at IHS Markit, said that while he does not believe negative rates are imminent, the Bank “will need to produce more stimulus from somewhere”. With the Bank expanding its quantitative easing programme from £445bn to £745bn amid the coronavirus crisis,

Howard Archer, chief economist at the EY Item Club, says he expects further QE later in the year. Douglas McWilliams, deputy chairman of the independent Centre for Economics and Business Research, suggests a mixture of QE and negative rates may be required to keep the economy afloat. The Mail on Sunday notes that BoE governor Andrew Bailey is expected to this week publish a report into the prospect of negative rates, having warned in June that such a measure was a possibility

King: Increasing QE would be ‘premature’

Sir Mervyn King, a former Governor of the Bank of England (BoE), believes it would be premature for the Bank to expand the quantitative easing scheme too early. Speaking ahead of this week’s meeting of the Monetary Policy Committee (MPC), which sets the UK’s interest rates, he said the BoE should wait until the economy has recovered to levels similar to those seen at the end of 2019 before returning to conventional monetary and fiscal measures.

Sir Mervyn said arguments for QE focus on whether there is a need to expand the money supply in order to boost economic recovery, but says this has not been an issue in recent months as the Government has been “trying to shut down the economy. It doesn’t want it to expand.” He said while at this stage of the recovery policymakers may be weighing the relevance of monetary and fiscal stimulus, “I still think it’s premature to argue that a big monetary stimulus is appropriate because we still have significant aspects of a shutdown.”

Jobs warning as furlough scheme is wound down

Ministers have been warned that jobs are at risk as the furlough scheme begins to be wound down. As of today, companies will have to contribute to the cost of furloughed workers by paying employer national insurance and pension contributions, while the job retention scheme is to be phased out by the end of October.

The Resolution Foundation believes furloughing should be phased out “more slowly” for certain sectors, warning that as many as one million people in hospitality and leisure roles may be facing redundancy.

The Federation of Small Businesses (FSB) says the Government “cannot afford to pull up the business support drawbridge any time soon”, calling for a cut in employment taxes that could include a national insurance contribution holiday. Mike Cherry, chairman of the FSB, highlighted that a fifth of small firms have had to let staff go over the last three months, commenting: “Even with critical emergency measures in place, jobs are sadly being lost in the here and now.”

Inflation expectations near seven-year high

A YouGov poll of 2,010 people shows that the British public’s expectations for inflation over the coming year rose in July, hitting levels last seen in 2013. Year-ahead inflation expectations rose to 3.2% in July from 3% in June, while expectations for the five to ten year period climbed to 3.3%, up from 3.2% and marking a one-year high.

Half of furloughed staff back in work

Research by the Resolution Foundation think-tank shows that more than half of furloughed employees have already returned to work. Its analysis shows that the peak number of furloughed workers was almost 8m in late April. Since then, a large number of staff have returned to work either fully of part-time, leaving fewer than 4.5m employees currently furloughed.

Staff to stay out of office?

John Humphrys in the Mail on Saturday said that with more staff working from home in the wake of the COVID-19 lockdown, businesses may consider converting offices into residential property. He notes that firms including KPMG have said they “have no plans to fill their city offices again at least until next year”.

Staff set to stay home, despite PM’s ‘back to work’ call

Despite the Prime Minister having said that it is “very important that people should be going back to work if they can” – with today the first working day since Boris Johnson’s ‘work from home’ guidance came to an end – analysis suggests that many employees will not be returning to the office this week – or anytime soon.

British Chambers of Commerce research suggests 62% of employers expect their staff to remain working remotely for the foreseeable future, saying some or all workers will be working from home for the next 12 months.

Daily Mail analysis shows that just 17% of office-based staff will travel to work this week. The paper notes that PwC chairman Kevin Ellis has suggested his employees would only spend three or four days per week in the office, even after the pandemic.

Pandemic drives remote work revolution

The Sunday Times’ Jill Treanor looks at what the shift toward working from home brought about by the coronavirus lockdown may mean for the way firms operate. She says roles that firms “once thought could be done only from an office have been shown to work well remotely.”

On what home-based work may mean for staff, KPMG’s Matthew Hunnybun says: “Employees realise they might get smaller bonuses or even pay reductions – some of this may be alleviated by saving money and time on the daily commute.”

Ms Treanor says PwC is starting to encourage the firm’s 22,000 staff to return to offices, with 5,000 doing so last week and chairman Kevin Ellis hoping 50% will be back at their desks by the end of September.

Mr Ellis comments: “Just because you can work from home doesn’t mean you should.” He has also expressed a belief that the shift to working from home has “bashed away presenteeism for ever”.

Meanwhile, Deloitte’s Shivani Maitra says the move to remote working shows staff can be trusted to get work done. “The reason people came into work before [was because] there was an attitude that if you were not at work you were not working. So the culture of presenteeism was quite strong,” she said. Elsewhere, the Sunday Express’ Nick Ferrari looks at home working, noting that KPMG has said most of its 16,000 employees will not be expected to return until 2021.

Halfon in skills plan call

Robert Halfon, chair of Parliament’s cross-party Education Select Committee, has called for a nationwide skills plan that would see half of all university students study degree apprenticeships. He notes research from PwC showing that almost 30% of jobs currently taken by 16- to 24-year-olds could be fully automated within the next decade.


Covid-19 general news

Global coronavirus cases surpassed 18 million as the pandemic is now adding a million infections every four days, prompting more lockdowns around the world. At its current pace of about 250,000 or so new cases a day, there could be more than 50 million infections worldwide by the end of 2020.

Millions of Coronavirus Tests able to detect the virus within 90 minutes will be rolled out to UK hospitals, care homes and laboratories to boost capacity in the coming months, the health minister said. They will comprise 5.8 million tests using DNA and 450,000 swab tests. Neither will need to be administered by a health professional, said Matt Hancock.

Prime Minister Boris Johnson  hit the brakes Friday on easing the lock-down measures for “higher risk” settings including sports venues, casinos, leisure centres and weddings, following a sharp spike in covid cases. In a press conference, Boris Johnson said original plans to reopen venues tomorrow will now be paused until at least 15 August.

The government is looking at all options for tackling flare-ups, following reports that a London-wide lockdown is being considered

Starting today the taxpayer will pay half the cost of  meals for those eating out at particpating restaurants from Monday to Wednesday. The Treasury dubs the scheme “eat out to help out”. But there are caveats, and lots of them. Diners must eat in (ie not get takeaway), and they can claim up to a maximum of £10 per person per meal and alcohol is excluded.

South Africa surpassed 500,000 cases of covid-19. It has the fifth-heaviest caseload in the world, including most of the African continentent’s confirmed infections.

GSK and Sanofi disclosed on Friday a US government order for 100m doses of their Covid-19 vaccine (assuming it successfully passes trials) with an option to buy a further 500m and a $2bn grant in respect of funding its R&D.

India recorded 50,000 new cases a day for five days, taking the country’s total to over 1.75m. India’s home minister, Amit Shah, tested positive and was admitted to hospital.

South America collectively has nearly 5 million cases 30% of the world’s total, compared with 8% of its population.


On Friday the FTSE dropped 1.09% following a tough week and uninspiring earnings reports from leading UK companies. And the Eurostoxx 50 fell 0.62% with large drops in France and Spain leading the continent. In US the there were surges from Facebook, Apple and Amazon which dragged the NASDAQ up 1.5% while the broader S&P 500 was more subdued, up 0.8% with Alphabet, the parent of Google, down heavily on lower advertising revenue. Sterling was firm rising to US$1.31, €1.11 and Y138.6 its best levels over 2020.

On Sunday, Bitcoin crossed above $12,000 for the first time since August 2019, before plunging by more than 10% within minutes.

Oil prices were up in July, benefiting from the weaker dollar which was down on concerns over the recovery of the US economy as covid slows economic output.

The Gold price headed for its biggest monthly gain in 8 years as the impact of the worsening virus pandemic on the US economy hurt the dollar, prompting investors to pile into safe assets.


The Eurozone Economy contracted by a record 12.1 per cent in the second quarter of the year as coronavirus lockdowns caused business activity to shudder to a halt and consumer spending to dry up. Spain’s economy contracted by 18.5% , France’s by 13.8%, Italy’s by 12.4% and Germany’s by 10.1%.

House Prices

UK house prices saw their biggest rise in 11 years last month, with the market bouncing back as it reopened after the coronavirus lockdown. UK House Prices bounced back in July, climbing 1.7% during the month compared to a 1.5% fall in June, according to latest figures from Nationwide. Activity in the housing market has been boosted by pent-up demand and as well as the temporary stamp duty holiday.

The average price of a home sold in July was £220,936, up from £216,403 in June.

Nationwide’s chief economist Robert Gardner said: “The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.” However, he warned that July’s increase may prove to be “something of a false dawn”, saying that activity could be dampened if, as many forecasters expect, labour market conditions “weaken significantly” in the wake of the pandemic and as government support schemes wind down. EY Item Club chief economist Howard Archer said market activity “may well see a pick-up in the near term providing some support to prices”, noting the impact of the stamp duty threshold being increased.

Government extends Help to Buy scheme

The Government has announced a small extension to the Help to Buy equity loan scheme to allow for delays caused by the coronavirus crisis. While the building deadline for new homes sold through the scheme will be extended by two months, from the end of December 2020 to the end of February 2021, the 31 March 2021 deadline for sale completions remains. However, for buyers who have seen severe delays and reserved properties before June 30, the deadline to complete purchases has been pushed back to the end of May 2021. Developers had called for a broader extension, urging ministers to extend the scheme by a year. Alex Rose, of Zoopla, comments: “The devil is in the detail, and many would argue that a two-month extension might not give housebuilders enough time to meet these build deadlines.” Noting that the pandemic means residential construction is currently operating at between 60% and 85% of normal output, he added: “While we’d hoped for a more encompassing extension, every ounce of support helps at this stage”.

CGT could home in on property?

Melissa Lawford in the Telegraph says the Government’s review of capital gains tax “has made many people very uneasy” and could mean sellers all end up paying tax on the gains made when selling homes. She points to Social Market Foundation calculations showing that the Treasury would pull in £481bn over 25 years if it charged CGT at 10%, scrapped stamp duty and IHT on property, and funded new first-time buyer incentives worth £600m a year. CGT reform to include primary residences would be worth an extra £26.7bn a year to the Treasury, according to National Audit Office calculations. Ms Lawford says that if movers pay CGT instead of stamp duty, they will end up paying more tax overall but will be paying an amount based on how much they have profited, “not based on how much they are spending at a time when they are most financially stretched”.

Wealth tax or CGT rethink could boost the coffers

Writing in the Scotsman, Andrew Paterson of law firm Murray Beith Murray looks at the Chancellor’s options for rebalancing the books to cover the nation’s coronavirus bill. He says the introduction of a wealth tax may be an option, noting a poll showing that saw 61% of people say they favoured a wealth tax on those who had assets of more than £750,000. Mr Paterson argues that a more likely scenario could see capital gains tax reformed, with Rishi Sunak having asked the Office of Tax Simplification to review the levy

Byron serves up rescue deal

Byron has gone through a pre-pack administration resulting in the sale of 20 of its 51 outlets to investment firm Calveton UK. The burger chain’s remaining restaurants will stay closed, with 651 employees made redundant. Joint administrator Will Wright of KPMG said: “After exploring a number of options to safeguard the future of the business and following a competitive sales process, this transaction ensures Byron will continue to have a presence on our high streets.” Meanwhile, sushi chain Itsu has announced plans to use a CVA to close two sites and cut rents on 53 of its 77 outlets.

Pension withdrawals fall

HMRC figures show that £2.3bn was withdrawn from pensions in Q2, a 17% decline on the £2.8bn withdrawn in Q2 2019. The typical amount withdrawn per individual in Q2 2020 was £6,700, down 18% from the £8,200 average recorded in Q2 2019. The data also reveals that 340,000 individuals withdrew from pensions in the second quarter of the year, a 1% year-on-year increase but a decline on the 348,000 who took money from their pot in Q1. This decrease differs from the normal seasonal pattern that tends to see withdrawals rise in Q1 before peaking in Q2, which coincides with the beginning of a new tax year.

Wedding bells and tax bills

People married in the last four years could be set to see unexpected tax bills, with HMRC chasing up venues that failed to charge couples VAT. Local authorities, which hire out town halls and council venues, have been hit with bills and accountants warn that if councils are unsuccessful in efforts to challenge the charges, they may have to pass them on to couples. HMRC official Christopher Palmer recently wrote to the Chartered Institute of Public Finance and Accountancy to explain the charges, which can be handed out up to four years after a ceremony has taken place. Scott Harwood at RSM said councils may look at contracts signed with guests and bill them for the extra amount. “If the price they were charged states ‘exclusive of VAT’ they will be able to pass that on to the couples,” he adds.

Online tax could hit low-income households

Connor Coombe-Whitlock in the Express on Saturday  looked at reports that the Chancellor is considering introducing an online sales tax that would place a 2% levy on goods sold online. Martin Gurney of Haines Watts said that the Government is under pressure to raise revenue to cover the cost of Coronavirus support measures, saying the challenge is to “find mechanisms to raise funds without further destabilising an already precarious economy.” While he believes an online sales tax would seem “like a logical step” in principal, he warns: “The issue, however, is that the cost on such ‘indirect’ taxes gets passed on to the consumer, therefore such measures are often seen as taxing low-income households disproportionately.”

Tech firms unimpressed by tax proposal

Hannah Boland in the Sunday Telegraph considered the potential impact of Chancellor Rishi Sunak’s proposed sales tax that could place a 2% levy on items sold online by internet retailers, saying that while it might offer a boost to high street stores, it has drawn criticism from a tech industry which has already faced the roll out of the digital services tax. Ms Boland also points to a plan being considered by officials that would see an extra charge levied on deliveries. EY’s Chris Sanger believes there is room for movement on all of the plans, saying: “I don’t think we’re in a position where this is a fait accompli.”

Analysing Amazon

Dominic Lawson in the Mail looks at Amazon, saying: “Obviously, there is an issue about the tax Amazon pays (or doesn’t pay) relative to high street retailers”, noting that retail bosses including Tesco’s Dave Lewis and Sports Direct’s Mike Ashley have called for an online sales tax to make competition fairer. Mr Lawson says that while the Government is committed to a new tax on online businesses, people must remember that “the sums will, ultimately, come out of the pockets of consumers.” He also highlights that corporate taxes are charged on profits, not turnover, “and Amazon’s business model has always been to operate at the very finest of margins”.

Committee warns over tax credit debt

The Lords Economic Affairs Committee has criticised the way tax credit debt impacts a claimant’s current Universal Credit payments. The Committee’s Universal Credit isn’t working: proposals for reform study says the Government is using Universal Credit to recover debt, including £6bn of “historic tax credit debt”. Calling on ministers to write off historic tax credit debt that is owed by Universal Credit claimants, the report says it “should be treated as a sunk cost as it is highly unlikely to ever be repaid in full.”

Treasury inquiry could see tax increases

The Sunday Express’ Connor Coombe-Whitlock considered the likelihood of tax increases as the Government looks to rebalance the books to cover the cost of coronavirus support measures. He highlights that the Treasury Committee has launched an inquiry into the tax system, with it set to explore the long-term pressures it is facing in the wake of the pandemic. The study, it is noted, will look at the overall level of taxation the economy can bear, the role of tax relief in rebuilding the economy, and the potential role of windfall taxes. Mel Stride, chair of the Treasury Committee, has said tax will “play a major role in the years ahead in restoring the public finances.” Andrew Oury at Oury Clark comments: “Without a doubt taxes will have to go up. There is just no way around this problem. The Piper will have to be paid.” With the Government also announcing a review of capital gains tax, Mr Oury suggests CGT may be brought in line with income tax, adding that higher rate pension relief may be scrapped.

Social care funding considered

With ministers reportedly considering additional tax for those over 40 so as to help cover the costs of later-life care, Chris Etherington of RSM comments: “The most straightforward approach for such a tax could be for the amounts raised to match, pound for pound, the amounts that will need to come from the public purse in the future.” RSM analysis suggests that an additional levy paid by those aged between 40 and 65 would see each person pay £700 in extra tax per year.

Two-thirds of new fathers not taking paternity pay

Analysis by law firm EMW suggests that a number of new fathers are opting not to take paternity leave as the statutory rate of pay is too low. HMRC data shows that two-thirds of men are not taking leave, with just 208,000 fathers claiming paternity pay in the year to March 31. In the same period, 649,000 women received maternity pay. Claimants receive just £151.20 or 90% of their average weekly earnings, whichever is lowest, with lawyers saying that many couples cannot afford for both parents to take leave at that rate. EMW is urging the Government to consider raising the amount of statutory paternity pay, with the firm’s Jon Taylor saying doing so would boost uptake and “be an enormous step towards reducing the parental leave gap.”

New chapter for audiobooks

Deloitte predicts that audiobook sales are likely to overtake ebooks in the next few years, with analysis showing that global sales have been growing at 25-30% a year for the past three years and will hit $3.5bn in 2020.

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
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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


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