Late payments due to SMEs increase – business news 27 July 2020.

22 July 2020.

James Salmon, Operations Director.

Late payments due to SMEs increase, treasury in talks over bad debt, SMEs in danger of insolvency, access to support remains a struggle, retail rebounds, a 4 day week, job cuts, and lots more business news.

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

Late payments due to SMEs increase 20-25%

Research by Intuit QuickBooks suggests small businesses have seen a 20-25% increase in overdue payments since the beginning of the pandemic. SMEs were chasing £50bn in late payments before the outbreak started.

UK Treasury and banks in talks on coming wave of bad Covid debt

The FT reports that the Treasury is in talks with banks about an industry-wide plan to help tackle the £16bn in bad debts expected from the “bounce back” loans scheme. The Times says the Chancellor is understood to be reluctant to write off the debt as it would be unfair on those businesses that struggled on without loans. The Federation of Small Businesses has suggested that repayment conditions should be relaxed. Mike Cherry, national chairman of the federation, said: “A guarantee that they won’t have to start making repayments until they’re turning a profit would give them the confidence to invest and hire today, rather than further down the line, when [it] may prove too little too late.”

SMEs in danger of insolvency

Commenting on small businesses cutting jobs as the furlough scheme winds down, Douglas Grant, Director of Conister Finance & Leasing Limited, said: “Sadly today’s data from the Federation of Small Businesses is unsurprising and only the beginning of what is to come. 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. UK SMEs are not just the lifeblood of the economy – it is where innovation and creativity happens. For many years alternative lenders have worked alongside larger more traditional clearing banks, offering vital liquidity through tailored and flexible lending solutions to SMEs. 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.

“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. It is imperative that SMEs have a tripartite level of support from Government, alternative and traditional lenders working together to identify and protect the more resilient sectors such as infrastructure, technology and renewables, ensuring their existence guaranteed. This is where alternative lenders that understand the characteristics of specialist SMEs and with the flexibility they offer, empower their staff to make judgement calls on capital requirements often in the infancy stage of lending, can provide the additional support and natural lending progression alongside the larger clearing banks. Larger clearing banks, already under pressure from mortgage lending, will not be able to keep the UK SME sector alive by themselves.”

Access to Covid support funding remains a struggle

The Telegraph’s Marianna Hunt reported on Saturday on the difficulties small businesses have had accessing Covid support loans. High street banks are refusing to sign up new business accounts, leaving SMEs unable to access funding as they bank with smaller lenders that are not able to offer the bounce back loans. Kevin Hollinrake, a Conservative MP and co-chairman of the All Party Parliamentary Group on Fair Business Banking, said: “We’ve been encouraging small firms to shop around and use start-up lenders, and many have done so. But now they are being punished for it. It’s not right.”

UK retail sales and services rebound in June

New data from the Office for National Statistics (ONS) show sales volumes rose by 13.9% in June compared with the month before, bringing total sales across the country close to last year’s levels. Helen Dickinson, chief of the British Retail Consortium, said: “Though a month of growth is welcome news, retail is not out of the woods yet. The pandemic continues to pose huge challenges to the industry, with ongoing store closures and job losses across the UK.” Separately, the IHS Markit/CIPS UK composite purchasing managers’ index jumped to 57.1 in July from 47.7 in June. The manufacturing reading rose to 53.6, up from 50.1, and services rose from 47.1 to 56.6. Chris Williamson, chief business economist at IHS Markit, said: “The surge in activity in July will fuel expectations that the economy will return to growth in the third quarter after having suffered the sharpest contraction in modern history during the second quarter

Call for four-day working week to boost economy

The left-wing think tank Autonomy suggests moving to a four day working week would help boost Britain’s ailing economy. The Government would cover the cost of the lost fifth day with a “Short Working Time Subsidy Scheme” with workers encouraged to use their extra free time spending money. The scheme, which would cost over £20bn a year, has been backed by union Unite and Norwich Labour MP Clive Lewis. Will Stronge, Director of Research at Autonomy, said: “Instead of propping up an already failing economy, the government could act to save jobs and create more desirable working patterns for the future.” But Matt Kilcoyne of the Adam Smith Institute believes this “is not a vision many people should be enthused by,” adding that the Government should not prop up failing businesses.

Small businesses cut jobs as furlough scheme winds down

A report by the Federation of Small Businesses (FSB) shows that, despite the Government’s furlough scheme, 23% of small UK businesses have cut jobs in the last quarter. The FSB also found that more than one in five respondents said they expected their performance to be “much worse” over the coming quarter, while about one in eight predicted improvements. FSB chairman Mike Cherry said: “The majority of small business owners have benefited from the Government’s emergency support measures but many have not. We need to see the Treasury outline how it intends to support those who have been left out.” Separately, the Telegraph reports that MakeUK, the manufacturers trade body, has found 46% of British manufacturers are planning to rely more on UK suppliers in future, which may help to offset the loss of jobs currently underway.

UK recovery could take four years

It could take another four years for the UK economy to return to pre-pandemic levels, the EY Item Club says, pointing to evidence that consumers are sticking to habits learned during the lockdown period. The forecasters predict that output will shrink by 11.5% this year, well below previous expectations, while unemployment will more than double to hit 9% by the end of the year. Howard Archer, economist at EY Item Club, blamed “much more pronounced” consumer caution. “The UK economy may be past its low point but it is looking increasingly likely that the climb back is going to be a lot longer than expected.”

Over 31,000 Yorkshire firms in distress

Begbies Traynor ‘s most recent Red Flag Alert research shows over 31,000 Yorkshire firms were suffering from financial distress in the second quarter of this financial year, up 8% on Q2 2019. Julian Pitts, Begbies Traynor’s regional managing partner for Yorkshire, warned that the more severe effects of the pandemic were unlikely to become apparent until the third quarter of the financial year.

NatWest accounts closed after applications for loans

Several small business customers who applied for government-backed loans to help them get through the pandemic have had their accounts suspended or closed by NatWest, the Guardian reports. The paper says it is not clear how many accounts have been closed following bounceback loan applications but a NatWest spokesman stated: “Investigations confirm that the reason for closing these specific customers’ accounts is valid.”

HMRC to consult on uncertain tax planning

The Chancellor is considering making it compulsory for big businesses to alert the taxman when they have used their own interpretations of the rules to pay less corporation tax, VAT, excise duty or other taxes. Rishi Sunak has asked HMRC to launch a consultation on the practice known as “uncertain tax planning” after learning that it loses the Treasury £6.2bn each year – equal to 18% of total uncollected taxes. Chris Sanger, head of tax policy at EY, commented: “Taxpayers will have to understand the thinking of the tax inspector, and do a bit of mind-reading. That’s a new burden.” Mike Warburton, former tax director at Grant Thornton, added: “If the law is uncertain, then they should change it to make it clear. It’s a basic human right for people and companies to know how they will be treated by the Government and its agencies.”

CGT reforms prompt business owners to change plans

Fears over possible changes to the tax regime have led small business owners to consider selling up or even leaving the country to avoid a hike to capital gains tax. Lord Leigh of Hurley, co-founder of Cavendish Corporate Finance, which advises on mergers and acquisitions, said a number of entrepreneurs had been calling him to say that news of a Treasury review into CGT has prompted them to “capitalise a bit earlier than they had otherwise planned if they possibly can.” Lord Leigh added that the Chancellor “needs to encourage entrepreneurs to get us out of this mess […[ If you want someone to start a business, you’ve got to give them an incentive to do so.” Chris Etherington, a private client tax partner at RSM, said: “I’ve already had people saying to me that if capital gains tax went up in line with income tax, then they would want to leave the country [for tax purposes].”

Commonwealth entrepreneurs should be able to register firms in the UK as “e-citizens”

The Prime Minister’s former business adviser James Sproule has called on Boris Johnson to allow entrepreneurs across the Commonwealth to register firms in the UK as “e-citizens”, as part of Mr Johnson’s push for a Global Britain. In a report published by the Centre for Policy Studies think tank, Sproule says the move would help entrepreneurs in developing countries draw investment directly while British investors would be given an opportunity to gain the “higher returns” available in developing countries, knowing that their investments would be protected by UK law.

Covid-19 general news

As the number of confirmed cases of covid-19 globally hit 16m, with nearly 650,000 fatalities, the World Health Organisation warned that there will be no return to the “old normal”.

The UK Government added five new countries (Slovenia, Slovakia, Latvia, Estonia and St Vincent and the Grenadines) on Friday to its list of countries people from England can travel without needing to quarantine on return, but has left Portugal off. It had been widely expected that the Iberian nation would be added to the “travel corridor” list, having been snubbed when the initial list was released three weeks ago. Then over the weekend, removed Spain from the list and re-instated the need to quarantine after a trip to the popular holiday destination. Dominic Raab has defended the government’s decision to scrap its travel corridor with Spain at short notice, saying that “we took the decision as swiftly as we could”.

Britain itself, meanwhile, announced it would pause reporting on Covid-19 deaths while it reviews how they are calculated

Florida became the third American state to record more than 400,000 cases of covid-19. With American cases surpassing 4 million

China reported earlier its highest number of covid-19 cases in three months, part of a worrying swell of second and third-wave infections that are hitting Asia and Europe.

Music venues get £2.25m rescue

The Government is to pay the rent and bills of roughly 150 music venues at severe risk of insolvency as part of a COVID-19 support package for the arts. Grants of up to £80,000 will also be available to help struggling venues around the country, the Sunday Times reports.


Markets closed the week on Friday heavily in the red with the FTSE down 1.4% and the eurostoxx 50 fell 1.8%. US stocks fell too with the NASDAQ down 0.9% and the S&P down 0.6%. Markets were spooked by the unrelenting spike in Covid cases, high unemployment figures coming out of the US and the heightening of tensions with China.  The dollar continues to tumble while the pound retains its strength despite the poor showing in the Brexit negotiations.

Oil crash halves North Sea tax take

The Office for Budget Responsibility (OBR) has warned that North Sea tax revenues will almost halve due to the crash in oil prices triggered by the pandemic. The OBR predicts the Treasury will receive £400m from oil and gas projects in 2020-21, down from £700m forecast in the March Budget.

Treasury set for radical shake-up

The Treasury will undergo a transformation under Boris Johnson and the Chancellor, Rishi Sunak, with plans already in motion to bring in a venture capitalist-style approach to projects to speed up delivery. In a speech on Tuesday, Steve Barclay, the Chief Secretary to the Treasury, will outline how the Treasury will become the “new radicals” and welcome a team of analysts and developers from Silicon Valley firms to refresh the orthodoxy. Mr Barclay will point to the speed at which policies were delivered during the height of the coronavirus pandemic, and say: “If the wheels of Government can be made to spin this fast in a crisis with all the added pressures of lockdown, why can’t it happen normally?”

Politicians call for clean-out of foreign influence in the City

Senior MPs are calling for new laws requiring bankers, lawyers, accountants and lobbyists to publicly disclose work carried out for politically connected actors as part of efforts to limit foreign influence in British politics. Neil O’Brien, a member of the China Research Group of MPs, said the state should also have powers to block firms from assisting certain individuals. “There’s no disincentive to take the money at the moment if you are a lawyer or PR firm in London,” he added.

Regret over burdensome extra costs of MTD

HMRC’s decision to roll out its Making Tax Digital programme to all VAT-registered businesses, regardless of turnover, from April 2022, and landlords and unincorporated businesses with income above £10,000 from April 2023, will add hundreds of pounds of fresh costs, the Sunday Telegraph reports. HMRC said it was seeking to reduce “avoidable mistakes” in tax returns, which it said had cost the Exchequer £8.5bn in the 2018-19 tax year. But John Stewart of the National Residential Landlords Association, said many small businesses had seen no improvement in mistakes after using the software required. Tina Riches of the Association of Taxation Technicians, was wary of HMRC claims that the average transition cost for MTD for VAT would be just £109 per business. According to an ATT survey, 45% of respondents calculated that they had costs of between £109 and £500, with 12% spending more than &pou nd;5,000. Elsewhere, MHA MacIntyre Hudson said compliance costs would be proportionately greater for small traders than larger businesses while Dawn Register of BDO said the timing was concerning: “To focus on this during a looming recession and given imminent Brexit preparations for some business, we do expect the timetable to raise eyebrows.”

Rishi Sunak mulls online sales tax

A new online sales tax is being considered by the Chancellor as a means to provide a “sustainable and meaningful revenue source for the Government” and avert a collapse of the high street. In a call for evidence published last week, the Treasury said that the coronavirus crisis “has had a significant impact on how business is done” and that the Government must act to make sure that “the tax system raises sufficient revenue”. Two proposals are being looked at: a 2% tax on goods sold online and a mandatory charge on consumer deliveries. A plan to abolish business rates and replace them with a “capital values tax” – based on the value of land and the buildings on it – is also being considered, according to the Times. This levy would be paid by the owner of the property rather than the business leasing it.

Hammond: Government shouldn’t rule out a wealth tax

The former Conservative chancellor Philip Hammond has said although he was wary of the knock-on effects of a wealth tax the Government should not rule it out. The Sunday Times reports Hammond as saying: “A structural change will be necessary to deal with the impact of COVID-19.” However, he warned that capital would leave the country the moment the Tories looked serious about introducing a wealth tax. Elsewhere in the paper, Andrew Summers, an associate professor at the London School of Economics, talks about his work with the Wealth Tax Commission, which is drawing together data to better inform debate on the issue. “We will present a range of potential models for a UK wealth tax and what they could raise,” Summers said. “But we won’t make any recommendations on rates and thresholds. That’s for politicians.”

Over-40s may be taxed to pay for social care

The Guardian reveals that ministers are seriously considering imposing a new tax on the over-40s to pay for old age care. Such schemes operate in Japan and Germany which are widely praised for their social care provision. Matt Hancock, the health and social care secretary, is said to be a keen advocate of the plan. Sources tell the paper there is a “renewed urgency” in Downing Street to come up with a solution. Meanwhile, the Local Government Association and more than 30 organisations have called for a “complete reset” of social care in the wake of the coronavirus pandemic. James Jamieson, the LGA chairman, said: “The COVID-19 crisis has proved we need a complete reset, not a restart, when it comes to the future of social care. It is more important than ever that we find a long-term and sustainable solution.”

Self-employed given 90 days to come clean on support

After HMRC received tip-offs that some workers may have overclaimed under the Self-employed Income Support Scheme (SEISS) the Treasury has given itself sweeping powers to issue penalty charges against people who may have claimed too much COVID-19 support. The scheme provided a taxable grant worth up to 80% of average profits for a period of three months, capped at £7,500. HMRC said there had been 2.7m claims worth more than £7.7bn in support. The Finance Bill, published on Wednesday, grants a 90-day amnesty period to self-employed workers, after which those who have overclaimed would face fines on a sliding scale of between 30% and 100%. Fiona Fernie, a partner at Blick Rothenberg, says: “HMRC has made it clear that they are receiving a large number of calls in relation to the scheme, although it does not specify whether those calls are anonymous tipoffs, or people who fear they have claimed incorrectly ringing for advice, or a mixture of the two. It is likely that those calls are one of the principal factors prompting the publication of the guidance.”

Women still peering at glass ceiling

New research by Pinsent Masons has found that there has been little progress in hiring and promoting more women at senior levels within financial services firms. A review of more than 4,000 individuals taking up senior roles at financial services firms in the year to March 31 found that around 830 were women and 3,200 were men. Elizabeth Budd of Pinsent Masons said: “More financial services firms are taking steps to improve gender diversity at top levels but the pace of change is still very slow.”

Lack of childcare leaves female workers vulnerable

Following a report from the Office for National Statistics last week showing that parents were nearly twice as likely to be furloughed as those without children, while women spent an average of an hour longer each day on childcare duties than men during lockdown, a survey shows how half of working mothers are unable to access the childcare they need to return to work. Joeli Brearley, the founder of the campaign group Pregnant Then Screwed, which carried out the survey, said: “The needs of working mothers have been completely ignored during this pandemic and, as many others have warned, we are now seeing that they are the first to go when jobs are cut – mothers are the sacrificial lambs for the economy contracting.” Sian Elliott, the women’s equality policy officer at the TUC warns that women are particularly vulnerable when the furlough scheme comes to an end. “We are looking at the rev ersal of decades of progress in women’s equality in the workplace, a widening of the gender pay gap and the gender pension gap – we are just storing up huge problems for the future,” she said.

HMRC demands VAT be charged on non-household waste

HMRC has asked local authorities to charge 20% VAT for fees to drop off non-household waste at rubbish tips. Buckinghamshire County Council has been told to charge VAT from August 1, increasing the cost of disposing of a shed from £17.50 to £21, while the cost of disposing of a door or toilet will rise from £10 to £12. The council said it had previously not been charging VAT due to conflicting advice from its finance and legal departments. The paper notes that some other councils have included VAT in their prices. Richard McIlwain from charity Keep Britain Tidy said he is “concerned that imposing charges for certain wastes at household recycling centres presents a barrier to recycling and could encourage fly-tipping.”

Labour calls for probe into Sports Direct wages

The shadow secretary of state for employment rights, Andy McDonald, is to ask HMRC to investigate pay levels at Sports Direct, which has been rebranded as Frasers Group, after the Guardian published findings of an undercover investigation into working conditions at the company’s warehouse in Shirebrook, Derbyshire. The paper found that workers were required to spend their 30-minute unpaid breaks on the warehouse premises, with law experts claiming this could mean that the workers should be paid for this time. The Guardian previously exposed how Sports Direct was breaching minimum wage law at its warehouse in 2015 leading to the company paying workers £1m in back pay.


Rules to stop slavery need tightening, argues commissioner

Dame Sara Thornton, the independent anti-slavery commissioner, has called for tougher sanctions for businesses that fail to tackle the exploitation of workers in their supply chain. Her comments come after revelations of mistreatment of workers in the textile industry. Dame Sara said no businesses had so far been censured under the Modern Slavery Act in the five years since the legislation was introduced.

Now’s the time to switch to a company structure

Analysis by digital mortgage broker Habito indicates that landlords who own properties in their own name would save hundreds of pounds a year in tax if they owned their homes through a company instead. Changes to the tax regime has made owning properties via a company more attractive, the Telegraph’s Adam Williams says, given its more generous tax rules, but moving properties into a company can incur both stamp duty and capital gains tax. However, the new stamp duty break means that landlords can transfer properties at lower cost than before.

Baird Group in last-ditch talks with creditors

Baird Group has filed for a CVA. Howard Smith, associate partner at KPMG and proposed joint supervisor of the CVA, said Baird Group’s heavy reliance on concession partners had contributed to its troubles.


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

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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