Survey flags SME optimism and other business news on 8th November 2019.

8th November 2019.

James Salmon, Operations Director.

There is not a lot of good news out there for credit managers today as a CBI survey flags SME optimism dip, TUC analysis shows Britain falling behind on growth, investment and exports, the BOE warns of the economy being held back, BDO gives more bad news for the high street, Intu reports on the effect of CVAs and the IFS warns on government spending.

CBI survey flags SME optimism dip

Figures from the Confederation of British Industry (CBI) show optimism among SME manufacturing firms has dipped at a pace not seen since 2016, with the CBI SME Trends Survey for October showing optimism around exports for the year ahead is also gloomy.

The research found that political and economic uncertainty resulting from Brexit has driven falls in both domestic and international orders over Q3.

Jobs in the sector dipped by 5%, with a similar rate forecast for Q4.

Alpesh Paleja, lead economist at CBI, said: “As a first step to lifting the malaise, the next government must get behind business to deliver on a Brexit deal, particularly one that unlocks a smooth transition period.”

Britain falls behind on growth, investment and exports

TUC analysis shows that growth, investment and exports in Britain are lagging behind those in other leading economies.

Between Q2 2017 and Q2 2019, the UK has ranked 30th or worse among the Organisation for Economic Co-operation and Development’s (OECD) 36 members in all three categories.

In the period, quarterly growth in the UK averaged 1.3% compared to an OECD average of 2.7%, investment fell by 0.2% while it was typically up 3.4% across OECD nations, while UK exports contracted by 2.6% compared with an average of 3.4% growth across the 36 countries.

Brexit and trade wars will hold back economy, BoE warns

Amid the backdrop of global trade tensions, the Bank of England (BoE) has warned that Boris Johnson’s Brexit deal is likely to hold back growth in the UK economy over the next three years.

UK national income will be 1% lower by 2022 than originally thought, the BoE said in its quarterly economic statement, most of which due to “weaker global growth, driven by trade protectionism.”

The Bank expects the annual pace of growth to rise from around 1% at the end of this year to more than 2% by the end of 2022, but warned that growth over the next three years will be 1% down on its August forecast.

Policymakers believe the UK economy grew 0.4% in the three months to September, double their estimate in August.

Meanwhile, two external members of the BoE’s Monetary Policy Committee – which sets interest rates – have called for an immediate interest rate cut. Michael Saunders and Jonathan Haskel voted to cut interest rates to 0.5%, from the current rate of 0.75%.

High street sees sales hit

BDO ’s High Street Sales Tracker shows that retailers saw sales climb just 0.7% in October, with sales down 6.45% in the final week of the month.

Footfall was down 5.3%.

BDO’s Sophie Michael comments: “As retailers continue to trade on paper-thin margins, and their pleas for business rates reform remain ignored, they enter the vital Christmas trading period facing a perfect storm of unfavourable conditions.”

Meanwhile, the Telegraph notes the challenging climate in the retail sector, pointing to research from PwC and the Local Data Company which shows the number of shops, pubs and restaurants lying empty is rising at the fastest rate in nearly a decade.

CVAs hit Intu

Hit with a number of CVAs, shopping centre owner Intu has revealed a higher-than-anticipated volume of insolvencies from its occupants, prompting the firm to indicate that it may be pushed to make a cash call or even sell off assets.

During the third quarter, the retail landlord agreed 47 long-term leases amounting to £5m in annual rent, compared with 84 leases equalling £15m in annual rent in the same period a year ago, and Intu has forecast like-for-like net rental income for 2019 to be down by around 9% on last year.

IFS: Government will break spending rules

The Institute for Fiscal Studies (IFS) expects the next government to break rules on spending due to levels of borrowing, saying the gap between what the Government spends and what it brings in is set to be higher than previously forecast.

The IFS expects the deficit to be higher in each of the next five years, exceeding £55bn this year and £50bn next year.

While the Office for Budgetary Responsibility in March suggested that the deficit would likely halve over five years, the IFS expects it to remain at around £50bn, meaning the Government would breach a rule which says borrowing should remain below 2% of national income, passing the figure in 2020/21.

Do you sell on credit?

With all the above bad news for the economy, it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Customers who have been safe for years may find themselves adversely affected by the tightening economic conditions.

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