CM September 2020
The CICM magazine for consumer and commercial credit professionals
The CICM magazine for consumer and commercial credit professionals
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CREDIT MANAGEMENT<br />
<strong>CM</strong><br />
SEPTEMBER <strong>2020</strong> £12.50<br />
THE CI<strong>CM</strong> MAGAZINE FOR CONSUMER AND<br />
COMMERCIAL CREDIT PROFESSIONALS<br />
Plug and Play<br />
Is Germany still the<br />
powerhouse of Europe?<br />
Exploring the true<br />
impact of the global<br />
pandemic. Page 13<br />
Is DSO an appropriate<br />
measure of a team’s<br />
performance? Page 34
How a debt recovery firm remodelled their business to<br />
respond to client demands<br />
If the pandemic has taught us anything, it is the need to be agile and<br />
responsive to change. Brands that do not have the courage to embrace<br />
transformation are likely to be left behind. A company that has perfectly<br />
demonstrated this, is Controlaccount Plc.<br />
This year sees Controlaccount quietly celebrate its 40th anniversary and<br />
here we look at how the business has evolved from a simple debt recovery<br />
model, to a fully integrated outsourcing business, delivering over fifty white<br />
labelled services to some of the biggest UK and global names. Over the<br />
past five years in particular, the firm has repositioned itself to respond to<br />
shifts in the debt recovery landscape.<br />
Founded on values<br />
Initially based in a small office in Holborn, London, Controlaccount was<br />
founded in <strong>September</strong> 1980, by Chairman, Graham Ball. The initial<br />
objective was to support clients with debt collection services, whilst<br />
operating with integrity, decency and understanding. These core values<br />
have been delivered consistently, throughout the company’s history. This<br />
proposition was attractive to many clients who needed to collect overdue<br />
invoices but did not want to be associated with the murky world of debt<br />
recovery (as it was seen in the early ‘80s).<br />
Controlaccount began working predominantly with clients in the medical<br />
sector. At one stage in its history, Controlaccount worked for most of the<br />
UK’s private hospitals and healthcare continues to be a key sector the firm<br />
supports. Other early clients came from growing sectors such as mobile<br />
phone companies and international debt recovery organisations (secured<br />
through professional relationships with commercial attachés in London<br />
embassies).<br />
Growth and expansion<br />
Forty years on, on behalf of its many blue chip customers, Controlaccount<br />
undertakes the recovery of over 30,000 delinquent invoices every month<br />
and collects some £40m each year. Key clients now include leading<br />
universities and colleges, a number of medical establishments and brand<br />
names from across the transport and logistics sector. It has not however,<br />
always been an upward trajectory and Controlaccount navigated many<br />
challenges during its forty years. As the debt recovery sector matured, it<br />
became more crowded and inevitably, rates were driven down. Although<br />
this resulted in the business losing some clients, by continuing to uphold its<br />
core principles, Controlaccount retained clients that valued both success<br />
and decency.<br />
With a track-record driven by its embedded values, it is no surprise that<br />
Controlaccount was a founding (and continues to be a) member of the<br />
Credit Services Association, and that its ISO accreditations are woven<br />
throughout its day to day processes.<br />
their customers. Specifically required was a shift towards digital interaction<br />
and automation, to enable clients to process high volumes and work<br />
accurately and efficiently. The business began to evolve, working more<br />
collaboratively to enable clients to improve performance, increase profit and<br />
provide engaging customer experiences.<br />
Supportive technology<br />
In 2013, Controlaccount demonstrated its technology credentials with the<br />
launch of Cogenda and ClientWeb. These are a debt recovery ‘engine’ and<br />
an online real-time portal where creditors can communicate and manage<br />
activity, such as uploading and updating new accounts. These industryleading<br />
platforms are still used today.<br />
In the same year, by delivering bespoke customer relationship management<br />
builds, web-based applications and software solutions, Controlaccount<br />
began to move away from a single service debt recovery model to become<br />
a comprehensive business process outsourcing provider. This dovetailed<br />
into the provision of operational standalone services such as white labelled<br />
multi-channel communication centres, branded mailings and advanced<br />
credit control functions.<br />
Full service<br />
By 2018, through its UK call centres and branded mailing facilities,<br />
Controlaccount had become a fully-fledged business process outsourcing<br />
company offering over fifty services. These included IT and application<br />
solutions, financial, marketing and back-office support, plus all forms of debt<br />
recovery, credit control and operation solutions. In addition, Controlaccount<br />
developed other brands within their family, including the identeco - Business<br />
Support Toolkit. This online data portal delivers full business insights<br />
and financial reporting. The current Controlaccount offer also includes<br />
identecoHR; an innovative HR and time management tool which enables<br />
businesses to perform all their human resources functions from one<br />
database.<br />
Robust systems<br />
As the impact of Covid-19 ripples through the global economy, David<br />
Harvey, Controlaccount’s Managing Director and the driving force of the<br />
business’s new direction, believes that offering a diverse range of services<br />
to support clients will hold the organisation in good stead.<br />
“Sadly, many businesses will not survive the pandemic. So, whilst<br />
forbearance and understanding play a part, companies must focus on<br />
having a robust collection process in place. Now is also the time when<br />
businesses need to review their model to streamline operations, increase<br />
productivity and continue to implement new ideas. Our outsourced services;<br />
whether delivered ad-hoc or on a longer-term basis, provide organisations<br />
with the ability to deal with the unexpected.”<br />
For more information on Controlaccount and how it can help your business<br />
thrive, visit controlaccount.com<br />
Responding to needs<br />
As the debt recovery sector matured, it became apparent that<br />
Controlaccount needed to respond to the emerging needs of its clients and
SEPTEMBER <strong>2020</strong><br />
www.cicm.com<br />
CONTENTS<br />
13<br />
OPINION<br />
Heather Greig-Smith<br />
CI<strong>CM</strong> GOVERNANCE<br />
22<br />
LEGAL MATTERS<br />
Jackie Ray<br />
View our digital version online at www.cicm.com. Log on to the Members’<br />
area, and click on the tab labelled ‘Credit Management magazine’<br />
Credit Management is distributed to the entire UK and international CI<strong>CM</strong><br />
membership, as well as additional subscribers<br />
Reproduction in whole or part is forbidden without specific permission. Opinions expressed in this magazine do<br />
not, unless stated, reflect those of the Chartered Institute of Credit Management. The Editor reserves the right to<br />
abbreviate letters if necessary. The Institute is registered as a charity. The mark ‘Credit Management’ is a registered<br />
trade mark of the Chartered Institute of Credit Management.<br />
Any articles published relating to English law will differ from laws in Scotland and Wales.<br />
outsourcing debt recovery IT solutions<br />
24<br />
LEAD ARTICLE<br />
Adam Bernstein<br />
18<br />
OPINION<br />
Holly Scott-Donaldson<br />
President Stephen Baister FCI<strong>CM</strong> / Chief Executive Sue Chapple FCI<strong>CM</strong><br />
Executive Board Pete Whitmore FCI<strong>CM</strong> – Chair / Debbie Nolan FCI<strong>CM</strong>(Grad) – Vice Chair Glen Bullivant FCI<strong>CM</strong><br />
Treasurer / Larry Coltman FCI<strong>CM</strong>, Victoria Herd FCI<strong>CM</strong>(Grad), Bryony Pettifor FCI<strong>CM</strong>(Grad)<br />
Advisory Council Sarah Aldridge FCI<strong>CM</strong> / Laurie Beagle FCI<strong>CM</strong> / Glen Bullivant FCI<strong>CM</strong> / Alan Church FCI<strong>CM</strong>(Grad)<br />
Brendan Clarkson FCI<strong>CM</strong> / Larry Coltman FCI<strong>CM</strong> / Niall Cooter FCI<strong>CM</strong> / Peter Gent FCI<strong>CM</strong>(Grad) / Victoria Herd FCI<strong>CM</strong>(Grad)<br />
Philip Holbrough MCI<strong>CM</strong> / Neil Jinks FCI<strong>CM</strong> / Charles Mayhew FCI<strong>CM</strong> / Debbie Nolan FCI<strong>CM</strong>(Grad)<br />
Bryony Pettifor FCI<strong>CM</strong>(Grad)/ Allan Poole MCI<strong>CM</strong> / Alice Purdy MCI<strong>CM</strong>(Grad) / Phil Rice FCI<strong>CM</strong> / Chris Sanders FCI<strong>CM</strong><br />
Stephen Thomson FCI<strong>CM</strong><br />
8 – Technically Speaking<br />
News, views and opinion from the CI<strong>CM</strong><br />
Technical Committee.<br />
13 – Unparalleled Lines<br />
Heather Greig-Smith explains the harsh<br />
impact the global pandemic has had on<br />
businesses of all size across Europe.<br />
17 – Dream Big<br />
Peter Whitmore FCI<strong>CM</strong> reflects on his<br />
time as Chair of the CI<strong>CM</strong>.<br />
18 – Start the Revolution<br />
Holly Scott-Donaldson of Data<br />
Interconnect discusses the use of<br />
automation in Accounts Receivable.<br />
22 – Spark Out<br />
How will a landmark case involving<br />
two contractors benefit creditors in<br />
the future? Jackie Ray of Blaser Mills<br />
outlines the Bresco Case.<br />
24 – German Bite<br />
Is Germany still the powerhouse of<br />
Europe?<br />
29 – All Systems Go<br />
Why is the credit insurance guarantee<br />
from Government a good thing for<br />
creditors.<br />
32 – Shaping the Future<br />
Focus on the new Advisory Council.<br />
34 – Panel Bashers<br />
Is DSO an appropriate measure of a<br />
credit team’s performance? Our expert<br />
panel decides.<br />
44 – Small Talk<br />
Interview – Sean Feast speaks to<br />
Sinead McHale.<br />
52 – A Life Fully Lived<br />
Obituary – CI<strong>CM</strong> veterans remember<br />
Paul Mudge.<br />
Publisher<br />
Chartered Institute of Credit Management<br />
The Water Mill, Station Road, South Luffenham<br />
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Telephone: 01780 722900<br />
Email: editorial@cicm.com<br />
Website: www.cicm.com<br />
<strong>CM</strong>M: www.creditmanagement.org.uk<br />
Managing Editor<br />
Sean Feast FCI<strong>CM</strong><br />
Deputy Editor<br />
Iona Yadallee<br />
Art Editor<br />
Andrew Morris<br />
Telephone: 01780 722910<br />
Email: andrew.morris@cicm.com<br />
Editorial Team<br />
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International: £145 per annum<br />
Single copies: £12.50<br />
ISSN 0265-2099<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 3
EDITOR’S COLUMN<br />
Changing of the Guard<br />
Sean Feast FCI<strong>CM</strong><br />
Managing Editor<br />
WHILE there may have<br />
not been a great<br />
deal of live sport to<br />
entertain the masses<br />
during the first half<br />
of COVID, we seem<br />
to have made up for it since with all of<br />
the serious sports – football, cricket, golf<br />
and darts – making a welcome comeback.<br />
(Wait a minute. Darts? A sport? I like the<br />
old rule that says if you can smoke a fag<br />
or drink a pint while you’re doing it, it<br />
cannot be a sport. That said, have you ever<br />
refereed Sunday League football?). There<br />
is also comforting talk about transfer<br />
windows and new signings to make us<br />
think that we’ll wake up tomorrow and<br />
find it’s all just been a bad dream. West<br />
Ham weren’t in a relegation battle at all<br />
and Watford stayed up.<br />
And while on the subject of new signings<br />
(did you see what I did there? Seamless),<br />
there has been a complete changing of<br />
the guard in our own world of credit.<br />
Sue Chapple FCI<strong>CM</strong>, the interim Chief<br />
Executive of the CI<strong>CM</strong> has been confirmed<br />
in the role on a permanent basis, following<br />
the move by the Institute’s previous star<br />
striker (or should that be defender?) Philip<br />
King FCI<strong>CM</strong> to become Interim Small<br />
Business Commissioner. Similarly in the<br />
Credit Services Association (CSA), Peter<br />
Wallwork has finally hung up his fancy<br />
boots to make way for Chris Leslie, a<br />
seasoned battler from the world of politics<br />
who, judging from his Twitter feed, is no<br />
stranger to crowd banter.<br />
We will meet Sue and Chris in future<br />
issues, but I didn’t want the moment to<br />
pass without paying tribute to Philip and<br />
Peter. Philip, as our members will know,<br />
has been at the vanguard of promoting<br />
the credit profession from the start, and<br />
leading the Institute to be recognised<br />
with Chartered status. His achievements<br />
are legion, and too many to list here, but<br />
there are few people who have had such<br />
a profound impact on championing bestpractice<br />
credit management and getting<br />
those in Government and beyond to sit up<br />
and take notice. It would have been easy<br />
for Philip to put his feet up while watching<br />
his beloved Spurs, sipping a non-alcoholic<br />
cocktail. Instead he is continuing the<br />
battle as Interim SBC, and by all accounts<br />
shaking a few trees.<br />
Peter too has been at the helm of the<br />
CSA during a great period of transition and<br />
change and is to be congratulated on a job<br />
well done. As the ‘face’ of the CSA for over<br />
a decade, he brought a calm authority to<br />
the role that countered so well the cliché<br />
of the baseball bat-wielding thug that<br />
lazy journalists like to depict. His tenure<br />
included the challenge of authorisation<br />
and a new regulator, and patiently and<br />
diligently educating and informing those<br />
in power about the critical role that his<br />
members play in the economy, and the<br />
lessons the public sector can learn from<br />
their private sector colleagues.<br />
I am lucky enough to have worked with<br />
both men, and to be able to call them<br />
friends. I wish them the very best for the<br />
future. I have a feeling in both cases it may<br />
be farewell but not good-bye.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 4
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 5
<strong>CM</strong>NEWS<br />
A round-up of news stories from the<br />
world of consumer and commercial credit.<br />
Written by – Sean Feast FCI<strong>CM</strong><br />
High-cost lenders slammed<br />
in new FCA review<br />
HIGH-cost credit firms are not taking<br />
affordability assessments seriously<br />
enough on repeat borrowing, and<br />
poor practice in the use of online<br />
accounts and apps are encouraging<br />
consumers to borrow more.<br />
These are two of the key findings of a review<br />
by the Financial Conduct Authority (FCA)<br />
into relending by firms that offer high-cost<br />
credit which also suggests that nearly half (45<br />
percent) of customers said they regret taking<br />
out additional lending, a figure that rises to 60<br />
percent for certain products.<br />
This is in the context of research from<br />
StepChange Debt Charity that found that since<br />
the start of the pandemic, nearly one million<br />
people have used high cost credit products as a<br />
safety net to meet every day living costs.<br />
The long-awaited FCA review identified that<br />
most firms had more repeat customers than<br />
first-time borrowers, with repeat borrowers<br />
accounting for more than 80 percent of all<br />
customers at many firms.<br />
The FCA said it was particularly concerned<br />
that some customers may be managing<br />
financial difficulties through further borrowing.<br />
The report states: ‘Additional borrowing should<br />
“In the<br />
meantime,<br />
the FCA can<br />
further curb the<br />
harm caused<br />
by high-cost<br />
credit products<br />
by tightening<br />
lending rules,<br />
looking harder<br />
at the product<br />
features that<br />
can trap people<br />
in debt and<br />
improving<br />
forbearance<br />
measures.”<br />
Adam Butler, Public<br />
Policy Manager at<br />
StepChange<br />
“Repeat<br />
borrowing could<br />
be a strong<br />
indicator of levels<br />
of debt that are<br />
harmful to the<br />
customer.”<br />
Jonathan Davidson,<br />
Executive Director of<br />
Supervision<br />
not be used, in effect, as a debt management<br />
solution. When considering an application<br />
for refinancing where the firm is aware that<br />
the customer is a regular user and appears<br />
dependant on high-cost credit, we expect<br />
the firm to consider whether forbearance or<br />
debt advice might be more appropriate than<br />
additional lending.<br />
The FCA also said some firms were not<br />
taking responsibility to assess affordability for<br />
repeat borrowers seriously enough. Some firms<br />
suggested that consumers could use additional<br />
borrowing, for example to take a holiday, and<br />
reinforced the message by including imagery<br />
of exotic locations. Some firms also appeared<br />
to use ‘nudge’ techniques such as appealing<br />
to social norms by conveying a message that<br />
relending is common practice and normal<br />
behaviour.<br />
Jonathan Davidson, Executive Director of<br />
Supervision, Retail and Authorisations, says<br />
he has significant concerns: “Repeat borrowing<br />
could be a strong indicator of levels of debt that<br />
are harmful to the customer,” he says.<br />
“Before the pandemic we saw increasing<br />
numbers of complaints about high-cost lenders’<br />
relending practices, which showed that firms<br />
had failed to adequately assess affordability,<br />
and they were not relending in a way that was<br />
sustainable for customers. We expect firms to<br />
review their relending practices in light of our<br />
findings as they start to lend again, and to make<br />
any necessary changes to improve customer<br />
outcomes. We will continue working with firms<br />
to raise standards, and we will continue to take<br />
action where we see harm.”<br />
Adam Butler, Public Policy Manager at<br />
StepChange, says it is more vital than ever<br />
that fair and sustainable alternatives to these<br />
products are made available as soon as possible:<br />
“The Government must act quickly to develop a<br />
national no interest loan scheme, which would<br />
provide a mechanism to influence access to<br />
affordable credit more directly.<br />
“In the meantime, the FCA can further curb<br />
the harm caused by high-cost credit products<br />
by tightening lending rules, looking harder at<br />
the product features that can trap people in debt<br />
and improving forbearance measures.”<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 6
NEWS ROUNDUP<br />
CI<strong>CM</strong> in new TV venture<br />
with ITN Productions<br />
THE Chartered Institute of<br />
Credit Management (CI<strong>CM</strong>) and<br />
ITN Productions will be coproducers<br />
of a content series<br />
‘Managing the New Credit<br />
Future,’ produced to raise awareness and<br />
develop understanding of the vital role<br />
of credit management in the current<br />
climate.<br />
‘Managing the New Credit Future’<br />
will address a variety of themes each<br />
centred around key areas affecting credit<br />
management in times of such deep<br />
financial uncertainty. The programme<br />
will highlight the importance of going<br />
‘Back to basics’ to manage credit beyond<br />
the crisis, keeping cash flowing to<br />
sustain supply chains and exploring the<br />
opportunities and threats associated<br />
with ‘Increasing risk’.<br />
The programme will also discuss<br />
the strategic challenge of ‘Doing more<br />
with less’ whilst simultaneously driving<br />
income, profit and customer excellence.<br />
Sue Chapple FCI<strong>CM</strong>, Chief Executive<br />
of CI<strong>CM</strong> says the programme will shine<br />
a spotlight on the people, processes and<br />
systems helping to address change:<br />
“Professional credit management teams,<br />
strategies, sharing experiences and<br />
best-practice through programmes such<br />
as this, will be essential as we move to a<br />
period of recovery.”<br />
Elizabeth Fisher-Robins, Head of<br />
ITN Productions Industry News agrees:<br />
“We’re delighted to be partnering again<br />
with the Chartered Institute of Credit<br />
Management to produce a content<br />
series that raises industry and public<br />
awareness of the vital role of credit<br />
managers in sustaining the business<br />
landscape. We hope the programme will<br />
help address many of the immediate<br />
challenges faced by organisations across<br />
the UK.’<br />
Launching digitally in November<br />
<strong>2020</strong>, the programme will form part<br />
of an extensive communications<br />
campaign featuring CI<strong>CM</strong> members and<br />
professional partners.<br />
“Professional credit<br />
management teams,<br />
strategies, sharing<br />
experiences and<br />
best-practice through<br />
programmes such as<br />
this, will be essential as<br />
we move to a period of<br />
recovery.”<br />
Sue Chapple FCI<strong>CM</strong>,<br />
Chief Executive of CI<strong>CM</strong><br />
COVID-19 impacting USMCA businesses<br />
LATE payments have soared in the<br />
USMCA region as businesses are<br />
squeezed by the impact of COVID-19,<br />
according to the latest research by trade<br />
credit insurer Atradius.<br />
The annual Payment Practices<br />
Barometer by Atradius analyses the<br />
payment behaviours and sentiment of<br />
businesses in the United States, Mexico<br />
and Canada (USMCA). This year’s survey<br />
results reveal compromised cashflows<br />
and an increased reliance on bank<br />
finance, as businesses grapple with<br />
COVID-19 containment measures.<br />
The report found late payments<br />
affect 43 percent of the total value of<br />
invoices issued in USMCA, up from 25<br />
percent last year. Furthermore, the total<br />
value of invoices overdue past 90 days<br />
has doubled year on year to 13 percent,<br />
while four percent of the total value was<br />
written off as uncollectable, up from<br />
three percent a year ago.<br />
The Atradius research barometer<br />
reveals 40 percent of USMCA businesses<br />
use invoice payment delays as a form<br />
of short-term financing, while delays in<br />
payments are also caused by customer<br />
liquidity shortages (cited by 36 percent<br />
of businesses) and disputed invoices<br />
(cited by 39 percent). To counter late<br />
payments, nearly a third (30 percent) of<br />
businesses in USMCA report needing to<br />
increase the amount of time, resource<br />
and cost spent to chase overdue<br />
invoices while 28 percent acknowledge<br />
needing to delay settlement of invoices<br />
to their own suppliers as a result. A<br />
quarter of businesses admit needing<br />
to strengthen their own internal credit<br />
control procedures, while more than<br />
half plan to improve the efficiency of<br />
their debt collection processes with the<br />
two most cited approaches including<br />
increased use of payment reminders<br />
and outsourcing debt collection to a<br />
specialist agency.<br />
James Burgess, Head of UK<br />
Commercial for Atradius says the<br />
research is a particularly revealing story<br />
of two halves: “On the one hand is the<br />
dramatic increase in overdue payments<br />
and the undeniable indications that<br />
the region has entered recession.<br />
Whilst conversely, respondents convey<br />
optimism for a brighter future despite<br />
the gloomy figures to date. Of course, the<br />
reality hangs on the development of the<br />
COVID-19 crisis and the effectiveness<br />
of the region in reversing its negative<br />
effects.<br />
“What is clear is the pressure USMCA<br />
businesses are feeling which is reflected<br />
by widespread deteriorating B2B<br />
customer credit risk. Invoice payment<br />
defaults are up significantly compared to<br />
last year as is the number of businesses<br />
awaiting payment subsequently<br />
delaying payment to their suppliers.<br />
In a climate rocked by late payments<br />
and sustained economic uncertainty,<br />
businesses must act cautiously when it<br />
comes to maintaining successful trade<br />
relationships.”<br />
‘‘On the one hand is<br />
the dramatic increase<br />
in overdue payments<br />
and the undeniable<br />
indications that the<br />
region has entered<br />
recession.’’<br />
James Burgess, Head of UK<br />
Commercial for Atradius<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 7
NEW<br />
FEATURE<br />
TECHNICALLY SPEAKING<br />
PHONEY WAR<br />
Insight and comment from the CI<strong>CM</strong> Technical Committee<br />
AUTHOR – Sean Feast FCI<strong>CM</strong><br />
THE full impact of COVID-19<br />
on both the consumer and<br />
commercial debt collection<br />
industry is yet to be felt, and<br />
no-one can predict with any certainty<br />
what happens next. But even if half of<br />
the guesswork proves to be true, many<br />
hundreds of thousands of consumers<br />
will be plunged into debt by the end of<br />
the year, and a not dissimilar number of<br />
businesses may also go to the wall.<br />
Experts within the CI<strong>CM</strong>’s Technical<br />
Committee met virtually in July to<br />
report on and share their knowledge and<br />
insight of various Bills, consultations,<br />
calls for evidence, and other such<br />
Government-led programmes that will<br />
have a direct or indirect impact on<br />
creditors and the credit community.<br />
Within the consumer debt space, a<br />
Phoney War was likely to lead to a very<br />
real battle for survival among a group<br />
of the most hard-pressed consumers.<br />
Committee members from the advice<br />
sector and collections industry said that<br />
high volumes of debt were currently<br />
being paid off, and that many consumers<br />
were clearly taking advantage of<br />
payment holidays (or monies that they<br />
might have spent during lockdown) on<br />
settling their debts.<br />
Within the advice sector especially,<br />
an initial surge in calls to the various<br />
support lines had quickly abated, and<br />
at least one reported that demand was<br />
currently running at about a third of its<br />
total capacity. Customers were actively<br />
seeking to pay off their debts, borrowing<br />
from friends and family if necessary to<br />
do so, perhaps in preparation for a long,<br />
hard winter that might follow along with<br />
the fear of losing their jobs.<br />
INSOL-<br />
PINCH POINTS<br />
This lull before the storm is not expected<br />
to last. Certain ‘pinch points’ – the end<br />
to the furlough scheme and a shift in<br />
attitudes to forbearance – could be<br />
the tipping points. The re-engagement<br />
of enforcement action on August 23<br />
was always going to arouse negative<br />
press and has done, and there were<br />
concerns over the lifting of rent arrears<br />
convictions and what this would mean to<br />
the total consumer debt picture.<br />
An interesting point was also made<br />
about the blurring of lines between<br />
‘consumer’ and ‘commercial’ debts,<br />
especially when it came to the owner/<br />
directors of small businesses who could<br />
find themselves falling between two<br />
stools in how they are dealt with.<br />
Whereas there was understandable<br />
debate about<br />
VENCY<br />
the impact of the current<br />
crisis on consumers, there were similar<br />
concerns expressed about the new<br />
Corporate Insolvency and Governance<br />
Bill (see Credit Management July/August<br />
<strong>2020</strong>) and how it was going to impact<br />
creditors.<br />
MORATORIUM CONCERNS<br />
Of particular concern is the moratorium<br />
and to what extent it may be open to<br />
abuse. The moratorium effectively allows<br />
an insolvent business a period of 20<br />
business days grace during which time<br />
creditors are not able to enforce any<br />
action to recover what’s owed. Worse<br />
than this, creditors cannot discontinue<br />
from supplying product/services to said<br />
failed/failing business if that product (or<br />
service) is considered ‘essential’ and if<br />
refusing to supply would jeopardise the<br />
potential rescue of the business in the<br />
insolvency process.<br />
The Technical Committee<br />
acknowledged that in continuing to<br />
supply an essential product, the creditor<br />
would, in theory, be given priority status<br />
for any future payments, but that the<br />
risk seemed disproportionate to the<br />
reward. Some could see a scenario where<br />
deliveries might mysteriously go astray<br />
or be indefinitely delayed. Others were<br />
concerned that the IPs themselves would<br />
have to do quite a bit of background<br />
TECHNICAL COMMITTEE MEMBERS<br />
Glen Bullivant FCI<strong>CM</strong> ..............................................Chair of CI<strong>CM</strong> Technical Committee<br />
Alan Brown MCI<strong>CM</strong> .................................................................................................formerly BP<br />
Amir Ali FCI<strong>CM</strong> .....................................................................................................................CCUA<br />
Julian Roberts ....................................................................................................................... HSBC<br />
Joanna Carnell MCI<strong>CM</strong>(Grad) .................................................................................Trust Ford<br />
Paula Swain ...............................................................................................................Shoosmiths<br />
Peter Whitmore FCI<strong>CM</strong> ....................................................................................Westcon Group<br />
Debbie Nolan FCI<strong>CM</strong>(Grad) ............................................................................................. Arvato<br />
Mike Sargeant MCI<strong>CM</strong> ...........................................................Retired, formerly Baker Tilly<br />
David Kerr FCI<strong>CM</strong> ............................................................................... Insolvency Consultant<br />
Matthew Davies ........................................................................................................ UK Finance<br />
Lauren Carter ......................................................................................................Vantage Credit<br />
Stephen Cowan FCI<strong>CM</strong> ......................................................................................... Yuille & Kyle<br />
Alistair Chisolm .............................................................................................................. Payplan<br />
Andrew Macdonald FCI<strong>CM</strong> ........................................................... formerly Matthew Clark<br />
David Thornley FCI<strong>CM</strong>(Grad) .....................................................FortVale Engineering Ltd<br />
Hans Meijer FCI<strong>CM</strong> ............................................................................................................Coface<br />
David Sheridan FCI<strong>CM</strong> .....................................................................................Arc Europe Ltd<br />
Pamela Mulcahy ...........................................................................................Marston Holdings<br />
Glyn Powell FCI<strong>CM</strong> ............................................................................The Best Start Club Ltd<br />
work in advance to assess whether a<br />
failing business could be saved or sold<br />
and would face undoubted criticism if<br />
they subsequently took an appointment<br />
having previously said that a recovery<br />
was possible.<br />
‘Creditor Beware’ appeared to be<br />
the watchword, along with advice to<br />
review current Terms and Conditions<br />
where appropriate to protect your<br />
future position, mindful, however, that<br />
circumstances change and T&Cs could<br />
become fast out of date.<br />
A report was received on the<br />
performance of the courts during the<br />
lockdown period, with the process being<br />
described as either ‘blisteringly quick<br />
or glacially slow’. A similar report was<br />
heard from the Banks who are concerned<br />
about future competition post-COVID<br />
with particular reference to alternative<br />
lenders and what happens when the<br />
various support schemes begin to<br />
unwind.<br />
Perhaps more alarming was a report<br />
on the future of Business Information<br />
and the unintended consequences of<br />
payment holidays, rental holidays, delays<br />
in filing company accounts etc and<br />
how they would impact future credit.<br />
The quality, integrity and credibility of<br />
business information going forward is<br />
going to be a severe challenge for the<br />
information providers with regards to<br />
what extent their information is current<br />
and reliable.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 8
PHILLIPS & Cohen Associates,<br />
the leading specialist recoveries<br />
management business has announced<br />
plans to expand into the servicing of<br />
potentially vulnerable consumers. The<br />
firm says it is ‘reacting to client demand’<br />
for this new service alongside increasing<br />
market demographic need.<br />
As one of a number of ventures to<br />
initiate the service, Phillips & Cohen<br />
Associates has been selected by UK Debt<br />
solutions provider, TDX Group, to help<br />
launch its V+ service which will seek to<br />
combine proactive data analytics and<br />
best of breed communication strategies<br />
NEWS ROUNDUP<br />
SMEs expect borrowing to increase<br />
NEW research from Aldermore bank<br />
suggests that the UK’s small and mediumsized<br />
enterprises (SMEs) expect to<br />
borrow £48.3bn to support their business<br />
following the COVID-19 outbreak.<br />
More than three in five (61 percent)<br />
SMEs anticipate borrowing nearly<br />
£65,000 in the following 12 months after<br />
the outbreak. Speedy access to funding<br />
(23 percent), higher levels of funding (17<br />
percent) and a simple application process<br />
(17 percent) are viewed as needed by<br />
SMEs to navigate the months following<br />
the outbreak.<br />
Tim Boag, Group Managing director,<br />
business finance at Aldermore, says<br />
that helping SMEs recover following the<br />
pandemic will be crucial to the economic<br />
future of the UK: “SME income has been<br />
hit hard by COVID-19 with many having<br />
Unanimous welcome<br />
for new Insolvency Act<br />
INSOLVENCY and restructuring trade body<br />
R3, the Institute of Chartered Accountants in<br />
England and Wales (ICAEW), the Insolvency<br />
Practitioners’ Association (IPA), ICAS, and<br />
Chartered Accountants Ireland have all welcomed<br />
the passage of the Corporate Insolvency and<br />
Governance Act on to the statute book.<br />
The Act introduces the biggest reforms to the<br />
UK’s corporate insolvency framework for almost<br />
20 years and makes a series of temporary changes<br />
to the corporate governance requirements for<br />
companies and other entities.<br />
Colin Haig, President R3, says he is hopeful the<br />
new Act will be successful: “Our members already<br />
play a key role in assisting struggling firms<br />
through financial difficulty, and the Act gives<br />
them additional tools with which to support this<br />
important work at a critical time for the economy.”<br />
Michelle Thorp, CEO at the IPA, agrees: “We will<br />
monitor the Bill in practice, offering input where<br />
required to help ensure that the measures serve all<br />
stakeholders in insolvency processes correctly.”<br />
borrowed funds in order to survive, and<br />
with some expecting to continue to do so<br />
in the year ahead. “Our research shows<br />
that the average SME expects it will take<br />
them eight months to financially recover<br />
after the lockdown ends, and it is going to<br />
need a considerable concerted effort by<br />
both government and lenders to support<br />
businesses to help get them back on their<br />
feet.” A third (32 percent) of SMEs say<br />
the key to getting their business back on<br />
track following the COVID-19 outbreak<br />
will be good communication with their<br />
customers and clients. A further quarter<br />
(25 percent) state they will benefit from<br />
receiving ongoing Government support<br />
with 22 percent of SMEs also suggesting<br />
that getting employees back on track and<br />
focused on the business’ goals will be<br />
important in recovery phase.<br />
“Our members<br />
already play a key<br />
role in assisting<br />
struggling firms<br />
through financial<br />
difficulty’’<br />
Colin Haig, President R3<br />
PCA announces expansion plans<br />
to provide superior levels of service<br />
to potentially vulnerable consumers.<br />
PCA was selected because of its longstanding<br />
reputation for dealing with<br />
consumers in an empathetic and positive<br />
manner.<br />
Nick Cherry, Chief Operating Officer,<br />
says PCA has always prided itself on<br />
the ability to engage with consumers at<br />
the most sensitive of times: “We believe<br />
in treating people with dignity and<br />
respect, and this makes dealing with<br />
potentially vulnerable consumers a<br />
natural extension of our existing niche<br />
services.”<br />
> THE NEWS<br />
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THEN CI<strong>CM</strong>’s new Independent<br />
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All Change<br />
COURT Enforcement Services has<br />
announced a series of changes to<br />
its board that sees Daron Robinson<br />
promoted from Operations Director<br />
to Managing Director and Daren<br />
Simcox move from Managing<br />
Director to Chairman. The previous<br />
Chairman Frank Millerick has<br />
retired after more than 50 years<br />
in the industry. Since joining the<br />
business in 2014, Daron Robinson<br />
has been responsible for a number<br />
of major operational programmes,<br />
including the company’s bespoke<br />
case management system and the<br />
implementation of the awardwinning<br />
‘Agent Patroller’<br />
Enforcement App. Meanwhile,<br />
Neil Jinks FCI<strong>CM</strong> has joined Court<br />
Enforcement Services as Marketing<br />
and Communications Lead.<br />
FE<strong>CM</strong>A CONGRESS<br />
POSTPONED<br />
DUE to the current pandemic, the 4th<br />
FE<strong>CM</strong>A Pan-European Congress has been<br />
postponed until 15/16 <strong>September</strong> 2021.<br />
Further details will follow in due course.<br />
Sprouting Cedar<br />
HUBERT Mugliett has been appointed<br />
Chief Operating Officer of Cedar Rose,<br />
the business intelligence agency.<br />
Hubert is described as a key member<br />
of the senior management team who<br />
will oversee the internal operations<br />
of the business and help to ensure<br />
the business strategy is effectively<br />
implemented. Hubert brings many<br />
years of corporate experience in<br />
strategic Human Resource management<br />
and organisational development in<br />
various business contexts, and has<br />
successfully formed, mentored and<br />
led multicultural and multiethnic<br />
teams.<br />
www.cedar-rose.com.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 9
NEWS ROUNDUP<br />
Fraudsters capitalise<br />
on COVID misery<br />
SUB-prime lending and debt<br />
management scams are rising at<br />
an alarming rate as fraudsters look<br />
to capitalise on COVID-19 financial<br />
stress, according to accountancy and<br />
business advisory firm, BDO.<br />
The increased numbers of fraudulent<br />
or unregulated lenders being identified by<br />
the Financial Conduct Authority suggests<br />
they are stepping up their targeting<br />
of borrowers who are struggling with<br />
unemployment or with incomes cut by<br />
furloughing. It is likely that fraudsters<br />
suspect consumers may be even more<br />
susceptible to scams at present, due to<br />
having limited traditional borrowing<br />
options available to them.<br />
Job cuts, furloughing and even the<br />
reduced amount of work in the informal<br />
economy have increased demand for<br />
short-term finance as borrowers seek<br />
additional money to tide themselves<br />
through the lockdown. A reduced risk<br />
appetite amongst regulated lenders<br />
during the crisis may also be creating<br />
more of an opportunity for unregulated<br />
lenders. However, the FCA has increased<br />
its publicity campaign to make it more<br />
difficult for unregulated sub-prime<br />
lenders and debt management scammers<br />
to operate. The regulator actively<br />
searches for unregulated websites or<br />
for websites that impersonate those of<br />
regulated lenders.<br />
The FCA’s increased regulation of the<br />
sub-prime lending market over the last<br />
few years has ensured that consumers<br />
using regulated consumer lenders get<br />
a far better deal than they did a decade<br />
ago from comparable lenders. Regulated<br />
lenders must adhere closely to the<br />
principle of treating customers fairly and<br />
interest rates on high-cost short-term<br />
lending are capped.<br />
Sub-prime lenders cater to low<br />
income borrowers or individuals with<br />
poor credit ratings, who would not<br />
typically qualify for lower interest rate<br />
loans from high street lenders. Regulated<br />
debt management companies, which<br />
some fraudsters impersonate, work to<br />
create a feasible repayment plan for<br />
outstanding debts between an individual<br />
and their creditors.<br />
Richard Barnwell, Partner at BDO<br />
believes opportunistic fraudsters are<br />
using the coronavirus crisis as a chance<br />
to target the most vulnerable: “This is<br />
going to be an exceedingly difficult time<br />
for many consumers as their income<br />
levels may be significantly reduced. It<br />
is important that individuals who are<br />
looking to use a sub-prime lender or<br />
debt management company, opt for one<br />
regulated by the FCA and check their<br />
details against the FCA website.<br />
“Unfortunately, technology makes it<br />
extremely easy for fraudsters to set up<br />
websites and call centres which, to the<br />
casual observer, appear to be legitimate.<br />
It’s easy to see how consumers might be<br />
duped.”<br />
FCA research shows that highcost<br />
short-term loans are used most<br />
frequently (on a per capita basis) in the<br />
North West at 125 loans per 1,000 adults.<br />
Northern Ireland has the lowest usage at<br />
75 loans per 1,000 adults.<br />
Former politician joins CSA as new Chief Executive<br />
CHRIS Leslie, a former MP and Minister<br />
with proven knowledge of public<br />
policy, parliamentary affairs, financial<br />
services regulation and consumer<br />
credit, has been confirmed as the new<br />
Chief Executive of the Credit Services<br />
Association (CSA), the voice of the UK<br />
debt collection and purchase industry.<br />
He succeeds Peter Wallwork, who<br />
announced in December 2019 that he<br />
would be stepping down after ten years<br />
in the role.<br />
CSA Board Chair Tom Chandos<br />
welcomed the appointment:<br />
“Chris is the ideal person to<br />
build on the progress that<br />
the Association has made<br />
during the ten years<br />
under Peter Wallwork’s<br />
leadership, for which the<br />
Board is deeply grateful.”<br />
Chris Leslie was MP for<br />
Shipley from 1997 to 2005<br />
and for Nottingham<br />
East from 2010 to<br />
2019. Between<br />
2001 and 2003 he was a Minister<br />
successively in the Cabinet Office and<br />
the Department for Local Government<br />
and the Regions; and from 2003 to<br />
2005 he was Minister for Courts and<br />
Constitutional Affairs.<br />
Between 2011 and 2015 he was a<br />
member of the Opposition Treasury<br />
team, as Shadow City Minister/Financial<br />
Secretary to the Treasury in the period<br />
during which the Financial Conduct<br />
Authority and Prudential Regulation<br />
Authority were set up, as Shadow<br />
Chief Secretary to the Treasury and as<br />
Shadow Chancellor of the Exchequer.<br />
From 2005 to 2010, Chris was<br />
Director of the member organisation<br />
New Local Government Network, the<br />
leading local authority research and<br />
policy think-tank. During the same<br />
time, he was also a trustee of the<br />
Consumer Credit Counselling Service<br />
advice charity (now StepChange)<br />
and Credit Action (now the Money<br />
Charity). Chris says he’s delighted<br />
with the new challenge: “I<br />
am looking forward to leading the CSA<br />
team, representing such a wide range<br />
of businesses and championing best<br />
practice across the collections and<br />
debt purchase industry. Credit is a<br />
crucial utility in today’s economy and<br />
safeguarding a fair and well-functioning<br />
market is more important than ever in<br />
these challenging times.”<br />
The appointment has been made<br />
following a process advised by an<br />
independent search firm and led by<br />
a selection panel of the CSA Board<br />
comprising both elected, industry<br />
practitioner and independent board<br />
members. The appointment was<br />
effective from August 1.<br />
‘‘Chris is the ideal person<br />
to build on the progress<br />
that the Association has<br />
made during the ten years<br />
under Peter Wallwork’s<br />
leadership.”<br />
CI<strong>CM</strong> Essentials<br />
TO stay up-to-date with all that is happening at the CI<strong>CM</strong> – from qualifications to<br />
training, and membership to events – see the weekly e-newsletter CI<strong>CM</strong> Essentials.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 10
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Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 12
OPINION<br />
Unparalleled Lines<br />
Prompt payment is crucial if Europe’s companies<br />
are to emerge from the present crisis intact.<br />
AUTHOR – Heather Greig-Smith<br />
BUSINESSES across Europe face<br />
unparalleled uncertainty because<br />
of the COVID-19 crisis. With<br />
many operating in survival mode,<br />
safeguarding a steady cashflow is<br />
more important than ever. However,<br />
the drop in income companies have faced as<br />
a result of Government restrictions and lower<br />
consumer demand means paying on time is a more<br />
complicated issue than ever.<br />
During February and May, credit management<br />
group Intrum conducted a survey of financial<br />
executives and business leaders in 9,980 companies<br />
across 29 European countries – providing snapshots<br />
of changing sentiments pre COVID-19 and after the<br />
crisis hit.<br />
Unsurprisingly, businesses reported a significant<br />
increase in financial stress, with 51 percent saying<br />
their survival was threatened by late payment.<br />
Across Europe, hospitality and leisure businesses<br />
have been particularly hard hit by COVID-19, with<br />
Government restrictions on travel, shopping, dining<br />
out, exercise and other leisure activities crushing<br />
many. These measures are likely to have a lasting<br />
impact – 42 percent of respondents in this sector<br />
predicted recession would have a severe impact,<br />
the highest level of the 11 industries surveyed.<br />
By contrast, Dutch businesses are more optimistic –<br />
only 14 percent predict recession will have a severe<br />
impact, the lowest figure across Europe.<br />
“Optimism is likely to vary over time depending<br />
how a country responds to measures to tackle the<br />
virus and on the level of Government intervention<br />
to protect businesses,” says Intrum UK Managing<br />
Director Eddie Nott.<br />
LIQUIDITY CHALLENGE<br />
Even in normal times, late payment poses a<br />
significant challenge to many businesses. However,<br />
it creates a greater threat to survival in today’s<br />
environment, with 51 percent saying late payment<br />
reduces their liquidity, compared with 23 percent<br />
pre-COVID. Sharp drops in GDP across Europe are<br />
decreasing revenues for businesses and restricting<br />
cashflow. Over half (52 percent) of UK companies<br />
say that macroeconomic uncertainty has caused<br />
them to extend their payment terms to suppliers<br />
over the coming year – up from the European<br />
UNFAVOURABLE TERMS<br />
The crisis has undoubtedly forced businesses to<br />
accept unfavourable payment terms. The survey<br />
found that 80 percent of the UK’s businesses have<br />
accepted longer payment terms than they are<br />
comfortable with as they do not want to damage<br />
client relationships – and 71 percent across Europe<br />
said the same. This is despite the fact that 44 percent<br />
of UK businesses said late payment by customers<br />
threatens their survival – up significantly from the<br />
17 percent pre-COVID rate.<br />
According to UK respondents, the risk of pan-<br />
European recession is the main challenge facing<br />
customers paying on time over the next twelve<br />
months. More than two-thirds (67 percent) rank<br />
this among the top three challenges, compared<br />
with 57 percent across Europe. When broken<br />
down, the figure increases from 50 percent<br />
of those surveyed before the COVID-19 crisis<br />
to 75 percent after the crisis hit. With Europe<br />
heading for recession, 42 percent of British<br />
businesses expect it to have a severe impact<br />
on them, and 31 percent plan to cut recruitment as<br />
a result.<br />
Spanish businesses are the most concerned<br />
by the economic forecast, with 92 percent citing<br />
European recession in the top three payment<br />
challenges over the next year and more than half<br />
saying it will have a severe impact on their business.<br />
average of 41 percent, and the highest in Europe.<br />
“The pandemic has piled pressure onto businesses<br />
in an unprecedented way and many firms do not<br />
have the flexibility to survive late payment,” says<br />
Eddie.<br />
“With pressure on cashflow, timely payment is<br />
more important than ever as businesses struggle<br />
to navigate the loosening of lockdown restrictions.<br />
The long-term economic effects of the COVID-19<br />
crisis are not yet clear, but in the short term many<br />
businesses face a battle for survival.” Against this<br />
backdrop of exceptional change and disruption,<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 13<br />
“With pressure on<br />
cashflow, timely<br />
payment is more<br />
important than ever<br />
as businesses<br />
struggle to navigate<br />
the loosening of<br />
lockdown restrictions.’’<br />
continues on page 14 >
%<br />
0,6<br />
0,5<br />
Pre- crisis<br />
Late During payment<br />
crisis<br />
hits European liquidity<br />
average,<br />
The impact of late payments on business areas (high impact*)<br />
European average, Covid-19 break down:<br />
6 EPR <strong>2020</strong> Special Edition Covid-19 White Paper<br />
European Pre-crisisaverage,<br />
COVID-19 break down:<br />
During crisis<br />
Pre-crisis During crisis<br />
51%<br />
The Our risk survey of a finds that the most pressing concerns for European<br />
41%<br />
pan-European recession businesses in terms of late payment are a reduction in liquidity<br />
and their ability to survive: 45 percent say that late payment<br />
reduces their liquidity, and 38 percent say it threatens their<br />
Debtors in financial difficulties survival.<br />
38%<br />
The impact of late payments on business areas (high impact*)<br />
Spain’s economy has been hit hard by the crisis: the Bank of<br />
Spain has predicted that GDP could drop by 13 percent this<br />
year, 4 and the shrinking economy is putting many jobs at risk.<br />
At 14 percent, unemployment was already a major concern<br />
OPINION before the crisis hit. Now, it is expected to reach 19 percent by<br />
the end of the year. 5<br />
AUTHOR – Heather Greig-Smith<br />
What do you foresee as the major challenges facing customers paying on time and in full over the next<br />
What<br />
twelve<br />
do you<br />
months?<br />
foresee as the major challenges facing customers paying on time<br />
and European in full average, over the Covid-19 next break twelve down: months?<br />
COVID-19 break down:<br />
Pre-crisis<br />
The Covid-19 crisis has placed an even greater 38%<br />
During crisis<br />
pressure on<br />
European businesses to safeguard their liquidity. Sharp drops in<br />
An uncertain trading environment<br />
GDP across Europe are pushing down 33%<br />
(Global trade wars/Middle Eastern conflict)<br />
revenues for businesses,<br />
restricting cashflow while increasing pressure 33% on businesses to<br />
manage their cash and liquidity more efficiently.<br />
An over-reliance on unsecured loans<br />
28%<br />
among our business partners A decline in consumer demand following government lockdown<br />
measures presents a long-term 28% challenge to European<br />
businesses. As they look to save costs through reducing headcount,<br />
of this may in turn negatively impact consumers’ 37% ability to<br />
Administrative inefficiency<br />
our customers pay invoices due to lower disposable income.<br />
28%<br />
45%<br />
This trend is reflected in our survey. Over half (51 percent) of<br />
Disputes regarding goods respondents and say that late payment reduces 36% their liquidity<br />
services delivered during the Covid-19 crisis, compared<br />
27%<br />
with 35 percent of those<br />
surveyed before the impact was felt. Businesses that are<br />
Intentional ignorance<br />
able to safeguard their liquidity will emerge stronger from the<br />
29%<br />
Covid-19 crisis, while those with less liquidity to fall back on<br />
say that late payment reduces their liquidity, and<br />
38% say it threatens their survival.<br />
may find themselves under threat. 27%<br />
“Awareness of the<br />
impact of late payment<br />
and the options open<br />
to businesses under<br />
EU and UK legislation<br />
is important. These<br />
and further voluntary<br />
initiatives will be<br />
essential in ensuring<br />
steady cashflow for<br />
businesses as we<br />
emerge from the<br />
immediate crisis.”<br />
Intrum UK Managing<br />
Director Eddie Nott.<br />
A lack of business experience<br />
among customers<br />
Legislation issues<br />
None<br />
26%<br />
24%<br />
66%<br />
0,0 0,1 0,2 0,3 liquidity 0,4 0,5 will 0,6 emerge 0,7<br />
4) Spain predicts unemployment will reach 19 percent, Politico, May <strong>2020</strong> www.politico.eu/article/spain-predicts-coronavirus-covid19-unemployment-will-hit-19-percent/<br />
5) Ibid.<br />
2%<br />
1%<br />
25%<br />
26%<br />
Businesses that are<br />
able to safeguard their<br />
stronger from the crisis,<br />
while those with less<br />
liquidity to fall back on<br />
may find themselves<br />
under threat.<br />
0,4<br />
0,3<br />
35%<br />
36%<br />
39% 38%<br />
33%<br />
32%<br />
34%<br />
34%<br />
31% 32% 31% 32% 33%<br />
0,2<br />
25% 25%<br />
*On a scale from 1-5,<br />
4 and 5 is defined as<br />
“high impact”.<br />
0,1<br />
0,0<br />
Liquidity<br />
squeeze<br />
Threat to<br />
survival<br />
Not hiring new<br />
employees<br />
Loss of<br />
income<br />
Additional<br />
interest<br />
charges<br />
Dismissing<br />
employees<br />
Prohibiting<br />
growth of the<br />
company<br />
Prohibiting<br />
innovation<br />
* On a scale from 1-5, 4 and 5 is defined as “high impact”.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 14<br />
10 EPR <strong>2020</strong> Special Edition Covid-19 White Paper
OPINION<br />
AUTHOR – Heather Greig-Smith<br />
Have Have you you accepted accepted longer longer payments payments than you than feel comfortable you feel with over the past twelve months?*<br />
comfortable % with over the past twelve months?*<br />
0,5<br />
SME<br />
49%<br />
Large<br />
corporation<br />
0,4<br />
0,3<br />
SME<br />
Large<br />
corporation<br />
0,2<br />
0,1<br />
43%<br />
43%<br />
43%<br />
16%<br />
26%<br />
22%<br />
The long-term effects of the<br />
COVID-19 crisis are unknown,<br />
with a decline in consumer<br />
demand for some services<br />
and activities presenting an<br />
ongoing challenge.<br />
19%<br />
12%<br />
*The is a multiple answer<br />
question, hence the total add<br />
up to more than 100%<br />
0,0<br />
Yes, from a<br />
small to medium<br />
company<br />
Yes, from a large/<br />
multinational<br />
corporation<br />
Yes, from a public<br />
sector company<br />
No<br />
1% 1%<br />
Not sure<br />
*) The companies is a multiple answer are question, looking hence the for total extended add up to more than help 100%. share of late payment pressure,” Eddie<br />
8) Entrepreneurship and Small & medium-sized enterprises (SMEs), European Commission website<br />
to navigate through the challenges – 56 continues. “Often these companies are<br />
percent in the UK said they feel a new not well-placed when it comes to credit<br />
legislation is needed. But building a management and debt collection as they<br />
12 sustainable payment EPR culture <strong>2020</strong> Special will Edition require Covid-19 White Paper<br />
a change in behaviour. To an extent, this<br />
is already happening, with businesses<br />
seeking initiatives at a local and European<br />
level to tackle the problem.<br />
For example, there has been a rise in<br />
the adoption of the EU Late Payment<br />
Directive in the UK, despite its exit from<br />
the EU: 27 percent of UK businesses in the<br />
survey say they always use it, compared<br />
with five percent in 2019. Meanwhile, on<br />
a European level, almost half (47 percent)<br />
of respondents would like to see voluntary<br />
initiatives from corporations – a rise of 15<br />
percent from last year. “Awareness of the<br />
impact of late payment and the options<br />
open to businesses under EU and UK<br />
legislation is important. These and further<br />
voluntary initiatives will be essential in<br />
ensuring steady cashflow for businesses<br />
as we emerge from the immediate crisis,”<br />
Eddie adds.<br />
SMES SQUEEZED<br />
For small businesses, late payment can<br />
mean the difference between survival and<br />
bankruptcy, limiting their ability to pay<br />
employees and suppliers, cover operating<br />
costs and pursue growth opportunities.<br />
Across Europe, Intrum found SMEs are<br />
more likely than their larger counterparts<br />
to accept unfavourable late payment<br />
terms – 49 percent had accepted this from<br />
a fellow SME, compared with 43 percent<br />
of their large corporation peers.<br />
“It is a concern that small businesses<br />
may be shouldering more than their fair<br />
lack the scale to have dedicated resources<br />
in these areas.”<br />
For small<br />
businesses,<br />
late payment<br />
can mean the<br />
difference<br />
between survival<br />
and bankruptcy,<br />
limiting their<br />
ability to pay<br />
employees and<br />
suppliers.<br />
With SMEs representing 99 percent<br />
of businesses in the EU, the impact of<br />
COVID-19 increases the urgency of finding<br />
a solution to this problem. Ensuring<br />
their recovery post COVID-19 will be an<br />
essential ingredient in European recovery,<br />
both at corporate and consumer levels.<br />
IRISH DISPUTES<br />
In Ireland, COVID-19 has intensified<br />
disputes regarding goods and services.<br />
Over half of Irish businesses (51 percent)<br />
rank disputes regarding goods and<br />
services within their top three challenges<br />
to timely payment over the next 12<br />
months – above the European average of<br />
30 percent, and the highest percentage<br />
across Europe.<br />
This figure increases from 44 percent<br />
for those surveyed before the COVID-19<br />
crisis to 55 percent of those surveyed<br />
during the crisis. Meanwhile businesses<br />
in Ireland are looking to cut down<br />
on recruitment. Almost half of Irish<br />
companies surveyed (48 percent) plan to<br />
cut down on recruitment in preparation<br />
for a recession, compared to the European<br />
average of 29 percent. This figure is the<br />
highest in Europe.<br />
LONG-TERM IMPACT<br />
The long-term effects of the COVID-19<br />
crisis are unknown, with a decline in<br />
consumer demand for some services<br />
and activities presenting an ongoing<br />
challenge. As businesses are forced to<br />
reduce headcount in response, this may<br />
negatively impact consumer ability to pay<br />
invoices due to lower disposable income.<br />
Businesses that are able to safeguard<br />
their liquidity will emerge stronger from<br />
the crisis, while those with less liquidity<br />
to fall back on may find themselves under<br />
threat. Prompt payment initiatives will<br />
be crucial in ensuring steady cashflow<br />
and recovery. These issues need careful<br />
attention to secure economic stability.<br />
For more information: https://<br />
www.intrum.co.uk/business-solutions/<br />
analytics-insights/european-paymentreport-<strong>2020</strong>/<br />
Heather Greig-Smith is a freelance<br />
business writer.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 15
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Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 16
FROM THE CHAIR<br />
Dream Big<br />
Reflections of the outgoing Chair.<br />
AUTHOR – Pete Whitmore FCI<strong>CM</strong><br />
Pete Whitmore FCI<strong>CM</strong><br />
I<br />
can barely believe that this will<br />
be my last column as Chair of our<br />
wonderful Institute or that the two<br />
years have passed so quickly. In my<br />
first column, I challenged fellow<br />
credit professionals to dream big by<br />
making use of the Institute’s support facilities<br />
including the mentor hub.<br />
Boy, I never expected just how much we<br />
would need those support facilities to help<br />
us manage the needs of this much changed<br />
world. To think at that time, we expected our<br />
biggest challenge to be the impact of Brexit,<br />
once we knew what it really meant. That<br />
challenge is still there, but has been vastly<br />
overshadowed by the global pandemic, which<br />
continues to threaten our very existence both<br />
personally and professionally.<br />
What never ceases to astound me is the<br />
strength of the human spirit to overcome<br />
adversity and the acts of kindness that<br />
provide the inspiration to take us forward. A<br />
new generation of real superheroes has been<br />
acknowledged in the form of those wonderful<br />
frontline workers and here’s hoping that their<br />
actions and sacrifices are never forgotten.<br />
The world has changed and a ‘new normal’<br />
continues to be established. I am proud of<br />
the fact that the CI<strong>CM</strong> has led the way in<br />
developing the tools that we need to meet the<br />
ever-changing demands of this new world.<br />
Beginning with ‘Managing Credit in a Crisis’<br />
to ‘Managing Credit through the Recovery’ to<br />
the latest ‘Managing the New Credit Future,’<br />
the CI<strong>CM</strong> has provided a bounty of resources<br />
supplemented by many webinars and the<br />
sharing of knowledge. We continue to deliver<br />
on the mantle of being the recognised<br />
standard in credit.<br />
I would like to thank Sue Chapple FCI<strong>CM</strong><br />
for the way in which she has steered the<br />
CI<strong>CM</strong> through these unprecedented times<br />
ensuring a strong future for the Institute.<br />
Sue has already proven herself as a worthy<br />
successor to the role of Chief Executive and<br />
will use her practical credit management<br />
knowledge and experience to continuously<br />
drive the Institute forward. There are exciting<br />
times ahead.<br />
We also have a team at The Watermill that<br />
keep the interests and needs of the members<br />
at the heart of everything we do. They have<br />
all gone the extra mile during this crisis to<br />
ensure that we can continue to deliver the<br />
services and support our members need.<br />
I thank them for everything they have<br />
achieved.<br />
I could not pen my last column without<br />
paying homage to Philip King FCI<strong>CM</strong>. He was<br />
primarily the reason that I became involved<br />
with the Institute many years ago. Philip has<br />
shown that it is possible to enter the credit<br />
industry in a junior administration role and<br />
rise through the ranks to Credit Manager<br />
before becoming the Chief Executive of<br />
our Institute and then onto public office as<br />
the Interim Small Business Commissioner.<br />
Never underestimate the calibre of CI<strong>CM</strong><br />
professionals!<br />
The value of having an experienced, strong<br />
and diverse Executive Board has never been<br />
more personified than during the current<br />
crisis. The ability to be able to provide<br />
excellent guidance has been critical and I<br />
have been so fortunate to have a board full<br />
of individuals at the top of their profession.<br />
I cannot begin to thank them enough for all<br />
their hard work making my job far easier<br />
than it could have been.<br />
The end of my tenure as Chair will also<br />
mark the end of my involvement in the<br />
governance of the Institute after the best part<br />
of a decade. I will still be involved in technical<br />
matters and hope to have the opportunity to<br />
interact with many members as we come<br />
out of this crisis. I feel so privileged to have<br />
been Chair and know that the future of the<br />
Institute is in very safe hands.<br />
Stay safe and remember, if you dream big,<br />
anything is possible.<br />
What never ceases to astound me is the<br />
strength of the human spirit to overcome<br />
adversity and the acts of kindness that provide<br />
the inspiration to take us forward.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 17
OPINION<br />
START THE<br />
REVOLUTION<br />
Invoice-to-Cash (I2C) automation is coming of age.<br />
AUTHOR – Holly Scott-Donaldson<br />
THE COVID-19 crisis hasn’t so much<br />
changed business priorities as focused<br />
attention on a smaller number of<br />
absolutely critical issues. Invoice-to-<br />
Cash (I2C) automation is one of them.<br />
From a business perspective, the<br />
COVID-19 pandemic has been a huge wake-up call.<br />
For most businesses, a small number of ‘nice-tohaves’<br />
have suddenly become mission-critical. For<br />
instance, banks have always aspired to have good<br />
online services; but with physical branches closed,<br />
this ambition became a necessity. Manufacturers<br />
always prized agility; but when the lockdown caused<br />
demand to surge or wane – or demanded that the<br />
company pivot to a completely different business<br />
model – agility took centre stage.<br />
The finance function is no different. Prelockdown,<br />
the number of invoices that were paid<br />
late was below 16 percent: by May, that number<br />
had ballooned to 53 percent – or more than half!<br />
Suddenly, poor I2C management became an<br />
existential threat: for many companies, getting cash<br />
through the door was the difference between getting<br />
by and going under.<br />
With many sectors closing their doors as a<br />
result of the lockdown, some of these non-payment<br />
problems were clearly attributable to customers’<br />
cashflow issues. However, many businesses found<br />
that the problems were much closer to home.<br />
DEAD LETTERS<br />
Companies issuing paper invoices found that these<br />
were effectively ‘dead letters’ sent to offices that were<br />
no longer open and so simply weren’t reaching their<br />
intended recipients. Many finance departments<br />
rushed to furlough employees in a bid to stem their<br />
outgoings; only to find that they hadn’t retained<br />
enough resource to staff the AR function effectively;<br />
or that furloughed sales staff were not available to<br />
provide the insight necessary to resolve queries.<br />
Suddenly, casual conversations about automating<br />
the I2C process took on a whole new significance,<br />
because those companies that had already invested<br />
in I2C automation found that they were far better<br />
placed to cope with the impact of the COVID-19<br />
crisis.<br />
For example, an online billings portal gives<br />
customers access to all the information they need<br />
– from wherever they happen to be. It also allows<br />
customers to self-serve – for example, highlighting<br />
specific issues they have with an invoice so that<br />
these can be resolved quickly.<br />
At a time when all expenses are under intense<br />
scrutiny, I2C technology also dramatically lowers<br />
the cost-to-serve by eliminating print and post costs;<br />
and automating routine tasks so AR staff can do more<br />
with less, and focus on value-adding activities. It<br />
can also serve as a repository of all key information,<br />
reducing the dependence on individuals who many<br />
not be available to provide input.<br />
THE ‘C’ WORD<br />
But, focusing on the ‘I’ in I2C – the invoicing –<br />
addresses only one part of the problem. As the crisis<br />
unfolded and cash was recovered from more liquid<br />
customers, attention shifted to aged debt – putting<br />
the focus strongly on the collections end of the I2C<br />
process.<br />
With as many as half of invoices unpaid, it’s often<br />
difficult to see the wood for the trees. One of the<br />
key benefits of I2C automation is that it provides<br />
clear, consistent and data-driven visibility of your<br />
aged debt profile; enabling you to develop smarter<br />
approaches to aged debt, testing and optimising over<br />
time based on real results rather than assumptions<br />
and habit.<br />
Aged debt analysis<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 18
OPINION<br />
Intelligent Workflows<br />
With a consolidated dashboard of data that<br />
tracks customer activity in real time, you are<br />
able to know when invoices have been received<br />
and see queries in real-time, managing them<br />
not just by order of receipt but by order of<br />
impact on collections – and keeping the highest<br />
priority invoices active in the collections<br />
process.<br />
Imagine having a full account view of a<br />
customer’s payment history, allowing you to<br />
identify when an aged debt profile shifts; so, you<br />
could immediately have an honest, transparent<br />
conversation with the customer that avoids<br />
them moving into bad debt – and retaining their<br />
loyalty and trust. When it comes to aged debt,<br />
being able to be proactive and supportive will go<br />
a long way in maintaining good relations with<br />
your customers when the crisis lifts.<br />
THE ‘THRIVE’ MANDATE<br />
So, I2C automation addresses the immediate<br />
issues of the COVID crisis, helping companies<br />
to keep their heads above water by streamlining<br />
invoicing and managing collections. But it<br />
also addresses the ‘Thrive’ mandate which will<br />
emerge as we enter the ‘new normal’, allowing<br />
businesses to build an efficient and resilient<br />
invoice to cash process.<br />
For example, you can improve productivity<br />
with automated workflows that integrate with<br />
your existing systems to plan out an employee’s<br />
day – with specific actions for a categorised set of<br />
task types. This ensures that their activities are<br />
aligned with the priorities that the department<br />
has set.<br />
Portal-based billing also offers enhanced<br />
security and compliance. With a portal link<br />
for delivery, an invoice recipient must have<br />
Holly Scott-Donaldson<br />
Head of Direct Sales for<br />
Data Interconnect.<br />
At a time when<br />
all expenses are<br />
under intense<br />
scrutiny, I2C<br />
technology also<br />
dramatically<br />
lowers the<br />
cost-to-serve by<br />
eliminating print<br />
and post costs.<br />
the required sign-on access to that portal to<br />
access the invoice. Client user role management<br />
ensures only authorised personnel can carry out<br />
specific tasks, preventing error and potential<br />
fraud. Also, I2C automation ties together<br />
elements of the I2C process that may be<br />
implemented in different departments. For<br />
example, one healthcare company shaved two<br />
whole days off the process for implementing<br />
electronic proof of delivery, something that was<br />
only possible by using Intelligent Automation<br />
to manage and match files to invoices and<br />
deliver these as a single document. At its<br />
best, automation allows you to break down<br />
organisational siloes and take control of a<br />
fragmented I2C process.<br />
THE TIME IS NOW<br />
I2C has largely escaped the digital transformation<br />
that is sweeping across every other part of<br />
the organisation – and it urgently needs to<br />
be part of this revolution. Now is precisely<br />
the time to take such a step, when everyone is<br />
re-evaluating their processes and taking an<br />
active interest in online solutions to what<br />
today are off-line problems (like paper-based<br />
invoicing) – and when the COVID-19 crisis has<br />
showcased the benefits of automation like never<br />
before.<br />
Before the lockdown, I2C automation was<br />
important. It’s now almost mandatory.<br />
Holly Scott-Donaldson is Head of Direct Sales<br />
for Data Interconnect. For more information<br />
visit: https://bit.ly/expert-time<br />
Now is precisely the<br />
time to take such a<br />
step, when everyone<br />
is re-evaluating their<br />
processes and taking an<br />
active interest in online<br />
solutions.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 19
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Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 21
LEGAL MATTERS<br />
SPARK OUT<br />
A landmark case may have far-reaching<br />
consequences for liquidators and creditors.<br />
AUTHORS – Jackie Ray FCI<strong>CM</strong> and Jennifer Guthrie<br />
THIS case of Bresco<br />
Electrical Services Ltd (in<br />
liquidation) v Michael J<br />
Lonsdale (Electrical) Ltd<br />
concerned the right of a<br />
company in liquidation to<br />
have its claim relating to a construction<br />
contract referred to an independent<br />
adjudicator under the Construction<br />
Adjudication Regime set up in 1996.<br />
In 2014 Bresco had been contracted to<br />
carry out electrical works for Lonsdale.<br />
Lonsdale later claimed more than £300,000<br />
from Bresco as compensation for failing<br />
to complete work due under the terms of<br />
the contract. Bresco claimed it was owed<br />
some £219,000 by Lonsdale for services it<br />
had provided under the contract. Bresco<br />
had since gone into liquidation.<br />
The liquidator referred the matter to<br />
an Adjudicator, but Lonsdale claimed<br />
that cross-claims could not be referred<br />
to Adjudication where one company is<br />
in liquidation, as insolvency legislation<br />
(principally the 1986 Insolvency Act)<br />
provides for cross claims in these<br />
circumstances to be set-off between the<br />
company in liquidation and its creditors,<br />
resulting in a simple net balance owed.<br />
Effectively, they argued, insolvency<br />
set-off rendered the claims under the<br />
contract void, so it could not be referred<br />
to Adjudication.<br />
PERCEIVED CONFLICT<br />
Essentially, therefore, the case concerns<br />
a perceived conflict between the<br />
construction Adjudication regime and<br />
the set-off provisions of the insolvency<br />
legislation. Lonsdale applied to the<br />
Technology and Construction Court for an<br />
injunction stopping the adjudication on<br />
that the basis that the set-off requirement<br />
rendered the cross-claims replaced by a<br />
single net balance, so there were no longer<br />
any claims to be referred to an adjudicator,<br />
and the adjudicator accordingly had no<br />
jurisdiction (the ‘Jurisdiction’ point).<br />
The Court accepted that argument and<br />
granted Lonsdale’s injunction. Bresco<br />
considered that the decision was wrong as<br />
a matter of insolvency law and appealed.<br />
In the Court of Appeal, the Jurisdiction<br />
argument was overturned, but the Court<br />
of Appeal introduced a new argument,<br />
on the basis of ‘futility’. Effectively,<br />
Court of Appeal said that Adjudications<br />
by insolvent companies would be<br />
futile since it is highly unlikely that any<br />
award in favour of an insolvent company<br />
would be enforced by a Court. Bresco then<br />
appealed to the Supreme Court. Lonsdale<br />
cross-appealed on the Jurisdiction point.<br />
The Supreme Court decision was<br />
unanimous. Lord Briggs delivered the<br />
judgment that found in favour of Bresco<br />
on both points. He emphasised that the<br />
Construction Adjudication Scheme has<br />
been highly successful as a means of<br />
alternative dispute resolution, saving<br />
huge sums in legal fees and valuable<br />
time that would otherwise have been<br />
spent in litigation through the Courts.<br />
It is also evident that Adjudication<br />
decisions are rarely challenged, as the<br />
parties are generally prepared to treat<br />
the Adjudication as binding. Or, as Lord<br />
Briggs phrased it during the hearing,<br />
the parties are generally not ‘sufficiently<br />
unhappy’ to pursue matters further after<br />
an Adjudication decision.<br />
In upholding the Court of Appeal<br />
judgment on the Jurisdiction point, Lord<br />
Briggs said that the insolvency set-off does<br />
not mean there is no longer any dispute<br />
under the terms of the construction<br />
contract, or that the respective claims<br />
are invalidated. Bresco would still<br />
have had the right to have the value<br />
of its claim determined in Court or<br />
through arbitration. It followed that the<br />
claim could also be referred to<br />
Adjudication.<br />
In allowing Bresco’s appeal on the<br />
Futility point, Lord Briggs made clear<br />
that the starting point is that it would<br />
ordinarily be inappropriate for a Court<br />
to interfere with the exercise of a<br />
statutory and contractual right. Indeed,<br />
Adjudication in the circumstances was<br />
an effective means for the liquidator to<br />
determine the value of the net balance.<br />
Enforcement of an Adjudication decision<br />
by way of summary judgment, rather than<br />
affecting the utility of the Adjudication<br />
process, is properly to be addressed<br />
at the enforcement stage, if there<br />
is one.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 22
LEGAL MATTERS<br />
AUTHORS – Jackie Ray FCI<strong>CM</strong> and Jennifer Guthrie<br />
In the Court of Appeal, the Jurisdiction<br />
argument was overturned, but the Court<br />
of Appeal introduced a new argument, on<br />
the basis of ‘futility’.<br />
Lord Briggs’ judgment confirms a strong belief that<br />
there is no conflict between the insolvency set-off<br />
regime and the construction adjudication process.<br />
The ‘conflict’ that had been perceived between the<br />
regimes was caused by an over-literal reading of the<br />
judgment of Lord Hoffman in Stein v Blake.<br />
FAR-REACHING CONSEQUENCES<br />
The Supreme Court’s decision thus has farreaching<br />
consequences for liquidators (and,<br />
by extension, administrators) of construction<br />
companies where there are outstanding<br />
contractual disputes, and for the counterparties<br />
to those contracts. It makes clear that<br />
there is no conflict between insolvency set-off<br />
and Adjudication, and clarifies the scope of the<br />
Adjudication regime as a mechanism for practical<br />
and speedy resolution of construction contract<br />
claims.<br />
Lord Briggs’ judgment confirms a strong belief<br />
that there is no conflict between the insolvency<br />
set-off regime and the construction adjudication<br />
process. The ‘conflict’ that had been perceived<br />
between the regimes was caused by an over-literal<br />
reading of the judgment of Lord Hoffman in Stein<br />
v Blake. Lord Hoffman never suggested that the<br />
underlying causes of action lost their separate<br />
identity entirely – simply that all that could be<br />
assigned after liquidation is the net balance.<br />
The positive news for creditors is that the<br />
insolvent party may be able to recover monies<br />
validly owed to it through the Adjudication<br />
process which is a quick and, in relative terms,<br />
fairly low-cost alternative to Court proceedings.<br />
So how easy is it now for Administrators<br />
and Liquidators to use the adjudication process?<br />
There are still some pragmatic and commercial<br />
issues for Administrators and Liquidators to<br />
consider. Although the Supreme Court has<br />
made clear that a company in insolvency has an<br />
unfettered right to use Adjudication, that isn’t<br />
quite the end of the story. As a starting point, there<br />
are the Adjudicator’s fees to consider – in many<br />
insolvent construction companies, there simply<br />
isn’t the money to take the risk on those fees.<br />
There is also an open question on enforcement,<br />
which the Supreme Court effectively left to the<br />
first instance court to determine on a case-bycase<br />
basis.<br />
Could this mean greater returns in respect of<br />
construction insolvency matters? In principle,<br />
yes. The judgment will allow an alternative<br />
for Liquidators from funding litigation against<br />
entities who consider that, because of the<br />
insolvent status of the potential Claimant,<br />
payments can be withheld and spurious claims,<br />
can be made reducing liability.<br />
The authors believe this is a significant case,<br />
and one with such widespread importance – as<br />
was recognised by the Supreme Court in granting<br />
leave to appeal in the first place – that it had to be<br />
pursued. We believed that the decisions in Bresco<br />
were wrong. Our senior counsel from both Court<br />
of Appeal and Supreme Court, Peter Arden QC,<br />
agreed. And, nearly two years after the initial<br />
injunction, our persistence has been rewarded.<br />
Jackie Ray FCI<strong>CM</strong>, Partner, and Nina Bhatti,<br />
Solicitor, of Blaser Mills LLP acted for Bresco’s<br />
liquidator (through its appointed agent<br />
Pythagoras Capital) in the successful appeal to<br />
the Supreme Court in June <strong>2020</strong>.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 23
COUNTRY FOCUS<br />
Germany is still<br />
the engine driving<br />
Europe’s economy.<br />
German.Bite<br />
AUTHOR – Adam Bernstein<br />
ASK anyone on the Clapham<br />
omnibus what they know<br />
of German history and<br />
it’s a fair bet that they’ll<br />
offer comment about two<br />
world wars, Adolf Hitler,<br />
the Berlin Wall, BMW and Mercedes,<br />
Oktoberfest and England’s 1966 win over<br />
West Germany.<br />
While all of these are notable, Germany<br />
is much more than that and has a history<br />
that goes back as least as far as Julius<br />
Caesar where Germania – a term that<br />
Hitler resurrected for the Third Reich –<br />
was used to distinguish the region from<br />
Gaul which is now modern France.<br />
Regional dukes, princes and bishops,<br />
Martin Luther, the Holy Roman Empire<br />
and Bismarck’s unification of the<br />
German states – followed by an industrial<br />
revolution – put Germany in the position<br />
of being, by 1900, the dominant European<br />
power.<br />
Of course, the two world wars changed<br />
the equilibrium somewhat. The splitting<br />
of Germany into West and East drove<br />
the two halves in different directions<br />
economically. Communism in the East<br />
stultified its economy while the West<br />
received aid from the US in the form of<br />
the 1948 Marshall Plan. The so called<br />
Wirtschaftswunder saw an economic<br />
boom where GNP rose by 80 percent and<br />
the investment rate rose by 120 percent<br />
between 1952 and 1960.<br />
The biggest challenge Germany<br />
has faced in recent years is that of the<br />
reunification of its two parts, both<br />
culturally and economically, as cash<br />
flowed from West to East to rebuild what<br />
the communists couldn’t (or didn’t).<br />
But moving beyond the fall of the Wall,<br />
Germany now has a number of problems to<br />
contend with including the assimilation of<br />
the 1.2m refugees that applied for asylum<br />
in 2015 and 2016. (According to a report on<br />
Al Jazeera a good number are filling the<br />
skills vacuum); a rise in the right wing;<br />
the ending of the Merkel chancellorship;<br />
and whether the UK’s departure from the<br />
EU harms the economy as Germany has<br />
to make up contributions that the UK has<br />
stopped paying just as a further slowdown<br />
may follow from the possible ending of<br />
free movement and the imposition of<br />
tariffs.<br />
Germany narrowly missed recession<br />
in 2019, it may not be so lucky in <strong>2020</strong>,<br />
especially given the additional challenges<br />
of COVID-19.<br />
EUROPE’S ENGINE<br />
Even so, Germany is now – alongside<br />
France – the engine of Europe’s economy<br />
now that the UK has left the trading bloc.<br />
The country is federal in nature and<br />
comprises of 16 states, collectively known<br />
as Länder, each of which varies in size and<br />
population. By size, the largest is Bavaria<br />
with a population of 12.44million. The<br />
smallest in size and population is Bremen<br />
with just 663,000 people. The most<br />
populous is North Rhine-Westphalia with<br />
18.07million people.<br />
Being placed in the centre of Europe<br />
makes Germany a hub for goods and<br />
services that are to be distributed<br />
throughout the region; having borders<br />
with every major economy in central<br />
Europe, instant access to both established<br />
markets in western Europe and growing<br />
markets in central and eastern Europe<br />
makes Germany a country not to be<br />
ignored.<br />
Economically speaking, Germany<br />
has a social market economy, where the<br />
spirit of free enterprise is encouraged but<br />
is controlled to prevent large economic<br />
participants from seriously damaging<br />
other interests. Unfair competition,<br />
antitrust matters and the protection of<br />
the environment as well employees are all<br />
dealt with by legislation.<br />
With an estimated gross domestic<br />
product in <strong>2020</strong> of more than $4.02tn<br />
according to Trading Economics, Germany<br />
really is a global economic driving force<br />
and the world’s fourth largest economy.<br />
According to the Nasdaq, the US is placed<br />
first with a GDP of $21.44tn, followed by<br />
China ($14.14tr) and Japan $5tn.<br />
On top of that, Germany’s economy is<br />
expected to grow by about two percent<br />
in the next two years, with future growth<br />
forecast between 0.7 percent and 1.75<br />
percent over the next 20 to 50 years<br />
– assuming of course, that recession<br />
is avoided and the EU successfully<br />
concludes an agreement with the UK.<br />
As Business Development Germany puts<br />
it: ‘the consistently strong economic<br />
performance offers substantial long-term<br />
growth potential for businesses from<br />
countries such as the UK and the US.’<br />
Germany is fortunate as it is the<br />
European Union’s most populous country<br />
with 82.85million people. In comparison,<br />
France has 66.99million and now that<br />
the UK has left the EU, Italy is next<br />
with 60.48million people. Such a large<br />
population makes for a huge domestic<br />
market and its consumer market presents<br />
major opportunities for foreign companies<br />
from all sectors.<br />
SMALL BUSINESSES<br />
SME businesses are important to Germany<br />
– as, to be fair they are in other nations;<br />
82 percent of German firms are classed as<br />
micro SMEs, 15.1 percent as small SMEs<br />
and 2.4 percent as medium SMEs. Just<br />
0.5 percent of firms are noted as large<br />
enterprises. It’s notable that Business<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 24
COUNTRY FOCUS<br />
AUTHOR – Adam Bernstein<br />
Development Germany considers Germany the ‘home<br />
of the SME.’ However, Germany should be compared to<br />
the UK, where 90 percent of firms are classed as micro<br />
SMEs, 8.4 percent as small SMEs and 1.3 percent as<br />
medium SMEs with just 0.3 percent of firms are noted as<br />
large enterprises. (Data from Annual Report on European<br />
SMEs 2018/2019 published by the European Commission).<br />
But no matter the statistics, it’s important for those<br />
wanting to sell to German firms that they don’t just<br />
target the larger buyer as they’d be missing out on huge<br />
opportunities; business size is no barrier to success as the<br />
German market is particularly supportive of SMEs.<br />
No business can exist without good staff and employers<br />
in Germany are blessed with workers that are highly<br />
skilled; 81 percent of the German population has been<br />
trained to university entrance level or holds a recognised<br />
vocational qualification. This dual system of vocational<br />
education, which combines workplace training with<br />
academic training, produces highly skilled graduates<br />
who match the needs of industry. The demand for<br />
professionals is met by 383 higher education institutions<br />
and from an early age, German citizens are channelled<br />
towards careers that allow them to reach their maximum<br />
potential.<br />
In addition, the economy offers a low level of corruption<br />
and a high level of innovation. As for market segments,<br />
the services contribute approximately 71 percent of<br />
the total GDP, industry 28 percent and agriculture one<br />
percent.<br />
It also shouldn’t come as a surprise that Germany<br />
advocates closer European economic and political<br />
integration; its commercial policies, for example, are<br />
increasingly determined by agreements among EU<br />
members and by EU legislation.<br />
Neuschwanstein Castle is a<br />
19th-century Romanesque Revival<br />
palace on a rugged hill above the<br />
village of Hohenschwangau near<br />
Füssen in southwest Bavaria,<br />
Germany. The palace was<br />
commissioned by King Ludwig II<br />
of Bavaria as a retreat and in<br />
honour of Richard Wagner.<br />
SETTING UP A BUSINESS<br />
There are a number of main legal forms for entities<br />
trading in Germany: two societies – registered<br />
cooperative society (Eingetragene Genossensschaft<br />
– e.G.); registered association (Eingetragener Verein<br />
– e.V.); five forms of corporation – limited liability<br />
company (Gesellschaft mit beschränkter Haftung<br />
– GmbH), stock corporation (Aktiengesellschaft –<br />
AG), European company (Societas Europaea – SE),<br />
partnership limited by shares (Kommanditgesellschaft<br />
auf Aktien – KGaA), and limited liability entrepreneurial<br />
company (Unternehmergesellschaft – UG); there are<br />
five forms of partnerships – civil law partnership<br />
(Gesellschaft bürgerlichen Rechts – GbR), silent<br />
partnership (Stille Gesellschaft), general partnership<br />
(offene Handelsgesellschaft – oHG), limited partnership<br />
(Kommanditgesellschaft – KG), and professional<br />
partnership (Partnerschaftsgesellschaft – PartG).<br />
Any legally dependent operating units must be<br />
registered at the local office of trade and commerce<br />
(Industrie und Handelskammer – IHK).<br />
Where an investor sets up a branch, it must register<br />
with a notary public to be entered into the commercial<br />
register (Handelsregister). As would be expected,<br />
documentation needs to be translated and certified.<br />
Further, certain sectors – banking, financial services,<br />
insurance, pharmaceuticals, nuclear energy, public<br />
transportation and gastronomy for example – require a<br />
public licence to operate.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 25<br />
continues on page 26 >
COUNTRY FOCUS<br />
AUTHOR – Adam Bernstein<br />
Foreign direct investment isn’t an issue per<br />
se, but it should be noted that acquisitions of<br />
German firms may be called in for review by<br />
the German Federal Ministry for Economic<br />
Affairs and Energy. A number of situations<br />
require this when a 25 percent shareholding<br />
threshold is about to be crossed. International<br />
law firm Allen & Overy has reported that in<br />
recent months the ministry has ‘…tightened<br />
its approach and tends to initiate in-depth<br />
review procedures. At the same time, clearance<br />
procedures become more complex.’ In other<br />
words, the process should be planned for.<br />
EMPLOYEE WELFARE<br />
Just as in the UK, Germany has no single<br />
piece of legislation governing employment<br />
relationships and there is no consolidated<br />
employment law code. Collective bargaining<br />
agreements (Tarifverträge), works agreements<br />
(Betriebsvereinbarungen) and case law have<br />
a bearing on relationships. In the event of a<br />
conflict, the provision that’s most advantageous<br />
for the employees applies. Germany differs<br />
from the UK in that the importance of case law<br />
is much higher in employment law than in the<br />
rest of the German legal system.<br />
Aside from a few exceptions (such as fixedterm<br />
contracts), employment contracts do not<br />
need to be in writing. With the official language<br />
being German, it is sensible to use bi-lingual<br />
contracts.<br />
It should also be noted that Germany<br />
has provisions in the law for dealing with<br />
discrimination, minimum wages, sick pay<br />
(after four weeks of employment workers get up<br />
to six weeks at 100 percent of pay, beyond that<br />
a lower level), holiday entitlements based on<br />
EU law, and protection against unfair dismissal<br />
after six months if more than 10 people are<br />
employed ‘unless socially justified.’<br />
On top of this is a right to establish a works<br />
council if more than five people are employed.<br />
Councils are consulted on social, personnel<br />
and economic matters.<br />
DISPUTE RESOLUTION<br />
Over time ordinarily tranquil business<br />
relationships can sour leaving firms with messy<br />
disputes to resolve. Disputes in Germany are<br />
resolved by the state courts, but the sides may,<br />
however, choose to use arbitral tribunals or to<br />
alternative dispute resolution mechanisms.<br />
Germany has three main types of court – civil,<br />
criminal and administrative – with the former<br />
most likely to be used. In German litigation<br />
proceedings written submissions are key. That<br />
said, it’s the judge who takes the leading role –<br />
they will decide whether to retain an expert or<br />
order any person to testify as a witness. Unlike<br />
in the UK, there is no disclosure of information<br />
and each must provide the evidence on which<br />
it wishes to rely.<br />
It’s of note that in general, the unsuccessful<br />
party regularly ends up bearing the court<br />
fees and the opponent’s lawyer fees. Also, any<br />
reimbursement will only ever include statutory<br />
fees which more often than not, is considerably<br />
lower than the actual legal fees. The average<br />
civil case – in the first and second instance –<br />
takes nine to ten months. Appeals to the highest<br />
courts are rare. And judgments can be enforced<br />
through seizure of movable assets, monetary<br />
claims or enforcement against real estate by<br />
way of, for example, forced public auction.<br />
In comparison to the courts which are<br />
public and appealable, arbitration is private<br />
and findings are final.<br />
INTELLECTUAL PROPERTY<br />
Any civilised society protects the creations that<br />
power businesses and Germany is no different.<br />
EU law permits trademarks, designs and from<br />
2018 onwards, patents, to be registered in one<br />
country – Germany – and for the registration to<br />
count EU-wide. Trademarks, designs, patents,<br />
and utility models (but not copyright) are<br />
registered at the German Patent and Trademark<br />
Office. Further, protection of product designs<br />
and business achievements is available under<br />
German law against unfair competition.<br />
Copyright is considered personal and unable to<br />
be assigned – only licensed.<br />
TAXATION<br />
Lastly, tax affects profitability. In Germany,<br />
there are three different types of income<br />
taxes – Einkommensteuer, which is imposed<br />
on individuals; Körperschaftsteuer, which is<br />
imposed on corporations; and Gewerbesteuer<br />
which is paid by individuals or corporations in<br />
trade or a business.<br />
Corporations are generally subject to German<br />
corporate income tax at a uniform rate of 15.825<br />
percent (including the solidarity surcharge on<br />
its worldwide income. Partnerships themselves<br />
are not subject to German corporate income<br />
tax; instead the partners – corporate or<br />
individuals – are taxed at the regular German<br />
corporate income tax rate.<br />
There is also a German trade tax rate which<br />
depends on the local municipality where the<br />
permanent establishment is located and ranges<br />
from seven percent to 17.5 percent.<br />
Personal income tax – Einkommensteuer<br />
– is banded. There’s a nil rate band to €8004<br />
per annum. Between that sum to a ceiling of<br />
€52,882 it’s 14 percent to 42 percent. The next<br />
band is 42 percent up to €250,731 and above<br />
that it’s 45 percent.<br />
As for VAT, purchases attract a rate of 19<br />
percent which is generally recoverable by the<br />
acquirer if the acquirer qualifies as a taxable<br />
person for German valued added tax.<br />
IN SUMMARY<br />
Germany is a land of opportunity with a welleducated<br />
and hardworking labour force.<br />
The economy is facing new challenges, but<br />
exporters would do well to attempt to gain a<br />
foothold in the country.<br />
Adam Bernstein is a freelance<br />
business writer.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 26
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 27
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OPINION<br />
NEW<br />
FEATURE<br />
ALL SYSTEMS GO<br />
UK support scheme receives EC go-ahead.<br />
AUTHOR – Kevin Godier<br />
Kevin Godier<br />
THE European Commission<br />
(EC) has finally approved<br />
plans for approximately<br />
€11bn (GBP £9.9bn) in<br />
temporary UK state aid to<br />
guarantee private trade<br />
credit insurance (TCI) cover for British<br />
businesses during the COVID-19 crisis. The<br />
late July move ended a 10-week wait since<br />
a mid-May Government pledge to backstop<br />
excess losses that UK credit insurers may<br />
suffer from offering such cover. Now, the<br />
UK Government has effectively become<br />
a reinsurer, able to shoulder 90 percent<br />
of potential losses in return for a similar<br />
portion of the participating insurers’<br />
premium.<br />
The state support scheme is the first of<br />
its kind in the UK, adding to the protection<br />
that TCI underwriters in Britain already<br />
had in place against large losses through<br />
their existing reinsurance programmes.<br />
However, with multiple signals suggesting<br />
that corporate payment defaults triggered<br />
by the coronavirus outbreak could<br />
outstrip levels experienced during the<br />
One onlooker, Fitch Ratings, believes<br />
that the trade credit backstops<br />
provided by Governments in Europe<br />
and elsewhere – as well as overall<br />
measures to aid the global economy<br />
– can help stem potential TCI losses<br />
from the COVID-19 fallout.<br />
global financial crisis of 2008/09, the TCI<br />
industry has understandably adopted a<br />
significantly more cautious approach to<br />
B2B business activity. In a statement, the<br />
EC explained that its approval for the UK<br />
initiative aligned with European Union<br />
(EU) state aid rules, on the grounds that<br />
the economic fallout from the pandemic<br />
has lessened appetite within the insurance<br />
sector to cover businesses under trade<br />
credit policies.<br />
The backstop means trade credit<br />
insurers in Britain can maintain the level<br />
of protection offered to businesses before<br />
the coronavirus outbreak. In the UK, TCI<br />
provided cover for £171bn of business<br />
activity at end-April <strong>2020</strong>, covering 13,000<br />
suppliers and 650,000 buyers, according to<br />
the Association of British Insurers (ABI).<br />
Essentially, the UK Government can now<br />
pay 90 percent of TCI claims, with insurers<br />
picking up the tab for the remaining 10<br />
percent of losses. The scheme is open to<br />
all trade credit insurers in the UK until<br />
the end of the year, the EC said. All UKdomiciled<br />
businesses with a trade credit<br />
insurance policy can be covered for both<br />
their domestic and export trade, and there<br />
will be a review at the end of <strong>September</strong> on<br />
potentially extending the scheme.<br />
The move was welcomed by Atradius,<br />
which confirmed the scheme is ‘now<br />
in place and operational.’ The initiative<br />
‘improves the trading environment for<br />
those firms that purchase credit insurance<br />
(our customers) and for the hundreds<br />
of thousands of UK businesses that are<br />
covered in our portfolio (our customers’<br />
customers),’ according to an Atradius<br />
spokesperson. This view was corroborated<br />
by the ABI, which said the new scheme ‘is on<br />
track to ensure that widespread availability<br />
of cover can continue.’ It said that TCI<br />
underwriters ‘have been considering their<br />
involvement in the scheme, with a number<br />
of major providers having confirmed<br />
their participation.’ Atradius, Coface,<br />
Euler Hermes, Markel Corporation and<br />
QBE Insurance Group have opted into the<br />
scheme, S&P Global noted on 2 August.<br />
The delays were explained by one<br />
participant as tightly linked to the<br />
complexity and size of the agreement. ‘It<br />
could be compared to an M&A deal, with<br />
lots of moving parts, and last-minute<br />
adjustments. The need for all parties – the<br />
UK Treasury, the Department for Business,<br />
Energy and Industrial Strategy, the ABI,<br />
private TCI underwriters and the EC itself<br />
– to agree took up considerable amounts of<br />
time.’<br />
One onlooker, Fitch Ratings, believes<br />
that the trade credit backstops provided<br />
by Governments in Europe and elsewhere<br />
– as well as overall measures to aid the<br />
global economy – can help stem potential<br />
TCI losses from the COVID-19 fallout.<br />
Fitch said that pandemic-related credit<br />
insurance claims will peak in late <strong>2020</strong><br />
and continue well into 2021, after which<br />
credit insurers’ financial performance<br />
should then improve as they re-underwrite<br />
business at higher prices to recoup losses<br />
and meet higher demand.<br />
Kevin Godier is a freelance journalist and<br />
editor of International Trade Finance.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 29
INTERNATIONAL<br />
TRADE<br />
Monthly round-up of the latest stories<br />
in global trade by Andrea Kirkby.<br />
A tale of<br />
TWO COUNTRIES…<br />
IF you’re selling into parts of the Middle<br />
East be careful of the currency you use.<br />
Take Lebanon. It appears that the<br />
country’s financial meltdown has thrown<br />
the Lebanese into a frantic search for dollars<br />
as their local currency’s value has evaporated.<br />
From reports, deals are being negotiated on a<br />
daily basis as the Lebanese pound continues<br />
a downward spiral. Everyone wants to, but<br />
cannot, pay in US dollars held in accounts<br />
frozen by the Government in need of foreign<br />
exchange.<br />
Since 1997, the local currency, the pound,<br />
was pegged at around 1,500 to the dollar;<br />
but this rate created what was essentially<br />
a Ponzi scheme where the banks loaned to<br />
successive Governments who borrowed to<br />
finance massive public debt and pay for vital<br />
imports like fuel — but also luxury goods.<br />
The problem is that the deposits to fund the<br />
lending came mainly from expats attracted to<br />
high interest rates which has collapsed along<br />
with direct foreign investments.<br />
Now, thousands have fallen into poverty<br />
– wages are worthless and prices are<br />
skyrocketing. Many retailers have shut down,<br />
unable to import or price goods with the<br />
fluctuating rates. Some have either closed or<br />
only take payment in dollars.<br />
The peg remains in place officially,<br />
even as the black-market price of a dollar<br />
has spiralled to at least five times that.<br />
Meanwhile, the authorities imposed rationing<br />
on exchange bureaus, limiting how many<br />
dollars a person can buy and setting a rate<br />
higher than the peg but lower than the black<br />
market.<br />
And the situation in Iran is no better. Its rial<br />
is now at its weakest against the US dollar –<br />
life is not only expensive, but the economy<br />
is in trouble following coronavirus and US<br />
sanctions. Just like Lebanon, the official and<br />
black-market rates are poles apart – 215,000<br />
rials versus an official rate of 42,000 to the<br />
dollar<br />
The central bank has had to inject millions<br />
of dollars to stabilise the rial, but this is<br />
introducing further inflationary pressures<br />
into the market. And foreign currency is hard<br />
to earn – Iran’s oil exports once stood at 2.5m<br />
barrels a day in April 2018 but is around 100-<br />
200,000 now.<br />
As to the people, few can now escape<br />
hardship – the higher echelons and ordinary<br />
workers are equally feeling the impact of the<br />
sinking rial.<br />
The point is very simple. The Lebanese and<br />
Iranian economies are in dire straits; tread<br />
carefully and protect your currency position<br />
when sealing deals.<br />
Now, thousands have fallen into<br />
poverty – wages are worthless<br />
and prices are skyrocketing.<br />
Many retailers have shut down,<br />
unable to import or price goods<br />
with the fluctuating rates.<br />
EUROZONE RECESSION 'WILL BE DEEPER THAN FORECAST'<br />
BUT if the UK is in trouble, so the<br />
eurozone is also in the mire reckons the<br />
European Commission. It thinks that the<br />
union’s GDP will shrink by 8.7 percent<br />
this year before growing 6.1 percent in<br />
2021. France, Italy and Spain appear to be<br />
struggling the most.<br />
The Commission revised its previous<br />
forecasts because lifting coronavirus<br />
lockdown measures in eurozone countries<br />
was taking longer than it had initially<br />
thought.<br />
Growth forecasts for France, Italy and<br />
Spain were specifically cut after they<br />
were hit hard by coronavirus; the<br />
commission now expects downturns of<br />
more than 10 percent this year in each<br />
of the three nations. In comparison,<br />
Germany has suffered less with<br />
coronavirus and so should see a 6.3<br />
percent contraction. The bounce back<br />
will depend entirely on any new waves<br />
of infections, unemployment, corporate<br />
insolvencies, and an EU-UK Brexit trade<br />
deal.<br />
It’s getting quite dull to say this but<br />
consider which EU nations you export to<br />
and think about refocussing if necessary.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 30
(DON’T) ROCK<br />
THE CASBAH<br />
The UK as an emerging market?<br />
GRANTED that this is a little introspective,<br />
but it’s interesting. A report on CNN<br />
Business has suggested that Brexit and<br />
coronavirus is radically altering the UK’s<br />
economy so that it could actually end up<br />
looking more like an emerging economy<br />
than one akin to that seen in France,<br />
Germany or the United States.<br />
A volatile currency, declining global<br />
influence and a reliance on foreign<br />
investors could change our standing in<br />
the world. As that Bank of America noted<br />
when it wrote in a note to clients, ‘we<br />
believe (the pound) is in the process of<br />
evolving into a currency that resembles the<br />
underlying reality of the British economy:<br />
small and shrinking.’ That said, Thomas<br />
The class ceiling might soon shatter<br />
NO one likes using the c-word, but<br />
coronavirus is continuing to cause havoc,<br />
especially so among the most vulnerable<br />
in Africa. According to the World Bank,<br />
around 58m Africans could be pushed<br />
into ‘extreme poverty’. But while the poor<br />
are the most likely to suffer, it appears<br />
that coronavirus is chipping away at the<br />
middle class on the continent – the people<br />
most likely to buy imported goods from<br />
cars and healthcare to consumer products.<br />
It’s this group that is the most<br />
educated, has set up a business and has<br />
boosted consumer demand. As noted in<br />
MoneyWeek, ‘in 30 years, this section of<br />
Playing a long game<br />
TIME performs marvels. It allows rifts to<br />
heal, technologies to develop and societies<br />
to change. Indeed, according to the UN<br />
World Population Prospects 2019, the<br />
planet Earth had a population of ‘just’ 1bn<br />
in 1800, 2bn in 1930, 6bn by 1999 and has<br />
some 7.8bn upon its surface now.<br />
The UN has offered population<br />
forecasts for the future that range wildly<br />
from a high of 15.6bn to a low of 7.3bn<br />
in 2100. The Lancet, a medical journal,<br />
reckons that the figure could stand at<br />
9.7bn by 2064 but may well drop to 8.8bn<br />
by 2100 – a fall caused by the better<br />
education of women and improvements to<br />
contraception.<br />
Now where the story gets interesting<br />
is in where the changes are expected to<br />
happen. It’s predicted that populations<br />
in 23 nations including Japan, Spain<br />
Pugh, UK economist at the research firm<br />
Capital Economics is of the view that<br />
‘we don't think there’s any risk that the<br />
UK is suddenly going to be viewed as<br />
an emerging market, but (Brexit and the<br />
country's response to the pandemic) will<br />
weigh on confidence.’<br />
Could this affect our ability to export?<br />
Unlikely, but it is a consideration. The UK<br />
economy is seeing its worst downturn in<br />
more than 300 years and there’s less than<br />
six months to hammer out a new trade<br />
deal with the European Union, our biggest<br />
export market. The question is…while we<br />
need the rest of the world, will it need us?<br />
We are still the sixth largest economy in the<br />
world, but for how much longer?<br />
society has trebled according to some<br />
estimates, and around 170m of Africa’s<br />
1.3bn population is now defined as middle<br />
class.’<br />
But recession is looming and it’s<br />
possible that around eight million could<br />
be ‘knocked back into poverty’; jobs will<br />
be hit and there is little social security to<br />
protect them or their buying power.<br />
So, if you’re an exporter of consumerled<br />
goods with Africa as a key market,<br />
now would be a good time to consider<br />
where else to develop your reach or at the<br />
minimum, look at which countries have<br />
the furthest to fall.<br />
and Italy will fall by half and another 34<br />
countries – including China – will see<br />
their populations decline by at least 25<br />
percent. In comparison, much of Africa<br />
will see populations at least treble. On top<br />
of that the workforces in China, Spain,<br />
Germany and the UK will drop markedly<br />
and there will be more workers based in<br />
Africa.<br />
Overall the world is going to get much<br />
greyer as the over 80’s outnumber those<br />
under five, two to one. And if you agree<br />
with what the Lancet is predicting, Africa<br />
and the Arab world is the future – Europe<br />
and much of the old order will be relegated<br />
to a ‘has been’.<br />
What does this all mean for exporters?<br />
It’s simple – don’t just look at the here and<br />
now, look to the long-term future and to<br />
changing demographics.<br />
NOTHING triggers market disturbances<br />
like a little local economic meltdown.<br />
And so it is in Algeria where a crackdown<br />
on protesters has seen the authorities<br />
arresting dozens of opposition activists.<br />
Dissent is on the rise.<br />
At issue is what some describe as a<br />
military run system mired in repression,<br />
corruption and economic mismanagement.<br />
The big problem for Algeria, and those<br />
that export to it, is that the economy is<br />
reliant on oil and gas exports – more than<br />
93 percent of its foreign currency reserves<br />
are earned from them. As the world has<br />
seen, coronavirus has lowered demand for<br />
both, and prices have consequently fallen,<br />
a move that has hurt an oil and gas sector<br />
already in decline before coronavirus<br />
struck.<br />
Despite Governmental promises to<br />
diversify the economy, reforms are slow in<br />
coming and GDP is expected to shrink by<br />
5.2 percent and the budget deficit to climb<br />
to 20 percent of GDP. It’s clear – market<br />
trouble is coming to Algeria, so if you want<br />
to ‘rock the casbah’, consider streaming the<br />
Clash without risking your cash.<br />
GROUNDHOG<br />
DAY FOR JAPAN?<br />
JAPAN is heading for more economic<br />
trouble and its worst post-war recession.<br />
According to the Japan Times,<br />
unemployment is at a three year high at 2.6<br />
percent, industrial output is at its lowest<br />
level since the global financial crisis in<br />
2008, and retail sales fell by 12.3 percent<br />
in May (which is hardly surprising since<br />
the VAT rate was hiked again last October<br />
and coronavirus has dented incomes). In<br />
essence, when the Government releases<br />
the data, the NLI Research Institute is<br />
expecting a big contraction in the April-<br />
June figures given the weak domestic and<br />
international demand.<br />
All of this should put exporters on<br />
notice that the Japanese economy is not<br />
the bedrock that it once was.<br />
EXCHANGE RATES VISIT CURRENCYUK.CO.UK<br />
OR CALL 020 7738 0777<br />
Currency UK is authorised and regulated<br />
by the Financial Conduct Authority (FCA).<br />
GBP/EUR<br />
GBP/USD<br />
GBP/CHF<br />
GBP/AUD<br />
GBP/CAD<br />
GBP/JPY<br />
CURRENCY UK<br />
HIGH LOW TREND<br />
1.11483 1.09462 Up<br />
1.31767 1.25158 Up<br />
1.20159 1.17634 Flat<br />
1.83875 1.77025 Up<br />
1.76561 1.69907 Up<br />
134.22069 140.15916 Up<br />
This data was taken on 17th August and refers to the<br />
month previous to/leading up to 16th August <strong>2020</strong>.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 31
ADVISORY COUNCIL<br />
Shaping the future<br />
CI<strong>CM</strong> Advisory Council gains new members.<br />
AUTHOR – Iona Yadallee<br />
THE CI<strong>CM</strong> Advisory Council<br />
has gained eight newly<br />
elected members who took<br />
up their positions in June<br />
and who will be bringing<br />
their individual insights and<br />
experience to the Council.<br />
The success of the Advisory Council<br />
is centred around having members from<br />
different specialisms and regions so<br />
that it reflects the diverse range of skills<br />
and experience amongst the Institute’s<br />
membership. All those on the Advisory<br />
Council, currently comprising of 19<br />
members in total, are making a valuable<br />
contribution to the credit profession and<br />
the CI<strong>CM</strong>, sharing ideas and opinions to<br />
help formulate strategy and helping to<br />
shape the future direction of the Institute.<br />
They are also tasked with actively raising<br />
the profile of the credit management<br />
community to a wider business audience.<br />
Alice Purdy MCI<strong>CM</strong>(Grad), E.ON Heat<br />
squad lead at E.ON UK was motivated<br />
to join the Advisory Council as she is<br />
passionate about the Institute and what<br />
it can do to support others like her: “I<br />
have been a member since 2013 and have<br />
enjoyed my learning experience, and so I<br />
want to give back to the Institute and help<br />
other members.<br />
“I want to help members by listening<br />
and acting on what is important to them.<br />
The next few years are going to be really<br />
tough in the credit industry due to the<br />
COVID crisis and Brexit and I want to<br />
ensure the Institute can do everything it<br />
can for our members and partners to help<br />
this vital industry thrive.”<br />
Similarly, Brendan Clarkson FCI<strong>CM</strong>,<br />
Director of CVR Global stood for election<br />
as a natural step in a profession that he<br />
respects and one that is at the heart of the UK<br />
economy: “I started in credit 26 years ago,<br />
and whilst my career veered to Insolvency<br />
I have never been that far away. My<br />
advisory position of Credit Services is one<br />
where I believe I can add great value too.<br />
I intend to champion the Institute<br />
and raise the understanding of a credit<br />
team.”<br />
As another newly elected member,<br />
Charles Mayhew FCI<strong>CM</strong>, Director of<br />
Global Credit Recoveries hopes to share<br />
the knowledge and contacts he has built<br />
up over a quarter of a century in credit:<br />
“I am hoping to be able to assist members<br />
who may be looking to gain experience on<br />
export debt collection, and to add to the<br />
CI<strong>CM</strong> knowledge bank, and encourage<br />
new students and members, especially<br />
in overseas territories such as the Middle<br />
East.”<br />
“I want to help members by listening and acting on what is<br />
important to them. The next few years are going to be really<br />
tough in the credit industry due to the COVID crisis and Brexit<br />
and I want to ensure the Institute can do everything it can for<br />
our members and partners to help this vital industry thrive.”<br />
Alice Purdy MCI<strong>CM</strong>(Grad)<br />
Sarah Aldridge<br />
FCI<strong>CM</strong>(Grad)<br />
Debbie Nolan<br />
FCI<strong>CM</strong>(Grad)<br />
Chris Sanders<br />
FCI<strong>CM</strong><br />
Victoria Herd<br />
FCI<strong>CM</strong>(Grad)<br />
Larry Coltman<br />
FCI<strong>CM</strong><br />
Laurie Beagle<br />
FCI<strong>CM</strong><br />
Glen Bullivant<br />
FCI<strong>CM</strong><br />
Alan Church<br />
FCI<strong>CM</strong>(Grad)<br />
Niall Cooter<br />
FCI<strong>CM</strong><br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 32
ADVISORY COUNCIL<br />
“I started in credit 26 years ago, and whilst my<br />
career veered to Insolvency I have never been<br />
that far away. My advisory position of Credit<br />
Services is one where I believe I can add great<br />
value too. I intend to champion the Institute<br />
and raise the understanding of a credit team.”<br />
Brendan Clarkson FCI<strong>CM</strong><br />
Peter Gent<br />
FCI<strong>CM</strong>(Grad)<br />
Alice Purdy<br />
MCI<strong>CM</strong>(Grad)<br />
Philip Holbrough<br />
MCI<strong>CM</strong><br />
Phil Rice<br />
FCI<strong>CM</strong><br />
Bryony Pettifor<br />
FCI<strong>CM</strong>(Grad)<br />
Neil Jinks<br />
FCI<strong>CM</strong><br />
Allan Poole<br />
MCI<strong>CM</strong><br />
Brendan Clarkson<br />
FCI<strong>CM</strong><br />
“I am hoping to be able to assist members<br />
who may be looking to gain experience on<br />
export debt collection, and to add to the<br />
CI<strong>CM</strong> knowledge bank, and encourage new<br />
students and members, especially in overseas<br />
territories such as the Middle East.”<br />
Charles Mayhew FCI<strong>CM</strong><br />
Trade Credit Representatives<br />
Sarah Aldridge FCI<strong>CM</strong>(Grad)<br />
Victoria Herd FCI<strong>CM</strong>(Grad)<br />
Phil Rice FCI<strong>CM</strong><br />
International Credit Representatives<br />
Laurie Beagle FCI<strong>CM</strong><br />
Glen Bullivant FCI<strong>CM</strong><br />
Bryony Pettifor FCI<strong>CM</strong>(Grad)<br />
Consumer Credit Representatives<br />
Niall Cooter FCI<strong>CM</strong><br />
Neil Jinks FCI<strong>CM</strong><br />
Debbie Nolan FCI<strong>CM</strong>(Grad)<br />
Credit Services Representatives<br />
Brendan Clarkson FCI<strong>CM</strong><br />
Larry Coltman FCI<strong>CM</strong><br />
Chris Sanders FCI<strong>CM</strong><br />
Regional areas covered<br />
Alice Purdy MCI<strong>CM</strong>(Grad) ....East Midlands<br />
Vacant ....East of England<br />
Alan Church FCI<strong>CM</strong>(Grad) ....London<br />
Allan Poole MCI<strong>CM</strong> ....North East<br />
Peter Gent FCI<strong>CM</strong>(Grad) ....North West<br />
Stephen Thomson FCI<strong>CM</strong> ....Scotland, Northern Ireland & Ireland<br />
Charles Mayhew FCI<strong>CM</strong> ....South East<br />
Vacant ....South West<br />
Vacant ....Wales<br />
Vacant ....West Midlands<br />
Philip Holbrough MCI<strong>CM</strong> ....Yorkshire & Humber<br />
Charles Mayhew<br />
FCI<strong>CM</strong><br />
Stephen Thomson<br />
FCI<strong>CM</strong><br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 33
NEW<br />
FEATURE<br />
PANEL BASHERS<br />
Understanding DSO<br />
In our new series, we ask a panel of credit management<br />
experts to answer some of our readers’ biggest questions.<br />
Is DSO an<br />
appropriate<br />
measure of a<br />
credit team's<br />
performance?<br />
Panellist Nigel Fields<br />
FCI<strong>CM</strong><br />
ALTHOUGH, DSO is widely used to evaluate the<br />
speed that cash from sales is returned back to<br />
the business, measured in days, unfortunately<br />
it is not often fully understood by even the most<br />
senior business Directors & CFO’s. A good Credit<br />
Professional needs to be able to demonstrate why<br />
the DSO fluctuates, illustrate the causes of the ups and downs and<br />
be able to offer solutions. You can be damn sure that someone<br />
will be blamed for poor performance when a DSO is high and<br />
regrettably, the finger of blame will often be pointed directly at<br />
the Credit Manager. So, get ready to be able to defend yourself and<br />
show your true credit expertise.<br />
The standard DSO formula is calculated by dividing total credit<br />
sales for a given period, such as a month or year, by ending total<br />
receivables and multiplying the resulting number by the number<br />
of days in the period, e.g. 30 days for a month or 365 days for a year.<br />
(Ending Total Receivables / Total Credit Sales) x Number of Days<br />
in Period.<br />
So, herein lies the dilemma; say a salesperson is offering<br />
longer payment terms to customers to secure additional sales.<br />
These longer payment terms will increase the DSO. Maybe,<br />
some promotions are being offered but, unfortunately were not<br />
communicated effectively internally or externally, leading to<br />
disputes or deductions by customers. Again, this will impact the<br />
DSO. There are many scenarios that go beyond the control of the<br />
Credit Teams that will often cause big swings in the DSO. When<br />
credit sales decline and receivables increase or are flat, the DSO<br />
appears to have deteriorated or, if credit sales are growing, but<br />
receivables are stable the DSO appears to have improved. The<br />
DSO still is an effective and solid KPI to measure the business<br />
performance, but it is NOT a measure of the collection team’s<br />
performance alone.<br />
No matter which metric you use for your analysis, make sure<br />
that you understand exactly what influences and affects it. Become<br />
an expert in understanding it and explaining causes (rather than<br />
the ‘scapegoat’). Remember that sales, billing and collection,<br />
all influence the DSO so each should be measured for their<br />
effectiveness. Once you can measure the performance of each<br />
department, then you can then pinpoint areas for improvement<br />
and help influence change to poor business practices or processes.<br />
Also, bear in mind that sometimes, the business will simply<br />
continue to do as it did previously as it means business rather than<br />
no business.<br />
NIGEL FIELDS<br />
A career in credit management spanning more than 30 years, Nigel is now a<br />
senior consultant with a new start-up company TheBossCat.com which provides<br />
knowledge, skills and various services to a wide range of businesses. Nigel spent<br />
20 years working for Twentieth Century Fox International Film Corp. starting out<br />
in its UK business as Credit Manager and rising to Executive Director for Credit,<br />
responsible for Order to Cash (O2C) across Fox’s entire international business<br />
portfolio. Prior to Fox, he worked as the Credit Manager at Hornby Hobbies and<br />
a Credit Controller for GEC. Nigel says: “I attribute much of my career success to<br />
the CI<strong>CM</strong> community where I am always able to draw upon knowledge and skills<br />
from the extensive array of members and partners.”<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 34
PANEL BASHERS<br />
“I attribute much of my career success<br />
to the CI<strong>CM</strong> community where I am<br />
always able to draw upon knowledge<br />
and skills from the extensive array of<br />
members and partners.”<br />
Nigel Fields FCI<strong>CM</strong><br />
“Money owed by customers is an asset<br />
and for every day they don't pay, this<br />
is a drain on your cashflow and profit.”<br />
Matt Godby MCI<strong>CM</strong>(Grad)<br />
WELL, the simple answer is no! As with any<br />
area of a business, there are a range of<br />
measures that can demonstrate success – or<br />
failure.<br />
A fully functioning credit management<br />
department will be using a range of<br />
measures and targets that don’t necessarily relate the ageing of the<br />
debt book. And with it being in the ‘pounds and pence’ business,<br />
these can be tangible measures that don’t open themselves up to<br />
interpretation.<br />
Here are a few ideas from my experience. These should always<br />
be transparent to the credit controllers and built into any annual<br />
performance reviews:<br />
Panellist Matt Godby.<br />
MCI<strong>CM</strong>(Grad)<br />
MATT GODBY<br />
Matt is the Principal at Godby Credit Management, an<br />
order to cash specialist who helps businesses across the<br />
country to get paid on time by their customers. Matt has<br />
more than 25 years’ experience in credit management,<br />
having started his career with Cargill Plc. His expertise<br />
spans multiple industries, from telecoms to fashion,<br />
healthcare to logistics. As Matt says: “Money owed by<br />
customers is an asset and for every day they don't pay, this<br />
is a drain on your cashflow and profit.”<br />
If you’d like to join our panel of experts, or<br />
if you have a question to ask, contact the<br />
editor at sfeast@gravityglobal.com<br />
• Cash collection. We all know that a sale isn’t a sale until it has<br />
been paid for. A successful business relies on cashflow – not just<br />
sales – to grow. Cash targets should be put in place for individual<br />
credit controllers and the department as a whole.<br />
• Segmentation. Most debt books should have somewhere around<br />
20 percent of the customers making up 80 percent of the debt.<br />
There can often be a long tail of smaller balance customers, who<br />
may not get called at all. It’s important that the top customers get<br />
proper focus, whilst managing the whole debt book. So, targets<br />
could be based on your top 20 customers (priority), with a slightly<br />
different one for the long tail.<br />
• Customer calls. Relationships aren’t built on emails. It’s crucial<br />
that the credit controllers are making calls to customers. You get<br />
a much better feel of customers by having conversations and<br />
that means you identify risks of problems earlier. Set a minimum<br />
number of calls for each credit controller to make and regularly<br />
monitor/discuss compliance.<br />
• Risk. The primary and only reason for a credit management<br />
department is to protect the risk of the business. This means<br />
not only ensuring customers pay to terms, but also making sure<br />
the risk analysis is robust enough to understand their financial<br />
position. This means credit checking all new customers and<br />
importantly, having the authority to refuse those that present<br />
greatest risk. Existing customers should also be credit checked<br />
regularly – your own payment patterns should be built into this.<br />
I’ve created measures with my credit teams where their portfolio<br />
of customers are credit checked at least every six months.<br />
• Customer credit limits. Credit limits exist to control your<br />
business exposure to bad debt. It is therefore crucial that credit<br />
limits are kept up-to-date across your whole customer base and<br />
therefore reflect their current financial circumstances. This links<br />
directly to my risk comments above and so, when credit checking<br />
is done, credit limits should be updated routinely. It’s prudent to<br />
inform customers of their credit limit. It’s also very important that<br />
the business takes credit limits seriously and when customers<br />
reach it, necessary action (on hold, payment) is taken.<br />
Any targets and KPIs need to be fair, reasonable and measurable.<br />
I find that implementation is best achieved through agreement<br />
with staff, balanced with the commercial requirements of the<br />
business.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 35
Appointment |<br />
Credit Academy Trainer<br />
You<br />
Are a passionate expert in credit management.<br />
Are an inspiring trainer, coach and mentor.<br />
Would love the opportunity to shape and influence<br />
the credit talent in industries across the world.<br />
We<br />
Are the world’s largest recognised<br />
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Are building our training team, thanks to the<br />
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Have ambitious plans for the future.<br />
Working for the CI<strong>CM</strong> Credit Academy, the learning delivery arm of<br />
the CI<strong>CM</strong>, the new Credit Academy Trainer will enhance the capability<br />
and competencies of CI<strong>CM</strong> members, individuals and credit teams by<br />
designing and delivering training programmes and products.<br />
And there has never been a more exciting time to join our team.<br />
Go to cicm.com/vacancies for a full role description and how to apply.<br />
You have until the end of <strong>September</strong>.
HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION<br />
SOFTLY SOFTLY<br />
As lockdown restrictions have eased what does this<br />
mean for the civil enforcement industry?<br />
AUTHOR – Andrew Wilson FCI<strong>CM</strong><br />
UNSURPRISINGLY, civil enforcement<br />
visits pretty much ground to a halt<br />
during the emergency period.<br />
Thanks to the good old-fashioned<br />
common sense which enforcement<br />
agents showed, this was the case<br />
from very early on.<br />
But just to make sure, Government even gave us<br />
our own special statutory instrument to reinforce it.<br />
So, where does that leave the industry now as<br />
lockdown begins to ease? Anxious to return to work,<br />
mainly. As many High Court Enforcement businesses<br />
were left with no other option but to furlough staff<br />
or make redundancies, many more had to work from<br />
home, doing their best to enforce over the phone.<br />
Sub-contracted bailiffs were hit even worse, but<br />
don’t worry, I don’t expect you to weep a bitter tear<br />
for any of us.<br />
Our post-lockdown plan, entitled ‘A Flexible<br />
and Sympathetic Approach to Enforcement’ was<br />
submitted to the Ministry of Justice and adopted as<br />
best practice, which meant that our members and<br />
representatives could get back to work as safely and<br />
as soon as possible.<br />
We were grateful therefore to see the second<br />
statutory instrument giving us a start date of 24<br />
August for business as usual, as well as the restriction<br />
on forfeiture of commercial leases extended to 30<br />
<strong>September</strong>.<br />
But the problems we faced in lockdown<br />
aren’t going to disappear as we resume civil<br />
enforcement. To quote Russell Hamblin Boon,<br />
CEO of CIVEA, when talking to the British Parking<br />
Association: “The first person to unknowingly clamp<br />
a nurse’s car can expect a strong adverse reaction<br />
from Government.”<br />
So softly, softly is very much the order of the day.<br />
But the reality is, collecting unpaid debt is more<br />
important now than ever. Unpaid creditors are<br />
tomorrow’s debtors (as in a landlord with a tenant<br />
who can’t pay rent) and the commercial world of<br />
UK PLC needs its debt collecting (as, of course, do<br />
Government and local authorities). High Court<br />
Enforcement dealt with over 100,000 Writs in 2018,<br />
collecting just under £114 million of debt, at least<br />
half of which was B2B.<br />
Our post-lockdown plan had a secondary aim of<br />
reassuring Government that we appreciate it will<br />
take time for things to get back to normal, a recession<br />
looms and there may be further problems for the<br />
economy on the horizon (the dreaded prospect of a<br />
No Deal Brexit, anyone? Me neither).<br />
So, what exactly has changed about our normal<br />
approach, which I like to describe as firm, fair<br />
but robust.<br />
RETRAINING STAFF<br />
Well, to start with, we have been re-training all staff -<br />
particularly the front-line bailiffs. In the new reality<br />
of life between the end of lockdown and the return<br />
to normal before any personal visits are made, we<br />
are ensuring our staff and the people they meet stay<br />
as safe and healthy as possible.<br />
This includes the use of personal safety<br />
equipment, social distancing, protection of both<br />
themselves and those they meet, supporting the<br />
vulnerable and recognising mental health issues and<br />
a full understanding of what constitutes permitted<br />
activity.<br />
Pre-lockdown cases, where notice has been given,<br />
have been (or are being) contacted where possible to<br />
see if there has been any change in circumstances<br />
over the emergency period.<br />
The main concern, of course, is visits to residential<br />
addresses – bailiffs will not enter where a member<br />
of the household has coronavirus or is isolating.<br />
The vulnerable, similarly to those severely impacted<br />
financially by the pandemic, will be referred to debt<br />
advice agencies for additional support. For those<br />
who cannot pay in full, bailiffs will be encouraged<br />
to get customers to enter into Controlled Goods<br />
Agreements setting out installment plans, to keep<br />
enforcement fees to a minimum.<br />
For commercial debts, a similar approach has<br />
been (or is being) taken, again looking at installment<br />
arrangements to ease the burden on businesses as<br />
they get back to full strength.<br />
There has already been a trend to move towards<br />
office-based enforcement, rather than bailiff visits<br />
over the last few years. Bailiffs are expensive beasts<br />
to run and need only to be used when they are truly<br />
necessary. This will no doubt continue.<br />
The amount of the average CCJ has reduced in<br />
recent years partly, I think, because of the increase in<br />
court fees on issue and partly because creditors tend<br />
to chase their debts quicker than they used to - they<br />
are more willing to accept installments, backed by<br />
the leverage of further enforcement than they used<br />
to. This is because, and I’m sure many HCEOs will<br />
agree, regular installments are better than nothing<br />
and often there are no goods which can effectively<br />
be taken into control.<br />
What has always been obvious, but exemplified<br />
through this entire experience, is that the landscape<br />
of civil enforcement was always going to change. The<br />
pandemic has simply made us look much harder at<br />
what works, and what doesn’t.<br />
Andrew Wilson FCI<strong>CM</strong> is Chairman of the High<br />
Court Enforcement Officers Association (HCEOA).<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 37
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 38
We Do More<br />
Than Business Credit<br />
Understand your customer risk in uncertain times. Risk solutions to help protect<br />
your cash flow. Get your COVID-19 analysis now.<br />
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Compliance<br />
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To learn more about all things data, subscribe<br />
to Data Matters and get the latest news and<br />
insights delivered to your inbox.<br />
https://info.dnb.co.uk/DataMatters.html<br />
For more information call: 0800 001 234<br />
© Dun & Bradstreet, Inc. <strong>2020</strong><br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 39
INTRODUCING OUR<br />
CORPORATE PARTNERS<br />
For further information and to discuss the opportunities of entering into a<br />
Corporate Partnership with the CI<strong>CM</strong>, please contact corporatepartners@cicm.com<br />
Onguard is a specialist in credit management<br />
software and a market leader in innovative solutions<br />
for Order to Cash. Our integrated platform ensures<br />
an optimal connection of all processes in the Order<br />
to Cash chain and allows sharing of critical data. Our<br />
intelligent tools can seamlessly interconnect and<br />
offer overview and control of the payment process,<br />
as well as contribute to a sustainable customer relationship.<br />
The Onguard platform is successfully used<br />
for successful credit management in more than 50<br />
countries.<br />
T: +31 (0)88 256 66 66<br />
E: ruurd.bakker@onguard.com<br />
W: www.onguard.com<br />
Satago helps business owners and their<br />
accountants avoid credit risks, manage debtors<br />
and access finance when they need it – all in<br />
one platform. Satago integrates with 300+ cloud<br />
accounting apps with just a few clicks, helping<br />
businesses:<br />
Understand their customers - with RISK INSIGHTS<br />
Get paid on time - with automated CREDIT CONTROL<br />
Access funding - with flexible SINGLE INVOICE FINANCE<br />
Visit satago.com and start your free trial today.<br />
T: 020 8050 3015<br />
E: hello@satago.com<br />
W: www.satago.com<br />
HighRadius is a Fintech enterprise Software-as-a-Service<br />
(SaaS) company. Its Integrated Receivables platform<br />
reduces cycle times in the Order to Cash process through<br />
automation of receivables and payments across credit,<br />
e-invoicing and payment processing, cash allocation,<br />
dispute resolution and collections. Powered by the RivanaTM<br />
Artificial Intelligence Engine and Freeda Digital<br />
Assistant for Order to Cash teams, HighRadius enables<br />
more than 450 organisations to leverage machine<br />
learning to predict future outcomes and automate routine<br />
labour intensive tasks.<br />
T: +44 7399 406889<br />
E: gwyn.roberts@highradius.com<br />
W: www.highradius.com<br />
Bottomline Technologies (NASDAQ: EPAY) helps<br />
businesses pay and get paid. Businesses and banks<br />
rely on Bottomline for domestic and international<br />
payments, effective cash management tools, automated<br />
workflows for payment processing and bill review<br />
and state of the art fraud detection, behavioural<br />
analytics and regulatory compliance. Every day, we<br />
help our customers by making complex business<br />
payments simple, secure and seamless.<br />
T: 0870 081 8250<br />
E: emea-info@bottomline.com<br />
W: www.bottomline.com/uk<br />
Dun & Bradstreet Finance Solutions enable modern<br />
finance leaders and credit professionals to improve<br />
business performance through more effective risk<br />
management, identification of growth opportunities,<br />
and better integration of data and insights<br />
across the business. Powered by our Data Cloud,<br />
our solutions provide access to the world’s most<br />
comprehensive commercial data and insights<br />
supplying a continually updated view of business<br />
relationships that help finance and credit teams<br />
stay ahead of market shifts and customer changes.<br />
T: (0800) 001-234<br />
W: www.dnb.co.uk<br />
Key IVR provide a suite of products to assist companies<br />
across Europe with credit management. The<br />
service gives the end-user the means to make a<br />
payment when and how they choose. Key IVR also<br />
provides a state-of-the-art outbound platform delivering<br />
automated messages by voice and SMS. In a<br />
credit management environment, these services are<br />
used to cost-effectively contact debtors and connect<br />
them back into a contact centre or automated<br />
payment line.<br />
T: +44 (0) 1302 513 000<br />
E: sales@keyivr<br />
W: www.keyivr.co.uk<br />
With 130+ years of experience, Graydon is a leading<br />
provider of business information, analytics, insights<br />
and solutions. Graydon helps its customers to make<br />
fast, accurate decisions, enabling them to minimise<br />
risk and identify fraud as well as optimise opportunities<br />
with their commercial relationships. Graydon<br />
uses 130+ international databases and the information<br />
of 90+ million companies. Graydon has offices in<br />
London, Cardiff, Amsterdam and Antwerp. Since 2016,<br />
Graydon has been part of Atradius, one of the world’s<br />
largest credit insurance companies.<br />
T: +44 (0)208 515 1400<br />
E: customerservices@graydon.co.uk<br />
W: www.graydon.co.uk<br />
Tinubu Square is a trusted source of trade credit<br />
intelligence for credit insurers and for corporate<br />
customers. The company’s B2B Credit Risk<br />
Intelligence solutions include the Tinubu Risk<br />
Management Center, a cloud-based SaaS platform;<br />
the Tinubu Credit Intelligence service and the<br />
Tinubu Risk Analyst advisory service. Over 250<br />
companies rely on Tinubu Square to protect their<br />
greatest assets: customer receivables.<br />
T: +44 (0)207 469 2577 /<br />
E: uksales@tinubu.com<br />
W: www.tinubu.com.<br />
Building on our mature and hugely successful<br />
product and world class support service, we are<br />
re-imagining our risk awareness module in 2019 to<br />
allow for hugely flexible automated worklists and<br />
advanced visibility of areas of risk. Alongside full<br />
integration with all credit scoring agencies (e.g.<br />
Creditsafe), this makes Credica a single port-of-call<br />
for analysis and automation. Impressive results<br />
and ROI are inevitable for our customers that also<br />
have an active input into our product development<br />
and evolution.<br />
T: 01235 856400<br />
E: info@credica.co.uk<br />
W: www.credica.co.uk<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 40
Each of our Corporate Partners is carefully selected for<br />
their commitment to the profession, best practice in the<br />
Credit Industry and the quality of services they provide.<br />
We are delighted to showcase them here.<br />
THEY'RE WAITING TO TALK TO YOU...<br />
Hays Credit Management is a national specialist<br />
division dedicated exclusively to the recruitment of<br />
credit management and receivables professionals,<br />
at all levels, in the public and private sectors. As<br />
the CI<strong>CM</strong>’s only Premium Corporate Partner, we<br />
are best placed to help all clients’ and candidates’<br />
recruitment needs as well providing guidance on<br />
CV writing, career advice, salary bench-marking,<br />
marketing of vacancies, advertising and campaign<br />
led recruitment, competency-based interviewing,<br />
career and recruitment trends.<br />
T: 07834 260029<br />
E: karen.young@hays.com<br />
W: www.hays.co.uk/creditcontrol<br />
The Atradius Collections business model is to support<br />
businesses and their recoveries. We are seeing a<br />
deterioration and increase in unpaid invoices placing<br />
pressures on cashflow for those businesses. Brexit is<br />
causing uncertainty and we are seeing a significant<br />
impact on the UK economy with an increase in<br />
insolvencies, now also impacting the continent and<br />
spreading. Our geographical presence is expanding<br />
and with a single IT platform across the globe we can<br />
provide greater efficiencies and effectiveness to our<br />
clients to recover their unpaid invoices.<br />
T: +44 (0)2920 824700<br />
W: www.atradiuscollections.com/uk/<br />
Shoosmiths’ highly experienced team will work<br />
closely with credit teams to recover commercial<br />
debts as quickly and cost effectively as possible.<br />
We have an in depth knowledge of all areas of debt<br />
recovery, including:<br />
• Pre-litigation services to effect early recovery and<br />
keep costs down • Litigation service • Insolvency<br />
• Post-litigation services including enforcement<br />
As a client of Shoosmiths, you will find us quick to<br />
relate to your goals, and adept at advising you on the<br />
most effective way of achieving them.<br />
T: 03700 86 3000<br />
E: paula.swain@shoosmiths.co.uk<br />
W: www.shoosmiths.co.uk<br />
Forums International has been running Credit and<br />
Industry Forums since 1991 covering a range of<br />
industry sectors and international trading. Attendance<br />
is for credit professionals of all levels. Our forums<br />
are not just meetings but communities which<br />
aim to prepare our members for the challenges<br />
ahead. Attending for the first time is free for you to<br />
gauge the benefits and meet the members and we<br />
only have pre-approved Partners, so you will never<br />
intentionally be sold to.<br />
T: +44 (0)1246 555055<br />
E: info@forumsinternational.co.uk<br />
W: www.forumsinternational.co.uk<br />
Improve cash flow, cash collection and prevent late<br />
payment with Corrivo from Data Interconnect.<br />
Corrivo, intelligent invoice to cash automation<br />
highlights where accounts receivable teams should<br />
focus their effort for best results. Easy-to-learn,<br />
Invoicing, Collection and Dispute modules get collection<br />
teams up and running fast. Minimal IT input required.<br />
Real-time dashboards, reporting and self-service<br />
customer portals, improve customer communication<br />
and satisfaction scores. Cost-effective, flexible Corrivo,<br />
super-charges your cash collection effort.<br />
T: +44 (0)1367 245777<br />
E: sales@datainterconnect.co.uk<br />
W: www.datainterconnect.com<br />
Serrala optimizes the Universe of Payments for<br />
organisations seeking efficient cash visibility<br />
and secure financial processes. As an SAP<br />
Partner, Serrala supports over 3,500 companies<br />
worldwide. With more than 30 years of experience<br />
and thousands of successful customer projects,<br />
including solutions for the entire order-to-cash<br />
process, Serrala provides credit managers and<br />
receivables professionals with the solutions they<br />
need to successfully protect their business against<br />
credit risk exposure and bad debt loss.<br />
T: +44 118 207 0450<br />
E: contact@serrala.com<br />
W: www.serrala.com<br />
American Express® is a globally recognised<br />
provider of business payment solutions, providing<br />
flexible capabilities to help companies drive<br />
growth. These solutions support buyers and<br />
suppliers across the supply chain with working<br />
capital and cashflow.<br />
By creating an additional lever to help support<br />
supplier/client relationships American Express is<br />
proud to be an innovator in the business payments<br />
space.<br />
T: +44 (0)1273 696933<br />
W: www.americanexpress.com<br />
C2FO turns receivables into cashflow and payables<br />
into income, uniquely connecting buyers and<br />
suppliers to allow discounts in exchange for<br />
early payment of approved invoices. Suppliers<br />
access additional liquidity sources by accelerating<br />
payments from buyers when required in just two<br />
clicks, at a rate that works for them. Buyers, often<br />
corporates with global supply chains, benefit from<br />
the C2FO solution by improving gross margin while<br />
strengthening the financial health of supply chains<br />
through ethical business practices.<br />
T: 07799 692193<br />
E: anna.donadelli@c2fo.com<br />
W: www.c2fo.com<br />
Esker’s Accounts Receivable (AR) solution removes<br />
the all-too-common obstacles preventing today’s<br />
businesses from collecting receivables in a<br />
timely manner. From credit management to cash<br />
allocation, Esker automates each step of the orderto-cash<br />
cycle. Esker’s automated AR system helps<br />
companies modernise without replacing their<br />
core billing and collections processes. By simply<br />
automating what should be automated, customers<br />
get the post-sale experience they deserve and your<br />
team gets the tools they need.<br />
T: +44 (0)1332 548176<br />
E: sam.townsend@esker.co.uk<br />
W: www.esker.co.uk<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 41
INTRODUCING OUR<br />
CORPORATE<br />
PARTNERS<br />
For further information and to discuss the<br />
opportunities of entering into a Corporate<br />
Partnership with the CI<strong>CM</strong>, please contact<br />
corporatepartners@cicm.com<br />
The Company Watch platform provides risk analysis<br />
and data modelling tools to organisations around<br />
the world that rely on our ability to accurately predict<br />
their exposure to financial risk. Our H-Score®<br />
predicted 92 percent of quoted company insolvencies<br />
and our TextScore® accuracy rate was 93<br />
percent. Our scores are trusted by credit professionals<br />
within banks, corporates, investment houses<br />
and public sector bodies because, unlike other credit<br />
reference agencies, we are transparent and flexible<br />
in our approach.<br />
T: +44 (0)20 7043 3300<br />
E: info@companywatch.net<br />
W: www.companywatch.net<br />
‘‘<br />
CI<strong>CM</strong> offered the<br />
prospect of qualifications,<br />
but as soon as I became<br />
a member, loads of other<br />
opportunities came to<br />
light that I hadn’t initially<br />
realised were available.<br />
Molly Kane<br />
ACI<strong>CM</strong><br />
Chris Sanders Consulting (Sanders Consulting<br />
Associates) has three areas of activity providing<br />
credit management leadership and performance<br />
improvement, international working capital<br />
improvement consulting assignments and<br />
managing the CI<strong>CM</strong>Q Best Practice Accreditation<br />
programme on behalf of the CI<strong>CM</strong>. Plans for<br />
2019 include international client assignments in<br />
India, China, USA, Middle East and the ongoing<br />
development of the CI<strong>CM</strong>Q Programme.<br />
T: +44(0)7747 761641<br />
E: chris@chrissandersconsulting.com<br />
W: www.chrissandersconsulting.com<br />
Operating across seven UK offices, Menzies LLP is<br />
an accountancy firm delivering traditional services<br />
combined with strategic commercial thinking. Our<br />
services include: advisory, audit, corporate and<br />
personal tax, corporate finance, forensic accounting,<br />
outsourcing, wealth management and business<br />
recovery – the latter of which includes our specialist<br />
offering developed specifically for creditors. For<br />
more information on this, or to see how the Menzies<br />
Creditor Services team can assist you, please<br />
visit: www.menzies.co.uk/creditor-services.<br />
The value<br />
of CI<strong>CM</strong><br />
membership<br />
Molly Kane ACI<strong>CM</strong><br />
Senior Credit Controller Executive<br />
Oxford University<br />
Read more about her story and join your<br />
credit community by visiting:<br />
www.cicm.com/value-of-cicm-membership/<br />
T: +44 (0)2073 875 868 - London<br />
T: +44 (0)2920 495 444 - Cardiff<br />
W: menzies.co.uk/creditor-services<br />
info@cicm.com<br />
www.cicm.com<br />
01780 722900<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 42
EDUCATION & MARKETING<br />
CI<strong>CM</strong> Virtual Training is an ‘access anywhere’ range of interactive, online training<br />
courses, designed to give you the skills and tools you need to thrive in your credit<br />
work. Each training course offers high quality approaches to credit-related topics, and<br />
practical skills that can be used in your workplace. A highly qualified trainer, with an<br />
array of credit management experience, will guide you through the subject to give you<br />
practical skills, improved results and greater confidence.<br />
These are pre-recorded training<br />
sessions that you can access<br />
anywhere and at anytime. Short,<br />
sharp and to the point – these suit<br />
you if you are short on time, or need<br />
a quick introduction or update on a<br />
subject.<br />
These are live, interactive sessions,<br />
delivered virtually by a qualified trainer,<br />
experienced in the subject. Through<br />
a series of tasks and discussions, you<br />
will access a hands-on training session<br />
that offers the best practice approach to<br />
essential credit and debt skills.<br />
MEET YOUR TRAINER: Jules Eames FCI<strong>CM</strong>(Grad); PGCE, is a qualified teacher,<br />
trainer and credit manager with experience in credit and debt specialisms across the<br />
O2C spectrum and ancillary businesses, in consumer, B2B and export markets.<br />
These are live, interactive sessions, delivered virtually by a qualified trainer, experienced in the<br />
subject. Through a series of tasks and discussions, you will access a hands-on training session<br />
that offers the best practice approach to essential credit and debt skills.<br />
INTRODUCTORY PRICE £90.00+VAT per person. For group training, please contact info@cicm.com<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 43
INTERVIEW<br />
SMALL TALK<br />
Satago CEO Sinead McHale talks<br />
cashflow, behavioural informatics and<br />
the survival of small businesses.<br />
AUTHOR – Sean Feast FCI<strong>CM</strong><br />
AS businesses navigate their way<br />
out of lockdown, many will<br />
question how they can continue<br />
to prosper amidst a backdrop of<br />
economic uncertainty. Sinead<br />
McHale, CEO of award-winning<br />
fintech Satago, believes that technology will<br />
play an essential supporting role in the months<br />
ahead.<br />
Since starting her career in finance, Sinead<br />
has held senior management roles in New<br />
York, Dublin and London across a variety of<br />
industries including banking, investment funds,<br />
and alternative business finance. She holds<br />
a master’s degree in Strategic Management<br />
Accounting, giving her a unique perspective<br />
on small businesses, their relationship with<br />
their accountants and their cash management<br />
challenges.<br />
Founded in 2012, Satago leverages behavioural<br />
informatics, artificial intelligence and open<br />
banking to provide credit control, risk insight<br />
and ethical and transparent single invoice<br />
finance for businesses and accountants.<br />
The survival of small businesses is a<br />
particularly pertinent topic for Sinead because<br />
as well as being a small business, Satago works<br />
for small businesses. The all-in-one cash<br />
management platform was designed to help<br />
SMEs avoid credit risks, get paid faster and<br />
cover cash gaps when they need to.<br />
“Good cashflow management will be essential<br />
if SMEs are going to survive the months ahead,”<br />
she says, ‘‘I believe that Satago is in the best<br />
position to help businesses navigate these<br />
difficult times. That’s one of the reasons I am<br />
delighted to be joining CI<strong>CM</strong> as a Corporate<br />
Partner at this time.”<br />
As part of their partnership, Sinead has<br />
offered all CI<strong>CM</strong> members free access to the<br />
Satago platform for three months. “I believe<br />
CI<strong>CM</strong> members will very quickly recognise<br />
the value and support that the platform can<br />
give them in managing their cashflow. Satago<br />
is proven to help businesses avoid credit risks<br />
and get paid faster, two things which will be<br />
essential as we exit lockdown.”<br />
Sinead has an impressive CV across various<br />
sectors of business and finance, having started<br />
her career in 1999 with the Equity Derivatives<br />
Group of Deutsche Group. Prior to joining Satago<br />
she was COO and then CEO of Clear Funding,<br />
unlocking working capital for SMEs. She has<br />
also accumulated an impressive number of<br />
qualifications, including a BSc in Economics<br />
from New York University, an MSc in Strategic<br />
Management Accounting from UCD Michael<br />
Smurfit Graduate Business School, and an ICA<br />
Post Graduate Diploma in Governance, Risk<br />
and Compliance from the Alliance Manchester<br />
Business School.<br />
It was primarily through growing up in a<br />
small family business in the West of Ireland,<br />
however, that Sinead learned to appreciate<br />
how important SME survival is for the families<br />
that rely on them, the communities where they<br />
operate and, of course, the economy.<br />
“During my career I have witnessed firsthand<br />
how SMEs can be ignored by traditional<br />
lenders, often to their detriment. Satago aims to<br />
reverse that trend, giving SMEs access to fast,<br />
reliable funds when they need it via our single<br />
invoice finance facility.”<br />
COLLECTIVE LOSSES<br />
A survey by Hitachi Capital suggested that in<br />
2019, small UK businesses lost a collective total<br />
of £51.5bn due to late payments. That number<br />
was unacceptable before coronavirus struck.<br />
Now, it could be devastating.<br />
Sinead believes that effective risk insight and<br />
credit control will be critical in the months<br />
ahead as companies seek to reduce the burden<br />
of late payments.<br />
“In my opinion, the cost of late payments<br />
is one of the biggest threats the UK economy<br />
faces in <strong>2020</strong>,” she says. “As the Government’s<br />
coronavirus support schemes wind down,<br />
the rate of insolvency and bad debt threatens<br />
to increase dramatically, thereby disrupting<br />
supply chains, restricting growth and ultimately<br />
threatening the survival of smaller enterprises.<br />
“The main reason why small businesses fail<br />
is because they don’t have access to cash, and<br />
a key reason for this is that they’re not being<br />
paid on time,” Sinead continues. “It’s essential<br />
that we tackle this issue head on. Businesses<br />
already spend a lot of time and money chasing<br />
late payments. This is stressful enough in itself<br />
without the backdrop of having a large debtor<br />
book outstanding, plus the fact that many<br />
small businesses have had to stop trading<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 44
INTERVIEW<br />
AUTHOR – Sean Feast FCI<strong>CM</strong><br />
“I believe CI<strong>CM</strong> members will<br />
very quickly recognise the<br />
value and support that the<br />
platform can give them in<br />
managing their cashflow.<br />
Satago is proven to help<br />
businesses avoid credit risks<br />
and get paid faster, two things<br />
which will be essential as we<br />
exit lockdown.”<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 45<br />
continues on page 46 >
INTERVIEW<br />
AUTHOR – Sean Feast FCI<strong>CM</strong><br />
during lockdown.” Research by business<br />
groups across the country support these<br />
fears. The majority of small businesses (62<br />
percent) have been subject to late or frozen<br />
payments in the wake of the COVID-19<br />
outbreak, according to the Federation of<br />
Small Businesses latest study of more than<br />
4,000 firms. Sinead believes that risk insight<br />
technology will play a big part in ensuring<br />
small businesses avoid late payments from<br />
unreliable clients.<br />
“Right now, business owners need to be<br />
well informed about the clients they are<br />
doing business with. We have all heard the<br />
phrase ‘Know Your Customer’ but what<br />
does it mean for your business? Put simply,<br />
it means knowing when to walk away from<br />
scenarios which could put your company at<br />
risk. For many business owners, saying no<br />
to a prospective client goes against every<br />
instinct they have. But in fact, having the<br />
wherewithal to reject unfavourable payment<br />
terms from unreliable customers is crucial.<br />
“In order to make that call, it’s imperative<br />
that you have solid data to back up your<br />
decisions. This is where a sophisticated risk<br />
insight tool can help.”<br />
MODERN TOOLS<br />
Modern risk insight tools allow business<br />
owners to view their customers’ credit score<br />
at the touch of a button, giving them the<br />
opportunity to make informed decisions<br />
based on accurate data.<br />
Platforms like Satago, Sinead says, go one<br />
step further, informing business owners<br />
of their customers’ risk band, suggesting<br />
workable payment terms and notifying them<br />
of credit breaches within their sales ledger.<br />
This in-depth customer analysis is invaluable<br />
to SMEs, making it easier for them to make<br />
choices that will ultimately future-proof<br />
their business.<br />
In the past, this level of insight was only<br />
available to those who could afford it, now<br />
it’s accessible to everyone.<br />
“Tools like Satago level the playing field,’’<br />
says Sinead, “by giving all businesses, no<br />
matter how small, access to the information<br />
they need to protect their business from the<br />
threat of late payments and bad debt.”<br />
In addition to utilising risk insight tools,<br />
Sinead encourages all organisations to<br />
automate their credit control, a topic she<br />
discussed on the recent CI<strong>CM</strong> webinar.<br />
“I don’t have to tell CI<strong>CM</strong> Members that<br />
persuading customers to pay their bills<br />
on time can be extremely frustrating,” she<br />
says. “For businesses with a wide customer<br />
base, manually chasing payments is time<br />
consuming. The average business spends<br />
around two days a month sending invoice<br />
reminders – hardly a good use of anyone’s<br />
time. “For companies with a smaller<br />
number of clients, chasing payment can feel<br />
awkward. Some business owners shy away<br />
from sending payment reminders or make<br />
regular concessions for fear of damaging their<br />
customer relationships.<br />
“Automated credit control facilities solve<br />
these issues, allowing you to manage your<br />
invoice chasing process easily. There are<br />
plenty of solutions out there, but the best ones<br />
integrate with your existing mail server, as<br />
Satago does, allowing you to communicate with<br />
your customers in a way that feels personal,<br />
even when automated.”<br />
CLOUD SOFTWARE<br />
Sinead credits cloud software with making it<br />
possible for the large majority of us to continue<br />
doing business as usual, despite the lockdown<br />
restrictions.<br />
“There’s no doubt that the cloud has changed<br />
the way we do business forever,” says Sinead.<br />
“Whether it’s Slack, Microsoft Teams or Sage,<br />
technology is enabling us to collaborate in<br />
new and exciting ways, even when we’re not<br />
physically in the office.”<br />
Over the past few years, one of the fastest<br />
areas of growth has been within the fintech<br />
space. Platforms which integrate with cloud<br />
accounting software, make collaboration<br />
between credit controllers, accountants and<br />
business owners easy. As well as freeing up<br />
time by automating tasks that used to require<br />
hours of manual work.<br />
“The best pieces of software don’t just save<br />
you time,” says Sinead, “they offer data-driven<br />
insight that you can easily share with your<br />
wider company and clients, allowing everyone<br />
to get on the same page and make informed<br />
business decisions.<br />
“For me, this is where technology gets<br />
exciting. By offering companies a level<br />
of financial clarity that was previously<br />
unattainable for many, technology is providing<br />
solutions to the everyday cashflow issues that<br />
cause so many enterprises to fail within their<br />
first few years of trading.”<br />
“If your business does experience cashflow<br />
gaps, my advice is to always talk to your<br />
accountant or financial advisor. They will<br />
steer you away from expensive options (such<br />
as dipping into your overdraft) and towards<br />
responsible financial solutions which can ease<br />
cashflow concerns in the long term. If you’re<br />
interested in learning more about Satago’s fast<br />
and reliable invoice finance facility, you can<br />
always get in touch with our team.”<br />
While it is impossible to predict what the<br />
coming months might bring, Sinead believes<br />
that businesses will continue to think<br />
progressively and use technology to overcome<br />
the obstacles that threaten their growth,<br />
particularly in regards to cashflow.<br />
“If we can make even a small dent in the<br />
enormous £51.5bn burden caused by late<br />
payments, more businesses will have a chance<br />
to survive and thrive in the coming years.”<br />
A reminder that CI<strong>CM</strong> members<br />
are invited to use Satago, free of<br />
charge, for three months. There is<br />
no obligation to continue once<br />
the three months has elapsed.<br />
Visit www.satago.com to register.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 46
CAREERS ADVICE<br />
CAREER ROADMAP<br />
How can you take control of your career<br />
and plan for the future?<br />
AUTHOR – Karen Young<br />
HOW has your outlook on your<br />
career changed over the last<br />
few months? Huge numbers<br />
of accountants have been<br />
affected by remote working,<br />
furlough and constant<br />
change which may have left many questioning<br />
where they stand currently with their career<br />
development and direction.<br />
According to recent research from Hays<br />
surveying 160 credit professionals, half (50<br />
percent) describe their career prospects as<br />
average or poor, and over a third (36 percent)<br />
are unconfident about progressing their career<br />
over the next six months.<br />
In light of this sentiment, I’ve put together a<br />
few tips on how you can control your career in<br />
the current COVID-era and thrive in an everchanging<br />
world of work.<br />
PLOT OUT A CAREER ROADMAP<br />
How much time do you dedicate to thinking<br />
about your long-term career? Despite drive<br />
and ambition, most of us don’t spend enough<br />
time thinking about this even though our<br />
career can make up one of the most important<br />
aspects of our lives.<br />
With half (50 percent) of credit professionals<br />
anticipating moving jobs in the next six<br />
months, plotting out a career roadmap may<br />
help you target your next job and will give your<br />
career move direction and purpose.<br />
Try answering the following questions to<br />
start laying out your roadmap:<br />
• What does your organisation want to<br />
achieve over the next few years?<br />
• How does your role or department support<br />
this?<br />
• What jobs or skills are in demand in your<br />
industry?<br />
• What are the major digital changes<br />
happening in your line of work?<br />
• Who are the leading figures in your industry<br />
and how did they get to where they are<br />
today?<br />
• How has COVID-19 impacted your<br />
profession or industry?<br />
Write down your answers to these questions to<br />
see if they illuminate career ideas or pathways<br />
which you hadn’t considered before.<br />
DEFINE SOME SHORT AND<br />
LONG-TERM GOALS<br />
Your roadmap should give you clarity about the<br />
direction of your overall career, but defining<br />
some short and long-term goals will bring<br />
this roadmap to life and provide you with the<br />
motivation to succeed.<br />
In the next six months: Start by focussing<br />
on where you want to be in six months and<br />
what immediate actions you need to take to get<br />
there. Consider how the COVID-19 crisis may<br />
have impacted the roles and skills that will be<br />
most in-demand in the coming months.<br />
In the next 12 months: Where do you see<br />
yourself in a year? Try to align this to your<br />
current game plan – and again be realistic<br />
about how COVID-19 might have changed your<br />
career prospects.<br />
In the next two to three years: Finally,<br />
project some long-term goals. Keep these<br />
broad enough so they can be reached if you<br />
move jobs during this time.<br />
MAXIMISE YOUR PRODUCTIVE<br />
PERIODS<br />
Working remotely certainly isn’t easy for<br />
everyone, but over the past few months many<br />
have enjoyed the benefits it has to offer.<br />
Perhaps you feel more productive at home<br />
than in the office? Or maybe you’ve improved<br />
your work-life balance?<br />
As offices start to reopen, getting a handle<br />
on your career may involve reevaluating your<br />
split between working remotely and in the<br />
office. Over two thirds (68 percent) of credit<br />
professionals have been working remotely<br />
during lockdown and 52 percent say it has<br />
made them more productive, so if this rings<br />
true for you, consider approaching your<br />
manager to have a conversation about how<br />
you wish to split your time going forward to<br />
harness your productivity. Most (46 percent)<br />
of credit professionals wish to work partly in<br />
the office and partly remotely in the next six<br />
months, so see if this is an option and how it<br />
might suit your working style.<br />
FINALLY, EMBRACE THE CHANGE<br />
Considering all the change in the world of work<br />
at the moment, using this time to take control<br />
of your career can be incredibly reassuring.<br />
However, as the pandemic continues to evolve<br />
there is still much out of our control and a lot<br />
continues to change in our world of work. My<br />
final piece of advice is to accept and embrace<br />
this while taking on board some of the above<br />
points to sharpen your perspective and set<br />
some clear direction for changing times ahead.<br />
Karen Young is the Director of Hays<br />
Accountancy & Finance<br />
Karen Young<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 47
PAYMENT TRENDS<br />
Recovery Room<br />
Some signs of improvement across regions and<br />
sectors are now apparent.<br />
AUTHOR – Rob Howard<br />
COVID-19 has had a significant<br />
impact in the world of credit,<br />
affecting all industries and<br />
businesses, leading to a continual<br />
rise in payment terms over the<br />
past few months. The latest<br />
figures, however, do show some improvements,<br />
with a number of reductions across the board.<br />
Whether it’s the start of the recovery, or just the<br />
calm before the storm though, we’ll have to wait<br />
and see. The average Days Beyond Terms (DBT)<br />
figures reduced by 0.2 days and 0.7 days across<br />
regions and sectors respectively.<br />
SECTOR SPOTLIGHT<br />
Although there haven’t been any dramatic or<br />
drastic changes, it is, at least, good to see the<br />
majority of sectors starting to move back in the<br />
right direction, with 16 of the 22 sectors recorded<br />
reducing payment terms.<br />
The Financial and Insurance sector continues<br />
to perform best, and well ahead of the rest, with a<br />
further reduction of 4.0 days taking its overall DBT<br />
to an impressive 4.7 days. Elsewhere, Business<br />
Admin & Support (-3.3 days), IT and Comms (-2.7<br />
days), Entertainment (-2.5 days) and Real Estate<br />
(-2.4 days) also made steady improvements.<br />
At the other end of the scale, it has been<br />
a tough month for the Business from Home<br />
and Transportation and Storage sectors, with<br />
increases of 5.8 days and 5.4 days respectively.<br />
Despite a reduction of 2.0 days to its payment<br />
terms, Mining and Quarrying remains the worst<br />
performing sector with an overall DBT of 24.3<br />
days.<br />
REGIONAL SPOTLIGHT<br />
The regional standings also provide some<br />
encouragement, with seven of the 11 regions<br />
making reductions to payment terms. The<br />
biggest improvement came in the South West,<br />
with a reduction of 4.2 days taking its overall DBT<br />
to 14.2 days, making it the new best performing<br />
region.<br />
Elsewhere, the improvements were steady if<br />
not spectacular, with Wales (-1.9 days), London<br />
(-1.6 days), East Anglia (-1.6 days), and Yorkshire<br />
and Humberside (-1.2 days) all moving in the<br />
right direction.<br />
Northern Ireland remains the worst<br />
performing region following a further increase<br />
of 3.9 days taking its overall DBT to 21.1 days.<br />
However, further increases for both the East and<br />
West Midlands mean they are not a million miles<br />
behind, with overall DBT’s of 19.2 days and 18.5<br />
days respectively.<br />
Data supplied by Creditsafe Group.<br />
The latest<br />
figures, however,<br />
do show some<br />
improvements,<br />
with a number of<br />
reductions across<br />
the board. Whether<br />
it’s the start of the<br />
recovery, or just<br />
the calm before the<br />
storm.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 48
PAYMENT TRENDS<br />
Data supplied by the Creditsafe Group<br />
Top Five Prompter Payers<br />
Region Jul 20 Change from Jun 20<br />
South West 14.2 -4.2<br />
Wales 15 -1.9<br />
East Anglia 15.5 -1.6<br />
London 15.6 -1.6<br />
Yorkshire and Humberside 15.8 -1.2<br />
Bottom Five Poorest Payers<br />
Region Jul 20 Change from Jun 20<br />
Northern Ireland 21.1 3.9<br />
East Midlands 19.2 0.5<br />
West Midlands 18.5 1.9<br />
Scotland 17.4 2.8<br />
North West 17.1 -1.2<br />
Getting Worse<br />
Business from Home 5.8<br />
Transportation and Storage 5.4<br />
Agriculture, Forestry and Fishing 2.5<br />
Health & Social 1.6<br />
Dormant 0.6<br />
Getting Better<br />
Financial and Insurance -4<br />
Business Admin & Support -3.3<br />
IT and Comms -2.7<br />
Entertainment -2.5<br />
Real Estate -2.4<br />
Construction -2.3<br />
Manufacturing -2.2<br />
Mining and Quarrying -2<br />
Energy Supply -1.9<br />
Top Five Prompter Payers<br />
Sector Feb 20 Change from Jan 20<br />
Financial and Insurance 4.7 -4<br />
Public Administration 8.7 -1.8<br />
Health & Social 11.3 1.6<br />
Wholesale and retail trade 12.7 -1.9<br />
Education 13.6 -0.9<br />
Bottom Five Poorest Payers<br />
Sector Feb 20 Change from Jan 20<br />
Mining and Quarrying 24.3 -2<br />
Entertainment 22.7 -2.5<br />
Transportation and Storage 22.1 5.4<br />
Business from Home 21.6 5.8<br />
Energy Supply 21.6 -1.9<br />
Wholesale and retail trade -1.9<br />
Public Administration -1.8<br />
Water and Waste -1.4<br />
International Bodies -1.3<br />
Other Service -1.1<br />
Education -0.9<br />
Professional and Scientific -0.1<br />
SCOTLAND<br />
2.8 DBT<br />
Region<br />
Getting Better – Getting Worse<br />
-4.2<br />
-1.9<br />
-1.6<br />
-1.6<br />
-1.2<br />
-1.2<br />
-0.5<br />
3.9<br />
2.8<br />
1.9<br />
0.5<br />
South West<br />
Wales<br />
East Anglia<br />
London<br />
Yorkshire and Humberside<br />
North West<br />
South East<br />
Northern Ireland<br />
Scotland<br />
West Midlands<br />
East Midlands<br />
NORTHERN<br />
IRELAND<br />
3.9 DBT<br />
SOUTH<br />
WEST<br />
-4.2 DBT<br />
WALES<br />
-1.9 DBT<br />
NORTH<br />
WEST<br />
-1.2 DBT<br />
WEST<br />
MIDLANDS<br />
1.9 DBT<br />
YORKSHIRE &<br />
HUMBERSIDE<br />
-1.2 DBT<br />
EAST<br />
MIDLANDS<br />
0.5 DBT<br />
LONDON<br />
-1.6 DBT<br />
SOUTH<br />
EAST<br />
-0.5 DBT<br />
EAST<br />
ANGLIA<br />
-1.6 DBT<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 49
CI<strong>CM</strong> MEMBER<br />
EXCLUSIVE<br />
Your CI<strong>CM</strong> lapel badge<br />
demonstrates your commitment to<br />
professionalism and best practice<br />
TAKE PRIDE IN<br />
WEARING YOUR BADGE<br />
If you haven’t received your badge<br />
contact: cicmmembership@cicm.com<br />
MANAGING THE NEW<br />
CREDIT FUTURE<br />
Prepare and act now, for the<br />
Credit world of tomorrow.<br />
As the world continues to react to constant change, our<br />
credit profession needs to prepare for the new credit future.<br />
Debt management<br />
• Adjust collections and recovery strategies to fit the changing financial environment<br />
• Use KYC ‘know your customer’ to understand the customers in true financial difficulty<br />
• Focus skilled staff on long term management of aging debt with a propensity for resolution<br />
• Remove ‘uneconomical to collect’ debt from ledger via third party action, sale or write off<br />
Employees<br />
• Upskill staff for a new credit future through training and qualification programmes<br />
• Review and bolster support mechanisms that cater for the wellbeing of employees<br />
• Consult and trial agile working arrangements with touch points to check feasibility<br />
Cash resilience<br />
• Firm up honest and realistic cash forecasting projections and review them frequently<br />
• Tighten processes for quick & efficient cash collection, allocation and recovery referral<br />
• Calculate provision for bad and doubtful debt & review validity and value of securities<br />
• Agree new risk assessment protocols for ledger-wide vetting of new and existing customers<br />
• Review and strengthen supply chain, renegotiating contract terms in the new climate.<br />
Future proof strategies<br />
• Fine-tune the exit strategy, showing a roadmap of short, mid and long-term objectives<br />
• Align Credit Policy, processes, KPIs and contingencies to the organisation’s new risk strategy<br />
• Check processes are in place to allow for new and future flexible ways of operating<br />
• Secure debt and ledger management software to automate manual tasks<br />
Communication<br />
• Maintain Senior Management visibility with short, frequent reports linked to overall objectives<br />
• Reaffirm supply chain relationships with bespoke contact that builds plans for future trading<br />
• Hold staff e-meetings briefly and often to focus WFH and office-based staff in a common goal<br />
• Create cross functional work plans with re-emerging departments, to leverage help<br />
01780 722900 | info@cicm.com<br />
Access help from CI<strong>CM</strong><br />
Follow the CI<strong>CM</strong> Managing the New Credit<br />
Future Forum on LinkedIn.<br />
Access our Member Advice Service<br />
for support, answers and advice.<br />
Visit our Managing the New Credit Future<br />
webpage for more resources<br />
We continue to develop resources, advice and tools to help you prepare for<br />
tomorrow’s Credit, today. Stay in touch with us and be part of our community.<br />
CI<strong>CM</strong> is your professional body: use it. We are stronger in numbers.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 50
NEW AND UPGRADED MEMBERS<br />
Do you know someone who would benefit from CI<strong>CM</strong> membership? Or have<br />
you considered applying to upgrade your membership? See our website<br />
www.cicm.com/membership-types for more details, or call us on 01780 722903<br />
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Member<br />
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Marco Dellavalle<br />
Dale Fawcett<br />
Raffeina Feeney<br />
Scott Foord<br />
Gareth Guyers<br />
Neil Johnson<br />
Manjula Krishnasamy<br />
Alice Meehan<br />
Gina Milne<br />
Fleur Myatt<br />
William Oades<br />
Nushina Pillalamarri<br />
Zacki Rahman<br />
Rhys Scargill<br />
Carly Smith<br />
Laura Squibb<br />
Martin Stafford<br />
Ola Stannard<br />
Alison Starkey<br />
James Sykes<br />
Lina Tavares<br />
Nina Tedam<br />
Diantha Veerasingam<br />
Chinedu Aghanenu<br />
Emma Bassett<br />
Tamara Bedington<br />
Temilade Bodede<br />
Hannah Bunce<br />
Sonja Burghardt<br />
Gemma Davies<br />
Maria Dinca<br />
Faye Harper<br />
Joel Isherwood<br />
Altaf Karmali<br />
Davina Knott<br />
Kwasi Koram<br />
Arvind Kumar<br />
Thomas Mabbott<br />
Barry MacDonald<br />
Withus Masala<br />
Dale McInroy<br />
Helen McInroy<br />
Lisa McQueen<br />
Louise Moss<br />
Jordan O'Donovan<br />
Waqar Raza<br />
Sharon Rumbal<br />
Amit Sohal<br />
Tom Sparham<br />
Ross Spence<br />
Claire Thompson<br />
Linda Trotter<br />
Nicola Wesson<br />
Masahiro Yashima<br />
Affiliate<br />
Thomas Antrobus<br />
Michael Barrett<br />
Simon Darby<br />
Joanne Dempster<br />
Peter Hodgson<br />
Adam Morgan<br />
Isabelle Morley<br />
Karen Murray<br />
Edyta Olszewska<br />
Mohamed Salah<br />
Lisa-Marie Clay<br />
Maddison Dickens<br />
Chelsea Dunbar<br />
Kimberley Halligan<br />
Vicky Hotson<br />
Elisha Houston<br />
Bethanie Lowe<br />
Jason Marshall<br />
Sinead McHale<br />
Tracy Mileham<br />
Will Pickering<br />
Angela Sammon<br />
Joanne Sawkins<br />
SasikumarThottupurath<br />
Congratulations to our current members who have upgraded their membership<br />
Upgraded member<br />
Ricardo Harewood ACI<strong>CM</strong><br />
WE WANT YOUR BRANCH NEWS!<br />
Get in touch with the CI<strong>CM</strong> by emailing branches@cicm.com<br />
with your branch news and event reports. Please only send up to 400 words<br />
and any images need to be high resolution to be printable, so 1MB plus.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 51
OBITUARY<br />
Paul Mudge –<br />
a life fully lived<br />
Some happy memories of our past<br />
Chairman and President compiled<br />
by Sean Feast FCI<strong>CM</strong>.<br />
TED Brown remembers Paul as<br />
being one of life’s nice guys:<br />
“I joined the Institute at the<br />
same time as Paul in 1973 and<br />
he succeeded Bill Adams as<br />
our National Chairman in the<br />
1980s. When Sir Roger Cork died unexpectedly<br />
in 2002, Paul took over as President, and<br />
actively recruited Master Robert Turner to be<br />
his successor.<br />
“Paul had been the credit manager for<br />
Currys, and loved the family ethos of the<br />
business, but when it was taken over by<br />
Dixons he left and joined the Registry Trust. I<br />
first met Paul in the early 1980s when he came<br />
to our Branch meeting to speak and I was<br />
immediately struck by his height. Paul was<br />
an incredibly tall man but elegant with it. He<br />
stood out in many ways not just physically but<br />
through his charm and stature.<br />
“He was a great help and support to our<br />
members through some difficult times; the<br />
Institute then was a very different place<br />
than it is today, and while we had an annual<br />
conference in Park Lane Paul was always<br />
happy to be kept out of the limelight – he<br />
was very modest like that. His ability to run<br />
a meeting, however, was legendary, and as<br />
acting President he once succeeded in starting<br />
and ending an Annual General Meeting in 90<br />
seconds!<br />
“Along with Roger and Terry Robinson, the<br />
three were like the Musketeers, ably abetted<br />
by Barbara Freedman. Roger famously had<br />
a Routemaster bus and once drove from his<br />
home in Chesham all the way to the Water Mill<br />
with Paul and me in the back.<br />
“Paul was a great family man and his wife<br />
Sally was always a terrific support. He was<br />
also passionate about sport – especially rugby<br />
as an Exeter Chiefs fan – and living so close to<br />
Twickenham which was like his Mecca.”<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 52
OBITUARY<br />
“What I particularly<br />
remember about<br />
Paul was that he was<br />
well travelled and<br />
knowledgeable, and<br />
that ‘wordly-ness’ came<br />
across but not in an<br />
arrogant way. He was<br />
also something of an<br />
aficionado about tea;<br />
he simply loved it and<br />
always seemed to have<br />
a huge variety of teas<br />
available whenever we<br />
met.’’<br />
Barbara Freedman has similar memories<br />
of the bus and Paul’s charm:<br />
“I remember we all went down to Sandown<br />
to the races on the bus – it was such a<br />
happy time. I first came across Paul in the<br />
early 1970s, and we served together on<br />
both the Conference Committee and the<br />
Membership Committee.<br />
“What I particularly remember about<br />
him was that he had style. He was, as Ted<br />
says, very tall and good looking, and a good<br />
ambassador for the Institute. He looked the<br />
part. He was level-headed and charming,<br />
but not a ‘waffler’; if he was chairing a<br />
meeting, he would be very concise and get<br />
to the point quickly.<br />
“What I particularly remember about<br />
Paul was that he was well travelled and<br />
knowledgeable, and that ‘wordly-ness’ came<br />
across but not in an arrogant way. He was<br />
also something of an aficionado about<br />
tea; he simply loved it and always seemed<br />
to have a huge variety of teas available<br />
whenever we met.<br />
“When Roger became Lord Mayor he<br />
made Cancer Research a chosen charity,<br />
and with Roger and Paul we would all attend<br />
various fundraising functions. Paul and<br />
Sally were a delightful and devoted couple.”<br />
Glen Bullivant recalls Paul as being a<br />
consummate professional and a true<br />
gentleman:<br />
“It cannot be all that often that those two<br />
traits go together, being mentioned in the<br />
same breath as it were, but with Paul they<br />
blended naturally like strawberries and<br />
cream.<br />
“Many will be aware of the role he played<br />
at Registry Trust turning something on the<br />
brink of being moribund to a vital tool in the<br />
toolbox of consumer credit professionals<br />
throughout England and Wales. That<br />
could not have been achieved without<br />
his determination and professionalism –<br />
getting County Courts on side and happy<br />
to participate was no mean feat and akin<br />
to navigating a supertanker up the Helford<br />
River!<br />
“It is as a gentleman, however, that I will<br />
remember him from our work together<br />
in the I<strong>CM</strong> as it then was. As a bit of<br />
an outspoken youngster, he guided me<br />
through the nuances of committee work,<br />
both on Council and in the various working<br />
committees.<br />
“Our backgrounds and working lives<br />
were very different – his was the B2C world<br />
and mine was B2B – but he recognised a<br />
passion for the I<strong>CM</strong> which he shared and<br />
encouraged. He went out of his way to advise<br />
and to support and though he moved in<br />
the lofty circles of both President and Chair,<br />
he always had time for other people. Though<br />
our paths did not often cross after his<br />
“Paul was a great family man<br />
and his wife Sally was always<br />
a terrific support. He was<br />
also passionate about sport –<br />
especially rugby as an Exeter<br />
Chiefs fan – and living so close<br />
to Twickenham which was like<br />
his Mecca.”<br />
retirement, we did meet from time to time<br />
at functions, and I was touched more than<br />
he ever knew by his kind comments about<br />
my column when I was Chair. He need not<br />
have done that, but he did, and more than<br />
once. That is what I call a gentleman.”<br />
Brenda Linger is another who remembers<br />
Paul’s leadership qualities:<br />
“Paul was a clear, enthusiastic leader who<br />
guided the council well, and had a respect<br />
for the opinions of others. Even though<br />
I know I could be a pain in the neck he<br />
treated me with respect.<br />
“There was one council meeting where I<br />
quite clearly disagreed with him, however<br />
he contacted me afterwards to make sure<br />
that I was ok with the result of the vote<br />
(what the problem had been is lost in the<br />
sands of time).<br />
“I have a couple more clear memories<br />
of Paul: the first when he was chairman of<br />
the institute and I was fairly newly-elected<br />
to council and known for asking too many<br />
questions – there was one particular council<br />
meeting when the majority of attendees<br />
were on various schedules and when it came<br />
to the AOB he asked the question ‘there is no<br />
other business is there Brenda’?<br />
“Paul presented me with my Meritorious<br />
Service Award at the Annual Dinner at<br />
the Mansion House in London, and he<br />
introduced me as the Spice Girl of the CI<strong>CM</strong><br />
– a great compliment!”<br />
“Many will be aware of the role<br />
he played at Registry Trust<br />
turning something on the brink<br />
of being moribund to a vital<br />
tool in the toolbox of consumer<br />
credit professionals throughout<br />
England and Wales. That<br />
could not have been achieved<br />
without his determination and<br />
professionalism.’’<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 53
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Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 54
HR MATTERS<br />
LESSONS LEARNED<br />
A tale of workloads, contracts and discrimination.<br />
AUTHOR – Gareth Edwards<br />
IN a recent case – Aylott v BPP University<br />
– the Employment Tribunal found that<br />
a failure to address workload concerns<br />
may amount to breach of contract and<br />
discrimination claims.<br />
The tribunal held that a sequence<br />
of failings by the employer relating to workload<br />
and mental health, when viewed cumulatively,<br />
amounted to a fundamental breach of<br />
the employee’s employment contract and<br />
discrimination arising from disability.<br />
THE CASE<br />
Mrs Aylott was employed as a lecturer by BPP<br />
University from 2013 until her resignation in<br />
2019. During the course of her employment,<br />
Aylott applied for a senior role and as part of<br />
a health declaration informed her employer<br />
that she suffered from anxiety, depression and<br />
chronic back pain. She also suffered from Autistic<br />
Spectrum Disorder (ASM) which remained<br />
undiagnosed until after her resignation.<br />
The University was aware that Aylott was<br />
experiencing some significant challenges in<br />
her personal life. Her husband passed away<br />
suddenly and her teenage son was diagnosed<br />
with myalgic encephalomyelitis. However,<br />
there was a ‘long hours’ culture amongst the<br />
management team and Aylott worked in excess<br />
of 60 hours per week, including weekends and<br />
evenings. In early 2018, she advised her line<br />
manager that she was experiencing symptoms<br />
of anxiety and was taking antidepressants. She<br />
cancelled holiday to accommodate the leave<br />
of a colleague and by <strong>September</strong> 2018 she was<br />
described as ‘manic’ and ‘frazzled’.<br />
At this time, a complaint was made by<br />
another department that Aylott was pushing<br />
back on requests made of her, citing the<br />
pressures of her workload, and that the tone<br />
of some of her responses had become abrupt.<br />
She was distressed by the complaint and its<br />
handling. She confided in her line manager that<br />
she was not coping and was self-medicating with<br />
alcohol. She provided a medical certificate to<br />
work reduced hours and although it was widely<br />
acknowledged by her managers that she was<br />
struggling and that her health was suffering,<br />
no steps were taken to refer her to occupational<br />
health despite her request.<br />
As a result of low mood, Aylott was signed off<br />
work by her GP in late 2018. Following the expiry<br />
of her entitlement to 15 days contractual sick<br />
pay, the University did not exercise its discretion<br />
to provide any further sick pay, even though it<br />
has provided discretionary sick pay to other<br />
employees in the past. She raised a grievance in<br />
relation to workload and treatment. She claimed<br />
that she was being treated less favourably<br />
because of her mental health conditions which<br />
amounted to a disability. At the grievance<br />
meeting, there was no real attempt to address<br />
her concerns and she was offered an exit under<br />
a settlement agreement.<br />
It also came to Aylott's attention that a<br />
colleague had referred to her as ‘mad as a box of<br />
frogs, but a good worker’.<br />
She resigned and brought a claim for<br />
constructive unfair dismissal, unfavourable<br />
treatment arising from disability, direct and<br />
indirect disability discrimination, harassment<br />
relating to her disability and failure to make<br />
reasonable adjustments.<br />
THE DECISION<br />
Dismissing the latter claims, the tribunal found<br />
that Aylott had been constructively unfairly<br />
dismissed on the basis that the University’s<br />
conduct had undermined trust and confidence.<br />
It was also held that an occupational health<br />
referral for Aylott was not arranged in a timely<br />
manner, and there had been a rush to secure<br />
her departure from the University as a result<br />
of stigma arising from her mental health.<br />
As this stigma arose from her disability, the<br />
unfavourable treatment she received in being<br />
offered a settlement agreement, rather than<br />
a resolution to her grievances, and the lack of<br />
occupational health support was discriminatory,<br />
and she was entitled to compensation for<br />
financial loss and injury to feelings.<br />
BEST PRACTICE<br />
Mental health issues in the workplace are<br />
increasingly being recognised. Demanding<br />
workloads over sustained periods can cause or<br />
exacerbate mental health challenges. In order<br />
to maintain an effective workforce and promote<br />
the wellbeing of staff, it is important that HR<br />
professionals and managers understand their<br />
duties and fulfil their legal obligations in relation<br />
to the mental welfare of their employees.<br />
Employers should be vigilant for signs that<br />
may indicate a potential mental health issue. They<br />
should engage with employees at an early stage<br />
to discuss whether any reasonable adjustments<br />
can be made to accommodate their needs.<br />
Where appropriate, various options should be<br />
explored to enable the employee to continue in<br />
their role and a timely referral to occupational<br />
health should be made to benefit from medical<br />
advice. Managers should receive training to help<br />
them identify and actively support staff with<br />
mental health conditions to reduce stigma and<br />
help avoid costly discrimination claims.<br />
Gareth Edwards is a partner in the employment<br />
team at VWV. gedwards@vwv.co.uk<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 55
TAKE CONTROL OF<br />
YOUR CREDIT CAREER<br />
CREDIT MANAGER<br />
Warrington, up to £53,000 + bonus + benefits<br />
United Utilities Water is responsible for water and wastewater<br />
services in the North West of England. A purpose-driven<br />
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Reporting to the Head of Income, you will expertly lead the<br />
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Diploma in Credit Management. Your energy will drive a customer<br />
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service that surpasses customer expectations and business<br />
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will help create a high performing team through establishing<br />
team identity, purpose, ambition, and aligned objectives which<br />
contribute to wider company goals.<br />
CI<strong>CM</strong> qualified, you will have a proven track record of leading,<br />
developing and delivering cash collection performance<br />
improvements. Experience of working in a contact centre<br />
and operational environment with responsibility for leading<br />
large numbers of people will enable you to thrive in this role,<br />
providing high levels of customer service, quality and operational<br />
effectiveness. You will also have strong financial awareness with<br />
understanding of income, cash profiling and bad debt provisions<br />
and a track record of managing vulnerable customer schemes.<br />
This is a great career opportunity for an expert credit professional<br />
with excellent communication skills to motivate and influence<br />
people at all levels, leading from the front to successfully exceed<br />
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Ref: 3836849<br />
Contact Karen Young on 07834 260029<br />
or email karen.young@hays.com<br />
To discover more opportunities available for credit<br />
professionals, please visit us online or contact Kabir Gulabkhan,<br />
Hays Credit Management UK Lead on 020 3465 0020.<br />
hays.co.uk/creditcontrol<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 56
INSPIRE ME IN THE<br />
NEW ERA OF WORK<br />
YOUR RESOURCE HUB<br />
FOR REACHING YOUR<br />
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Read our latest guides and articles<br />
Tips to help you prepare successfully<br />
To find out more visit our Embrace the New Era Hub at<br />
hays.co.uk/embrace-the-new-era<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 57
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WHAT'S ON<br />
We are asking all members to invite a colleague to a CI<strong>CM</strong> membership event,<br />
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Studying at a<br />
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From interactive virtual classrooms to supporting texts,<br />
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Contact CI<strong>CM</strong> for more information on any of these services,<br />
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Giving you the tools to continue<br />
working through this crisis.<br />
MANAGING THE NEW<br />
CREDIT FUTURE<br />
As the world continues to react<br />
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For more information contact:<br />
info@cicm.com or 01780 722900<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 59
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
COLLECTIONS<br />
INTERNATIONAL COLLECTIONS<br />
COLLECTIONS LEGAL<br />
Controlaccount Plc<br />
Address: Compass House, Waterside, Hanbury Road,<br />
Bromsgrove, Worcestershire B60 4FD<br />
T: 01527 549 522<br />
E: sales@controlaccount.com<br />
W: www.controlaccount.com<br />
Controlaccount Plc provides an efficient, effective and ethical<br />
commercial debt recovery service focused on improving business<br />
cash flow whilst preserving customer relationships and established<br />
reputations. Working with leading brand names in the UK and<br />
internationally, we deliver a bespoke service to our clients. We offer<br />
a no collect, no fee service without any contractual ties in. Where<br />
applicable, we can utilise the Late Payment of Commercial Debts<br />
Act (2013) to help you redress the cost of collection. Our clients<br />
also benefit from our in-house international trace and legal counsel<br />
departments and have complete transparency and up to the minute<br />
information on any accounts placed with us for recovery through our<br />
online debt management system, ClientWeb.<br />
INTERNATIONAL COLLECTIONS<br />
Atradius Collections Ltd<br />
3 Harbour Drive,<br />
Capital Waterside, Cardiff, CF10 4WZ<br />
Phone: +44 (0)29 20824397<br />
Mobile: +44 (0)7767 865821<br />
E-mail:yvette.gray@atradius.com<br />
Website: atradiuscollections.com<br />
Atradius Collections Ltd is an established specialist in business<br />
to business collections. As the collections division of the Atradius<br />
Crédito y Caución, we have a strong position sharing history,<br />
knowledge and reputation.<br />
Annually handling more than 110,000 cases and recovering over<br />
a billion EUROs in collections at any one time, we deliver when<br />
it comes to collecting outstanding debts. With over 90 years’<br />
experience, we have an in-depth understanding of the importance of<br />
maintaining customer relationships whilst efficiently and effectively<br />
collecting monies owed.<br />
The individual nature of our clients’ customer relationships is<br />
reflected in the customer focus we provide, structuring our service<br />
to meet your specific needs. We work closely with clients to provide<br />
them with a collection strategy that echoes their business character,<br />
trading patterns and budget.<br />
For further information contact Yvette Gray Country Director, UK<br />
and Ireland.<br />
Premium Collections Limited<br />
3 Caidan House, Canal Road<br />
Timperley, Cheshire. WA14 1TD<br />
T: +44 (0)161 962 4695<br />
E: paul.daine@premiumcollections.co.uk<br />
W: www.premiumcollections.co.uk<br />
For all your credit management requirements Premium Collections<br />
has the solution to suit you. Operating on a national and international<br />
basis we can tailor a package of products and services to meet your<br />
requirements.<br />
Services include B2B collections, B2C collections, international<br />
collections, absconder tracing, asset repossessions, status reporting<br />
and litigation support.<br />
Managed from our offices in Manchester, Harrogate and Dublin our<br />
network of 55 partners cover the World.<br />
Contact Paul Daine FCI<strong>CM</strong> on +44 (0)161 962 4695 or<br />
paul.daine@premiumcollections.co.uk<br />
www.premiumcollections.co.uk<br />
Baker Ing International Limited<br />
Office 7, 35-37 Ludgate Hill, London. EC4M 7JN<br />
Contact: Lisa Baker-Reynolds<br />
Email: lisa@bakering.global<br />
Website: https://www.bakering.global/contact/<br />
Tel: 07717 020659<br />
Baker Ing International is a dedicated team of Credit industry<br />
experience that, combined, covers time served in most industries.<br />
The team is wholly comprised of working Credit Manager’s across<br />
the Globe with a minimum threshold of ten years working experience<br />
within Credit Management. The team offers a comprehensive<br />
service to clients - International Debt Recovery, Credit Control, Legal<br />
Services & more<br />
Our mission is to help companies improve the cost and efficiency<br />
of their Credit Management processes in order to limit the risks<br />
associated with extending credit and trading around the globe.<br />
How can we help you - call Lisa Baker Reynolds on<br />
+44(0)7717 020659 or email lisa@bakering.global<br />
Sterling Debt Recovery<br />
E: info@sterlingdebtrecovery.com<br />
T: 0207 1005978<br />
W: www.sterlingdebtrecovery.com<br />
Sterling specialises in international business debt collection<br />
to get outstanding invoices paid quickly and cost effectively.<br />
Our experienced, enthusiastic collectors achieve results whilst<br />
maintaining a professional image.<br />
We work on a commission only basis with no up-front fees and no<br />
hidden costs. Each client is allocated a named collector for personal<br />
service and regular updates. We collect the majority of debt without<br />
litigation, with our on-site lawyer supporting us where appropriate.<br />
Where local expertise is required our global network are available<br />
to assist.<br />
COLLECTIONS LEGAL<br />
Keebles<br />
Capitol House, Russell Street, Leeds LS1 5SP<br />
T: 0113 399 3482<br />
E: charise.marsden@keebles.com<br />
W: www.keebles.com<br />
Keebles debt recovery team was named “Legal Team of the Year”<br />
at the 2019 CI<strong>CM</strong> British Credit Awards.<br />
According to our clients “Keebles stand head and shoulders above<br />
others in the industry. A team that understands their client’s<br />
business and know exactly how to speedily maximise recovery.<br />
Professional, can do attitude runs through the team which is not<br />
seen in many other practices.”<br />
We offer a service with no hidden costs, giving you certainty and<br />
peace of mind.<br />
• ‘No recovery, no fee’ for pre-legal work.<br />
• Fixed fees for issuing court proceedings and pursuing claims to<br />
judgment and enforcement.<br />
• Success rate in excess of 80%.<br />
• 24 hour turnaround on instructions.<br />
• Real-time online access to your cases to review progress.<br />
Lovetts Solicitors<br />
Lovetts, Bramley House, The Guildway,<br />
Old Portsmouth Road,<br />
Guildford, Surrey, GU3 1LR<br />
T: 01483 347001<br />
E: info@lovetts.co.uk<br />
W: www.lovetts.co.uk<br />
With more than 25yrs experience in UK & international business debt<br />
collection and recovery, Lovetts Solicitors collects £40m+ every year<br />
on behalf of our clients. Services include:<br />
• Letters Before Action (LBA) from £1.50 + VAT (successful in 86%<br />
of cases)<br />
• Advice and dispute resolution<br />
• Legal proceedings and enforcement<br />
• 24/7 access to your cases via our in-house software solution,<br />
CaseManager<br />
Don’t just take our word for it, here’s some recent customer feedback:<br />
“All our service expectations have been exceeded. The online<br />
system is particularly useful and extremely easy to use. Lovetts has a<br />
recognisable brand that generates successful results.”<br />
CONSULTANCY<br />
Sanders Consulting Associates Ltd<br />
T: +44(0)1525 720226<br />
E: enquiries@chrissandersconsulting.com<br />
W: www.chrissandersconsulting.com<br />
Sanders Consulting is an independent niche consulting firm<br />
specialising in leadership and performance improvement in all aspects<br />
of the order to cash process. Chris Sanders FCI<strong>CM</strong>, the principal, is<br />
well known in the industry with a wealth of experience in operational<br />
credit management, billing, change and business process improvement.<br />
A sought after speaker with cross industry international experience in<br />
the business-to-business and business-to-consumer markets, his<br />
innovative and enthusiastic approach delivers pragmatic people and<br />
process lead solutions and significant working capital improvements to<br />
clients. Sanders Consulting are proud to manage CI<strong>CM</strong>Q on behalf of<br />
and under the supervision of the CI<strong>CM</strong>.<br />
COURT ENFORCEMENT SERVICES<br />
Court Enforcement Services<br />
Wayne Whitford – Director<br />
M: +44 (0)7834 748 183 T : +44 (0)1992 663 399<br />
E : wayne@courtenforcementservices.co.uk<br />
W: www.courtenforcementservices.co.uk<br />
High Court Enforcement that will Empower You!<br />
We help law firms and in-house debt recovery and legal teams to<br />
enforce CCJs by transferring them up to the High Court. Setting us<br />
apart in the industry, our unique and Award Winning Field Agent App<br />
helps to provide information in real time and transparency, empowering<br />
our clients when they work with us.<br />
• Free Transfer up process of CCJ’s to High Court<br />
• Exceptional Recovery Rates<br />
• Individual Client Attention and Tailored Solutions<br />
• Real Time Client Access to Cases<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 60
FOR ADVERTISING INFORMATION OPTIONS AND PRICING CONTACT<br />
russell@cabbells.uk 0203 603 7937<br />
CREDIT INFORMATION<br />
CREDIT INFORMATION<br />
CREDIT MANAGEMENT SOFTWARE<br />
CoCredo<br />
Missenden Abbey, Great Missenden, Bucks, HP16 0BD<br />
T: 01494 790600<br />
E: customerservice@cocredo.com<br />
W: www.cocredo.co.uk<br />
We provide business information on over 256 million companies across<br />
221 countries. Our information is updated over 500,000 times per<br />
day and we have some excellent tracking mechanisms which provide<br />
proactive daily monitoring of changes in the global information on record.<br />
We can offer a wealth of additional services including XML Integration,<br />
D.N.A portfolio management, CoData marketing information, Companies<br />
House documents, Consumer and Director Searches. We pride ourselves<br />
in delivering award winning customer service, offering you unrivalled<br />
support and analysis to protect your business.<br />
Graydon UK<br />
66 College Road, 2nd Floor, Hygeia Building, Harrow,<br />
Middlesex, HA1 1BE<br />
T: +44 (0)208 515 1400<br />
E: customerservices@graydon.co.uk<br />
W: www.graydon.co.uk<br />
With 130+ years of experience, Graydon is a leading provider of<br />
business information, analytics, insights and solutions. Graydon<br />
helps its customers to make fast, accurate decisions, enabling them<br />
to minimise risk and identify fraud as well as optimise opportunities<br />
with their commercial relationships. Graydon uses 130+ international<br />
databases and the information of 90+ million companies. Graydon<br />
has offices in London, Cardiff, Amsterdam and Antwerp. Since 2016,<br />
Graydon has been part of Atradius, one of the world’s largest credit<br />
insurance companies.<br />
Tinubu Square UK<br />
Holland House, 4 Bury Street,<br />
London EC3A 5AW<br />
T: +44 (0)207 469 2577 /<br />
E: uksales@tinubu.com<br />
W: www.tinubu.com<br />
Founded in 2000, Tinubu Square is a software vendor, enabler of the<br />
Credit Insurance, Surety and Trade Finance digital transformation.<br />
Tinubu Square enables organizations across the world to significantly<br />
reduce their exposure to risk and their financial, operational and technical<br />
costs with best-in-class technology solutions and services. Tinubu<br />
Square provides SaaS solutions and services to different businesses<br />
including credit insurers, receivables financing organizations and<br />
multinational corporations.<br />
Tinubu Square has built an ecosystem of customers in over 20 countries<br />
worldwide and has a global presence with offices in Paris, London, New<br />
York, Montreal and Singapore.<br />
CREDIT INFORMATION<br />
THE ONLY AML RESOURCE YOU NEED<br />
SmartSearch<br />
SmartSearch, Harman House,<br />
Station Road,Guiseley, Leeds, LS20 8BX<br />
T: +44 (0)113 238 7660<br />
E: info@smartsearchuk.com W: www.smartsearchuk.com<br />
KYC, AML and CDD all rely on a combination of deep data with broad<br />
coverage, highly automated flexible technology with an innovative<br />
and intuitive customer interface. Key features include automatic<br />
Worldwide Sanction & PEP checking, Daily Monitoring, Automated<br />
Enhanced Due Diligence and pro-active customer management.<br />
Choose SmartSearch as your benchmark.<br />
CEDAR<br />
ROSE<br />
R<br />
Cedar Rose<br />
3, Georgiou Katsonotou Street,3036, Limassol, Cyprus<br />
E: info@cedar-rose.com T: +357 25346630<br />
W: www.cedar-rose.com<br />
Cedar Rose has been globally recognised as the expert for<br />
credit reports, due diligence and data for the Middle East<br />
and North African countries since 1997. We now cover over<br />
170 countries with the same high quality, expert analysis<br />
and attention to detail we are well-known and trusted for.<br />
Making best use of artificial intelligence and technology, Cedar<br />
Rose has won several awards including Credit Excellence<br />
& European Business Awards. Our website is a one-stopshop<br />
for your business intelligence solutions. We are the<br />
ultimate source; with competitive prices and friendly customer<br />
service - whether you need one or one thousand reports.<br />
Company Watch<br />
Centurion House, 37 Jewry Street,<br />
LONDON. EC3N 2ER<br />
T: +44 (0)20 7043 3300<br />
E: info@companywatch.net<br />
W: www.companywatch.net<br />
Organisations around the world rely on Company Watch’s industryleading<br />
financial analytics to drive their credit risk processes. Our<br />
financial risk modelling and ability to map medium to long-term risk as<br />
well as short-term credit risk set us apart from other credit reference<br />
agencies.<br />
Quality and rigour run through everything we do, from our unique<br />
method of assessing corporate financial health via our H-Score®, to<br />
developing analytics on our customers’ in-house data.<br />
With the H-Score® predicting almost 90 percent of corporate<br />
insolvencies in advance, it is the risk management tool of choice,<br />
providing actionable intelligence in an uncertain world.<br />
CREDIT MANAGEMENT SOFTWARE<br />
ONGUARD<br />
T: +31 (0)88 256 66 66<br />
E: ruurd.bakker@onguard.com<br />
W: www.onguard.com<br />
Onguard is specialist in credit management software and market<br />
leader in innovative solutions for order to cash. Our integrated<br />
platform ensures an optimal connection of all processes in the order<br />
to cash chain and allows sharing of critical data.<br />
Intelligent tools that can seamlessly be interconnected and offer<br />
overview and control of the payment process, as well as contribute to<br />
a sustainable customer relationship.<br />
In more than 50 countries the Onguard platform is successfully used<br />
for successful credit management.<br />
Credica Ltd<br />
Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT<br />
T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk<br />
Our highly configurable and extremely cost effective Collections and<br />
Query Management System has been designed with 3 goals in mind:<br />
• To improve your cashflow • To reduce your cost to collect<br />
• To provide meaningful analysis of your business<br />
Evolving over 15 years and driven by the input of 1000s of Credit<br />
Professionals across the UK and Europe, our system is successfully<br />
providing significant and measurable benefits for our diverse portfolio<br />
of clients.<br />
We would love to hear from you if you feel you would benefit from our<br />
‘no nonsense’ and human approach to computer software.<br />
Data Interconnect Ltd<br />
Units 45-50<br />
Shrivenham Hundred Business Park<br />
Majors Road, Watchfield<br />
Swindon, SN6 8TZ<br />
T: +44 (0)1367 245777<br />
E: sales@datainterconnect.co.uk<br />
W: www.datainterconnect.com<br />
Data Interconnect provides Intelligent Invoice to Cash Automation.<br />
Corrivo Billing, Collection and Dispute modules seamlessly integrate<br />
for a rich, end-to-end A/R user experience. Branded customer<br />
portals, real-time dashboards, advanced reporting, available in 15<br />
languages as standard; are some of the reason why global brands<br />
choose Data Interconnect.<br />
HighRadius<br />
T: +44 7399 406889<br />
E: gwyn.roberts@highradius.com<br />
W: www.highradius.com<br />
HighRadius is the leading provider of Integrated Receivables<br />
solutions for automating receivables and payment functions such<br />
as credit, collections, cash allocation, deductions and eBilling.<br />
The Integrated Receivables suite is delivered as a software-as-aservice<br />
(SaaS). HighRadius also offers SAP-certified Accelerators<br />
for SAP S/4HANA Finance Receivables Management, enabling<br />
large enterprises to maximize the value of their SAP investments.<br />
HighRadius Integrated Receivables solutions have a proven track<br />
record of reducing days sales outstanding (DSO), bad-debt and<br />
increasing operation efficiency, enabling companies to achieve an<br />
ROI in less than a year.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 61 continues on page 62 >
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
FOR ADVERTISING INFORMATION<br />
OPTIONS AND PRICING CONTACT<br />
russell@cabbells.uk 0203 603 7937<br />
CREDIT MANAGEMENT SOFTWARE<br />
DATA AND ANALYTICS<br />
FORUMS<br />
ESKER<br />
Sam Townsend Head of Marketing<br />
Northern Europe Esker Ltd.<br />
T: +44 (0)1332 548176 M: +44 (0)791 2772 302<br />
W: www.esker.co.uk LinkedIn: Esker – Northern Europe<br />
Twitter: @EskerNEurope blog.esker.co.uk<br />
Esker’s Accounts Receivable (AR) solution removes the all-toocommon<br />
obstacles preventing today’s businesses from collecting<br />
receivables in a timely manner. From credit management to cash<br />
allocation, Esker automates each step of the order-to-cash cycle.<br />
Esker’s automated AR system helps companies modernise without<br />
replacing their core billing and collections processes. By simply<br />
automating what should be automated, customers get the post-sale<br />
experience they deserve and your team gets the tools they need.<br />
Dun & Bradstreet<br />
Marlow International, Parkway Marlow<br />
Buckinghamshire SL7 1AJ<br />
Telephone: (0800) 001-234 Website: www.dnb.co.uk<br />
Dun & Bradstreet Finance Solutions enable modern finance<br />
leaders and credit professionals to improve business performance<br />
through more effective risk management, identification of growth<br />
opportunities, and better integration of data and insights across the<br />
business. Powered by our Data Cloud, our solutions provide access<br />
to the world’s most comprehensive commercial data and insights<br />
- supplying a continually updated view of business relationships<br />
that helps finance and credit teams stay ahead of market shifts and<br />
customer changes. Learn more here:<br />
www.dnb.co.uk/modernfinance<br />
FORUMS INTERNATIONAL<br />
T: +44 (0)1246 555055<br />
E: info@forumsinternational.co.uk<br />
W: www.forumsinternational.co.uk<br />
Forums International Ltd have been running Credit and Industry<br />
Forums since 1991. We cover a range of industry sectors and<br />
International trading, attendance is for Credit Professionals of all<br />
levels. Our forums are not just meetings but communities which<br />
aim to prepare our members for the challenges ahead. Attending<br />
for the first time is free for you to gauge the benefits and meet the<br />
members and we only have pre-approved Partners, so you will never<br />
intentionally be sold to.<br />
INSOLVENCY<br />
SERRALA<br />
Serrala UK Ltd, 125 Wharfdale Road<br />
Winnersh Triangle, Wokingham<br />
Berkshire RG41 5RB<br />
E: r.hammons@serrala.com W: www.serrala.com<br />
T +44 118 207 0450 M +44 7788 564722<br />
Serrala optimizes the Universe of Payments for organisations seeking<br />
efficient cash visibility and secure financial processes. As an SAP<br />
Partner, Serrala supports over 3,500 companies worldwide. With<br />
more than 30 years of experience and thousands of successful<br />
customer projects, including solutions for the entire order-tocash<br />
process, Serrala provides credit managers and receivables<br />
professionals with the solutions they need to successfully protect<br />
their business against credit risk exposure and bad debt loss.<br />
C2FO<br />
C2FO Ltd<br />
105 Victoria Steet<br />
SW1E 6QT<br />
T: 07799 692193<br />
E: anna.donadelli@c2fo.com<br />
W: www.c2fo.com<br />
C2FO turns receivables into cashflow and payables into income,<br />
uniquely connecting buyers and suppliers to allow discounts in<br />
exchange for early payment of approved invoices. Suppliers access<br />
additional liquidity sources by accelerating payments from buyers<br />
when required in just two clicks, at a rate that works for them.<br />
Buyers, often corporates with global supply chains, benefit from the<br />
C2FO solution by improving gross margin while strengthening the<br />
financial health of supply chains through ethical business practices.<br />
Menzies<br />
T: +44 (0)2073 875 868 - London<br />
T: +44 (0)2920 495 444 - Cardiff<br />
W: menzies.co.uk/creditor-services<br />
Operating across seven UK offices, Menzies LLP is an accountancy<br />
firm delivering traditional services combined with strategic<br />
commercial thinking. Our services include: advisory, audit,<br />
corporate and personal tax, corporate finance, forensic accounting,<br />
outsourcing, wealth management and business recovery –<br />
the latter of which includes our specialist offering developed<br />
specifically for creditors. For more information on this, or to see<br />
how the Menzies Creditor Services team can assist you, please<br />
visit: www.menzies.co.uk/creditor-services. Bethan Evans, Partner<br />
and Head of Menzies Creditor Services, email: bevans@<br />
menzies.co.uk and phone: +44 (0)2920 447512<br />
LEGAL<br />
Redwood Collections Ltd<br />
0208 288 3555<br />
enquiry@redwoodcollections.com<br />
Airport House, Purley Way, Croydon, CR0 0XZ<br />
“Redwood Collections offers a complete portfolio of debt collection<br />
services ranging from sensitive client-debtor mediation through to<br />
legal and insolvency action.<br />
Incorporated in 2009, we are pleased to represent in excess of<br />
11,000 clients. Whatever your debt collection needs, we have the<br />
expertise and resources to deliver a fast, efficient and cost-effective<br />
solution.”<br />
Satago<br />
48 Warwick Street, London, W1B 5AW<br />
T: +44(0)020 8050 3015<br />
E: hello@satago.com<br />
W: www.satago.com<br />
Satago helps business owners and their accountants avoid credit<br />
risks, manage debtors and access finance when they need it – all<br />
in one platform. Satago integrates with 300+ cloud accounting apps<br />
with just a few clicks, helping businesses:<br />
• Understand their customers - with RISK INSIGHTS<br />
• Get paid on time - with automated CREDIT CONTROL<br />
• Access funding - with flexible SINGLE INVOICE FINANCE<br />
Visit satago.com and start your free trial today.<br />
identeco – Business Support Toolkit<br />
Compass House, Waterside, Hanbury Road, Bromsgrove,<br />
Worcestershire B60 4FD<br />
Telephone: 01527 549 531 Email: info@identeco.co.uk<br />
Web: www.identeco.co.uk<br />
identeco’s Business Support Toolkit is an online portal connecting<br />
its subscribers to a range of business services that help them to<br />
engage with new prospects, understand their customers and<br />
mitigate risk. Annual subscription is £79.95 per year for unlimited<br />
access. Providing company information and financial reports,<br />
director and shareholder structures as well as a unique financial<br />
health rating, balance sheets, ratio analysis, and any detrimental<br />
data that might be associated with a company. Other services also<br />
included in the subscription include a business names database,<br />
acquisition targets, a data audit service as well as unlimited,<br />
bespoke marketing and telesales listings for any sector.<br />
FINANCIAL PR<br />
Gravity Global<br />
Floor 6/7, Gravity Global, 69 Wilson St, London, EC2A 2BB<br />
T: +44(0)207 330 8888. E: sfeast@gravityglobal.com<br />
W: www.gravityglobal.com<br />
Gravity is an award winning full service PR and advertising<br />
business that is regularly benchmarked as being one of the best<br />
in its field. It has a particular expertise in the credit sector, building<br />
long-term relationships with some of the industry’s best-known<br />
brands working on often challenging briefs. As the partner agency for<br />
the Credit Services Association (CSA) for the past 22 years, and the<br />
Chartered Institute of Credit Management since 2006, it understands<br />
the key issues affecting the credit industry and what works and what<br />
doesn’t in supporting its clients in the media and beyond.<br />
Shoosmiths<br />
Email: paula.swain@shoosmiths.co.uk<br />
Tel: 03700 86 3000 W: www.shoosmiths.co.uk<br />
Shoosmiths’ highly experienced team will work closely with credit<br />
teams to recover commercial debts as quickly and cost effectively as<br />
possible. We have an in depth knowledge of all areas of debt recovery,<br />
including:<br />
• Pre-litigation services to effect early recovery and keep costs down<br />
• Litigation service<br />
• Post-litigation services including enforcement<br />
• Insolvency<br />
As a client of Shoosmiths, you will find us quick to relate to your goals,<br />
and adept at advising you on the most effective way of achieving them.<br />
PAYMENT SOLUTIONS<br />
Bottomline Technologies<br />
115 Chatham Street, Reading<br />
Berks RG1 7JX | UK<br />
T: 0870 081 8250 E: emea-info@bottomline.com<br />
W: www.bottomline.com/uk<br />
Bottomline Technologies (NASDAQ: EPAY) helps businesses<br />
pay and get paid. Businesses and banks rely on Bottomline for<br />
domestic and international payments, effective cash management<br />
tools, automated workflows for payment processing and bill<br />
review and state of the art fraud detection, behavioural analytics<br />
and regulatory compliance. Businesses around the world depend<br />
on Bottomline solutions to help them pay and get paid, including<br />
some of the world’s largest systemic banks, private and publicly<br />
traded companies and Insurers. Every day, we help our customers<br />
by making complex business payments simple, secure and seamless.<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 62
PAYMENT SOLUTIONS<br />
American Express<br />
76 Buckingham Palace Road,<br />
London. SW1W 9TQ<br />
T: +44 (0)1273 696933<br />
W: www.americanexpress.com<br />
American Express is working in partnership with the CI<strong>CM</strong> and is<br />
a globally recognised provider of payment solutions to businesses.<br />
Specialising in providing flexible collection capabilities to drive a<br />
number of company objectives including:<br />
•Accelerate cashflow •Improved DSO •Reduce risk<br />
•Offer extended terms to customers<br />
•Provide an additional line of bank independent credit to drive<br />
growth •Create competitive advantage with your customers<br />
As experts in the field of payments and with a global reach,<br />
American Express is working with credit managers to drive growth<br />
within businesses of all sectors. By creating an additional lever to<br />
help support supplier/client relationships American Express is proud<br />
to be an innovator in the business payments space.<br />
ARE YOU A LEADER<br />
OR FOLLOWER?<br />
Key IVR<br />
T: +44 (0) 1302 513 000<br />
E: sales@keyivr.com<br />
W: www.keyivr.com<br />
Key IVR are proud to have joined the Chartered Institute of Credit<br />
Management’s Corporate partnership scheme. The CI<strong>CM</strong> is a<br />
recognised and trusted professional entity within credit management<br />
and a perfect partner for Key IVR. We are delighted to be providing<br />
our services to the CI<strong>CM</strong> to assist with their membership collection<br />
activities. Key IVR provides a suite of products to assist companies<br />
across the globe with credit management. Our service is based<br />
around giving the end-user the means to make a payment when and<br />
how they choose. Using automated collection methods, such as a<br />
secure telephone payment line (IVR), web and SMS allows companies<br />
to free up valuable staff time away from typical debt collection.<br />
RECRUITMENT<br />
Hays Credit Management<br />
107 Cheapside, London, EC2V 6DN<br />
T: 07834 260029<br />
E: karen.young@hays.com<br />
W: www.hays.co.uk/creditcontrol<br />
Hays Credit Management is working in partnership with the CI<strong>CM</strong><br />
and specialise in placing experts into credit control jobs and credit<br />
management jobs. Hays understands the demands of this challenging<br />
environment and the skills required to thrive within it. Whatever<br />
your needs, we have temporary, permanent and contract based<br />
opportunities to find your ideal role. Our candidate registration process<br />
is unrivalled, including face-to-face screening interviews and a credit<br />
control skills test developed exclusively for Hays by the CI<strong>CM</strong>. We offer<br />
CI<strong>CM</strong> members a priority service and can provide advice across a wide<br />
spectrum of job search and recruitment issues.<br />
PORTFOLIO<br />
CREDIT CONTROL<br />
Portfolio Credit Control<br />
1 Finsbury Square, London. EC2A 1AE<br />
T: 0207 650 3199<br />
E: recruitment@portfoliocreditcontrol.com<br />
W: www.portfoliocreditcontrol.com<br />
Portfolio Credit Control, solely specialises in the recruitment of<br />
permanent, temporary and contract Credit Control, Accounts<br />
Receivable and Collections staff. Part of an award winning recruiter<br />
we speak to and meet credit controllers all day everyday understanding<br />
their skills and backgrounds to provide you with tried and tested credit<br />
control professionals. We have achieved enormous growth because we<br />
offer a uniquely specialist approach to our clients, with a commitment<br />
to service delivery that exceeds your expectations every single time.<br />
CI<strong>CM</strong>Q accreditation is a proven model<br />
that has consistently delivered dramatic<br />
improvements in cashflow and efficiency<br />
CI<strong>CM</strong>Q is the hallmark of industry<br />
leading organisations<br />
The CI<strong>CM</strong> Best Practice Network is where<br />
CI<strong>CM</strong>Q accredited organisations come<br />
together to develop, share and celebrate<br />
best practice in credit and collections<br />
BE A LEADER – JOIN THE CI<strong>CM</strong> BEST<br />
PRACTICE NETWORK TODAY<br />
To find out more about flexible options<br />
to gain CI<strong>CM</strong>Q accreditation<br />
E: cicmq@cicm.com T: 01780 722900<br />
Advancing the credit profession / www.cicm.com / <strong>September</strong> <strong>2020</strong> / PAGE 63
Celebrating forty years of delivering debt recovery,<br />
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