CM June 2021 CM magazine

CREDIT MANAGEMENT 

CM 

JUNE 2021 £12.50 

THE CICM MAGAZINE FOR CONSUMER AND 

COMMERCIAL CREDIT PROFESSIONALS 

Chasing 

Rainbows 

Focus on consumer 

debt in South Africa 

Is the debt advice sector 

heading for meltdown? 

Page 8 

How has COVID impacted the 

market for credit insurance. 

Page 32

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JUNE 2021 

www.cicm.com 

CONTENTS 

10 – A RUDE AWAKENING 

A look at Insolvency and Tax Avoidance 

Schemes. 

13 – MANAGE AND MEASURE 

Industry needs to keep an open mind to 

future test and screening services. 

18 

LEAD ARTICLE 

Zak King 

14 – INJECTION OF LEARNING 

How J&J is benefitting from a new CICM 

L&D partnership. 

16 – FALLEN CROWN 

Karen Savage considers the impact of 

Crown Preference on creditors. 

18 – AFRICAN MISADVENTURE 

Consumer debt advice in South Africa 

bears some striking similarities with 

the UK. 

24 – SLEEPING GIANT 

South Africa is a country with its fair 

share of troubles and opportunity. 

32 

BLIND FAITH 

Sean Feast FCICM 

CICM GOVERNANCE 

10 

INSOLVENCY 

Elliot Green 

President Stephen Baister FCICM / Chief Executive Sue Chapple FCICM 

Executive Board: Chair Debbie Nolan FCICM(Grad) / Vice Chair Phil Rice FCICM / Treasurer Glen Bullivant FCICM 

Larry Coltman FCICM / Victoria Herd FCICM(Grad) / Philip Holbrough MCICM 

Advisory Council: Laurie Beagle FCICM / Glen Bullivant FCICM / Alan Church FCICM(Grad) / Brendan Clarkson FCICM 

Larry Coltman FCICM / Niall Cooter FCICM / Bryony Crossland FCICM(Grad) / Peter Gent FCICM(Grad) 

Victoria Herd FCICM(Grad) / Philip Holbrough MCICM / Neil Jinks FCICM / Charles Mayhew FCICM / Debbie Nolan FCICM(Grad) 

/ Allan Poole MCICM / Alice Purdy MCICM(Grad) / Matthew Roberts MCICM / Phil Rice FCICM / Chris Sanders FCICM 

Stephen Thomson FCICM / Sarah Wilding FCICM / Atul Vadher FCICM(Grad) 

View our digital version online at www.cicm.com. Log on to the Members’ 

area, and click on the tab labelled ‘Credit Management magazine’ 

Credit Management is distributed to the entire UK and international CICM 

membership, as well as additional subscribers 

Reproduction in whole or part is forbidden without specific permission. Opinions expressed in this magazine do 

not, unless stated, reflect those of the Chartered Institute of Credit Management. The Editor reserves the right to 

abbreviate letters if necessary. The Institute is registered as a charity. The mark ‘Credit Management’ is a registered 

trade mark of the Chartered Institute of Credit Management. 

Any articles published relating to English law will differ from laws in Scotland and Wales. 

32 – BLIND FAITH 

How has COVID impacted the market 

for credit insurance. PART 1. 

36 – STOP PRESS 

Key trends in the print and packaging 

sector. 

38 – RASH JUDGMENT 

COVID-19, disease clauses and business 

interruption. 

Publisher 

Chartered Institute of Credit Management 

The Water Mill, Station Road, South Luffenham 

OAKHAM, LE15 8NB 

Telephone: 01780 722900 

Email: editorial@cicm.com 

Website: www.cicm.com 

CMM: www.creditmanagement.org.uk 

Managing Editor 


Deputy Editor 

Iona Yadallee 

Art Editor 

Andrew Morris 

Telephone: 01780 722910 

Email: andrew.morris@cicm.com 

Editorial Team 

Sam Wilson, Imogen Hart, Rob Howard 

and Max Tyson. 

Advertising 

Russell Bass 

Telephone: 020 3603 7937 

Email: russell@centuryone.uk 

Printers 

Stephens & George Print Group 

2021 subscriptions 

UK: £112 per annum 

International: £145 per annum 

Single copies: £12.50 

ISSN 0265-2099 

Advancing the credit profession / www.cicm.com /June 2021 / PAGE 3

EDITOR’S COLUMN 

Why has the need for 

debt advice fallen? 


Managing Editor 

THE world of consumer 

credit is rarely dull, and the 

last few weeks have proved 

it. For those looking for 

certainty, there is very little 

to be certain about. 

Various anecdotal stories from debt 

collection agencies regarding the volume 

and values of collections reaching record 

highs appear to have been confirmed 

by a Q1 report from Lowell (see news). 

The pace of recovery of deferred FY20 

UK collections, it says, is ahead of 

expectations. 

Consumers, it appears, have been using 

furlough and other Government support 

schemes to get their respective houses 

in order, and DCAs have been more than 

willing to help. Active, early engagement 

between creditor and consumer, as so 

often championed by the likes of the CSA, 

has been paying off. Literally. 

But the good news from the collections 

industry has been offset by less good 

news from the debt advice sector (see 

our lead news special). StepChange, 

one of our most respected debt advice 

charities, has found itself in a bit of a 

pickle, and obliged to lay off up to 170 

staff. Its CEO blames funding issues, a 

subject discussed in these pages on many 

occasions. 

There is no doubt that the current 

funding models are flawed, but there is 

also no doubt that some of the funding 

that is provided is not going to the front 

line and is instead being squandered on 

overhead. That may be grossly unfair, 

but it’s certainly an opinion that has been 

aired in public before, and high salaries 

and expensive offices are always difficult 

for charities to defend, regardless of the 

audiences they serve. 

StepChange stated that its original 

expectation of advising 400,000 clients 

this year is not going to materialise, and 

since the charity’s income is based upon 

how many clients it helps (the charity 

supported 200,000 clients across the UK 

in 2020, compared to more than 300,000 

the previous year), the CEO was left with 

no choice other than to cut his cloth 

accordingly. 

So why are the expected numbers so 

dramatically adrift? There will be many 

reasons. Government support will be 

one; forbearance another. But could there 

also be another reason? Could it be that 

the advice customers receive when they 

engage with a creditor from the outset 

means that the advice of a third party is no 

longer required? Perhaps that is a stretch, 

but again, anecdotally, the industry is 

telling me that levels of customer/creditor 

engagement are the highest they have ever 

been, and that is now being evidenced by 

the facts. Whether it continues will be the 

challenge. 

StepChange believes that the need for 

debt advice will surge once Government 

support is withdrawn. I expect it is right. 

But then I’ve given up being certain of 

anything these days, and it might be a 

good plan for the debt advice sector, 

agencies and the regulators to do the 

same. 


CMNEWS 

A round-up of news stories from the 

world of consumer and commercial credit. 

Written by – Sean Feast FCICM 

Open banking demand triples 

during COVID-19 pandemic 

THE number of people 

choosing to share their 

data through open 

banking has tripled since 

the start of the COVID-19 

pandemic, according to 

the latest statistics from Experian. 

In February, Experian’s Open Data 

Platform saw more than 188 million 

data sharing requests (up from 47 

million in February 2020) – 30 percent 

of the 669 million requests made in 

the UK overall. More than half (57 

percent) of lenders have adopted open 

banking technology in the last 12 

months, helping people manage their 

finances in more fluid and intuitive 

ways online. 

An accelerated shift towards digital 

banking has seen a greater number 

of people taking advantage of a new 

wave of convenient apps and services 

that can help them manage their 

finances. As a result of the pandemic, 

Experian suggests many people 

have turned to digital – as accessing 

branches, or using cash, became 

increasingly difficult, particularly 

during lockdown. 

Research showed one in five UK 

adults started using online banking 

powered apps during lockdown. Over 

half of Britons (54 percent) now say 

they now use them regularly. 

Lisa Fretwell, Managing Director 

of Data Services at Experian, says the 

business has witnessed an incredible 

boom in digital financial tools over 

the course of 2020: “Open banking has 

the potential to do so much good – 

transforming the way people manage 

their money, helping them plan for the 

future with confidence,” she explains. 

“The next step is about moving as an 

industry to help build understanding 

about the benefits of Open Banking 

tools, so that everyone can feel 

confident in how and when they want 

to share their data, and the value they 

get in return.” 

Lisa Fretwell 

Managing Director of 

Data Services at Experian 

“Open banking has the 

potential to do so much 

good – transforming 

the way people manage 

their money, helping 

them plan for the future 

with confidence.” 

Profit warnings fall amidst ongoing uncertainty 

UK quoted companies issued 50 profit 

warnings in Q1 2021, an 83 percent 

decrease from the 301 warnings 

recorded in Q1 2020. 

According to EY-Parthenon’s latest 

Profit Warnings report, this is the 

biggest year-on-year percentage fall 

in UK profit warnings on record. Profit 

warnings were pushed to record levels 

in Q1 2020 at the onset of the pandemic 

but began to fall from the middle of last 

year. Most FTSE sectors saw significant 

falls in profit warning numbers at the 

start of 2021, as the global vaccine 

roll out bolstered the economy and 

earnings forecasts, according to 

the report. However, the continued 

withdrawal of forecasts by 15 percent of 

FTSE 350 companies indicates ongoing 

uncertainty. 

Alan Hudson, EY-Parthenon 

UK&I Turnaround and Restructuring 

Strategy Leader, says a low level of 

profit warnings are an indication 

of a temporary breathing space for 

companies: “If they haven’t already, this 

is a time for UK business to reset and 

ready themselves to rebuild. 

“The impact of the pandemic won’t 

automatically reverse when lockdown 

ends. For many businesses, pressures 

will intensify as they restart operations, 

Government support tapers, and 

working capital becomes stretched.” 

EY-Parthenon analysis suggests that 

Government support, combined with a 

moratorium on winding-up petitions, 

has significantly reduced corporate 

insolvencies over the course of the 

pandemic (even though they may now 

be on the rise): more than 6,000 extra 

companies would have entered an 

insolvency procedure by this point if 

insolvency levels had continued on the 

same trajectory as pre-March 2020. 


NEWS ROUNDUP 

New statistics suggests 

insolvencies may be on the rise 

INSOLVENCIES may be on the 

rise, according to the latest 

insolvency statistics, despite 

ongoing Government support 

keeping many businesses afloat. 

There were 2,384 seasonally 

adjusted corporate insolvencies in 

Q1 2021, a reduction of 21.9 percent 

compared to Q4 2020’s figures of 3,053 

and a fall of 38.3 percent compared to Q1 

2020 (3,863). 

Colin Haig, President of insolvency 

and restructuring trade body R3 and 

Head of Restructuring at Azets, says the 

quarterly fall in corporate insolvencies 

– to the lowest quarterly total on 

record – has been driven by a drop in 

all corporate insolvency processes: 

“However, the increase in corporate 

insolvencies between February and 

March of this year, which was reported 

earlier this month, suggests corporate 

insolvencies may now be on the rise. 

“It’s clear Government’s support 

measures are still helping to keep 

businesses going, but they have pushed 

back rather than prevented the financial 

pain of the pandemic from translating 

into a sharp, sustained increase in 

corporate insolvencies.” 

The total number of corporate 

insolvencies between April 2020 and 

March 2021 fell by more than a third 

compared with the same period a year 

earlier, while GDP fell nearly eight 

percent during the same period. A drop 

in corporate insolvencies of this scale 

during an economic climate like this 

suggests that corporate insolvencies are 

likely to rise – and rise sharply – in the 

future. “The first three months of 2021 

have been tough for businesses and 

followed a year of pandemic-induced 

problems – shutdowns, re-openings, 

and the challenges of working in a way 

that’s compliant with social distancing 

guidelines. 

“The first three months 

of 2021 have been 

tough for businesses 

and followed a year 

of pandemic-induced 

problems – shutdowns, 

and re-openings.’’ 

“Looking more widely, the economy 

has not recovered from the onset last 

April of the unprecedented economic 

contraction, while consumer confidence 

has also remained low. And although 

consumer spending increased towards 

the middle of March this year, it still 

remained well below 2019 and 2020 

levels for the majority of the first three 

months of this year.” 

As the COVID restrictions lift and 

normality returns, Colin says businesses 

face three key challenges: “First, they 

need to keep a careful eye on their 

cashflow levels to ensure they don’t fall 

into the trap of over-trading. They also 

need to make sure they have a plan for 

reopening in a way that’s sustainable, so 

they don’t undo their efforts to survive 

the last year by mismanaging the next 

couple of months. And they need to 

think about how they will manage when 

the Government support measures end. 

“Many company directors have 

delayed planning for this, but they 

need to use the remaining time they 

have to put a plan in place for the final 

quarter of this year and beyond, before 

the majority of the measures end in 

June, and furlough is wound up in 

September.” 

There were 29,140 seasonally adjusted 

individual insolvencies in Q1 2021, a fall 

of 5.3 percent compared to Q4 2020’s 

figure of 30,769, and a rise of 0.7 percent 

compared to Q1 2020 (28,936). 

Bankruptcies in particular are notably 

lower this quarter than in Q4 of 2020, 

and Individual Voluntary Arrangements 

have also decreased, with the fall in 

Debt Relief Orders less abrupt. The 

quarter-on-year rise, meanwhile, is 

driven entirely by a notable increase 

in IVAs. 

“It’s been a torrid twelve months 

for many people and their personal 

finances,” Colin concludes, “and while 

IVAs tend to correlate to consumer 

debts, the gap in bankruptcies and 

DROs compared with this time last 

year means there may be more 

pain ahead if and when these figures 

start to revert to more ‘normal’ historical 

levels.” 

Lockdown Release 

RESULTS from Lowell, the European credit 

management services business, confirms 

that consumers have been repaying 

their debts in significant volumes over 

lockdown. In releasing its Q1 figures, 

Lowell reported ‘significant’ UK collections: 

a 102 percent collection performance 

in Q1-21 vs its pre-COVID Dec-19 static 

pool expectations. In a statement the 

company said ‘such performance is very 

encouraging, and management is pleased 

with the pace of the recovery in the 

deferred UK collections which is ahead of 

expectations’. 

CSA Awards 

THE Credit Services Association is 

launching a new Award scheme to 

celebrate the outstanding work 

and commitment of staff and 

teams within its membership 

organisations. Held as part of 

the CSA’s UK Credit & Collections 

Conference (UKCCC) in September, 

the awards are divided into three 

categories: a CSA Merit Award; 

CSA Team Award; and the CSA 

Innovation Award. Entries are invited 

by 12 July. For details, see the CSA 

website. www.csa-uk.com/awards 

Gold Star 

INVESTORS in People has again awarded 

credit management group Intrum UK 

gold accreditation, demonstrating the 

firm’s commitment to high performance 

through good people management. Eddie 

Nott, Intrum’s UK Managing Director, says 

the team has worked tirelessly through 

unprecedented times: “This accreditation 

is testament to the value we place on our 

people and the experience they provide 

for our customers.” Investors in People 

is the international standard for people 

management, defining what it takes to lead, 

support and manage people effectively. 


RESEARCH by EQ Credit 

Services into the 

unsecured lending sector 

suggests there is a ‘new 

nervousness’ among 

consumers towards the 

current credit market. 

Surprisingly, the youngest generation 

(age 18-24) appears the most anxious, 

with over half of this group responding 

that they would only be prepared 

to borrow from a well-known high 

street lender. In contrast, the so-called 

Generation X (age 45–54) seems less 

concerned, with 24 percent indicating 

they would happily borrow from any 

lender, providing the rate was acceptable. 

This contradicts the common 

assumption that new entrants and 

challenger brands with an all-digital or 

mobile-first proposition would be in high 

demand among the emerging generation 

of ‘digital native’ young adults. It supports 

a wider trend shown by the report that 

consumers of all ages are rushing toward 

‘safehouse’ credit brands. 

Richard Carter, managing director 

of EQ Credit Services, believes the 

last 12 months have ushered in a new 

nervousness: “Not only is gross borrowing 

down, but just 20 percent would even 

consider borrowing from an alternative 

NEWS ROUNDUP 

Research shows ‘new 

nervousness’ to challenger 

lenders 

lender, down from 62 percent in 2019. 

This is a major shift, illustrated most 

surprisingly by the young adults of 

Generation Z, who are most likely to trust 

an established high street brand. 

“Given the prevailing climate of 

financial anxiety post 2020, this 

would make sense, as 61 percent of all 

respondents still insist on speaking 

directly to the lender during their 

application. So clearly it is the brands 

that offer human expertise, experience 

and a compassionate and empathetic 

approach to individuals’ needs that will 

win out.” 

Findings in the report also reinforce 

the need for an appropriate balance 

between human interaction and cuttingedge 

technology. Whilst the human touch 

remains important, data still holds the 

key to successfully supporting customers, 

especially when it comes to identifying 

the growing number that have found 

themselves more financially vulnerable 

after the turmoil of the past year. 

“The lenders with agile systems and 

technologies that enable them to adjust 

quickly to their evolving responsibilities 

and changing customer circumstances 

will stand out in the market, both to 

customers and to their supervising 

authorities,” Richard concludes. 

>NEWS 

IN BRIEF 

Just members 

JUST, the enforcement market 

integrator has become a member of 

The Civil Enforcement Association 

(CIVEA). By joining CIVEA, Just says 

it is demonstrating a commitment 

to delivering the highest standards 

of enforcement activity and to 

ensuring that fair and principlebased 

approaches and outcomes 

are achieved by all involved. Russell 

Hamblin-Boone, CEO of CIVEA was 

pleased to welcome Just to its ranks: 

“There are many challenges ahead 

for our industry and we are pleased 

to be able to grow our membership 

with firms that are committed to the 

highest standards of civil enforcement. 

As we take stock following the 

pandemic, I look forward to working 

with Just to ensure that we continue to 

drive industry improvements.” 

Penny for them 

PENNYWORTH, the digital bank 

founded by former-Barclays executives, 

has launched the first version of a new 

financial planning app. Pennyworth 

says it has created the app to help 

aspiring-affluent individuals earning 

more than £40,000 a year, or with a 

similar level of savings, make the most 

of their money by making it easier to 

identify, prioritise and fulfil important 

life goals. 

Atradius achieves CICMQ accreditation – virtually! 

ATRADIUS Collections, the commercial 

debt collection services company, 

has been awarded its first CICMQ 

accreditation, a demonstration of 

excellence in credit management. 

Currently the only debt collection 

company to hold the CICMQ 

accreditation, it has also broken new 

ground by being the first organisation to 

complete the entire process virtually. 

Yvette Gray MCICM, Country Director 

UK & Ireland for Atradius Collections, 

says seeking accreditation was an 

obvious decision: “As only 50 or so 

companies have achieved accreditation, 

our own recognition shows that we are 

a real leader in the collections 

sector. This gold standard 

in industry accreditation 

allows us to demonstrate 

to customers as well as the 

wider credit management 

industry the strength of 

our expertise, robustness 

of our processes and 

that we operate at the highest level. 

Not only does it benchmark us with the 

best, but it also provides us with access 

to the CICMQ Best Practice Network, 

which has been a real lifeline during 

lockdown.” 

“We were presented with a real 

challenge,” she continues, “with the 

country going into lockdown in March, 

around the time our programme was 

due to begin. Nonetheless, we were 

determined to grow and develop, 

and it is thanks to the hard work and 

continued focus of our brilliant team 

that we are now CICMQ accredited.” 

Chris Sanders, CICMQ Assessor, says 

Atradius Collections demonstrated 

the three key elements of a high 

performing team – people, 

planning and stakeholder 

management: “This team is outstanding, 

demonstrating all three attributes and 

rightly deserve recognition for their 

achievement. The results achieved 

over a very difficult trading year are 

inspiring and represent the company’s 

professionalism and determination to 

provide excellent service.” 

He adds that this accreditation 

represents a milestone for the CICMQ 

programme itself: “We overcame the 

national lockdowns by providing all 

the workshops virtually and managed 

to engage the entire team despite the 

physical distances between us all.” 

While this was the first programme 

to be completed virtually, the CICM has 

now completed 10 or more workshops 

for organisations such as Vodafone, 

L’Oreal and Biffa. 

“As only 50 or so companies have achieved 

accreditation, our own recognition shows that we are 

a real leader in the collections sector.’’ 


NEWS SPECIAL 

StepChange blames ‘funding 

issues’ for cutting 170 jobs 

STEPCHANGE, the Leeds-based debt 

charity, is laying off up to 170 staff 

– approximately 10 percent of its 

workforce – as it makes compulsory 

redundancies in response to 

funding troubles. The move is said 

to have left the Unite union ‘dismayed‘. 

Chief Executive Phil Andrew said that the 

charity was not immune to the wider pressures 

arising from COVID, despite the significant 

additional support StepChange has received 

from Government and other sources: ‘‘The 

Government, the Money and Pensions Service, 

and the debt advice sector itself were expecting 

a huge wave of demand to materialise once the 

emergency support measures fade away, and 

we still do,’’ he explains. 

‘‘Based on 2021 experience to date, however, 

our original expectation of advising 400,000 

clients this year is not going to materialise.” 

The charity’s income is based upon how 

many clients it helps, with those volumes 

affecting the level of Government and devolved 

authority funds received as well as the amount 

received from creditors in recognition of its 

work to support people in repaying their debts. 

“The majority (of our funding) comes from the 

‘Fair Share’ contribution that many creditors 

make to us in recognition of our service, which 

is based on the level of the debt repayments 

that we pass on to them that our clients on 

managed solutions make towards their debts,” 

he continues. “This funding model has obvious 

flaws. Those flaws have never been laid bare 

quite so starkly as under current conditions. 

“Putting it bluntly, the combination of fewer 

people taking debt advice (because temporary 

support has not yet been withdrawn), and the 

lower payments being made by many existing 

clients toward their debts (due to higher 

creditor forbearance, and lower client incomes) 

mean that we face a significant shortfall 

between the funding we had anticipated 

getting at this point, and the amount that we 

are actually getting.” 

StepChange said it had supported 200,000 

clients across the UK in 2020, compared to 

more than 300,000 the previous year: “The 

fact that we expect demand to increase in 

the future doesn’t change this current reality,” 

Phil adds. "As a prudent charity, we will not 

compromise our financial stability by relying 

on future funding to support our current 

operating costs." 

As well as making redundancies, the 

charity still has staff furloughed through the 

Government's Job Retention Scheme and has 

frozen pay. ‘‘In the short term, this approach 

of cutting our cloth to fit comes with a high 

degree of pain for us as a caring employer. It 

is not what we would have wished to do, even 

though it is absolutely the right thing to do,” 

he continues. “However, over the medium and 


NEWS SPECIAL 

‘‘Our branch members are dismayed to hear that StepChange 

Debt Charity plans to make 10 percent of its workforce 

redundant, and impose a pay freeze on remaining staff’’ 

long term we hope it will concentrate the 

minds of policymakers and funders alike 

on what debt advice is for, what its role in 

the financial eco-system should be, and 

how it can be sustainably provided and 

funded in a predictable fashion.” 

Unite’s West Yorkshire and Humber 

Community, Youth Workers and Notfor-Profit 

branch reacted angrily to the 

announcement: “Our branch members are 

dismayed to hear that StepChange Debt 

Charity plans to make 10 percent of its 

workforce redundant, and impose a pay 

freeze on remaining staff,’’ a spokesman 

said. ‘‘Unite will support our members 

at StepChange in whatever action our 

members decide is required.” 

One industry insider told Credit 

Management that claims of ‘inadequate 

funding’ were difficult to support, 

given that StepChange had been on 

a recruitment drive in 2020 by which 

time volumes were already dropping. It 

has also been suggested that volumes 

of enquiries may have been in decline 

because customers had been receiving 

better outcomes simply from engaging 

with creditors, debt purchasers and 

collections agencies without the need 

to go down the debt advice route. This is 

certainly supported by increased volumes 

of settlements being reported anecdotally 

by the DCAs and in reality with latest 

Quarterly figures by Lowell. 

Certainly not all debt charities appear 

to be suffering in the same way. Jane 

Tully, Director of External Affairs and 

Partnerships at the Money Advice Trust, 

told Credit Management that demand was 

indeed falling, but she had no plans for any 

redundancies: “In line with trends across 

the sector, we are seeing lower demand 

coming into our debt advice services when 

compared to previous years. This is due to 

the positive impact of temporary measures 

put in place by Government, regulators 

and creditors to help households through 

COVID-19. Nonetheless, our services 

are operating close to capacity and we 

continue to expect a significant increase 

in debt problems when these measures 

come to an end. 

“The Money Advice Trust’s funding 

model is different to other organisations, 

with the vast majority of our services 

funded by charitable donations from 

creditors and funding from the Money and 

Pensions Service – rather than via debt 

solutions income. “We have no plans to 

reduce the size of our operations.” 

If you are affected by this story, please 

familiarise yourself with CICM resources 

which may help you through this process. 

>NEWS 

IN BRIEF 

Alan Levene MCICM 

CREDIT Management is sad to report 

the passing of Alan Levene MCICM. 

Alan, together with Stephen Lewis, was 

a founding partner in LPL Commercial 

Investigations, a Commercial Debt 

Collection Agency. 

He specialised in Overseas and 

Insolvency Book Debt collection in 

particular, on behalf of numerous IP’s. 

In earlier years he was very active 

in the growth of the Credit Services 

Association (CSA) and always offered 

valuable specialist help in training 

members of the industry to improve 

standards. A proud member of the 

CICM, he was to have become a 

Honorary Fellow later this year. He 

has passed the mantle of specialist 

debt collection on to his two sons 

Gavin and Richard, who, together with 

Stephen, will continue the collection 

services offered by LPL. “His acerbic 

wit and humour always made difficult 

collection scenarios that much easier 

to solve,” Stephen says, “and he will be 

sorely missed by all who knew him.” 

Cyber essentials 

THE Financial Conduct Authority 

(FCA) has sent 4,430 of its employees 

on compulsory cyber and information 

security courses over the past two 

financial years – (FY 19-20 and FY 20- 

21) – to help combat the growing threat 

of financial crime, such as money 

laundering and fraud, according to 

official figures. This data was obtained 

via The Parliament Street think tank 

under the Freedom of Information 

(FOI) Act. The FCA revealed that as 

well as the ‘Cyber and Information 

Security’ eLearning course, which is 

compulsory for all staffers to complete, 

217 participants were also enrolled into 

locally organised security courses for 

more advanced training. The additional 

training courses included Cyber 

Security training with a Counter Threat 

Unit. 


INSOLVENCY 

A RUDE AWAKENING 

Is Insolvency a Director’s useful response to 

the consequence of Tax Avoidance Schemes? 

AUTHOR – Elliot Green 

WHEN the debts of a company 

become unmanageable, 

liquidation might not be 

far away. But is insolvency 

the answer for a Director 

with that tax avoidance 

problem? Insolvency can sprout anytime and as 

a result, the relationship between tax avoidance 

and insolvency can be seen at all stages in the tax 

enquiry and investigation process. 

HMRC, TAX AVOIDANCE SCHEMES 

AND INSOLVENCY 

A company that has gone into liquidation 

will rarely trade and it is axiomatic that it will 

eventually flatline. Nevertheless, the company is 

kept on life support by its liquidator, guided by the 

Insolvency Act 1986. That means that HMRC will 

still have a role to play in its future. 

EMPLOYEE BENEFIT TRUSTS AND 

EMPLOYER FINANCED RETIREMENT 

BENEFIT SCHEMES 

A considerable number of insolvent liquidations 

have arisen in recent years with tax liabilities 

arising from such tax avoidance schemes as 

Employee Benefit Trusts (EBTs) or Employer 

Financed Retirement Benefit Schemes 

(EFRBS). HMRC typically plays an active role 

in such liquidations in the furtherance of their 

investigations into these schemes and often as a 

major creditor. 

It is not hard to see why these schemes have been 

targeted by HMRC enquiries. An idiosyncrasy of 

many is that they may appear (if nothing else) 

somewhat artificial, sending money around in a 

circle. Furthermore, often the loans that all too 

often feature, are not repaid. In the case of Ecology 

Support Services Ltd v Hellard [2017] EWHC 160 

(Ch) the liquidator appears to have likened circular 

schemes and the consequential movement of 

money to being like that of a ‘spinning top’. 

Arguably, such schemes appear to suffer the risk 

of impermissibility because save for tax avoidance, 

they potentially have no other desiderata. 

THE INSOLVENT COMPANY’S TAX 

ENQUIRY 

Insolvency can change the dynamics of a tax 

enquiry and any consequential trip to the Tax 

Tribunal. 

It is unlikely to improve the company’s prospects 

of going before a Tribunal. In many cases there 

will be no money left behind for a liquidator to 

pursue any appeal, assuming it is considered to 

have merit. Insolvency will, however, change the 

personality with control over the conduct of the 

enquiry. The taxpayer will now be controlled by 

the Insolvency Practitioner who acts instead of the 

Directors. In a liquidation only the liquidator has 

standing to prosecute a tax appeal (see GP Aviation 

Group International Limited [2014] 1 BCLC 474). 

The Tax Tribunal has exclusive jurisdiction 

to resolve tax disputes between the taxpayer 

company and HMRC. Usually, the Insolvency and 

Companies Court will not intervene. On insolvency 

the tax enquiry rumbles on, potentially with 

renewed vigour. This is perhaps ironic given the 

insolvency usually will indicate that the prospect 

of full recovery of the tax will drop like a stone. 

However, prior to liquidation, HMRC’s requests 

for information may be closely monitored and 

influenced by recommendations put forward by 

the Promoter of the Tax Avoidance Scheme. Once 

the company goes into liquidation, the Promoter’s 

influence may decline. 

Liquidators deal with HMRC daily and typically 

will understand the duty to HMRC. That duty can 

perhaps not be better articulated than how it was 

promulgated in Nicholson v Morris (H M Inspector 

of Taxes) 51 TC 95: ‘…it is idle for any taxpayer to 

say to the Revenue, “Hidden somewhere in your 

vaults are the right answers: go thou and dig them 

out of the vaults.” That is not a duty on the Revenue. 

If it were, it would be a very onerous, very costly 

and very expensive operation, the costs of which 

would of course fall entirely on the taxpayers as 

a body. It is the duty of every individual taxpayer 

to make his own return and, if challenged, to 

support the return he has made, or, if that return 

cannot be supported, to come completely clean…’ 

HMRC may therefore anticipate (and receive) 

useful information from an Insolvency Practitioner 

in the furtherance of their investigations into a 

scheme. This may assist HMRC if it is considering 

launching a challenge to a particular scheme in 

the Tax Tribunal. 

INVESTIGATIONS ON SEVERAL FRONTS 

Once the company goes into liquidation a Director 

could find themselves fighting on several fronts. 

Whilst Directors might feel some initial relief 

from releasing themselves from the company’s tax 

enquiry at the outset of liquidation, they can still 

end up facing tax enquiry questions put forward 

instead by the liquidator. 

Furthermore, to arguably add salt to the 

wounds, if inadequate provision has been made 

for tax but the company coffers still nevertheless 

have been emptied by way of subsequent dividend 

extractions (since the opening of an enquiry but 

prior to liquidation), the liquidator may initiate 

investigations into their lawfulness. And, if HMRC 

considers the tax avoidance particularly egregious, 


INSOLVENCY 

AUTHOR – Elliot Green 

a Director who attempted use liquidation as 

an exit route might still have to grapple with a 

Personal Liability Notice (PLN). 

The old adage that which is cheap can be 

expensive may still therefore be true. 

TAX AVOIDANCE SCHEMES AND 

INSOLVENCY PROCEEDINGS 

The impact of tax avoidance in insolvency 

proceedings has not been a judicial backwater. 

The use of EBTs as a tax avoidance mechanism 

suffered a blow following the landmark 

decision, RFC 2012 Plc (in liquidation) (formerly 

The Rangers Football Club Plc) (Appellant) v 

Advocate General for Scotland (Respondent) 

(Scotland) [2017] UKSC 45 (‘the Rangers 

Decision’), handed down by the Supreme Court. 

It determined that the tax avoidance scheme 

used by Rangers Football Club was ineffective 

and that PAYE and NIC should have been 

deducted when payments were made into the 

scheme. 

A considerable 

number of 

insolvent 

liquidations have 

arisen in recent 

years with tax 

liabilities arising 

from such tax 

avoidance schemes 

as Employee 

Benefit Trusts or 

Employer Financed 

Retirement Benefit 

Schemes. 

HMRC seems to be succeeding in the fight 

against tax avoidance, particularly when it 

appears able to show that an avoidance scheme 

had no purpose, other than tax avoidance. The 

Rangers Decision seems to have speeded up 

the prior glacial progression of tax avoidance 

cases. Indeed, now liquidators have challenged 

payments into such tax avoidance schemes with 

some alacrity. Notably in the reported cases of 

Ball (PV Solar Solutions Ltd) v Hughes [2017] 

EWHC 3228 (Ch) (‘PV Solar’) and more recently 

in Re Implement Consulting Ltd [2019] EWHC 

2855 (Ch) (‘Implement Consulting’). 

In both PV Solar and Implement Consulting, 

the liquidators successfully challenged tax 

avoidance related transactions. Directors were 

liable to account to these insolvent companies 

for significant losses. Implement Consulting 

was particularly conspicuous following the 

exegesis of Chief Insolvency and Companies 

Court Judge Briggs: ‘…the Respondents had 

caused the capital reserves to be swept from 

the balance sheet since 2009 notwithstanding 

the presence of a risk that sums would become 

due to HMRC as a direct result of the “aggressive 

tax” planning undertaken by the Company; (vi) 

no provision had been made for a risk that was 

apparent even if they believed it to be remote or 

unlikely.’ 

EBTs are arrangements that arguably may well 

be rooted in employee incentivisation. Perhaps, 

however, even the incurious and insouciant 

mind might not always be so readily convinced 

by such a rationale, a fortiori in cases of ownermanaged 

businesses whose only beneficiaries 

of the EBTs, might be the Directors and their 

families. 

It is perhaps arguably not the subsequent 

inability to avoid tax that might have 

disincentivised some Directors from continuing 

to trade. Indeed, some may have reverted to the 

prior practice of declaring and paying dividends 

once the disguised remuneration legislation 

came into effect in the Finance Act 2011. 

However, cessation of trading and subsequent 

insolvency may have culminated instead after 

issuance by HMRC of Advanced Payment 

Notices (APNs) with the additional interest and 

penalties. 

Whilst many tax avoidance schemes may 

to some people arguably appear to promote 

more in tax planning terms than they might 

sometimes deliver, a Director who does not 

take independent professional advice on them 

and carefully review their typically heavily 

caveated terms of engagement, may risk finding 

themselves at a notable disadvantage when 

insolvency comes along. 

Elliot Green is an Insolvency 

Practioner with Oliver Elliot. 


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OPINION 

Testing Times 

When it comes to COVID-19, you can’t 

manage what you can’t measure. 

MASS testing continues to 

dominate the headlines 

and Government thinking 

in terms of getting people 

back to work and the 

economy moving. It is 

similarly being discussed as a tool to kick-start 

our leisure and hospitality sectors. 

What has become particularly apparent 

as part of the debate, however, is that ‘mass 

testing’ as a phrase means different things 

to different people. To some, it signals 

an important investment that is key to 

protecting essential workers in mission 

critical businesses, such as nuclear and 

defence. To others, it represents no more than 

compliance, a cost that has to 

be met to tick a box to satisfy 

a vague diktat and a need to be 

seen to be doing something. 

There is no doubt that 

‘cost’ has been a factor in 

these debates, and that is 

understandable; an arguably 

more important element has 

been accuracy. 

As a result, we seem, as a 

nation, to have been drawn 

to a conclusion that if you 

want a more expensive testing 

option with a higher degree 

of accuracy you have to take 

one route, whereas if you are 

prepared to sacrifice accuracy (within limits 

that are still acceptable/safe) in order to pay 

less then you have to take another. 

The choices, however, are not binary: this 

is not a VHS versus Betamax moment, for 

those of us old enough to remember. There 

are many different paths available to us. 

We simply need to be more flexible in our 

thinking, and more flexible in the solutions 

we propose. 

‘Gold Standard’ testing that delivers 

the highest degree of accuracy involves a 

combination of LAMP/PCR tests conducted in 

series – which we have badged as ‘LampWorX’. 

They provide a very high degree of specificity 

(99.995%), which means the risk of a false 

positive is extremely rare (at 1 in 20,000 tests 

conducted) whilst the false negative rate is 

vanishingly low due to the extremely high 

‘gain’ in the initial LAMP reaction. Such testing 

is used actively in mission critical industries – 

businesses such as EDF and BAE Systems – to 

keep staff and visitors safe. 

A more widely known testing regime 

AUTHOR – Stuart MacLennan 

What we do 

need to focus 

on is taking 

a flexible and 

open-minded 

approach 

to tackling 

what remains 

an ongoing 

challenge. 

is Lateral Flow, the method being used by 

schools and colleges, for example, and being 

promoted in relation to events and stadia. 

Lateral Flow tests achieve fast results but have 

a lower level of accuracy, although it could be 

rationally argued that sensitivity, specificity, 

speed and ease of use are a trade-off, and so 

not necessarily a ‘disadvantage’ in the strictest 

sense. 

Crucially, however, it doesn’t have to be an 

‘either/or’ decision. One size does not need to 

be made to fit all needs. 

LAMP/PCR tests, for example, and daily 

testing can be used when infection rates 

are high but adapted to become more of a 

managed, screening-led service as the risk 

declines; as implemented 

in our LampWorX process. 

Similarly, a Lateral Flow-based 

solution can be made more 

accurate through a laboratorybased 

testing approach, again 

with a second confirmatory 

test of the same swab to 

provide an additional level of 

Quality Control, thus virtually 

eliminating the problems 

caused by false positives. 

This is what we are calling 

ProteinWorX, based on the 

protein antigen ‘base-test’ of 

the process. Regardless of 

which process we initiate – 

LampWorX or ProteinWorX – the same swab, if 

returning a positive result, can then followed 

by a sequencing test to identify the variant, 

ensuring we can immediately identify and 

respond to new strains. 

The point is a simple one: we don’t need to 

fixate on one route or another. There are many 

combinations of options available to us, and 

different industries and audiences will have 

different needs. Those needs will also change, 

and we need to be able to respond accordingly. 

Vulnerability is rarely a permanent state. 

What we do need to focus on is taking 

a flexible and open-minded approach to 

tackling what remains an ongoing challenge. 

With the fear of a third-wave and the constant 

need to identify and address new variants, the 

way that we manage, measure and monitor 

our response in the future will play a huge 

part in how quickly and safely we can return 

to ‘business as usual’. Flexibility will be key. 

Stuart MacLennan is CEO, 

Circular1 Health. 


OPINION 

An Injection of Learning 

Johnson & Johnson is reaping the benefits of an 

L&D partnership with the CICM. 

AUTHORS – Sam Wilson and Sean Feast FCICM 

FOR one of the world’s most 

valuable companies, credit 

management is a businesscritical 

responsibility, reliant 

on policy, process and – most 

importantly – a highly skilled 

team of credit management professionals. 

So, when Johnson & Johnson started its 

I2C transformation journey, one thing 

stood out as a key ingredient for success: 

learning and development. 

The American multinational has been 

a stalwart of the global pharmaceutical 

industry since 1886 and in the past year 

has been one of the big four spearheading 

the global race for a COVID-19 vaccine. 

All of these challenges have steered 

Johnson & Johnson into a European-wide 

development partnership with the CICM 

to develop, nurture and support its credit 

management professionals. 

For Karen Tuffs, Johnson & Johnson’s 

UK and Ireland’s Senior I2C Credit 

Controller, the partnership with CICM was 

a natural progression for the company as 

its I2C transformation continued. A 33- 

year veteran of credit management and 

graduate of the CICM study programme, 

she knows first-hand how a partnership 

with the institute could further enable the 

credit management team. 

Having trained with the ICM (as it was 

then) when she began her career in credit 

management, it wasn’t until 2014 when she 

joined Johnson & Johnson and met her 

like-minded manager Olivier Theodore, 

that together they hatched a plan to create 

their own programme. 

“My involvement with colleagues, 

seeing their development and their success 

is one of the most rewarding aspects of 

my career,” Karen explains. “It feels like I 

can give something back to a profession 

that has given me so much! None of this 

would have been possible without the 

CICM of course, and it has been a privilege 

to work with them and we’re looking 

forward to what more we can achieve 

together.” 

PARTNERSHIP APPROACH 

The L&D partnership between CICM and 

Johnson was formed in 2018 and launched 

with a trial of 10 students in Prague, one 

of Johnson & Johnson’s European global 

finance hubs. However, the partnership 

has been a unique one. The aim of the 

first cohort was to assess what worked for 

Johnson & Johnson and provide student 

feedback to the CICM and to Karen and 

her team as well as assess the course 

content and any hurdles that could be 

circumvented, such as language barriers. 

“Our plan from the outset was to create 

a flexible training course that would allow 

our teams to achieve what they wanted 

to achieve within their own career. We 

trialled the course with 10 students 

over three years ago and it’s been such a 

success that we’re still working together. 

The success rate of the first cohort of 

students was extremely high, with an 82 

percent pass rate for credit management 

exams and an 89 percent pass rate for 

the business environment exams. The 

first group has now moved up on to 

level three qualification and with that 

they’ve inspired so many that a waiting 

list is now in place for enrolment on to 

the first modules. The development and 

feedback from the first few cohorts gave 

Johnson & Johnson and the CICM the 

opportunity to tailor their training and 

study courses depending on what was 

working and delivering results for their 

students. 

“Being able to tailor the learning plan 

has really allowed us to dial into what 

matters for our organisation but also 

what’s important for our colleagues’ 

futures. The course teaches them what 

they need to know for their role at Johnson 

& Johnson but will also enable them to 


OPINION 

AUTHORS – Sam Wilson and Sean Feast FCICM 

“Being able to tailor the learning plan has really allowed us 

to dial into what matters for our organisation but also what’s 

important for our colleagues’ futures.’’ 

“It’s a huge privilege to be able to study 

with CICM. It gives me deeper insights into 

the credit & collection work and reminds 

me of the basic standards that need to be 

set and maintained.” 

“I have recently completed the first level/ 

year of CICM programme. I must admit it 

was a bumpy journey, but I am very happy 

that I managed to complete it. I really 

enjoyed our classes with Kevin, they were 

really interactive, and they also helped me 

to get better understanding of the topics.” 

“The way the course fit around my job/ 

activities in Invoice to Cash department 

was exciting. The course helped me 

to understand the nuances and the 

background of what I was doing every day 

and allowed me to comprehend the end-toend 

processes and the overall functioning of 

credit controls.” 

“I am still at the very beginning of my 

CICM ‘journey’ though passing Credit 

Management exam with a result of 95 

percent was very satisfying and some of the 

gained knowledge still helps me in my daily 

work.” 

“Studying with CICM means a lot to me, 

it certainly helped to give me a framework 

to carry out my job. With limited finance 

education, CICM courses gave me the tools 

I needed for my work.” 

progress their career further afield which 

is unique across the industry.” 

Along with developing their team into 

a fully-fledged CICM qualified credit 

management operation, the partnership 

has also improved Johnson & Johnson’s 

staff retention rate. The course is a first of 

its kind and allows the company to stand 

out from the crowd and provide a valuable 

benefit to employees. 

“For a period of time,” Karen says, 

“we were losing team members in the 

collections team and struggling to replace 

them, now we have a programme in place 

that team members want to be a part of. 

With the support and training we provide 

our credit management team they have 

a genuine opportunity to develop and 

go further without massive costs, a real 

selling point for us.” 

Now in its fourth year, the partnership 

has been going from strength to strength 

since it began, however, the pandemic 

introduced a new challenge for the 

learners. Taking the exams became more 

difficult with centres and offices closed 

around the globe. Regardless, Johnson 

& Johnson’s cohorts continued their 

exceptional run with a 79 percent pass 

even whilst balancing remote working 

and home schooling. In 2021 the course 

continues to bear fruit with Johnson 

& Johnson moving towards a more 

solidified partnership. The collaboration 

will see 20 new colleagues progress with 

a formal training plan that will include 

individual development plans tailored to 

the student. 

As the course enters its third cohort the 

development partnership will be reviewed 

in November including compiling student 

and CICM feedback to again further the 

partnership and improve the learning. 

“Working with CICM has been 

incredibly important for our colleagues 

and for Johnson & Johnson,” said Karen. 

“We’re excited to see the new cohorts 

get started with their training and are 

looking forward to reviewing the course 

in November to see what more we can do 

together.” 


OPINION 

CROWN 

OF THORNS 

Crown Preference is likely to be to the 

detriment of many creditors. 

IT was on December 1, last year that 

HMRC formally reverted to secondary 

preferential status in all insolvency 

processes, ranking above floating 

charge holders and unsecured creditors. 

Put simply, it gives the Government 

preferential treatment over most other creditors, 

including banks, lenders, and suppliers in 

insolvency procedures. 

The rationale behind the decision have 

been well rehearsed. The purpose is to swell 

Government coffers and boost tax revenues. It was 

a measure they last enjoyed back in 2002, a status 

that was rescinded as part of the Enterprise Act of 

the same year. 

While the decision may look like a smart move 

for Government, such changes to the order of 

payments in an insolvency situation are not only 

likely to be to the detriment of many creditors, but 

they are also likely to drive changes in behaviour, 

and not necessarily for the better. 

Under the ‘old’ crown preference regime, only 

tax debts of up to one year old had the benefit 

of preferential status. With the ‘new’ regime 

it’s different: all tax debt, regardless of age, has 

preferential status, irrespective of the date that 

the tax debts were incurred or the date of the 

qualifying charge. This lack of a time bar means 

both unsecured and floating charge creditors will 

see their returns from insolvencies reduced. It 

ultimately means less cash for businesses just at a 

time when businesses really need cash to survive. 

AUTHOR – Karen Savage FCICM 

WINDING DOWN 

As the Government support schemes begin to 

wind down, and VAT repayment holidays draw 

to a close, unsecured creditors will be last in the 

queue for any cash left to distribute once the 

HMRC has taken its cut. This has a number of 

implications for businesses and the uncertainties 

they face as we come out of COVID, particularly 

for small businesses who may find access to 

future funding even more of a challenge or more 

expensive. Perhaps of even greater concern, it is 

also possible that business payment terms may be 

tightened by suppliers. The erosion of the floating 

chargeholder’s value could lead to lenders being 

less willing to advance new lending, or re-finance 

existing debt. UK Finance has estimated that the 

new rules will remove circa £1bn of lending that 

might ordinarily be available to borrowers, and 

this could seriously impact both the speed and 

scale of the economic recovery. 

There is a real concern that Crown Preference 

is likely to impact access to and the cost of finance, 

all at a time when businesses are going through 

the toughest time in economic history. 

Karen Savage FCICM is Chief Operating Officer 

and Solicitor at Azzurro Associates. 

This lack of a time bar means both unsecured and floating charge creditors 

will see their returns from insolvencies reduced. It ultimately means less cash 

for businesses just at a time when businesses really need cash to survive. 


€ 

€ 

EU Factsheet 

ITALY 


Nelson Mandela once described the ‘walk to 

freedom’ as being a ‘long’ one. It was indeed a 

political struggle that took decades. 

AFRICAN 

MIS-ADVENTURE 

What parallels can we draw from the good, the bad, 

and the ugly side of consumer debt in South Africa? 

AUTHOR – Zak King 


CONSUMER CREDIT 


WHEN the Apartheid 

system was dismantled in 

the early 1990s, millions 

of South Africans were 

excited to enter the 

formal credit market 

for the very first time. Within a decade, most 

of these new credit users had over committed 

themselves and were seriously over indebted. 

What followed was a flood of consumers, 

including Government employees, receiving 

attachment orders against their monthly 

salaries due to non-payment. This ultimately 

saw the rise of the payday lender and a boom 

in shorter term lending. 

Over the next decade, the situation would 

worsen to the point where Government would 

finally decide there was a crucial need to adjust 

and consolidate existing credit legislation 

to try to reduce abuses, and thereby bring 

balance between the rights of the mighty credit 

provider, and the lowly consumer. 

The result was the establishment of the 

National Credit Act (NCA) which came into 

effect, rather fortuitously, in 2007 just before 

the great global recession. The Act, though not 

without drafting issues, forced credit providers 

to drastically adjust lending behaviour, and 

provided consumers with mechanisms for 

dealing with runaway debt. 

One feature of the Act required lenders to do 

extensive background checks and calculations 

to ensure that the lender could in fact repay 

the money each month. Failing that, the 

credit provider could find themselves guilty 

of ‘reckless lending’ and face a fine of up to 10 

percent of their annual turnover. 

Another outstanding feature was the 

introduction of professional debt counselling. 

Trained and registered individuals would be 

able to help troubled consumers go to court 

and have their monthly debt repayments 

restructured into an amount they could 

realistically afford. 

WEATHERING THE RECESSION 

Perhaps it was due to the Act (and several 

other positive factors) that South Africa was 

able to weather the 2008 great recession 

better than many other developing countries. 

Unfortunately, a decade of dishonesty and 

corruption during the tenure of President 

Jacob Zuma was about to begin. This would 

drain municipal coffers, push up Government 

indebtedness and misdirect funds needed for 

infrastructure development and upgrading of 

power generation capacity. All of which would 

have massive negative consequences for one of 

Africa’s top economic powerhouses. 

During this difficult decade nearly one 

million South Africans would begin to make 

use of the debt counselling process. The 

country’s economy sat balanced at the edge 

of the abyss trying to avoid downgrades by 

international ratings agencies with the danger 

of this scaring off investors. 

And then came 2020, and with it a global 

pandemic. 

When COVID-19 first hit South Africa, at 

the end of March 2020, a three-week hard 

lockdown came into effect. People were only 

allowed to leave home to shop for food or seek 

medical attention. The lockdown was then 

extended and was in effect at various lessening 

levels of restrictions since. This allowed the 

economy to slowly get back up to speed, 

while regulating the pressure on the country’s 

medical infrastructure. 

South Africa was one of only a few countries 

in Africa willing, or able, to report meaningful 

COVID-19 statistics. This reporting and 

extensive testing made it stand out during the 

start of the Pandemic. Swift Government action 

and tough restrictions helped limit the spread 

of the virus among the population of around 60 

million. Ten million tests have been conducted 

and to date only 1.5m South Africans have been 

infected, with a 95 percent survival rate. 

Lockdown however, hit the economy hard, 

particularly the mining industry, as well as the 

wine, manufacturing and tourism industries. 

Like elsewhere in the world, retail too was 

decimated in those first few months, as people 

who were not earning anything were unable to 

spend anything. 

EMERGENCY RELIEF 

Government was able to make a monthly GBP17 

grant available to the poorest of the poor, in 

an effort to help ease the lockdown pressure. 

There were also some short-term tax changes 

made to help ease pressure on businesses and 

individuals. 

Over the remaining months of 2020, over 

2.2m people would lose their jobs. To give that 

some context, South Africa already had 16.6m 

unemployed. This meant that now one out of 

every three in South Africa was unemployed, 

giving it one of the highest unemployment 

rates in the world (among those who bother to 

report such stats). 

At the start of lockdown, the major banks 

(who provide 80 percent of all credit in South 

Africa) wisely offered their clients the option of 

taking a three-month payment holiday on credit 

agreements, to help ease the pressure. They 

did not, however, freeze interest calculations, 

of course, and so they came out ahead and 

had cleverly avoided many unnecessary and 

probably unsuccessful collections headaches. 

Employers tried their best to pay their 

homebound workers what they could, and 

significantly, Government issued regulations 

preventing evictions during lockdown. They 

did not stop payments or limit interest but 

this allowed consumers to prioritise buying 

essentials, and in many cases forgoing paying 

rentals. 

As restriction levels progressively dropped, 

landlords have not had an easy time evicting 

Advancing the credit profession / www.cicm.com /June 2021 / PAGE 19 

continues on page 20 >


AUTHOR – Zak Kin 

non-paying tenants. As businesses shut down 

and cash strapped consumers moved back home, 

or began to share lower cost options, there has 

been a glut in the property rental market with 

prices perhaps normalising after decades of 

constant, unrealistic increases. Landlords were 

still forced to approach their banks to themselves 

look for short term relief. 

Johannesburg, South Africa's biggest 

city and capital of Gauteng province. 

RELIEF DRIES UP 

An interesting thing happened during the initial 

highest levels of lockdown. Because people 

were unable to spend money on things they did 

not need, this enabled them to actually make 

their required monthly debt repayments. This 

lasted for several months, and then as lockdown 

dragged on and things got tough, many were able 

to take advantage of the three-month payment 

holiday options offered by the banks. 

At the same time, debt counsellors began 

a campaign to encourage consumers to make 

claims on built-in insurance on their credit 

which covered income interruption or job losses. 

Though the insurance industry fought back at 

first, claiming COVID-19 was an unforeseen 

risk, the courts and common sense eventually 

prevailed. 

Hundreds of thousands of South Africans 

were able to claim against this insurance, and 

gain temporary relief, including those already in 

debt counselling. Those who were receiving debt 

counselling found the majority of their creditors 

were also willing to offer the same type of relief 

offered to others such as short-term payment 

holidays or reductions. 

And so, the average South African consumer 

muddled their way well into the third Quarter of 

2020 before the real effects of the pandemic truly 

began to be felt, when the relief measures came 

to an end, and the impact of job losses hit home. 

SO HOW BAD IS IT? 

There are currently 27m credit users in South 

Africa. Of these, around 50 percent are behind 

on debt repayments by a month or two. More 

concerning, nearly 40 percent are more than 

three months behind on payments. This reveals 

the true extent of the challenges both consumers 

and credit providers face. This is not however a 

COVID-19 problem: these statistics have been 

pretty consistent for some years already. The 

pandemic has just been tipping the scales. 

Although already heavily indebted, it seems 

most consumers still have an appetite for 

even more credit, and a boom of new credit 

applications are being seen monthly. Due to the 

legal restrictions (not granting credit to those 

who cannot afford it) more than 60 percent 

of all applications are currently being turned 

down. This has driven many consumers into the 

welcoming arms of unregistered neighborhood 

loan sharks. 




A recent report said that there may be as 

many as one out of every 10 households 

running some sort of unregistered, illegal 

lending across the country. The police and 

National Credit Regulator (NCR) constantly 

perform raids on small loan sharks, who are 

illegally holding people’s ATM cards, social 

security grant cards or Identity documents 

as surety. 

South Africa currently finds itself, 

therefore, in the midst of an identity crisis 

with a real mixture of good and bad as 

well as just downright ugly. Positive social 

and economic factors clash with troubling 

negatives (past and present), and now 

coming to light – in a wave of revelations 

– are many really ugly scandals and dark 

hidden truths. 

THE GOOD 

South Africa is one of Africa’s economic 

powerhouses, with decent Infrastructure and 

good statistical reporting, which has helped 

to attract, and retain, foreign investment. 

The country has a fairly stable political 

landscape, strong legislation and an active 

judiciary which is currently pursuing 

punishment of those involved in high level 

corruption and graft. 

Recently there has been a small six 

percent credit extension growth, even during 

the pandemic, and despite tight regulation 

regarding lending criteria. 

The country also benefits from good, 

legislated policies for dealing with debt, 

such as the debt counselling process and 

insolvency laws. 

The last decade has 

seen the collapse of two 

major banks – one due to 

poor performance, legal 

woes with the Regulator, 

and tumbling share prices 

(African Bank). 

THE BAD 

With one third of the population unemployed 

and many younger people struggling to enter 

the formal job market, families are under 

pressure to keep up with rising inflation. Both 

consumers and Government are struggling 

to reduce their steadily increasing debt 

levels (and that was before the pandemic hit) 

resulting in international ratings agencies 

downgrading investment status. 

Half of all credit users are now several 

months behind on payments, and many are 

now turning to illegal loan sharks for further 

credit. 

THE UGLY 

Top political figures, including the former 

President and close friends, are implicated 

in a decade of corruption which seriously 

hindered, among other things, proper 

investment in power generation. Concerns 

over the true extent of corruption at the 

national electrical supplier (Eskom) are 

growing. Recent revelations have left many 

aghast. 

The last decade has seen the collapse 

of two major banks – one due to poor 

performance, legal woes with the Regulator, 

and tumbling share prices (African Bank). 

The other was due to the shocking incidence 

of rampant corruption and widespread fraud 

(VBS Mutual). In both cases the Reserve 

Bank has had to step in to save the day for 

the affected consumers. 

WHAT LIES AHEAD? 

South Africa remains a critical role player 

on the African continent and has the 

infrastructure to help carry it forward. 

Vaccine rollouts are slowly proceeding, 

and the Government continues to walk the 

tightrope of stimulating the economy while 

trying to reduce another wave of infections. 

After a decade of the coffers being bled 

dry behind the scenes, the country has now 

been able to turn off the tap of corruption 

at the highest level. These funds can now 

once again be used to build for the future. It 

has struck a massive economic blow and the 

ramifications will be felt for years to come, 

that’s the bad news. 

The good news is that the media had the 

freedom to, and politicians had the will to, 

expose and stop this level of corruption. 

This makes South Africa stand out among its 

peers. To see the judiciary take action against 

the corrupt gives insight into the stability of 

that system. 

Nelson Mandela once described the ‘walk 

to freedom’ as being a ‘long’ one. It was 

indeed a political struggle that took decades. 

The journey to true economic freedom may 

be an even longer one for South Africa, as it 

strives to overcome many challenges. Only 

time will tell if that journey will be good, bad 

or ugly. 

Zak King is a Registered Debt Counsellor 

and Editor of Debtfree Magazine 

www.debtfreedigi.co.za 


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HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION 

Pity the poor landlord 

Beleaguered landlords are eager to get their properties back. 

AUTHOR – Andrew Wilson FCICM 

AS the UK works towards a roadmap 

out of lockdown, commercial 

and residential landlords are 

dealing with the fallout from the 

Government’s eviction ban, with 

many still unable to recover their 

properties. With the court system stretched under 

the weight of the backlog, it is no surprise that 

landlords are looking for help to reclaim what is 

rightfully theirs. 

SINGLE PROPERTY LANDLORDS FACE A 

COVID CHALLENGE 

Restrictions on evicting unsatisfactory residential 

tenants who fail to pay the rent were in place 

until the end of May. For commercial landlords, 

restrictions will continue until 30 June. 

Large commercial landlords are going through 

enormous transition at the moment with the 

whole way we work and shop moving more to 

online as a result of the COVID-19 pandemic. But 

large commercial landlords are not likely to evince 

much sympathy from the world at large. 

It is the small residential landlords, particularly 

those who have been encouraged to borrow on a 

buy-to-let arrangement and only have one property, 

who are suffering, if they need their rental income 

to service their borrowing. 

In many ways the balance between landlord and 

tenant has veered towards the landlord in recent 

years. The ability of the landlord to simply serve 

notice (S21 Housing Act 1988 Notice) to gain vacant 

possession under Assured Shorthold Tenancies 

gave no real security of tenure for tenants in this 

sort of arrangement, which is undoubtedly an 

added problem for ‘generation rent’. 

The received wisdom for those investing in 

residential property is never to have one property 

– four or five are needed to spread the risk of a bad 

tenant – something that is both expensive and time 

consuming. 

However, the Government in the recent past 

encouraged buy-to-let investment and it is not 

surprising that there are many landlords within the 

one property category. The National Residential 

Landlords Association (NRLA) reported in 

December 2020 that 7 percent of renters (that 

is 840,000 people) were in arrears, with renters 

aged 18 to 24 being twice as likely to be behind as 

tenants in general. 

SO WHY CAN’T LANDLORDS WITH BAD 

TENANTS GET THEIR PROPERTIES BACK? 

Clearly, the Government does not want to see 

an increase in repossessions and possible 

homelessness during a health emergency, and so 

the legal process for getting an order for possession 

has been extended, and the ability to evict has 

been restricted once an order has been obtained. 

Initially High Court Enforcement Officers (HCEOs) 

were asked by the Lord Chancellor to halt evictions 

on a voluntary basis. A request which some of our 

more legally minded members said was beyond 

his powers. It was, but we agreed – he is our boss 

after all, and the man who authorises us. Similar 

instructions were given to County Court Bailiffs 

(CCBs). 

However, the NRLA picked a couple of hard cases 

of small landlords with tenants owing substantial 

pre-COVID rent and threatened Judicial Review. 

Not surprisingly the Lord Chancellor took the wind 

out of their sails by introducing the first of three 

Statutory Instruments (SIs) embodying his request 

to halt evictions into law. 

There are some exceptions for those with orders, 

covering trespass and anti-social behaviour, 

and the rent arrears provisions were reduced in 

severity after the first SI. But a further court order 

is needed in all cases for a Judge to agree that an 

exception should apply and that order must be 

produced to the HCEO before an eviction can take 

place. 

The rent arrears exception does not help those 

who have issued a S21 Notice, just asking for the 

property back. The original order must be by a S8 

Notice claiming that the tenant has breached the 

terms of the tenancy. 

For those starting afresh, generally six months’ 

notice has to be given before legal proceedings can 

be issued – some tenants may comply but many 

can’t, or won’t. 

The end result is that there is a considerable 

backlog in both eviction and legal proceedings, 

and this has been a deliberate step taken by 

Government, based on the health emergency. 

This whole situation was considered at the Lord 

Chancellor’s request by a commercial High Court 

Judge, when the new Notice of Eviction procedure 

(Form N54) was introduced for both HCEOs and 

CCBs in 2020, and the various processes and 

time limits were put in place to try and ease the 

transition from lockdown to normality. 

Not surprisingly, private residential landlords 

are chomping at the bit. At a recent NRLA webinar 

it was clear that there was a willingness for them 

to pay the additional cost of using an HCEO for 

eviction rather than waiting for the, often long 

delayed, services of one of the 294 CCBs in this 

country. 

HCEOs, where five main businesses now handle 

97 percent of the volume of Writs issued and are 

keen to develop their businesses’ market share, 

will, no doubt, rise to the challenge of providing 

an eviction service that only the private sector can 

offer. 

Andrew Wilson FCICM is Chairman of the High 

Court Enforcement Officers Association (HCEOA). 


COUNTRY FOCUS 

There is light in 

the darkness of the 

Rainbow Nation. 

SLEEPING GIANT 

AUTHOR – Adam Bernstein 

SOUTH Africa – just two words for a 

country that conjures up a number 

of images. Black versus white, settler 

versus indigenous, rich versus 

poor, and police versus policed. It’s 

understandable then, that some might 

think of South Africa in very simplistic terms – 

apartheid and racial segregation, the Zulu nation 

as typified by the 1964 film of the same name, and 

of course, Nelson Mandela. 

But as with other country profiles in Credit 

Management, the history is, however, much more 

than that. In fact, it reaches back 170,000 years 

and more ‘recently’ broadly incorporates Bantu 

expansion from the 4th century, the Portuguese 

from the late 1400s to the early 1600s, the Dutch 

from the middle part of the 17th century, and the 

British from the start of the 19th century. South 

Africa didn’t become fully independent until 1931. 

The nation that makes up modern South Africa 

is so different from that of just 30 years ago. And by 

all accounts, it should be a target for any exporter 

wishing to expand their market reach. 

THE COUNTRY OUTLINED 

Lying at the southern tip of continental Africa, 

South Africa is the world’s 24th largest country 

by landmass. With an area of some 1.219m sq 

km, it’s just under twice the size of Texas, and 

shares a border with six countries – Botswana, 

Mozambique, Namibia, Zimbabwe, Lesotho and 

Eswatini (formerly Swaziland). 

As might be expected of a nation with so 

many cultural influences, from native African 

to immigrant settler, South Africa has not one, 

but 11 official languages that includes English, 

Afrikaans, isiZulu, isiXhosa and Sepedi. 

And to reinforce the guaranteed failure of 

apartheid, the population, according to a South 

African government 2019 mid-year estimate of the 

population of 58.78m, 80.7 percent identifies itself 

as black African, 8.8 percent coloured, 7.9 percent 

white and 2.6 percent Indian or Asian. 

Demographically, it’s a pretty much even 

split among the sexes. The population is young 

according to 2019 data from Statista: 54 percent 

– 32.18m are under 29 years of age, and just 16 

percent, or 9.43m, are over 50 years of age. That 

leaves 17.17m or 29 percent in the middle between 

30 and 49 years of age. 

Where this data becomes interesting, and 

illustrative of population growth, is when 

comparing the 2019 mid-year estimate to data 

from the census over the years. In 1996 the 

South Africa is 

an economic 

powerhouse in 

Africa, leading 

the continent in 

industrial output 

and mineral 

production and 

generating a 

large agricultural 

production in the 

European winter. 

population stood at 40.58m, 44.81m in 2001, and 

51.77m in 2011. The country’s population is clearly 

expanding at quite a rate. 

Geographically, the population, notes the 

CIA World Factbook, is distributed primarily 

along the southern and south eastern coast and 

around Pretoria; with the east being more densely 

populated than the west. As for the largest 

urban areas, the largest is Cape Town with 3.4m 

people, which is followed by Durban with 3.1m, 

Johannesburg with 2.02m, Soweto with 1.69m, 

Pretoria with 1.61m, Port Elizabeth with 968,000, 

Pietermaritzburg with 751,000, Benomi with 

605,000, Tembisa with 512,000 and lastly, East 

London with ‘just’ 479,000. All in all, 15.2m or 

one quarter of the population lives in 10 cities. 

The World Bank estimates the rural population is 

on a downward path. In 1960 the country was 54 

percent rural, close to 50 percent in 1985 and sits 

at around 35 percent now. 

THE ECONOMY 

The South African economy is one not to be 

ignored. As a document from the Netherlands 

Enterprise Agency, Doing Business in South Africa, 

noted recently, ‘South Africa is an economic 

powerhouse in Africa, leading the continent in 

industrial output and mineral production and 

generating a large agricultural production in the 

European winter.’ 

It continues: ‘The country has abundant 

natural resources, well-developed financial, legal, 

communications, energy and transport sectors, a 

stock exchange ranked in the top 20 in the world, 

and modern infrastructure supporting efficient 

distribution of goods throughout the southern 

African region… Not only is South Africa itself an 

important emerging economy, it is also a gateway 

to other African markets.’ 

In number, South African GDP grew steadily 

in the years from 1960 where it stood at $7.57bn 

and $85.45bn in 1981. But post-apartheid, GDP 

rocketed to $416.41bn in 2011 before falling back 

to $296.35bn in 2016. It’s recovered a little since 

then. 

But challenges exist. Firstly, the country 

has had to deal with a high HIV infection rate 

for quite some time. According to Avert, in 

2018 there were 7.7m living with HIV – the 

largest number anywhere in the world – and 

19 percent of the those aged 15-49 had the 

disease. Worse, there were 240,000 new infections 

that year and 71,000 died from AIDS-related 

illnesses. 


COUNTRY FOCUS 


Cape Town is a port city on South Africa’s 

southwest coast, on a peninsula beneath the 

imposing Table Mountain. Slowly rotating 

cable cars climb to the mountain’s flat top, 

from which there are sweeping views of the 

city, the busy harbour and boats heading 

for Robben Island, the notorious prison that 

once held Nelson Mandela, which is now a 

living museum. 

Area: 400.3 km² 

Weather: 17 °C, Wind SE at 5 mph (8 km/h), 

87% Humidity 

Local time: Monday 11:16 

Population: 433,688 (2011) United Nations 

Province: Western Cape 



COUNTRY FOCUS 


Next COVID has hit South Africa hard, although 

not quite like it has India. The country saw a 

strict lockdown and the economy suffered as a 

result. The OECD reckons that the shutdowns 

could cost the country 10 percent of GDP 

although the World Bank thinks it closer to 

a seven percent decline. Its economy was 

already fragile as COVID came along, despite a 

pickup in economic activity at the start of 2020. 

The economy is expected to grow three percent 

in 2021. 

Even so, low commodity prices, reduced 

tourism, and a major slowdown in key trading 

partners is expected to hamper economic 

performance. Overall, it’s estimated that 

COVID will push two million into poverty. 

KEY SECTORS 

With the background set, it’s time to consider 

the market opportunities that exist in South 

Africa – and there are many. 

Starting with agriculture, it’s position in the 

southern hemisphere puts it in pole position 

to supply Europe and other regions with 

foods such as fruit, nuts and vegetables for 

consumption during their winter. The sector 

is highly commercialised, according to the 

Netherlands report, with some 30,000 farmers 

in the commercial supply chain who tend to be 

involved with maize, citrus, tropical fruits and 

grains. There is livestock activity, according to 

data from the US government, and this includes 

cattle, pigs, sheep, and a well-developed dairy, 

poultry and egg industry. 

The sector provides employment to some 

10 percent of the country’s workers and 

contributes around 2.6 percent to GDP. On 

imports, US data reckons that 2019 imports 

totalled $7.6bn in agricultural and food 

products, albeit a decrease of three percent 

compared to 2018. Key imports were rice, 

wheat, chicken cuts and offal, palm oil, 

whiskies, cane sugar and soybean meal. 

Opportunities therefore exist in growing 

and production along with training and skills 

and financing. 

And with climate change causing a rise 

in droughts, climate-related technology is 

becoming more important as is the need to 

secure South Africa’s water supply, especially – 

as noted earlier – the population is expanding 

and becoming more urbanised. Some haven’t 

forgotten that in 2018 Cape Town almost 

ran out of water – a point noted by National 

Geographic when it wrote that the city almost 

had to turn off the taps to millions of people. 

Water scarcity is a priority for the 

government and innovation in efficiency 

and re-use is welcomed. It’s of note that less 

than half of wastewater is treated and reused, 

infrastructure needs modernising and new 

sources such as rainwater and that found 

underground need to be found. 

According to ESi Africa, an online utilities 

journal for Africa, ‘South Africa’s water sector 

ripe with investment opportunities.’ It noted 

comment from a Greencape analyst as saying 

that some £330m of water is lost, stolen or 

incorrectly metered. The analyst reckoned that 

14m South Africans have no safe sanitation 

and this presents a significant opportunity 

with a market potential of some £2.07bn. 

Transport is another key sector for South 

Africa since, given its location, it’s a gateway 

into the continent. The country has both a 

good road and rail network along with nine 

commercial ports. The government considers 

transport a central plank of its drive to make 

the country more competitive and is investing 

around £44bn in infrastructure of which 

over £14bn has been set aside for transport, 

especially for rail freight, ports and road 

improvements. 

And then there’s health and the life sciences. 

With a comparatively inexpensive healthcare 

system it’s known that patients fly-in from 

around the world to South Africa for treatment 

often paid by insurance; Medicaltourism.com 

places South Africa 28 out of 46 destinations 

for medical tourism. 

That said, there is a defacto two-tier system 

operated where 50 percent of expenditure is 

spent on just 16 percent of the population. 

The public sector must serve more with 

proportionately less, on top of which are the 

problems of HIV and COVID as well as diseases 

such as diabetes, violence and high levels of 

child and maternal mortality. 

So, while the country is an innovator in the 

field of healthcare, there are opportunities for 

those wanting to take healthcare to the masses, 

the building of healthcare facilities, records, 

telemedicine, imaging and dispensing to name 

but a few. 

But there is a concern that the South African 

Government’s National Health Insurance 

programme will radically change how the 

private and public sectors work. 

Energy is another area that might be 

suitable for exploitation. Old coal-powered 

power stations suffer from poor maintenance 

and so the grid has often been unable to supply 

enough electricity. The country is looking at 

renewables, slowly, but with a perfect location 

for wind and sun powered systems, several 

independent firms have become active in 

generating renewable electricity. There is 

also encouragement for industry to generate 

its own power and for local authorities to 

buy electricity on the open market. In other 

words, the state monopoly – Eskom – could 

find its position weakened. Opportunities 

therefore exist to become an independent 

power producer as well as for selling to the 

producers, in renewables and for selling 

to those, including households, wanting to 

generate their own power needs. 

South Africa is endowed with abundant 

natural resources. It is the world’s largest 

producer and exporter of gold, chromium 

Most areas in South Africa 

average more than 2,500 hours of 

sunshine per year, and average 

solar-radiation levels range 

between 4.5 and 6.5kWh/m2 

in one day. This makes South 

Africa's local resource one of the 

highest in the world. The use of 

solar energy is the most readily 

accessible resource in South 

Africa. 


COUNTRY FOCUS 


From peak production of around 

1,000t in 1970, the nation's gold 

output fell to 130t in 2018, with 

South Africa now only accounting 

for c. 4 percent of the world's 

gold production. In fact, over 50 

percent of all gold reserves are 

found in South Africa, with the 

Witwatersrand Basin remaining 

the largest gold resource in the 

world. 

and platinum – 90 percent of the world’s global platinum mineral 

resources are estimated to be in South Africa’s Bushveld Complex. 

iv. No commercially exploitable deposits of petroleum have been 

found, but there are moderate quantities of natural gas located off 

the southern coast, and synthetic fuel is made from coal. According 

to Africa Mining iQ, South Africa is also the world’s third largest 

coal exporter and a huge producer of iron ore – in 2012, it overtook 

India to become the world's third-biggest iron ore supplier to China. 

SETTING UP IN BUSINESS 

When opening a business, a permit is required. Entry is initially via 

a visitor’s permit which allows temporary residence. A number of 

forms are required, but one, is a certificate issued by a Chartered 

Accountant or a Professional Accountant registered with the South 

African Institute of Professional Accountants to the effect that an 

individual has at least R5m available in cash, or at least R5m in 

cash and capital to be invested in the Republic. The detail is on 

dha.gov.za. 

Business entities take the usual forms – a public company (Ltd), 

or private company (Pty Ltd) company, a personal liability company 

(Inc), a partnership, a business trust, a sole proprietorship and an 

external company (branch of a foreign company). 

Company names along with the business are registered at the 

Companies and Intellectual Property Commission. Registration 

carries certain responsibilities, irrespective of trading status, 

including the filing of an annual return and paying an annual fee. 

Business registration processes, including tax registration with 

the South African Revenue Service (SARS), business bank account 

opening, and domain registration can be completed, without 

paper, at bizportal.gov.za. 

TAX ENVIRONMENT 

As for taxation, Corporate Income Tax applies to a resident firm’s 

worldwide income; for non-residents, it only applies to South 

African income. The rate is 28 percent, reducing to 27 percent in 

April 2022 (unless changed). Small businesses have rates banded 

from 0 to 28 percent depending on taxable income. The dividends 

tax is 20 percent. 

Income tax applies to a resident’s worldwide income; for nonresidents, 

income tax only applies to South African income. Rates 

are banded and presently range from nil to R216,200, 18 percent 

over that to R337,800 and 45 percent over income of R1,656,601. 

The standard rate of VAT is 15 percent and businesses making 

taxable supplies over R1m (around £50,000) in any 12-month period 

must register, resident or not. 

Businesses will no doubt be accustomed to running a PAYE 

system, but in South Africa, there’s also the Skills Development 

Levy to fund education for workers; the Unemployment Insurance 

Fund which both employee and employer pay one percent of the 

salary to; and the Compensation Fund to cover occupation injuries 

and illnesses. 

Lastly, another aspect to consider is Broad Based Black Economic 

Empowerment, legislation and policy that seeks to redistribute 

management, ownership and control of economic and financial 

resources in order to decrease income inequalities; it’s enforced 

through a system of preferential procurement. This may well 

determine how a business decides to act. 

IN SUMMARY 

It’s more than possible to write an encyclopaedic entry on South 

Africa and this profile only just scratches the surface. Take time 

to investigate South Africa and the possibilities and rewards will 

follow – especially once the impact of COVID is reduced. 

Adam Bernstein is a freelance business writer. 


IT’S TIME FOR 

WAYNE WHITFORD FCICM 

DIRECTOR 

+44 (0)7834 748 183 

wayne@courtenforcementservices.co.uk 

MICHAEL WHITAKER 

DIRECTOR OF BUSINESS DEVELOPMENT 

+44 (0)7866 840983 

m.whitaker@courtenforcementservices.co.uk 

FAST. FAIR. FOR YOU. 


TAKE OFF 

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CHECK IN TO SEE HOW 

WE CAN HELP YOU OR 

YOUR LEGAL TEAM 

IMPROVE YOUR 

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+44 (0)7542304328 

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IS DELIGHTED TO BECOME A 

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INTERNATIONAL 

TRADE 

Monthly round-up of the latest stories 

in global trade by Andrea Kirkby. 

The Year of the Dragon 

THE Chinese dragon is flexing its muscles. Whether over 

Taiwan or elements of its own people, China is making 

waves. 

Take the former, The Guardian says that tensions 

between Taiwan and China are ‘at their highest since the 

mid-1990s’ – its military aircraft made 380 incursions 

into Taiwan’s air space over the past year alone. And of 

the latter, some reports allege that ‘groups’ of people are 

being sold into what is effectively slavery. But China is 

doing more, and it looks like Australia is taking the brunt 

– and that might open up opportunities for others. 

According to a recent Coface report into China’s and 

Australia’s trade relationship, the bilateral relationship 

deteriorated sharply over 2020, as China imposed both 

formal and informal trade restrictions on a number 

of Australian exports, including coal, barley, beef, 

wine, cotton among others. Coface has noted growing 

concerns that China will harden its stance towards 

Australia and will possibly start targeting its services 

exports, particularly in tourism and education which 

could see two percent of Australia’s GDP at risk. 

The problems for Australia started when its Anti- 

Dumping Commission extended anti-dumping duties 

on Chinese stainless-steel sinks on 28 February 2020 

following an investigation into Chinese aluminium 

extrusions. More anti-dumping actions against Chinese 

products, such as steel followed and then came a call 

from Australia for an investigation into the origins of 

coronavirus. 

As Coface has said, the situation could hurt Australia’s 

economy as China takes more than one-third of 

Australian total exports. 

So, if I were exporting to China, I’d be looking at what 

Australia exports and targeting those things that are 

suffering restrictions. And as for Australia, I’d exercise 

caution; for while the economy has bounced back 

somewhat, there may be some bumps in the road ahead 

if the tensions with China escalate. 

OCCASIONALLY UK Export Finance 

(UKEF) publishes ‘good news’ stories 

about British exporters. And since 

there can be nothing better than a story 

relating to newborn babies, it’s great 

to talk about Cosatto, a bespoke baby 

product manufacturer that is exporting 

to Australia for the first time in 15 years. 

As the story goes, and the department 

claims, Government support has helped 

STROLL ON 

Cosatto secure a £130,000 order for 

over 1,000 prams, strollers and 

highchairs, and the Manchester-based 

business now expects sales of £14m 

this year. 

Cosatto already sells to retailers of all 

sizes in the UK, and sales to distributors 

in countries such as Japan account 

for 15 percent of its growing export 

business. However, when it came to 

arranging the insurance for a major 

deal with a distributor in Melbourne, 

their insurance broker would not cover 

the risk if the deal fell through. At risk 

of losing the contract, Cosatto turned to 

UKEF, which was able to step in with its 

export insurance policy. 

The timing is most propitious as the 

UK and Australia are close to signing a 

new free trade agreement. 


Don’t be the barn on Bitcoin 

LAST month I wrote about how Bitcoin 

could liberate the economies of some 

countries. However, as Turkey has just 

illustrated, users of cryptocurrencies and 

crypto assets should still exercise caution 

as its central bank has banned, from 30 

April, their use for the purchase goods 

and services on the basis of ‘irreparable’ 

possible damage and significant risks in 

such transactions. 

As Reuters commented, ‘legislation 

published in the Official Gazette overnight, 

the Central Bank of Turkey (CBRT) said 

cryptocurrencies and other such digital 

assets based on distributed ledger 

technology could not be used, directly or 

indirectly, as an instrument of payment.’ 

It appears that Turkey's crypto market 

had boomed recently, with investors 

hoping to both gain from Bitcoin's rally 

and shelter against inflation. Further 

demand has come because of a weaker 

Catering for the rich 

IT’S a fact that there’s always someone 

better off than you. But at the extreme end 

of the scale are the super-rich and even 

in times of economic stress they can still 

afford more than anyone else. And it is 

these people that exporters should make a 

beeline for says, Bloomberg. 

Apart from demanding more than 

adequate living space – the super-rich 

want more. But what? Well, it seems that 

tennis courts, a penthouse bedroom, wine 

cellars and swimming pools are top of the 

list. But the detail is more important than 

the headline. 

In Australia, homes need to have not just 

a tennis court, but a championship sized 

court to not only host a match or a place for 

Turkish lira and inflation pressures. 

The CBRT said that these assets were 

‘neither subject to any regulation and 

supervision mechanisms nor a central 

regulatory authority, among other security 

risks.’ Officially it’s worried about the 

destabilising influence of Bitcoin and the 

like. But clearly, it’s also worried about the 

lack of control too. As an aside, early April, 

Turkish authorities started demanding 

user information from trading platforms. 

All of this comes after President Recep 

Tayyip Erdogan managed to wipe another 

13 percent off the Turkish lira by sacking 

the central bank’s deputy governor barely 

10 days after he dismissed its governor. 

The dismissals came after the governor 

increased the interest rate to 19 percent to 

control rising inflation, despite it making 

perfect sense. 

Fundamentally, Turkey is in trouble so 

take care. 

children to play, but it’s also a great place to 

erect a marquee. 

In London, the trend is for ‘Indoor- 

Outdoor’ rooms where, according to 

Morpheus London, a residential and 

hospitality design firm, demand is rising for 

indoor spaces that have an outdoorsy vibe 

– think posh indoors garden room. One 

client wanted to maximise light coming 

in from the outside and was happy to lose 

around £150,000 of floorspace to make it 

happen. 

The point is, don’t lose sight of the 

luxury end of the markets you could serve. 

Granted it may be small in comparison to 

that which serves the masses, but it can be 

incredibly lucrative. 

Brussels opposes UK entry to the 

Lugano Convention 

BREXIT was never going to be easy, 

for the relationship was complex and 

importantly, the EU wanted to discourage 

other member states from treading the 

same path. 

Nevertheless, the UK applied to 

join the Lugano Convention which 

allows legal judgments to be enforced 

across borders, with all EU countries 

plus Norway, Switzerland and Iceland 

members of the pact. If and when the 

UK is accepted into Lugano, judgments 

would be recognised and enforced 

much more swiftly and cost effectively. 

Understandably, this would be welcome 

news for UK businesses trading in those 

areas – and likewise for EU businesses 

trading in the UK. But it appears that the 

EU is reportedly against allowing the UK 

to join the convention on the grounds 

that it is not a member of the European 

Economic Area or the European Free 

Trade Association. 

Of course, the final decision will be 

taken collectively by EU nations, with 

all countries needing to unanimously 

approve an application. There’s bound 

to be some intense lobbying since, after 

all, all sides benefit. Even so, it makes 

sense to be certain that the partners you 

trade with are both solvent and, dare I 

say it, known for being trustworthy and 

honourable. Remember – a sale isn’t a 

sale until it’s paid for. 

Government 

grant for export 

IF you’re a small firm that trades with 

others within the European Union you 

could be eligible for a grant of up to £2,000 

under a scheme recently launched by the 

Government. 

The grants are designed to help 

businesses with no more than 500 

employees and a turnover less than 

£100m who are importing or exporting 

goods between the UK and the EU or 

moving goods between Britain and 

Northern Ireland. The money can be 

used to train staff on how to complete 

customs declarations, how to manage 

customs processes, and how to use 

customs software and systems as well as 

specific import and export related aspects 

including VAT, excise and rules of origin. 

It can also be used to help firms get 

professional advice so that the business 

can meet its customs, excise, import 

VAT or safety and security declaration 

requirements. 

Everything you need to know is on GOV. 

UK under Apply for a grant to help small 

and medium-sized businesses new to 

importing or exporting. 

China’s economy grows 

WHO would have guessed? China’s 

economy has rebounded with a record 18.3 

percent growth in GDP in the first quarter 

of 2021. It seems churlish to compare that 

to the 19 percent expected by economists 

in a Reuters poll, but that’s what some have 

done. 

Other key figures released by China's 

statistics department reinforce the 

continuing rebound. But again, they need 

to be taken with a pinch of salt since 

they are set against a 2020 base and the 

pandemic. In particular, it’s reported 

that industrial output for March rose 14.1 

percent over a year ago and retail sales 

grew 34.2 percent. 

Of course, numbers can be used to 

prove anything. Nevertheless, it’s a good 

performance and should provide comfort 

for anyone exporting into China (unless 

you’re from Australia, of course). 

CURRENCY UK 

EXCHANGE RATES VISIT CURRENCYUK.CO.UK 

OR CALL 020 7738 0777 

Currency UK is authorised and regulated 

by the Financial Conduct Authority (FCA). 

HIGH LOW TREND 

GBP/EUR 1.16409 1.14716 Up 

GBP/USD 1.41988 1.38165 Up 

GBP/CHF 1.28040 1.25962 Flat 

GBP/AUD 1.82730 1.78224 Up 

GBP/CAD 1.75729 1.68962 Down 

GBP/JPY 1 54.713 149.350 Up 

This data was taken on 20th May and refers to the 

month previous to/leading up to 19th May 2021. 


OPINION 

BLIND FAITH 

Credit insurance appears to be in rude 

health, but what’s really going on? 

AUTHOR – Sean Feast FCICM 

THE market impact of COVID on the 

credit insurance sector has been 

similar to many other crises: insurers 

find their feet; adapt their pricing; 

reduce capacity in certain sectors. 

But the big difference between this 

crisis and the financial crash of 2008/2009 is that the 

market went out of their way to avoid bulk actions 

which had caused them so much harm and negative 

press a decade or more ago. 

Frederic Bourgeois, UK Country Manager for 

Coface, says there are two main reasons insurers 

have avoided bulk actions: “Firstly, the industry 

had learned from the 2008-2009 experience which 

had been painful in terms of reputation and client 

satisfaction,” he says. “And secondly, Government 

intervention (especially in the UK) in sectors 

where we had the most exposure or represented 

the greatest risk reduced the need for such drastic 

action to be taken.” 

There is no doubt that BEIS and Her Majesty’s 

Treasury were not only fast to respond, but also 

prepared to listen, rather than coming to the table 

with pre-conceived ideas, and that led to a more 

constructive dialogue and a more helpful outcome. 

Stuart Ramsden, Regional Director UK & Ireland 

at Atradius agrees. He points to the Government 

Trade Credit Reinsurance Scheme which he 

describes as a game changer for the industry: “It is 

why we worked so hard alongside other providers 

and the ABI with Government representatives on its 

development,” he says. 

“The scheme has enabled insurers to maintain 

our underwriting stance on limits which would 

otherwise have been unfeasible due to the 

pronounced economic impact caused by COVID-19, 

ensuring that the vital lifeline of non-payment 

protection has remained in place for businesses. 

The very fact Governments worldwide acted fast in 

implementing reinsurance schemes demonstrates 

how important credit insurance is in enabling trade 

and supporting businesses.” 

As standard, Stuart says Atradius continually 

reviews its risk portfolio to ensure it is providing 

the best protection for customers and this has been 

no different throughout the pandemic: “There have 

been occasions where we have reduced some levels 

of exposure; it is important to recognise that a bad 

risk is a bad risk and this has only occurred in a 

small minority of cases,” he insists. 

“Therefore, when support schemes end, we are 

not expecting a shock in cover levels. In fact, we’re 

confident there will be a smooth transition for 

customers and only anticipate our customer base 

will continue to grow. And, positively, our cover 

levels proportionate to the level of trade are higher 

now than they were pre-pandemic.” 

WORKING BLIND 

Frederic talks about ‘a few frantic weeks’ globally 

as the pandemic took hold in early 2020 and the 

industry responded. He witnessed the level of 

claims in the second half of March increase by 

100 percent compared to the first two weeks of the 

month, with no visibility or certainty as to whether 

this figure would continue to rise or stabilise. 

Indeed, this theme of ‘visibility’ is an important 

one: “At the start of the pandemic, the industry was 

effectively ‘blind’,” Frederic continues. “To maintain 

cover on the largest number of buyers across the 

broadest range of sectors we needed to have the 

most up-to-date information. 

“Accounts from 2018 or the early part of 2019 

were effectively useless, and many companies 

simply stopped trading, so we undertook a review 

of our entire portfolio manually, which as you can 

imagine put a huge strain on our underwriters and 

account management teams, but it was the right 

thing to do.” 

Globally, Coface reported c80,000 cancellations/ 

reductions in cover on Q1 2019; for the corresponding 

period Q1 2020, this number stands at c170,000. 

Predicting the future is a challenge. “All CEO’s will 

have a broad view of the direction of travel for the 

businesses they lead,” Frederic continues. 

“With COVID-19 and the current state of 

affairs, however, various developments can lead 

to completely opposite trajectories, and we have 

played out a number of scenarios from total 

Armageddon through to long-term Government 

support that would nearly eradicate defaults. How 

we would respond to these different scenarios could 

vary enormously, and that makes it very difficult to 

run an underwriting business. It means we have to 

be agile, we have to adapt, and we have to take a 

short-term view.” 

COMPLICATED DECISIONS 

Decision-making is further complicated by the 

latest data which is not necessarily a good indicator 

of any future state. Underwriting volumes and 

values appear to be in rude health and in line with 

or even better than previous good years; Coface and 

the credit insurance industry generally appears to 

be in a very good place. 

But what’s going on under the surface is perhaps 

more difficult to determine. How many businesses 

will fail once Government support is withdrawn 


OPINION 


“At the start of the pandemic, the industry 

was effectively ‘blind’, to maintain cover 

on the largest number of buyers across the 

broadest range of sectors we needed to have 

the most up-to-date information.’’ 



OPINION 


is a subject of considerable debate. Zombie 

companies are most certainly on the rise. The 

smart money suggests there is unlikely to be 

a cliff edge, but rather a long and prolonged 

period of business failures. 

Stuart Ramsden says that insolvencies will 

undoubtedly rise this year, albeit from a low 

base: “The measures introduced this year to halt 

the insolvency process and support businesses, 

has led to an artificial fall in insolvency rates in 

2020,” he explains. 

“As support schemes come to an end, we’ll see 

a spike in failures from zombie firms which have 

effectively been propped up over the last year 

while, for others, long-term successive closures 

and sustained uncertainty may just be too hard 

to sustain. Some will be restarting trade on 

empty bank accounts and are relying on a large 

cash influx – fast. But how long will they survive 

if trade levels aren’t enough to service their 

debt? The stark reality is that the coronavirus 

pandemic has been a killer for some businesses. 

But the squeeze will be uncertainty of what a 

post-pandemic economy will look like.” 

Whereas there is general consensus of 

the parlous state of various sectors – travel, 

hospitality and non-food retail especially – again 

the picture is far from uniform. 

In the non-food retail sector, for example, 

some companies have done notably well 

through the pandemic whereas others have 

failed. Frederic thinks, however, that COVID 

has probably served to accelerate the demise 

of businesses that were failing already: “There 

were no doubt many firms that already had 

underlying problems and failed to adapt their 

business models in time,” he says. “Some 

businesses are holding on but can’t hold in 

forever.” 

Stuart agrees. Not every business, he says, 

has struggled: “With a shortage of housing, for 

example, housebuilders are still flourishing. 

As construction underpins a huge part of the 

economy, it’s essential this keeps moving and 

is why we’ve seen initiatives such as the freeze 

on stamp duty and increased infrastructure 

investment. 

“While some businesses have been able 

to capitalise on the overnight change to 

consumption habits such as the surge in online 

trade, for others, such as those in hospitality 

and bricks-and-mortar retail, it has been their 

downfall. It’s fair to say some retailers were 

already challenged, particularly those with large 

store portfolios and who were behind the online 

shopping curve. With the pandemic accelerating 

e-commerce at the rate of knots, this may be the 

final nail in the coffin.” 

BOUNCING BACK 

As the economy reopens and is forecast to 

bounce back, everyone is hopeful for a swift 

recovery. However, many companies will have 

taken on sizeable debt over the last year and 

need to fight harder than most to service this 

debt going forward. 

“An optimist would look at how busy 

restaurants were when they reopened last 

summer and at the retail queues on the first 

day of reopening – but is this just a blip? Will 

consumers revert back to their former habits 

and spending patterns? Or will online shopping 

continue its reign?” Stuart continues. 

“For some, it may not be a concerted choice 

as a predicted move to hybrid home-office 

working will reduce commuters in city centres 

and their associated spend on transport, retail 

and food which brings a tangible uncertainty to 

city businesses. There’s no question consumers 

will start to spend again but it’s not certain where 

their spend will go. Will consumers actively 

choose to return to their ‘old’ ways, will habits 

creep back or will they make different choices? 

The key question now is whether businesses 

sustain these changes or can they adapt and find 

new ways of trading and flourish as a result.” 

With 2.8 million companies on risk from 

Coface worldwide, information, Frederic says, 

is now more critical than ever. It is for this 

reason that Coface recently launched InfoSure, 

an information product that enables clients to 

switch to insurance when they see fit, at preagreed 

conditions. 

When buying the Credit Opinion package, 

the client receives in parallel an insurance quote 

which Coface says it will endeavour to maintain 

over time, so this gives a level of certainty both 

on risk appetite (through the credit opinions) 

and the terms of the policy: “This can help 

companies who either have budget constraints 

or prefer to keep risk on their books, at least 

temporarily, to benefit from a close monitoring 

of their ledger,” Frederic adds. 

Atradius has been similarly active, with tools 

such as Atradius Atrium that enables businesses 

to manage their daily policy activities and 

analyse their portfolio of customers through 

a single portal, and Atradius Insights that 

gives businesses access to its online business 

intelligence platform. 

Trade credit insurance was first introduced in 

excess of a century ago to encourage businesses 

to export after World War I. Today, while the 

product has been greatly enhanced, the essence 

of credit insurance being a vital support to 

business remains. 

“Non-payment is the single biggest risk to 

any business and having protection against 

it is absolutely imperative,” Stuart concludes. 

“When you add that our offering now also lies in 

helping customers identify new opportunities, 

enter new markets, build new relationships and 

develop trade strategies as well as providing 

unrivalled expertise and information to monitor 

risk, credit insurance becomes indispensable. 

With future uncertainty making business risk 

even more acute, protection is the bedrock of 

sound trade.” 

“An optimist 

would look at how 

busy restaurants 

were when they 

reopened last 

summer and at 

the retail queues 

on the first day of 

reopening – but 

is this just a blip? 

Will consumers 

revert back to 

their former habits 

and spending 

patterns? Or will 

online shopping 

continue its 

reign?” 


Advancing the credit profession / www.cicm.com /May 2021 / PAGE 35

SECTOR FOCUS 

STOP PRESS! 

Economic trends in UK printing 

and packaging. 

AUTHOR – Tim Vine 

PRINTING and packaging have 

helped to create some of the most 

distinctive products in the world. 

Early examples of iconic brands 

include the likes of Sunlight Soap, 

Coca-Cola and Heinz. However, 

these are industries with a much more extensive 

history. English bakers were required to brand 

their bread following a law dating back to 1266 

– while producers were experimenting with 

blown glass and wooden barrels as early as the 

Roman period. 

Today, printing and packaging are significant 

parts of the economy. The UK is the world’s 

fifth largest producer of printed goods, with 

a turnover of £14bn in 2019. Meanwhile, 

packaging companies delivered annual sales of 

£11bn in 2018, employing 85,000 people. 

But these industries are deeply intertwined 

with other sectors and, as a result, the disruption 

of COVID-19 has had far-reaching consequences. 

Amidst this continuing uncertainty, it’s hugely 

valuable for companies to have data both their 

immediate suppliers and customers and the 

wider sector. That way, print and packaging 

companies can adapt and assess potential risks 

and opportunities as we gradually move from 

crisis to recovery. 

THE IMPACT OF COVID-19 

The events of 2020 had significant repercussions 

for the printing and packaging industries, with 

sales falling substantially. However, with the 

rise of ecommerce, packaging firms generally 

fared slightly better than commercial printing 

businesses. 

Nonetheless, towards the end of the year, 

more companies reporting upward trends in 

business activity than those reporting declines, 

according to the latest COVID-19 Print Business 

Indicators Survey from the NAPCO Research 

and PRINTING United Alliance. Encouragingly, 

Print and 

packaging 

businesses have 

played a key 

role in enabling 

companies to 

market and sell 

their products 

during the 

COVID-19 crisis 

– and there 

will be further 

opportunities to 

come. 

PRINTING United Alliance economists are 

holding to their projection of sales growth 

between 2.5 percent and four percent this year. 

Positively, any slowdown in the pace of 

M&As among print and packaging firms is only 

temporary. The industry is slowly recovering, 

buyers are flexible and the fundamental forces 

that drive M&A activity are still in play. 

Payment performance data can be used as an 

indicator of the financial health of businesses 

and is a useful tool to help businesses assess 

risk. Positively, our data shows that payment 

behaviour in the packaging industry is 

improving, with businesses paying their bills 

promptly increasing by 8.2 percent over the 

last four years to 31.4 percent in February 2021. 

2020 saw the largest improvement in prompt 

payments however, with 33.4 percent of bills 

paid on time in February 2020, a trend many 

sectors saw ahead of the pandemic. 

THE OUTLOOK FOR 2021 

With a return to normal business conditions insight, 

the industry is already seeing a pickup in 

activity in printing and packaging in 2021. As a 

result, print and packaging businesses that came 

through the pandemic’s first year in reasonably 

good shape are still well-positioned to grow. 

At present, working patterns and social habits 

remain focused on the home – underlining 

the importance of packaging for transporting 

goods. While hospitality remains restricted, 

labelling can provide important differentiation 

during food shopping, fuelling demand for 

innovative printing. At the same time, trends 

like increasing wine consumption at home can 

provide opportunities for companies serving 

this section of the market. 

As the economy opens up, there will be further 

opportunities across the industry and the whole 

economy. In fact, as a baseline scenario, Dun 

& Bradstreet expects the economy to rebound 


SECTOR FOCUS 

AUTHOR – Tim Vine 

by around five percent this year, offsetting 

some of the losses incurred in 2020 when 

real GDP fell by almost 10 percent. 

THE POWER OF DATA 

Print and packaging businesses have 

played a key role in enabling companies to 

market and sell their products during the 

COVID-19 crisis – and there will be further 

opportunities to come. As businesses look 

ahead to recovery and future growth, it is 

crucial to embrace data and analytics to 

take the best decisions today and create 

resilience against future crises. 

Monitoring the right credit information 

and data can help packaging businesses 

understand their total potential risk and 

identify growth opportunities across their 

account base. This can enable companies 

to better manage credit risk, monitor global 

customers and ensure that they are realising 

every opportunity for success. Armed with 

insights, print and packing companies can 

look to a brighter future – and focus on 

supporting the next innovative product 

around the corner. 

Tim Vine is Head of Credit Intelligence 

at Dun & Bradstreet. 

Tim Vine 


LEGAL MATTERS 

RASH JUDGMENT 

COVID-19, disease clauses and 

business interruption. 

AUTHOR – Peter Walker 

A 

physician once joked with me 

that if a doctor did not know 

what was wrong with a patient, 

the diagnosis was that it was due 

to a virus. This is not a joke to 

be made during the COVID-19 

pandemic, which has affected our lives so badly, 

and the law is not immune. 

That was brought home to some judges of the 

Supreme Court in FCA v Arch Insurance (UK) 

Ltd [2021] 2 WLR 123, when they considered 

COVID-19 in the context of insurance and 

business interruption. Credit managers will need 

the assurance that during the epidemic indebted 

business enterprises will have adequate financial 

resources to pay those debts should things go 

wrong. 

This was the background to the effect of 

COVID-19 and the consequent first lockdown 

causing businesses to close temporarily. The 

hospitality and entertainment sectors were 

particularly affected, although there were others. 

Affected businesses claimed on their insurance 

policies for compensation as a result of the 

business interruption. The insurers objected 

that for various reasons the situation was not 

covered in their policies. Some insurers claimed 

that the disease was not named in the policy. 

Others asserted that their policies covered local 

outbreaks only. 

There were complaints to the Financial 

Conduct Authority (the FCA). The Association of 

British Insurers suggested that at the time of the 

first lockdown there were claims amounting to as 

much as £900m. It was time for the lawyers and 

a procedure known as the Financial Markets Test 

Scheme, the first time it had been used since the 

Scheme’s introduction in 2016. Its purpose is to 

provide clarity where there were issues of general 

importance. 

The Arch Insurance case was therefore a test 

case, and Lord Hambledon and Lord Leggatt in 

their joint judgment pointed out that 370,000 

policyholders were potentially affected by the 

decision in this case. There were many types of 

insurance policies but four types of clauses. 

DISEASE CLAUSES 

The first of these were ‘disease’ clauses, 

providing cover for business interruption due to 

notifiable diseases. These were covering business 

interruption losses as a result of public authority 

interventions. There were combinations of the 

two, i.e. ‘hybrid clauses’. There were finally ‘trends 

clauses’ which quantified business losses by 

reference to the performance of the business if 

the insured peril had not occurred. 

Factors in the case were the various Government 

regulations introduced by means of various 

statutory instruments in the first lockdown 

of March 2020. They listed various categories 

of business. The Supreme Court judges were, 

however, interested particularly in contractual 

interpretation. 

They considered this in the context of disease 

clauses. A typical clause would require the insurer 

to indemnify the insured for certain losses arising 

from human infections or contagious disease, 

which required notification to a local authority. 

There would be a maximum indemnity period of 

perhaps three months. 

Some clauses would refer to any occurrence 

of the disease at the insured’s premises or within 

a radius of 25 miles. Lord Hambledon and Lord 

Leggatt concluded that an insurance claim on 

this basis would only succeed if there was an 

occurrence of COVID-19 on the claimant’s business 

premises or within that radius of 25 miles. They 

applied their reasoning to other similar clauses in 

other insurance policies. 

In another insurance policy, considered by the 

Supreme Court judges, had an exclusion clause. 

The policy did not cover loss or damage arising 

from epidemic and disease as well as many 

other events. These exclusions were included 

in a clause relating to contamination, pollution 

and ‘kindred risks’. A policyholder could not be 

expected understand this to relate to the business 

interruption provisions. 

The judges of the supreme court continued to 

consider hybrid clauses referring to the occurrence 

of a notifiable disease, but they narrowed the 

definition by reference to its consequences. 

Where, however, the clause refers to an area of 

whatever distance, the same interpretation as 

that in a disease clause applied. One insurer did 

not limit it by area, so the clause would apply 

wherever there was a notifiable disease subject to 

other restrictions in the policy. 

One of those restrictions included those 

imposed by a public authority, but the judges 

considered whether they were mandatory with 

the force of law. The Government had previously 

given instructions, but these were not enough to 

fulfil this requirement. There were now, however 

statutory instruments, but the FCA contended 

that the cover applied from before this time, so 

that the insured could claim earlier. 

LOCAL AUTHORITY POWERS 

Lord Hambledon and Lord Leggatt agreed that 

mandatory instructions clearly meant that a local 

authority had statutory or other legal powers. They 

pointed out that sometimes a public authority 


LEGAL MATTERS 

AUTHOR – Peter Walker 

gives a mandatory instruction in anticipation 

that this will be followed by legally binding 

measures, or they will result in the absence of 

compliance. The two judges gave an example 

of the closure of a restaurant by a public health 

officer, who had discovered an infestation of 

vermin. They considered that, in the context 

of COVID-19, the local authority instructions 

were sufficiently mandatory in these limited 

circumstances because of the Prime Minister’s 

earlier statements. 

Closure of a business’s premises does 

not necessarily result in the closure of the 

business itself. A retailer could continue to go 

into the shop to sell items online, but it is likely 

to lose some turnover. That closure would 

result in the loss of the retailer’s discrete part 

of the business, e.g. the closure of its shop to 

potential customers walking by. The judges 

of the Supreme Court ruled that the words 

‘inability to use’ included the insured’s discrete 

or the whole business. 

One of the insurance policies referred to 

prevention of access as a result of Government 

or local authority actions arising from an 

emergency likely to endanger life or property. 

A restaurant may, for example, may not be 

allowed to open for customers to be served at 

its tables, but it may offer take-away or take-out 

meals. This was the effect of the regulations 

issued in March 2020. Lord Hambledon 

and Lord Leggatt ruled that prevention of 

access need not be physical. They said that 

‘prevention of access’ encompassed the whole 

of the business premises as well as part of it 

dedicated to restaurant service. 

BUSINESS INTERRUPTION 

Business interruption was not restricted to the 

whole of the business. The insurance policies 

furthermore contained various examples to 

support this view. 

There was also no question that COVID-19 

was the cause of the Government’s actions, but 

the so-called ‘disease clauses’ in the policies 

raised some questions about causation, 

particularly the proximate clause. In Leyland 

Shipping Ltd v Norwich Union Fire Insurance 

Society Ltd [1918] AC 350 a ship was torpedoed, 

and such damage was not insured. It was towed 

to a harbour, but it had to be moored where 

it was at the mercy of the weather. It sank in 

the subsequent storms, but the owner could 

not claim under the storm-damage clauses 

in the policy, because according to ‘common 

sense’ the proximate cause was the torpedo, 

not the bad weather. In the current cases 

COVID-19 was the proximate cause, because it 

led to Government action resulting in business 

interruption. 

That results in a loss of business, which 

for the purpose of an insurance claim has to 

be calculated. Half a century ago or so ago I 

dealt with claims arising out of the destruction 

of some of my then-employer’s shops due to 

fires or IRA bombs. The insurers accepted 

a calculation based on the previous year’s 

turnover of the affected branches. Lord 

Hambledon and Lord Leggatt observed that a 

rate of gross profit would be applied to such 

a figure to arrive at a recoverable loss, and to 

which would be added any increased cost of 

working. 

That does not take into account any 

business trends, and insurance policies allow 

for an adjustment based on business trends 

or special circumstances in the intervening 

period. There is a complication of internet 

sales, but the correct method of calculation 

should be based on an enquiry into the 

insured’s likely performance had the insured 

peril not occurred, and that there had not 

been any underlying or originating cause. 

COVID-19 in any event had been such a cause. 

A trends’ clause should only be used to adjust 

profits on the basis of events unconnected 

with COVID-19 and the resulting lockdown. 

It otherwise could be used to remove cover 

completely, and that was not the purpose of 

the insurance policy. 

The FCA therefore won the case, and the 

insurers had to pay out on many, but not all, 

policies – it all depended on the wording of the 

relevant clauses. It is possible that the wording 

of new policies will be changed to state 

whether lockdown is included in the cover. 

At renewal time policyholders must therefore 

check that their insurance policies cover their 

needs. In recent years there have been other 

epidemics, such as SARS and ebola, albeit not 

as widespread as the current epidemic. There 

could be other future instances, where such 

cover is essential to the survival of a business. 

Peter Walker is a freelance journalist 

It sank in the 

subsequent storms, 

but the owner 

could not claim 

under the stormdamage 

clauses 

in the policy, 

because according 

to ‘common sense’ 

the proximate 

cause was the 

torpedo, not the 

bad weather. 


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Visit satago.com and start your free trial today. 

T: 020 8050 3015 

E: hello@satago.com 

W: www.satago.com 

HighRadius is a Fintech enterprise Software-as-a-Service 

(SaaS) company. Its Integrated Receivables platform 

reduces cycle times in the Order to Cash process through 

automation of receivables and payments across credit, 

e-invoicing and payment processing, cash allocation, 

dispute resolution and collections. Powered by the RivanaTM 

Artificial Intelligence Engine and Freeda Digital 

Assistant for Order to Cash teams, HighRadius enables 

more than 450 organisations to leverage machine 

learning to predict future outcomes and automate routine 

labour intensive tasks. 

T: +44 7399 406889 

E: gwyn.roberts@highradius.com 

W: www.highradius.com 

Bottomline Technologies (NASDAQ: EPAY) helps 

businesses pay and get paid. Businesses and banks 

rely on Bottomline for domestic and international 

payments, effective cash management tools, automated 

workflows for payment processing and bill review 

and state of the art fraud detection, behavioural 

analytics and regulatory compliance. Every day, we 

help our customers by making complex business 

payments simple, secure and seamless. 

T: 0870 081 8250 

E: emea-info@bottomline.com 

W: www.bottomline.com/uk 

Dun & Bradstreet Finance Solutions enable modern 

finance leaders and credit professionals to improve 

business performance through more effective risk 

management, identification of growth opportunities, 

and better integration of data and insights 

across the business. Powered by our Data Cloud, 

our solutions provide access to the world’s most 

comprehensive commercial data and insights 

supplying a continually updated view of business 

relationships that help finance and credit teams 

stay ahead of market shifts and customer changes. 

T: (0800) 001-234 

W: www.dnb.co.uk 

Key IVR provide a suite of products to assist companies 

across Europe with credit management. The 

service gives the end-user the means to make a 

payment when and how they choose. Key IVR also 

provides a state-of-the-art outbound platform 

delivering automated messages by voice and SMS. 

In a credit management environment, these services 

are used to cost-effectively contact debtors and 

connect them back into a contact centre or 

automated payment line. 

T: +44 (0) 1302 513 000 

E: sales@keyivr.com 

W: www.keyivr.com 

With 130+ years of experience, Graydon is a leading 

provider of business information, analytics, insights 

and solutions. Graydon helps its customers to make 

fast, accurate decisions, enabling them to minimise 

risk and identify fraud as well as optimise opportunities 

with their commercial relationships. Graydon 

uses 130+ international databases and the information 

of 90+ million companies. Graydon has offices in 

London, Cardiff, Amsterdam and Antwerp. Since 2016, 

Graydon has been part of Atradius, one of the world’s 

largest credit insurance companies. 

T: +44 (0)208 515 1400 

E: customerservices@graydon.co.uk 

W: www.graydon.co.uk 

Tinubu Square is a trusted source of trade credit 

intelligence for credit insurers and for corporate 

customers. The company’s B2B Credit Risk 

Intelligence solutions include the Tinubu Risk 

Management Center, a cloud-based SaaS platform; 

the Tinubu Credit Intelligence service and the 

Tinubu Risk Analyst advisory service. Over 250 

companies rely on Tinubu Square to protect their 

greatest assets: customer receivables. 

T: +44 (0)207 469 2577 / 

E: uksales@tinubu.com 

W: www.tinubu.com. 

Building on our mature and hugely successful 

product and world class support service, we are 

re-imagining our risk awareness module in 2019 to 

allow for hugely flexible automated worklists and 

advanced visibility of areas of risk. Alongside full 

integration with all credit scoring agencies (e.g. 

Creditsafe), this makes Credica a single port-of-call 

for analysis and automation. Impressive results 

and ROI are inevitable for our customers that also 

have an active input into our product development 

and evolution. 

T: 01235 856400 

E: info@credica.co.uk 

W: www.credica.co.uk 


Each of our Corporate Partners is carefully selected for 

their commitment to the profession, best practice in the 

Credit Industry and the quality of services they provide. 

We are delighted to showcase them here. 

THEY'RE WAITING TO TALK TO YOU... 

Hays Credit Management is a national specialist 

division dedicated exclusively to the recruitment of 

credit management and receivables professionals, 

at all levels, in the public and private sectors. As 

the CICM’s only Premium Corporate Partner, we 

are best placed to help all clients’ and candidates’ 

recruitment needs as well providing guidance on 

CV writing, career advice, salary bench-marking, 

marketing of vacancies, advertising and campaign 

led recruitment, competency-based interviewing, 

career and recruitment trends. 

T: 07834 260029 

E: karen.young@hays.com 

W: www.hays.co.uk/creditcontrol 

Court Enforcement Services is the market 

leading and fastest growing High Court Enforcement 

company. Since forming in 2014, we have managed 

over 100,000 High Court Writs and recovered more 

than £187 million for our clients, all debt fairly 

collected. We help lawyers and creditors across all 

sectors to recover unpaid CCJ’s sooner rather than 

later. We achieve 39 percent early engagement 

resulting in market-leading recovery rates. Our 

multi-award-winning technology provides real-time 

reporting 24/7. 

T: +44 (0)1992 663 399 

E: wayne@courtenforcementservices.co.uk 

W: courtenforcementservices.co.uk 

Shoosmiths’ highly experienced team will work 

closely with credit teams to recover commercial 

debts as quickly and cost effectively as possible. 

We have an in depth knowledge of all areas of debt 

recovery, including: 

• Pre-litigation services to effect early recovery and 

keep costs down • Litigation service • Insolvency 

• Post-litigation services including enforcement 

As a client of Shoosmiths, you will find us quick to 

relate to your goals, and adept at advising you on the 

most effective way of achieving them. 

T: 03700 86 3000 

E: paula.swain@shoosmiths.co.uk 

W: www.shoosmiths.co.uk 

Forums International has been running Credit and 

Industry Forums since 1991 covering a range of 

industry sectors and international trading. Attendance 

is for credit professionals of all levels. Our forums 

are not just meetings but communities which 

aim to prepare our members for the challenges 

ahead. Attending for the first time is free for you to 

gauge the benefits and meet the members and we 

only have pre-approved Partners, so you will never 

intentionally be sold to. 

T: +44 (0)1246 555055 

E: info@forumsinternational.co.uk 

W: www.forumsinternational.co.uk 

Data Interconnect provides ERP-agnostic AR 

software. The Corrivo platform transmits invoices 

in multiple formats using tax compliant templates 

custom-designed for your business. Corrivo expedites 

collections, reconciliation and dispute processes with 

flexible workflow tools for creating and assigning tasks, 

limits, chase paths or stops and a self-service portal 

where customers can query, comment, dispute or pay. 

Corrivo manages data securely and efficiently so that 

you can manage your customers and cashflow better. 

T: +44 (0)1367 245777 

E: sales@datainterconnect.co.uk 

W: www.datainterconnect.com 

Serrala optimizes the Universe of Payments for 

organisations seeking efficient cash visibility 

and secure financial processes. As an SAP 

Partner, Serrala supports over 3,500 companies 

worldwide. With more than 30 years of experience 

and thousands of successful customer projects, 

including solutions for the entire order-to-cash 

process, Serrala provides credit managers and 

receivables professionals with the solutions they 

need to successfully protect their business against 

credit risk exposure and bad debt loss. 

T: +44 118 207 0450 

E: contact@serrala.com 

W: www.serrala.com 

American Express® is a globally recognised 

provider of business payment solutions, providing 

flexible capabilities to help companies drive 

growth. These solutions support buyers and 

suppliers across the supply chain with working 

capital and cashflow. 

By creating an additional lever to help support 

supplier/client relationships American Express is 

proud to be an innovator in the business payments 

space. 

T: +44 (0)1273 696933 

W: www.americanexpress.com 

C2FO turns receivables into cashflow and payables 

into income, uniquely connecting buyers and 

suppliers to allow discounts in exchange for 

early payment of approved invoices. Suppliers 

access additional liquidity sources by accelerating 

payments from buyers when required in just two 

clicks, at a rate that works for them. Buyers, often 

corporates with global supply chains, benefit from 

the C2FO solution by improving gross margin while 

strengthening the financial health of supply chains 

through ethical business practices. 

T: 07799 692193 

E: anna.donadelli@c2fo.com 

W: www.c2fo.com 

Esker’s Accounts Receivable (AR) solution removes 

the all-too-common obstacles preventing today’s 

businesses from collecting receivables in a 

timely manner. From credit management to cash 

allocation, Esker automates each step of the orderto-cash 

cycle. Esker’s automated AR system helps 

companies modernise without replacing their 

core billing and collections processes. By simply 

automating what should be automated, customers 

get the post-sale experience they deserve and your 

team gets the tools they need. 

T: +44 (0)1332 548176 

E: sam.townsend@esker.co.uk 

W: www.esker.co.uk 


INTRODUCING OUR 

CORPORATE 

PARTNERS 

For further information and to discuss the 

opportunities of entering into a Corporate 

Partnership with the CICM, please contact 

corporatepartners@cicm.com 

The Company Watch platform provides risk analysis 

and data modelling tools to organisations around 

the world that rely on our ability to accurately predict 

their exposure to financial risk. Our H-Score® 

predicted 92 percent of quoted company insolvencies 

and our TextScore® accuracy rate was 93 

percent. Our scores are trusted by credit professionals 

within banks, corporates, investment houses 

and public sector bodies because, unlike other credit 

reference agencies, we are transparent and flexible 

in our approach. 

T: +44 (0)20 7043 3300 

E: info@companywatch.net 

W: www.companywatch.net 

Onguard is a specialist in credit management 

software and a market leader in innovative solutions 

for Order to Cash. Our integrated platform ensures 

an optimal connection of all processes in the Order 

to Cash chain and allows sharing of critical data. Our 

intelligent tools can seamlessly interconnect and 

offer overview and control of the payment process, 

as well as contribute to a sustainable customer relationship. 

The Onguard platform is successfully used 

for successful credit management in more than 50 

countries. 

T: 020 3868 0947 

E: lisa.bruno@onguard.com 

W: www.onguard.com 

The Atradius Collections business model is to support 

businesses and their recoveries. We are seeing a 

deterioration and increase in unpaid invoices placing 

pressures on cashflow for those businesses. Brexit is 

causing uncertainty and we are seeing a significant 

impact on the UK economy with an increase in 

insolvencies, now also impacting the continent and 

spreading. Our geographical presence is expanding 

and with a single IT platform across the globe we can 

provide greater efficiencies and effectiveness to our 

clients to recover their unpaid invoices. 

T: +44 (0)2920 824700 

W: www.atradiuscollections.com/uk/ 

Operating across seven UK offices, Menzies LLP is 

an accountancy firm delivering traditional services 

combined with strategic commercial thinking. Our 

services include: advisory, audit, corporate and 

personal tax, corporate finance, forensic accounting, 

outsourcing, wealth management and business 

recovery – the latter of which includes our specialist 

offering developed specifically for creditors. For 

more information on this, or to see how the Menzies 

Creditor Services team can assist you, please 

visit: www.menzies.co.uk/creditor-services. 

T: +44 (0)2073 875 868 - London 

T: +44 (0)2920 495 444 - Cardiff 

W: menzies.co.uk/creditor-services 

Chris Sanders Consulting – we are a different 

sort of consulting firm, made up of a network of 

independent experienced operational credit and 

collections management and invoicing professionals, 

with specialisms in cross industry best practice 

advisory, assessment, interim management, 

leadership, workshops and training to help your 

team and organisation reach their full potential in 

credit and collections management. We are proud to 

be Corporate Partners of the Chartered Institute of 

Credit Management and to manage the CICM Best 

Practice Accreditation Programme on their behalf. 

T: +44(0)7747 761641 

E: enquiries@chrissandersconsulting.com 

W: www.chrissandersconsulting.com 

CICM has launched 

critical AR Factsheets 

for EMEA countries 

Powered by 

Powered by Baker Ing, country specific factsheets have been 

provided for up-to-date information on payment performance, 

legislation, and the effects of COVID-19 and Brexit. The factsheets 

are designed for credit professionals, and they cover legal business 

forms, credit risk data, collections protocols, enforcement and 

much more. 

Credit professionals need granular knowledge of the situation 

in their clients’ territories. Whether you need an off-the-peg 

checklist for dealing with a new country, or you need on-the-spot 

information to help review risk strategies and Credit Policies, these 

insightful documents will help. 

Visit cicm.com to view country specific factsheets from, Germany, 

Italy, Czech Republic, Spain, France, UK. 

Powered by 

EU Factsheet 

COVID-19 RESPONSE 

Germany has introduced a raft of measures and programmes to help combat the 

economic impact of COVID-19 containment measures. Here we present what we 

consider to be the most significant and interesting. This section is not exhaustive. 

Loans and grants – employees: 

Three main tranches of wage subsidy have been introduced. 

The most wide-reaching is “Kurzarbeit”. This programme existed before COVID-19. 

It is a social security programme whereby the government will subsidy employees’ 

wages up to 60% (more for those with children) in order to allow their employers to 

reduce their hours (and their expenditure on wages) instead of laying them off. 

Under COVID provisions, the subsidy has been increased. From the fourth month, 

the rate is increased to 70% of flat-net renumeration for those households without 

children and 77% for those households with children. From the seventh month, it is 

increased to 80% for those households without children and 87% for those 

households with children. In September, there was a decree to make this benefit 

more flexible (e.g., reducing the minimum number of employees effected by 

working hours reduction to 10% for the business the qualify) and to extend the 

period for receiving this benefit from 12 to 24 months until 31 st December 2021. 

Freelance artists in Germany can access funds if they work for cultural institutions 

funded by the Federal Government. They will be compensated for up to 60% o fees 

from cancelled events up to €1,000 and 40% up to €2,500. 

Students can access interest-free loans of up to €650 per month for jobs lost due to 

the pandemic. 

Loans and grants – businesses: 

EU Factsheet 

GERMANY 

As well as the enhanced terms of “Kurzarbeit”, there are a variety of direct loans 

and grants available which businesses of different sizes can access. 

A grant of up to €150,000 / 80% of fixed costs in the subsidy period is available for 

businesses showing decreased sales volumes compared to the same month of the 

previous year. This Federal Government grant has been supplemented by some 

Federal States’ own grant programmes. 

BAKERING.GLOBAL CHARTERED INSTITUTE OF CREDIT MANAGEMENT 

CHARTERED 

Powered by 


EXPERT ROUNDTABLE 

Managing the road 

to recovery 

Simon Underwood and Giuseppe Parla of Menzies LLP 

joined by members of the CICM Technical Committee, 

chaired by Sue Chapple FCICM. 

UNPRECEDENTED financial 

support during the 

pandemic has helped UK 

businesses to weather exceptionally 

tough trading 

conditions and keep cash 

flowing. However, the time is nearing for 

business owners to stand on their own two 

feet. But what does a return to ‘normality’ 

really look like and what does it mean to 

businesses and customers? 

In a recent poll, more than two thirds 

(66 percent) of businesses confirmed they 

had been obliged to make changes to their 

company in response to the pandemic. 

Atul Vadher FCICM(Grad), CICM East of 

England branch chair, was not surprised: 

“I have seen fundamental changes in the 

way businesses operate, from the way they 

look at debt to their approach to trade and 

product,” he says. 

However, while changes have been 

seen across the business landscape, the 

responses of individual sectors have 

varied widely. In retail, there has been a 

focus on online retailing, while deliverybased 

models have come to underpin the 

more successful hospitality companies. 

Mark Wilkinson, Head of Income 

for Northumbrian Water Group, said, 

“Adjustments have had to be made in 

the utilities sector at times during the 

pandemic, with businesses having to 

alter their processes and stop sending 

employees to customers’ houses. And 

on a broader level, consumers have had 

to adjust to bill increases, with people 

working at home and using more water 

during the summer and heating during 

the winter.” 

EXTRAORDINARY TIMES 

In such extraordinary times, it is only 

natural that businesses have been forced 

to review their working practices but, 

as the UK begins to creep back towards 

normality, the question is whether those 

changes that businesses have been forced 

to make will continue in a post-COVID 

world. Most think that many of the 

changes witnessed in the retail, hospitality 

and utilities sectors are, to a certain 

extent, likely to remain. Online retailing 

has been a long time coming, with a longterm 

decline of the high street confirmed 

by the recent collapses of Arcadia and 

Debenhams. And while there is a yearning 

to return to restaurants, the rise of ‘ghost 

kitchens’ and food delivery models are 

providing the hospitality industry with 

plenty to ponder, as investors look to the 

greater Return On Investments that these 

models are presenting due to reduced 

overheads. 

“The return to another 

lockdown, or a shift 

in the Government’s 

economic policies, 

means the ability to 

‘flex’ to a newfound 

environment is critical” 

What is interesting is that the businesses 

that have succeeded during the pandemic 

have shared one common factor: 

flexibility. Simon Underwood, Partner 

and Licensed Insolvency Practitioner at 

Menzies, believes such ‘flexibility’ remains 

vital to a sustained economic recovery: 

“The return to another lockdown, or a shift 

in the Government’s economic policies, 

means the ability to ‘flex’ to a newfound 

environment is critical,” he says. 

But there are other measures, he says, 

that can help ensure a smooth return to 

‘normal’: “Businesses must preserve cash 

where possible and strengthen the balance 

sheet,” he explains. “No-one knows what is 

around the corner, and businesses need 

to make sure they don’t find themselves 

in the position that so many were in 12 

months ago, with no income and no 

cash to fall back on.” Giuseppe Parla, 

Senior Manager and Licensed Insolvency 

Practitioner at Menzies, agrees: “It is 

important that businesses seek advice as 

soon as possible from credit professionals, 

rather than relying on the State and 

watching Government support run out,” 

he adds. 

STRENGTHENING RELATIONSHIPS 

Sue Chapple FCICM, CEO of the CICM, 

says that one upside to the pandemic has 

been a strengthening of the relationship 

between credit managers and their clients, 

as well as improving their own visibility 

in the businesses in which they work: 

“COVID has brought home the importance 

of really getting to know your clients and 

understanding their credit risks. This is 

something that has declined in recent 

years with the rise of technological 

solutions, and an element that the industry 

must revive if it is to thrive in the difficult 

months and years that lie ahead.” 

Looking to the future, Simon 

Underwood expects to see the credit 

sector heating up in the coming months, 

with the end of the moratorium on debts 

as well as the cessation of the furlough 

scheme and other Government support: 

“It’s remarkable in many ways that the 

country has avoided a greater financial 

crisis, but the brunt of the Chancellor’s 

measures will fall on the pockets of the 

taxpayer,” he says. 

“This leaves us with several questions: 

how will this shortfall be addressed in 

the short and longer-terms? And how will 

the credit sector continue to provide the 

personal, relationship-centric approach 

that has seen it largely weather the storm 

that the last 12 months has brought?” 

These questions will remain 

unanswered for the next few months 

at least, though in the meantime there 

are valuable lessons for businesses and 

credit professionals to take from the 

COVID-19 crisis that should help alleviate 

some of the anxieties towards returning to 

normality. 

“COVID has brought home the importance of really getting to know your clients 

and understanding their credit risks. This is something that has declined in recent 

years with the rise of technological solutions.’’ 


PAYMENT TRENDS 

Life is a Rollercoaster 

The latest late payment statistics highlight 

further unpredictability. 

AUTHOR – Rob Howard 

LAST month’s late payment statistics did not make 

for pleasant reading, with some hefty increases 

across both regions and sectors. The latest figures 

again show the unpredictable nature of payment 

performance and economic climate, with more ups 

and downs than a rollercoaster. The average Days 

Beyond Terms (DBT) across regions decreased by 2.4 days; there 

was no change in the average sector figure. 

REGIONAL SPOTLIGHT 

The regional standings show some improvements, with six of the 

11 regions making reductions to payment terms. 

The West Midlands made the biggest move, reducing its DBT 

by a massive 9.4 days and taking its overall DBT to 16.4, making 

it the new best performing region. Not far behind is the North 

West, now with an overall DBT of 16.7 following an impressive 

reduction of 7.7 days to its payment terms. Scotland (-6.7 days), 

East Anglia (-5.4 days) and the South West (-4.8 days) also all made 

moves in the right direction. 

Moving in the wrong direction is Yorkshire and Humberside, 

now the worst performing region by some distance with an 

overall DBT of 29.5 days following a sharp increase of 6.8 days to 

its payment terms. 

SECTOR SPOTLIGHT 

The latest sector figures are a mixed bag, with a number of 

industries showing encouraging signs of improvement by 

reducing their payment terms, while others continue to struggle, 

with payments getting later and later. 

The biggest improvement came from the Business from Home 

sector, reducing its payment terms by a huge 12 days. Another 

sector making strides in the right direction is the Manufacturing 

sector, a reduction of 10.1 days means it is now the best 

performing sector overall with a DBT of 12.2 days. Elsewhere, 

the Real Estate (-8.8 days), Financial and Insurance (-7.7 days), 

Construction (-7.1 days) and Mining and Quarrying sectors (-6.6 

days) all made notable improvements. 

At the other end of the scale, it is no surprise to see the 

Hospitality sector continuing to struggle as the worst performing 

sector. A further increase of seven days means its overall DBT 

now stands at 44.3 days, with many businesses struggling to 

survive. International Bodies are also feeling the pinch, its DBT 

also increased by a further seven days, making it the second 

worst performing sector with overall payment terms of 33.4 days. 

Official figures from the Office of National Statistics (ONS) 

out in May exceeded economists’ expectations, with UK GDP 

rising by 2.1 percent in March – the fastest monthly growth rate 

since August 2020. The figures were welcomed by the Chancellor 

and commentators reporting that the UK’s economic resilience 

gives us a brighter outlook for the summer. While these signs 

of growth are encouraging businesses in all sectors still need to 

exercise caution. Understanding the payment behaviour of their 

customers will be crucial to mitigating a squeeze on cash flow 

from late payment as they navigate their way through the fallout 

of the pandemic. 

By Rob Howard 

The latest sector figures are a 

mixed bag, with a number of 

industries showing encouraging 

signs of improvement by 

reducing their payment terms. 


STATISTICS 

Data supplied by the Creditsafe Group 

AUTHOR – Rob Howard 

Top Five Prompter Payers 

Region April 21 Change from March 21 

West Midlands 16.4 -9.4 

North West 16.7 -7.7 

South West 17.1 -4.8 

Scotland 17.7 -6.7 

Wales 18.6 0.1 

Bottom Five Poorest Payers 

Region April 21 Change from March 21 

Yorkshire and Humberside 29.5 6.8 

East Anglia 21.3 -5.4 

East Midlands 21.1 0 

South East 20 -2.3 

London 19.8 0.7 

Top Five Prompter Payers 

Sector April 21 Change from March 21 

Manufacturing 12.2 -10.1 

Wholesale and retail trade 13 -2.1 

Education 13.1 -0.5 

Transportation and Storage 15.3 -1.2 

IT and Comms 16.9 -4.4 

Bottom Five Poorest Payers 

Sector April 21 Change from March 21 

Hospitality 44.3 7 

International Bodies 33.4 7 

Other Service 31.9 4.8 

Entertainment 30.1 -3.9 

Business Admin & Support 26.2 -0.5 

Getting Better 

Business from Home -12 

Manufacturing -10.1 

Real Estate -8.8 

Financial and Insurance -7.7 

Construction -7.1 

Mining and Quarrying -6.6 

Agriculture, Forestry and Fishing -5.1 

IT and Comms -4.4 

Professional and Scientific -4 

Entertainment -3.9 

Wholesale and retail trade -2.1 

Transportation and Storage -1.2 

Business Admin & Support -0.5 

Education -0.5 

Dormant -0.4 

Getting Worse 

Hospitality 7 

International Bodies 7 

Water & Waste 6.8 

SCOTLAND 

-6.7 DBT 

Other Service 4.8 

Public Administration 4.1 

Health & Social 2.4 

NORTHERN 

IRELAND 

2.1 DBT 

SOUTH 

WEST 

-4.8 DBT 

WALES 

0.1 DBT 

NORTH 

WEST 

-7.7 DBT 

WEST 

MIDLANDS 

-9.4 DBT 

YORKSHIRE & 

HUMBERSIDE 

6.8 DBT 

EAST 

MIDLANDS 

0 DBT 

LONDON 

0.7 DBT 

SOUTH 

EAST 

-2.3 DBT 

EAST 

ANGLIA 

-5.4 DBT 

Energy Supply 0.8 

Region 

Getting Better – Getting Worse 

-9.4 

-7.7 

-6.7 

-5.4 

-4.8 

-2.3 

0 

6.8 

2.1 

0.7 

0.1 

West Midlands 

North West 

Scotland 

East Anglia 

South West 

South East 

East Midlands 

Yorkshire and Humberside 

Northern Ireland 

London 

Wales 


EDUCATION & MARKETING 

CICM Virtual Training is an ‘access anywhere’ range of interactive, online training 

courses, designed to give you the skills and tools you need to thrive in your credit 

work. Each training course offers high quality approaches to credit-related topics, and 

practical skills that can be used in your workplace. A highly qualified trainer, with an 

array of credit management experience, will guide you through the subject to give you 

practical skills, improved results and greater confidence. 

These are pre-recorded training 

sessions that you can access 

anywhere and at anytime. Short, 

sharp and to the point – these suit 

you if you are short on time, or need 

a quick introduction or update on a 

subject. 

These are live, interactive sessions, 

delivered virtually by a qualified trainer, 

experienced in the subject. Through 

a series of tasks and discussions, you 

will access a hands-on training session 

that offers the best practice approach to 

essential credit and debt skills. 

NEXT VIRTUAL 

WORKSHOPS 

ADVANCED SKILLS IN COLLECTIONS : 23 June at 09:30 

COLLECTION SKILLS FOR THE NEW CREDIT FUTURE : 3 June at 18:30 

BEST PRACTICE SKILLS TO ASSESS CREDIT RISK : 23 June at 16:00 

MEET YOUR TRAINER: Jules Eames FCICM(Grad); PGCE, is a qualified teacher, 

trainer and credit manager with experience in credit and debt specialisms across the 

O2C spectrum and ancillary businesses, in consumer, B2B and export markets. 

INTRODUCTORY PRICE £90.00+VAT per person. 

For group training, please contact info@cicm.com 



The pursuit of knowledge 

Laura Martin ACICM is a voice for women in the 

industry, and a champion of Lego in her household. 

AUTHOR – Max Tyson 

IT would not be too much of a 

stretch to say that Laura Martin’s 

relatively young career has been 

one full of variety. Starting off 

as a HR assistant, she worked 

in customer services for Lego, 

before moving into debt collection. For 

the last three years, Laura has worked 

for Credit Limits International, which 

sees her deal with the debts of a range of 

clients, from small, family-run businesses 

to global companies. 

Laura also has another role. One that 

is more stressful, tiring and, dare I say, 

perhaps more rewarding. As a mother 

of three she is used to juggling multiple 

responsibilities and constantly pushing 

herself to the limit. And while her little 

ones are yet to adjust to the deficit of 

building toys and brick sets in their 

stockings come Christmas time, she is 

confident that she’s found her calling: “I 

feel so lucky to be where I am today. I’m in 

a profession that I love and one in which 

I’m inspired to learn.” 

This desire for knowledge and 

development sees her find time where 

others might not. She could be forgiven 

for wanting to put her feet up after a 

long day in her two full time jobs, but it 

is easy to see a fire in Laura, so it seems 

only natural that she has been drawn to 

the CICM. 

A NATURAL PARTNERSHIP 

Since joining the Institute, Laura has 

benefitted from the learning tools and 

courses on offer. Having completed her 

Level 3 qualification 18 months ago, she 

is now undertaking her Level 5 Diploma 

in Credit Management because, as she 

says, there is more she wants to learn: 

“From advanced credit risk management 

to process improvements, the course 

is providing information on key credit 

management areas and opening my 

knowledge up to areas of the sector I 

haven’t touched before.” 

The course has, life and kids aside, 

brought its challenges. The focus is 

predominantly on credit, yet Laura’s job 

sees her focus on collections: “I have 

certainly felt somewhat thrown in at 

the deep end. Strategic planning and 

advanced credit risk management, for 

example, are parts of the sector I haven’t 

been exposed to before. 

“But in the same breath, the course is 

giving me a broader overview of the whole 

industry and the knowledge I am gaining 

will only be of benefit to myself and my 

customers.” 

A further positive can be gleaned from 

the structure of the course. While there are 

compulsory modules that each candidate 

sits, there is room for flexibility within 

these. Within the advanced credit risk 

management module, for example, Laura 

is focusing on the new client assessment 

angle, as this is most relevant to her line 

of work. 

Laura Martin ACICM is Debt Collection 

Manager Scandinavia & UK at Credit Limits 

International Ltd. 

APPLYING THE THEORY 

Perhaps the most valuable aspect of the 

qualification is its utility and relevance for 

credit professionals. This ability to tailor 

modules around your interests means 

that students are able to learn theories 

and practice ideas that they can apply to 

their work. 

Laura makes this point about the Process 

Improvement module: “This element 

of the course focuses on monitoring, 

reviewing and improving business 

processes. Learning the fundamentals of 

the Lean Six Sigma, Streamlined Process 

Improvement (SPI) and Continuous 

Improvement methodologies has allowed 

me to look at collections within the 

companies on my portfolio and identify 

the areas which are adding value and 

remove areas that are not adding value 

through leaning, cleaning and greening.” 

BENEFITS BEYOND THE COURSE 

As a member of the CICM, members are 

able to access resources and learning 

materials, irrespective of whether or not 

they’re undertaking official qualifications. 

And as well as up-to-date information, 

members share best practice, allowing 

collective benefits to follow. 

For Laura, this meant that she was able 

to keep on top of the state of many sectors 

from the start of the pandemic, enabling 

her to categorise her cases based on the 

likelihood of receiving repayment. An 

early awareness of the hardships faced 

by the hospitality and retail sectors saw 

her put them to one side in the early 

stages, and only begin pursuing debts in 

the summer months, once business had 

begun to pick up again. 

“It’s this knowledge,” she says, “that 

is of such value to me as a collections 

professional. The CICM is able to provide 

in-depth information on the credit 

industry, as well as the many sectors it 

touches, and this insight provides an 

invaluable tool when it comes to dealing 

with customers.” 

A VOICE FOR WOMEN 

It’s difficult not to feel a real sense of 

admiration for Laura. As a mother, she 

wants to do right by her children; as a 

professional she wants to do the best 

possible job for her clients; and as a 

woman she wants to provide a voice in 

what appears to still be a male-dominated 

industry. She puts it far better than I ever 

could: “In debt collection there are two 

major misconceptions: the first is that 

we are nasty people who hound others on 

the phone, and the other is that it is no 

industry for women. 

“On the first point, it is great to see 

headway being made in eroding this 

misconception, with groups like the CICM 

and Credit Services Association (CSA) 

making real strides in highlighting the 

professionalism and personalism shown 

by the vast majority of collection agencies. 

“And on the second, I find such great 

pleasure in the work I do and my only 

wish is that more could be done to inspire 

women to join this great industry.” 

Max Tyson is a writer on the 

Credit Management editorial team. 



Booking your 

exams has never 

been easier 

Head over to our new exam pages 

for all the information you need to prepare, 

book and take your CICM exams 

www.cicm.com/exams/

MARKETING & EDUCATION 

Virtual Classes 

for 2021 

Get CICM qualified by attending 

Virtual Classes: The best of both worlds. 

Home study does not mean you have to study alone. Our ‘gold standard’ 

distance learning offer, our Virtual Classes have the greatest success 

rate of all our packages. Your study will be supported and led by one of 

our experienced CICM Tutors via a series of virtual classes and activities, 

which are interactive, challenging and fun. 

LEVEL 

2 

Commercial 

LEVEL 

3 

Debt 

Telephone – 30 June 

Consumer Collections – 20 September 

Recovery – 29 June 

Credit Risk open – 29 June 

Credit Management (TCE) – 6 September 

Business Environment – 6 September 

Business Law – 6 September 

Advanced Collections – 20 September 

Advanced Business Comms – 4 October 

LEVEL 

5 

Strategic 

Planning open – 23 August 

Compliance with legal, regulatory, ethical and social Requirements 

and open – 23 August 

Process Improvement open – 23 August 

Book your place today, visit www.cicm.com 

or contact a member of our team on 01780 722900 


NEW AND UPGRADED MEMBERS 

Do you know someone who would benefit from CICM membership? Or have 

you considered applying to upgrade your membership? See our website 

www.cicm.com/membership-types for more details, or call us on 01780 722903 

Member 

Kay Baker 

Fiona Brown 

Janisha Patel 

Karen Sanderson 

Peter Staines 

Anthony Barrow 

Victoria Beach 

Jonathan Fancourt 

Corrie Norris 

Member by exam 

Amanda Grindle 

Studying Member 

Chris Ardern 

Khadiza Begum 

George Bou Abboud 

Alan Callaghan 

Alexander Chapman 

Angela Coll 

Andrew Cozens 

Habeeb Daji 

Conor David 

Ahmed Daya 

Angelo De Cicco 

Joanna Dixon 

Louis Ellis 

Matthew Everley 

Jennifer Forsyth 

Lisa Girt 

Julie Goold 

Connor Hainey 

Svetlana Harris 

Hayley Hilton 

Robert Hughes 

Jaye Hunt 

Mohammed Ifraz 

David Jarvis 

Mathana Jathurshan 

Rachael Jones 

Zita Joseph 

Paul Loader 

Barbara McLauchlan 

Logan McWilliams 

Charles Mensah 

Jack Mills 

Maithabeleng Mphane 

Nandagopal Narayanankutty 

Marc Newton 

Sandra Piteira 

Grant Raggett 

Anita Rooney 

Alison Rowley-Smith 

MD Mozibur Rahaman Sarker 

Seetharam Seethamohan 

Prashant Sharma 

Pamela Sibanda 

Salim Tabboush 

Tom Fifoot 

Piers Gooding 

Derrick Kankam-Hoppe 

John McNeill 

Tendesayi Vengesayi 

Affiliate 

Kinga Kacaniova 

Priya Malhotra 

Carol Brennan 

Jane Caldwell 

Claire Rimmer 

Sandra Rosario-Ochtaras 

Hayley Wright 

Associate 

Rose Anne Calleja Mark Fyfe Adewale Owoseni Eoghan Rodgers 

Fellow 

Margaret Dunsmore 

Congratulations to our current members who have upgraded their membership 

Upgraded member 

Gail Armstrong FCICM 

Michelle Atkinson FCICM 

Nick Neal FCICM(Grad) 

John Rea FCICM 

Hardev Tumber FCICM 

Jason Sedgwick FCICM 

Anthony Barrow MCICM 

Nicky Crossey MCICM 

Jonathan Fancourt MCICM 

Yvette Gray MCICM 

Rebecca Wilkins MCICM 

Luke Peacock ACICM 

Alexander Dowson ACICM 

Charlotte Gregory ACICM 

AWARDING BODY 

Congratulations to the following, who successfully achieved Diplomas 

Level 3 Diploma in Credit & Collections (ACICM) 

NAME 

Katharyne Brindle 

Henry Green 

Ivelin Iliev 

Eoghan Rodgers 

Ian Armstrong 

WE WANT YOUR BRANCH NEWS! 

Get in touch with the CICM by emailing branches@cicm.com with your branch news and event reports. 

Please only send up to 400 words and any images need to be high resolution to be printable, so 1MB plus. 


PANEL BASHER 

Consigned to the bin? 

Consignment stock arrangements are 

worth a second look. 

How do 

consignment 

stock 

arrangements 

work, and are 

they worth the 

bother? 

NIGEL FIELDS FCICM 

Panellist 

A career in credit management spanning 

more than 30 years, Nigel Fields FCICM is 

now Senior Director, Global Process Owner 

OTC at NBC Universal International. Nigel 

spent 20 years working for Twentieth Century 

Fox International Film Corp. starting out in 

its UK business as Credit Manager and rising 

to Executive Director for Credit, responsible 

for Order to Cash (OTC) across Fox’s entire 

international business portfolio. Prior to Fox, 

he worked as the Credit Manager at Hornby 

Hobbies and a Credit Controller for GEC. Nigel 

says: “I attribute much of my career success to 

the CICM community where I am always able 

to draw upon knowledge and skills from the 

extensive array of members and partners.” 

CONSIGNMENT stock 

agreements have become 

increasingly popular in 

recent years. It’s basically a 

supply chain management 

strategy in which retailers 

hold products from suppliers in store for 

sale without paying for the products until 

purchased by the end consumers. 

We can all see our retail highstreets 

in decline and disappearing at a rapid 

pace and yet, as we make more and more 

on-line purchases. I still feel a sense of 

sorrow about losing those stores that I 

previously enjoyed visiting and browsing 

products that would often lead me to make 

purchases on impulse. One lifeline might 

just be the ‘consignment stock’ agreement 

which allows the retailer to hold a good 

range of products without them having 

their money tied up in stock. It also allows 

for suppliers to have a better range with 

good product mixes on sale in stores that 

can include products that the retailer 

might not otherwise held in their normal 

product ranges. It’s a good balance that 

ensures that the retailers’ money is not 

tied up in stock but is still able to offer for 

sale a wide, plentiful range of products 

from suppliers that would otherwise have 

resulted in lost trade and sales. 

The model has some obvious 

advantages but does also come with some 

disadvantages too. I have listed my key 

thoughts on this. 

ADVANTAGES FOR THE SUPPLIER 

• A good marketing tool ensuring a wide 

range of products in stores. 

• Includes products that retailers may not 

normally have held. 

• Better in store placing of products on 

sale. 

• Maximises the potential retail sales. 

• Provides insights and a true 

understanding of consumer habits. 

• Reduces stock inventory and warehouse 

costs. 

• The supplier has clear title and 

ownership of all unsold products. 

• Payment terms can be shortened. 

• Better visibility of what is and what is 

not selling. 

DISADVANTAGES FOR THE SUPPLIER 

• Increased shipping costs. 

• Risk of loss or damage of the product on 

sale. 

• Reliance on retailers to correctly track 

and report sales. 

• Reliance on retailers to maximise 

product exposure. 

• Tying up the Supplier’s capital until 

merchandise is sold to consumers. 

• Reliance on the retailer’s financial 

stability and their ability to transfer 

funds after selling. 

• Systems requirements in order to 

manage the process. 

ADVANTAGES FOR THE RETAILER 

• Less cash tied up in stock. 

• Stocking a wider range of products that 

can bring increased footfall and sales. 

• Only pay for what is sold. 

• Supplier will help to maximise sales. 

• Better margins as the supplier is more 

likely to price adjust for promotions etc. 

DISADVANTAGES FOR THE RETAILER 

• Shelf space especially, if consigned 

products aren't sold. 

• Different process necessary to manage 

inventory. 

• Possible loss of focus on overall product 

ranges. 

• Generally shorter payment terms. 

Consignment agreements will largely 

depend upon individual circumstances. 

It can be a great way to see what products 

are really selling and is likely to get you 

better retail shelf space. Overall, I think it 

is a really good thing and, from experience, 

if managed properly, the advantages 

outweigh the disadvantages all round. 

Let’s face it, the bricks and mortar physical 

retailers have a far more expensive model 

than on-line retailers and it is something 

that can certainly help the balance a little. 

If you’d like to join our panel of experts, or if 

you have a question to ask, contact the editor 

at sfeast@gravityglobal.com 


@CreditServicesA 

UKCCC 

2021 

CROWNE PLAZA 

NEWCASTLE UPON TYNE 


AWARDS 

2021

GET TUNED IN 

CICM is proud to 

introduce our new Podcasts 

how they can 

benefit your 

company 

Listen in to the 

conversations of the 

industry experts, 

wherever you are. 

Tune in now! 

GET TUNED IN 


HR MATTERS 

Location, Location, Location 

Equal pay, the value of work, and the 

right to work in the UK. 

AUTHOR – Gareth Edwards 

HOW should employees 

in retail environments 

compare their roles for 

equal pay purposes? That 

question was answered 

by the Supreme Court in 

Asda Stores Ltd v Brierley and others. 

The Court ruled that Asda employees 

in retail stores can compare themselves 

to those employees working in the 

supermarket's distribution depots under 

the Equal Pay Act 1970 and Equality 

Act 2010, despite working at different 

locations. 

In the case, more than 7,000 – 

predominantly female – staff employed 

in Asda retail stores brought an equal 

pay claim in the Employment Tribunal, 

seeking to use higher-paid, predominately 

male, Asda distribution depot workers as 

their comparators. 

Asda said that distribution staff are not 

appropriate comparators as employees 

working on the shop floor are employed at 

different establishments and on different, 

although not materially different, terms 

and conditions of employment. 

The Supreme Court disagreed and 

confirmed that, where there are 

no comparators at the claimant’s 

establishment, the 'North hypothetical' 

principle (Dumfries and Galloway 

Council v North) can be applied to 

consider whether the comparators would 

have been employed on similar terms to 

those they are currently on at their own 

establishment, had they been employed 

at the same site as the claimant. 

As a result, despite working in entirely 

different establishments, retail store 

employees can use distribution workers 

as their comparators to assess whether 

the latter would have been employed 

on similar terms to those currently 

at distribution depots had they been 

employed in supermarket retail stores. 

However, retail workers must still 

show that they have performed work of 

equal value. In response, Asda is likely to 

argue that a difference in pay is justified 

because the value of the claimants and 

comparators work when compared is 

not of equal value. The supermarket 

may be able to use the ‘genuine material 

factor’ defence if there is a valid nondiscriminatory 

reason for the difference 

in pay. 

The case was referred back to the 

Employment Tribunal for an evaluation 

of whether the work of the claimants and 

comparators is of equal value and whether 

a ‘genuine material factor’ defence would 

be permissible. 

The Supreme Court’s ruling shows that 

the comparator in equal pay claims does 

not have to be employed on identical or 

the same terms as the claimant. Employers 

still have the opportunity to defend equal 

pay claims, by showing that the claimant's 

and comparator’s work is not of equal 

value, or by using the ‘genuine material 

factor’ defence where an employee is paid 

less than a comparator of the opposite 

sex performing equal work for a nondiscriminatory 

reason. 

THE Home Office has updated, An 

employers’ guide to right to work checks, 

which provides guidance on the right to 

work for EU citizens starting work in the 

UK between 1 January and 30 June 2021. 

Until the end of this grace period, 

employers can still rely on verifying an 

EEA or Swiss national’s right to remain 

in the UK by checking their passport 

or national ID card as evidence of their 

identity and right to work in the UK. 

The guidance confirms that there is 

no obligation to apply different criteria 

to those EU citizens who arrived in the 

UK before 11pm on 31 December 2020 in 

comparison to those who arrived after 

that time under UK immigration laws. 

The guidance also confirmed that no 

mandatory requirement for employers 

to undertake retrospective checks on EU 

citizens employed before 30 June 2021 is 

to be applied during the grace period. 

This means that an employer will 

continue to benefit from protection 

against a civil penalty if their employee 

is working illegally in the UK as long as 

a right to work check is undertaken in 

line with right to work legislation and 

guidance, and the employer does not 

Guidance on right to work check 

know or have reasonable cause to believe 

the employee has no right to work in the 

UK. 

For those prospective UK employees 

who already have status under the EU 

Settlement Scheme, or under the pointsbased 

immigration system, employers 

may encourage them to evidence their 

right to work using the Home Office 

online service. Employers are not allowed 

to insist that EU citizens use the online 

service, nor can they discriminate against 

those who still want to use their passport 

or national identity card as evidence 

of their right to work during the grace 

period. 

However, from 1 July 2021, all EU 

citizens (other than Irish nationals) will 

need to provide evidence of immigration 

status using the online service to 

demonstrate they have a right to work in 

the UK. 

Gareth Edwards is a partner in the 

employment team at VWV 

www.gedwards@vwv.co.uk 



TAKE CONTROL OF 

YOUR CREDIT CAREER 

CREDIT CONTROLLER 

London City, £35,000-£45,000 per annum 

The successful candidate will be working for a growing law 

firm that opened as a family business 30 years ago and is now 

a successful LLP specialising in property and construction law. 

This is a great opportunity to join the business as a revenue 

controller and take ownership of the credit control, WIP 

management and billing. You will be working in a team of eight 

and the ideal candidate will have experience in a similar role 

previously and be confident taking full responsibility of these 

duties. Ref: 3974325 

Contact Rebecca Hutton on 020 3465 0020 

or email rebecca.hutton@hays.com 

REGIONAL CREDIT CONTROL TEAM LEAD 

Belfast, c£35,000 

A senior credit opportunity, leading a regional credit and 

collections team within a global business has become available. 

You will co-ordinate the collections and cash management 

strategy for the region; oversee key client accounts; manage 

the day-to-day activities of the collections staff, which includes 

establishing performance goals. You will build strong relationships 

with senior stakeholders across the business and externally, with 

a focus on big picture and long-term relationship building. 

Ref: 3972926 

Contact Nicola McCallum on 07720 617714 

or email nicola.mccallum@hays.com 

ACCOUNTS RECEIVABLE SUPERVISOR 

Uxbridge, up to £37,000 per annum + 5% annual bonus 

Working for a global retail entertainment business you will primarily 

be responsible for supervision of two accounts receivable clerks, 

ensuring timely and correct allocation of payments. You will also 

oversee the administration of intercompany and sundry receivables 

accounts. This is a progressive role where you will get involved in 

major projects, SOX controls and implementation of new processes 

after a recent key acquisition. Experience with SAP and solid 

reporting skills on excel is essential. Ref: 3977144 

Contact Mark Ordoña on 07565 800574 

or email mark.ordona@hays.com 

CREDIT CONTROLLER 

London City (currently remote), up to £28,000 

You will be working for a FTSE250 media subscriptions business 

and will manage a ledger of circa 200-300 live accounts, with 

a value of £4M-£5M per month. This role will focus primarily 

on chasing ‘clean debt’, and you will be dealing with multiple 

currencies and international clients. You will utilise strong credit 

control and negotiation skills, NetSuite system experience is 

advantageous but not essential. This role is initially being offered 

on a two-month contract basis but is likely to extend further. 

Currently fully remote with laptop provided, flexible working 

options will be available longer term. Ref: 3979035 

Contact Sheyda Ozturk on 020 3465 0020 

or email sheyda.ozturk@hays.com 

hays.co.uk/creditcontrol 


TRAIN FOR THE 

YEAR AHEAD 

My Learning – free skills 

training from Hays 

To find out more visit 

hays.co.uk/mylearning 

SALES LEDGER & CREDIT CONTROL ASSISTANT 

Bishop Auckland, County Durham, £24,000 

A one-off opportunity to join a family owned “success story” 

has become available. You will be responsible for all aspects 

of sales ledger and credit control, which includes maintaining 

databases, chasing debt and nurturing established relationships 

with customers. You will be the key point of contact for all 

customer queries and work with the sales reps and production 

teams. Proficient Excel skills and knowledge of Sage 200 is an 

advantage. Ref: 3981702 

Contact Catherine Duke on 07595 073328 

or email catherine.duke@hays.com 

CREDIT CONTROLLER (GERMAN SPEAKING) 

Exeter, £21,000 + potential of a bonus, usually achieved 

You will be working for a large scale communications and data 

management company based in the centre of Exeter. You will be 

dealing specifically with the German and Austrian markets that the 

organisation works with. You will be responsible for the successful 

communication between the client and their customers on certain 

financial issues. As well as your salary you will receive an excellent 

benefits package well in excess of any industry standard or 

expectations. Ref: 3966431 

Contact Simon Lawrence on 07824 884540 

or email simon.lawrence@hays.com 

This is just a small selection of the many opportunities we have 

available for credit professionals. To find out more visit us 

online or contact Kabir Gulabkhan, Hays Credit Management 

UK Lead on 020 3465 0020 


BE ONE CLICK AWAY 

FROM OUR WEBSITE 

How to set up a great one click link to the CICM website 

on your mobile phone. Follow these four simple steps... 

Step 1 Step 2 Step 3 Step 4 

Go to cicm.com > Click highlighted icon at bottom of screen > Click add to Home screen icon 

> Click add icon at top right of screen > CICM icon will appear on your screen 

Step 1 Step 2 Step 3 Step 4 

Open cicm.com in Google Chrome browser > Tap Menu button > Tap add shortcut to Home screen 

> Icon will appear on your screen. Menu button on other Android devices may be displayed differently. 

Advancing the credit profession 

T: +44 (0)1780 722900 | WWW.CICM.COM

CHARTERED INSTITUTE OF CREDIT MANAGEMENT 

ONLINE EVENTS 

Keep an eye on our events calendar at CICM.COM for all CICM events! 

Visit our website and book online at: www.cicm.com/cicm-events 

Many of our events are now available 

online, along with a new series of 

live recorded webinars for the credit 

profession. 

Studying at a 

distance 

with CICM 

Visit our website for 

updates and instructions 

on how to register... 

From interactive virtual classrooms to supporting texts, 

from mentor advice to peer support, we’ve got it all. 

Contact CICM for more information on any of these services, 

or check them out at cicm.com 

Giving you the tools to continue 

working through this crisis. 


Cr£ditWho? 

CICM Directory of Services 

COLLECTIONS 

COLLECTIONS (INTERNATIONAL) 

COLLECTIONS LEGAL 

Controlaccount Plc 

Address: Compass House, Waterside, Hanbury Road, 

Bromsgrove, Worcestershire B60 4FD 

T: 01527 549 522 

E: sales@controlaccount.com 

W: www.controlaccount.com 

Controlaccount Plc provides an efficient, effective and ethical 

commercial debt recovery service focused on improving business 

cash flow whilst preserving customer relationships and established 

reputations. Working with leading brand names in the UK and 

internationally, we deliver a bespoke service to our clients. We 

offer a no collect, no fee service without any contractual ties in. 

Where applicable, we can utilise the Late Payment of Commercial 

Debts Act (2013) to help you redress the cost of collection. Our 

clients also benefit from our in-house international trace and 

legal counsel departments and have complete transparency and 

up to the minute information on any accounts placed with us for 

recovery through our online debt management system, ClientWeb. 

Guildways 

T: +44 3333 409000 

E: info@guildways.com 

W: www.guildways.com 

Guildways is a UK & International debt collection specialist with over 

25 years experience. Guildways prides itself on operating to the 

highest ethical standards and professional service levels. We are 

experienced in collecting B2B and B2C debts. Our service includes: 

• A complete No collection, No Fee commission based service 

• 10% plus VAT commission for UK debts 

• Commission from 22% plus VAT for International debts 

• 24/7 online access to your cases through our CaseManager portal 

• Direct online account-to-account payments, to speed up 

collections and minimise costs 

If you are unable to locate your customer, we also offer a no trace, no 

fee, trace and collect service. 

For more information, visit: www.guildways.com 

COLLECTIONS (INTERNATIONAL) 

Atradius Collections Ltd 

3 Harbour Drive, 

Capital Waterside, Cardiff, CF10 4WZ 

Phone: +44 (0)29 20824397 

Mobile: +44 (0)7767 865821 

E-mail:yvette.gray@atradius.com 

Website: atradiuscollections.com 

Atradius Collections Ltd is an established specialist in business 

to business collections. As the collections division of the Atradius 

Crédito y Caución, we have a strong position sharing history, 

knowledge and reputation. 

Annually handling more than 110,000 cases and recovering over 

a billion EUROs in collections at any one time, we deliver when 

it comes to collecting outstanding debts. With over 90 years’ 

experience, we have an in-depth understanding of the importance 

of maintaining customer relationships whilst efficiently and 

effectively collecting monies owed. 

The individual nature of our clients’ customer relationships is 

reflected in the customer focus we provide, structuring our service 

to meet your specific needs. We work closely with clients to 

provide them with a collection strategy that echoes their business 

character, trading patterns and budget. 

For further information contact Yvette Gray Country Director, UK 

and Ireland. 

Premium Collections Limited 

3 Caidan House, Canal Road 

Timperley, Cheshire. WA14 1TD 

T: +44 (0)161 962 4695 

E: paul.daine@premiumcollections.co.uk 

W: www.premiumcollections.co.uk 

For all your credit management requirements Premium 

Collections has the solution to suit you. Operating on a national 

and international basis we can tailor a package of products and 

services to meet your requirements. 

Services include B2B collections, B2C collections, international 

collections, absconder tracing, asset repossessions, status 

reporting and litigation support. 

Managed from our offices in Manchester, Harrogate and Dublin our 

network of 55 partners cover the World. 

Contact Paul Daine FCICM on +44 (0)161 962 4695 or 

paul.daine@premiumcollections.co.uk 

www.premiumcollections.co.uk 

Baker Ing International Limited 

Office 7, 35-37 Ludgate Hill, London. EC4M 7JN 

Contact: Lisa Baker-Reynolds 

Email: lisa@bakering.global 

Website: https://www.bakering.global/contact/ 

Tel: 07717 020659 

Baker Ing International is a dedicated team of Credit industry 

experience that, combined, covers time served in most industries. 

The team is wholly comprised of working Credit Manager’s 

across the Globe with a minimum threshold of ten years working 

experience within Credit Management. The team offers a 

comprehensive service to clients - International Debt Recovery, 

Credit Control, Legal Services & more 

Our mission is to help companies improve the cost and efficiency 

of their Credit Management processes in order to limit the risks 

associated with extending credit and trading around the globe. 

How can we help you - call Lisa Baker Reynolds on 

+44(0)7717 020659 or email lisa@bakering.global 

Sterling Debt Recovery 

E: info@sterlingdebtrecovery.com 

T: 0207 1005978 

W: www.sterlingdebtrecovery.com 

Sterling specialises in international business debt collection 

to get outstanding invoices paid quickly and cost effectively. 

Our experienced, enthusiastic collectors achieve results whilst 

maintaining a professional image. 

We work on a commission only basis with no up-front fees and 

no hidden costs. Each client is allocated a named collector for 

personal service and regular updates. We collect the majority 

of debt without litigation, with our on-site lawyer supporting us 

where appropriate. 

Where local expertise is required our global network are available 

to assist. 

BlaserMills Law 

London – High Wycombe – Amersham – Silverstone 

T: 01494 478660 

E: jar@blasermills.co.uk 

W: www.blasermills.co.uk 

Blaser Mills Law’s commercial recoveries team is internationally 

recognised, regularly advising large corporations, multinationals 

and SMEs on pre-legal collections, debt recovery, commercial 

litigation, dispute resolution and insolvency. Our legal services 

are both cost-effective and highly efficient; Our lawyers are also 

CICM qualified and ranked in the industry leading law firm rankings 

publications, Legal 500 and Chambers UK. 

Keebles 

Capitol House, Russell Street, Leeds LS1 5SP 

T: 0113 399 3482 

E: charise.marsden@keebles.com 

W: www.keebles.com 

Keebles debt recovery team was named “Legal Team of the Year” 

at the 2019 CICM British Credit Awards. 

According to our clients “Keebles stand head and shoulders 

above others in the industry. A team that understands their client’s 

business and know exactly how to speedily maximise recovery. 

Professional, can do attitude runs through the team which is not 

seen in many other practices.” 

We offer a service with no hidden costs, giving you certainty and 

peace of mind. 

• ‘No recovery, no fee’ for pre-legal work. 

• Fixed fees for issuing court proceedings and pursuing claims to 

judgment and enforcement. 

• Success rate in excess of 80%. 

• 24 hour turnaround on instructions. 

• Real-time online access to your cases to review progress. 

Lovetts Solicitors 

Lovetts, Bramley House, The Guildway, 

Old Portsmouth Road, 

Guildford, Surrey, GU3 1LR 

T: 01483 347001 

E: info@lovetts.co.uk 

W: www.lovetts.co.uk 

With more than 25yrs experience in UK & international business 

debt collection and recovery, Lovetts Solicitors collects £40m+ 

every year on behalf of our clients. Services include: 

• Letters Before Action (LBA) from £1.50 + VAT (successful in 86% 

of cases) 

• Advice and dispute resolution 

• Legal proceedings and enforcement 

• 24/7 access to your cases via our in-house software solution, 

CaseManager 

Don’t just take our word for it, here’s some recent customer 

feedback: “All our service expectations have been exceeded. 

The online system is particularly useful and extremely easy to 

use. Lovetts has a recognisable brand that generates successful 

results.” 


FOR ADVERTISING INFORMATION OPTIONS 

AND PRICING CONTACT 

russell@centuryone.uk 0203 603 7937 

CONSULTANCY 

CREDIT INFORMATION 

CREDIT MANAGEMENT SOFTWARE 

Chris Sanders Consulting 

T: +44(0)7747 761641 

E: enquiries@chrissandersconsulting.com 

W: www.chrissandersconsulting.com 

Chris Sanders Consulting – we are a different sort of consulting 

firm, made up of a network of independent experienced 

operational credit & collections management and invoicing 

professionals, with specialisms in cross industry best practice 

advisory, assessment, interim management, leadership, 

workshops and training to help your team and organisation reach 

their full potential in credit and collections management. We are 

proud to be Corporate Partners of the Chartered Institute of Credit 

Management and to manage the CICM Best Practice Accreditation 

Programme on their behalf. For more information please contact: 

enquiries@chrissandersconsulting.com 

CREDIT INFORMATION 

Company Watch 

Centurion House, 37 Jewry Street, 

LONDON. EC3N 2ER 

T: +44 (0)20 7043 3300 

E: info@companywatch.net 

W: www.companywatch.net 

Organisations around the world rely on Company Watch’s 

industry-leading financial analytics to drive their credit risk 

processes. Our financial risk modelling and ability to map medium 

to long-term risk as well as short-term credit risk set us apart 

from other credit reference agencies. 

Quality and rigour run through everything we do, from our unique 

method of assessing corporate financial health via our H-Score®, 

to developing analytics on our customers’ in-house data. 

With the H-Score® predicting almost 90 percent of corporate 

insolvencies in advance, it is the risk management tool of choice, 

providing actionable intelligence in an uncertain world. 

CREDIT MANAGEMENT SOFTWARE 

Data Interconnect Ltd 

Units 45-50 

Shrivenham Hundred Business Park, Majors Road, 

Watchfield. Swindon, SN6 8TZ 

T: +44 (0)1367 245777 

E: sales@datainterconnect.co.uk 

W: www.datainterconnect.com 

Data Interconnect is dedicated to solving complex Accounts 

Receivable problems through reliable, easy-to-use cloud 

software. We empower billing managers and collections experts 

with the tools and data they need in a user-friendly interface, for 

timely, tax-compliant invoicing, collections and reconciliation in 

the most cost effective, secure, auditable and trackable manner. 

The powerful, flexible, Corrivo platform is the only system your 

AR team needs to manage your company’s cashflow better. 

2 0 0 2 

— 

2 0 2 0 

CoCredo 

Missenden Abbey, Great Missenden, Bucks, HP16 0BD 

T: 01494 790600 

E: customerservice@cocredo.com 

W: www.cocredo.co.uk 

CoCredo has 18 years experience in developing credit reports for 

businesses and is the current CICM Credit Information Provider 

of the Year. Our company data is continually updated throughout 

the day and ensures customers have the most current information 

available. We aggregate data from a range of leading providers 

across over 235 territories and offer a range of services including 

the industry first Dual Report, Monitoring, XML Integration and 

DNA Portfolio Management. 

We pride ourselves in offering award-winning customer service 

and support to protect your business. 

HighRadius 

T: +44 7399 406889 

E: gwyn.roberts@highradius.com 

W: www.highradius.com 

HighRadius is the leading provider of Integrated Receivables 

solutions for automating receivables and payment functions such 

as credit, collections, cash allocation, deductions and eBilling. 

The Integrated Receivables suite is delivered as a software-as-aservice 

(SaaS). HighRadius also offers SAP-certified Accelerators 

for SAP S/4HANA Finance Receivables Management, enabling 

large enterprises to maximize the value of their SAP investments. 

HighRadius Integrated Receivables solutions have a proven track 

record of reducing days sales outstanding (DSO), bad-debt and 

increasing operation efficiency, enabling companies to achieve an 

ROI in less than a year. 

ESKER 

Sam Townsend Head of Marketing 

Northern Europe Esker Ltd. 

T: +44 (0)1332 548176 M: +44 (0)791 2772 302 

W: www.esker.co.uk LinkedIn: Esker – Northern Europe 

Twitter: @EskerNEurope blog.esker.co.uk 

Esker’s Accounts Receivable (AR) solution removes the all-toocommon 

obstacles preventing today’s businesses from collecting 

receivables in a timely manner. From credit management to cash 

allocation, Esker automates each step of the order-to-cash cycle. 

Esker’s automated AR system helps companies modernise 

without replacing their core billing and collections processes. By 

simply automating what should be automated, customers get the 

post-sale experience they deserve and your team gets the tools 

they need. 

Graydon UK 

66 College Road, 2nd Floor, Hygeia Building, Harrow, 

Middlesex, HA1 1BE 

T: +44 (0)208 515 1400 

E: customerservices@graydon.co.uk 

W: www.graydon.co.uk 

With 130+ years of experience, Graydon is a leading provider of 

business information, analytics, insights and solutions. Graydon 

helps its customers to make fast, accurate decisions, enabling 

them to minimise risk and identify fraud as well as optimise 

opportunities with their commercial relationships. Graydon uses 

130+ international databases and the information of 90+ million 

companies. Graydon has offices in London, Cardiff, Amsterdam 

and Antwerp. Since 2016, Graydon has been part of Atradius, one 

of the world’s largest credit insurance companies. 

Tinubu Square UK 

Holland House, 4 Bury Street, 

London EC3A 5AW 

T: +44 (0)207 469 2577 / 

E: uksales@tinubu.com 

W: www.tinubu.com 

Founded in 2000, Tinubu Square is a software vendor, enabler 

of the Credit Insurance, Surety and Trade Finance digital 

transformation. 

Tinubu Square enables organizations across the world to 

significantly reduce their exposure to risk and their financial, 

operational and technical costs with best-in-class technology 

solutions and services. Tinubu Square provides SaaS solutions 

and services to different businesses including credit insurers, 

receivables financing organizations and multinational corporations. 

Tinubu Square has built an ecosystem of customers in over 20 

countries worldwide and has a global presence with offices in 

Paris, London, New York, Montreal and Singapore. 

SERRALA 

Serrala UK Ltd, 125 Wharfdale Road 

Winnersh Triangle, Wokingham 

Berkshire RG41 5RB 

E: r.hammons@serrala.com W: www.serrala.com 

T +44 118 207 0450 M +44 7788 564722 

Serrala optimizes the Universe of Payments for organisations 

seeking efficient cash visibility and secure financial processes. 

As an SAP Partner, Serrala supports over 3,500 companies 

worldwide. With more than 30 years of experience and 

thousands of successful customer projects, including solutions 

for the entire order-to-cash process, Serrala provides credit 

managers and receivables professionals with the solutions they 

need to successfully protect their business against credit risk 

exposure and bad debt loss. 

ONGUARD 

T: 020 3868 0947 

E: lisa.bruno@onguard.com 

W: www.onguard.com 

Onguard is specialist in credit management software and market 

leader in innovative solutions for order to cash. Our integrated 

platform ensures an optimal connection of all processes in the 

order to cash chain and allows sharing of critical data. 

Intelligent tools that can seamlessly be interconnected and 

offer overview and control of the payment process, as well as 

contribute to a sustainable customer relationship. 

In more than 50 countries the Onguard platform is successfully 

used for successful credit management. 

Credica Ltd 

Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT 

T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk 

Our highly configurable and extremely cost effective Collections 

and Query Management System has been designed with 3 goals 

in mind: 

•To improve your cashflow • To reduce your cost to collect 

• To provide meaningful analysis of your business 

Evolving over 15 years and driven by the input of 1000s of 

Credit Professionals across the UK and Europe, our system is 

successfully providing significant and measurable benefits for our 

diverse portfolio of clients. 

We would love to hear from you if you feel you would benefit from 

our ‘no nonsense’ and human approach to computer software. 

Satago 

48 Warwick Street, London, W1B 5AW 

T: +44(0)020 8050 3015 

E: hello@satago.com 

W: www.satago.com 

Satago helps business owners and their accountants avoid credit 

risks, manage debtors and access finance when they need it – all 

in one platform. Satago integrates with 300+ cloud accounting 

apps with just a few clicks, helping businesses: 

• Understand their customers - with RISK INSIGHTS 

• Get paid on time - with automated CREDIT CONTROL 

• Access funding - with flexible SINGLE INVOICE FINANCE 

Visit satago.com and start your free trial today. 


Cr£ditWho? 


FOR ADVERTISING INFORMATION 

OPTIONS AND PRICING CONTACT 

russell@centuryone.uk 0203 603 7937 

DATA AND ANALYTICS 

ENFORCEMENT 

INSOLVENCY 

Dun & Bradstreet 

Marlow International, Parkway Marlow 

Buckinghamshire SL7 1AJ 

Telephone: (0800) 001-234 Website: www.dnb.co.uk 

Dun & Bradstreet Finance Solutions enable modern finance 

leaders and credit professionals to improve business performance 

through more effective risk management, identification of growth 

opportunities, and better integration of data and insights across 

the business. Powered by our Data Cloud, our solutions provide 

access to the world’s most comprehensive commercial data 

and insights - supplying a continually updated view of business 

relationships that helps finance and credit teams stay ahead of 

market shifts and customer changes. Learn more here: 

www.dnb.co.uk/modernfinance 

C2FO 

C2FO Ltd 

105 Victoria Steet 

SW1E 6QT 

T: 07799 692193 

E: anna.donadelli@c2fo.com 

W: www.c2fo.com 

C2FO turns receivables into cashflow and payables into income, 

uniquely connecting buyers and suppliers to allow discounts 

in exchange for early payment of approved invoices. Suppliers 

access additional liquidity sources by accelerating payments 

from buyers when required in just two clicks, at a rate that works 

for them. Buyers, often corporates with global supply chains, 

benefit from the C2FO solution by improving gross margin while 

strengthening the financial health of supply chains through 

ethical business practices. 

identeco – Business Support Toolkit 

Compass House, Waterside, Hanbury Road, Bromsgrove, 

Worcestershire B60 4FD 

Telephone: 01527 549 531 Email: info@identeco.co.uk 

Web: www.identeco.co.uk 

identeco’s Business Support Toolkit is an online portal connecting 

its subscribers to a range of business services that help them 

to engage with new prospects, understand their customers and 

mitigate risk. Annual subscription is £79.95 per year for unlimited 

access. Providing company information and financial reports, 

director and shareholder structures as well as a unique financial 

health rating, balance sheets, ratio analysis, and any detrimental 

data that might be associated with a company. Other services 

also included in the subscription include a business names 

database, acquisition targets, a data audit service as well as 

unlimited, bespoke marketing and telesales listings for any sector. 

ENFORCEMENT 

Court Enforcement Services 

Wayne Whitford – Director 

M: +44 (0)7834 748 183 T : +44 (0)1992 663 399 

E : wayne@courtenforcementservices.co.uk 

W: www.courtenforcementservices.co.uk 

Court Enforcement Services is the market leading and fastest 

growing High Court Enforcement company. Since forming in 2014, 

we have managed over 100,000 High Court Writs and recovered 

more than £187 million for our clients, all debt fairly collected. We 

help lawyers and creditors across all sectors to recover unpaid 

CCJ’s sooner rather than later. We achieve 39% early engagement 

resulting in market-leading recovery rates. Our multi-awardwinning 

technology provides real-time reporting 24/7. We work in 

close partnership to expertly resolve matters with a fast, fair and 

personable approach. We work hard to achieve the best results 

and protect your reputation. 

High Court Enforcement Group Limited 

Client Services, Helix, 1st Floor 

Edmund Street, Liverpool 

L3 9NY 

T: 08450 999 666 

E: clientservices@hcegroup.co.uk 

W: hcegroup.co.uk 

Putting creditors first 

We are the largest independent High Court enforcement company, 

with more authorised officers than anyone else. We are privately 

owned, which allows us to manage our business in a way that 

puts our clients first. Clients trust us to deliver and service is 

paramount. We cover all aspects of enforcement – writs of control, 

possessions, process serving and landlord issues – and are 

committed to meeting and exceeding clients’ expectations. 

FINANCIAL PR 

Gravity Global 

Floor 6/7, Gravity Global, 69 Wilson St, London, EC2A 2BB 

T: +44(0)207 330 8888. E: sfeast@gravityglobal.com 

W: www.gravityglobal.com 

Gravity is an award winning full service PR and advertising 

business that is regularly benchmarked as being one of the 

best in its field. It has a particular expertise in the credit sector, 

building long-term relationships with some of the industry’s bestknown 

brands working on often challenging briefs. As the partner 

agency for the Credit Services Association (CSA) for the past 22 

years, and the Chartered Institute of Credit Management since 

2006, it understands the key issues affecting the credit industry 

and what works and what doesn’t in supporting its clients in the 

media and beyond. 

FORUMS 

FORUMS INTERNATIONAL 

T: +44 (0)1246 555055 

E: info@forumsinternational.co.uk 

W: www.forumsinternational.co.uk 

Forums International Ltd have been running Credit and Industry 

Forums since 1991. We cover a range of industry sectors and 

International trading, attendance is for Credit Professionals of all 

levels. Our forums are not just meetings but communities which 

aim to prepare our members for the challenges ahead. Attending 

for the first time is free for you to gauge the benefits and meet the 

members and we only have pre-approved Partners, so you will 

never intentionally be sold to. 

Menzies 

T: +44 (0)2073 875 868 - London 

T: +44 (0)2920 495 444 - Cardiff 

W: menzies.co.uk/creditor-services 

Our Creditor Services team can advise on the best way for you 

to protect your position when one of your debtors enters, or 

is approaching, insolvency proceedings. Our services include 

assisting with retention of title claims, providing representation 

at creditor meetings, forensic investigations, raising finance, 

financial restructuring and removing the administrative burden 

– this includes completing and lodging claim forms, monitoring 

dividend prospects and analysing all Insolvency Reports and 

correspondence. 

For more information on how the Menzies Creditor 

Services team can assist please contact Giuseppe Parla, 

Licensed Insolvency Practitioner, at gparla@menzies.co.uk 

or call +44 20 7465 1919. 

LEGAL 

Shoosmiths 

Email: paula.swain@shoosmiths.co.uk 

Tel: 03700 86 3000 W: www.shoosmiths.co.uk 

Shoosmiths’ highly experienced team will work closely with credit 

teams to recover commercial debts as quickly and cost effectively 

as possible. We have an in depth knowledge of all areas of debt 

recovery, including: 

•Pre-litigation services to effect early recovery and keep costs down 

•Litigation service 

•Post-litigation services including enforcement 

•Insolvency 

As a client of Shoosmiths, you will find us quick to relate to your goals, 

and adept at advising you on the most effective way of achieving 

them. 

PAYMENT SOLUTIONS 

American Express 

76 Buckingham Palace Road, 

London. SW1W 9TQ 

T: +44 (0)1273 696933 

W: www.americanexpress.com 

American Express is working in partnership with the CICM and is a 

globally recognised provider of payment solutions to businesses. 

Specialising in providing flexible collection capabilities to drive a 

number of company objectives including: 

• Accelerate cashflow • Improved DSO • Reduce risk 

• Offer extended terms to customers 

•Provide an additional line of bank independent credit to drive 

growth • Create competitive advantage with your customers 

As experts in the field of payments and with a global reach, 

American Express is working with credit managers to drive growth 

within businesses of all sectors. By creating an additional lever 

to help support supplier/client relationships American Express is 

proud to be an innovator in the business payments space. 

Bottomline Technologies 

115 Chatham Street, Reading 

Berks RG1 7JX | UK 

T: 0870 081 8250 E: emea-info@bottomline.com 

W: www.bottomline.com/uk 

Bottomline Technologies (NASDAQ: EPAY) helps businesses 

pay and get paid. Businesses and banks rely on Bottomline for 

domestic and international payments, effective cash management 

tools, automated workflows for payment processing and bill 

review and state of the art fraud detection, behavioural analytics 

and regulatory compliance. Businesses around the world depend 

on Bottomline solutions to help them pay and get paid, including 

some of the world’s largest systemic banks, private and publicly 

traded companies and Insurers. Every day, we help our customers 

by making complex business payments simple, secure and 

seamless. 


PAYMENT SOLUTIONS 

ARE YOU A LEADER 

OR FOLLOWER? 

Key IVR 

T: +44 (0) 1302 513 000 

E: sales@keyivr.com 

W: www.keyivr.com 

Key IVR are proud to have joined the Chartered Institute of 

Credit Management’s Corporate partnership scheme. The 

CICM is a recognised and trusted professional entity within 

credit management and a perfect partner for Key IVR. We are 

delighted to be providing our services to the CICM to assist with 

their membership collection activities. Key IVR provides a suite 

of products to assist companies across the globe with credit 

management. Our service is based around giving the end-user 

the means to make a payment when and how they choose. Using 

automated collection methods, such as a secure telephone 

payment line (IVR), web and SMS allows companies to free up 

valuable staff time away from typical debt collection. 

RECRUITMENT 

Hays Credit Management 

107 Cheapside, London, EC2V 6DN 

T: 07834 260029 

E: karen.young@hays.com 

W: www.hays.co.uk/creditcontrol 

Hays Credit Management is working in partnership with the CICM 

and specialise in placing experts into credit control jobs and 

credit management jobs. Hays understands the demands of this 

challenging environment and the skills required to thrive within 

it. Whatever your needs, we have temporary, permanent and 

contract based opportunities to find your ideal role. Our candidate 

registration process is unrivalled, including face-to-face screening 

interviews and a credit control skills test developed exclusively for 

Hays by the CICM. We offer CICM members a priority service and 

can provide advice across a wide spectrum of job search and 

recruitment issues. 

PORTFOLIO 

CREDIT CONTROL 

Portfolio Credit Control 

1 Finsbury Square, London. EC2A 1AE 

T: 0207 650 3199 

E: recruitment@portfoliocreditcontrol.com 

W: www.portfoliocreditcontrol.com 

Portfolio Credit Control, solely specialises in the recruitment of 

permanent, temporary and contract Credit Control, Accounts 

Receivable and Collections staff. Part of an award winning 

recruiter we speak to and meet credit controllers all day everyday 

understanding their skills and backgrounds to provide you with 

tried and tested credit control professionals. We have achieved 

enormous growth because we offer a uniquely specialist approach 

to our clients, with a commitment to service delivery that exceeds 

your expectations every single time. 

Cr£ditWho? 


CICMQ accreditation is a proven model 

that has consistently delivered dramatic 

improvements in cashflow and efficiency 

CICMQ is the hallmark of industry 

leading organisations 

The CICM Best Practice Network is where 

CICMQ accredited organisations come 

together to develop, share and celebrate 

best practice in credit and collections 

BE A LEADER – JOIN THE CICM BEST 

PRACTICE NETWORK TODAY 

To find out more about flexible options 

to gain CICMQ accreditation 

E: cicmq@cicm.com T: 01780 722900 


Taking control of your 

receivables helps drive 

your business forward. 

Whether you’re looking to hit cash flow 

targets or diversify funding options, C2FO 

puts you in control. Our easy-to-use platform 

enables more than 1.1 million companies to 

work directly with their customers to improve 

cash flow by determining the best time and 

terms for being paid. 

Visit C2FO.com/uk for more information.

CM June 2021 CM magazine

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