27% rise in insolvencies forecast –  business news 2 September 2020.

James Salmon, Operations Director.

27% rise in insolvencies forecast,  the latest BOE economy figures, manufacturing expands,  calls for the chancellor to promote growth, housing, employment, office & school returns, house prices, tax, covid-19, market and other business news.

Here are CPA we want to  share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.

27% rise in insolvencies forecast

A new report shows its UK insolvencies forecast predicts a  jump by 27% this year, slightly higher than the global average rise of 26%,  The insolvencies forecast is revealed in a new economic research report by top trade credit insurer Atradius.

The UK is expected to see the largest GDP contraction in Northern Europe following a stringent lockdown and high Brexit uncertainty. Atradius economists report that the depth and length of the global recession will be determined by the ability of economies to manage health regulations and either achieve exit from lockdown or find a way to thrive with social distancing.

In response to global economic decline, every market is expected to experience a rise in insolvencies in 2020, led by Turkey with a 41% forecast increase, followed by the United States and Hong Kong with a forecast rise of 39%. Portugal, Russia, the Netherlands and Spain are the next worse affected regions with insolvencies up between 30% and 36%. A 27% increase is forecast for both South Africa and the UK, which has the ninth highest insolvency forecast out of 31 global markets. Meanwhile, insolvencies are forecast to rise 19% in Ireland, 17% in Italy and 15% in France. Germany is expected to see the smallest increase at just 6% year on year.

In the first half of the year, insolvency levels have not reflected the economic decline experienced in many markets. In fact, Atradius’ research demonstrates insolvencies fell, with UK insolvencies down more than 20% year-on-year in H2 and similar patterns replicated globally.

However, Atradius explains this peculiarity by changes to the insolvency regime in most countries, designed to protect companies from going bankrupt. These include temporary suspensions of insolvency applications, preventing creditors from starting insolvency procedures or raising the debt threshold for bankruptcy notice. In addition, governments and central banks have taken measures to counteract the economic impact on businesses such as SME lending programmes, subsidies – including furlough payments – and tax suspensions. As measures and programmes begin to expire, Atradius forecasts that the brunt of the recession will be more fully reflected with a rapid climb of insolvency levels in the second half of the year.

Atradius Chief Economist John Lorié commented: “Government measures have reduced the anticipated increase in bankruptcy filings in a range of ways. They have either shifted the threshold for filing, reduced debtor’s ability to force bankruptcy, or provided sufficient financial support to delay filings. However as the support programs begin to expire, the number of filings should climb rapidly.”

The UK’s insolvency rate is forecast to drop by 1% in 2021. However, this is still a cumulative growth of 25% between 2019 and 2021.

Simon Rockett,  for Atradius UK, commented: “The coronavirus pandemic has been indiscriminate in its spread across the globe, resulting in lockdowns and containment measures which have had a tangible impact on economic markets. This has included delays in production, a drop in business and consumer demand and widespread business closures. While many countries have implemented fiscal stimulus measures to soften the blow, these cannot last forever and worldwide economies are starting to realise the true economic impact in the form of recession and a bleak return to rising insolvency levels.

“Real-time monitoring of global markets and the impact on individual businesses, together with agility in response are critical factors in navigating today’s uncertain climate. The continuation of trade is essential to rebuilding business growth while a robust risk strategy to protect the bottom line is as important today as it has ever been”

BoE data fuels hope of V-shape recovery

Bank of England (BoE) figures for July have raised hopes that the economy may be heading toward a V-shaped recovery, with borrowing on the up. July saw households borrow an extra £1.2bn in personal loans and credit card debt – more than the average £1.1bn seen in the 18 months to February.

Credit card borrowing hit £622m during July, the highest rise in a single month since June 2018, while mortgage approvals rose 26,000 over the month to 66,300, with £2.7bn in new mortgage borrowing.

The BoE report shows that lenders have put up the cost of consumer loans amid economic uncertainty driven by the coronavirus crisis, with the cost of new loans up by 0.22 percentage points to 4.64% in July and overdraft charges rising by 1.6 percentage points to 14.84%.

The figures reveal that households saved an extra £7bn in July, an increase on the £5bn average seen pre-pandemic but down on the & pound;19.1bn recorded at the peak of the crisis.

Companies saved an extra £11.8bn during July as overall deposits rose by £26.3bn.

Howard Archer, senior economic adviser at the EY Item Club, warned of “challenging fundamentals for consumers”, saying people have already lost jobs, despite Government support, while others will be concerned they may lose their job once the furlough scheme ends.

He added that incomes have been hit and consumer confidence remains low “compared to long-term norms”.

Manufacturing expands

Output from Britain’s manufacturing sector expanded at the fastest rate for more than six years last month, with the IHS Markit/Cips manufacturing purchasing managers’ index registering a score of 55.2 in August.

This is up from 53.3 in July on an index where a reading above 50 denotes expansion. Simon Jonsson, head of industrial products at KPMG, said: “The index reading for August gives hope for recovery in UK manufacturing, but it’s still very early days and the next few months will be crucial for the confidence of manufacturing businesses.”

Sunak urged to ‘go for growth’

With Chancellor Rishi Sunak reportedly considering tax increases in an effort to cover the cost of COVID-19 pandemic, the Confederation of British Industry has urged ministers to “go for growth”.

CBI deputy director-general Josh Hardie said: “However the Government decides to handle debt, one thing is certain – a growing economy backed by investment will make it easier.” “With so much uncertainty ahead with the pandemic and Brexit, now is the time to go for growth,” he added.

Mike Cherry, national chairman of the Federation of Small Business, also voiced concern over possible increases in corporation and capital gains taxes, saying: “It’s an approach that would send completely the wrong message to those who are out of work and thinking about starting up their own venture.”

Meanwhile, Paul Johnson of the Institute for Fiscal Studies, has said that the Chancellor will have to introduce some “pretty hefty” tax rises “at some point” but told Radio 4’s Today programme: “I think we should be looking probably initially at a couple of years where the Government is supporting the economy and only really when the recovery is fairly clearly underway and the economy is getting back closer to normal will we be looking at tax rises.”

Elsewhere, Gerard Lyons, chief economic strategist at Netwealth, suggests that increasing taxes is not needed to bring the deficit down, calling instead for measures to drive growth.

Matthew Lynn argues that while “there is never a good time to tax wealth creation … this is an especially bad moment.”

Business leaders have warned that investors could look outside Britain for opportunities if the Chancellor opts to increase corporation tax and capital gains tax, with Rishi Sunak said to be considering reforms to the levies ahead of the next Budget.

Sir Martin Sorrell, the founder and former chief executive of WPP, said such moves would “disincentive and push away external investment”, suggesting that business needs “further stimulus not a further depressant or downer”.

Richard Tice, Brexit Party chairman and chief executive of property investor Quidnet Capital, has called for pro-growth tax reform that would support UK firms and “provide some incentive for international investors to come to the country”.

Julian Jessop, an independent economist, said of the potential tax rethink: “It would backfire partly because it would drive companies overseas and but also because taxes aren’t paid by companies, the y are paid by people – it is not pain free.”

Former Chancellor Norman Lamont believes Rishi Sunak should “put the emphasis on expenditure cuts rather than tax rises” as he looks to balance the books in the wake of the coronavirus crisis, arguing that increased taxes “diminish incentives for enterprise.”

Mr Lamont, who warns that economic recovery is not assured, argues that it is not necessary – or desirable – to introduce a drastic rethink on taxes at this point, saying it would risk “choking off” the recovery and hurting businesses at a time when they need support, given the “fragility” of the economy.

Mr Lamont quotes Winston Churchill, who once suggested: “For a nation to try and tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handles.”

Worker demand points to ‘asymmetric recovery’

Analysis of positions being taken up suggests that the labour market is undergoing an “asymmetric recovery”, with data from LinkedIn showing that demand for office workers is lagging behind other types of roles.

Following the jobs market all but coming to a halt during the coronavirus lockdown, the proportion of workers taking up white-collar roles has fallen behind those joining other sectors despite the gradual return to workplaces.

The new job rate for workers in transport and logistics has risen by 18% year-on-year, with new jobs in healthcare up 12% while those in construction are up by 9%.

In contrast, new jobs in media are down 17%, with a 9% year-on-year dip in software and IT roles and a decline of almost 10% in the finance and legal jobs rate.

The analysis shows that leisure industries have been the hardest hit, with a 31% dip in the rate of new jobs for recreation and travel workers.

LinkedIn economist Mariano Mamertino says there is “an asymmetric recovery across industries”, with sectors that offer largely white-collar roles “facing stronger headwinds”.

FSB calls for Eat Out to Help Out extension

The Federation of Small Businesses (FSB) have called on ministers to extend the Eat Out to Help Out scheme, with the scheme offering diners a discount on meals in a bid to encourage people to eat out coming to an end on Monday 31st August.

FSB chairman Mike Cherry believes the initiative should be extended “to continue the critical support that it is providing for small firms as we enter a period of economic make or break.” He added: “As we enter September with schools reopening and more people going back to their places of work, there are still strong merits to continuing this for one more month.”

The FSB has also suggested that the Eat Out to Help Out scheme should be “reactivated” in areas that have gone through local lockdowns.

KPMG in growth warning

KPMG has predicted a 10.3% decline in growth for the UK this year, with a potential decline of 12.6% if a second coronavirus lockdown occurs.

The 10.3% estimate compares to a decline of 7.2% it forecast in June. KPMG expects an 8.4% recovery in growth during 2021 if a Brexit deal is struck with the EU by the end of 2020 and a coronavirus vaccine is approved early next year.

KPMG’s chief economist Yael Selfin expects the end of the furlough scheme to send unemployment above 9% in the final quarter of 2020, up from the current level of 3.9%. The forecast exceeds the 7.5% predicted by the Bank of England.

School return set to boost economy

With schools reopening this week, analysts have said the economy could be set for a £70bn boost, with children returning to the classroom full-time enabling more parents to return to the office.

The Centre for Economics and Business Research (CEBR) said that with as many as 5% more employees set to return to their workplaces, GDP could climb by more than 3%, with productivity boosted and the hospitality sector given a lift by workers returning to cafes, sandwich bars, pubs and restaurants.

The CEBR says that measured GDP could be 3.3% higher, which equates to roughly £70bn a year.

City expects most workers to stay at home

Large City companies say they are not expecting a rush to the Square Mile despite ministers urging people to get back to their desks.

Financial institutions say they expect their London skyscrapers to stay largely empty this month as they go “slow and steady” on getting people back in.

PwC is aiming to be operating at 50% of its pre-pandemic capacity by the end of September, while KPMG, which currently has capacity for 30% of its workforce to return to its London base, hopes to have 60% back by the end of October

Firms and staff divided over office returns

A survey of 100 businesses by Blick Rothenberg shows that while 60% of employers believe staff should return to offices by the end of this year, almost the same percentage of employees either feel they would return in 2021 or remained undecided.

On a move toward increased remote working, 60% of employers and 58% of employees believe staff will spend only two or three days in the office when they do return. The poll also saw 51% of businesses say they are considering a reduction in office space while 46% have already attempted to renegotiate rental terms with landlords.

Pandemic prompts women to set up businesses

A new study has found that one in four women are setting up their own business as a result of the coronavirus crisis, with the Making It Work survey from AllBright showing that 74% of members of the women-only members club feel inspired to start a business after the pandemic.

It was found that 25% have already started a new business while 61% are planning to change career as a result of the pandemic. The report also reveals that 65% of those polled plan to invest in upskilling as a result of the crisis, while 50% believe the pandemic will provide new job opportunities.

Mortgage approvals jump

Mortgage approvals have reached levels nearly equal to those seen before coronavirus, with 66,300 in July, up from 39,900 a month earlier.

July’s total is the highest since February, where 73,700 were recorded, and close to July 2018’s total. In terms of value, mortgage approvals hit a record high of £16.7bn in July, a 64% month-on-month increase and 7.3% up on July 2019.

Hugh Wade-Jones, the managing director of Enness Global Mortgages, said a surge in buyer demand seen once the market reopened following the coronavirus lockdown “has been seriously turbo-charged” by the stamp duty holiday announced by the Chancellor at the start of last month.

Nationwide has reported UK house price growth accelerated to 3.7% in August from 1.5% in July helped by the stamp duty changes, pent up demand post the lockdown and behavioural shifts as owners reassess their housing needs.

CGT plans could deliver £27k hit for BTL landlords

Research by estate agent Hamptons International suggests that proposed changes to capital gains tax could cost buy-to-let landlords up to £27,000 more for each property sold. With the Chancellor reportedly considering increasing the CGT rate from 28% to 40% for a higher-rate taxpayer and from 18% to 20% for a basic rate taxpayer, analysis suggests that lower-rate taxpayers will be worse off by an average £1,130 when selling up, while higher-rate payers will pay on average £6,800 more.

Meanwhile, John Cronin, a banks analyst at Goodbody, said the mooted reform of CGT could shake up the housing industry by putting off part-time landlords and creating a gap that professional landlords could fill.

Covid-19 general news

Global cases top 25.7 million, deaths rise to 857,000.

Deaths in England and Wales in the week ending 21 August attributed to Covid fell to 138 (out of a total of 9631)  a 22 week low, although the total number was 474 above the five year average expected.

PM Boris Johnson has encouraged the civil service to return to their desks and claimed, without providing evidence, that people in “huge numbers [were returning] to the office”. The PM has been addressing his own MPs concerns about the government’s handling of the Covid-19 pandemic. The “All In, All Together” campaign is focused on first providing a safe working place for returnees.

The UK government launched a £2bn work scheme for young people. Separately the government announced Eat Out to Help Out boosted restaurant spending by one third.

The Trump administration said it will not participate in a global programme to develop and distribute a covid-19 vaccine because the World Health Organisation is involved. Mr Trump thinks it is in China’s thrall. Some 170 other countries may join the Covax scheme. Separately a World Economic Forum poll found that a third of Americans would refuse to be vaccinated.

The Vatican will take a step back towards normality when it readmits members of the public to the Pope’s weekly meetings although the number permitted in the courtyard inside the Vatican will tiny compared to the numbers that could be accommodated in St Peters Square.


As the dollar fell and the pound gained the export income heavy FTSE stumbled 1.7% yesterday, Apple’s market capitalisation is now greater than the entire FTSE 100 index.

The US dollar is down on the realisation the US Federal Reserve’s willingness to let inflation rise will allow US interest rates to stay in place for up to 5 years. The change in the Fed’s focus on the labour side, to review income disparities has also brought plenty of speculation.

The euro briefly rose briefly above $1.20 against the dollar for the first time in more than two years although it has since retreated. The pound has also retreated but is still at $1.337

Overnight, the DOW rose 0.76%, still on track to test 29568.57, a record high. The S&P 500 rose 0.75% to 3526.65 record. And the NASDAQ also rose 1.39% to 11939.66 record.

Asian Markets traded up, Tokyo stocks added 0.47% as investors bet the next PM would be chief cabinet secretary Yoshihide Suga.

Airlines were on the downside on suggestions of an imminent re-imposition of quarantine conditions on travellers returning from Portugal alongside downbeat commentary from Wizz Air. The Wizz board said Q3 capacity may stay at 60% similar to Q2 levels if virus restrictions remain in place. Wizz shares are down 146p in response.

UK-EU trade negotiations are stuck, but a deal is still possible but “not easy to achieve” according to Downing Street. The UK has been pressing the EU to agree on the easy bits of the trade deal to get momentum going.

Oil and Gold prices both rose as the dollar declined as US ISM Purchasing Managers Index jumped in August to 56 from 54.2 in July suggesting order growth.

Asia’s manufacturing sector showed signs of recovering from the region’s covid-19 lockdowns. The Caixin/Markit Manufacturing Purchasing Managers’ Index for China rose to 53.1 last month, the highest figure recorded since 2011, from July’s 52.8; a score of 50 or above indicates expansion. The equivalent indices for India and South Korea also rose.

Australia’s 28-year run without a recession has finally come to an end. Economists forecast that GDP shrank by 7%, quarter on quarter, in the three months to June, when much of the country was in lockdown. This marks the second successive quarter of contraction

IFS director: Tax increases may be required

Paul Johnson, director of the Institute for Fiscal Studies, has said Chancellor Rishi Sunak faces having to raise billions of pounds through tax increases if spending is not reduced in the autumn Budget.

Mr Johnson told the House of Commons’ Treasury Select Committee that if Mr Sunak opts to increase taxes, it is likely to be “a fairly substantial increase – that might be 2% of national income, for example”. He added that if increases are on the cards, policymakers “would have to look at the substantial taxes”, noting that close to two thirds of tax revenues come from NI, income tax and VAT and saying he would expect increases in those taxes “in the medium run”.

He also suggested there are “some arguments” for removing tax advantages for higher earners saving for their pensions. Philip Booth of the Institute for Economic Affairs said Mr Sunak could increase taxation while limiting the hit to economic growth by levying VAT on more goods and services. Mike Brewer, chief economist at the Resolution Foundation, does not expect tax increases in the next 12 months but told the committee that “wealth taxes on immovable sources of wealth” would be sustainable for decades.

Crunching the corporation tax numbers

The Telegraph’s Tim Wallace looks at corporation tax, saying that while the UK’s 19% headline rate is the joint-fourth lowest of any OECD economy, accounting for reliefs and allowances, the effective rate falls to 13.6%.

If other nations’ reliefs and allowances are also factored in, Britain places 25th in the table. Mr Wallace says that in regard to funds raised by corporation taxes, Britain pulls in the equivalent of 2.8% of GDP, just shy of the OECD average of 3%.

Elsewhere, David Smith in the Times looks at the potential impact of cutting corporation tax. He cites Mark Gregory, EY’s chief economist, who says that for foreign investors, “their ability to move tax liabilities [between different jurisdictions] means low corporation tax is of limited benefit.

Chancellor weighing Budget options

With Rishi Sunak said to be considering options to boost public finances in the wake of the coronavirus crisis, Larry Elliott in the Guardian says the Chancellor has four options for his autumn Budget: Cut taxes and raise spending; leave things as they are; take steps to cut the deficit immediately; and pre-announce future measures to raise taxes or cut spending.

Mr Elliott adds that another option would see a combination of these, such as providing short-term stimulus but outlining a future shift in taxation.

Whistleblower numbers climb

Analysis by UHY Hacker Young shows that there has been a 10% increase in the number of whistleblowing reports about potential tax evasion, with HMRC receiving 73,000 tip offs in the year to March 31 compared to 66,000 in the previous year. Tighter rules ensuring accountants and other advisers report all possible cases are believed to have contributed to the increase. Sean Glancy of UHY Hacker Young said: “It appears that more people than ever are choosing to report a neighbour, employer or business partner for tax evasion.”

Could Treasury plans hit tax-take?

Jeremy Warner in the Telegraph considers proposals reportedly being considered by the Treasury, including decreasing pensions tax relief, aligning capital gains and income tax rates, and raising the rate of corporation tax. He says policymakers must weigh up whether the plans would actually result in the additional £30bn a year suggested and questions if the overall tax-take would be damaged by consequent poorer rates of economic growth

Tax may be a licence fee alternative

The Guardian reports that the BBC has looked into whether the licence fee could be replaced with a special income tax. The shift would be based on a Swedish model of funding public service broadcasting, with Sweden having replaced its TV licence fee with a special tax, with the ring-fenced levy set at about half the cost of the previous licence.

Google to pass digital services tax onto advertisers

Google is passing on the costs of a new digital services tax to British advertisers by charging an additional 2% in fees from November 1.

The digital services charge, a 2% levy on revenues generated in the UK from search engines, social media websites and online sales by internet companies, is expected to make the UK £400m by 2021, and ultimately raise £500m per year.

Google said it will also charge advertisers in Austria an additional 5% to cover the costs of its digital services tax.

Ann Summers moots CVA

Lingerie chain Ann Summers is considering a CVA, with a spokesman saying the retailer has had constructive conversations with many of its landlords to ensure rental costs “are appropriate for the new market conditions”.

However, they added that this “has not been the case with all landlords”, prompting the firm to consider a CVA which would only affect stores where new terms have not been agreed.

Chief executive Jacqueline Gold told Retail Week: “We want to work in partnership with our landlords and our interests should be aligned. That’s why we, like many retailers, think turnover-based rents are the way forward.”

Debenhams sets bidding deadline for potential buyers

A deadline for potential buyers for Debenhams to make offers has passed. With administrator FRP Advisory reported to be aiming for a sale of the business by the end of the month, advisers at Lazard, the investment bank who are running the sale process, informed interested suitors that they needed to submit bids by 5pm yesterday. The Times reports that if no buyer is found by the end of this month, the company will start exploring other options that could put 14,000 jobs in jeopardy, although it is understood that liquidation remains a last resort.

Law firms launch new round of cost cuts as pandemic bites

With law firms cutting costs in the wave of COVID-19, Giles Murphy at Smith & Williamson says activity levels are likely to fall and expensive staff “may be at risk”.

Don’t let Covid-19 bust your business!

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

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

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

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

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

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

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

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

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

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

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

Do you sell on credit?

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

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

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

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

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

About CPA

The Credit Protection Association can help!

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

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

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

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

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

Why use a third party collector?

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

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

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

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

Can they help your particular type of business?

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

Debt collection agencies are not all alike.

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

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

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

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

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

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

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


Ready to speak to an advisor?

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

Call us today

0330 053 9263

CPA is passionate about late payment

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

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

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

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

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

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