business news 7 August 2020.

7 August 2020.

James Salmon, Operations Director.

BoE warns lenders not to turn off credit taps, Governor backs ending furlough, more support needed for local lockdowns, slump not as bad as predicted, covid-19, markets, and a lot 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.

BoE warns lenders not to turn off credit taps

The Bank of England has argued that banks should keep lending or risk tipping the country into a worse slump. The warning comes amid concern the lenders could be tempted to turn off the credit taps this autumn in order to conserve capital. Threadneedle Street says businesses face a £200bn cash shortfall and require financial support. The Bank said: “While the number of corporate insolvencies has remained low to date, insolvencies are likely to increase. Some companies were vulnerable at the outset of the pandemic, and may become insolvent as a result of the shock.” It continued: “Others may face challenges to their long-term viability given structural change in the economy, some of which may have been accelerated or precipitated by the pandemic.” The BoE has also called for an inquiry into the resilience of markets and investors after they demonstrated a heavy reliance on extraordinary central bank support.

Andrew Bailey backs end of furlough scheme

The Governor of the Bank of England, Andrew Bailey, has backed the Government’s decision to end its furlough scheme in October telling the BBC that it was important that policymakers helped workers “move forward” and not keep them in unproductive jobs. Mr Bailey said: “It’s been a very successful scheme, but [the Chancellor, Rishi Sunak is] right to say we have to look forward now. I don’t think we should be locking the economy down in a state that it pre-existed in.” In its latest Monetary Policy Report, the Bank said unemployment is expected to almost double from the current rate of 3.9% to 7.5% by the end of the year as government-funded support schemes come to an end. Workers are likely to see their pay frozen while in many cases “bonuses have been scaled back or withdrawn altogether for this year.”

UK business presses for more support on local lockdowns

Business groups including the CBI and the FSB are calling on more support for businesses hit by local lockdowns, including extending the furlough scheme and help with planning.

BoE expects pandemic slump will be less severe than expected

The Bank of England has predicted the economic slump caused by COVID-19 will be less severe than expected, with a faster easing of lockdown measures and a “more rapid” pick-up in consumer spending helping the economy rebound faster than it had assumed in May. The Bank expects the UK economy to shrink by 9.5% this year – not as severe as its initial estimate of a 14% contraction. The UK economy is expected to grow by 9% in 2021, and 3.5% in 2022, and forecast to get back to its pre-Covid size at the end of 2021. The Bank held interest rates at 0.1%. The Monetary Policy Committee said it would not even think about raising interest rates until there was “clear evidence” the recovery had taken hold. Ruth Gregory, an economist at Capital Economics, expects the Bank to keep interest rates at 0.1% “or below” for “at least five years”.

Banks limiting branch use as pretext for closures

The Times’ Andrew Ellison claims UK banks are using the coronavirus crisis as an excuse to close more branches. He says reasons given for maintaining limited opening times don’t hold water and he suspects the real motive is a desire to shift more customers onto digital services. But many, says Ellison, particularly the elderly and small business owners, rely on their local bank. “If banks really had their customers at heart, they would be back working nine to five.”

High street recovery remains a long way off

UK Retail Sales continued to fall in July despite the reopening of non-essential stores, dampening hopes of a quick bounce back on the high street. BDO ‘s High Street Sales Tracker shows in-store like-for-like sales fell 39.4% last month, compared to a gain of 0.1% a year earlier. Sophie Michael, head of retail and wholesale at BDO, said further job losses were predicted and that “recovery still looks a long way off”. She added: “The high street is crying out for a confidence boost but with the full impact of coronavirus on the UK economy yet to be realised, uncertainty will prevail for the foreseeable future.”

UK construction sector reports sharpest rise in almost five years

The IHS Markit/CIPS construction purchasing managers’ index rose to 58.1 last month from 55.3 in June, slightly above economists’ forecasts. The figures indicate a sharp rebound from April’s record low of 8.2, but despite the optimism, construction companies are shedding jobs at one of the fastest rates since the global financial crisis.

Covid-19 general news

Global cases passed the 19 million mark yesterday. Deaths passed 713,000.

A large proportion of U.K. health-care workers may have been infected with coronavirus early in the pandemic, according to a survey. About two-thirds of the National Health Service workers surveyed reported diminished ability to taste or smell — one of the prominent, early symptoms of Covid-19 — just weeks after the virus arrived in the U.K., according to the Lancet

A new study here in the U.K. showed infections continued to decline in June and July, indicating no impact from the decision to start easing lock-downs

Bank of England governor Andrew Bailey has warned that “some parts of the economy” will not be “viable” after the coronavirus pandemic. He also backed the government’s move to end the furlough scheme in October. He said “we have to look forward”. Bailey was speaking to broadcasters after the Bank kept interest rates on hold at 0.10%, a record low.

Reportedly France is next on the list of countries to be hit by travel restrictions by the Government. Chancellor of the Exchequer Rishi Sunak warned there is “always the risk of disruption to travel plans” and said the situation for tourists planning to go to France is “tricky.” Belgium, Andorra and The Bahamas were added to the quarantine list late Thursday — meaning all passengers arriving in the U.K. from these areas will need to isolate for 14 days.

India reported a record number of daily coronavirus cases, pushing the total in the country to above two million

The rise in coronavirus infections in Germany is a threat to the recovery in Europe’s biggest economy, according to a government minister.


The pound strengthened against most currencies yesterday after the Bank of England voted unanimously to keep both asset purchases and interest rates unchanged, whilst improving its “indicative projection” for growth in the UK economy following government measures to ease the impact of covid-19. The strengthening of the currency impacted on the overseas earning driven FTSE 100 pushing it 1.27% down to 6026.94. The Eurostoxx 50 by comparison fell 0.86% as hopes of progress on a fresh US stimulus bill began to fade and investors focused on the pace of the jobs recovery across the pond.

The markets turn into mild risk-off mode in Asia, after US President Donald Trump stepped up the tech war with China, by banning TikTok and WeChat. Commodity currencies are generally lower as lead by Australian Dollar. On the other hand, Dollar and Yen strengthen broadly. Sterling is at  1.3085 USD and 1.1075 Euros.

Negotiations on a virus relief package for the U.S. ended Thursday night with the White House and Democrats making no headway on resolving their biggest differences, as they remain “very, very far apart on some significant issues.”,  bringing the talks to the brink of collapse.

US Jobless Claims came in at 1.2 million last week, a better-than-expected figure that will fuel hopes that the US economy’s recovery will not be derailed by coronavirus cases. Initial jobless claims came in at 1.19m, down from 1.44m a year earlier, the Labor Department said. The weekly total was much better than the 1.42m figures economists were expecting.

In Asia, Nikkei closed down -0.39%. Hong Kong HSI is down -1.69%. China Shanghai SSE is down -0.67%. Singapore Strait Times is down -0.64%. Overnight, in the US the  S&P 500 rose 0.64%. and NASDAQ rose 1.00% to 11108.07, another record.

Oil prices hovered near five-month highs yesterday  supported by a weak US dollar and falling crude inventories which counteracted bearish sentiment about demand. Gold continued its rise hitting a new high as the global outlook and weak dollar pushed up the price of the safe haven asset.

Business rates appeals rocket by nearly 700%

Figures from the Valuation Office Agency show business rates appeals surged by 690% over the past quarter as property owners claimed values had been slashed in the face of the coronavirus lockdown restrictions. Government data show 144,910 shops, pubs, restaurants, offices, factories and public sector buildings filed appeals in the three months to June. This compared with just 18,340 checks reported over the same period last year. Experts say the “tsunami” of challenges would cause a 17-year backlog if appeals are dealt with at their current rate.

Amazon provokes fury as it dodges new online tax

Amazon’s decision to pass on the cost of the UK’s digital services tax to small businesses selling on its platform has led to dismay from vendors. The tech giant will raise the price British firms pay to sell on its website by 2% next month. Federation of Small Businesses chairman, Mike Cherry, said: “Government and Amazon should work together to find a way to resolve this impasse and prevent millions of pounds of extra costs being imposed on the small firms who are only just starting to recover from the biggest crisis for generations. The tax is aimed at the profits of multinationals with large revenues. Passing the tax on to their small business customers will hurt them at the worst possible time.” Derek Cribb, chief executive of the Association of Independent Professionals and the Self-Employed, said: “Amazon could easily have absorbed the cost of the digital sales tax.” Meanwhile, Amazon chief Jeff Bezos has sold shares worth more than $3.1bn as part of a funding plan for his rocket company, Blue Origin.

Travelex cuts more than 1,300 UK jobs in rescue deal

Foreign exchange provider Travelex will shed more than 1,300 UK jobs as part of a rescue deal to stay afloat. PwC orchestrated a pre-pack sale of certain UK entities, which have been bought by a newly created company controlled by its lenders, saving 1,800 jobs across the country. Toby Banfield, joint administrator at PwC, said: “The completion of this transaction has safeguarded 1,802 jobs in the UK and a further 3,635 globally, and ensured the continuation of a globally recognised brand. Unfortunately, as the majority of the UK retail business is no longer able to continue trading, it has regrettably resulted in 1,309 UK employees being made redundant today.”

Trump team outlines plan to crack down on US-listed Chinese groups

The US has issued proposals which will force Chinese companies to delist from US stock exchanges unless they comply with US accounting standards and provide access to their audits.

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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See all our latest news here!

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Debt Recovery: It’s Easier Than You Think!

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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