Second wave fears rise –  business news 21 September 2020.

James Salmon, Operations Director.

Second wave fears rise plus covid-19, market and other business news.

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

Bosses voice fears as Second wave fears rise

Business leaders have voiced concern over reports that the UK could see a second national lockdown as coronavirus cases increase and second wave fears rise, saying remote working hurts productivity and would deal a heavy blow to an already wounded UK economy.

Jamie Dimon, chief executive of JP Morgan, says he has noted a lack of “creative combustion” in the firm’s largely empty office, while former Virgin Money boss Dame Jayne-Anne Gadhia said working-from home “prevents those sparks” that come from in-person interaction.

Lindsell Train co-founder Nick Train pointed to concerns over mental health and being alone, while former Marks & Spencer chairman Robert Swannell bemoaned the loss of “chance conversations, social interactions and snippets overheard that allow networks to flourish”.

Paul Manduca, chairman of insurance group Prudential, warned that it is very hard to get to know and assess new employees remotely. Andy Golding, chief executive of OneSavings Bank, noted that it is difficult for managers to carry out performance observations online.

A Chartered Institute of Personnel and Development survey of 1,000 employers saw 29% say working from home had helped productivity, while 28% said productivity had been harmed.

Double-dip warning as second wave fears rise

With analysis suggesting that local lockdowns have stalled the economic recovery of areas where they have been put in place, economists have warned that as second wave fears rise, it could result in a double-dip recession or W-shaped recovery.

Deutsche Bank economist Sanjay Raja warned that tightening restrictions is “economically important”, saying stricter rules “will weigh on the UK’s recovery”.

This, he adds, is “one reasons we expect the recent GDP surge to be short-lived.” While GDP is expected to rebound from the 22% dip seen in H1 and record a record climb in Q3, economists at ING estimate it could slip back 2% in Q4 – and almost 8% if there is a second national lockdown.

Capital Economics’ Andrew Wishart says that if restrictions are re-imposed, “we definitely could get that double-dip recession”.

Fresh Covid lockdowns will cost economy £250m a day

As second wave fears rise, a report from the Centre for Economics and Business Research (CEBR) indicates that the UK economy could take a £250m per day hit if Covid lockdowns reverse the increase in people going to pubs and restaurants and returning to work. The think tank warned that GDP could fall by between 3 and 5% in the last three months of the year compared with the third quarter.

Small business recovery stalls

NatWest’s small business purchasing managers’ index shows the recovery among small firms slowed in August, with the lender saying there is a “widening gap” between big businesses and smaller firms. The index, on which a figure above 50 indicates expansion, fell to 50.6 in August, down from a two-year high of 53.3 in July. Stephen Blackman, NatWest’s principal economist, said small firms have been hit by a “mix of sector, place and distribution”. He added: “We know small firms tend to favour services, which have been slower to recover. But larger firms are also more likely to operate in national and even international markets, where places of uneven demand tend to average out.”

Will there be an extension to insolvency protections?

As second wave fears rise, Ministers are reportedly in talks to extend a moratorium on insolvencies that was brought in as part of the Covid response to prevent  a tsunami of company insolvencies amid fears that renewed trading restrictions and new lock-downs will tip thousands of businesses beyond the brink of collapse.

Sky News is reporting that officials are discussing an extension of the ban on statutory demands being used as the basis for winding-up petitions, which has been in place since late April.

The move is expected to be finalised within a matter of days, with the current moratorium due to expire at the end of the month. Sources said this weekend that an extension was not yet guaranteed but was “overwhelmingly likely”

The measure was one of several included in the government’s Corporate Insolvency and Governance Act, which became law in June. Others, including a moratorium on directors’ liability for wrongful trading, also expire at the end of September and are said to be the subject of discussions about an extension.

Business groups including the Institute of Directors have called on ministers to act – with the demand acquiring greater urgency as a result of warnings that the country is edging towards the possibility of a second national lock-down.

Roger Barker, the IoD director of policy and corporate governance, said recently: “Without [an extension to] these measures, we could see some entirely preventable company collapses, putting our economic recovery and jobs at risk.

“Directors must be in a position to see their organisations through the crisis, they shouldn’t be penalised for acting responsibly amid unprecedented circumstances.”

The Department for Business, Energy and Industrial Strategy, which oversaw the introduction of the emergency insolvency measures, declined to comment.

FSB calls for support amid local lockdowns

Small businesses have called for support to ensure firms do not collapses and jobs can be saved amid tighter coronavirus restrictions. Mike Cherry, national chair of the Federation of Small Businesses, has called for local authorities and government to offer clear guidance to small firms in areas hit by local lockdowns. He has also urged ministers to roll out help to cover the hole left when the furlough scheme ends on October 31, expressing a desire to see cuts to business rates and National Insurance contributions carry into 2021.

Home-working may hit the economy

A Sunday Times piece on remote working cited PwC analysis suggesting home working will cost the economy £15.3bn a year – equivalent to 1% of GDP – as people will be less likely to go out to buy lunch or a coffee. The report adds that the spending power of cleaners, security guards and workers whose livelihoods depend on other staff entering city centres will also be squeezed.

BoE economist: Rebound faster than anticipated

Bank of England chief economist Andy Haldane says the economy is recovering faster than anyone had expected from the coronavirus crisis. He says that while the economy is 12% smaller than at the start of the year, GDP had recovered around half of its pandemic-related losses by July. This, he adds, represents a rebound that has gone “further and faster” than had been anticipated. Writing for the Mail on Sunday alongside Be The Business chairman Sir Charlie Mayfield, Mr Haldane suggests that improving levels of technology adoption among businesses will help “ensure this bounce-back continues”. Mr Haldane’s comments come just days after a Bank of England policy statement which noted that the economy is recovering faster than the Bank had forecast in August.

Migrants responsible for UK’s growth of top incomes and taxes

Highly skilled foreign workers contribute 8% of total income tax, according to HMRC data, and their increasing numbers explain most of the increase in income inequality over the past two decades. Almost four in 10 of the UK’s top 0.001% of earners are immigrants, despite being around 15% of the population. Arun Advani, the lead author of a paper by University of Warwick researchers, said he had suspected that migrants would be over-represented among high earners as many non-UK born people work in finance, technology and medicine, but he “was genuinely surprised” at the scale of the imbalance. Advani said the research could have an impact on decisions around a wealth tax as it shows many high earners could leave as they “often have less to tie them to the UK than people who were born here”.

5m workers on furlough in July

HMRC data shows that up to 5.3m people remained on the furlough scheme at the end of the July, while close to 1m people returned to work on a part-time basis. HMRC, which says the number of furloughed workers peaked at 8.9m in early May, found that the total had fallen to 4.8m by the end of July – but noted that the final count could be up to 10% higher, potentially lifting the figure to around 5.3m. The analysis shows that about 950,000 people went back to work part-time in July, with this representing around 20% of furloughed workers. With the job retention scheme due to come to an end on October 31, Daniel Tomlinson, senior economist at the Resolution Foundation think-tank, said some hard-hit sectors are still hugely reliant on the furlough and “will need further support after October”. Annie Gascoyne, the CBI’s director of economic policy, said the need for further support was “absolutely critical”, with the business group calling for a more permanent short-time working scheme.

Companies hand back £215m in furlough cash

HMRC figures show over 80,000 employers have returned furlough money that they were given to cover the salaries of their workers. The voluntary payments amount to more than £215m, according to data obtained by the PA news agency. It is a fraction of the up to £3.5bn that officials believe may have been paid out in error or to fraudsters – about 10% of the cost of the scheme overall. HMRC said: “HMRC welcomes those employers who have voluntarily returned CJRS grants to HMRC because they no longer need the grant, or have realised they’ve made errors and followed our guidance on putting things right.”

Retail sales up 0.8% in August

Figures from the Office for National Statistics (ONS) show that retail sales were up 0.8% in August, meaning sales volumes are 4% higher than they were in February. The increase for August marks a dip on the 3.6% recorded in July. PwC’s Lisa Hooker commented: “After the stellar recovery in retail sales we saw in the past three months, it’s no surprise that the monthly rate of growth slowed in August.” With online sales up 46.8% on the level seen before the coronavirus lockdown, Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “Overall, the switch to greater online sales means the high street remains under pressure.” Helen Dickinson, chief executive of the British Retail Consortium, said: “It is clear that the retail industry is entering a period of fragile recovery, with August showing the third consecutive month of growth

Extension call for business rates holiday

Business leaders in the capital have called on ministers to extend the business rates holiday, which is due to expire in March, warning that without further support jobs could be at risk. Jace Tyrrell at lobby group New West End Company said: “The reintroduction of business rates in April 2021 will be a final blow for many businesses already struggling to meet costs”. Jerry Schurder, head of business rates at property consultancy Gerald Eve, notes fears over poor footfall and a potential second lockdown, warning: “London’s businesses are hugely concerned that without an extension of the holiday many more outlets will simply be unable to continue to trade.” London Mayor Sadiq Khan has called for the business rates holiday to be extended by a year, voicing concern that without this measure “many employers will have no choice but to make more people unemployed.”

Advertiser questions Google stance on charge

Advertising company Publicis has urged Google to rethink its decision to pass the cost of the UK’s new digital services tax to advertisers. With the UK rolling out a 2% levy on the revenues of search engines, social media companies and online retailers, Google has opted to charge extra for adverts placed on its search engine and YouTube. Publicis has told Google it feels this is a “heavy-handed approach … driven by deeper political issues.” A Google spokeswoman said it would encourage governments to focus on international tax, instead of “new unilateral levies”. They also said digital service taxes increase the cost of digital advertising, adding: “Typically, these kinds of cost increases are borne by customers”.

Businesses urge Sunak to offer Budget details

Business lobby groups have urged Chancellor Rishi Sunak to outline what his autumn Budget may hold, arguing that firms need clarity as soon as possible. British Chambers of Commerce co-executive director Claire Walker believes the Chancellor should not wait until November to “deliver the fiscal stimulus our business communities so desperately need”. She adds that expanding the National Insurance Employment Allowance, raising the threshold for employers’ national insurance contributions and extending business rates relief would help businesses to “rebuild, restart and renew.” Tej Parikh, chief economist at the Industries of Directors, says: “The earlier the Government can give some kind of indication about what they plan to do in that November Budget, I think the better”, while Emma Jones, founder of small business support network Enterprise Nation, comments: “Any heads-up on im portant changes is useful.”

Sunak to extend business support loans as COVID-19 spread worsens

The UK Chancellor, Rishi Sunak, is set to extend the Treasury’s UK-wide programme of business support loans to help companies affected by the coronavirus pandemic. Mr Sunak is this week expected to unveil plans to extend the Treasury’s four loan schemes, which have already backed £53bn in lending to companies through government guarantees. Meanwhile, the Times reports that Innovate Finance has written to Mr Sunak to warn of a potential collapse in access to capital for small businesses when state-backed lending schemes end, as non-bank lenders struggle to secure finance and banks retrench as they consider the risks of bad debts from COVID-19. Separately, the Treasury has told the Business Banking Resolution Service (BBRS) – which is set to launch in mid-November – to prepare for an influx of grievances over government-backed Covid loans, according to the Guardian.

BBB chief vows to address funding gaps

The British Business Bank’s new boss Catherine Lewis La Torre has said she wants to double down on the development bank’s levelling up focus, and use the BBB to help the UK become a “science superpower”. The bank handed £8bn of finance to almost 100,000 firms in the last financial year – a 21% rise – and administered the emergency state-backed loans handed to businesses to ensure they survived the COVID-19 crisis. Ms Lewis La Torre said small business may need “bespoke solutions” and “hybrid” debt and equity rescues as they emerge from the crisis. The Telegraph notes that over 90% of finance supported by the BBB was delivered by non-traditional lenders.

Manufacturers slash investment

Research by trade group MakeUK and BDO shows manufacturing companies’ spending plans dropped to a balance of minus 32% in the third quarter, down from minus 26% in the previous period. Pre-Covid investment intentions were running at plus 20% in the first quarter of 2020. Tom Lawton, head of manufacturing at BDO, said: “While the industry has managed to claw back some lost ground from a dismal second quarter, the continued collapse in investment intentions is a real cause for concern.” Make UK said it expected manufacturing output to fall by almost 11% this year, and downgraded its forecast for recovery in 2021 from 6.2% to 5.1%.

City centres see tenant exodus

Private rents in some parts of London have fallen by up to 20% in the wake of the coronavirus outbreak. With renters quitting the capital, fewer international students seeking accommodation near places of education and firms putting relocation plans on hold, the dip in demand has resulted in an oversupply that means rents have come down in some areas. While average rents in London are down by around 4% on a year ago – and 6% or 7% in prime areas – agents say rents in and around the Barbican have fallen by 20%, while rents in Bloomsbury and Clerkenwell are down by around 10%.

Eating out

UK Restaurants continued to enjoy some of the benefits of the Eat Out to Help Out scheme this month as customers felt more comfortable eating out. Diners spent 14% more in restaurants in the first week of Sept than they did the same week last year after August’s discount scheme gave consumers the confidence to return after months in lockdown.

Mortgages getting tougher

HSBC Holdings Plc, Barclays Plc and Natwest Group Plc have tightened restrictions on home loans for risky borrowers as officials unwind pandemic-support efforts. Then there’s the renewed prospect of a no-deal Brexit, threatening to deepen what’s already the worst recession in centuries. At one stage, one in six mortgage holders had paused their repayments. Regulators, meanwhile, say they don’t know how much was loaned to those most at risk of losing their jobs in the downturn.  “Life could get very difficult,” said Mick McAteer, a former board member of the U.K. Financial Conduct Authority and now a housing advocate. “I’m not sure people fully understand that we are just coming to the end of the ‘emergency’ phase of the Covid crisis.”

Covid-19 general news

Global cases pass 30.8 million while deaths exceed 958,400

Britain is at a “critical point” in the coronavirus pandemic and data on cases are heading in the “wrong direction,” Chief Medical Officer Chris Whitty is expected to warn on Monday, as concern mounts that a second lockdown may be needed.

The government reported 3,899 new Covid-19 cases on Sunday following 4,422 on Saturday, fueling concern that the U.K. could follow the paths of Spain and France, where hospitalizations are rising again.

Expectations are running high that local restrictions elsewhere in the U.K. could be extended to London. Mayor Sadiq Khan will recommend tightened rules for the capital on Monday, LBC radio reported. Asked if London office workers could be asked to work from home again this week, Health Secretary Matt Hancock told Times Radio: “Well, I wouldn’t rule it out.”

Approx 4.7m people in England mainly in the north west, Midlands, and West Yorkshire already face new rules banning visits at each other’s homes from Tuesday.

London could be on track for tighter restrictions on socialising and nights out amid reports official figures will show a surge in Covid-19 cases in the capital. The number of cases per 100,000 people over a seven-day period has risen from 18.8 to roughly 25.

U.S. deaths related to Covid-19 closed on 200,000. Former FDA Commissioner Scott Gottlieb said he expects the U.S. to experience “at least one more cycle” of the virus in the fall and winter.

India’s virus numbers are approaching 5.5 million while Indonesia’s capital is adding thousands of beds to house patients as its health system struggles with record infections.

Sanofi & GlaxoSmithKline have signed an agreement to provide up to 300 million doses of Covid-19 vaccine to the European Union, the French pharmaceuticals company announced. The companies commenced talks to supply the Covid-19 vaccine to the EU back in July. Sanofi & Glaxo have separately signed agreements with US and UK govts.

Gro Harlem Brundtland, who led the World Health Organization during the SARS outbreak, estimates it would take about $5 per person or  a total of about $40 billion,  for humanity to get prepared enough to deal with the next pathogen after Covid-19. That compares with the estimated cost of $11 trillion Governments will spend dealing with the current pandemic. The report urges countries to improve their early-detection systems for pathogens and strengthen the WHO to make it more independent. Governments also need a high-level coordinator to lead their pandemic responses on a national basis, and they should routinely conduct simulation exercises to make sure they are prepared, according to the recommendations. They also should commit to share more information about such outbreaks.

Travel Restrictions on UK-US travel will cost the UK economy at least £11 billion this year, according to a report commissioned by leading aviation industry firms. Some £32 million will be wiped from UK GDP each day from next month if constraints aimed at tackling the coronavirus pandemic remain in place, the study suggests.


European stocks had their biggest fall since July on concerns that there will be further lockdowns as coronavirus cases rise. By 9am The Stoxx Europe 600 Index dropped 2% and the FTSE 100 Index slid 2.6%. Germany’s health minister said the trend of cases in Europe is “worrying” as U.K.’s Chief Medical Officer is set to warn on Monday that the U.K. is at a “critical point.”


Rolls-Royce is seeking to raise up to £2.5bn on the London market in an effort to bolster its balance sheet in the wake of the pandemic. The engine manufacturer said the raise could consist of a mix of options, including a rights issue or debt and equity issuances.

Testing times ahead for staff

The Sun on Sunday looked at coronavirus testing, noting that management consultants are being drafted in to bolster the test and trace system, with a number of KPMG staff on standby to fill back-office roles. The Observer also reflected on testing, saying Deloitte was asked to create the testing system.

Sunak told to reverse duty-free error

Rishi Sunak is being urged to reverse a decision to scrap tax-free shopping for all tourists visiting the UK after Brexit with business leaders warning the Chancellor the move could lead to the loss of 70,000 jobs and write off £5.6bn from the economy.

Oxfam wants increased taxes on high-carbon luxuries

Research compiled by Oxfam and the Stockholm Environment Institute shows the wealthiest 1% of the world’s population was responsible for the emission of more than twice as much carbon dioxide as the poorer half from 1990 to 2015. Oxfam wants more taxes on high-carbon luxuries, such as a frequent-flyer levy, to funnel investment into low-carbon alternatives and improving the lot of the poor.

EU seeks new powers to penalise tech giants

Brussels wants the ability to break up big tech firms, expel them from the single market and create a rating system illustrating compliance with tax rules and hosting illegal content

HMRC’s IHT haul hits four-year high

HMRC pulled in £274m from 5,638 inheritance tax investigations in 2019/20, the highest total in four years. The average yield of almost £50,000 marks an increase of more than a fifth over the past three years. With analysis showing that HMRC now investigates around a quarter of estates that pay IHT, Rachael Griffin of wealth advice firm Quilter said the figures are “shockingly high” and suggest it has become “the norm for HMRC to investigate”. This, she adds, offers “a strong indication that something is amiss” within the “mind-bending complex system”. The Telegraph notes that the Office of Tax Simplification last year proposed sweeping reforms to make IHT easier to understand, while MPs have called for a “radical shake-up” of the levy.

HMRC may see new powers in tax evasion battle

Measures proposed in the next Finance Bill will see HMRC given powers to issue financial institutions notices which force them to provide information about people’s assets. The mooted change will make it easier for HMRC to share information with foreign tax authorities, supporting efforts to tackle tax evasion. Under the current regime, consent is provided by the individual or a tax tribunal must approve the request. The proposed new powers, which would cover banks, investment advisers, fund managers, credit unions, insurance companies and credit card issuers, could come into force in 2021. While HMRC said the new powers would help prevent and uncover tax evasion and avoidance, the Chartered Institute of Taxation has voiced concern over “the loss of independent tribunal oversight, particularly in cases which involve requests for information about UK taxpayers”. Banking trade body UK Finance said the measure s signified a “watering down” of safeguards, saying authorities are looking for an “easy fix” to speed up tax investigations by cutting out the courts.

Tax office complaints climb

Formal complaints about HMRC by taxpayers have increased by 54%, climbing from 997 in Q2 2019 to 1,537 this year. Moore notes that the tax office has had to operate with fewer staff during the coronavirus crisis and resulting lockdown, causing delays.

Firms get imaginative over trainee schemes

The Mail on Sunday highlights the plight of new entrants to the job market to mark the start of National Graduate Week, detailing how the COVID-19 pandemic has seen many internship and recruitment programmes reduced or scrapped, with placements running a quarter to a third below the level of last year. Pointing to the “imaginative things” some employers have decided to roll out, the paper notes that KPMG is helping pay for trainees to take a master’s degree if they defer their arrival for a year, while Deloitte had to scrap its summer internship programme but offered an online course and a £500 goodwill payment.

Day explores sale of chains

Retail tycoon Philip Day has put his Peacocks and Edinburgh Woollen Mill chains up for sale, appointing FRP to sound out potential bidders. Mr Day triggered the sale process after an unsolicited approach for Peacocks, which the Sunday Times says is more likely to be offloaded than EWM.

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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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.

You put up with the PAIN – now claim the GAIN!

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.

Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?

How many of your invoices are paid late each month – 20, 50, 100 or more?

At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim! 

At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.

For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!  

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.