GDP and unemployment Covid19 Business news on 15 June 2020.

15 June 2020.

James Salmon, Operations Director.

We cover the fall in GDP, the rise in unemployment, predictions for the economy, general Covid-19, market news, the call for QE, retail as non essential shops open, calls for tax changes, news on insolvencies, calls for more diversity, how SMEs are adapting, property and a lot lot more as the Covid-19 lock-down continues.

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

Non-essential Shops in the UK are reopening their doors today as attempts to restart the country’s economy continue in the wake of last week’s predictably bad GDP data. “People should shop, and shop with confidence,” Prime Minister Boris Johnson said from a London mall on Sunday, while also suggesting regulations requiring people to stay 2 meters (6 feet 7 inches) apart in public spaces could be relaxed as infection rates fall.

Concern is growing of another breakout of the virus in Beijing with nearly 100 testing positive, linked to a wholesale market in Xinfadi.

The Italian government is being questioned by prosecutors who are looking into the delay in the lock down that could have caused the virus’s spread through Lombardy.

India’s government announced that it will provide 500 railway carriages to Delhi’s city authorities to provide more space for beds to care for covid-19 patients.

Oregon and Utah paused their reopening programmes because of a rise in new covid-19 cases. This week California, Florida and Texas, America’s most populous states, all reported their highest daily counts of new infections.


The second wave of coronavirus pandemic had finally become a main theme in the markets last week. The stock market was quite volatile on Friday  with the FTSE first down 80 points on the massive drop in GDP for April before recovering to end 28 points up by the close as investors bought into the dip.

Europe also ended the day positively and in the US stocks were up over 1%

Oil prices edged slightly higher on Friday but were were still down for the week as new U.S. covid cases spiked, raising the prospect of a second wave hitting demand.

Gold prices in turn climbed on Friday as the awful GDP figures along with the fear of a second wave of coronavirus caused a flight to safe havens.

GDP falls by record 20.4%

Figures from the Office for National Statistics (ONS) show that the economy shrank at its fastest pace on record in April, with GDP declining by 20.4%.

This follows a 5.8% fall in March and 0.2% dip in February, with GDP down 10.4% over the three-month period.

The analysis shows that the economy was 25% smaller in April than in February. All large sectors have been hit by the lock-down rolled out amid the covid-19 crisis, with car manufacturing falling 90.3%, the hospitality sector down 88.1% and private housebuilding dropping 59.1%.

Prime Minister Boris Johnson said the while the economy would see “big, big economic knock-on effects” from COVID-19, Britain can “bounce back” from the crisis. He said: “We’re going to work slowly to get the economy back on its feet.”

Bank of England governor Andrew Bailey said the ONS figures were “not surprising” and “pretty much in line” with what the Bank expected.

Considering measures that could boost the economy, the TaxPayers’ Alliance has called for cuts to capital gains tax and a boost to the annual investment allowance, with the Institute of Directors says an expansion of R&D tax credits and national insurance reliefs may be the way to go.

Looking ahead, Ian Stewart, chief economist at Deloitte, said the return to previous output levels “will take years, not weeks”. EY estimates that UK GDP will shrink by 15% this year, having previously pointed to a 13% decline. Yael Selfin, chief economist at KPMG, believes the ONS figures represent the bottom of the crisis, saying the sharp contraction in activity in April “should be followed by a very gradual improvement over the rest of the year . ”

Unemployment could reach 10%

Prime Minister Boris Johnson has been warned that the economic fallout of the coronavirus crisis could mean one in ten working age British adults are unemployed by the end of 2020.

A report by the Learning and Work Institute says the “sharpest ever rises are taking unemployment to historic highs”, saying unemployment could h it 10% in the second half of the year.

The report suggests unemployment could reach levels not seen since 1938, with more than 4m people out of work.

Lord Forsyth, chair of the House of Lords Economic Affairs Committee, warned: “A great tsunami is going to sweep away the jobs of many people who thought they were in secure employment.”

The Sunday Express’ Brian McGleenon says the period between August, when employers are set to start contributing to wage subsidies, and October, when the furlough scheme is due to end, could be “crunch time for the labour market”.

If lockdown measures are still in place, he adds, Chancellor Rishi Sunak may have to choose between extending the job retention scheme or seeing “a wave of job losses”.

BoE set to launch more QE

Economists expect the Bank of England (BoE) to announce at least another £100bn of quantitative easing (QE) amid efforts to boost an economy hit by the coronavirus crisis, with the Bank set to act in the wake of data showing GDP fell by a record 20.4% in April.

Experts do not foresee the BoE cutting interest rates, which already sit at an all-time low of 0.1%, with it deemed unlikely that the Bank will take official interest rates to below zero for the first time in its 326-year history.

The Bank announced £200bn of QE in March, taking its total to £645bn, while two of the nine members of the Bank’s Monetary Policy Committee (MPC) voted for another £100bn of QE in May – a move analysts expect to be unanimously approved at this week’s meeting.

Samuel Tombs at Pantheon Macroeconomics said more QE was “inevitable”, adding that a “key question” is whether the MPC continues to green light “fairly small sums” or opts to announce a long-term programme stretching beyond the third quarter, like the European Central Bank. “In other words, will it opt for a machine gun or a bazooka?” he asks.

Economy set to contract 8% in 2020

A forecast by the EY Item Club suggest Britain’s economy will shrink by 8% this year, having previously suggested a 6.8% contraction was on the cards. It said that “the gloomier forecast figures reflect a poor economic performance in April due to the lockdown and deeper than expected contraction in Q1”.

While figures show output fell 2% in Q1, some commentators say a 20% decline is likely for Q2. However, EY Item Club says a 15% dip is more likely – up from the 13% fall it forecast in its previous report. EY Item Club analysts expect GDP to climb 5.6% in 2021.

Howard Archer, chief economic advisor to the EY Item Club, said: “After a challenging first half, our forecast shows that the UK economy is expected to start to recover in Q3 on the assumption that the Government continues to gradually relax lockdown restrictions.”

Jobless figure expected to hit 2.47m

Office for National Statistics data set to be released on Tuesday is expected to reveal that the number of people claiming unemployment benefits has reached 2.47m, climbing by 370,000 in May following a record 856,500 increase in April.

The figures are expected to show that the unemployment rate has risen from 3.9% to 4.7% due to the coronavirus pandemic.

Howard Archer, chief economic adviser to the EY ITEM Club, warns that 2020 is likely to be “the worst year for unemployment in years” and that the unemployment rate for the year could be double 2019’s 3.8%.

He added: “The furlough scheme has done a lot of good but it is being wound down and the big concern is what happens afterwards.”

CMI: A third of firms could cut jobs

A survey by the Chartered Management Institute (CMI) shows that 34% of managers are set to make staff redundant due to the impact of coronavirus, with 26% saying the job cuts could come this year.

The poll shows that 6% of companies expect to lay off more than 500 workers, while 18% will fire more than 100. The CMI analysis found that just 22% of managers expect their businesses to be back to normal by the end of the year.

Chancellor urged to support workers who have ‘fallen through the gaps’

The Treasury Select Committee says the Treasury should move to help those who have fallen through the gaps in the Government’s COVID-19 income support schemes, saying more than a million people have been unable to benefit from initiatives designed to support salaried employees and the self-employed.

MPs on the committee have called on Chancellor Rishi Sunak to address gaps in his Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme.

The committee identified five specific groups in need of greater support: those newly in employment; the newly self-employed; self-employed people with annual trading profits in excess of £50,000; directors of limited companies who take a large part of their income in dividends; and freelancers or those on short-term contracts.

Mel Stride, chair of the committee, said that while Mr Sunak had “acted at impressive scale and pace” in delivering support, mi nisters should “urgently enact our recommendations to help those who have fallen through the gaps.”

Graduates brace themselves for an uncertain market

The FT considers the employment climate for graduates, with Anna Purchas of KPMG saying it is difficult to predict how the jobs market will shift for Masters in Finance graduates


Primark finance boss: Pandemic means ‘new reality’ for retail landlords

John Bason, Primark’s finance chief, says the coronavirus pandemic has delivered a “new reality” for high street landlords.

He said COVID-19 is a “step change in rent renegotiations”, suggesting that while the “pace of change in the high street was already picking up for a number of years, led by a move to online”, COVID-19 has “underlined that.”

Mr Bason added: “There will be no doubt in my mind that when new leases are agreed, that the price will reflect the new reality.”

With shops in England set to reopen this week, Paul Martin, head of retail at KPMG, believes retailers will use phased re-openings to “reassess which sites are most commercially viable”.

Tax rethink may tempt shoppers

The Times’ Chris Smyth says ministers will be monitoring consumer activity as shops across England reopen today, “to see whether faltering consumer confidence will require emergency VAT cuts.” He says Chancellor Rishi Sunak is considering either a blanket or a targeted reduction in consumption taxes as retailers demand emergency stimulus.

Helen Dickinson, chief executive of the British Retail Consortium, comments: “The reopening of non-essential shops from today is unlikely to deliver immediate relief. The Government should consider options to stimulate demand, such as a short-term reduction in VAT or a temporary income tax cut for lower-income workers.”

Elsewhere, the Mail looks at the reopening of the retail sector, with Paul Martin of KPMG noting that some stores “may not reopen at all,” while PwC’s Lisa Hooker says: “’If queues for recently reopened retailers have shown us anything, it’s possible that pent-up consumer demand may in fact lead to good news for retailers trying to preserve margins.”

Meanwhile, Yorkshire Post analysis cites KPMG’s Sue Richardson, who warns: “Aggressive discounting in order to get stock moving again will be a temptation, but retailers need to avoid putting their margins under further pressure.”

Manufacturers call for business rates break

With a survey from Make UK and BDO showing manufacturing output hit a record low in Q2, manufacturers have called for a stimulus package that would include a business rates holiday.

The study shows output fell to -56% in Q2, with domestic and international orders falling to -52%. Just 12% of businesses in the sector said they were operating at full capacity, while 36% said they were running at between zero and half capacity.

Firms urge tax break for start-up investors

A group of businesses have written to the Chancellor urging tax breaks for investors pumping money into start-ups, saying it will encourage investment. The 87 signatories want temporary tax relief to encourage private investors to match funding provided by the Government’s £500m Future Fund.

Ministers urged to tax online giants

Policymakers are being urged to roll out tough new taxes for large online firms like Amazon in an effort to level the playing field for struggling high street stores.

Tesco CEO Dave Lewis and Sports Direct boss Mike Ashley have called for an online sales tax, with Mr Lewis saying business rates should be reduced by 20% and the shortfall made up with a 2% levy on all online retail sales.

Paul Monaghan, of the Fair Tax Mark campaign group, said: “The financial cost of coronavirus is going to be in the region of £300bn. It’s vital all sectors of society make a fair contribution and a great place to start would be to tackle tax avoiders and their enablers.”

He added that with profit-shifting to tax havens costing the UK £7bn per year in corporation taxes, there is a need to “act to redress the unfair playing field many businesses face from competitors who aren’t making a fair contribution”, adding that doing so “will help national coffers and the local high street alike.”

Shadow Business Minister Lucy Powell added: “It’s vital there’s a level playing field for our high streets so they don’t lose out,” while Helen Dickinson of the British Retail Consortium said Government support “has provided a lifeline but more will be needed.”

Opinion: Tax cuts may boost recovery

Hamish McRae in the Mail on Sunday considered the economic fallout of the coronavirus crisis and measures that could help drive a recovery.

He said that while the Bank of England is likely to offer a boost after a Monetary Policy Committee meeting this week, with another bout of quantitative easing the minimum to expect, “to be realistic, there is not much more that monetary policy can do.”

Mr McRae says responsibility will fall on the Government and suggests a mini-Budget of tax cuts may be an option, noting that Germany recently agreed to cut VAT in an attempt to boost its economy, adding “there is an argument for that”.

He suggested that while there is a case for temporary tax cuts, there is also a case for a “radical revamp” of the entire tax system.

“A mini-Budget would be helpful, but the cleaning up of our hideously complex tax system is ultimately much more important, and that will have to wait,” he concluded.

Insolvency fall a ‘calm before the storm’

Insolvency Service figures show a year-on-year decline in the number of people going bankrupt across England and Wales in May.

There were 739 bankruptcies last month, down 49% on May 2019, while the number of debt relief orders, another form of personal insolvency, was down by 32%.

Christina Fitzgerald, vice president of insolvency and restructuring trade body R3, said: “Indicators over recent months suggest that an increase in insolvency numbers is coming, but this has not yet materialised,” warning: “We are potentially in the period of calm before the storm. ” Ms Fitzgerald added: “I t’s clear that we’re set for a period of economic turbulence. ”

Firms urged to improve racial equality

Diversity lobbying network INvolve’s chief executive Suki Sandhu has urged UK firms to improve racial equality, saying it “feels like the climate is right for something to really change” adding: “Employers need to be bolder and more daring.”

INvolve has urged ministers to make ethnic minority pay gap reporting mandatory for businesses with 250 or more staff. Bank of England analysis last year found that the pay gap between ethnic minority and white workers was 10%.

BLM pushes diversity focus

Vinjeru Mkandawire in the Sunday Telegraph considered the impact the Black Lives Matter movement is having on large companies, saying it has given fresh momentum to a push for boardroom diversity, with some of Britain’s largest firms looking to recruit non-white directors.

Sir John Parker, who has been commissioned by the Government to help increase representation of ethnic minorities, has been meeting boards to urge them to act, with FTSE 100 bosses set a target to have at least one non-white director by 2021.

Ms Mkandawire says FTSE 100 companies have also had meetings with EY partner Arun Batra, with the audit firm collaborating with Sir John on the Parker Review to improve boardroom diversity.

Mr Batra says for FTSE 100 companies to meet the 2021 target “the remaining all-white FTSE boards need to transform intent into action.”

Home working does not hinder productivity

Elizabeth Anderson in the I looks at productivity and whether the COVID-19 lockdown has proven that workers can be just as productive at home. She points to a survey of financial services industry staff by Deloitte which saw more than 75% say they were equally productive while working remotely.

Employers given 30 days to ‘confess’ to furlough abuses

The Government plans to give businesses a 30-day window to confess to furlough fraud. With draft legislation being rushed through Parliament and set to become law early in July, HMRC has warned employers that it will be able to charge a penalty for any deliberate non-compliance.

An online fraud reporting hotline set up by the Government has received more than 1,900 calls related to such fraud, while whistleblower charity Protect has seen a jump in calls to its advice line.

Dawn Register of BDO expects HMRC to follow up whistleblower reports, using its Connect computer system to flag anomalies in claims.

She said that where HMRC suspects fraud, “we can expect serious investigations,” adding that the draft legislation includes “powers to pursue company office holders where businesses become insolvent, with joint and several liability.”

Ms Register says that while the legislation is expected to introduce a 30-day window for firms to confess to any issues or mistakes, after this it will be “gloves off” for HMRC to pursue incorrect claimants using criminal and civil powers.

Windfall tax could help tackle profiteering

Ian Cowie in the Sunday Times looked at coronavirus profiteering and how authorities can crack down on the practice.

He cites George Bull of RSM who points to how gangster Al Capone was brought to justice, saying that while legislation giving the Competition and Markets Authority greater power is “unlikely to be forthcoming soon”, when law enforcers struggled to convict Capone, “it was the American Internal Revenue Service that secured an 11-year prison sentence on charges of tax evasion.”

Mr Cowie says a windfall tax might enjoy cross-party support, with Mr Bull suggesting it could be based on the difference between businesses’ average profits before and during the crisis.

Wealthy pay less tax than official rates

Analysis of HMRC records shows a number of the UK’s richest individuals pay less tax on earnings than official headline rates, with the discrepancies amounting to £20bn in lost tax revenue.

The study shows that those receiving £10m a year paid an effective average tax of just 21%, while one in ten people taking home more than £1m paid a lower rate than a worker on £15,000.

Researchers at the University of Warwick and the London School of Economics say the Government could introduce a version of the US “alternative minimum tax” to stop the rich gaming Britain’s overly complex system.

Andy Summers, assistant professor of law at the LSE, and Arun Advani, an assistant professor of economics at Warwick, propose a 35% effective tax rate for people earning more than £100,000 on all income, whether it is taken from wages, dividends or capital gains.

Currently, someone earning £100,000 has an effective average rate of 35%, those on £150,000 see a 40% rate, someone on £500,000 pays 45% and those on more than £2m are subject to a 47% rate.

Borders un-checked.

UK Business Groups have reacted favourably to the government’s decision to u-turn on imposing full border checks on all EU goods entering the UK after the Brexit transition period ends.

Border controls will now be introduced over three stages up until July 2021, with Cabinet Office minister Michael Gove has accepting that businesses should not have to tackle both coronavirus and disruption at Britain’s borders.

Michael Gove, said he had “formally confirmed” with the EU that Britain would not seek to prolong the post-Brexit transition period that lasts until the end of the year despite having the option to extend for up to 2 years.

Airlines go to court

EasyJet, Ryanair and International Consolidated Airlines have launched legal action against the UK government’s “flawed” 14-day quarantine policy. The airlines announced they have asked for a judicial review to be heard “as soon as possible”, claiming the measures introduced this week will have a “devastating effect on British tourism and the wider economy”. They said they have seen no evidence of when proposed air bridges between the UK and other countries will be implemented.

SMEs go digital

A study by Hitachi Capital Business Finance shows that almost 80% of SMEs have had to move parts of their business online to stay operational amid the coronavirus pandemic.

The report also reveals that more than two-thirds of SMEs that described themselves as offline businesses prior to the pandemic now have an online presence, with payroll and invoicing among functions taken online.

UK businesses seek swift return to work

Analysis from Growth Intelligence shows that around a quarter of UK SMEs halted trading amid the lockdown, with more than a third of these having already reopened.

Retail drops off a cliff

UK Retailers suffered a decline in footfall of more than 80% in May, as lock-down kept consumers at home and shops shuttered across the country. Footfall plunged 81.6% compared to the same period last year, according to the British Retail Consortium.

Landlords may reject Travelodge CVA

Landlords to Travelodge say they may reject its restructuring plan unless they get clarity about a £40m investment by its owners.

Travelodge has warned that should its proposed CVA be rejected, it would be “likely to enter into administration or liquidation”. The hotel chain wants to cut its rent by more than a third.

Viv Watts, managing partner of landlord Oasis Holding, who is co-ordinating the Travelodge Owners Action Group, said that a “lack of transparency” leaves landlords no choice “but to demand total clarity on key provisions in the CVA proposal or join together in opposition to it”.

Jamie Oliver restaurant bill hits £1m

The Mail on Sunday says auditors dealing with Jamie Oliver’s failed restaurant chain have racked up a bill of more than £1m, with the probe not yet complete. It notes that KPMG last week requested more time to investigate the collapse, having already spent a year delving into the accounts.

France leads on inward investment

A survey by EY shows that Britain lost its crown as Europe’s top destination for foreign investment last year, attracting 1,109 projects compared to France’s 1,197.

Insurers watch and wait as rusty drivers return to the roads

The FT looks at the insurance industry and a fall in motoring-related claims amid the COVID-19 lockdown, with Deloitte forecasting a 29% decline over the full year.

Property sales rebound

Figures from Rightmove show that estate agents in England have seen a rebound in house sales since coronavirus lockdown restrictions were eased on 13 May.

While sales during the lockdown fell by 94%, by 5 June sales were just 3% below their level a year earlier and averaged two thirds of their previous level over the three previous weeks.

The data also show that typical asking prices on the platform were 1.9% up on pre-lockdown averages.

Rightmove director Miles Shipside comments: “There are signs of high pent-up demand and upwards price pressure, rather than downwards”.

Landlords shed 150k homes

Landlords sold more than 150,000 residential properties last year, with most facing an average £22,000 tax bill. Estate agent Hamptons International found that 84% of sellers made a profit, with 16% seeing a loss.

Campaigner who helped close tax loophole faces bankruptcy

Businessman Richard Allen, who exposed tax loopholes and scams to help save the Government more than £1bn a year, faces bankruptcy after losing a case against HMRC. Mr Allen helped shut down a tax loophole in the Channel Islands and helped expose how some overseas Amazon and eBay traders were avoiding VAT. In 2012, International Tax Review recognised him as one of the top 50 global leaders influencing tax policy. Mr Allen launched an unsuccessful legal action for compensation against the taxman because his business was destroyed by the loophole – and HMRC is now pursuing him for £72,000 in legal costs, with an additional charge linked to a freedom of information request he submitted taking the bill to £125,000. Campaigners are now calling for Mr Allen’s work to be officially acknowledged with an HMRC financial reward that would help him avoid bankruptcy

Don’t let Covid-19 bust your business!

 It will if your cash flow dries up, either sooner or later.

The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.

To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.

  • The annual package costs start at very low rates
  • A minimum performance warranty is provided
  • Several complimentary services included

Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).

A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?

 Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.

It takes less than 17 minutes to see how you would benefit, do you have the time now?

No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email today.

When you see your money come in, you will be so glad you used CPA.

Do you sell on credit?

With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Those customers will look for the easiest option  to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply on credit, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and  has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has  helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

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


Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cash-flow.

Don’t let your bankers control you, contact CPA today.

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

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

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could provide the cash boost your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit.  You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping business owners  who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

See all our latest news here!

Housekeeping: Opening a New Account

Late payments are never good for business. What can you do?

Get paid earlier by understanding why late payments happen.

Protecting Your Business isn’t Half As Painful As You Think

The Good, the Bad and the Ugly – recognising the types of payers you do business with!

See our blog on how to communicate with your debtor early and clearly to set the framework for prompt payments

Everything You Always Wanted To Know About Debt Recovery (But Were Afraid To Ask)

Understand the “why” behind late payments

Read our blog on what to do when not paid on time

10 Bad Habits Every Credit Controller Should Give Up

The Credit Controller’s Best Friend

Debt Recovery: It’s Easier Than You Think!

How Managing Your Cash Flow Can Make You (and Your Business) A Success

Avoid insolvency – Don’t let your money go up in smoke

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.

25 excuses for late payment and how to get around them.

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog – How to select a debt collection agency

20 ways to avoid identity theft

see our blog – 15 steps to avoid invoice fraud

Overcoming 5 common reasons for disputed invoices

As insolvencies rise, could you spot these warning signs in your customers?

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