Recovery Slows and Consumer lending falls – business news 10 August 2020.

10 August 2020.

James Salmon, Operations Director.

The recovery slows, consumer lending falls steeply, company directors forgotten in relief efforts, job cutting predictions, GDP down a fifth and UK to suffer the worst hit of majors plus lots more business, covid-19 and market 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.

Recovery slows as economy heads for recession

Business output rose for the third consecutive month in July, spurred by the lifting of lockdown restrictions, However, BDO’s index rose by 6.7 points to 73.2 in July – less than the 11.16 points added in June – indicating that the pace of recovery is slowing as the economy prepares to enter recession. Kaley Crossthwaite, a partner at BDO, said: “The latest data suggests we might be approaching a plateau in our economic recovery. While the reopening of the hospitality sector has provided a much-needed uplift, the capacity restraints caused by social distancing, as well as pressures on UK manufacturers imposed by weakened overseas demand mean this growth is likely to continue to slow.”

Consumer lending set for steepest ever fall

Banks are expected to lend 15.9% less to consumers via personal loans and credit cards this year, according to EY Item Club, the steepest slowdown in lending since records began in 1993.

Business lending is forecast to grow 14.4% this year compared with 2019 – the biggest rise in 13 years, while mortgage lending is predicted to rise 2.6%, the slowest increase in five years.

Omar Ali, UK financial services managing partner at EY, said: “With a weakened economy, banks face increasing write-offs on all types of lending and, with slow growth for consumer credit forecast, this will add pressure to their profitability and ultimately their ability to lend more to businesses to help kick start growth.”

The “forgotten” company directors desperate for coronavirus relief

The Sunday Times reported on the plight of the “forgotten” limited company directors who have been left out of Government coronavirus support programmes for workers. The main reason given for not providing a bespoke support scheme is that HMRC cannot ascertain from tax returns whether dividends taken were in lieu of salary, rather than a return on capital or investment.

Another reason is that directors often use limited companies to cut their tax bills. “There were suggestions that they are involved in some sort of tax avoidance and it’s now time for them to pay back their ill-gotten gains,” said Tim Stovold, tax partner at Moore Kingston Smith. “A more helpful tone would be to recognise that for businesses to rebuild, they are going to need to be agile, and having a large volume of skilled freelancers who can be engaged on projects and released without obligation later is essential.”

Craig Beaumont, external affairs chief at the Federation of Small Businesses, adds: “As the government’s schemes end, directors and others excluded from support are trying to survive any way they can. We want to see a rescue package aimed at this group so they can contribute to the economic recovery.”

One tenth of small businesses will have to cut jobs

Almost half of small businesses say they will have to cut wages or jobs to help them survive the coronavirus crisis, according to employee benefits group WorkLife. Some 10% said they will have to cut jobs, while 12% said they will cut salaries. The survey also found 23% had ruled out wage increases for at least six months.

One in three employers expects to cut jobs

A survey of 2,000 employers by human resources body the CIPD and Adecco Group has found one in three employers plans to cut staff this quarter with almost 40% of private companies expecting to make layoffs. “Until now, redundancies have been low – no doubt due to the Job Retention Scheme – but we expect to see more redundancies come through this autumn, especially in the private sector once the scheme closes,” said Gerwyn Davies, senior labour market adviser at the CIPD. “This will likely be accompanied by a pay squeeze for workers, which is actually to be welcomed to help preserve jobs. This looks set to be a sombre autumn.” Separately, figures from the Insolvency Service show over 139,000 jobs were lost in June, with the number of firms cutting 20 or more roles during the month up fivefold compared to last year, rising to 1,778.

More firms planning mass redundancies

Notifications made to the Government indicate that the number of companies planning 20 or more redundancies by June rose more than fivefold compared to the same month in 2019.

A total of 1,778 firms submitted plans to cut more than 139,000 jobs in England, Wales and Scotland during the month compared with 345 firms which notified plans to cut 24,000 jobs the year before. The figures from May and June show a substantial increase from the same months the previous year, and from March and April, when the coronavirus lockdown began.

Tony Wilson, director of the Institute for Employment Studies, said: “I would expect it to be bigger in July and bigger again in August, because there was a wave of firms that announced redundancies in the first week of July and the first week of August. I think it is inevitable now that redundancy numbers will be higher than they were at the peak of the last recession in 2008.”

Britain’s GDP shrinks by a fifth

Figures from the Office for National Statistics this week are expected to show the UK economy shrank by 20% in the second quarter, the biggest three-month fall on record. This follows a 2.2% fall in the first quarter and puts Britain into a technical recession. The UK’s reliance on services means its economy will likely be hit harder than any other advanced nation. Spain has recorded an 18.5% drop while the US registered a 9.5% fall.

UK expected to suffer most severe Covid hit of any major economy

Forecasters are predicting official figures released this week will show the UK economy suffered the worst impact from the coronavirus pandemic of any major advanced economy. Statistics are expected to show a 21.3% collapse in output between April and June resulting in a first half loss of 23% of GDP following a 2.2% hit in Q1. David Page, senior economist at Axa Investment Managers, said: “It is going to be the worst quarter that anybody has ever seen.” Looking ahead, Fabrice Montagne, chief UK economist at Barclays, warned that “fears of unemployment when policy support is phased out will likely act as a drag” on consumer spending in the autumn, slowing a predicted 18% bounceback in the current quarter.

FSB urges councils to release £1.5bn in small business grants

Local councils in England are being urged to distribute an estimated £1.5bn in unspent small business grants by the Federation of Small Businesses (FSB), whose research reveals only 7% of all councils have issued 100% of the cash earmarked for the discretionary grant fund or the small business grants fund. “Every local authority will know that long before this crisis struck, small firms were already facing huge difficulties with major chains leaving high streets, rising business rates and soaring employment costs,” said the FSB’s national chair Mike Cherry. “This is why councils simply cannot afford to delay in getting these funds out to businesses. Many councils have already handed out more than 90% of their small business grants which is good to see, but that means that more money remains which needs to be handed out.”

The Federation of Small Businesses is urging local authorities to hand out unclaimed coronavirus funding worth £1.5bn before it is returned to the Treasury. Over £12bn was given to councils in March to distribute to small businesses in England at the start of the pandemic. The Local Government Association wants more time to ensure that eligible businesses can be reached.

House prices surge to all-time high

House prices rallied to the highest levels on record in July as months of pent-up buyer demand was released. Prices saw an uptick for the first time since the lockdown began, according to the latest Halifax house price index, growing on average 1.6% after months of downturn. This brings the price of the average UK home to £241,604 – up 3.8% on last year despite the decline in the first half of 2020. But experts warn the recovery may be short lived as the furlough scheme nears its end and fears of the health of the economy loom. Some 63,250 homes were bought and sold in June, a rise of 31.7% from May following the Government’s lifting of lockdown measures and the introduction of the stamp duty cut. Meanwhile, Knight Frank found since the stamp duty holiday came into effect, the number of offers accepted on properties has jumped. For those valued under £1.5m, the number of deals closed was 146% above the five-year average, whilst the number of new prospective buyers registering to purchase properties under £1.5m was 100% higher.

New planning consultation paves way for small business construction boom

The Federation of Small Businesses has welcomed the Government’s consultation on planning laws saying proposals to streamline approval will bring welcome relief to small building firms. The FSB’s Policy and Advocacy Chair, Martin McTague said: “The current planning process is slow, complicated and far too cumbersome, putting small construction firms off building applications.”

Post-coronavirus, 250,000 over 50s may never return to work

According to a study by the Centre for Ageing Better, a charity, and the Learning and Work Institute, a research centre, a quarter of a million over-50s could fall permanently out of work after being made redundant during the coronavirus pandemic.

The research asserts that, because job schemes and recruitment are skewed in favour of younger workers, older staff were far less likely to return to work after a redundancy.

Anna Dixon, of the Centre for Ageing Better, said: “Without action, we could see many in their 50s and 60s falling out of the workforce years before their state pension age.” Meanwhile, analysis of ONS data by jobs site Rest Less suggests women will be hardest hit, with nearly 40,000 women aged between 50 and 64 dropping out of the workforce since the pandemic began, with their age group the only one not to witness an increase in economic activity.

Stuart Lewis, of Rest Less, said: “In the last recession, women could retire at 60. Today, it is 66. Losing their job will force them into an early retirement many cannot afford.”

Sunak refuses to rule out extending furlough scheme

The Chancellor has declined to rule out extending the furlough scheme should the UK be hit with a second wave of COVID-19. Rishi Sunak previously ruled out an extension but appeared to soften his stance on Friday, telling the BBC that it was not something the Government wanted to see happen. He later told Sky News that extending the scheme indefinitely was “not fair to the people on it,” adding: “We shouldn’t pretend there is, in every case, a job to go back to.” The Chancellor also urged more people to return to the office, adding it would be “good for businesses and good for people”. The Mail’s Maggie Pagano commented on Saturday on the furlough dilemma facing Mr Sunak, arguing that creating new jobs is arguably more important than saving them. She suggests generous tax incentives should be used to incentivise investment in SMEs while taxes paid on equity should also be reduced to help companies convert debt to equity.

Residential landlords cheating taxman out of £1.7bn

Research by Tax Watch has found that tax evasion by residential landlords could be costing the Treasury up to £1.7bn a year – three times higher than the £540m reported by HMRC for 2010. The think tank claims the revenue is being lost because many landlords fail to declare their income on self-assessment forms. The group cites research by the University of Warwick that found a quarter of landlords who filed self-assessment tax returns failed to report 60% of their property revenue. Tax Watch recommends the establishment of a UK-wide landlord database to stem the losses.

Covid-19 general news

Global cases reach 19.8 million and deaths pass 731,000

Britain announced the highest number of new positive tests recorded on a single day since June spiking fears of a second wave.

British regulators recalled up to 750,000 unused covid-19 testing kits made by Randox, a Northern Irish biotech firm, after finding that they failed to meet technical standards.

Italy and the U.K. reaffirmed plans to reopen their schools in September. Prime Minister Boris Johnson is facing widespread calls to boost coronavirus testing and tracing in order to safely reopen schools to all pupils without imposing further restrictions on businesses or social lives. Teachers are not so sure they are ready.

The telegraph reports that the Government may scrap the daily fatality figures.

Australia recorded 100 covid-19 deaths in its deadliest day to date..

The US passed 5 million recorded covid-19 infections, while Brazil passed its own  milestone of 3 million cases.

Covid cases among US children have lept 40% in the second half of July.

German and French manufacturers record surge in demand

Industrial production in Germany jumped by almost 9% in June from the previous month, with exports up by 14.9%. French production climbed more than 14%. The apparent recoveries, alongside buoyant trade numbers in China, have raised hopes of a global rebound from the pandemic-induced crash.

National budget rules to remain suspended next year, Brussels says

Restrictions on national budgets imposed by the EU will remain suspended until 2022 at the earliest due to the ongoing uncertainty caused by the coronavirus pandemic.

US employment bounceback falters

The US economy added just 1.8m jobs last month, under half the 4.8m rise in June, following a rise in COVID-19 infections in the South and West of the country. America’s jobless rate fell to 10.2% from 11.1%, but the latest data showed an extra 10.6m Americans are unemployed compared to before the pandemic. Michelle Meyer, chief US economist at Bank of America Merrill Lynch, said: “It’s still a long road ahead in terms of fully recovering the labour market, but progress is being made.”


UK blue chips on the FTSE 100 traded in and out of small gains and small losses on Friday as investors paused after a busy week for corporate earnings that was decidedly mixed. Sterling was just above $1.303 giving back some recent gains. The S&P was flat on Friday but the NASDAQ fell 0.87%.

US payroll data released on Friday for July showed employers added 1.76m jobs in the US  beating consensus forecasts for 1.6m. The data encouraged the belief that the US economy is picking up despite the summer surge in Covid-19 cases in the US sunbelt states of Florida, Louisiana, Texas and California. US Non-Farm Jobless Rate fell to 10.2% in July as employment rose by 1.8m. The market had expected a more modest improvement in the unemployment rate to 10.5%, compared to 11.1% in June, amid the addition of 1.53m positions. Average hourly earnings rose 7c, or 0.2%, to $29.39, compared to expectations of a 0.5% fall.

Chancellor Rishi Sunak once more on Friday ruled out an extension of the furlough programme beyond 31st October despite calls for an extension to the programme specific to certain industries. Chancellor Rishi Sunak said the furlough scheme cannot “carry on indefinitely”. Sunak said it was “wrong to keep people trapped” in a situation where there was no prospect of them having a job to go back to. He made the comments during a visit to Scotland, where he said 65,000 businesses have benefited from more than £2bn of loan support.

Internet sales in the UK now make up around one third of total retail spending, up from a fifth pre-pandemic.

UK House Prices jumped in July after coronavirus lockdown restrictions eased and the government announced a stamp duty holiday, sparking a “mini-boom” in the property market. UK house prices in July were 1.6 per cent higher than the previous month.

Divisions remain between Democrats and Republicans over the US Stimulus package on several key areas such as state aid to local governments and unemployment benefits. Trump announced four executive actions to work around the impasse on Saturday. He signed an executive order to extend a moratorium on evictions, defer student-loan payments and authorise $400 a week in additional unemployment benefits.

US-China relations look set for a rocky week following sanctions being placed Chinese officials in Hong Kong, the arrest of media Tycoon Jimmy Lai and a high profile visit by US officials to Taiwan.

The Oil Price was supported by Saudi optimism on demand and an Iraqi pledge to deepen supply cuts, although uncertainty over a deal to shore up the US economy capped gains.

Gold Prices fell as the dollar held onto gains made after better-than-expected US payrolls data, while investors kept a close eye on Sino-US relations ahead of scheduled trade talks.

Time centibillionaires helped pay the costs of coronavirus

The Observer’s business leader argued that news that Mark Zuckerberg has become the third centibillionare only emphasises the need for wealth taxes to address rising inequality, much of it now brought about by the mixed fortunes manifesting from the coronavirus pandemic. Barbara Ellen said in the same paper that centibillionaires should not be “viewed as the zenith of business achievement but as a sign that priorities are upside down.”

MTD extension opens opportunities for tech vendors

Leanna Reeves explores how HMRC’s Making Tax Digital (MTD) programme will provide a boost to tech providers and vendors operating in the accounting sector. Nick Longden, vice president sales at FreeAgent, says the extension of the MTD system “enables us to extend our reach because more micro-businesses are going to start using digital accounting software.” Paul Nicklin, technical director at inniAccounts, says the extension presents an opportunity for businesses as well as vendors. “With HMRC acting as a central hub for all of your data, you can pick and choose your providers without fear of lock-in and vendors can operate in a narrow area, confident that the other aspects of the scope are dealt with by others,” he said.

Netflix faces new tax probe

After scrutinising the tax affairs of UK gambling companies, the Mail on Sunday turned the spotlight on Netflix, noting that HMRC is investigating the US streaming service over large tax credits claimed in 2018, as well as the amount of tax paid in 2015 and 2016. Netflix does not say exactly how much it makes in the UK, but the think-tank TaxWatch estimates it made £1.1bn in revenues in the UK last year, which should have generated £68.5m in profit and therefore taxes of £13m. Netflix’s subscriber numbers have surged during lockdown, the paper’s Jamie Nimmo observed, but profits are funnelled through separate accounts at its European HQ in the Netherlands

HMRC investigating 246 players in image rights probe

HMRC is investigating as many as 246 football players over the use of image rights to avoid paying tax – three times the number being probed last year. A report by UHY Hacker Young shows the number of players under investigation has risen with the taxman concerned that a slew of lesser-known players are avoiding tax by getting paid huge sums for image rights that are overpriced. Elliot Buss, partner at the firm, said: “The image rights of the likes of Paul Pogba and Mohamed Salah are undoubtedly worth millions. But if you are second-choice left back in the Championship getting paid a great deal in image rights payments, that is likely to trigger an investigation.” Fifty-five football agents are also being probed over their financial arrangements as part of a wider clampdown

Options launches Sharia-compliant workplace pensions

Pension provider Options UK has joined forces with Halal investment specialists Wahed Invest to launch a fully diversified, Sharia-compliant workplace pension. The new pensions offering comprises Sharia-compliant funds selected for their adherence to Muslim values and also ensures all returns from these funds are Halal.

Taxman goes fishing for offshore accounts

HMRC launched a fishing exercise aimed at snaring offshore tax evaders last week, sending letters to UK taxpayers with a foreign bank account who the revenue suspects might have received overseas income or gains. Dawn Register, a partner at BDO, said: “We’re not surprised that HMRC is focusing its resources on clamping down on undeclared offshore assets as there is plenty of money on the offshore money tree. Anyone who has received one of these nudge letters should be aware that HMRC’s knowledge of their financial affairs could lead to questions about where wealth has emanated.” A Freedom of Information request by Price Bailey revealed HMRC launched 605 in-depth investigations into people it suspected of offshore tax evasion last year, netting £684,298 per inquiry on average. Partner Jay Sanghrajka said the high penalties for those found guilty of evasion “is likely to encourage behavioural change .”

Ethical questions raised over betting firms’ tax arrangements

Public policy think-tank, the Social Market Foundation UK has highlighted betting firms with offshore subsidiaries, saying most online companies operating in the UK are headquartered in tax havens, and claimed some do not pay corporation tax in full. Matt Zarb-Cousin, director of campaign group Clean Up Gambling, comments: “This sector is extracting massive profits from Britain while leaving the rest of the country to pick up the bill for the damage.” Witherow stresses that there is no allegation that the firms have broken the law, “but the opaque web of companies they deploy makes it almost impossible to check if firms are paying the correct amount.”

Bernie Sanders proposes 60% tax on billionaires’ pandemic gains

US Senator Bernie Sanders has introduced a bill that would levy a 60% tax on the wealth gains made by 467 US billionaires from March 18th to the end of 2020. The senator says the measure would raise $421.7bn, sufficient to allow Medicare to cover all out-of-pocket health care expenses for every American for one year. He added that, if implemented, the billionaires would still have gained a collective $310.1bn in wealth. Mr Sanders is joined by Senators Ed Markey and Kirsten Gillibrand – both Democrats – on the legislation.

Allica Bank wants to provide alternative for SMEs

Allica Bank has applied for a £25m grant from a fund designed to drive banking competition, which will contribute to a £50m investment in current accounts for small and medium-sized businesses. The challenger bank, which is controlled by Warwick Capital Partners, said the funding will “allow us to accelerate our plans to offer a genuine competitive alternative for small and medium-sized businesses at a time when there has never been a greater need.”

Brokers – The unsung heroes of SME finance

Research from Aldermore bank shows SMEs are expected to borrow £48.3bn to help their businesses recover following COVID-19. The study also found that businesses accessing finance through a broker are more likely to use a diverse range of funding options. Tim Boag, group managing director, business finance, Aldermore, said: “Brokers are often the unsung heroes when it comes to SME finance. In the months ahead, they will be needed more than ever to help businesses secure the funding they need.”

Trade bodies call for Government support in retail rents

Trade bodies have called on the Government to fund up to 50% of commercial rents and services charges to help businesses in the retail, hospitality and leisure sectors survive the COVID-19 pandemic. The groups have been in discussions with ministers regarding “property Bounce Back” grants, that would be focused toward firms worst affected by lockdown. In a joint statement, the trade bodies said: “Without urgent action on rents, many otherwise viable businesses are, through no fault of their own, at imminent risk of failure.” The statement comes as only 50.5% of retail rents due for the third quarter was collected 35 days after the due date, while concerns have also been raised that the Government’s suspension of evictions and winding-up petitions has encouraged some tenants who are able to pay rents to withhold payment. Analysis by Ignite Economics, for the trade bodies, claims that the Property Bounce Back grants would save 375,000 jobs.

In anticipation of Ashley’s results

The Observer’s Zoe Wood looks forward to the annual results of Frasers Group, which the company has said will be published “subject to the satisfactory completion of the audit.” Founder Mike Ashley has had a rough time of it lately, Ms Wood notes, with last years’ results published late after Belgian authorities issued a last-minute £608m tax demand. Following this debacle, Frasers parted company with Grant Thornton and sought to appoint one of the Big Four – but there were no takers, with the top auditors citing problems such as conflict of interest. RSM later took on the role. An investigation by the Guardian this year found Ashley’s warehouse workers were potentially earning less than the minimum wage. As with most retailers, the results are unlikely to bring good news, Woods predicts.

New Look seeks to link turnover with rent

New Look is expected to appoint advisers from Deloitte as soon as this week to oversee a CVA. The fashion giant will ask landlords at more than 450 stores to accept new lease contracts that would ensure it pays rent based on how much money each shop makes. One rival executive source told the Mail: “This is a significant moment – it’s never been tried before. Landlords will read the writing on the wall or bury their heads in the sand. But retail’s troubles aren’t going away.”

WH Smith enters negotiations with landlords

WH Smith has drafted in its property adviser Gerald Eve to negotiate rent cuts from landlords as it struggles to contain costs. One landlord said WH Smith was brandishing the threat of a company voluntary arrangement to extract rent reductions but a source close to the retailer claimed a CVA was not “actively being pursued” or used as a threat, but declined to rule one out.

FTSE bosses took pay cuts before COVID-19 struck

An annual executive remuneration report by Deloitte shows median pay for CEOs of the 30 largest FTSE companies dropped by over 7% to £5.9m in 2019.

Universities on strike alert after funding drought hits pensions

The Sunday Telegraph reports that crashing financial markets and rock-bottom interest rates have pushed the Universities Superannuation Scheme for pensions close to breaking point. The hole in the pension fund has grown from £3.6bn at its last full valuation in 2018 to a yawning £20.2bn by the end of June this year. A fresh revaluation of the £74.2bn scheme is due to commence this month, setting the stage for the latest showdown in a bitter dispute between universities and staff over who should shoulder the rising cost of ensuring future pensions can be paid.

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


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