The latest steps to protect us from economic effects of Coronavirus.

20th March 2020.

James Salmon, Operations Director.

The Chancellor of the Exchequer is set to announce an employment and wage subsidy package to try to protect millions of jobs during the Coronavirus outbreak.

Talks went on into the night with business groups and union leaders, who urged the government to help pay wages amid the virus pandemic.

Many firms are warning of collapse, wiping out thousands of jobs, as life in the UK is largely put on hold.

Sir Martin Sorrell has said the outbreak of coronavirus will accelerate the digital revolution as businesses and consumers become increasingly reliant on technology.

Sorrell, who runs ad firm S4 Capital, said the bottom line of the crisis was that digital transformation would move at a much greater pace.

Government urged to freeze taxes

Business groups are calling on ministers to suspend payments of taxes such as national insurance and VAT to alleviate some of the pressures firms face in the wake of the coronavirus outbreak.

A freeze on certain taxes may be on the cards, with Chancellor Rishi Sunak set to unveil radical plans designed to support workers today.

Mr Sunak is expected to give companies and the self-employed an NI holiday after the Government published legislation allowing him to do so, with it also suggested he could reverse the pay-as-you-earn tax system so the Government contributes to the wage bills of companies that keep staff on.

Think-tank: Extra £22bn needed to help workers facing layoffs

The Resolution Foundation think-tank says the Government should commit a further £22bn to support workers facing layoffs following the coronavirus outbreak, creating a new work subsidy modelled on maternity pay.

The statutory retention pay scheme, costed at £3.6bn, would allow firms to put staff on leave without making them redundant, supporting a million workers via a flat-rate subsidy to employers worth £151 per week for an initial six months.

A separate proposal, for staff to be paid at least two-thirds of their typical salary, would cost around £8bn over six months.

Separately, former Business Secretary Greg Clark has called for immediate action through the current UK taxation system. “Instead of firms paying PAYE to the Government, that flow should now be reversed”, he said, suggesting the state could cover wage bills for firms retaining staff.

Bailey vows to help SMEs

Bank of England (BoE) governor Andrew Bailey has told small firms to approach him or the Bank if they struggle to raise debt from their lender, saying he is “more than happy to intervene” if jobs are at risk.

He said that while the BoE has limited resources, he is looking to increase them, adding: “I want small businesses to feel there are people here to help.”

With banks pledging to offer SMEs billions of pounds of emergency loans to help them through the coronavirus crisis, the BoE incentivising lenders by offering them cheap funds and the Treasury providing loan guarantees, Mr Bailey said: “If you put together everything we’ve done and the Government has done it is substantial.”

Interest rates cut to record low

The Bank of England has cut interest rates again in an emergency move as it tries to support the UK economy in the face of the coronavirus pandemic.

It is the second cut in interest rates in just over a week, bringing them down to 0.1% from 0.25%. Interest rates are now at the lowest ever in the Bank’s 325-year history.

The Monetary Policy Committee decided on the 0.15 percentage point cut at an emergency meeting where it also announced it would buy £200bn in bonds as part of expanded quantitative easing measures, taking its QE programme to £645bn.

Ministers ‘must do more for small firms’ – Davey

Sir Ed Davey, acting co-leader of the Liberal Democrats, has urged Chancellor Rishi Sunak to give greater support to SMEs, saying he must “go much further” to protect small businesses.

He argues that ministers should help smaller companies with their wage bills and ensure that those whose insurance doesn’t cover pandemics are fully compensated for business interruption.

“It is not right that hard working SMEs that have paid into their insurance schemes for decades now find themselves exposed,” he commented.

He also suggested the Chancellor should “give struggling SMEs the option to turn their loans into grants if their survival depends on it.”

Firms unsure over loan scheme

The Times looks at the Coronavirus Business Interruption Loan Scheme, the Government’s emergency credit initiative for small companies that will provide firms with credit of up to £5m.

Oliver Prill, chief executive of Tide, a digital bank for SMEs, warns that the scheme “will fail a significant proportion of small businesses.”

Frances Coulson, former president of insolvency trade body R3, comments: “It remains to be seen whether real access is given to all businesses efficiently and without lenders imposing or changing terms of existing banking.”

It is noted that some commentators feel the scheme is too similar to the Enterprise Finance Guarantee (EFG) – the loan scheme set up in the wake of the financial crisis, with Mark Stephens, CEO of Allica Bank, saying the EFG was cumbersome and “horrendous” in regard to its bureaucracy.

Pound plunges to 35 year low

The coronavirus outbreak has seen the pound fall to its lowest levels against the dollar since 1985, with sterling falling almost 5% in a single day and declining 12% since the beginning of last week.

Markets continue to be choppy and extremely depressed.

BoE and Treasury to soften Covid-19 impact

The Treasury and the Bank of England (BoE) have suggested fresh measures designed to soften the impact of the coronavirus on the economy may be necessary.

Chancellor Rishi Sunak said the Government is looking to change the law to enable ministers to bail out large companies, telling MPs: “There may well be an argument for the taxpayer, through the state, to step in and provide some short-term liquidity or other financing support to a private business.”

Andrew Bailey, the new governor of the BoE, has warned that the virus could deliver an economic emergency and further measures would be needed to prevent greater disruption.

With the BoE last week cutting interest rates and easing capital requirements on banks, Mr Bailey said: “Those were big steps we and the Government took a week ago. They were the right steps,” adding: “It is unquestionable, though, that things have moved on a lot in the ensuin g period.”

Meanwhile, Mr Bailey has criticised those making money by short-selling company stocks, saying: “Anybody who says, ‘I can make a load of money by shorting’, which might not be frankly in the interest of the economy or the interest of the people, just stop doing what you’re doing.”

FSB welcomes small business support

With Rishi Sunak pledging to do “everything necessary” to help businesses amidst the ongoing coronavirus crisis as he revealed a string of measures including £330bn worth of commercial loan guarantees, a moratorium on business rates for those in the retail, leisure or hospitality sectors and grants of up to £10,000 for firms that qualify for small business rates relief, the Federation of Small Businesses (FSB) has welcomed the Chancellor’s stance.

Claire Reading, the FSB’s development manager for South Yorkshire, East Yorkshire & The Humber, said the Government has “made clear that it will step in and provide small firms with the cash flow they need – whatever it takes,” saying this marks a “hugely important intervention”.

Noting that there will be “difficult days ahead for the small firms that make-up 99% of our business community”, she adds that de livering the pledged measures with no hold ups at banks, local authorities or central government will be key.

Virus could hit 25m jobs

The International Labour Organisation (ILO) has warned that as many as 25m jobs may be lost worldwide as a result of the coronavirus pandemic, saying measures designed to slow the spread of the virus could be “pushing millions of people into unemployment, underemployment and working poverty”.

The ILO called for urgent, large-scale, co-ordinated measures to stimulate economies and support jobs and incomes. Director-general Guy Ryder said: “This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people.”

Do you sell on credit?

With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Those customers will look for the easiest option  to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply on credit, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and  has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has  helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

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


Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Yes, CPA can help you boost your business cash-flow.

Don’t let your bankers control you, contact CPA today.

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

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could provide the cash boost your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit.  You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping business owners  who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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

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See all our latest news here!

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