The Government is to underwrite billions of pounds of bank lending to business in an attempt to get credit flowing to Britain's cash-strapped small firms.
Chancellor George Osborne will set out details of his much-heralded "credit easing" scheme - described as a "game changer" by Treasury sources - when he delivers his autumn statement on the economy on Tuesday.
Under Mr Osborne's plan the Government will underwrite the banks' borrowing on the commercial money markets, enabling them to borrow more cheaply.
The banks will then pass on the savings to the firms they lend to in the form of lower interest rates.
The scheme - said to be similar to the former Labour government's credit guarantee scheme launched in the wake of the 2008 credit crunch - is aimed at helping small and medium enterprises (SMEs).
For a firm currently taking out a £5 million loan at a typical interest rate of 5%, it would mean they would instead be able to borrow at 4%, saving £50,000 a year in interest payments.
Ministers hope to get the scheme up and running by the beginning of next year, with the intention that it will run for the next two years.
Because the loans are not being made directly by the Government they will not appear on the national balance sheet and taxpayer will only become liable if the banks fail to pay their debts.
A Treasury source said: "We all know that the cost of finance for smaller businesses has risen following the financial crisis. It's a problem people have been trying to solve since 2008, which is why these new schemes are much more radical than anything that has gone before. They should be a game changer for credit for small companies by cutting the cost of finance and over time opening up new options for how it is raised."
In a further move, Mr Osborne will announce that regulated rail fares - such as peak fares and season tickets - will rise by 6.2% next year (RPI inflation of 5.2% +1%) rather than the planned 8.2% (RPI +1%) increase.
Courtesy of London Evening Standard
Monday 28 November 2011
Thursday 17 November 2011
"Billions more likely in QE as Mervyn King sounds new alert"
The Bank of England is gearing up to pump billions more into Britain's economy amid further dire warnings from Governor Sir Mervyn King over the health of the recovery.
Today's quarterly forecasts underlined worsening gloom for the UK as a result of Europe's debt crisis, paving the way for more quantitative easing to kick-start a stalling economy, possibly as soon as next month.
The Bank is already pumping an extra £75 billion into the economy after its latest round of QE last month. But it now reckons prospects are so poor inflation will still come in below its 2% target in two years' time. The latest forecasts signal growth of just 1% next year, with inflation falling rapidly from the current 5% to about 1.2% by 2013.
Interest rates have been at their current 0.5% record low since March 2009, when the Bank launched its first £200 billion round of QE.
Capital Economics economist Samuel Tombs said: "The report both endorses market expectations that rates will stay on hold for the foreseeable future and suggests that more policy loosening will yet be needed.
"What's more, even the MPC's [Bank of England monetary policy committee's] downgraded growth forecasts still look optimistic to us - we expect zero growth next year. We had pencilled in another £75 billion of QE in February, but if the economic news over the next couple of weeks remains weak, the MPC might feel compelled to announce extra support as soon as next month."
The Governor again underlined that Europe remains the UK's biggest threat as the woes of the nation's biggest export market hamper efforts at recovery. He stressed today that the Bank's forecasts do not fully factor in any substantial escalation of the crisis, implying that there could be even worse pain ahead for the UK economy
"The uncertainty that has been created in the European and world economy by recent events must have, or is likely to have, some potential impact on the pace at which businesses will make investment projects - will they postpone projects - and on the pace of household spending. That is almost impossible to forecast, but it is something that we shall watch very carefully," King warned.
The eurozone managed growth of just 0.2% between July and September, but is set to fall back into recession in the final quarter with a knock-on impact on the UK.
Markit economist Chris Williamson warned: "There is clearly a significant risk of a contraction in the final quarter of this year and early next year, with a steep downturn possible if the problems in the euro area worsen."
Courtesy of London Evening Post
Today's quarterly forecasts underlined worsening gloom for the UK as a result of Europe's debt crisis, paving the way for more quantitative easing to kick-start a stalling economy, possibly as soon as next month.
The Bank is already pumping an extra £75 billion into the economy after its latest round of QE last month. But it now reckons prospects are so poor inflation will still come in below its 2% target in two years' time. The latest forecasts signal growth of just 1% next year, with inflation falling rapidly from the current 5% to about 1.2% by 2013.
Interest rates have been at their current 0.5% record low since March 2009, when the Bank launched its first £200 billion round of QE.
Capital Economics economist Samuel Tombs said: "The report both endorses market expectations that rates will stay on hold for the foreseeable future and suggests that more policy loosening will yet be needed.
"What's more, even the MPC's [Bank of England monetary policy committee's] downgraded growth forecasts still look optimistic to us - we expect zero growth next year. We had pencilled in another £75 billion of QE in February, but if the economic news over the next couple of weeks remains weak, the MPC might feel compelled to announce extra support as soon as next month."
The Governor again underlined that Europe remains the UK's biggest threat as the woes of the nation's biggest export market hamper efforts at recovery. He stressed today that the Bank's forecasts do not fully factor in any substantial escalation of the crisis, implying that there could be even worse pain ahead for the UK economy
"The uncertainty that has been created in the European and world economy by recent events must have, or is likely to have, some potential impact on the pace at which businesses will make investment projects - will they postpone projects - and on the pace of household spending. That is almost impossible to forecast, but it is something that we shall watch very carefully," King warned.
The eurozone managed growth of just 0.2% between July and September, but is set to fall back into recession in the final quarter with a knock-on impact on the UK.
Markit economist Chris Williamson warned: "There is clearly a significant risk of a contraction in the final quarter of this year and early next year, with a steep downturn possible if the problems in the euro area worsen."
Courtesy of London Evening Post
Wednesday 2 November 2011
"Greece fears and UK data put markets into tailspin"
Panic over a nightmare Greek default gripped global stock markets today as dire news from Britain's manufacturers threatened to derail the recovery.
Premier George Panpandreou's shock decision to put Greece's latest bailout to a referendum triggered fears that the beleaguered nation could default and crash out of the euro if the deal is rejected by the people.
The potential collapse of the rescue sent markets into a tailspin with London's FTSE 100 benchmark falling 2.8%, and France's CAC 40 and Germany's Dax both tumbling by 4%. The news came as data showed the UK achieved growth of 0.5% between July and September. However, the figures also revealed the biggest slump in manufacturing for more than two years, stoking fears that the UK's fragile recovery could crash again in the final quarter of the year.
European leaders agreed a second €130 billion (£112 billion) bailout for Greece ¬- including a 50% hit for private bond investors - last week. But the bailout also spells more pain for the hard-pressed population and a recent poll signalled some 60% of Greeks could spurn the deal in what will effectively become a referendum on their membership of the single currency.Greece is already dependent on funds from the 'troika' of the European Central Bank, IMF and European Union to prevent a catastrophic default.
If the nation votes no, Citigroup analyst Jurgen Michels warned: "Greece is likely to run out of funding quickly and would probably move into a disorderly default procedure.
"As Greek banks would run out of collateral, they would also lose the funding of the ECB. As a consequence, Greece would probably be forced to leave the Monetary Union."
The fresh eurozone chaos sent the borrowing costs of debt-laden Italy soaring to fresh records today, triggering more bond-buying from the ECB.
The impact of the crisis was felt again by British manufacturers in October, according to the Chartered Institute for Purchasing and Supply's latest survey. The index, where a score over 50 indicates growth, plunged to 47.4 as new orders shrank at their fastest pace since March 2009 and export orders shrank for the third month in a row.
Markit chief economist Chris Williamson warned of aggressive job cutting from manufacturers to come as fears over Italy and a Greek referendum intensify Europe's woes. He said: "The UK economy faces a significant risk of contracting in the final quarter of the year."
Courtesy of London Evening Standard
Premier George Panpandreou's shock decision to put Greece's latest bailout to a referendum triggered fears that the beleaguered nation could default and crash out of the euro if the deal is rejected by the people.
The potential collapse of the rescue sent markets into a tailspin with London's FTSE 100 benchmark falling 2.8%, and France's CAC 40 and Germany's Dax both tumbling by 4%. The news came as data showed the UK achieved growth of 0.5% between July and September. However, the figures also revealed the biggest slump in manufacturing for more than two years, stoking fears that the UK's fragile recovery could crash again in the final quarter of the year.
European leaders agreed a second €130 billion (£112 billion) bailout for Greece ¬- including a 50% hit for private bond investors - last week. But the bailout also spells more pain for the hard-pressed population and a recent poll signalled some 60% of Greeks could spurn the deal in what will effectively become a referendum on their membership of the single currency.Greece is already dependent on funds from the 'troika' of the European Central Bank, IMF and European Union to prevent a catastrophic default.
If the nation votes no, Citigroup analyst Jurgen Michels warned: "Greece is likely to run out of funding quickly and would probably move into a disorderly default procedure.
"As Greek banks would run out of collateral, they would also lose the funding of the ECB. As a consequence, Greece would probably be forced to leave the Monetary Union."
The fresh eurozone chaos sent the borrowing costs of debt-laden Italy soaring to fresh records today, triggering more bond-buying from the ECB.
The impact of the crisis was felt again by British manufacturers in October, according to the Chartered Institute for Purchasing and Supply's latest survey. The index, where a score over 50 indicates growth, plunged to 47.4 as new orders shrank at their fastest pace since March 2009 and export orders shrank for the third month in a row.
Markit chief economist Chris Williamson warned of aggressive job cutting from manufacturers to come as fears over Italy and a Greek referendum intensify Europe's woes. He said: "The UK economy faces a significant risk of contracting in the final quarter of the year."
Courtesy of London Evening Standard
Wednesday 12 October 2011
"UK recovery weak, warns think-tank"
A leading think-tank has warned the economic recovery in the UK is the weakest of any since the end of the First World War.
The warning came as the National Institute of Economic and Social Research (NIESR) said its monthly estimates suggest gross domestic product (GDP) grew at 0.5% in the three months to September, compared to a revised 0.4% in the quarter to August.
NIESR said the level of GDP in the period is still 4% below the pre-recession peak - suggesting the recovery is the weakest since 1918.
The figures for the third quarter may surprise some economists who have forecast near stagnant growth between July and September.
The figures come amid deepening fears over the health of the country's recovery and after the Bank of England announced plans to pump an extra £75 billion in to the economy to stimulate growth.
If NIESR's estimate is correct, the third quarter growth of 0.5% would represent a solid bounceback from the 0.1% recorded between April and June. The third-quarter GDP figure will be confirmed by the Office for National Statistics on November 1.
The think-tank still warned growth had been "anaemic" in the UK over the last year.
A Treasury spokesman said the figures supported the Government's case for its deficit-busting austerity measures.
He said: "These figures show that, while the UK cannot isolate itself from what is happening to our major trading partners, the action being taken by the Government to tackle the deficit and rebalance the economy is helping the UK economy to continue to grow.
"Other data published today similarly shows that the economy is recovering but that the financial turbulence in the Eurozone and the weaker outlook for global growth will mean that the recovery will be choppy."
Courtesy of The Evening Standard
The warning came as the National Institute of Economic and Social Research (NIESR) said its monthly estimates suggest gross domestic product (GDP) grew at 0.5% in the three months to September, compared to a revised 0.4% in the quarter to August.
NIESR said the level of GDP in the period is still 4% below the pre-recession peak - suggesting the recovery is the weakest since 1918.
The figures for the third quarter may surprise some economists who have forecast near stagnant growth between July and September.
The figures come amid deepening fears over the health of the country's recovery and after the Bank of England announced plans to pump an extra £75 billion in to the economy to stimulate growth.
If NIESR's estimate is correct, the third quarter growth of 0.5% would represent a solid bounceback from the 0.1% recorded between April and June. The third-quarter GDP figure will be confirmed by the Office for National Statistics on November 1.
The think-tank still warned growth had been "anaemic" in the UK over the last year.
A Treasury spokesman said the figures supported the Government's case for its deficit-busting austerity measures.
He said: "These figures show that, while the UK cannot isolate itself from what is happening to our major trading partners, the action being taken by the Government to tackle the deficit and rebalance the economy is helping the UK economy to continue to grow.
"Other data published today similarly shows that the economy is recovering but that the financial turbulence in the Eurozone and the weaker outlook for global growth will mean that the recovery will be choppy."
Courtesy of The Evening Standard
Friday 7 October 2011
"Banks and building societies hit by Moody's downgrades"
Britain's beleaguered banks and building societies were dealt another blow today after a debt agency said the decreased likelihood of Government backing made them less credit-worthy.
Lloyds Banking Group, Santander UK, Royal Bank of Scotland, Co-operative Bank, Nationwide and seven smaller building societies saw their credit ratings slashed by Moody's Investor Service.
The move - which triggered a fall in banking shares on the London Stock Exchange - means the cost of borrowing for the affected financial institutions is likely to increase.
RBS, which saw its shares drop more than 3%, also came under pressure after a report in the Financial Times suggested it could require a further bailout from the Government.
The bank said it was "disappointed" that Moody's had not acknowledged its progress in strengthening its finances since 2008.
Moody's stressed its review did not reflect a deterioration in the financial strength of the banking system or the Government.
The move reflects a shift in Government policy to transfer risk from taxpayers to creditors, rather than deepening problems within the banks.
Elisabeth Rudman, senior vice president of the financial institutions group at Moody's, said: "Moody's has lowered the amount of support it incorporates into the institutions' ratings to reflect the overall weakening support environment."
Moody's said the downgrade comes after Government support was removed for the seven small institutions, which include the Norwich & Peterborough, Principality and Yorkshire building societies.
Elsewhere, support was reduced for the larger "more systemically important" institutions including Lloyds and RBS.
While the Government is "likely to continue to provide some level of support" to those banks, it is also "more likely now to allow smaller institutions to fail" if they become financially troubled.
Lloyds, Santander and Co-op Bank have had their ratings downgraded one notch, RBS and Nationwide a two-notch revision, while the seven building societies saw ratings cut by between one and five places.
However, Moody's said on the basis of stand-alone financial strength, five institutions - Co-op, Nationwide, Santander and Yorkshire and Principality building societies - have had their ratings increased.
Taxpayer-backed Lloyds, which is 40.2% state-owned, stressed that its stand-alone rating had not changed.
A Lloyds spokesman said: "It is important to note that both the stand-alone rating and short-term ratings remain unchanged. We believe this change will have minimal impact on our funding costs."
Meanwhile, it is understood RBS, which is 83% owned by the taxpayer, could be liable for another bailout if it fails a rerun of European banking stress tests.
RBS, which received the biggest bailout of the 2008 financial crisis, could see its protective cash buffers fall below regulators' requirements after exposure to eurozone debt is taken into account.
RBS has reduced its exposure to debt-laden nations including Greece and Italy, but it is feared that once so-called "haircuts" - effectively write-offs - are given, the bank will fail to keep up.
Courtesy of London Evening Standard
Lloyds Banking Group, Santander UK, Royal Bank of Scotland, Co-operative Bank, Nationwide and seven smaller building societies saw their credit ratings slashed by Moody's Investor Service.
The move - which triggered a fall in banking shares on the London Stock Exchange - means the cost of borrowing for the affected financial institutions is likely to increase.
RBS, which saw its shares drop more than 3%, also came under pressure after a report in the Financial Times suggested it could require a further bailout from the Government.
The bank said it was "disappointed" that Moody's had not acknowledged its progress in strengthening its finances since 2008.
Moody's stressed its review did not reflect a deterioration in the financial strength of the banking system or the Government.
The move reflects a shift in Government policy to transfer risk from taxpayers to creditors, rather than deepening problems within the banks.
Elisabeth Rudman, senior vice president of the financial institutions group at Moody's, said: "Moody's has lowered the amount of support it incorporates into the institutions' ratings to reflect the overall weakening support environment."
Moody's said the downgrade comes after Government support was removed for the seven small institutions, which include the Norwich & Peterborough, Principality and Yorkshire building societies.
Elsewhere, support was reduced for the larger "more systemically important" institutions including Lloyds and RBS.
While the Government is "likely to continue to provide some level of support" to those banks, it is also "more likely now to allow smaller institutions to fail" if they become financially troubled.
Lloyds, Santander and Co-op Bank have had their ratings downgraded one notch, RBS and Nationwide a two-notch revision, while the seven building societies saw ratings cut by between one and five places.
However, Moody's said on the basis of stand-alone financial strength, five institutions - Co-op, Nationwide, Santander and Yorkshire and Principality building societies - have had their ratings increased.
Taxpayer-backed Lloyds, which is 40.2% state-owned, stressed that its stand-alone rating had not changed.
A Lloyds spokesman said: "It is important to note that both the stand-alone rating and short-term ratings remain unchanged. We believe this change will have minimal impact on our funding costs."
Meanwhile, it is understood RBS, which is 83% owned by the taxpayer, could be liable for another bailout if it fails a rerun of European banking stress tests.
RBS, which received the biggest bailout of the 2008 financial crisis, could see its protective cash buffers fall below regulators' requirements after exposure to eurozone debt is taken into account.
RBS has reduced its exposure to debt-laden nations including Greece and Italy, but it is feared that once so-called "haircuts" - effectively write-offs - are given, the bank will fail to keep up.
Courtesy of London Evening Standard
Thursday 22 September 2011
Asset Seizure
Asset Seizure - Seizing an aircraft.
High Court Enforcement Officers (HCEOs) are entitled to seize aircraft using a writ of Fi Fa (fieri facias) to enforce a judgment.
A client had a judgment against a private jet charter company operating from Airport in the UK and instructed for it to be enforced via a writ of Fi Fa. A officer attended and seized one of the aircraft belonging to the debtor in the hangar.
When seizing an aircraft, the officer will do the following:
• Fix a copy of the writ on the inside of the aircraft (in the cockpit) and on the outside, to let the pilot and anyone entering the plane know that it has been seized
• Tell airport security that the plane has been seized
• Tell the airport authorities not to accept any flight plans for that aircraft
• Immobilise the plane with chocks
The officer will also need to secure all the documentation for the plane, including full service and maintenance records. These service records are normally kept where the plane is serviced; without them, the plane will merely sell at scrap value. A copy of the insurance certificate, registration details and airworthiness certificate should all be kept in the cockpit.
In this particular case the debtor paid in full the same day by bank draft, so once funds were received, the private jet was released from seizure
High Court Enforcement Officers (HCEOs) are entitled to seize aircraft using a writ of Fi Fa (fieri facias) to enforce a judgment.
A client had a judgment against a private jet charter company operating from Airport in the UK and instructed for it to be enforced via a writ of Fi Fa. A officer attended and seized one of the aircraft belonging to the debtor in the hangar.
When seizing an aircraft, the officer will do the following:
• Fix a copy of the writ on the inside of the aircraft (in the cockpit) and on the outside, to let the pilot and anyone entering the plane know that it has been seized
• Tell airport security that the plane has been seized
• Tell the airport authorities not to accept any flight plans for that aircraft
• Immobilise the plane with chocks
The officer will also need to secure all the documentation for the plane, including full service and maintenance records. These service records are normally kept where the plane is serviced; without them, the plane will merely sell at scrap value. A copy of the insurance certificate, registration details and airworthiness certificate should all be kept in the cockpit.
In this particular case the debtor paid in full the same day by bank draft, so once funds were received, the private jet was released from seizure
Wednesday 21 September 2011
Local Office Contact Telephone Numbers
London 0207 1835 192
Reading 0118 3240 335
Birmingham 0121 2850 737
Liverpool 0151 3292 254
Nottingham 0115 8240 289
Reading 0118 3240 335
Birmingham 0121 2850 737
Liverpool 0151 3292 254
Nottingham 0115 8240 289
"Recession fears amid IMF downgrade
Fears of a double-dip recession have been fuelled after the International Monetary Fund slashed the UK's growth forecast and warned the global economy is in a "dangerous new phase".
The UK will see gross domestic product grow 1.1% in 2011, compared with the IMF's latest World Economic Outlook report in April of 1.7%, and by 1.6% in 2012, compared with 2.3%.
The forecasts for the UK in 2011 fall behind projections for Germany, France, the eurozone, US and Canada.
The IMF said the US economy could be weak for years to come and warned that policymakers in the country must balance support for the economy with fiscal tightening.
The organisation, now led by former French finance minister Christine Lagarde, also said the forecasts were dependent on the eurozone debt crisis being contained.
The downgrade is the latest blow to the UK's recovery prospects after the influential think-tank OECD cut its estimate for growth amid a raft of a disappointing economic data.
The Treasury said the Government remains committed to its tough programme of spending cuts and tax reform while the unions and opposition called on Chancellor George Osborne to rethink his plans.
The gloomy outlook is unlikely to deter Mr Osborne from his deficit-busting fiscal measures as the IMF has previously given full backing to his austerity measures.
A report that ministers were contemplating channelling £5 billion extra towards infrastructure projects such as roads, railways and superfast broadband networks was denied by the Treasury.
The BBC said that the Government believed the boost could be implemented within its current strategy as fiscal targets were based around current not capital spending. A Treasury spokesman said: "The Government has set out its spending plans."
Courtesy of London Evening Standard http://www.thisislondon.co.uk/standard/
The UK will see gross domestic product grow 1.1% in 2011, compared with the IMF's latest World Economic Outlook report in April of 1.7%, and by 1.6% in 2012, compared with 2.3%.
The forecasts for the UK in 2011 fall behind projections for Germany, France, the eurozone, US and Canada.
The IMF said the US economy could be weak for years to come and warned that policymakers in the country must balance support for the economy with fiscal tightening.
The organisation, now led by former French finance minister Christine Lagarde, also said the forecasts were dependent on the eurozone debt crisis being contained.
The downgrade is the latest blow to the UK's recovery prospects after the influential think-tank OECD cut its estimate for growth amid a raft of a disappointing economic data.
The Treasury said the Government remains committed to its tough programme of spending cuts and tax reform while the unions and opposition called on Chancellor George Osborne to rethink his plans.
The gloomy outlook is unlikely to deter Mr Osborne from his deficit-busting fiscal measures as the IMF has previously given full backing to his austerity measures.
A report that ministers were contemplating channelling £5 billion extra towards infrastructure projects such as roads, railways and superfast broadband networks was denied by the Treasury.
The BBC said that the Government believed the boost could be implemented within its current strategy as fiscal targets were based around current not capital spending. A Treasury spokesman said: "The Government has set out its spending plans."
Courtesy of London Evening Standard http://www.thisislondon.co.uk/standard/
Tuesday 20 September 2011
"Britain could face decade of stagnation, says Vince Cable"
Business Secretary Vince Cable has refused to rule out a second financial crash and issued a stark warning that Britain could face a Japan-style lost decade of stagnant growth.
The euro-zone crisis, combined with the stalling of major economies, means the world is in "very dangerous terrain", he told a fringe event at the Liberal Democrat conference in Birmingham.
The comments followed the Cabinet minister's keynote speech, in which he insisted the Government needed to wage the "economic equivalent of war" on the downturn.
Invoking the example of Winston Churchill's coalition against the Nazis, he said: "You could say: that was war, that's different.
"Yes, it is different. But we now face a crisis that is the economic equivalent of war. This is not a time for business as usual, or politics as usual."
Mr Cable went further last night, raising concerns that the UK could suffer a spell in the economic doldrums like Japan in the 1990s.
The prospect of a second financial crash could not be ruled out, although he stressed that was not a "mainstream probability".
"What could happen? The optimistic view is we get our public finances in order, we do what is beginning to become apparent, which is we rebalance towards manufacturing, exports, investment, green technology... and (there is) quite a lot of evidence that some of those things are happening."
But he went on: "There is, increasingly, a kind of middle-level scenario which says 'well, actually it's much more difficult than that and this problem is going to linger for some years' - kind of the Japan story, possibly.
"It's possible. I'm not saying it's likely but it could happen. And of course the people who really want to frighten themselves think that there could be another financial crisis as well.
"We hope not, but it could happen if something goes badly wrong with the whole of the euro-zone and not just Greece - Greece is a very small country - but with Italy and Spain, and this affects the banks' assets in those countries and goes through our system, particularly in Ireland.
"All kind of things could happen but I think that's a tail risk, I don't think that's a mainstream probability."
Mr Cable said Europe was in an "existential crisis" and "as the European party, it's down to us as much as anybody to say 'well, how the hell do we get out of this? How do we relate to this thing?'. We can't just sit as bystanders."
He insisted there should be no "backward movement" by Britain from ties with the EU. Despite spelling out such disastrous scenarios and stressing the need for the coalition to work together "in the national interest", Mr Cable delivered a series of stinging jibes against Tory colleagues.
Those targeted in his speech included Communities Secretary Eric Pickles and David Cameron's policy guru Steve Hilton.
Conservative calls for the 50p top rate tax to be axed were "childish fantasy" that would fail to attract back British billionaires from their Caribbean bolt-holes, he said.
He also blamed his coalition partners for a failure to rein in bankers' bonuses. Party leader Nick Clegg put in a tetchy performance at a question and answer session with members.
Attempting to quell lingering hostility to the power-sharing deal, he urged activists to stop "beating themselves up" over it.
He dismissed critics who accused him of being a traitor or betraying Lib Dem principles as "ridiculous". Instead they should applaud him for putting national interest ahead of narrow political advantage.
He insisted that working together in coalition did not mean Lib Dems had to avoid being "rude" about the Tories at conference.
Today Chris Huhne will take to the conference platform to announce a crackdown on the biggest energy companies and pledge to help customers save cash.
In a keynote speech to Liberal Democrat activists, he will say ministers are poised to order energy suppliers to pay customers unlimited refunds to compensate for "bad behaviour".
He will also unveil tough new powers for energy watchdog Ofgem that will allow it to stop companies blocking reforms.
"We are determined to get tough with the big six energy companies to ensure that the consumer gets the best possible deal," he will say.
"We want simpler tariffs. Requiring energy companies to tell you whether you could buy more cheaply on another tariff. And you could save real money.
"I want to help households save money, simpler charging, clearer bills, quicker switching and more consumer-friendly firms - co-ops, partnerships, consumer charities - dedicated to doing the shopping around for consumers to make sure that you are always on the best deal, even if you do not have time to check yourself.
"I believe Ofgem should have new powers to secure redress for consumers - money back for bad behaviour - and we will stop the energy companies from blocking action by Ofgem, which can delay matters by a year."
Courtesy of London Evening Standard http://www.thisislondon.co.uk/standard/
The euro-zone crisis, combined with the stalling of major economies, means the world is in "very dangerous terrain", he told a fringe event at the Liberal Democrat conference in Birmingham.
The comments followed the Cabinet minister's keynote speech, in which he insisted the Government needed to wage the "economic equivalent of war" on the downturn.
Invoking the example of Winston Churchill's coalition against the Nazis, he said: "You could say: that was war, that's different.
"Yes, it is different. But we now face a crisis that is the economic equivalent of war. This is not a time for business as usual, or politics as usual."
Mr Cable went further last night, raising concerns that the UK could suffer a spell in the economic doldrums like Japan in the 1990s.
The prospect of a second financial crash could not be ruled out, although he stressed that was not a "mainstream probability".
"What could happen? The optimistic view is we get our public finances in order, we do what is beginning to become apparent, which is we rebalance towards manufacturing, exports, investment, green technology... and (there is) quite a lot of evidence that some of those things are happening."
But he went on: "There is, increasingly, a kind of middle-level scenario which says 'well, actually it's much more difficult than that and this problem is going to linger for some years' - kind of the Japan story, possibly.
"It's possible. I'm not saying it's likely but it could happen. And of course the people who really want to frighten themselves think that there could be another financial crisis as well.
"We hope not, but it could happen if something goes badly wrong with the whole of the euro-zone and not just Greece - Greece is a very small country - but with Italy and Spain, and this affects the banks' assets in those countries and goes through our system, particularly in Ireland.
"All kind of things could happen but I think that's a tail risk, I don't think that's a mainstream probability."
Mr Cable said Europe was in an "existential crisis" and "as the European party, it's down to us as much as anybody to say 'well, how the hell do we get out of this? How do we relate to this thing?'. We can't just sit as bystanders."
He insisted there should be no "backward movement" by Britain from ties with the EU. Despite spelling out such disastrous scenarios and stressing the need for the coalition to work together "in the national interest", Mr Cable delivered a series of stinging jibes against Tory colleagues.
Those targeted in his speech included Communities Secretary Eric Pickles and David Cameron's policy guru Steve Hilton.
Conservative calls for the 50p top rate tax to be axed were "childish fantasy" that would fail to attract back British billionaires from their Caribbean bolt-holes, he said.
He also blamed his coalition partners for a failure to rein in bankers' bonuses. Party leader Nick Clegg put in a tetchy performance at a question and answer session with members.
Attempting to quell lingering hostility to the power-sharing deal, he urged activists to stop "beating themselves up" over it.
He dismissed critics who accused him of being a traitor or betraying Lib Dem principles as "ridiculous". Instead they should applaud him for putting national interest ahead of narrow political advantage.
He insisted that working together in coalition did not mean Lib Dems had to avoid being "rude" about the Tories at conference.
Today Chris Huhne will take to the conference platform to announce a crackdown on the biggest energy companies and pledge to help customers save cash.
In a keynote speech to Liberal Democrat activists, he will say ministers are poised to order energy suppliers to pay customers unlimited refunds to compensate for "bad behaviour".
He will also unveil tough new powers for energy watchdog Ofgem that will allow it to stop companies blocking reforms.
"We are determined to get tough with the big six energy companies to ensure that the consumer gets the best possible deal," he will say.
"We want simpler tariffs. Requiring energy companies to tell you whether you could buy more cheaply on another tariff. And you could save real money.
"I want to help households save money, simpler charging, clearer bills, quicker switching and more consumer-friendly firms - co-ops, partnerships, consumer charities - dedicated to doing the shopping around for consumers to make sure that you are always on the best deal, even if you do not have time to check yourself.
"I believe Ofgem should have new powers to secure redress for consumers - money back for bad behaviour - and we will stop the energy companies from blocking action by Ofgem, which can delay matters by a year."
Courtesy of London Evening Standard http://www.thisislondon.co.uk/standard/
Monday 18 July 2011
"Insolvency rates for small companies down on last year"
Are you trading with a company that is facing insolvency? Prehaps you should contact us to fiond out? www.icepacc.com
Fewer UK firms with between 50 and 500 employees are failing now than at the same time last year, according to new data.
The insolvency rate among firms with 101 to 500 employees more than halved between June 2010 and June this year (from 0.17% to 0.08%), the Insolvency Index by information services company Experian found.
And businesses employing 51 to 100 employees saw failure rates drop from 0.23% in June 2010 to 0.19% last month.
Max Firth, managing director for business information services at Experian, said: "June's data indicates that the UK's business community as a whole is generally stable, however it also points to a change in circumstances for different sized businesses.
"The largest companies have experienced a turnaround in fortunes and now the larger mid-sized businesses are following suit with a significant improvement since last year."
The East Midlands was the region which improved the most (dropping from 0.11% to 0.09%), while the South West had the lowest rate of failures with just 0.07% of its business population becoming insolvent last month.
Businesses in the North West (up to 0.12%) and Scotland (up to 0.1%), on the other hand, both experienced an increase.
The rate of failure for UK businesses as a whole remained the same as last year at 0.09%.
Building materials and building and construction were the industries that fared worst, with failure rates of 0.27% and 0.18% respectively
This extract was taken from the London Evening Standard. All rights are reserved to the London Evening Standard
Fewer UK firms with between 50 and 500 employees are failing now than at the same time last year, according to new data.
The insolvency rate among firms with 101 to 500 employees more than halved between June 2010 and June this year (from 0.17% to 0.08%), the Insolvency Index by information services company Experian found.
And businesses employing 51 to 100 employees saw failure rates drop from 0.23% in June 2010 to 0.19% last month.
Max Firth, managing director for business information services at Experian, said: "June's data indicates that the UK's business community as a whole is generally stable, however it also points to a change in circumstances for different sized businesses.
"The largest companies have experienced a turnaround in fortunes and now the larger mid-sized businesses are following suit with a significant improvement since last year."
The East Midlands was the region which improved the most (dropping from 0.11% to 0.09%), while the South West had the lowest rate of failures with just 0.07% of its business population becoming insolvent last month.
Businesses in the North West (up to 0.12%) and Scotland (up to 0.1%), on the other hand, both experienced an increase.
The rate of failure for UK businesses as a whole remained the same as last year at 0.09%.
Building materials and building and construction were the industries that fared worst, with failure rates of 0.27% and 0.18% respectively
This extract was taken from the London Evening Standard. All rights are reserved to the London Evening Standard
Monday 11 July 2011
Bespoke Credit Control Solutions
I Credit Enforcement in conjunction with the ICE PACC system can offer bespoke Credit Control to its Clients.
Our latest client has tailored his package so that we facilitate the following on his behalf.
• We have tailored his terms of service, so they are specific to his industry and facilitate both secured and unsecured credit.
• We raise all invoices on the Clients behalf and submit them with our company branding.
• All monies are paid into our Clients deposit account and then forwarded to the Client’s current account accordingly.
• All late payments are managed by I Credit Enforcement.
• All recovery costs are levied against the debtor
• The Client is able to track payment and account activity simply be accessing their account online.
Our Client is now able to focus on his business, whilst we effectively manage the credit control. Clients appreciate the professional and efficient approach that is both transparent and efficient through out.
If you would like an online demonstration that contact us directly.
Our latest client has tailored his package so that we facilitate the following on his behalf.
• We have tailored his terms of service, so they are specific to his industry and facilitate both secured and unsecured credit.
• We raise all invoices on the Clients behalf and submit them with our company branding.
• All monies are paid into our Clients deposit account and then forwarded to the Client’s current account accordingly.
• All late payments are managed by I Credit Enforcement.
• All recovery costs are levied against the debtor
• The Client is able to track payment and account activity simply be accessing their account online.
Our Client is now able to focus on his business, whilst we effectively manage the credit control. Clients appreciate the professional and efficient approach that is both transparent and efficient through out.
If you would like an online demonstration that contact us directly.
Friday 11 March 2011
Credit Control – The Cost
Many companies choose not to outsource their credit control in any way in order to make financial savings, but does this really work?
I recently spoke to a small business owner who proudly told me that he didn’t employ anyone to do his credit control and that he did it himself thus making massive annual savings. I proceeded to ask him how many days a month he spent on this particular task, to which he replied two! I then asked him how much his normal day rate was within his specific trade, to which he replied £750.00!
I then suggested that by doing this he was potentially reducing his monthly income by £1,500.00 and annually £18,000.00. He, after a moments consideration, commented that perhaps this wasn’t the cheapest option but gave him greater reassurance about his companies financial welfare.
What did I learn from this? Well primarily small business owners are reluctant to invest money in credit control as they see it as a cost rather than an investment. Secondly business owners don’t really appreciate the real cost of their time. Finally small business owners want to feel in control, live and die by their own sword, sometimes at their company’s detriment due to their reluctance in delegating tasks.
The ICE PACC credit control and collections system is a cost effective tool for business users to use that will save your time, and money.
At 41p per day, per client this unique online collections systems key features include, credit risk rating, comprehensive terms for your client, online credit control system, red letter service and free pre legal recovery that levies all costs at the debtor not you.
So when counting the true cost of your credit control, consider using ICE PACC in order to help grow your business and reduce your costs.
For more information please contact us at info@icepacc.com
I recently spoke to a small business owner who proudly told me that he didn’t employ anyone to do his credit control and that he did it himself thus making massive annual savings. I proceeded to ask him how many days a month he spent on this particular task, to which he replied two! I then asked him how much his normal day rate was within his specific trade, to which he replied £750.00!
I then suggested that by doing this he was potentially reducing his monthly income by £1,500.00 and annually £18,000.00. He, after a moments consideration, commented that perhaps this wasn’t the cheapest option but gave him greater reassurance about his companies financial welfare.
What did I learn from this? Well primarily small business owners are reluctant to invest money in credit control as they see it as a cost rather than an investment. Secondly business owners don’t really appreciate the real cost of their time. Finally small business owners want to feel in control, live and die by their own sword, sometimes at their company’s detriment due to their reluctance in delegating tasks.
The ICE PACC credit control and collections system is a cost effective tool for business users to use that will save your time, and money.
At 41p per day, per client this unique online collections systems key features include, credit risk rating, comprehensive terms for your client, online credit control system, red letter service and free pre legal recovery that levies all costs at the debtor not you.
So when counting the true cost of your credit control, consider using ICE PACC in order to help grow your business and reduce your costs.
For more information please contact us at info@icepacc.com
Friday 4 March 2011
Thank ICE PACC its Friday
For small businesses Fridays can be the most stressful day of the week. Traditionally Fridays are wages day and therefore you need to ensure that sufficient funds are in your account to cover the cost of your wages. Whilst your business balance sheet may be in order your cash flow might be suffering due to late payments.
Late payments can have a horrid effect on a business in the short term and whilst you are confident that you will receive the monies in the long term this does not help you with the immediate lack of funds. Therefore you scrape and borrow sufficient monies to cover your costs in the vain hope that Monday will be a brighter day. At the same time you promise yourself that you won’t allow your business to be in the same situation again in the future, well not until next Friday at least!!
Plan your cash flow and ensure that your credit control policy protects you from the opportunity of late payment.
Quite often late payments are due to the creditor’s reluctance to ensure that their customers pay on time. Whether it is because they don’t want to have an awkward conversation or alternatively don’t want to upset the customer, in case it has a detrimental effect on future business. However this may, as a result of the immediate constraints on your cash flow, prevent your business from being able to trade and thus cause its ultimate demise.
A comprehensive credit control management policy can prevent this from happening to your business. The ICE PACC is a unique online credit control tool that incorporates a host of unique functions including free pre legal recovery. The system is based on ensuring that your credit control process assists your cash flow and prevents bad debt
For further information about the ICE PACC contact us at info@icepacc.com
Late payments can have a horrid effect on a business in the short term and whilst you are confident that you will receive the monies in the long term this does not help you with the immediate lack of funds. Therefore you scrape and borrow sufficient monies to cover your costs in the vain hope that Monday will be a brighter day. At the same time you promise yourself that you won’t allow your business to be in the same situation again in the future, well not until next Friday at least!!
Plan your cash flow and ensure that your credit control policy protects you from the opportunity of late payment.
Quite often late payments are due to the creditor’s reluctance to ensure that their customers pay on time. Whether it is because they don’t want to have an awkward conversation or alternatively don’t want to upset the customer, in case it has a detrimental effect on future business. However this may, as a result of the immediate constraints on your cash flow, prevent your business from being able to trade and thus cause its ultimate demise.
A comprehensive credit control management policy can prevent this from happening to your business. The ICE PACC is a unique online credit control tool that incorporates a host of unique functions including free pre legal recovery. The system is based on ensuring that your credit control process assists your cash flow and prevents bad debt
For further information about the ICE PACC contact us at info@icepacc.com
Tuesday 1 March 2011
SAGE Update
ICE PACC are pleased to announce that this unique and innovative credit control system is now able to upload SAGE reports in order to make the system even easier for its clients.
The innovative credit control management tool that promotes due diligence and focuses on collections whilst offering free pre-legal recovery is looking forward to a prosperous 2011.
Credit Control often is often neglected until of course an payment of an invoice is rebuffed.
If your interested in finding out more about the ICE PACC then contact us directly at info@icepacc.com
The innovative credit control management tool that promotes due diligence and focuses on collections whilst offering free pre-legal recovery is looking forward to a prosperous 2011.
Credit Control often is often neglected until of course an payment of an invoice is rebuffed.
If your interested in finding out more about the ICE PACC then contact us directly at info@icepacc.com
Proof of Debt – The Paper Trail
Many of the cases that are submitted to our collections department lack any real evidence of the suggested debt in the first instance.
We are frequently bombarded with cases that have only the briefest paper trail of:
• An email confirming the order but not the details of.
• An Invoice that has been submitted and later rebuffed
• A number of emails detailing why the debtor is not going to pay
Consequently this weakens the case when attempting to recover the monies and forces us to apply to the courts in order to hopefully pass judgment. Of course for the creditor to be successful in court we have to hope that the judge understands the parameters of the case and subsequently finds judgement in their favour, which with a lack of evidence is not always guaranteed.
One of the reasons that we developed the ICE PACC was in order to promote due diligence by establishing an auditable paper trail and thereby ensuring that detailed order forms are signed by authorised representatives and that those signatures confirm the receipt of goods or services and are satisfied with the provision.
This, coupled with comprehensive terms, allows the creditor to demonstrate at court that the debtor requested the order and was satisfied with the end product.
In the event that a part of this process is skipped, it potentially allows the debtor to raise a dispute and thus justify the non payment of the invoice.
Additionally a dispute means that a statutory demand can not be considered to be effectively and legally served and therefore we have to obtain judgement first, incurring considerable time delays waiting for the legal process to complete. Quite often small businesses will not go down this avenue due to lack of funds or confidence in securing judgement and as a result are compelled to, reluctantly, write the debt off.
Business owners often tell me that whilst they can see the benefit of a comprehensive credit control policy, they don’t have either the time or resources to create one or that their industry is such that, terms, delivery notes and order confirmation are not common practice and that such action will lead to a loss in sales.
I reply with asking them to lend me £5,000.00 and when they look at me in astonishment I suggest that at the moment they are, essentially, lending businesses owners, who they don’t necessarily know, large sums of money in the form of credit in the hope that they will eventually pay with no real paper trail.
Ultimately if you are going to offer credit in the form of invoicing you need a paper trail that will demonstrate that the debtor owes the outstanding amount without dispute.
If you are looking for a online collections system that promotes Pro Active Credit Control and incorporates FREE pre legal recovery then subscribe to the ICE PACC.
We are frequently bombarded with cases that have only the briefest paper trail of:
• An email confirming the order but not the details of.
• An Invoice that has been submitted and later rebuffed
• A number of emails detailing why the debtor is not going to pay
Consequently this weakens the case when attempting to recover the monies and forces us to apply to the courts in order to hopefully pass judgment. Of course for the creditor to be successful in court we have to hope that the judge understands the parameters of the case and subsequently finds judgement in their favour, which with a lack of evidence is not always guaranteed.
One of the reasons that we developed the ICE PACC was in order to promote due diligence by establishing an auditable paper trail and thereby ensuring that detailed order forms are signed by authorised representatives and that those signatures confirm the receipt of goods or services and are satisfied with the provision.
This, coupled with comprehensive terms, allows the creditor to demonstrate at court that the debtor requested the order and was satisfied with the end product.
In the event that a part of this process is skipped, it potentially allows the debtor to raise a dispute and thus justify the non payment of the invoice.
Additionally a dispute means that a statutory demand can not be considered to be effectively and legally served and therefore we have to obtain judgement first, incurring considerable time delays waiting for the legal process to complete. Quite often small businesses will not go down this avenue due to lack of funds or confidence in securing judgement and as a result are compelled to, reluctantly, write the debt off.
Business owners often tell me that whilst they can see the benefit of a comprehensive credit control policy, they don’t have either the time or resources to create one or that their industry is such that, terms, delivery notes and order confirmation are not common practice and that such action will lead to a loss in sales.
I reply with asking them to lend me £5,000.00 and when they look at me in astonishment I suggest that at the moment they are, essentially, lending businesses owners, who they don’t necessarily know, large sums of money in the form of credit in the hope that they will eventually pay with no real paper trail.
Ultimately if you are going to offer credit in the form of invoicing you need a paper trail that will demonstrate that the debtor owes the outstanding amount without dispute.
If you are looking for a online collections system that promotes Pro Active Credit Control and incorporates FREE pre legal recovery then subscribe to the ICE PACC.
Proof of Debt – The Paper Trail
Many of the cases that are submitted to our collections department lack any real evidence of the suggested debt in the first instance.
We are frequently bombarded with cases that have only the briefest paper trail of:
• An email confirming the order but not the details of.
• An Invoice that has been submitted and later rebuffed
• A number of emails detailing why the debtor is not going to pay
Consequently this weakens the case when attempting to recover the monies and forces us to apply to the courts in order to hopefully pass judgment. Of course for the creditor to be successful in court we have to hope that the judge understands the parameters of the case and subsequently finds judgement in their favour, which with a lack of evidence is not always guaranteed.
One of the reasons that we developed the ICE PACC was in order to promote due diligence by establishing an auditable paper trail and thereby ensuring that detailed order forms are signed by authorised representatives and that those signatures confirm the receipt of goods or services and are satisfied with the provision.
This, coupled with comprehensive terms, allows the creditor to demonstrate at court that the debtor requested the order and was satisfied with the end product.
In the event that a part of this process is skipped, it potentially allows the debtor to raise a dispute and thus justify the non payment of the invoice.
Additionally a dispute means that a statutory demand can not be considered to be effectively and legally served and therefore we have to obtain judgement first, incurring considerable time delays waiting for the legal process to complete. Quite often small businesses will not go down this avenue due to lack of funds or confidence in securing judgement and as a result are compelled to, reluctantly, write the debt off.
Business owners often tell me that whilst they can see the benefit of a comprehensive credit control policy, they don’t have either the time or resources to create one or that their industry is such that, terms, delivery notes and order confirmation are not common practice and that such action will lead to a loss in sales.
I reply with asking them to lend me £5,000.00 and when they look at me in astonishment I suggest that at the moment they are, essentially, lending businesses owners, who they don’t necessarily know, large sums of money in the form of credit in the hope that they will eventually pay with no real paper trail.
Ultimately if you are going to offer credit in the form of invoicing you need a paper trail that will demonstrate that the debtor owes the outstanding amount without dispute.
If you are looking for a online collections system that promotes Pro Active Credit Control and incorporates FREE pre legal recovery then subscribe to the ICE PACC.
We are frequently bombarded with cases that have only the briefest paper trail of:
• An email confirming the order but not the details of.
• An Invoice that has been submitted and later rebuffed
• A number of emails detailing why the debtor is not going to pay
Consequently this weakens the case when attempting to recover the monies and forces us to apply to the courts in order to hopefully pass judgment. Of course for the creditor to be successful in court we have to hope that the judge understands the parameters of the case and subsequently finds judgement in their favour, which with a lack of evidence is not always guaranteed.
One of the reasons that we developed the ICE PACC was in order to promote due diligence by establishing an auditable paper trail and thereby ensuring that detailed order forms are signed by authorised representatives and that those signatures confirm the receipt of goods or services and are satisfied with the provision.
This, coupled with comprehensive terms, allows the creditor to demonstrate at court that the debtor requested the order and was satisfied with the end product.
In the event that a part of this process is skipped, it potentially allows the debtor to raise a dispute and thus justify the non payment of the invoice.
Additionally a dispute means that a statutory demand can not be considered to be effectively and legally served and therefore we have to obtain judgement first, incurring considerable time delays waiting for the legal process to complete. Quite often small businesses will not go down this avenue due to lack of funds or confidence in securing judgement and as a result are compelled to, reluctantly, write the debt off.
Business owners often tell me that whilst they can see the benefit of a comprehensive credit control policy, they don’t have either the time or resources to create one or that their industry is such that, terms, delivery notes and order confirmation are not common practice and that such action will lead to a loss in sales.
I reply with asking them to lend me £5,000.00 and when they look at me in astonishment I suggest that at the moment they are, essentially, lending businesses owners, who they don’t necessarily know, large sums of money in the form of credit in the hope that they will eventually pay with no real paper trail.
Ultimately if you are going to offer credit in the form of invoicing you need a paper trail that will demonstrate that the debtor owes the outstanding amount without dispute.
If you are looking for a online collections system that promotes Pro Active Credit Control and incorporates FREE pre legal recovery then subscribe to the ICE PACC.
Tuesday 15 February 2011
Late Payment, Disputes, Non payment of Invoices -
Is your industry prone to late payment, disputes or non payment of invoices?
If the answer is yes then read on.
Do the following factors inhibit payment?
1. Customers companies entering into liquidation or pre pack administration
2. A variety of valid or bogus disputes being raised on the services or goods provided
3. Chains of late payment or debt; such as your customer waiting to be paid and thus unable to settle your outstanding invoice.
If the above affect the financial performance of your business then consider ICE PACC as a credit management tool to assist you in preventing such issues.
Liquidations and Administration of Companies can often leave the supplier with not only a bitter taste in their mouth but the inability to service their own business. Therefore when you offer a customer credit, where possible, request a personal guarantee for payment so that they are unable to hide behind the limited liability of their company. If they refuse then ask yourself how badly you need the business and if you can sustain the loss in event of non payment. With a personal guarantee you are offering unsecured credit and thus must accept the risk that you are undertaking which ultimately may mean non payment.
ICE PACC provides you with such terms to submit to your customers within in its product offering.
Disputes are a constant frustration and quite often are not raised until the supplier enquires as to why their invoices have not been settled. The issue is that very often the supplier has allowed such a scenario to arise due to a lack of due diligence within their business.
Whilst it is not always practical one must endeavour to do the following:
• Get you terms signed
• Get a signed document detailing the authorised representatives that can sign for orders on the directors behalf
• Get order forms signed
• Get delivery notes signed
• Get a satisfaction note signed, as delivery does not necessarily mean that the customer is satisfied with the suppliers goods or services
Consequently you are able to establish that the customer has received and are happy with the goods or services requested. A signature is essential when reviewing evidence in court if a request for judgement has been submitted. Essentially, “you signed to say you would and could pay for the goods or services, you signed to agree the order, you signed to say it’s been delivered and furthermore you signed to say it met with your approval!”,now pay!
“I can’t pay you, until I get paid”, what happens if your customer doesn’t get paid?
Again if you have offered unsecured credit then good luck, if however you have offered secured credit via a personal guarantee and have ensured that all due diligence has been undertaken you have a greater chance of recovering the money.
Offering credit is a bit of a gamble but it’s up you how big the stakes are. It doesn’t have to be like a day at the races when your horse doesn’t come in you are mopping over what could have been.
Do you really want to gamble with your businesses future or would you prefer to implement a credit management policy that will help you gallop furlongs ahead of your competition.
Better cash flow, better business, better performance, better profitability.
If you are interested in finding out more about the ICE PACC then contact me directly on 01183 240 336
If the answer is yes then read on.
Do the following factors inhibit payment?
1. Customers companies entering into liquidation or pre pack administration
2. A variety of valid or bogus disputes being raised on the services or goods provided
3. Chains of late payment or debt; such as your customer waiting to be paid and thus unable to settle your outstanding invoice.
If the above affect the financial performance of your business then consider ICE PACC as a credit management tool to assist you in preventing such issues.
Liquidations and Administration of Companies can often leave the supplier with not only a bitter taste in their mouth but the inability to service their own business. Therefore when you offer a customer credit, where possible, request a personal guarantee for payment so that they are unable to hide behind the limited liability of their company. If they refuse then ask yourself how badly you need the business and if you can sustain the loss in event of non payment. With a personal guarantee you are offering unsecured credit and thus must accept the risk that you are undertaking which ultimately may mean non payment.
ICE PACC provides you with such terms to submit to your customers within in its product offering.
Disputes are a constant frustration and quite often are not raised until the supplier enquires as to why their invoices have not been settled. The issue is that very often the supplier has allowed such a scenario to arise due to a lack of due diligence within their business.
Whilst it is not always practical one must endeavour to do the following:
• Get you terms signed
• Get a signed document detailing the authorised representatives that can sign for orders on the directors behalf
• Get order forms signed
• Get delivery notes signed
• Get a satisfaction note signed, as delivery does not necessarily mean that the customer is satisfied with the suppliers goods or services
Consequently you are able to establish that the customer has received and are happy with the goods or services requested. A signature is essential when reviewing evidence in court if a request for judgement has been submitted. Essentially, “you signed to say you would and could pay for the goods or services, you signed to agree the order, you signed to say it’s been delivered and furthermore you signed to say it met with your approval!”,now pay!
“I can’t pay you, until I get paid”, what happens if your customer doesn’t get paid?
Again if you have offered unsecured credit then good luck, if however you have offered secured credit via a personal guarantee and have ensured that all due diligence has been undertaken you have a greater chance of recovering the money.
Offering credit is a bit of a gamble but it’s up you how big the stakes are. It doesn’t have to be like a day at the races when your horse doesn’t come in you are mopping over what could have been.
Do you really want to gamble with your businesses future or would you prefer to implement a credit management policy that will help you gallop furlongs ahead of your competition.
Better cash flow, better business, better performance, better profitability.
If you are interested in finding out more about the ICE PACC then contact me directly on 01183 240 336
Wednesday 19 January 2011
Company Credit Checks - Forewarned is forearmed!
Credit checking a potential company is an integral part of your credit management policy. Ultimately you are able to from your investigation determine the risk that your company will undertake be offering the potential customer credit.
Considerations should include:
• What is the company formation and are they protected by limited liability?
• What are the directors other current appointments?
• What are the directors’ previous appointments?
• Have the directors been involved with companies that have gone into liquidation, administration or been dissolved?
• Does the director have a non trading company sitting in the background?
• Is the trading address cited the true trading address?
• Is the directors cited domestic residence correct and do they appear on the electoral roll.
• Does the company have any CCJ’s
• Are their any mortgage charges assigned?
• Who are the company shareholders?
• If the company shareholder is a company, do I need to investigate that also?
• Does the director have other appointments that might be cited at a different address and therefore not immediately apparent on your initial investigation?
• What is the current credit score for that customer?
• What is the suggested current credit value for that customer?
• What is the trading status of the customer?
• What financial information are you able to ascertain?
• Has there been a company name change previously?
• If there has been, does this relate to a pre packaged administration?
• Has there been a winding up order previously on this company?
• How erratic has their credit rating been?
Once you have taken into consideration the above information you are able to assess the credit worthiness of your potential customer. Based on your findings you are then able to either:
• Decline from the potential custom
• Request payment in advance or on delivery
• Offer unsecured credit and run the risk within payment terms that are acceptable.
• Offer credit with a personal guarantee and reduce the risk
• Do nothing and hope for the best!
Remember the credit environment has changed globally in the last four years. Personal guarantee’s are no longer a dirty word and are in some industries considered to be standard practise. Therefore as a business you can plan a credit management policy that suits your business.
If you are offering credit to a customer, it will remain a liability until the subsequent invoices are settled. Consequently an order is only a sale when it’s paid for, until then it’s a potential debt!
If you ask the bank for a loan, you will be credit checked and you have to sign an agreement. This is because banks are financial institutions that understand the risk of lending, particularly now!
Would you lend money to someone who you didn’t know? If the answer is “yes”, then perhaps you’d lend me some! If the answer is “no” then why are you offering credit to a customer that you have no knowledge of, with the hope that they will eventually pay?
So there is the argument that it’s better to have the custom as opposed to being exceptionally cautious and having no business! But if the customers don’t settle their bills, then do you ultimately have a business in the long term anyway?
Furthermore if your potential customer is a large corporation they may dictate the terms of credit that you offer based on the fact that you won’t decline their offer of business. But a credit check will assist you in making a informed decision and determine if the potential risk is worth taking.
Forewarned is Forearmed, and when taking on the risk of credit it is essential.
The ICE PACC will automatically perform a credit check for all of your potential customers and then cite the potential risk of offering credit prior to engaging their custom. This is a small aspect of the service that you receive from subscribing to this unique and comprehensive credit management tool.
Contact us directly at info@icepacc.com
Considerations should include:
• What is the company formation and are they protected by limited liability?
• What are the directors other current appointments?
• What are the directors’ previous appointments?
• Have the directors been involved with companies that have gone into liquidation, administration or been dissolved?
• Does the director have a non trading company sitting in the background?
• Is the trading address cited the true trading address?
• Is the directors cited domestic residence correct and do they appear on the electoral roll.
• Does the company have any CCJ’s
• Are their any mortgage charges assigned?
• Who are the company shareholders?
• If the company shareholder is a company, do I need to investigate that also?
• Does the director have other appointments that might be cited at a different address and therefore not immediately apparent on your initial investigation?
• What is the current credit score for that customer?
• What is the suggested current credit value for that customer?
• What is the trading status of the customer?
• What financial information are you able to ascertain?
• Has there been a company name change previously?
• If there has been, does this relate to a pre packaged administration?
• Has there been a winding up order previously on this company?
• How erratic has their credit rating been?
Once you have taken into consideration the above information you are able to assess the credit worthiness of your potential customer. Based on your findings you are then able to either:
• Decline from the potential custom
• Request payment in advance or on delivery
• Offer unsecured credit and run the risk within payment terms that are acceptable.
• Offer credit with a personal guarantee and reduce the risk
• Do nothing and hope for the best!
Remember the credit environment has changed globally in the last four years. Personal guarantee’s are no longer a dirty word and are in some industries considered to be standard practise. Therefore as a business you can plan a credit management policy that suits your business.
If you are offering credit to a customer, it will remain a liability until the subsequent invoices are settled. Consequently an order is only a sale when it’s paid for, until then it’s a potential debt!
If you ask the bank for a loan, you will be credit checked and you have to sign an agreement. This is because banks are financial institutions that understand the risk of lending, particularly now!
Would you lend money to someone who you didn’t know? If the answer is “yes”, then perhaps you’d lend me some! If the answer is “no” then why are you offering credit to a customer that you have no knowledge of, with the hope that they will eventually pay?
So there is the argument that it’s better to have the custom as opposed to being exceptionally cautious and having no business! But if the customers don’t settle their bills, then do you ultimately have a business in the long term anyway?
Furthermore if your potential customer is a large corporation they may dictate the terms of credit that you offer based on the fact that you won’t decline their offer of business. But a credit check will assist you in making a informed decision and determine if the potential risk is worth taking.
Forewarned is Forearmed, and when taking on the risk of credit it is essential.
The ICE PACC will automatically perform a credit check for all of your potential customers and then cite the potential risk of offering credit prior to engaging their custom. This is a small aspect of the service that you receive from subscribing to this unique and comprehensive credit management tool.
Contact us directly at info@icepacc.com
Thursday 13 January 2011
Will your New Customer kill your business?
When you are approached by a potential customer you will no doubt be excited by the addition to your revenue stream. However consider the following:
The addition of this potential customer significantly increases your company’s net profit and is considered a life changing opportunity for you and your business. Consequently you eagerly approach your bank for an increase in your business overdraft in order to facilitate the new business that your customer requires you to undertake. The bank authorises the overdraft, however you are required to sign a personal guarantee in-case your business is unable to repay the loan. You happily sign the agreement certain that the revenue from your new customer and subsequent profit will alleviate any such problem.
With the overdraft in place and your new customer on board, business could never be better!
You’ve agreed 90 days payment with your new customer, not ideal, but acceptable based on the level of business they are bringing to your company.
90 days after the first invoice has been submitted the customer has still not settled their fist invoice. Furthermore the total outstanding account, if not paid, will cripple your business. However your customer assures you that the delay is simply down to the accounts department and the fact that you are a new supplier.
120 days later you begin to get concerned as none of the invoices have been settled and the outstanding amount if not paid will put your company into an insolvent position. However you continue to service the customer in order to ensure that there is no ill feeling, that may prevent further orders, and that payment of existing invoices is eventually made.
180 days later you receive correspondence from an insolvency practitioner stating that your customer has gone into administration and that you are invited to submit the amount that you are owed so that it can be added to the creditors listing.
With your overdraft in full use and very little other receivables to rely on you read the insolvency practitioners correspondence with complete and utter dread. Questions running through your brain:
• How am I going to pay the wages?
• How am I going to pay my bills?
• How am I going to pay my overdraft?
• What am I going to say to my family?
• How am I going to survive?
After visiting the bank to explain you realise that they are not going to support you and very quickly you are forced to liquidate your business.
Moreover the bank calls in the personal guarantee on your loan which eventually results in you having to sell your house, as a result of a force of sale.
The stress of the business failure and subsequent cash strain on you has a detrimental effect on your relationships at home.
You are left with no business, strained relationships at home and a complete loss in confidence!
If only you had taken time to consider the customers credit reports and subsequent score so that you could truly assess the risk that you were undertaking.
Furthermore you needed to plan your credit management policy so that you ensured that your receivables were received.
A comprehensive credit management policy can assist in preventing bad debt and at the same time promote prompt payment in order to assist your cash flow.
More importantly your terms of credit need to reflect the risk that you are undertaking. Had you in this situation insisted on a personal guarantee you may not have been awarded the business. However since non payment has resulted in the demise of your business, the perhaps this may have been a good thing! Had you obtained a personal guarantee likely hood is that you would not have found yourself in this horrid situation.
A few months on you see your customer, driving a expensive car and find that he still in business and is doing well as a result of the pre packaged administration of his previous company. You feel angry, frustrated and defeated!
Hindsight is a wonderful thing, but what is certain is the fact that prevention is better than the cure.
ICE PACC is designed to prevent such scenarios from happening and as a credit management tool can be used to assist you and your company from limiting your liabilities thus reducing the risk that you as a business undertake when offering credit to potential customers.
The ICE PACC will:
• Assess your potential customers credit worthiness
• Offer terms that will hold the customer to account
• Provide you with a comprehensive online credit management tool
• Facilitate FREE pre legal debt recovery.
For further information contact us directly at info@icepacc.com or view the product at www.icepacc.com
The addition of this potential customer significantly increases your company’s net profit and is considered a life changing opportunity for you and your business. Consequently you eagerly approach your bank for an increase in your business overdraft in order to facilitate the new business that your customer requires you to undertake. The bank authorises the overdraft, however you are required to sign a personal guarantee in-case your business is unable to repay the loan. You happily sign the agreement certain that the revenue from your new customer and subsequent profit will alleviate any such problem.
With the overdraft in place and your new customer on board, business could never be better!
You’ve agreed 90 days payment with your new customer, not ideal, but acceptable based on the level of business they are bringing to your company.
90 days after the first invoice has been submitted the customer has still not settled their fist invoice. Furthermore the total outstanding account, if not paid, will cripple your business. However your customer assures you that the delay is simply down to the accounts department and the fact that you are a new supplier.
120 days later you begin to get concerned as none of the invoices have been settled and the outstanding amount if not paid will put your company into an insolvent position. However you continue to service the customer in order to ensure that there is no ill feeling, that may prevent further orders, and that payment of existing invoices is eventually made.
180 days later you receive correspondence from an insolvency practitioner stating that your customer has gone into administration and that you are invited to submit the amount that you are owed so that it can be added to the creditors listing.
With your overdraft in full use and very little other receivables to rely on you read the insolvency practitioners correspondence with complete and utter dread. Questions running through your brain:
• How am I going to pay the wages?
• How am I going to pay my bills?
• How am I going to pay my overdraft?
• What am I going to say to my family?
• How am I going to survive?
After visiting the bank to explain you realise that they are not going to support you and very quickly you are forced to liquidate your business.
Moreover the bank calls in the personal guarantee on your loan which eventually results in you having to sell your house, as a result of a force of sale.
The stress of the business failure and subsequent cash strain on you has a detrimental effect on your relationships at home.
You are left with no business, strained relationships at home and a complete loss in confidence!
If only you had taken time to consider the customers credit reports and subsequent score so that you could truly assess the risk that you were undertaking.
Furthermore you needed to plan your credit management policy so that you ensured that your receivables were received.
A comprehensive credit management policy can assist in preventing bad debt and at the same time promote prompt payment in order to assist your cash flow.
More importantly your terms of credit need to reflect the risk that you are undertaking. Had you in this situation insisted on a personal guarantee you may not have been awarded the business. However since non payment has resulted in the demise of your business, the perhaps this may have been a good thing! Had you obtained a personal guarantee likely hood is that you would not have found yourself in this horrid situation.
A few months on you see your customer, driving a expensive car and find that he still in business and is doing well as a result of the pre packaged administration of his previous company. You feel angry, frustrated and defeated!
Hindsight is a wonderful thing, but what is certain is the fact that prevention is better than the cure.
ICE PACC is designed to prevent such scenarios from happening and as a credit management tool can be used to assist you and your company from limiting your liabilities thus reducing the risk that you as a business undertake when offering credit to potential customers.
The ICE PACC will:
• Assess your potential customers credit worthiness
• Offer terms that will hold the customer to account
• Provide you with a comprehensive online credit management tool
• Facilitate FREE pre legal debt recovery.
For further information contact us directly at info@icepacc.com or view the product at www.icepacc.com
Wednesday 12 January 2011
Credit Control Software featured on Credit Management Matters
ICE PACC is now featured on the Credit Management Matters website, offering subscribers the opportunity to manage their credit control in a more effective manner. The innovative online system will assess your potential customers credit worthiness, incorporates a comprehensive, easy to use, credit control system and offers FREE pre-legal recovery when payments are late.
To view the link go to: http://www.creditmanagement.org.uk/
To view the link go to: http://www.creditmanagement.org.uk/
Wednesday 5 January 2011
Credit Managment Policy 2011
Have you decided upon a New Years Resolution this year, or are you not bothering?
Perhaps you’ve considered taking up a new fitness regime, not drinking as much, stopped smoking or some other discipline to make your lifestyle healthier.
Alternatively you may have decided to have a change of attitude to your outlook on life, be more dynamic, work smarter or indeed spend more quality time with your family?
Its fair to say that New Years Resolutions are often fairly short lived and within no time we are living our lives as we have always lived them.
Why do we make New Years resolutions in the first place? For some it’s just tradition and for others it’s because they really want to change something about their life or business.
So I guess the question for me is, do you really want to make a difference to your business? Furthermore if you have identified an opportunity to reduce bad debt and increase sales by growing your client base then read on!
A comprehensive credit management policy can often be seen as being a business inhibitor as it may be deemed too restrictive by the customer and thus a deal breaker. This does not have to be the case if it is both well thought out and presented to demonstrate a proffessional approach committed to great customer service.
Remember, if you are offering credit, whether it be seven days, thirty days or more, you are exposing your business by the undertaking of a liability. Obviously the risk being that you may not get paid, or that payment is delayed causing cash flow issues for your business.
So take time to plan your credit management policy.
• Do I wish to assess the credit worthiness of my potential customer?
• Do I wish to offer secured or unsecured credit?
• How do I document my Orders / Deliveries / Customer Satisfaction
• How do I document my customer correspondence?
• Do I get customers to sign all relevant correspondence?
• Who is authorised to sign correspondence on behalf of the customer?
• How do I reduce the risk of potential disputes?
• How do I deal with disputes?
• Are disputes documented both when they are raised and resolved?
• How do I issue my invoices and ensure that they have been received?
• How do I monitor the ongoing credit worthiness of my client to ensure that during the longevity of our relationship their circumstances don’t change?
• What do I do when the payment terms expire and monies have not been received?
• What do I do when request for payments are rebuffed?
• How do I recover my outstanding monies both pre-legal and legal?
• At what point do I employ a legal representative to assist me?
By answering these simple questions you will start to map your current credit management policy and hopefully identify areas that will require improvement.
Over the course of the proceeding weeks I will be addressing each question specifically and offering my view point in order to assist you and your business and why, as a result, a comprehensive credit management policy can assist your sales and cash flow whilst reducing your business exposure. Further more my plan will assist when you are required to seek judgment against your customer.
Remember Credit Management is often like a hang over, the following day when you are feeling the pain, whether it be due to excess alcohol or non payment, you mutter; “Never never again!” – Until the next time!!
So let’s make our New Year Resolution that our credit management policy will be comprehensive and well planned in order to promote and preserve your business!
Have a great 2011!
ICE PACC is a comprehensive on-line credit managment system. www.icepacc.com
Perhaps you’ve considered taking up a new fitness regime, not drinking as much, stopped smoking or some other discipline to make your lifestyle healthier.
Alternatively you may have decided to have a change of attitude to your outlook on life, be more dynamic, work smarter or indeed spend more quality time with your family?
Its fair to say that New Years Resolutions are often fairly short lived and within no time we are living our lives as we have always lived them.
Why do we make New Years resolutions in the first place? For some it’s just tradition and for others it’s because they really want to change something about their life or business.
So I guess the question for me is, do you really want to make a difference to your business? Furthermore if you have identified an opportunity to reduce bad debt and increase sales by growing your client base then read on!
A comprehensive credit management policy can often be seen as being a business inhibitor as it may be deemed too restrictive by the customer and thus a deal breaker. This does not have to be the case if it is both well thought out and presented to demonstrate a proffessional approach committed to great customer service.
Remember, if you are offering credit, whether it be seven days, thirty days or more, you are exposing your business by the undertaking of a liability. Obviously the risk being that you may not get paid, or that payment is delayed causing cash flow issues for your business.
So take time to plan your credit management policy.
• Do I wish to assess the credit worthiness of my potential customer?
• Do I wish to offer secured or unsecured credit?
• How do I document my Orders / Deliveries / Customer Satisfaction
• How do I document my customer correspondence?
• Do I get customers to sign all relevant correspondence?
• Who is authorised to sign correspondence on behalf of the customer?
• How do I reduce the risk of potential disputes?
• How do I deal with disputes?
• Are disputes documented both when they are raised and resolved?
• How do I issue my invoices and ensure that they have been received?
• How do I monitor the ongoing credit worthiness of my client to ensure that during the longevity of our relationship their circumstances don’t change?
• What do I do when the payment terms expire and monies have not been received?
• What do I do when request for payments are rebuffed?
• How do I recover my outstanding monies both pre-legal and legal?
• At what point do I employ a legal representative to assist me?
By answering these simple questions you will start to map your current credit management policy and hopefully identify areas that will require improvement.
Over the course of the proceeding weeks I will be addressing each question specifically and offering my view point in order to assist you and your business and why, as a result, a comprehensive credit management policy can assist your sales and cash flow whilst reducing your business exposure. Further more my plan will assist when you are required to seek judgment against your customer.
Remember Credit Management is often like a hang over, the following day when you are feeling the pain, whether it be due to excess alcohol or non payment, you mutter; “Never never again!” – Until the next time!!
So let’s make our New Year Resolution that our credit management policy will be comprehensive and well planned in order to promote and preserve your business!
Have a great 2011!
ICE PACC is a comprehensive on-line credit managment system. www.icepacc.com
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