CM MAY 2023

CREDIT MANAGEMENT
CM
MAY 2023 £13.00
THE CICM MAGAZINE FOR CONSUMER AND
COMMERCIAL CREDIT PROFESSIONALS
TALL AND
PROUD
Lenders are
ready to lend
Can credit managers protect
themselves against COVID-19
fraud?. Page 16
There’s more to
Sweden than just ABBA
and IKEA. Page 34

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40
AN UNLUCKY BREAK
AUTHOR – Peter Walker
MAY 2023
www.cicm.com
CONTENTS
34
KNOWING ME
KNOWING YOU
AUTHOR –
Adam Bernstein
10 – THE MISSING PIECE
How data completes the puzzle of business
resilience.
12 – STANDING TALL
Banks and finance providers stand ready
to support businesses and individuals.
16 – FIGHTING FRAUD
How can credit managers protect
themselves against COVID-19 fraud?
19 – MODEL LAWS
Recognition and enforcement of
insolvency-related judgments.
24 – CONTRACTING COSTS
Contractual provisions and other
mechanisms for dealing with spiralling
costs.
16
FIGHTING FRAUD
AUTHOR –
Giuseppe Parla
CICM GOVERNANCE
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.
12
STANDING TALL
AUTHORS –
Lee Hopley, Sean Feast
FCICM and Roshika Perera
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 / Neil Jinks FCICM / Allan Poole MCICM
Advisory Council: Caroline Asquith-Turnbull FCICM / Laurie Beagle FCICM / Glen Bullivant FCICM /Brendan Clarkson FCICM
Larry Coltman FCICM / Peter Gent FCICM(Grad) / Victoria Herd FCICM(Grad) / Andrew Hignett MCICM(Grad)
Laural Jefferies FCICM / Neil Jinks FCICM / Martin Kirby FCICM / Charles Mayhew FCICM / Hans Meijer FCICM / Debbie Nolan
FCICM(Grad) / Amanda Phelan MCICM(Grad) / Allan Poole MCICM / Phil Rice FCICM / Phil Roberts FCICM / Chris Sanders FCICM
Paula Swain FCICM / Jamie Thornton MCICM / Mark Taylor MCICM / Atul Vadher FCICM(Grad)
30 – BY THE SWORD DIVIDED
Credit management appears divided
between professional and not so
professional practitioners.
34 – KNOWING ME, KNOWING YOU
There’s more to Sweden than just Abba
and IKEA!
40 – AN UNLUCKY BREAK
Can a holidaymaker suffering an
injury bring a claim against a UK credit
card company, even if they are not its
customer?
Publisher
Chartered Institute of Credit Management
1 Accent Park, Bakewell Road, Orton Southgate,
Peterborough PE2 6XS
Telephone: 01780 722900
Email: editorial@cicm.com
Website: www.cicm.com
CMM: www.creditmanagement.org.uk
Managing Editor
Sean Feast FCICM
Deputy Editor
Iona Yadallee
Art Editor
Andrew Morris
Telephone: 01780 722910
Email: andrew.morris@cicm.com
Editorial Team
Joe Clarkson, Rob Howard, Roshika Perera,
Melanie York and Mona Yazdanparast
Advertising
Paul Heitzman
Telephone: 01727 739 196
Email: paul@centuryone.uk
Printers
Stephens & George Print Group
2023 subscriptions
UK: £129 per annum
International: £160 per annum
Single copies: £13.00
ISSN 0265-2099
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 3

EDITOR’S COLUMN
Blame it on the
weather, man!
Sean Feast FCICM
Managing Editor
AS the son of a farmer, I
was especially alarmed
to read a recent report
from our friends at
Atradius regarding the
crisis in the food sector
amid a national shortage of products like
eggs and some vegetables. Claims for
late and failed payments have risen by
some 79 percent, whereas claims in the
agriculture sector as a whole have more
than doubled in the last 12 months to 119
percent.
Now I am conscious that I am the
managing editor of Credit Management,
and not Farmers Weekly. I am conscious,
also, that it is many years since I last
mucked out a cow shed (although my
two boys were home for Easter, and there
were some similarities after they left).
But there are some blindingly obvious
reasons for why certain shelves within
certain retailers are empty.
Whichever came first, whether it was
the chicken or the egg, both are in short
supply. Farmers are having to absorb
rising costs of feed, energy and labour,
at the same time as dealing with one of
the worst outbreaks of avian flu in recent
history. Things are getting better. At the
time of going to press, the mandatory
housing measures for poultry and
captive birds was about to be lifted, but
the huge disruption caused to farmers
in Norfolk, Lincolnshire, and other
affected counties will impact the food on
our tables for many months to come.
Vegetable producers are facing their
own set of challenges. We never did
veg or arable, only meat, so I am not an
authority (and my knowledge of herbal
lays is only what I’ve gleaned from The
Archers), but I do know that unseasonable
weather is impacting crop yields, and
that in turn affects supply. As Georgios
Panzaris, Senior Underwriter at Atradius
(and no doubt avid Archers’ fan), says,
‘farmers are facing a raft of challenges in
an already volatile environment.’
All of which means ‘trouble at mill’,
almost literally.
Georgios reckons that companies
that have traditionally operated on thin
margins will be particularly vulnerable
to volatile market conditions, but even
the biggest players are being tested.
Some retailers are doing more than
just holding onto their cash for longer;
some are not paying their suppliers
at all. He’s sufficiently concerned to
admit that Atradius will only continue
to underwrite agri-food firms on a caseby-case
basis. And that means having
robust data and financial insight at your
fingertips to have any hope of getting
cover.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 4

CMNEWS
A round-up of news stories from the
world of consumer and commercial credit.
Insurance claims rise
alarmingly in food sector
ATRADIUS has reported a 79
percent increase in claims for
late and failed payments in
the food sector amid national
supply shortages of products
like eggs and some vegetables.
Its data shows the agriculture sector also
saw claims more than double (119 percent
increase) last year.
Atradius provides trade credit insurance,
which helps to protect suppliers against
the risk of a retailer becoming insolvent
between when they place an order and make
payment. Without insurance, suppliers tend
to seek more specific payment terms, putting
pressure on a retailer’s cash flow.
A rise in claims received in the sector
indicates the number of retailers failing to
pay their suppliers has risen exponentially
over the last 12 months, as firms struggle to
return to business as usual.
Georgios Panzaris, Senior Underwriter at
Atradius, says it has been a challenging few
years for the food industry: “Ongoing supply
issues look set to continue as the sector
battles with the quadruple threat of rising
prices, ongoing fallout from Brexit and the
pandemic, and bad weather conditions,” he
explains.
“The empty shelves shoppers are seeing
have different root causes. Egg shortages
are largely down to farmers being hit by the
rising costs of feed, energy and labour, not
to mention the largest avian flu outbreak
we’ve ever seen, with undersupply at
risk of persisting for months. Meanwhile
Written by – Sean Feast FCICM
❝
The empty shelves
shoppers are seeing
have different
root causes. Egg
shortages are largely
down to farmers
being hit by the
rising costs of feed,
energy and labour,
not to mention the
largest avian flu
outbreak we’ve ever
seen.
❝
vegetable producers are facing similar
challenges alongside unfavourable weather
conditions, with lower crop yields affecting
supply. Put simply, farmers are facing a
raft of challenges in an already volatile
environment.
“Our data on late and failed payments
paints a bleak picture, with the number of
claims we received in the sector for late
and failed payments up by 79 percent in
the food sector, and a huge 119 percent in
the agriculture sector last year. This follows
a relatively subdued period in 2021 where
businesses could benefit from ongoing
Government support put in place during the
pandemic. But with no such support in place
this year, firms will be bracing themselves for
the coming months.”
Georgios says that companies that have
traditionally operated on thin margins will
be particularly vulnerable to volatile market
conditions, but even the biggest players are
being tested: “With insolvency a real risk,
businesses need to do all they can to ensure
they are protecting cash flow so they can
mitigate the risk of a large customer failing
unexpectedly.
“Atradius continues to underwrite agri-food
firms on a case-by-case basis, but it’s crucial
businesses have robust and updated financial
insight and forecasts. To guard against the
domino effect that crumbling supply chains
can have on firms, a trade credit insurance
policy can play a very important role in
maintaining a company’s confidence in its
trade debtor book.”
Inquiry tackles issues of small developers
THE all-party parliamentary group
(APPG) for SME housebuilders is
undertaking an inquiry into the
specific finance issues faced by
smaller developers. The inquiry is
looking at not only the effects of
the current economic climate but
also planning delays, stretched
funding and modern methods of
construction. It is jointly funded by
northwest-based accountancy firm
Cowgills and SME lender Aldermore
and is chaired by MP Andrew Lewer.
In recent years, SME housebuilders
have faced a number of challenges,
including a lack of access to finance,
planning delays and a shortage of
skilled workers. These factors are said
to have contributed to a decline in the
number of small housebuilders, with
many struggling to compete with
larger firms. The parliamentary group
expects to publish a report with policy
recommendations later this year.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 5

NEWS ROUNDUP
One in six adults have less than
£20 per week of disposable income
ONE in six adults – the
equivalent of seven and
a half million people
– has £20 or less to
live on after paying
for essentials each
month, according to YouGov polling by
StepChange Debt Charity, with one in
twelve (eight percent) people having no
disposable income at all.
The survey is said to chime with
StepChange’s own client data which
shows one third (33 percent) of new
clients are in a negative budget,
meaning that, after a debt advice
session and budget counselling, their
expenses exceed their income.
The polling also reveals the impact
of nine consecutive interest rate rises
on mortgage holders and renters alike.
Half (50 percent) of renters and 38
percent of mortgage holders expect
their housing payments to rise within
the next 12 months. Of those facing a
rise, one in four (26 percent) expects to
be driven into problem debt because of
it. Among renters whose rent is rising,
four in five (81 percent) say it’s because
their landlord is increasing their rent.
While the Chancellor confirmed in
the Spring Budget that the Energy Price
Guarantee (EPG) has been extended
for another three months, the Energy
Bill Support Scheme (EBSS), which
has seen households receive a £400
discount on their energy bills came to
an end on 31 March. More than one in
three (37 percent) people say they will
have to borrow to cope, a figure that
rises to more than two in three among
Universal Credit claimants (67 percent)
and one in two (56 percent) among
renters.
Despite mandatory signposting on
collections letters, the survey shows
that one in six (16 percent) people
do not know debt advice services
even exist, and a further one in five
(21 percent) wrongly believe that
contacting a debt advice organisation
would have a negative impact on their
credit score.
StepChange is calling for reform
that will have a long-term impact
and ultimately protect people from
remaining trapped in a spiral of
problem debt. The charity has
been campaigning for an end to
unaffordable deductions from benefits
to repay debts and would like to see the
Households balancing on financial cliff edge
AS UK households grapple with
the rising cost-of-living, customers
are continuing to borrow and are
increasingly falling into debt.
Lowell’s Financial Vulnerability
Index (FVI), which measures and
tracks financial resilience across the
UK, suggests that the share of adults
in default is edging up to peak levels
seen at the beginning of the pandemic;
the proportion of adults in default
has risen to its joint highest level
since Q4 2019 as households increase
expenditure during the rising cost-ofliving.
John Pears, UK CEO at Lowell,
says that the new data shows a
complex picture of financial health
in the UK: “Overall it might be getting
better, but we’re still miles away from
where we were before the pandemic.
Dive a little deeper and we can see
a range of issues bubbling under the
surface.
“The decline in overall financial
vulnerability is important, but it’s still
high. Default rates are rising. We need
to think about what we’re doing, at
an industry and Government level, to
improve the country’s financial health
over the long term. Topics such as
teaching better money management,
helping people better understand
financial products and destigmatising
debt all need to be higher on the
agenda.
“As an industry, we are on the
frontline of the rising cost-of-living.
By working with the Government and
other industry bodies, we can help
them fully understand the customer
debt journey, ensure the credit system
is working in everyone’s interests
and address the underlying issues of
financial vulnerability.”
The new figures show that UK
households’ financial health has
actually been improving since the
beginning of the COVID-19 pandemic
but increases in the cost-of-living
appear to be preventing a quicker
return to pre-pandemic levels of
financial health. An increase in
expenditure is likely to drive higher
defaults over the long-term.
Credit use remains significantly
higher than before the pandemic; it has
been on a clear rise since the start of
the pandemic and remains well above
pre-pandemic levels as households
continue to borrow, despite rising
interest rates. Dependence on social
benefits continues to fall from the high
levels seen during the pandemic but
remains higher than it was between
2017 and 2019.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 6

NEWS ROUNDUP
StepChange is calling for reform that will have a
long-term impact and ultimately protect people from
remaining trapped in a spiral of problem debt.
introduction of a social tariff on energy
bills to support low income households.
Meanwhile, Vikki Brownridge,
currently Director of Operations at
StepChange, has taken over from Phil
Andrew as CEO. Phil is leaving the
charity after more than five years in the
post. Vikki is the first woman to become
Chief Executive of the charity and takes
up the role after more than 17 years at
StepChange, during which time she has
risen through the ranks and worked
in a number of senior roles including
Director of Charity Development and
most recently Director of Operations.
Prior to joining StepChange Vikki
held a number of senior positions
within contact centre operations
working in financial services and
outsourcing.
❝
Her appointment follows soon after
publication of StepChange’s 2022
Statistics Yearbook that suggests that
the average (mean) unsecured debt
per client increased by 25 percent
from £11,176 in 2021 to £13,941 in 2022,
and there was a 20 percent increase
in clients seeking debt advice or
guidance with problem debt between
2021 (483,247) and 2022 (580,913).
One third (33 percent) of clients
were in arrears with their energy bills
in 2022, compared to 29 percent in
2021, while a clients’ average (mean)
monthly income actually rose to
£1,558 in 2022 compared to £1,434 in
2021. Despite this, clients only had an
average (mean) surplus of £73 to pay
towards their debts each month in
2022, compared to £100 in 2021.
CICM teams up with My DSO Manager
THE Chartered Institute of Credit
Management (CICM), the largest
professional credit management body
in the world, has entered into a new
agreement with My DSO Manager, a
SaaS credit management and cash
collection software provider.
Through joint events, awards and
content, the alliance will give CICM
members access to valuable insights
into managing risk, maximising cash
collection, and streamlining the creditto-cash
cycle, helping them optimise
their business’ cashflow by improving
its accounts receivable management.
Founded in 2015, My DSO Manager
helps accounts receivable professionals
by providing a range of functionalities
including automated and personalised
cash collection strategies as well as
real-time insights into the KPIs, cash
forecasts and the risk behaviour of
clients. It has over 1,500 clients in 85
countries, including some renowned
companies based in the UK, and is
focused on further expanding its UK
market.
Sue Chapple FCICM, Chief Executive
of the CICM says the alliance gives
members access to effective ways
of resolving a contentious issue:
“Late payment is an issue that CICM
members are all too familiar with,
and we are delighted to partner
with My DSO Manager to help credit
professionals reform their collection
strategies and reduce the risk of nonpayment
to begin with.
“My DSO Manager shows a deep
understanding of the many factors that
contribute to late payment, which is
reflected through its comprehensive
software that contains an array of
features to help credit and collections
professionals create tailored solutions
for their business and customers.”
Yalda Bayat, Communication-
Marketing Manager at My DSO Manager,
believes that the alliance will provide
CICM members with the resources to
restore stability to their businesses:
“Partnering with CICM is an exciting
opportunity that enables us to assist its
members in managing their credit-tocash
cycle more successfully.
“By leveraging the expertise of the
credit industry and remaining abreast
of the most recent industry trends
and best practices, we hope to provide
credit managers with a broader range of
automated capabilities and innovative
functionalities that will ultimately
improve their cashflow.”
Sue Chapple FCICM, Chief
Executive of the CICM
>NEWS
IN BRIEF
Poverty increases
CHRISTIANS Against Poverty’s (CAP)
latest YouGov polling shows around
nine in ten (88 percent) of the adult
population across the UK think it’s
important more is done to tackle
poverty. But many charities fighting
poverty are facing funding struggles
at a time when the cost-of-living crisis
is driving increasing demand for their
help. The new research suggests that
half of all adults (25.9m) have gone
without heat at some point this winter,
with over 6m people going without
heat on a daily basis. Around a third
(16.9m) have had to skip meals, while
four out of five (43.4m people) expect
poverty to increase in the UK in the
next year.
DBT launches ‘Help
to Grow’ site to boost
economy
THE UK Government has launched
a new centralised website aimed at
providing support and assistance to
businesses across the country.
The Help to Grow website from
the Department for Business and
Trade (DBT) is designed to upskill
businesses of all sizes, helping them
to reach more customers, learn new
skills and boost their profits. The site
brings together the expertise of the
newly formed department, making it
easier for businesses to access and use
Government information and support.
The launch of Help to Grow has
been prompted by businesses’ need
for easy-to-find information and the
site aims to simplify the process of
accessing such information. The site is
described as being ‘focused on helping
the UK’s 5.4m small businesses,
which are a driving force behind
the economy.’ It offers support and
guidance at every stage of the business
journey, from start-up to scale-up and
exporting globally.
Business and Trade Minister Kevin
Hollinrake MP says that one of the key
objectives of Help to Grow is to provide
businesses with the tools they need to
grow and succeed: “When businesses
are given the right tools, it boosts
profits, creates well-paid jobs and lifts
the entire UK economy.
“The Help to Grow website will play
a pivotal role in helping firms achieve
their business ambitions by enabling
more businesses to reach their
trading ambitions, increasing inward
investment and removing business
trade barriers.”
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 7

GOVERNMENT efforts
to reform Companies
House won’t achieve
their aims without
closing risky loopholes,
insolvency and
restructuring trade body R3 has
warned.
The Economic Crime and Corporate
Transparency Bill aims to address the
misuse of UK company registrations
and removals by reforming the
powers of Companies House, but
R3 believes that without changes to
the legislation around the company
dissolution process, this objective
won’t be met: “The Bill won’t improve
transparency over corporate entities
and tackle economic crime while
companies are dissolved and struck
off the Companies House register
with no investigation into the conduct
of their directors,” Nicky Fisher, Vice
President of R3 explains.
“At the moment, anyone who is
looking to avoid investigation can do
this by waiting until their company is
NEWS ROUNDUP
Companies House changes
will fail without reforms
struck off the register, as the option of
restoring it via the courts to enable an
investigation to happen is often too
time consuming and expensive for
the business’s creditors.
“This loophole needs to be closed if
Government wants this legislation to
achieve what it’s intended to and stop
company law from being abused.”
R3 would like to see companies
who have failed to file accounts
and confirmation by Companies
House’s deadline entered into a
compulsory liquidation overseen by
the Government’s Official Receiver
if the missed deadline isn’t rectified
or the company put into voluntary
liquidation within a month:
“Putting a company automatically
into a compulsory liquidation would
make it easier for director misconduct
to be investigated, for the business’s
assets to be recovered earlier, and
would send a warning to those people
looking to commit fraud,” Nicky says.
“This approach would require
additional resources, but these could
be raised by making the business’s
directors liable for the fees for the
compulsory liquidation – and this
would send a clear message to
potential fraudsters that there are
financial penalties for this crime,
alongside being investigated and
potentially imprisoned.”
With the Economic Crime and
Corporate Transparency Bill
approaching the committee stage in
the House of Lords, R3 is urging peers
to make these amendments to the
draft legislation before it completes
its parliamentary journey: “Fraud
affects millions of people and costs
the UK billions of pounds a year,”
Nicky says. “Through this Bill, the
Government has a great opportunity
to tighten the powers of Companies
House and strengthen its efforts to
tackle it.
“We urge to take it by adopting these
amendments – instead of waiting
for another opportunity while people,
businesses and the economy suffer at
the hands of fraudsters.”
Energy price increases remain top threat
ALMOST half (43 percent) of global
business leaders surveyed still see
energy price increases as their biggest
challenge this year, despite Western
countries’ best efforts to impose energy
spend caps over the winter months and
control inflation.
According to a Dun & Bradstreet’s
report Data Driven Resilience: How to
Grow When Facing an Uncertain Future
– which surveyed more than 3,000
business leaders across 18 countries –
concern around energy price increases
is felt most strongly in Europe, most
notably in Poland with 60 percent
seeing this as their biggest challenge
as the continent navigates yet more
economic headwinds. However, in the
United States, this datapoint dropped
sharply to a quarter (27 percent) – likely
because of the country’s reliance on its
own energy supply.
❝
However, in the United States, this datapoint
dropped sharply to a quarter (27 percent) –
likely because of the country’s reliance on its
own energy supply.
By comparison, the overall increases
to the cost of doing business is expected
to have an acute impact on more than
a third (37 percent) of businesses
surveyed in 2023, as the world
continues to recoup its economic losses
following the pandemic.
Although the survey found that 27
percent of leaders rate their business’
resilience during turbulent times as
‘extremely resilient,’ given the ongoing
economic uncertainty, D&B believes
it is imperative for more businesses
to develop a higher level of resilience
to remain competitive and position
themselves for growth and innovation.
“It’s concerning to see that 85 percent
of businesses currently do not use data
to understand disruption
in their ecosystem,” a
spokesperson said.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 8

NEWS ROUNDUP
>NEWS
IN BRIEF
Customers dial back
their credit card spending
DEMAND for consumer finance was
driven by ‘other’ consumer credit,
including personal loans, as customers
dialled back their credit card spending
in the first quarter.
Individuals borrowed an additional
£1.4 bn in consumer credit in February,
of which £0.8bn was through ‘other’
forms of consumer credit (such as
car dealership finance and personal
loans). Credit card borrowing in
February fell to £0.6bn from £1.1bn in
January 2023.
Effective interest rates across
interest-bearing credit cards, personal
loans and interest-charging overdrafts
all rose through the month reflecting
this higher cost of borrowing.
Andrew Fisher, Chief Growth Officer
at Freedom Finance, one of the UK’s
leading digital lending marketplaces,
says that despite interest rates
New UK version of GDPR
to save British businesses
THE Government has introduced a
new Data Protection Bill aimed at
reducing costs and burdens for British
businesses and charities, removing
barriers to international trade and
cutting down on the number of
repetitive data collection pop-ups
online.
Designed with input from business
leaders and data experts, the Bill
seeks to ensure data adequacy while
moving away from the ‘one-size-fitsall’
approach of the European Union’s
General Data Protection Regulation
(GDPR).
The new bill, which is expected to
save the UK economy over £4bn in
the next decade, builds on the UK’s
high standards for data protection and
privacy. It seeks to create a simple,
clear and business-friendly framework
that will not be difficult or costly to
implement, providing businesses with
more flexibility about how they comply
with the new data laws.
Julian David, TechUK CEO, welcomed
increasing across the consumer
sector his firm is still seeing strong
demand from customers for credit:
“Over the past few months, there
have been large fluctuations in
demand for the various types of credit,
in particular, credit card spending has
been volatile.
“Customers are still getting to
grips with a radically different credit
landscape to this time last year, and
many will need to rethink how they
finance home improvements, holidays
and even day-to-day spending as lowrate
mortgages and long interest-free
periods on credit cards have all but
disappeared. We have seen a wider
range of customers than ever coming
to our platform in recent months
searching for both unsecured and
secured credit options as they adapt to
the new financial environment.
the new package of reforms: “The
changes announced will give
companies greater legal confidence
to conduct research, deliver basic
business services and develop new
technologies such as AI, while retaining
levels of data protection in line with the
highest global standards, including data
adequacy with the EU.”
In addition to reducing the number
of consent pop-ups seen online and
establishing a framework for the use of
trusted and secure digital verification
services, the Bill will increase fines for
nuisance calls and texts to be either
up to four percent of global turnover
or £17.5m, whichever is greater, and
will strengthen the Information
Commissioner’s Office (ICO) through
the creation of a statutory board with a
chair and chief executive.
The Government is also planning
to establish a new international data
transfer regime to allow the free flow
of data between the UK and other
countries.
Finverity raises $5m
equity funding as
revenues grow 15x
FINVERITY, the digital ecosystem
for trade and supply chain finance,
has raised US $5m in a heavily
oversubscribed equity funding round
from new and current investors.
New investors include Londonbased
fintech specialist Outward,
Amsterdam-based Acrobator
Ventures and US-based s16vc
founders fund. The firm says that the
funding round comes on the back of
15x revenue growth in 2022 across
the Middle East and Africa and the
recent expansion to Eastern Europe.
Arrow hits bullseye
ARROW Global Group has reached
hard cap of its flagship strategy
Arrow Credit Opportunities II Fund
at approximately €2.75bn including
a General Partner commitment of
€275m. ACO II received extensive
investor demand from both
new and existing partnerships,
which significantly exceeded its
fundraising target of €2.5bn to reach
the Fund’s hard cap of €2.75bn. ACO
II attracted almost unanimous re-up
from ACO I investors and is said
to have attracted significant new
commitments from a diverse mix of
global institutional investors from
the US, Europe, Asia-Pacific, and
Middle East.
April worries
WITH a typical household’s bills set
to rise by nearly £1,300 a year from
April, a study by Money Wellness, a
wellbeing platform specialising in
free debt advice and ongoing support,
suggests that more than nine out
of ten (91 percent) of British people
are worried about covering these
increases. Furthermore, only 59
percent of the people Money Wellness
spoke to said they have worked out
how much more money they’d be
paying and 60 percent of those said
they were looking at shelling out at
least another £100 a month. However,
some 63 percent had already thought
about how to cover rising costs, with
over half planning to cut back on
non-essential spending and 13 percent
intending to work longer hours.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 9

DATA & INSIGHTS
The Missing Piece
How data completes the puzzle
of business resilience
AUTHOR – Edgar Randall
THE Collins dictionary
defines the term ‘resilient’
as something that is strong
and not easily damaged
by being hit, stretched,
or squeezed. The Oxford
dictionary, however, describes it as being
able to recover quickly after something
unpleasant such as shock.
For businesses, the definition of
‘resilient’ can vary too. To some the word
‘resilience’ means rebounding from
shock. For others, it means adapting to
unfavourable circumstances and moving
forward. Regardless, for most it all boils
down to survival, and survival isn’t easy
in a turbulent economy and unstable
geopolitical landscape.
Protect, prepare and strengthen
Rising inflation, continued monetary
policy tightening, high interest rates,
increased energy costs, supply chain
disruption, the lingering effects of the
pandemic and Brexit, as well as war
and geopolitical instability, are having a
simultaneous and substantial impact on
the business environment.
These threats are strongly felt by
business leaders in 2023. Dun &
Bradstreet’s recent global report – which
surveyed 3,396 business leaders across 18
countries – unearthed that energy price
increases are felt most strongly in Europe.
The overall increases to the cost of doing
business is expected to have an acute
impact on more than a third (37 percent)
of businesses too.
Businesses are worried, and rightly
so, but that’s why it’s never been more
important to know who to trust, where
risks are emerging and how to manage
them. Having the right tools in your
armoury to understand what’s happening
around you, combined with the ability
to respond quickly to fast-changing
conditions, is what provides the strong
foundations of resilience.
For businesses, they should reimagine
resilience as the business version of
protein; the ingredient that protects and
repairs, but also strengthens them to
withstand the conditions that require
endurance.
However, our Data-Driven Resilience
study makes it clear that businesses are
struggling to protect, repair or strengthen
themselves. Just over a quarter of leaders
(27 percent) rate their business’ resilience
during turbulent times as "extremely
resilient.” So, it’s critical that a larger
portion of businesses develop a higher
level of resilience to remain sheltered
from challenges, and agile to change, all
while positioning themselves for growth
and innovation.
Using data to become resilient
Promisingly, businesses are already using
data to inform various decisions. When
we asked business leaders about the
current role of data in their organisations,
the most common answer was ‘using data
to increase revenue’ (37 percent).
Elsewhere, 23 percent of global leaders
cite that their business uses data to
comply with regulations, while 17 percent
leverage data to recognise potential
malfeasance and fraud. These are still
small segments of businesses strategically
using data when we look at the sheer
volume of threats.
Despite this, these numbers don’t
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 10

❝
Think of it as a puzzle, with all the pieces in front of you in a box.
Businesses have all the pieces but cannot see the full picture. They are
unable to see the completed puzzle and therefore do not fully understand
their organisation inside and out. – Edgar Randall.
❝
reflect the number of leaders that want to
use data more effectively and efficiently.
More than three quarters (77 percent)
of leaders globally agreed that data will
be vital for navigating the turbulent
times ahead and ensuring their business
survives. A number which rose to 80
percent for those in the UK.
So, why are businesses struggling
to make use of data in their fight for
resilience?
A missing puzzle piece
To understand these challenges, we need
to look at the root cause.
From Dun & Bradstreet’s research, it
seems that the collection and analysis
of data and insight is where difficulties
begin, with 80 percent of organisations
currently struggling to manage the
volume, variety and velocity of their data.
This is reinforced when we consider
that an astonishing 85 percent of
business leaders state they currently do
not use data to understand disruption in
their ecosystem, which means only 15
percent of businesses are using a form of
insight to remain competitive by building
the strong foundations to monitor and
pre-empt risk or spot opportunities.
Add to the mix that 32 percent of
leaders reported finding it challenging to
realise the full potential of their data; it’s
clear businesses need more guidance.
Think of it as a puzzle, with all the
pieces in front of you in a box. Businesses
have all the pieces but cannot see the
full picture. They are unable to see the
completed puzzle and therefore do not
fully understand their organisation
inside and out.
However, piecing this together is
fundamental to gaining this insight
at every level – from the supply chain
to customer communication, sales to
compliance.
An impossible jigsaw
At Dun & Bradstreet we’re already noting
significant impacts that the economic
downturn is having on businesses. For
example, in 2022 the number of UK
business insolvencies reached peak
levels. Similarly, Government data shows
that more companies suffered insolvency
in 2022 in England and Wales than any
time since 2009.
At a time when instability and failure is
rife, the UK economy will not be able to
sustain itself when just a small proportion
of organisations truly understand both
the challenges and opportunities at play.
Thankfully there’s confidence in the
role data plays and can play. Businesses
recognise the pivotal role that data and
the insights it provides will play in the
future success of their organisations.
Data is highlighted as vital in helping
business leaders’ organisations to
identify new customers (79 percent) and
the same amount agree that it’s essential
for financial planning.
But data isn’t the simple extraction
that it could perhaps be. Now imagine
the jigsaw again, but all the pieces aren’t
just in one box. They’ve been misplaced,
with pieces placed in other jigsaw boxes.
Completing a puzzle where you don’t
even know where the pieces are located
could be a near-on impossible task. The
same applies to making decisions when
you can’t locate your data.
Businesses are facing that too.
And compounding this data problem
somewhat more is that data management
within organisations is becoming
increasingly siloed – with a rise in the
complexities when sharing information
between teams, departments and
regions. Key parts of information are
stuck in other parts of the business.
How to better use data for resilience
So, the hurdle isn’t about needing more
leaders to see data as a valuable asset,
rather it’s about the business’ ability to
unlock the true value of its data.
Yes, businesses can take near-term
measures to address immediate obstacles
and maintain short-term resilience,
but long-term success requires a more
strategic approach that prioritises
business resilience.
Utilising data to scenario plan and
model outcomes is an essential aspect
of a successful strategy that enables
businesses to remain agile and overcome
future disruptions. With the aid of
trend analysis and predictive analytics,
companies can proactively identify
potential risks and growth opportunities.
Such information can then be harnessed
to formulate data-driven strategies,
which can mitigate risks and capitalise
on opportunities. For instance, by
establishing a flexible supply chain
and investing in digital transformation,
businesses can respond rapidly to
unforeseen events, such as pandemics,
natural disasters, or geopolitical risks.
By leveraging data insights to plan for
a range of scenarios, businesses can be
better prepared to overcome the next
global disruption, as well as any future
challenges that may occur. Data is an
essential tool for unlocking valuable
insight to increase business resilience to
weather the next disruption, and the one
after that.
Edgar Randall is Managing Director
at Dun & Bradstreet UK&I.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 11

COMMERCIAL AND CONSUMER LENDING
STANDING TALL
Banks and finance providers stand ready
to support businesses and individuals.
AUTHOR – Lee Hopley
NAVIGATING the turbulent times
of the past year has been an incredible
challenge for the whole
country. Spiraling inflation
triggered by burgeoning food
and energy prices has sparked
11 successive interest rate rises over the past
12 months. These pressures have weighed on
households and businesses but I am proud that
as an industry, banks and financial services providers
have continued to support personal and
business customers during these difficult times.
Lifeline for borrowers
The rising cost-of-living has hit most
households’ wallets one way or another, while
increasing interest rates have bumped up many
households’ mortgage payments. Warning lights
on the personal finance dashboard started
flashing this time last year. An energy price
shock, risks to food prices and supply, together
with the inevitable response that would come
from central banks put cost-of-living concerns
in the spotlight.
With the UK and global economic recovery
after COVID-19 just taking root, lenders were
attuned to the fragile confidence across business
and consumers. For the latter, the industry was
acutely aware of the asymmetric impact of the
pandemic and what was coming down the track
as inflation rates not seen for four decades were
going to erode any financial headroom for many
households.
At UK Finance working with our members, we
saw a rapid response with lenders putting more
resources into working closely with customers
around their financial worries, increasing
outreach to support financial management
and engage with customers before payment
difficulties crystallised. Given the faster than
expected rise in interest rates, there was a focus
on those re-mortgaging and facing a likely
interest rate shock.
In the last 12 months, lenders have proactively
contacted mortgage customers a combined total
of 16.5m times to offer support, and this figure
is expected to increase to 20.5m contacts over
the next 12 months. In addition, over the last
year two million borrowers have been provided
with financial difficulty assistance, including
budgeting support, access to debt advice and
breathing space. This support helps those who
are worried about their finances or are likely to
struggle to meet payments.
For anyone struggling to pay their mortgage,
credit card or personal loan, we encourage
❝
The rising costof-living
has hit
most households’
wallets one way
or another, while
increasing interest
rates have bumped
up many households’
mortgage payments.
Warning lights on
the personal finance
dashboard started
flashing this time
last year.
❝
customers to reach out to their lender to let
them know - tailored support is available to
help.
It's important to continue to convey the
message to consumers that just getting in
contact with your lender to find out the options
will not impact credit scores. Depending on a
customer’s circumstances, options to help with
mortgage payments could include switching
to interest-only temporarily, a mortgage term
extension, or a payment concession. For credit
cards and personal loans, options could include
making reduced payments for a short period of
time or agreeing an affordable payment plan
over a longer period of time.
Supporting businesses
The rising cost-of-living and economic
uncertainty has weighed significantly on
businesses. That’s why we have partnered with
major business groups and sector-specialist
trade bodies in supporting businesses who face
barriers to investment, international trade and
resources. With small firms facing the perfect
storm of rising energy costs, pressure on supply
chains and the return of business rates, these
linkages will be crucial in ensuring that the
industry is on hand to help SMEs access the
finance and support they need.
Times of economic turbulence can provide
opportunities as well as challenges. Innovation
and investment in new business models
or technology can also be vital in helping
businesses retain and grow their customer
base, as well as embedding longer term gains in
productivity and efficiency. While the attention
has been on managing the challenges, lenders
have also been supporting businesses with an
eye on growth.
As with personal banking customers, support
is always available for businesses struggling to
make their payments. We continue to encourage
any business worried about their finances to
have an early conversation with their finance
providers.
Access to cash
While the COVID-19 pandemic accelerated
the ongoing trend for consumers to turn from
cash to digital payments, we appreciate that
many still rely on cash and that technology
is not for everyone. Analysis also points to an
increased appetite to use cash during the costof-living
challenge to help budget income.
Access to cash remains a key priority for us.
So, in light of this, we worked alongside the
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 12

❝
Even if some of the headline
indicators around household or
business stress may look benign, there
are a whole spectrum of individual
circumstances underneath the
surface. Moreover, risks in the UK
and globally are ever present.
❝
Cash Action Group (CAG) and the Delivery
Authority which both consist of ten of
our member firms, consumer groups and
link to progress work against industry
commitments to preserve access to cash.
Over the past year, the number of new
banking hubs announced has reached
38 and counting. These hubs allow
customers from a wide range of banks
to access key banking facilities and
trusted advice in person within their own
community.
But that’s not to say there aren’t many
challenges, and the current economic
troubles fuel the number of customers
falling victim to domestic, financial and
economic abuse. UK Finance continues
to champion adoption of the Financial
Abuse Code, co-written with Surviving
Economic Abuse. The Code currently
has 40 signatories and counting, who are
committed to help protect their customers.
Economic crime
Fraud has a devastating impact on victims
and it is the most prevalent crime in
England and Wales, accounting for 41
percent of all crimes in the year to June
2022. Fraudsters will always capitalise
on people’s financial insecurities, and
the cost-of-living challenge proves no
different. However, the banking and
finance industry prevented £583.9m of
unauthorised fraud from getting into the
hands of criminals in the first half of 2022.
Our Dedicated Card & Payment Crime
Unit (DCPCU), an operational police
unit funded though members, saved
around £38m of fraud and seized £1.9m
of assets last year. In the same period,
they disrupted 19 organised crime groups,
arrested over 140 suspected criminals and
secured 44 convictions.
Meanwhile, our Take Five to Stop
Fraud campaign is a national campaign
that offers straightforward advice to
help everyone protect themselves from
fraud. The campaign aims to encourage
customers to stop and think whenever they
are asked for their money or information.
The rising cost-of-living is challenging
to many across the country. Whether a
business or personal banking customer,
we encourage everyone to stay aware of
scams.
The economic news of late has been
slightly better than feared and forecasters
are placing a lower probability on the
chance of recession this year. The industry
is fully aware that we are not out of the
woods. While the UK may dodge recession
in the technical sense, it will still feel like
one for many. Even if some of the headline
indicators around household or business
stress may look benign, there are a whole
spectrum of individual circumstances
underneath the surface. Moreover, risks
in the UK and globally are ever present.
The efforts of the industry to engage
and support customers during these
challenging times will continue.
Lee Hopley, UK Finance’s Director
of Economic Insights.
Additional reporting by Sean Feast and
Roshika Perera.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 13 continues on page 14 >

COMMERCIAL LENDING
POWERED
TO SUCCEED
WHEN a husband and
wife team were looking
to expand Kielder,
their specialist automotive
power tools
business, they fully
understood the critical importance of cashflow.
Paying suppliers and staff while waiting
to be paid themselves by some of the major
resellers was the challenge; the solution
was a tailored invoice ginance facility from
Optimum Finance.
Invoice finance is a method of cashflow
funding that uses receivables (invoices) as
the principal asset against which money can
be raised. Optimum Finance pays Kielder
an agreed percentage of the invoice value
as soon as it is submitted, driving access to
liquidity at the point of invoice as opposed to
needing to wait.
Mo Han, co-founder and Head of
Purchasing at Kielder, says the benefit of
Invoice Finance is that it releases cash into
the business almost immediately, regardless
of how long it takes a customer to finally pay:
“Optimum advances 85 percent of the invoice
value and that helps us not only pay our
own people and our key suppliers, but also
enables us to offer discounts on bulk orders
to our key customers.
“With some of our customers requiring
60-day payment terms, it enables us
to bridge the cashflow gap, and do so
with what is effectively our own money.
What’s especially good about it is that as we
grow, so the amount of cash available to us
also grows, and this will help us expand.”
High precision needs
The business was founded seven years ago
to deliver very high-precision tools to the
automotive market. Mo’s husband, Steve, a
former Rally driver, saw a gap in the market
that he felt was not being adequately served.
He thus set to work designing his own range
of power tools and associated products for
professional mechanics, working closely with
his Chinese partners. The result is a range
of tools sold through specialist retailers and
direct to the motorsport industry.
Early success and a good reception in
the market has been hampered by Brexit,
COVID-19, and the conflict in Ukraine. An
international client base, however, enables
Kielder to diversify risk, and the business
manages Sterling, US Dollar and Euro
accounts, adding a layer of resilience to its
trading arrangements.
Mo was already familiar with invoice
finance, having previously used a similar
facility provided by her main banking
partner. A change in funding policy,
however, obliged her to seek alternatives:
“It was a concentration issue,” she
explains. “Unfortunately, they reduced our
accessibility to cash. Lack of cash restricted
our growth and impacted our margin and
profitability. It wasn’t sustainable and so we
looked elsewhere.”
Among the providers Mo looked at was
Optimum Finance: “Other providers were
quite aggressive in their pricing but there
were hidden costs. Optimum Finance was
transparent in its pricing and offered good
value. We also managed to forge a strong
working relationship from the beginning.
Customer service is of the highest level and
our relationship manager, Jenn Bennett, is
always quick to respond.”
Now the ambition is to further grow the
business and increase market share: “We
want to be known as the ‘go to’ in this space,”
Mo concludes, “and build a brand known for
the innovation, quality and design of its tools.
“Having Invoice Finance to support our
cashflow helps me sleep at night.”
❝
“With some of our
customers requiring
60-day payment terms, it
enables us to bridge the
cashflow gap, and do so
with what is effectively
our own money.
What’s especially good
about it is that as we
grow, so the amount of
cash available to us also
grows, and this will help
us expand.”
❝
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 14

ESTABLISHED IN 2011, Piglet’s Pantry is
an award-winning food producer based
in Worthing, West Sussex. The business
supplies hand-filled pies, handmade
sausage rolls, cakes and biscuits to venues
up and down the UK, including football,
rugby, cricket and horseracing venues.
Employing 70 people the company has
seen its business triple over the last seven
years due to the high quality of its Britishmade
products.
During the pandemic, as venues
within traditional markets closed across
the country, Piglet’s Pantry saw an
opportunity to embark on a brand new
‘direct to consumer’ offering - afternoon
tea boxes. The result of this exciting new
initiative is that they have succeeded in
creating an additional business that is
worth £3m in year one alone.
Since they started delivering their handcrafted
cakes and bakes to doorsteps
across the country, the response has been
extraordinary, attracting numerous highprofile
celebrity endorsements, including
the cast of Made in Chelsea.
New location
Jo Hunter, Chief Food Lover at Piglet’s
Pantry, said that they were originally
thinking of putting in a mezzanine to
accommodate the new B2C business but
soon recognised that the level of demand
would mean that their existing premises
wouldn’t be big enough, so they started
Food for thought
looking actively for a new location for the
business, and a responsive and supportive
finance partner. She chose Investec: “In
addition to a dynamic working capital
facility that grows with our sales, they
provided us with a term loan to enable
us to take on the move to substantial new
premises, together with flexible leasing
solutions that have allowed us to acquire
the very latest equipment and vans,” she
explains.
“With Investec, we have immediate
visibility of funds and can access them far
more quickly than ever before. Scheduling
updates couldn’t be easier, and we can
Plastic fantastic
view our cash availability anywhere in
the world. Great technology is one thing,
great backup is another. The staff are
amazing, incredibly professional, and
swift to support us with quick decisions
when we need them.”
Such has been the success of its new B2C
business that with Investec’s support, it
has been able to move its entire operation
to a 28,000sq ft. building, with the capacity
to grow even further: “With sports venues
back in earnest and the hospitality market
fully opening up once again, the future for
Piglet’s Pantry is very exciting indeed,” Jo
adds.
“We have seen the number of client
sites grow from 70 to 160 and our turnover
double in some venues. Consequently,
our headcount has risen from 25 to
70, creating an entire infrastructure
comprising HR and marketing functions,
heads of savoury and heads of pastry,
as well as technical and quality control
departments. People love our products
and through word of mouth, we are fast
becoming the provider of choice for
sweet and savoury baked goods for both
hospitality venues and consumers across
the UK. Our brand awareness is now
through the roof and our distinctive pink
boxes are being recognised everywhere
we go.
“All of this has all been possible thanks
to the flexible funding we have secured
from Investec.”
A sustainable plastics manufacturer is
set to continue its impressive growth
trajectory by investing in new machinery
and production lines in order to increase
output.
Capital Valley Plastics is an awardwinning
business set-up by Michael
Hughes as a small recycling facility in
1987. As the business grew over the
years, it branched out by using recycled
materials to manufacture products for the
construction industry.
The business’s products include dampproof
membranes and damp-proof course,
which are designed to protect properties.
Capital Valley Plastics products are made
from 100 percent recycled materials,
where building regulations allow.
The business’s past and future growth
is supported by, independent business
funder, Bibby Financial Services that
provide a £2.5m invoice discounting
facility. This enables the business to
release cash from unpaid invoices,
providing working capital to allow the
Capital Valley Plastics to concentrate on
future growth.
Sustainability focus
Roger Philips, Managing Director
at Capital Valley Plastics, says that
sustainability remains very much at the
heart of his business: “We manufacture
9,000 tons worth of products each year, but
use recycled plastics wherever building
regulations allow. As a result, most of the
products we sell are 100 percent recycled.
“Our efforts to proactively and
relentlessly improve our technology
behind every aspect of the business,
mean that we are able to provide cuttingedge
products with a sophisticated and
reputable service. Increasing demand
from construction firms, coupled with our
increased product range and investment
in new production lines, has helped us go
from strength to strength in the market
place.”
Roger says that the funding partnership
with Bibby Financial Services has been
a key enabler of growth: “We’ve been
working with BFS for seven years, starting
with a smaller £1m facility. BFS has been
able to extend our funding over the years
in line with the growth of the business,
providing extra flexibility and giving us
access to the cash we needed to continue
to thrive.
“BFS really got to understand our
business and this is what sets it apart from
other finance companies. Its tailored
approach to funding is very much in
keeping with our own philosophy as a
business, making it the perfect business
partner as we strive to grow the company
further.”
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 15

INSOLVENCY
Fighting Fraud
How can credit managers protect themselves
against COVID-19 fraud?
AUTHOR – Giuseppe Parla
THERE’S no doubt about it –
COVID-19 fraud investigations are
impacting businesses of all shapes
and sizes across industry sectors.
But what do credit management
professionals need to know, and
do they need to be more vigilant?
Since HMRC first launched its investigation
into COVID-19 fraud last year, many potential
cases have come to light and about £1.2bn has
been either successfully recovered or blocked
by HMRC. However, this is just the tip of the
iceberg. A House of Commons Committee report,
published at the start of the year, confirmed
the Government’s disappointment that HMRC
is not being more ‘ambitious’ as it only expects
to recover a quarter of the estimated £4.5bn
lost as a result of fraud and error abuses of the
COVID-19 support schemes. At the beginning
of March 2023, the FT reported the closure of
HMRC’s COVID-19 fraud focused task force.
For businesses, the prevalence of COVID-19
fraud means there are significant financial
risks to look out for when managing credit lines
and overseeing payments from suppliers. For
example, if a supplier starts missing payment
deadlines, this could indicate that the business
is facing cashflow difficulties and creditor
debt could be mounting up. If the business
subsequently enters an insolvency process,
credit managers should be aware that if
directors have obtained a Business Bounce Back
Loan scheme (BBLs) or Coronavirus Business
Interruption Loan scheme (CBILs), the bank or
building society will likely offset the remaining
amount owed against any funds held in the bank
account.
The Insolvency Service is playing its part
in tackling COVID-19 fraud by prosecuting
directors and recovering funds where possible.
In particular, more staff have been recruited to
the investigation and enforcement team to follow
up allegations of COVID-19 fraud that come to
light. These investigations have led to an increase
in director disqualifications, which in
turn helps to discourage fraudulent
behaviour, thus minimising the risk
of fraud and the associated financial
losses. The number of disqualifications
had been stable at between 1,200 and
1,300 for the past seven years, but in
the year ending 31 March 2022, more
than 6,500 former directors were
facing active disqualification cases.
Insolvency Practitioners also have
a role to play. When a business
❝
Credit managers
should aim to learn
lessons from the
current situation
and take steps to
strengthen credit
line checks and
measures. For
example, they should
look out for warning
signs such as a
customer who has
been avoiding recent
communications.
❝
becomes formally insolvent, the appointed
insolvency Practitioner is tasked with reporting
on the directors conduct and if this highlights
civil recoveries or fraudulent activity involving
one of the COVID-19 support schemes, the
Insolvency Service will generally be keen to take
matters further. When reporting, insolvency
Practitioners will typically look for specific
evidence, such as CBILs and BBLs being used
to pay off personal debts or to buy assets for
personal use or furlough claims being made
when staff were still working. Decisions to
pursue the recovery of misappropriated funds
will depend on the likelihood of success and will
be a commercial decision for those pursuing
the action. Criminal prosecutions, as evidenced
by the recent prison sentences handed down,
serve as a timely reminder to directors who
think they may have got away with it, especially
after putting their company into an insolvency
process.
Credit managers should aim to learn lessons
from the current situation and take steps to
strengthen credit line checks and measures. For
example, they should look out for warning signs
such as a customer who has been avoiding recent
communications. They should also take extra
care when agreeing to supply goods or services
on credit terms that have been previously agreed
when the relationship was stronger.
Keeping communication lines open with
key suppliers remains vital and, if appropriate,
payment terms should be reviewed, discussed
and renegotiated. However, if communications
with a specific supplier breakdown altogether
and reasonable efforts have been made to
contact the business, then credit managers may
need to escalate matters. They could issue a letter
before action, which could help negotiations
where funds are available, but if this doesn’t bear
fruit, then further legal action will be required
and the customer relationship is likely to be
over. Detailed records of attempts to contact the
business should be kept as evidence and may
be useful information for an insolvency
Practitioner where allegations about
COVID-19 fraud arise.
For more information on the areas
covered within this article, please
contact the business recovery team at
Menzies: www.menzies.co.uk/creditorservices
Giuseppe Parla is a Director and
Licensed Insolvency Practitioner at
Menzies LLP.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 16

❝
The House of Commons Committee report, confirmed the
Government’s disappointment that HMRC is not being more ‘ambitious’
as it only expects to recover a quarter of the estimated £4.5bn lost as a result
of fraud and error abuses of the COVID-19 support schemes.
❝
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 17

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Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 18

INSOLVENCY
Model Laws
Recognition and enforcement of
insolvency-related judgments.
AUTHOR – Jamie Leader
THE recovery of debt can be hard
enough; never more so in times
of economic strife and where
the debtor is overseas. The risk
that you might have to return
the funds paid to you if your
counterparty becomes insolvent after payment
is even harder.
For 25 years, ever since the secretariat of
UNCITRAL, the United Nations Commission
on International Trade Law, published the
UNCITRAL Model Law on Cross-Border
Insolvency in May 1997, there have been model
laws in place to act as legal frameworks that
states can adopt to improve legal cooperation
with others.
In the field of restructuring and insolvency,
48 states have adopted the Model Law on Cross
Border-Insolvency (MLCBI) which provides for
the recognition of insolvency and restructuring
proceedings and associated relief. The MLCBI
was implemented by the UK in 2006 by the Cross
Border Insolvency Regulations 2006 (CBIR 2006)
and also forms the basis of the structure of the
EU Insolvency Regulation, albeit in modified
form.
In July 2022, the Insolvency Service published
Implementation of two UNCITRAL Model Laws
on Insolvency Consultation. This proposed
the implementation of two new model laws
produced by UNCITRAL.
The two model laws now under review by the
Insolvency Service complement and expand
the MLCBI. The first is the Model Law on
Recognition and Enforcement of Insolvency-
Related Judgments, which concerns crossborder
recognition of judgments associated with
insolvency proceedings – MLIJ. The second is
the Model Law on Enterprise Group Insolvency,
which is intended to facilitate coordination
between insolvency proceedings of different
entities within corporate groups.
We’re only concerned here with the proposals
in relation to the MLIJ.
The MLIJ defined
The MLCBI has been widely adopted across
the world and has significantly improved
global cooperation in relation to cross-border
insolvencies. However, although it provides
for the courts of adopting states to provide
recognition and assistance to foreign insolvency
officeholders in relation to a range of matters
relating to insolvency proceedings, its scope is
limited as regards legal proceedings that are
closely related to the insolvency proceedings.
❝
The proposed
implementation of
the MLIJ in the UK
is not a matter that
should be of interest
only to insolvency
professionals. How
and whether the
model law is adopted
is likely to affect
any party in the
UK that contracts
with counterparties
abroad.
❝
By way of example, proceedings might include
efforts to resolve disputes about the ownership
or sale of assets in the estate or claims to recover
assets that were transferred away before the
opening of the insolvency proceedings. As a
result, an insolvency officeholder may obtain
a judgment in the state where the insolvency
proceedings are ongoing but be unable to
enforce it abroad.
The MLIJ is intended to address this gap in the
MLCBI, by providing an additional framework
that states can adopt in order to recognise
and enforce such foreign insolvency-related
judgments in a predictable way.
The proposal matters
The proposed implementation of the MLIJ
in the UK is not a matter that should be of
interest only to insolvency professionals. How
and whether the model law is adopted is likely
to affect any party in the UK that contracts
with counterparties abroad, or which chooses
English law and jurisdiction to govern such
contracts. That is because it will determine
the degree of risk faced by such a party that if
its counterparty becomes insolvent in another
country insolvency judgments could be made
against it there and enforced in the UK.
A hypothetical example may help the
understanding of how adoption of the MLIJ
could change the risk for companies dealing
with foreign debtors.
An English company, Sellco, enters into a
contract with Buyco — an unrelated company
incorporated in Ruritania — for the sale of
machinery by Sellco to Buyco. The contract is
governed by English law and provides for the
exclusive jurisdiction of the English courts.
Buyco purchases the machinery and pays for
it in accordance with the contractual terms,
but then enters insolvency proceedings under
Ruritanian law.
Under the Ruritanian insolvency code, any
payments made by the insolvent company in
the two months before the insolvency filing are
deemed to be preferential and therefore void,
so that the amounts paid have to be returned
to the insolvent estate (with the relevant party
having an unsecured claim in the insolvency
proceedings instead).
The Ruritanian liquidator of Buyco therefore
demands repayment from Sellco of £1.2m that
was paid by Buyco in the two months preceding
the insolvency filing.
Under English law as it currently stands,
Sellco could be confident of its ability to ignore
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 19
continues on page 20 >

INSOLVENCY
AUTHOR – Jamie Leader
the liquidator's demand and, as a result, it could
have been more confident about contracting
with a Ruritanian company.
This is because, although the liquidator
might seek to have the Ruritanian insolvency
proceedings recognised in the UK under the
CBIR 2006, that would not allow for the payments
to be set aside on the basis of Ruritanian law or
empower the English court to recognise and
enforce a judgment of the Ruritanian courts to
set them aside. Such recognition could provide
a gateway for the liquidator to challenge the
payments to Sellco under English law, but
English law has no equivalent to the Ruritanian
rule and, on the facts identified above, it seems
unlikely that any such challenge would succeed:
The payments would only be likely to be set
aside as preferences, under s.239 Insolvency
Act 1986, if Buyco had made them because of a
desire to prefer Sellco, and there is no reason to
infer such a desire.
Finally, if the liquidator had obtained a
judgment from the Ruritanian court, he would
not be able to enforce it in England under
common law. The common law rule – set
out in the leading case of Rubin and another
v Eurofinance SA and others [2012] UKSC 46 –
provides that a foreign monetary insolvencyrelated
judgment can be recognised only if there
is an exclusive jurisdiction clause in favour of
the originating state; or the defendant is present
in, or has submitted to, the overseas jurisdiction
where the judgment was issued. As Sellco has
neither agreed or submitted to the jurisdiction
of the Ruritanian courts, and is not in Ruritania,
the judgment should not be enforceable at
common law.
The effect of MLIJ
The Insolvency Service's proposal is that
the MLIJ should be brought into English law
through the adoption of what is called ‘Article X’:
one of the options identified in the MLIJ itself,
which falls short of adoption of the model law
in full.
Article X states that: ‘Notwithstanding any
prior interpretation to the contrary, the relief
available under [the CBIR] includes recognition
and enforcement of a judgment.’
The essential effect of adopting Article X
would therefore be that the English court would
be empowered to recognise foreign insolvency
judgments under the CBIR 2006; it would
overturn the decision in Rubin v. Eurofinance to
that extent.
As will be clear from its wording, Article X
simply provides that insolvency judgments can
be recognised and enforced under the CBIR.
It does not include any guidance as regards
the circumstances in which recognition and
enforcement should (or should not) be granted.
In order to address this point, the Insolvency
Service has said that it will introduce a new
regulation providing ‘a list of discretionary,
❝
What is particularly
striking is that there
is no reference in the
consultation to any
choice of law rules,
or safe harbours.
illustrative, and non-exhaustive grounds of
refusal, that courts can rely on when deciding
whether or not to recognise and enforce a
foreign judgment.’
It is said that these will be based on article 14
of the MLIJ, which sets out specific grounds for
refusal of the otherwise mandatory recognition
of insolvency-related judgments that the
full MLIJ requires (including, for example, a
judgment being obtained by fraud, creditors’
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 20

ights not being adequately protected,
and a defendant not having sufficient
time to arrange their defence).
The proposed list would undoubtedly
provide some further clarity, but the
fact that the grounds listed would
be ‘discretionary, illustrative, and
non-exhaustive' would seem to leave
significant uncertainty as regards how
the courts may approach applications for
recognition – and, of course, we do not yet
know what grounds the list will contain
What is particularly striking is that
there is no reference in the consultation
to any choice of law rules, or safe
harbours, that would protect contracting
parties who have expressly chosen
English law and jurisdiction and have
not willingly submitted themselves to the
jurisdiction of any state which may open
insolvency proceedings in relation to
their counterparty.
Returning to the scenario above, the
implementation of the MLIJ through
Article X could provide a means for the
liquidator of Buyco to obtain a judgment
against Sellco from the Ruritanian court
and seek to enforce that judgment in
the UK under the CBIR 2006. Whether
the judgment would be enforced would
depend on the court's discretion and
the grounds identified by the proposed
regulations. However, on the face of the
proposal as set out in the consultation,
it does not seem that the fact that Sellco
and Buyco expressly chose English law
and jurisdiction will provide Sellco with
a defence.
Will the MLIJ be implemented?
The Insolvency Service consultation
closed at the end of September 2022.
Although responses to the consultation
have not been published, anecdotal
reports suggest that the Insolvency
Service received a number of responses
expressing strong views about the
proposal but without a clear consensus. It
appears that some respondents supported
the overarching aim of streamlining
international cooperation, and the UK
being seen to be in the vanguard of such
initiatives, but there were expressions of
concern about the uncertainty that Article
X could create for contracting parties,
at least without clear rules on choice of
law and how the courts will decide on
recognition. That is likely, for many, to be
the primary concern.
Furthermore, although the UK
Government may wish to demonstrate
leadership in adopting the MLIJ, and
thus to burnish the reputation of the UK
as a state that is open and cooperative in
restructuring and insolvency matters, the
proposed changes would seem to deliver
few direct benefits to UK companies
or to the UK as a jurisdiction of choice
for others. Indeed, it could even create
incentives for contracting parties to
structure their contracts outside the UK.
In summary
As matters stand, therefore, it remains
unclear if the proposal will be adopted,
whether in the form of Article X or in
some other way, and — if so — when the
changes will come into force. We await
the Insolvency Service's decision with
interest.
Jamie Leader is a Partner and Head of
Insolvency and Restructuring Disputes,
Enyo Law LLP.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 21

Rising stars
The first in a new series which puts
the spotlight on rising stars who are
demonstrating outstanding professionalism
and commitment to positive change within
the credit industry.
The personal touch
How a new Credit Manager at
Clarins UK shaped her management
style and her team to bring about
significant change.
AUTHOR – Melanie York
Terri-Louise Taylor
MCICM(Grad)
TERRI-Louise Taylor MCICM
(Grad) joined luxury skincare
and cosmetics brand Clarins
UK two years ago and
undertook one of the most
challenging projects of her
17-year career; leading the collections team
to achieve its CICMQ accreditation for the
first time. It was a daunting prospect for
someone in their first management role.
Wanting to get real world experience,
Terri entered the credit world when she
was just 16 years old. In the following
years, she worked in various industries,
including five years as a standalone credit
controller. All the while she was studying
for her CICM qualifications. By the time
she joined Clarins she had passed the Level
5 which she says made all the difference to
her career.
“I just don't think I would have had the
confidence to be a credit manager, having
not gone through my Level 5 qualifications.
Learning how to manage a team, how to
make decisive decisions and understand
the impact that credit makes.”
Being new to managing teams she was
keen to put her learning into practice.
She had tons of ideas and energy, but she
was given some sage advice by Deborah
Pennington FCICM, who was Head of
Credit. Deborah told Terri to “get to know
the team first. Get to know the company
first. Then one by one, make your changes
slowly.”
Terri is thankful for the advice: “I
would have come in all guns blazing,” she
says “and I would have tried to change
everything, and probably would have lost
the respect of my team and the wider
team.”
Building the team
Instead, Terri started to build team bonds
remotely during lockdown with daily
zoom calls and 15-minute coffee morning
catch ups which are not work-related. “It’s
important,” she says, “to keep them light-
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 22

hearted and have that fun element. We've also got
a WhatsApp team chat and people sending pictures
of their kids. It's more like a friendship chat than a
work chat.”
Under Deborah’s guidance, CICMQ was set as
a target to develop the group. With the support of
Kevin Gough, Interim Head of Credit, Terri was
tasked with managing the process.
As Clarins was and still is migrating to a new global
system it wasn’t going to be easy. The technology was
being upgraded so that systems could talk better to
one another, data could be extracted more easily and
overall, the quality of reporting could be improved.
An enormous task
“This was the biggest challenge I’ve come across
so far,” Terri says. “We had to start from scratch to
get all the big things we needed for CICMQ. Tasks
ranged from writing a local credit policy, to creating
a training matrix for the team to make sure that I'm
continuously progressing them, engaging them and
keeping them interested in their roles.”
There were lots of helpful templates, webinars and
information on the CICM website, which Terri spent
hours going through, but it was also the people that
Terri came across that helped make the difference:
“Karen Tuffs (FCICM) from the accreditation team
at CICMQ, was amazing at giving clear guidance on
how to complete the tasks.” Terri learnt the value
of asking for help, and getting almost everything
checked by Deborah or by Karen to make sure it was
best practice.
She also relied on the support of her team from
the outset. Getting them involved early and having
conversations around how to improve the current
processes was crucial. “There's no point me saying
this is how I want you to do it if it doesn't work with
what they need,” she says. “They are the ones that
are using it all the time.”
So Terri’s approach was to show the team all
the tasks they needed to complete for a CICMQ
accreditation. “I would then ask them What's your
idea? How do you want it to look?”
The final reckoning
The team completed the programme, and it
concluded with an onsite assessment day in
Harlow. When Karen came to perform the CICMQ
assessment, she spent the whole day speaking to
stakeholders and examining the new reporting
processes. “She spoke to every member of the team,”
Terri says, “going through individual responsibilities
and the processes they had to follow. She checked all
❝
“I just don't
think I would
have had the
confidence to be
a credit manager,
having not gone
through my Level
5 qualifications.
Learning how to
manage a team,
how to make
decisive decisions
and understand
the impact that
credit makes.”
❝
the documentation was correct, getting
a general feel for us as a team, how we
work together and then interviewed other
teams like sales and customer services to
get a feel for us through them.”
Terri believes the CICMQ accreditation
which was achieved in November 2022 is
benefitting the Clarins credit team and
the business. “I think it has definitely
improved our DSOs,” she says.
And there are other benefits. “Before
the CICMQ process, I never really shared
the reporting figures or results with the
team. Now they get really excited every
month when I'm about to report the DSO
figures.”
Not only are the team asking, ‘how did
we do?’ Terri finds they are also much more
excited about the bigger picture. She also
says there is more team engagement. “I
think having a plan for their progression,
making sure that they are involved, has
become more of a focus.”
Understanding the wider picture
Looking back now, Terri says she
surprised herself by achieving CICMQ
accreditation. “I didn't have management
experience and I never understood the
wider business impact of credit control.”
But through CICMQ she learnt more
about credit and how it integrates into
the wider finance team and business
objectives.
“Grasping all of this in quick succession,
and then trying to plan how we’re going
to fit better into that space is something
I could not have done alone. I couldn’t
have done that without having a really
good and seasoned mentor to help guide
me through it. Deborah really did take me
under her wing and gave me masses of
knowledge, constantly coaching me and
giving me good feedback.”
Terri’s advice for other new or not so new
credit managers aspiring to further their
careers and the professional development
of their team is to find a mentor. “Find a
seasoned CICM professional, that you
trust and that you can bounce your ideas
off. It will make all the difference in terms
of getting things right and the impact you
can have.”
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 23

OPINION
Contracting Costs
Contractual provisions and other mechanisms
for dealing with spiralling costs.
AUTHOR – Adam Bernstein
IN a fast-moving world where prices
are rising at a pace not seen in
decades, firms are struggling to
keep pace and, worryingly, stay
in business. The natural reaction
to rising prices is to pass on costs
directly to customers.
However, that’s not always possible and
for some businesses – those involved in
restructuring – high inflation is peeling off
firms on the cusp of profitability.
The FT reported mid-February (2023) that
corporate distress has been held artificially
low through pandemic funding and low
interest rates. But with increasing rates and the
end of support comes rising levels of failure.
In December 2022, corporate insolvencies
rose sharply in England and Wales to reach
1,964 — a third higher than the same month in
2021, and 76 percent higher than in December
2019, before the pandemic. The story is the
same for February with insolvencies of 1,783,
up 17 percent on the 1,518 insolvencies in
February 2022 and up 33 percent on the 1,345
in February 2020.
And the expectation is that these numbers
will keep rising over the next couple of years.
So, what can a firm do to protect its position in
respect of difficult markets?
James Crayton, Partner and Head of
Commercial at Walker Morris, says that
to combat skyrocketing energy bills and
material and labour shortages, firms should
initially conduct an assessment of their
current commercial arrangements - including
considering their own supplier relationships
as well as their relationships with customers
– “to understand whether there are any
contractual or common law remedies which
can provide them with flexibility or assistance
to maintain good relationships, whilst not
detrimentally impacting their finances.”
Fixed price contracts
The aim of the process is to get a fix on the
current position. And this starts, clearly, with
the current contractual position on pricing,
especially where the firm is party to long-term
supply contracts. Crayton says that “while the
simplest price mechanism is a fixed price,
often more detailed mechanisms to determine
price are included in longer term agreements
and firms should assess if this price is broken
down into components which may be able to
be changed.”
This is particularly the case in circumstances
where the firm can demonstrate that the cost
of supply has significantly increased. But if
the contract specifies a fixed price, then he
advises considering if the contract contains
provisions with regard to price indexation.
“With such a clause,” says Crayton, “the
contract will provide for the price to increase
in relation to an index, such as the Retail
Price Index (RPI) or the Consumer Price Index
(CPI).”
However, without an express provision,
Crayton says that “the price specified in the
contract will not adjust in line with either
of these indexes, or any other method for
measuring inflation.”
Similarly, with general price reviews or
adjustments, there needs to be an express
clause in its agreement providing for the right
to do so. Here Crayton warns that “vague
statements that variations may be agreed are
unlikely to be enforceable.” He adds that the
contract may contain provisions for an annual
price review, but “these tend to be about
setting a framework for prices to be agreed,
rather than a unilateral right to increase.”
Force Majeure
Next to consider is the force majeure clause.
It is not a ‘get out of jail free’ card but may,
in some circumstances, suspend a party’s
obligations when they are prevented from
completing an agreement by events outside of
their control. Sometimes it includes rights to
terminate.
Crayton says that these events are often
listed within the clause or definition. He
notes, however, that “the supplier would need
to be able to demonstrate that circumstances
beyond its control prohibit it from complying.
A general change in the economic climate or
market conditions affecting the profitability
of a contract is not likely to be considered a
force majeure event.”
And where there is no force majeure clause,
Crayton says that a supplier “may have to
rely on the doctrine of frustration, which
is notoriously limited in its application.” In
essence, this can set aside a contract where an
unforeseen event either renders contractual
obligations impossible, or radically changes
the principal purpose for entering into the
contract.
Other contractual terms
Other elements of the contract that Crayton
advises looking at are “the basis of the
agreement, and whether the firm is bound
to supply pursuant to it, or whether it acts
as a framework under which call-off orders/
purchase orders are issued and subject to
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 24

❝
The aim of the process is to get a fix on the current position.
And this starts, clearly, with the current contractual position on pricing,
especially where the firm is party to long-term supply contracts.
❝
acceptance.” Of course, refusal means no
revenue and may risk damaging customer
relationships. However, as Crayton says, it
allows a pause in supply “in circumstances
where cost price rises are making it unprofitable
for the seller to continue to supply…and it may
also be helpful leverage in discussions with
customers requesting a price increase.”
Then there’s a material adverse change
which Crayton defines as “an event or
circumstances which have a material adverse
effect on the ability of the parties to perform
their obligations.” He says that while this is
not something typically seen in short-form
standard terms and conditions, “it may be
included in a long form, negotiated agreement
and may allow for termination or suspension of
obligations and a renegotiation of the contract.”
The fall-back position is termination of the
agreement altogether. It’s the least favourable
option and carries risks. As Crayton points out,
“care should be taken to properly assess the
contractual right to terminate in accordance
with the terms of the contract; it is likely that
the seller will need to continue to supply up
to the expiry of any notice period” – even if it’s
possible to terminate.
The absence of contractual provisions
So, if with careful review of the contract it’s
found that there are no suitable provisions
embedded in the agreements, or, worse, they
offer little or insufficient protection from the
various price pressures the firm is facing are
there any other options that can be considered?
Crayton says that the obvious, and most
effective and co-operative approach is to
maintain an open dialogue with customers. He
says that “they are unlikely to be surprised by
requests for price increases and it is something
that we are seeing a large number of our clients
undertaking across various market sectors.”
He continues: “Where the request is genuine,
rather than exploitative, and particularly
where it can be backed up by evidence, there
may be an opportunity to vary the agreement
without the need to terminate. Customers may
be willing to accept this in order to guarantee
continuity of supply, or where there are
limited alternative suppliers.” Interestingly,
Crayton highlights the fact that it is likely that
alternative suppliers the customer might turn
to will be facing the same challenges, and the
customer may therefore have limited options
to find an alternative. Regardless, he advises
that “any commercial discussions should
be documented, and the formal contractual
variation procedure followed if applicable.”
Where a firm is able to renegotiate, and
certainly for any new agreements entered into,
as Crayton emphasises, “they should ensure
their contractual provisions provide adequate
protection for any ongoing or new challenges
faced due to cost price increases.”
He explains that his firm has assisted clients
in many industries in preparing wording to
include in their quotes which reserves the right
to amend prices in circumstances where there
are material increases in input costs, including
energy, labour, and fuel. That said, he adds a
proviso: “Whilst we have not seen evidence of
these types of provisions being tested recently
and there is of course the risk that there is
a challenge regarding contract formation or
a battle of the forms scenario, it is likely to
be more beneficial than not to include such
wording.”
Another tack is to add wording to quotes
that state that quotes only remain open for
acceptance for a short time period, and future
supply will be subject to updated quotes, to
reflect the market at that time.
Looking to the future, Crayton highly
recommends detailed thought about the use
of various pricing mechanisms and whether
it would help to link them to inflation, or at
the least, have price reviews at certain points
throughout the contractual period where the
parties can renegotiate the price. And the
market is moving in his experience. As he
says, “we are seeing a trend towards including
indexes or pre-agreed price rises linked to
certain commodities and a move away from the
price being fixed for the term of the agreement.”
His last suggestion is for sellers to consider
whether they want to commit to supplying ‘a
certain volume’ for a certain price, or whether
they want to work on a purchase order basis.
As he highlights, “the advantage of having a
predetermined volume of business detailed
in the contract is that it provides certainty for
both the seller and the customer. However, as
seen by the cost-of-living crisis, the economic
climate is unpredictable, and a more flexible
agreement may be more beneficial, such as
supplying on an ‘order-by-order.”
Summary
Price rises are inevitable, especially so in today’s
economic environment. While such rises are
bound to be unwelcome, a combination of
suitable contracts and the right approach may
make them more palatable.
Adam Bernstein is a freelance finance writer.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 25

OPINION
Future Imperfect
A panel of leading industry experts share their
take on the credit landscape in 2023.
AUTHOR – Roshika Perera
THE economic forecasts at
the turn of the year didn’t
make for cheery reading: the
OBR predicted a 1.6 percent
contraction and the BoE,
believing a recession to be
underway already, expected it to continue
until mid-2024, a two-year recession that
would have been the longest on record.
Yet, with the year's first quarter
behind us, the reality didn’t prove as
dire as predicted. Britain has – for now -
swerved a recession, having avoided two
consecutive quarters of negative growth.
Which begs the question: has the UK
economy finally turned a corner and if so,
what impact will that have on the credit
landscape?
To help reassess what the remainder of
2023 has in store for the credit industry,
Esker, provider of AI-driven business
solutions, hosted a webinar at the end
of March. It brought together a panel of
experts who discussed topics ranging
from the economy, insolvencies, credit
risk, and the future role of technology in
credit collections.
A matter of perspective
Markus Kuger, Chief Economic Advisor at
Baker Ing, began the session by providing
his assessment of the macroeconomy
with the caveat that it is all a matter
of perspective, for there are figures to
satisfy both optimists and pessimists.
Starting with the reasons for optimism,
Markus highlighted the improvements in
forward-looking indicators that explain
the narrow escape from a recession and
act as a sign of hope for the future: “Both
private sector output - as seen in the
PMI Composite Output Index - and the
Consumer Confidence Index are on an
upward trajectory,” he said. “Overall, it
appears as though pessimism is waning.”
Inflation, he believes, is the key driver
behind this hopeful trend. While it
currently sits at 10.4 percent, it is gradually
declining, having peaked in October: “The
Spring Budget provided some hope, with
the OBR predicting that inflation would
drop below three percent later this year,
getting us closer to the BoE’s target rate of
two percent.”
For those inclined to take a more
pessimistic view, there are good reasons
for doing so, chief among them being
the trends in real GDP growth: “The most
recent forecasts show that growth will
contract by 0.4 to 0.6 percent and the UK
will end the year as the worst performing
G7 economy.”
While Markus doesn’t foresee a
recession on the horizon, he does believe
the year will continue to be defined by
great financial challenges, including a
rise in credit risk: “With slow growth and
high-interest rates, getting access to credit
won’t get any easier and the likelihood
of late-payment and non-payment will
increase.”
Insolvency trends
When COVID hit, a spike in insolvencies
was bound to follow. Yet perhaps
surprisingly, the scale of post-pandemic
insolvencies has been “a gentle wave, not
a tsunami,” according to the next speaker,
Lucy Fulmer, Head of Creditor Markets
Team at PwC and qualified insolvency
practitioner. She says: “We have most
definitely seen an upward trend. The
number of insolvencies in 2022 is the
highest since 2009. But there's an element
of catch-up with these figures: we had
a very low level of insolvencies during
COVID, and now we’re seeing that wash
through.”
She believes these figures are largely the
result of creditors’ voluntary liquidations,
although she is beginning to notice a rise
in compulsory liquidations: “More and
more directors are throwing the towel in,
unable to cope with the debt burden. And
then there are many companies that were
set up purely to take advantage of Bounce
Back Loans, which HMRC is beginning to
tackle aggressively.”
However, deciphering these figures by
company size paints a less frightening
picture: “Over 90 percent of all the
insolvencies we saw last year were
businesses with less than £1m of turnover.
So, although these numbers are high, the
level of businesses being affected is at the
low end of the market. And we haven’t
yet seen this wave encroach on the midmarket.”
Given the volatility in financial markets
and the increasing credit risk, why have
insolvencies been lower than expected?
Lucy suggested it can largely be attributed
to private investors: “The good news is that
there's still enough access to capital and
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 26

❝
Recounting the trends his firm is documenting, he warned that a perfect storm is
gathering for struggling businesses: “We’ve seen just short of 3,800 applications
for winding-up petitions in the first quarter, which is quite a dramatic increase.’’
– Craig Evans, CEO of Company Watch
❝
people are still investing. There are plenty
of cases where shareholders are willing to
put more money into a distressed business
to keep it afloat.”
Nevertheless, Lucy warns of the need for
caution when lending in this tumultuous
climate: “It’s always wise to look as closely
as possible at a company’s debt maturity,
personal guarantees, dividend payments
and refinancing commitments before
lending.”
Automating credit
Craig Evans, CEO of Company Watch,
agreed with Lucy’s assessment that
compulsory insolvencies are on the
rise. Recounting the trends his firm
is documenting, he warned that a
perfect storm is gathering for struggling
businesses: “We’ve seen just short of 3,800
applications for winding-up petitions in
the first quarter, which is quite a dramatic
increase. The H-Score at Company Watch
(a tool that predicts likely business
failures) has placed nearly one million
companies into the warning zone area,
that’s an unprecedented figure.
“My bottom dollar is on zombie
companies, which are technically
insolvent and account for around
£310bn of debt in total, finally going into
insolvency with big numbers.”
Craig also discussed how the pandemic
brought a new wave of automation
into credit operations: “COVID forced
credit teams to shift into a virtual
world. We began to see a significant
increase in online applications, and
companies adopted automation and other
technologies to deal with this new reality.”
And it’s rare to find any credit
professional who would now forego
the benefits of automation: “These
tools enable our clients to forecast
potential risks by gathering data such as
management accounts or scenarios of
where the company could be 6-12 months
in the future. As a result, they can make
more informed decisions.”
Yet, the technology is far from making
credit managers redundant. While
it is capable of automating manual
underwriting processes, making credit
decisions is not a matter of black or white:
“There are always grey areas in credit
and in this climate, those grey areas are
getting bigger. Although credit risk
is increasing, credit teams are under
pressure to provide credit, and companies
rely on credit managers using their
human evaluation to make the right
decision.”
Labour market trends
With the good news that humans are not
being replaced by AI, the final speaker,
Natascha Whitehead, Business Director
at Hays Credit Management, went on
to discuss labour market trends in the
industry and the wider economy.
She believes there’s a new rule for
companies looking to recruit in the postpandemic
era: “They need to offer a hybrid
working model, where employees only
need to be in the office two to three days
a week. From my experience, a company
that mandates employees to come into
office five days a week will alienate most
candidates.”
A greater challenge for companies,
however, is the trend in salaries. With real
time earnings being the lowest since 2001,
Natascha warns that companies need to
work harder to attract the right candidates:
“Salaries are increasing as there is a high
demand for and shortage of talent. But
there are other ways that companies can
stand out, by offering a flexible working
model, an attractive benefits package, a
good company culture, and so on.”
The unemployment rate in the UK
remains low at 3.7 percent and the
employment rate exceptionally high at
75.7 percent. Yet it may be the remaining
20.6 percent, classed as economically
inactive, that is driving the disparity in
the labour market: “This economically
inactive group includes many people who
retired early during COVID. We’re working
with our clients to try and attract them
back into the job market. But companies
should also consider the other option –
recruiting candidates for their potential
rather than the skills they have at the
moment.”
Natascha ended with a final piece of
advice for businesses: “It’s well worth
investing in your own team by ensuring
you’re paying the market rate and
upskilling - that will stop you having to
get into the bun fight that is the world of
recruitment.”
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 27

CICM TRAINING
Training courses that offer high-quality approaches
to credit-related topics and practical skills
Now, more than ever, the Credit Management and Collections industry
is seeing drastic changes and impacts that affect the day-to-day roles of
Credit and Collections teams.
CICM Training offers high-quality approaches to credit-related topics.
Granting you the practical skills and necessary tools to use in your
workplace and the ever-changing industry. A highly qualified trainer, with
an array of credit management experience, will grant you the knowledge,
improved results, and greater confidence you need for your teams to
succeed in the Credit Management profession.
Get trained with your
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Credit Management training
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 28

On-Demand | Online | Face-to-Face
METHODS OF DELIVERY
CICM Training courses can be delivered through a variety
of options, ensuring a range of opportunities for your
teams to be trained on the most up-to-date methods in
CICM On-Demand
Training
CICM Online
Training
CICM Face-to-Face
Training
On-Demand training can be viewed anytime, anywhere with our downloadable
training videos.
Online training will be for those who find it easy to learn from the space
of their home or office.
Face-to-face training It’s been a long time coming but now you can mingle and
learn together in the same room as your colleagues and peers.
TRAINING COURSES
CICM have a collection of training courses to meet the needs of your Credit and
Collections’ teams. Take a look at the courses below and start training towards
the CICM Professional Standard.
Advanced Skills in Collections • Best Practice Approach to Collections
Best Practice Skills to Assess Credit Risk • Collect that Cash • Credit Bootcamp
Effective Communication in the Credit Role • Emergency Guide to Credit
Harness your leadership Style • Know Your Customer • Managing Insolvency
Reflect and Develop • Set Targets that Work
For more details, visit our website, scan the
barcode or contact us at info@cicm.com
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 29

OPINION
By the sword divided
Credit management appears divided between
professional and not so professional practitioners.
AUTHOR – Stephen Lewis FCICM
AFTER some 45 years working
in the commercial debt
collection industry, I retired
a year ago, having been
involved in most aspects of
commercial and consumer
collection as well as training and industry
activity in general. I cannot deny that it has
been a very difficult 12 months.
I did not realise how much I would miss
the fast pace of the industry, even though
the stresses of collection both from a client
and customer perspective were enormous,
not to mention the stresses of the day-today
running of any business, it has left a
massive void I am anxious to fill, but from
a more relaxed and less time/life consuming
position – if possible.
People say it will get easier to relax and
concentrate on hobbies and the like, but
I must admit that presently I have found
better comfort in offering my services on
a limited consultancy basis to those that
contact me or who are recommended and
more importantly the added opportunity
to give something back to the industry
using my experience, gained within credit
management.
It has already given me some insights into
collection and training that I do not think
I would have acknowledged or noticed if
continuing in my past daily work activity.
Training operations
I have been lucky enough to have been
approached by some large and small
commercial businesses to look at their
current credit control and training
operations and offer some advice and
recommendations. It has also allowed
me to look at the way some businesses
operate from a perspective that I would not
previously have seen.
There is no doubt, to state the obvious,
that many businesses over the past three
years or so have experienced more ups
and downs than needed: the back end of
COVID-19, unprecedented economic swings,
discussion and argument over ‘hybrid’
working, and as a consequence dealing with
all manner of new business terms requiring
even more contemplation before getting
on with the business of selling and making
profits. Recent data is showing a drastic rise
in corporate insolvencies and depressed
consumer demand but at the same time
there are encouraging recovery figures
from Government painting a better picture
than last year, at least. The Insolvency
Practitioners will be rubbing their hands,
perhaps an article for another day!
What has become more obvious to me
over this last year of being a little more on
the outside of the industry is that despite all
the rhetoric surrounding ‘faster payment,’
from FSB, CBI, industry and national press,
I cannot detect any real improvement in
payment times. In fact, I am seeing some
worrying gaps appearing between SMEs
and larger businesses both in the way
payments are being made and credit control
procedures and customer facing operations
in general. It may be a snap shot but I do
think it significant, particularly in the light
of recent comments by the FSB regarding
their view that SMEs are being good about
all things ‘credit control and payments wise’
and larger firms being ‘bad’ in all respects.
Better halves
It cannot be denied that credit management
has always been divided into two halves.
The first half: those reading this article
(hopefully to the end) through this
representative bastion of credit excellence
are usually those at the upper end of
business and credit management. By that I
mean, obviously, those that are members of
the CICM, including those highly qualified
by experience and/or qualification, those
working within businesses, including
debt collection companies, who know
and recognise the importance of training,
legislation, compliance, FCA and other
regulatory obligations.
In this sector we all rightly seek
qualification, accreditation and recognition
through training, examination and the
workplace as well as industry opportunity,
all highly commendable and necessary to
advance credit management in all aspects.
The other half are those businesses that
have hardly heard of the CICM or CSA (in
relation to The Credit Services Association –
not the Child Support Agency), if at all. This
half just about cover themselves with ‘Private
and Regulatory Policy’ on their website and
try their best to be compliant within all
aspects of credit control and collection that
they have difficulty understanding because
they are too busy trying to earn a profit on a
day-to-day basis. A generalisation, if a little
unfair, because there are many SMEs in
both halves that are highly professional and
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 30

❝
Many companies delay payment because they can and that
still persists. It is that gap between the larger suppliers and the
smaller firms that seems to be growing rather than shrinking,
in my recent experience.
❝
seek to promote that professionalism
through their products and services.
But they come up against pressures that
can be quite unfair and only seem to be
apparent to the smaller operator.
Narrow margins
These smaller businesses are often
working within very narrow cashflow/
profit margins. If they do not get paid
in a reasonable time, they cannot pay
their suppliers. If the suppliers are
like minded a camaraderie can often
be established so that the SMEs can
work well and create profits throughout
the supply and manufacturing chain.
This is very relevant in the co-operative
operations of small manufacturers, the
farming industry and to some degree
boutique retail operations now moving
into the high street, particularly as we
see the decline of multi-chain retailers
regrouping and resizing to fit the current
economic climate.
These smaller businesses, in many
instances, do not operate with the benefit
of highly trained and credit management
qualified staff, although still skilled in
their sector. Not because they do not
want training or qualifications, but
often because proprietorships and small
partnerships or small limited companies
are trying to keep running costs low
or have staffing limitations. It is not a
criticism but a fact of business life.
My involvement recently with some
of these businesses has highlighted
the pressure they are under from
larger suppliers who are not always
transparent about their own supplier
payment policies and which are rarely
documented within their own credit
control/collection procedures. As has
always been the case, many still operate
an A/B/C priority list regarding how they
pay suppliers, particularly smaller ones.
It is still an uncomfortable fact that
many large suppliers make it difficult
to contact relevant departments when it
comes to payment requests. It is always
far easier when trying to contact the sales
department of course (always a main
contact area for me when encountering
difficulty). Whether by design or
accident it is increasingly noticeable
that companies invite contact only by
email; even addresses are hard to find. It
can also be frustrating when companies
outsource their accounting function,
accounts receivable and payable.
I have no wish to degrade outsourcing
or the companies used but it does often
mean payments can be delayed because
there is a longer route to take when
trying to solve a problem be it a credit
issue or otherwise. It does also add to
the DSOs of those seeking payment for
goods or services. In some instances ,the
training and qualifications within the
management and staff of the originating
company are not transferred to the
outsource facility. This then shows the
originating company in a bad light
and the perception of inefficiency is
promoted amongst customers and
suppliers alike.
Adding complexity
I appreciate that size and scale adds to
the complexity of credit control and
collection so I do not think it will be
possible to legislate fully to ensure 30-
day payments as the absolute norm for
general business. It could, perhaps, be
the norm within Government/Local
Authority but we saw how difficult that
was and still is when the initial Late
Payment Act came into legislation.
In a capitalist society with free
business will, all be it in a necessary
regulated environment, there will
always be reasons for payments outside
of terms, from the cynical protection of
cash to the genuine sorting of queries.
Many companies still rely upon credit
and using monies on a cheaper basis by
delaying payments in order to survive
and amongst many larger and smaller
businesses that will always be the case.
Many companies delay payment
because they can and that still persists. It
is that gap between the larger suppliers
and the smaller firms that seems to
be growing rather than shrinking, in
my recent experience. It may not be
factually proven by figures available
through various statistical means but it
is the perception that exists and we know
how powerful that is.
Stephen Lewis FCICM
is a credit and collections consultant.
slconsultancy51@gmail.com
www.stephenlewisconsultancy.com
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 31

International Trade
Monthly round-up of the latest stories
in global trade by Andrea Kirkby.
New Brexit rules could
take time to bed in
SOME will be relieved that the
Government has concluded
new post-Brexit trading rules
with the EU. Others just want to
wind the clock back to 22 June
2016.
However, the new Windsor Framework
has been agreed and is to come fully into
operation if approved by parliament.
In essence, the framework proposes a
phased introduction of new rules over this
year, in 2024 and out to 2025. It addresses
the customs checks and bureaucracy
that have hurt businesses; British goods
staying in Northern Ireland will use a
green lane with minimal customs checks
while goods going into Ireland – and the
EU – will take a red lane.
The deal also tries to address the
concerns of unionist politicians and
Brexiters who felt that the protocol
undermined Northern Ireland’s position
within the UK and compromised its
sovereignty. The framework removes 1,700
pages of EU law and limits the number of
EU rules to the minimum needed (three
percent), to ensure Northern Ireland’s
continued access to the EU’s single
market while avoiding a hard border on
the island.
Crucially, there’s a Stormont Brake
which gives the Northern Ireland
assembly a veto on any new or amended
EU laws taking effect in the province.
The immediate impact of the deal
is that firms shipping to Ireland and
Northern Ireland will have to reconsider
how they label goods with wording such
as ‘not for the EU’. Producers of fresh
meats, such as sausages, and dairy
products will have to start labelling goods
for sale in Northern Ireland from this
October with the cost being covered by the
Government.
From October 2024 all other dairy
products, such as UHT milk and butter,
will need to be relabelled and by July 2025
this will apply to fish, fruit and vegetables
and ‘composite products’ such as ready
meals.
There is much detail still to be thrashed
out, but exporters need to be on top of
this as soon as possible. The detail, as it
emerges, will be on GOV.UK.
BEWARE THE INFLUENCE
OF THE DE-INFLUENCER
IF you’re a firm that relies on social
media, you need to be aware of the ‘deinfluencer’.
A report in the Wall Street
Journal highlights one TikTok user,
Maddie Wells from Kentucky in the US.
With experience as a shop assistant,
Wells began posting videos on TikTok
in 2020 that drew attention to the
cosmetic products customers tended to
return most often.
And she’s not the only one doing
this. De-influencing videos can lead
consumers toward cheaper alternative
products, known as ‘dupes’, or
discourage them from spending money
altogether.
The problem for the public now
is who to trust – influencer or deinfluencer?
With brand-sponsored
marketing by influencers almost
ubiquitous, this is becoming a real
issue. The concern for firms must
surely be the temptation to discredit
the products of a competitor without
cause.
This all means that firms must be
cautious about how they use social
media and the claims made while
being on the lookout for unfair deinfluencing.
Alternatively, they could
consider more traditional forms of
media.
A recent story in MoneyWeek drew
attention to the British Business
Bank Start-up Loans with competitive
unsecured rates for founders.
In essence, the bank offers personal
loans to those looking to start a
new business or expand an existing
business that has been trading for less
than 36 months. The cash can be used
Borrowing from the state
for almost any business purpose –
from renting premises or buying stock
to funding marketing materials or
even running an export programme.
Borrowers can seek funding of
£500 to £25,000 each with the money
repayable over one to five years. There
are no arrangement fees, but interest
is charged at a rate of six percent.
And because the loans are unsecured,
personal or business assets are not
needed as collateral and nor is a
guarantor.
Of course, applications are assessed
on borrowers credit histories and their
ability to repay. Applicants are also
expected to provide a business plan
and a cashflow forecast.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 32

A European 'withdrawal button'?
A great headline for Brexit Remainers but
it’s not quite as they’d wish. EuroCommerce
has published a joint statement with
other EU trade associations expressing
concerns about the proposed introduction
of a ‘withdrawal button’ for all distance
contracts as part of the European
Commission’s proposed reforms to
the current rules on financial services
contracts concluded at a distance. The
current rules are in Directive 2011/83/EU
(the Consumer Rights Directive) which
concerns financial services contracts
concluded at a distance and Directive
2002/65/EC on distance marketing of
consumer financial services (the Distance
Marketing Directive).
The trade associations support the
DO CRY FOR ARGENTINA
ARGENTINA is in a bind. It’s annual rate of
consumer price inflation has risen above
100 percent for the first time since 1991,
says the Financial Times.
Month-on-month inflation in February
was 6.6 percent which makes the annual
figure 102.5 percent. It was 98.8 percent at
the start of 2023. Inflation has been widely
attributed to the central bank which
has been printing money; the amount of
objective of enhancing consumers’
withdrawal right but believe that the
provision could be achieved through less
prescriptive measures.
If approved, the new directive would
introduce a withdrawal button for contracts
that a consumer concludes by electronic
means, a financial services contract at a
distance.
The joint statement suggests that the
proposal will go beyond the financial
sector and could affect the majority of the
business to consumer industry with online
sales activities.
So, if you’re looking to trade online in
Europe, be aware that contracts could soon
be ‘ripped up’ in an instant at the press of
an online button.
money in circulation quadrupled during
President Alberto Fernández’s first three
years in office. Only Zimbabwe, Lebanon,
Venezuela and Syria are in a worse
position. Price controls on 1,700 goods that
lasted until December didn’t achieve their
objective and an IMF bailout of $44bn
depends on targets that the Government
wants to lower.
All in all, be careful in Argentina.
SOUTH AFRICA
IS IN THE DARK
WHILE the UK and others have avoided
recession so far, South Africa is on the
brink of a crisis as its economy shrank
by 1.3 percent in Q4 2022.
Apart from mismanagement and
corruption, the country suffers power
cuts almost daily. The South African
Reserve Bank thinks that the electricity
crisis is costing the country up to £41m
per day and ‘will shave two percentage
points off output growth in 2023.’
The population is now used to
blackouts. Mining output has been
dropping for ‘10 consecutive months,’
and where possible some use
generators – at a cost. MoneyWeek
quotes Shoprite, a grocery chain, that
said “that if power cuts continue, it will
spend R1.2bn (£54m) a year on diesel to
keep the lights on, a sum equal to about
a fifth of its annual profits.”
South Africa is the world’s largest
producer of platinum and the
third-largest iron ore exporter. The
Government managed a small budget
surplus because of efforts to restrain
spending but also, because of the
commodities boom. However, with
raw-materials demand falling and the
economy stagnating, there’s a real risk
to the South African economy.
Beware then, if you’re involved in
the export of electrical appliances to
South Africa or rely on its consumers or
mining sector.
Could Italy leave the EU?
ACCORDING to some, including the New
Statesman, Italexit is still on the cards.
At present – and this is said carefully as
Italy is on its 68th Government in 77 years
- Giorgia Meloni, Italy’s current far-right
prime minister, says that she has no
plans to take Italy out of the eurozone.
However, if she manages to make more
than a year in office, she may change her
mind.
Wolfgang Münchau, a New Statesman
columnist and the Director of
Eurointelligence, reckons that the real
reason Italy ‘booted out’ seven prime
ministers since 2011 was their ‘failure to
address the lack of productivity growth,’
which has been virtually non-existent
since joining the euro and has led to the
spread of ‘poverty traps’ from the ‘hopeless
south’ to the rest of the country.
Indeed, the European Commission
reckons that 13 of Italy’s 20 regions have
now ‘entered a doom loop of emigration,
low educational attainment and low
investment.’
Meloni wants to stop this cycle and
is seeking transfers from richer EU
countries. Since the pandemic, Italy has
received nearly €70bn but these funds
are conditional on economic reforms.
However, change is slow and richer EU
countries are resisting further transfers.
The problem is that Italy is ‘too large
to save and too large to fail. Eventually,
something has to give.’ And for as long as
productivity growth goes unaddressed, a
euro exit remains a possibility. In other
words, we could see Italexit.
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Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 33

COUNTRY FOCUS
With an enviable
standard of living,
Sweden has a thriving
economy.
Knowing me,
knowing you
AUTHOR – Adam Bernstein
SWEDEN is an easy country
to introduce. Stereotyped by
IKEA’s flat pack furniture and
meatballs, clothing from H&M,
and ABBA – the global pop
supergroup from Stockholm,
Sweden is a country with much to offer
exporters.
Its history goes back to at least 12,000 BC
and its first settlers followed by Stone Age
man. However, with little written history
until the 11th century, sources suggest that
Sweden didn’t ‘officially’ come into being
until around then.
Sweden moved closer to Norway and
Denmark and formed the Kalmar Union in
1397. During the 17th century it emerged
as a regional power winning wars against
Denmark-Norway, Russia and the Polish
Lithuanian Commonwealth. However,
1721 saw Sweden lose against Russia and
as a consequence lose its empire. Finland
and lands outside of Scandinavia were also
lost in the early 1800s. It was part of the
Swedish-Norwegian Union from 1814 to
1905 and has maintained a neutral stance
since 1814.
Although Sweden joined the European
Union in 1995, it is one of six EU states
that are not part of NATO. However, with
a population in favour of joining, and the
Russian invasion of Ukraine, in July 2022
Sweden signed papers to join the defence
organisation.
The country
Formally known as the Kingdom of Sweden,
it’s bounded by Norway to the north and
west, Finland to the east and Denmark –
albeit by a bridge and tunnel – to the
southwest.
At 447,425 sq. km. it’s the largest of the
five Nordic countries and just under twice
the size of the UK (at 242,495 sq.km). It’s
the fifth largest country in Europe and
the third largest in the EU. A long narrow
country measuring 1,574km by 499km at
its extremes, it has a coastline of 3,218km.
A helpful table at Mileagemath.com
indicates that road travel between cities in
Sweden can be long and time consuming.
With a population of 10,523,709m,
according to Official Statistics of Sweden,
the country is sparsely populated. 2022 data
from Official Statistics of Sweden shows
that 984,748 live in Stockholm, 596,841 in
Gothenburg, 357,377 in Malmo and 242,140
in Uppsala. There are 15 more cities with
more than 100,000 residents, 30 with 50,000
to 100,000, 180 towns with 10,000 to 50,000
inhabitants, and 67 with anywhere from
2,372 to 50,000.
Its climate is temperate in south with
cold, cloudy winters and cool, partly
cloudy summers; and subarctic in north.
The male/female split is very even at
5.29m males to 5.22m females. 20.9 percent
are aged 17 or under, 58.7 percent aged
18 to 64, and 20.4 percent are aged 65 or
over. Official Statistics of Sweden’s
data is comprehensive and shows an
aging population. At the turn of the
millennium, 21.8 percent were aged 17
or under and just 17.2 percent 65 or older.
Back in 1980 those numbers stood at 23.8
and 16.4 percent respectively.
The CIA World Factbook suggests an
estimated population growth rate of 0.51
percent (2023). In comparison, Official
Statistics of Sweden reckons that for 2022
the figure is closer to 0.66 percent.
The data also shows a near doubling
in 40 years of ‘foreign citizens’ – 421,667
in 1980 to 905,323 in 2020. Indeed, some
2.68m are now considered to have a foreign
background – a point backed by data
from the CIA World Factbook with a 2020
estimate that stated that, ethnically, 80.3
percent are Swedish, 1.9 percent Syrian,
1.4 percent Iraqi, 1.4 percent Finnish,
with ‘other’ making up 15 percent of the
population. Much of the Iraqi and Syrian
population have come seeking refuge
following conflict.
Sweden’s economy
World Bank Data states that Sweden’s GDP
has followed an almost exponential path
since 1985 when it rose from $142.09bn
to $284.32bn in 1992, $517.71bn in 2008,
$586.84bn in 2013, and $635.66bn in 2021.
As the CIA World Factbook comments,
Sweden has a ‘small, open, competitive,
and thriving economy that remains
outside of the euro zone; it has achieved
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 34

❝
Sweden is clearly more than the two global icons
that are IKEA and ABBA. It’s a prosperous land
with many natural resources and a well-developed
economy with plenty of industry.
an enviable standard of living, with its
combination of free-market capitalism
and extensive welfare benefits.’
According to the Observatory of
Economic Complexity (OEC), Sweden,
in 2020, exported and imported goods
and services worth $152bn and $140bn
respectively. The OEC places Sweden 32nd
in the world in terms of its imports and
exports.
The OEC states that the top exports were
cars ($11.1bn), packaged medicaments
($9.29bn), refined petroleum ($5.25bn),
motor vehicles, parts and accessories
($4.13bn), and broadcasting equipment
($3.76bn) – most of the exports went to
Germany ($15.9bn), Norway ($14.2bn),
United States ($12.7bn), Denmark
($11.6bn), and Finland ($9.44bn).
On imports, Sweden’s largest imports
were cars ($8.46bn), crude petroleum
($5.25bn), motor vehicles; parts and
accessories ($4.86bn), refined petroleum
($4.38bn), and broadcasting equipment
($4.05bn). Most came from Germany
($25.2bn), Netherlands ($11.6bn),
Denmark ($9.45bn), Norway ($9.1bn), and
China ($9.02bn).
Key business sectors
Surprisingly, there’s little coherent
information on key industrial sectors in
Sweden. The UK Government’s advice,
published in 2015 has been withdrawn,
the Swedish Government’s own website
❝
is less than helpful, and much around the
web appears to have been copied or cobbled
together. In other words, if a serious
move to Sweden is being considered,
local market research for the given
application would be a wise investment.
Manufacturing
In December 2021, the International Centre
for Education and Training (ICET),
wrote that Sweden possesses an ‘efficient
export-oriented manufacturing industry
which contributes significantly to the
country’s economy.’ It adds that privately
held companies account for about 90
percent of industrial output. A 2018 SBA
Fact Sheet published by the European
Commission reported that ‘Swedish
SMEs generate 59.7 percent of value added
and 65.5 percent of employment in
the ‘non-financial business economy’.
Their productivity is well above the EU
average.’
Overall, it’s of note that the US Trade
Department considers that Sweden’s manufacturing
and industrial engineering
sector accounts for roughly 20 percent of
the country’s GDP or $125bn. It thinks that
steel, automotive, chemical and forestry
are important sectors, along with industrial
machinery and equipment, automation
and food processing equipment.
Automotive is the largest sector which
accounts for almost half of the industrial
value-added. Aerospace and automotive
manufacturing plants are located in the
south with names such as Saab and Volvo
being recognised globally.
Statistics Sweden noted that vehicles
is Sweden’s largest export category (and
also the largest import category). In 2021,
Sweden exported $20.5bn of vehicles yet
imported vehicles worth $16.5bn. The
Swedish Innovation Agency says the sector
employs around 140,000. In comparison,
a document from marketresearch.com,
Automotive Manufacturing in Sweden,
which sells for $350, suggested that ‘the
Swedish Automotive manufacturing
industry had total revenues of $5.2bn in
2019’. That’s quite a variance.
On electric vehicles, the Government is
providing subsidies and vehicle tax cuts
for purchasing environmentally friendly
vehicles. This has caused a shift in sales
from fossil-fuelled vehicles to hybrid and
electric vehicles.
In terms of electronics and electric
plants, they are located mainly in Västerås
and Stockholm, the latter being the largest
producer of communication equipment
in the country. There are small plastic
and metal processing plants in the south
and Stenungsund, on the west coast, has
a strong petrochemical industry – worth
$3.38bn in 2020 according to Resear
chandmarkets.com.
Biotech and pharmaceuticals are
fast-growing sub-sectors. Here, Life
Sciences in Sweden says that there are
148 companies in this sector developing
new medicines in 420 different projects.
It helps that, as SwedenBIO comments,
Brave | Curious | Resilient / www.cicm.com /May 2023 / PAGE 35

COUNTRY FOCUS
AUTHOR – Adam Bernstein
❝
Automotive is
the largest sector
which accounts for
almost half of the
industrial valueadded.
Aerospace
and automotive
manufacturing
plants are located
in the south with
names such as Saab
and Volvo being
recognised globally.
❝
‘Sweden has ten universities with life
science-oriented faculties spread throughout
seven different cities from Umeå in the
North to Lund in the South. Eight have a
natural science faculty and seven have a
medical faculty.” A Government publication,
Sweden’s national life sciences strategy,
details that progression in this sector is key
to achieving the 2030 Agenda for Sustainable
Development. But with increasing global
competition, the Government wants greater
levels of digitalisation, sustainability and
innovation. In 2013, the Government
published, Produktion2030 – P2030 – a
strategic research and innovation programme
which seeks to make Sweden ‘a frontrunner
in investments in sustainable production
by 2030’. The programme is a collaboration
between industry, academia and research
associations.
Measures in a Roadmap to Smarter
Industry include automation and robotics
programmes for SMEs, national test labs
for electric vehicle production, and zero
emission programmes and incentives for
energy intensive industries. It’s thought that
annual R&D investments here are around
$10bn. And for those wanting a list of
manufacturing companies in Sweden, Dun
and Bradstreet has such a thing on its website
– for a charge of course.
Tourism
With its landscape and position, it’s not
surprising that tourism is important to
Sweden. The country has 15 UNESCO World
Heritage sites, and most tourists visit the
country in the summer when temperatures
are relatively high.
A 2022 reference in the OECD’s iLibrary
commented that tourism grew ‘steadily
prior to the COVID-19 pandemic and is
an important contributor to the Swedish
economy and labour market.’ Tourism’s
share of the economy sat around 2.6 percent
of GDP, but dropped to 1.7 percent in 2020,
with a small increase in 2021 to 1.9 percent.
The sector employs more than 100,000 people.
The pandemic years clearly affected the
sector and tourist nights dropped to 43.3m
in 2020, a decline of 36 percent from 2019.
International nights fell by 70 percent to
5.2m nights while domestic nights decreased
24 percent to 38.1m nights. However,
those numbers in 2021 rebounded so that
international nights increased to 7.3m and
domestic nights increased 23 percent to
46.9m nights in 2021.
Overall, total tourism expenditure in
2021 was Swedish Kronor (SEK) 249 bn, an
increase of 18 percent compared to 2020.
Stockholmbusinessregion.com recorded
Germany as the largest international market
followed by France, Norway, the Netherlands
and the UK. Interestingly, it reckons that
visitors from Asia and Australasia have not
(yet) returned. It should be said that ICET
thinks that 7.1 percent of household income
is spent on local tourism.
Agriculture
In common with other nations, Sweden has
employed progressively fewer workers over
the last 100 years. Where once it was 50 percent
of the population, 20 percent in the 1950s,
it’s now, says Statista, 1.69 percent (2019).
However, this drop in employment does
diminish the fact that Sweden has significant
natural resources. Agricultural output in
Sweden exceeds domestic consumption even
though the country imports a significant
amount of food.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 36

COUNTRY FOCUS
AUTHOR – Adam Bernstein
ICET states that around 6.8 percent of the
country’s total land is under temporary or
permanent crops. Farms in the country
are typically tilled intensively, and heavy
use of fertilisers is widespread and farms
are highly mechanised. A concern for
the Government is that the majority of
farmers are elderly and many farms do
not have successors. The Government has
a policy in place to try and merge small
farms into larger units of approximately
25 to 50 acres. Crops cultivated include
potatoes, barley, wheat, rye, vegetables,
and fruits. And on timber and wood
production, Göteborgs Tekniska College,
says that it’s located close to sources
of raw material. The pulp and paper
industry is often situated at the mouths
of rivers running through forest regions —
including a number along the shores of the
Gulf of Bothnia and of Vänern, Sweden’s
largest lake. Production is concentrated at
large, efficient mills, located in southern
Sweden.
Mining
Another sector to note in Sweden is
mining. Svemin, the Swedish Association
of Mines, Mineral and Metal Producers,
states that Sweden accounts for around 93
percent of all iron ore produced in Europe
and is also a leading producer of other
base metals. The Geological Survey of
Sweden says that most mines are located
in Sweden's three ore regions, Norrbotten,
Skelleftefältet and Bergslagen. But where
once there were some 250 mines, now the
number has decreased to 12 active metal
mines (2021). However, total production
has more than doubled to 88.6m tonnes
with the increase in demand driven mainly
by China and other Asian countries.
Other minerals mined include 88,000
tonnes of copper, 236,000 tonnes of zinc,
65,000 tonnes of lead, and 400,000 kg each
of gold and silver (2021 data). In 2021
sales were SEK 69bn. Overall, nearly 8,000
people are employed in the mining sector.
Construction
GlobalData considers the Swedish construction
sector to have been worth
$87.1bn in 2021. The industry’s growth is
supported by the Government’s investment
in transport and energy infrastructure.
The Swedish Construction Federation
reckoned that the sector employs
354,000 people.
Sweden wants to be climate neutral
by 2045 and with buildings comprising
20 percent of Sweden’s climate impact,
change is necessary – a point emphasised
by The Fossil Free Sweden programme
which guides the construction and civil
engineering sector. Allied to this is the
Smart Built Environment, a 12-year
research and innovation programme
running from 2016 to 2028 which aims
to create new knowledge, skills, services,
and products, and the Million Homes
Retrofit, a Government modernisation
and renovation project for 1960s and 70s
suburban public housing stock.
Taxes
The headline corporate income tax rate is
20.6 percent, down from 21.4 percent that
applied before 31 December 2020.
The Swedish VAT system is in line
with the EU rules. The general VAT rate
is 25 percent, but reduced rates apply
to goods and services such as hotel
accommodation, foodstuffs (excluding
alcoholic beverages), restaurant meals,
and low or non-alcoholic drinks
(12 percent), as well as newspapers,
magazines, books, e-books, passenger
transport, maps, musical notes, some
cultural services, transport in ski lifts,
etc. (six percent). Certain financial and
insurance services are exempted from
VAT.
VAT returns must be filed monthly
if the VATable turnover is estimated to
exceed SEK 40m (estimated yearly sales
excluding any reverse charge or import
acquisitions). Companies with VATable
turnover below SEK 40m report VAT
quarterly or may choose to report VAT
on a monthly basis. For companies with
a turnover of less than SEK 1m, VAT is
reported on a yearly basis in the VAT
return, and these companies may also
choose to report VAT quarterly or on a
monthly basis.
There are also EU-based e-commerce
rules (from July 2021) that apply to VATable
sales. These cover sales on platforms (that
never own goods sold), distance sales, and
the importation of goods to a consumer.
Social security contributions are levied
at 31.42 percent of the total taxable
remuneration (no cap) in cash and in kind
paid by a Swedish employer or a foreign
employer with a permanent establishment
in Sweden – employees pay seven percent.
And Swedish employers and non-Swedish
employers in Sweden pay special wage tax
of 24.26 percent on pension costs relating
to tax qualified company pension plans.
Personal
Both national and municipal taxes are
applied to private income. In terms of the
former, SEK 0 to 613,900 attracts a zero
rate while above that figure the rate is
20 percent. In terms of municipal taxes,
SEK 0 to 613,900 is taxed at 32 percent as
is income in excess of that amount. Nonresidents
working in Sweden for a Swedish
employer or a foreign employer with a
permanent establishment in Sweden
are taxed a flat rate of 25 percent at
source. At time of writing £1 equalled SEK
12.75.
Summary
Sweden is clearly more than the two
global icons that are IKEA and ABBA.
It’s a prosperous land with many natural
resources and a well-developed economy
with plenty of industry. With a relatively
close proximity to the UK, Sweden really
ought to be a target for exporters.
Adam Bernstein is
a freelance finance writer.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 37

HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION
Ethical Enforcement
The HCEOA welcomes the ECB’s
first ever draft business plan.
AUTHOR – Alan J. Smith FCICM
FOR some time now the HCEOA has
been engaging with the Enforcement
Conduct Board (ECB) to support it
in delivering its aim of providing
independent oversight for the entire
enforcement profession.
We want to ensure fair treatment and appropriate
protection for people subject to action by all
enforcement agents. What everyone can now see is
the detail of how it intends to start delivering this.
The ECB recently released its first full
business plan (2023/24) for consultation, setting
out its proposed activity and rationale, and
welcoming input from the profession, creditors,
consumer groups, the debt advice sector, and
other organisations with an interest in ensuring
enforcement works effectively.
As an Association we’re supportive of the
ECB’s aims. We’re already providing insight on
the work our members do to enforce High Court
writs on behalf of UK businesses and individuals
responsibly and safely. We’ll continue to work
with the ECB Board in this manner to help it
achieve its first outlined priority of collecting data
from the enforcement profession to help it better
understand the reality of the current landscape.
Vulnerable debtors
One of the key areas understandably highlighted by
the ECB in its business plan is wider consultation
on the development and implementation of a
robust code of practice, focusing on procedures
for identifying and dealing with vulnerability and
affordability.
For the Association and our members, ensuring
vulnerable people are supported flexibly and
sympathetically while we work with them to create
appropriate resolutions is a priority. Over the past
few years, enforcement businesses have massively
increased the resources they allocate to effectively
identify cases with potential vulnerability. This
includes things like:
• dedicated teams within the businesses
themselves to help quickly recognise the signs of
vulnerability and know what the next steps are.
• working ever more closely with clients to ensure
that their specific Treating Customers Fairly
(TCF) policies are incorporated into enforcement
practices.
• gathering more and better data and analysing
it intelligently to support decision making, as
well as using technology, such as AI, to pick up
indications of vulnerability through customer
support.
While the Association’s own Code of Best Practice
and the Government’s Breathing Space initiatives
both outline processes for vulnerable debtors, one
of the biggest obstacles our members face is an
unwillingness from some debtors to engage with
the enforcement process in the early stages. Not
only does this increase the level of fees added to the
debt, but it also impacts the enforcement agent’s
ability to determine vulnerabilities and deal with
these cases appropriately. We’re hopeful that a
standardised approach that spans the profession and
includes the debt relief sector will help to
encourage early engagement of debtors and enable
our members to provide much-needed advice and
support.
An independent complaints system
We are looking forward to further information on
how the ECB plans to deal with complaints and
welcome the results of its profession-wide review
of complaints procedures. While we do have our
own procedure in place to handle complaints that
are submitted to the Association, we agree that
a profession-wide standardised process will be
beneficial for debtors and creditors alike to help
them navigate this often-complex area.
With the ECB also proposing to produce a plan
to assume responsibility for non-ombudsmen
complaints, we’re hopeful that the small proportion
of cases we have that result in a complaint to the
Association will welcome its independent review
and decision-making.
A key role to play
No one understands this profession, how it is
shaped by the complexities and peculiarities of the
laws and regulations that govern it, and what the
practical impact of changes will be, better than the
professionals working within it.
Along with knowledge from our colleagues at
CIVEA, the input from HCEOA members can be of
huge value to the ECB as it sets out on its important
journey towards independent oversight.
This draft business plan is a good start. The
goals of greater collaboration and more shared
understanding between the enforcement
profession and the debt relief sector are definitely
worth pursuing.
You can read the ECB’s draft business plan in
full here: https://enforcementconductboard.org/
current-consultations/
Alan J. Smith FCICM is Chairman
of the High Court Enforcement Officers
Association (HCEOA)
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 38

ANNUAL
GENERAL MEETING
The ninth Annual General Meeting of the
Chartered Institute of Credit Management
will be held on Thursday, 22 June 2023 at The
British Psychological Society, 30 Tabernacle
Street, London, EC2A 4UE at 13:00 (or at the
rising of the Advisory Council from its preceding
meeting, whichever is later).
If you plan to attend, please advise via email to
governance@cicm.com as soon as you are able,
and no later than 13:00 on Wednesday, 21 June
2023.
By order of the Executive Board
Sue Chapple FCICM
Chief Executive
To read the Notice, visit:
http://www.cicm.com/about-cicm/governance/
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Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 39

LEGAL MATTERS
An Unlucky Break
Can a holidaymaker suffering an injury overseas
bring a claim against a UK credit card company, even
if she was not its customer?
AUTHOR – Peter Walker
BREAK a leg!’ is a theatrical
expression meaning good luck!
but for one holiday maker there
were financial complications
too. In addition to the medical
issues there was a combination
of a consumer credit agreement, the Consumer
Credit Act 1974, and an insolvent travel agent,
all familiar stories for credit managers, and
even Brexit made an appearance. The law issues
had to be sorted out by the judges of the Court
of Appeal in Cooper v The Freedom Travel Group
Ltd [2023] 1 WLR 663.
It started with a husband, who booked a
holiday in Greece for him and his wife. He took
out his credit card, and the result was a credit
agreement regulated by the Consumer Credit
Act 1974. This was used to finance the deposit,
although the husband paid the remaining
amount due by other means. He wisely obtained
travel insurance but also separately.
The couple went on holiday, but in Greece the
wife unfortunately fell and suffered a fracture in
her left leg. When she had returned to England,
she commenced litigation against the travel
company, the original defendant. The word
‘original’ hints at forthcoming complications.
Terms and conditions
But there was firstly Regulation 15(2) of the
Package, Travel, Package Holidays and Package
Tours Regulations 1992. This states that a
holiday company is liable to a consumer for any
damage suffered either by failure to perform
the contract, or by its improper performance.
The definition of consumer is important,
because the wife as claimant was not a party
to the contract. Regulation 2(2) covered what
it calls the ‘principal contractor, which in this
instance was the husband. A consumer is also
any person of whom the principal contractor
agrees to purchase the package holiday. The
claimant therefore asserted that the original
defendant was the organiser, and that she was a
consumer protected by the Regulations.
All seemed to be well and clear cut, when
the claimant accepted an offer by the original
defendant to compromise liability. All that was
needed was for a court to determine how much.
There followed the first complication,
because the original defendant was a wholly
owned subsidiary of Thomas Cook Limited,
which went into liquidation. Other subsidiaries
followed suit, and the holiday insurance was of
no help due to the excess of £5,000. The first
defendant in any event was self-insured for a
large amount, i.e., over £2m of any claim.
There was, of course, the Consumer Credit
Act 1974, particularly section 75. A debtor
under a debtor-creditor supplier agreement,
for example, with a claim against a supplier
may have a like claim against the creditor. The
wife however was not a party to the agreement,
so she was strictly not a debtor, but could the
definition of debtor be extended to encompass
a claim by her against the credit card company?
Court of Appeal
Whatever the position, the lower courts threw
out such a claim. It was now time for an appeal,
which firstly stated that those courts were
wrong to have rejected the section 75 claim. The
District Judge, Simkiss J, was allegedly incorrect
to reject such a claim by reason of the first
defendant’s admission of liability. There was
also the question of costs, but the first appeal
was rejected. Simkiss J thought that the wife
was not a debtor, because, for example, she was
not liable to repay anything.
The EU then appeared in the form of Package
Travel Directive (Council Directive 90/314/EEC
of 13 June 1990). Simkiss J referred to Marleasing
SA v La Commercial Internacional de Alimentación
SA (Case C-106/89) [1990] ECR, where there was
a ruling that domestic law must be harmonious
with EU law. This would include the definition
of ‘debtor’ for the purposes of section 75 of the
Consumer Credit Act.
The judges of the Court of Appeal then became
involved, and they started with basic principles.
Section 8(1) of the Consumer Credit Act, for
example, defined a consumer credit agreement
as an agreement between an individual or
‘debtor’ and a ‘creditor’ which provides credit to
the debtor. Credit includes ‘a cash loan and any
other financial accommodation’ (s9(1)). Apart
from the obvious, the meaning of ‘creditor’ can
be extended to the person to whom the rights
and obligations have been assigned specifically
or by operation of law.
Regulations
In addition to these consumer credit provisions
there are the Package Travel, Package Holidays
and Package Tours Regulations 1992 (SI
1992/3288). Regulation 2(2) defines ‘consumer’
as the person agreeing to take the package
(‘the principal contractor’), or ‘any person on
whose behalf the principal contractor agrees to
purchase the package (‘the other beneficiaries’).
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 40

❝
The judges of the Supreme Court noted that the purpose of the transaction
was an enjoyable experience, so the contract should be interpreted broadly.
The defendant had promised to provide a holiday of a reasonable standard, so the
assault amounted to an improper performance of the contract.
❝
If they transfer the package, the recipient
becomes a ‘transferee’. Regulation 15
emphasises that ‘the other party’ is liable to
the consumer for 'the proper performance
of the obligations under the contract’.
Regulation 16 adds that the other party must
provide evidence of security for any refund.
There is a complication in this case
because of the overseas element, and this
was discussed by the Law Lords a few years
earlier in Office of Fair Trading v Lloyds TSB
Bank plc [2008] AC 316. In the Freedom Travel
Group case Nicola Davies LJ considered that
the emphasis was consumer protection.
European law passed the right of the husband
as debtor to the wife as a consumer. The
word ‘debtor’ was to be widely interpreted as
an individual who receives credit.
In relation to section 75 of the Consumer
Credit Act Nicola Davies LJ pointed out
that the word ‘debtor’ had ‘a clear and
unambiguous meaning, namely the
contractual debtor’. The judge in the lower
court correctly found that the wife was
not a debtor. But she was not pursuing a
contractual debt – she was really making a
statutory claim.
Serious assault
Nicola Davies LJ therefore considered a
recent Supreme Court decision, X v Kuoni
Travel Ltd [2021] 1 WLR 3910. A husband
and wife went on holiday to Sri Lanka. The
package included return flights to the UK and
15 nights’ all-inclusive hotel accommodation.
In the terms of the agreement the defendant
agreed to accept responsibility should,
because of its fault, the holiday arrangements
be not as described in the brochure, or
not up to a reasonable standard. It would
also accept liability if the other person or
member of his party is ‘killed or injured as
a result of an activity forming part of those
holiday arrangements’. It would not accept
liability if such death or injury was not its
fault or the fault of its agents or suppliers.
The agreement purported to exclude liability
for unforeseen circumstances, which the
defendant, agents or suppliers could have
‘anticipated or avoided’.
These provisions were the background to
the holiday, when in the early hours of one
night the wife was in the hotel grounds. She
met the hotel electrician, who was on duty
and wearing his maintenance-staff uniform.
She accepted his offer to show her a short
cut to the reception area, but he lured her
to the engineering room, where he seriously
assaulted her.
She subsequently claimed damages
against the defendant alleging breach of
contract. The cause of action was under
the Package Holidays and Package Tours
Regulations, which implemented the EU
Council Directive 90/314/EEC of 13 June 1990
on package travel, package holidays and
package tours.
The judges of the Supreme Court noted
that the purpose of the transaction was an
enjoyable experience, so the contract should
be interpreted broadly. The defendant had
promised to provide a holiday of a reasonable
standard, so the assault amounted to an
improper performance of the contract.
The defendant furthermore was organiser
of the package holiday. The electrician was
an employee of the hotel, a supplier of
services, so the defendant as organiser could
not invoke the exemption from liability
provided by Regulation 5(2), i.e., force
majeure or an unforeseeable event.
Debtor ruling
This ruling was in the minds of the judges
in the Freedom Travel Group case, but Nicola
Davies LJ emphasised that the wife, the
claimant, was not a party to the agreement,
neither for the holiday nor for the credit. Her
uninjured husband set up the transactions,
so he was the debtor. In The Sussex Peerage
Case [1844] 11 C1 & Fin 85, 143, Tindall CJ
said: “If the words of the Statute are in
themselves precise and unambiguous, then
no more can be necessary than to expound
those words in their natural and ordinary
sense.” The provisions of section 75 did not
apply to his wife, and she had no contractual
rights. That provides certainty for providers
of credit in these circumstances. That’s good
news for credit managers of credit card
companies.
That is not good news for the injured
claimant in the Freedom Travel Group
case. There were, however, the Package
Holidays and Package Tours Regulations
1992 and Regulation 15 with the emphasis
on consumer protection. She could make a
statutory claim under this legislation.
Peter Walker is a freelance finance writer.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 41

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Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 42
Rated as Excellent

WORKING LIFE
Flexible Working
How to improve your workplace productivity, wherever you are.
AUTHOR – Natascha Whitehead
❝
Utilise the social
aspect of working in
the office to speak
to your colleagues
face-to-face; in
the same breath,
have boundaries
to avoid being
distracted by others
in the workplace,
especially when you
have work to do
that requires extra
concentration.
❝
IT’S no surprise that a large majority
of employers (74 percent) in the
finance sector currently offer their
employees hybrid working, as revealed
in our UK 2023 Salary and Recruiting
Trends guide. On top of this, a flexible
approach, where professionals can decide how
many days a week they spend in the office, could
tempt almost two thirds (63 percent) of credit
professionals to change jobs. However, with
this sought-after freedom comes responsibility
to remain productive and achieve positive
results regardless of where you’re working.
Ultimately, with hybrid work now a reality for
most, and the possibility of fully remote roles
on the rise, now is a great time to reflect on how
to work effectively wherever you are. Here’s my
four top tips to get going from both an officebased
and remote setting.
Create a to-do list
Especially when it comes to credit management,
being organised allows you to perform your
critical role and is a key to success. Writing
a to-do list is a trusty method, effective for
both office-based and remote working, not to
mention the satisfaction of ticking off what
you’ve accomplished! Daily task lists help you to
keep track of priorities and structurally frame
the day ahead. If you lose focus working from
home or feel detached from your professional
purpose in a remote setting, listing what you
need to get done can act as great guidance.
Similarly, it’s easy to become distracted by a
busy office, where more work may come your
way, so referring to a to-do list can ground you
in your current responsibilities and allow you
to make a judgement on your realistic work
capacity for the day.
Take regular breaks
Productivity is not the result of being glued
to your screen; it’s important to take short
but regular breaks from your work in order
to maintain concentration and performance
throughout the day. To monitor this, you could
set alarms or reminders to step away from your
professional responsibilities, whether you’re in
the office or working remotely. Since attention
to detail is crucial for roles within credit
management, taking breaks is important to
ensure you remain focused, meaning you’ll be
less likely to make mistakes. Social breaks are
also beneficial for boosting morale; set aside
time for a coffee with your colleagues if you’re
in the office or call a friend for a catch-up when
working from home. Going for a walk is also
effective for blowing off the cobwebs, allowing
you to return to work refreshed and inspired.
Communicate mindfully
Communicating well with your colleagues
and supporting one another can help create a
sense of belonging and an openness to ask and
answer questions can certainly facilitate career
progression. This kind of positive environment
lays the foundation for employee engagement.
Whilst credit professionals benefit from being
independent thinkers, able to make quick and
confident decisions, it is also a people-oriented
industry which requires active listening and
great communication skills. When working
remotely, regular communication through a
virtual platform such as Microsoft Teams can
enable you to feel connected from afar and
still reap the benefits of interacting with your
teammates.
Utilise the social aspect of working in the
office to speak to your colleagues face-to-face;
in the same breath, have boundaries to avoid
being distracted by others in the workplace,
especially when you have work to do that
requires extra concentration. You could put
headphones on or politely express to your
colleagues that you need to work uninterrupted
at that time.
Prioritise your set-up
A suitable set-up is essential and ought to be
prioritised regardless of where you’re working.
If you are able to, sit on a comfortable chair,
with your screen at eye-level, to avoid straining
your back or neck. Natural lighting, whilst
not always possible, is preferable and can
even improve your mood and energy levels.
Similarly, fresh air helps you think more
clearly and has the power to reduce stress. An
organised workstation is thought to translate
to feeling more organised workwise. As well
as this, having some framed words of wisdom
nearby, or saved as your desktop background,
is a nice way to spark motivation and self-belief.
Ultimately, working in a physically comfortable
and pleasant setting will positively impact your
productivity levels.
Whilst flexibility in terms of where we work
has become the new norm, it’s not without its
challenges, and fluctuating between officebased
and remote work will have proved
unsettling for some professionals. However,
having these tools at your fingertips should
help you to stay focused in the office and
maximise productivity in a remote setting,
so you can thrive on your credit career path
wherever you are.
Natascha Whitehead is Business
Director of Hays Credit Management.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 43

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
My DSO Manager is an intelligent SaaS AR and
credit management solution for SMEs to international
enterprises, helping AR analysts manage risk,
maximize cash collection and streamline the credit-tocash
cycle, by a real-time insight to KPIs.
Due to its inventive in-house IT teams and their tight
collaboration with support staff, many of whom were
credit managers at large firms, it can quickly integrate
any ERP data and customize as needed.
T: +33 (0)458003676
E: contact@mydsomanager.com
W: www.mydsomanager.com
Quadient AR by YayPay makes it easy for B2B
finance teams to stay ahead of accounts receivable
and get paid faster – from anywhere.
Integrating with your ERP, CRM, and billing
systems, YayPay presents your real-time data
through cloud-based dashboards. Automation
improves productivity by 3X and accelerates
collections by up to 34 percent. Predictive analytics
provide insight into payor behavior and an online
portal enables customers to access their accounts
and pay at any time.
T: +44 (0)7465 423 538
E: marketing@yaypay.com
W: www.quadient.com/en-gb/ar-automation
HighRadius provides a cloud-based Integrated
Receivable Platform, powered by machine learning
and AI. Our Technology empowers enterprise
organisations to reduce cycle time in the order-tocash
process and increase working capital availability
by automating receivables and payments processes
across credit, electronic billing and payment
processing, cash application, deductions, and
collections.
T: +44 (0) 203 997 9400
E: infoemea@highradius.com
W: www.highradius.com
Reduce or eliminate manual tasks, allowing AR
teams to focus on actions that drive results, and
strengthen decision intelligence to deliver significant
value to the organisation. Cash Application / Credit
& Risk Management / Collections Management /
Disputes and Deductions Management / Team & Task
Management and AR Intelligence.
Optimise working capital by driving world-class
order-to-cash processes and leveraging decision
intelligence to drive better business outcomes.
To learn more visit www.blackline.com/solutions/
accounts-receivable-automation/
T: +44(0) 203 318 5941
E: sales@blackline.com
W: www.blackline.com
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.
T: +44 (0)2073 875 868 - London
T: +44 (0)2920 495 444 - Cardiff
W: menzies.co.uk/creditor-services
FIS GETPAID solution is a fully integrated, webbased
order-to cash (O2C) solution that helps
companies improve operational efficiencies, lower
DSO, and increase cash flow. The solution suite
includes strategic risk-based collections, artificial
intelligence, process automation, credit risk
management, deduction and dispute resolution and
cash application. FIS is a global leader in financial
services technology, providing software, services
and outsourcing of the technology that empowers
the financial world.
T: +447730500085
E: getinfo@fisglobal.com.
W: www.fisglobal.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
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 44

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 367 092
E: a.whitehurst@courtenforcementservices.co.uk
W: www.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 corporate Credit Control
teams with Accounts Receivable software for bulk
e-invoicing, collections, dispute management and
invoice finance. The modular, cloud-based Corrivo
platform can be configured for any business model.
It integrates with all ERP systems and buyer AP
platforms or tax regimes. Customers can self-serve
on mobile friendly portals, however their invoices are
delivered, and Credit Controllers can easily extract
data for compliance, audit and reporting purposes.
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.
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.
The UK’s No1 Insolvency Score, available as a
platform to help businesses manage risk and
achieve growth. The only independently owned
UK credit referencing agency for businesses. We
have modernised the way companies consume
data, to power businesses decisions with the most
important data taken in real-time feeds, ensuring
our customers are always the first to know. Enabling
them to deliver best in class sales, credit risk
management and compliance.
T: +44 (0)1273 696933
W: www.americanexpress.com
T: +44 (0) 1302 513 000
E: sales@keyivr.com
W: www.keyivr.com
T: +44 (0)330 460 9877
E: sales@redflagalert.com
W: www.redflagalert.com
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 45

CHARTERED INSTITUTE OF CREDIT MANAGEMENT •
Introducing our
CORPORATE PARTNERS
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.
VISMA | Onguard is a 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. This enhanced visibility with the secure sharing
of critical data ensures optimal connection between
all processes in the order-to-cash chain, resulting
in stronger, longer-lasting customer relationships
through improved and personalised communication.
The VISMA | Onguard platform is used for successful
credit management in more than 70 countries.
T: 020 3868 0947
E: edan.milner@onguard.com
W: www.onguard.com
Our Corporate Partnerships give organisations
a unique opportunity to work with
us and demonstrate their commitment to
professionalism and best practice in the
Credit industry.
We have combined a number of
compelling features that will deliver
great value through sustained exposure
to our membership of over 7,000 credit
professionals, decision-makers and key
industry figures.
For further information please contact :
the Head of Strategic Relationships,
luke.sculthorp@cicm.com
The CICM Benevolent Fund
is here to support members
of the CICM in times of need.
Some examples of how CICM have helped our members are:
• Financed the purchase of a mobility scooter for a disabled
member.
• Helped finance the studies of the daughter of a member who
became unexpectedly ill.
• Financed the purchase of computer equipment to assist an
unemployed member set up a business.
• Contributed towards the purchase of an orthopaedic bed for one
member whose condition was thereby greatly eased.
• Helped with payment for a drug, not available on the NHS, for
medical treatment of another member.
If you or any dependants are in need or in distress, please apply today – we are here to
help. (Your application will then be reviewed by the CICM Benevolent Fund committee
and you will be advised of their decision as quickly as possible)
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 46

PAYMENT TRENDS
Keep On Moving
Sectors and regions across the UK and Ireland
continue to plug away at reducing late payments.
AUTHOR – Rob Howard
THE latest late payment
data is, for the most part,
positive, with a number of
regions and sectors across
the board continuing
to make progress. The
average Days Beyond Terms (DBT) across
regions in the UK saw no change from
the previous month, while the average
sector figure decreased by 0.3 days. In
Ireland, average DBT across the regions
and sectors reduced by 1.2 and 6.6 days
respectively. Average DBT across the
four provinces of Ireland decreased by
0.1 days.
SECTOR SPOTLIGHT
The UK sector figures can be split right
down the middle, with 11 sectors on
the up and 11 on the slide. Looking at
the positives, the Business from Home
sector saw the biggest improvement,
with a cut of 9.5 days giving them an
overall DBT of 4.9 days, moving them up
to second place in the standings. Taking
top spot, and now the best performing
sector is Real Estate. A reduction of
8.3 days giving it an overall DBT of 2.9
days. Looking at the negatives, the
Entertainment sector saw the biggest
jump, with an increase of 7.5 days to its
DBT. The Transportation, Storage, Water
and Waste sectors are also moving in the
wrong direction – both saw a rise of 5.9
days.
The outlook across Irish sectors is
mostly a positive one, with only three
of the 20 sectors going backwards. Of
the trio, only the Manufacturing sector
saw a significant jump: an increase
of 13.3 days means it is now the worst
performing sector in Ireland with an
overall DBT of 31.1 days. Overtaking the
Manufacturing sector is the Water and
Waste sector, which made the biggest
improvement, slashing its DBT by a
hefty 40.0 days, taking its overall DBT to
29.8 days. Also, very much on the up is
the Business Admin & Support sector,
with a reduction of 27.1 days to its DBT.
REGIONAL SPOTLIGHT
Like the sector figures, the UK regional
data is a tale of two halves, with five
regions getting better and six regions
getting worse, but the vast majority of
changes either way are minimal. The
South East and Wales made the biggest
improvements, reducing DBT by 2.3 and
2.2 days respectively. East Anglia saw the
biggest increase, with a rise of 3.0 days
taking its overall DBT to 17.8 days.
Similarly, over in Ireland, things are
split. 11 regions made improvements,
while 13 saw increases to DBT. Focusing
on the glass half full regions, it was a
standout month for Monaghan, which
saw a hugely impressive reduction of 76.0
days to DBT, meaning it joins Limerick
(-3.7 days) in the zero days overall DBT
club. Louth also deserves an honourable
mention, reducing its DBT by a sizeable
35.1 days. At the other end of the scale,
Wexford also deserves a mention, but
for the wrong reasons, following an
increase of 38.1 days. The rise means
it slips way down the rankings with an
overall DBT of 42.5 days. However, a 26.9
days increase means that Westmeath is
now far and away the worst performing
region in Ireland with a worrying overall
DBT of 87.9 days.
Across the four Irish provinces,
Connacht has overtaken Munster as
the best performing province with an
overall DBT of 7.5 days. Leinster remains
the worst performing province, but is
at least moving in the right direction
thanks to a reduction of 3.7 days to its
DBT.
❝
Transportation, Storage, Water
and Waste sectors are also
moving in the wrong direction –
both saw a rise of 5.9 days.
❝
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 47

STATISTICS
Data supplied by the Creditsafe Group
Top Five Prompter Payers
Region March 23 Change from February 23
Wales 10.3 -2.2
South West 10.5 1
East Midlands 11.5 -1.2
North West 11.6 -0.2
South East 11.7 -2.3
Bottom Five Poorest Payers
Region March 23 Change from February 23
Northern Ireland 19.5 0.2
East Anglia 17.8 3
Scotland 15.7 1.5
London 14 -0.6
West Midlands 13.1 0.1
Top Five Prompter Payers
Sector May 22 Change from April 22
Real Estate 2.9 -8.3
Business from Home 4.9 -9.5
Energy Supply 6.8 -2.8
Financial and Insurance 7.7 -0.8
Education 8.2 -1.2
Bottom Five Poorest Payers
Sector May 22 Change from April 22
Mining and Quarrying 30.2 -2.1
Manufacturing 17.2 0.4
Business Admin & Support 16.4 -0.9
Water & Waste 15.8 5.9
Transportation and Storage 14 5.9
Getting worse
Entertainment 7.5
Transportation and Storage 5.9
Water & Waste 5.9
Health & Social 3.5
Hospitality 2.6
Other Service 2
Professional and Scientific 1.5
Construction 0.8
International Bodies 0.8
Manufacturing 0.4
Agriculture, Forestry and Fishing 0.1
Getting better
Business from Home -9.5
Real Estate -8.3
Dormant -5.9
IT and Comms -3.4
Energy Supply -2.8
Mining and Quarrying -2.1
Wholesale and retail trades -1.7
Education -1.2
SCOTLAND
1.5 DBT
Business Admin & Support -0.9
Financial and Insurance -0.8
Public Administration -0.4
NORTHERN
IRELAND
0.2 DBT
SOUTH
WEST
1 DBT
WALES
-2.2 DBT
NORTH
WEST
-0.2 DBT
WEST
MIDLANDS
0.1 DBT
YORKSHIRE &
HUMBERSIDE
0.7 DBT
EAST
MIDLANDS
-1.2 DBT
LONDON
-0.6 DBT
SOUTH
EAST
-2.3 DBT
EAST
ANGLIA
3 DBT
Region
Getting Better – Getting Worse
-2.3
-2.2
-1.2
-0.6
-0.2
3
1.5
1
0.7
0.2
0.1
South East
Wales
East Midlands
London
North West
East Anglia
Scotland
South West
Yorkshire and Humberside
Northern Ireland
West Midlands
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 48

PAYMENT TRENDS
Getting worse
MUNSTER
3.9 DBT
KERRY
xx DBT
CONNACHT
0 DBT
CLARE
2.8 DBT
LIMERICK
-3.7 DBT
LONGFORD
20.8 DBT
TIPPERARY
2.9 DBT
MONAGHAN
-76 DBT
WICKLOW
-6 DBT
KILKENNY
5 DBT
ULSTER
0.2 DBT
LEINSTER
-3.7 DBT
LOUTH
0 DBT
WICKLOW
-6 DBT
Manufacturing 13.3
Real Estate 1.3
Entertainment 1
Getting better
Water & Waste -40
Business Admin & Support -27.1
Top Five Prompter Payers – Ireland
Region March 23 Change from February
Limerick 0 -3.7
Monaghan 0 -76
Tipperary 3.6 2.9
Wicklow 5.5 -6
Clare 6 2.8
Bottom Five Poorest Payers – Ireland
Region March 23 Change from February
Westmeath 87.9 26.9
Wexford 42.5 38.1
Kildare 37.1 9.3
Longford 36.6 20.8
Kilkenny 24.2 5
Region (IRISH PROVINCES)
Region March 23 Change from February
Connacht 7.5 0
Munster 9.1 3.9
Ulster 10.9 0.2
Leinster 25.3 -3.7
Other Service -17.9
Agriculture Forestry and Fishing -13
Wholesale and retail trade -12
Construction -9.4
Financial and Insurance -8
Energy Supply -6
Transportation and Storage -5.6
Professional and Scientific -4.5
IT and Comms -3.4
Health & Social -1.3
Hospitality -0.1
Nothing changed
Education 0
Top Five Prompter Payers – Ireland
Sector March 23 Change from February
Education 0 0
International Bodies 0 0
Public Administration 0 0
Financial and Insurance 2.7 -8
Health & Social 3.9 -1.3
Bottom Five Poorest Payers – Ireland
Sector March 23 Change from February
Manufacturing 31.1 13.3
Water & Waste 29.8 -40
Energy Supply 26 -6
Hospitality 22.2 -0.1
Wholesale and retail 17.1 -12
International Bodies 0
Mining and Quarryinhg 0
Public Administration 0
Across the four Irish
provinces, Connacht has
overtaken Munster as the
best performing province
with an overall DBT of 7.5
days.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 49

LOOKING FOR
YOUR NEXT
CAREER MOVE?
CREDIT CONTROLLER,
Sunderland, £25k + superb benefits, 6 month contract
Take advantage of an exciting opportunity to play an integral
role in a public sector housing organisation. Initially offered as
a 6-month contract, you’ll join the transactional finance team to
ensure the income of the organisation is allocated correctly and
collected in a timely manner from debtors. This role requires
strong numerical and excel reporting skills, excellent customer
service and strong interaction skills to liaise with external and
internal stakeholders. Ref: 4381213
Contact Andrea Organ on 0191 564 1662
or andrea.organ@hays.com
CREDIT CONTROLLER
Oxfordshire, up to £35k
Join a growing consultancy with the opportunity to be rewarded
and progress in your finance career. You’ll focus on proactively
reviewing and managing overdue debt, as well as raising
and matching credit notes, resolving unallocated receipts
and matching invoices. The successful candidate will be an
experienced credit controller, with excellent communication
skills and strong excel ability. Ref: 4384037
Contact Luana Di Benedetto on 0186 572 7071
or luana.dibenedetto@hays.com
MULTI-LINGUAL CREDIT CONTROLLER
Remote, £35k-£45k
Join a leading international pharmaceutical business that
prioritises your wellbeing. You’ll be responsible for the credit
control process across the Iberian region and take
a proactive approach to risk management and relationship
building with internal stakeholders and external customers.
Fluency in Portuguese and Spanish is essential, and French
is advantageous. You must have strong IT skills and be a
confident SAP user. Experience with invoice factoring is
highly beneficial. Ref: 4390031
Contact William Plom on 0160 376 0141
or william.plom@hays.com
ACCOUNTS RECEIVABLE SPECIALIST
Wimbledon, up to £35k + benefits
Immerse yourself in a newly created team of accounting
professionals within a leading UK design and build consultancy.
In your new role you’ll be responsible for payment allocation
and ensuring that timely credit control processes are adhered
to. The successful candidate will be experienced in accounts
receivable, including credit control. You’ll have good systems
and excel skills. High levels of organisation and prioritisation
are also required. Ref: 4383062
Contact Mark Ordona on 0756 580 0574
or mark.ordona@hays.com
hays.co.uk/creditcontrol
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 50
© Copyright Hays plc 2023. The HAYS word, the H devices, HAYS WORKING FOR YOUR TOMORROW and Powering the world of work and associated logos and artwork are trademarks of Hays plc.
The H devices are original designs protected by registration in many countries. All rights are reserved. CM-1176661255

LEGAL CREDIT CONTROLLER
City of London, up to £40k + benefits
A competitive new position is available in a specialist UK law
firm offering clear opportunities for professional growth and
career progression. Based within the credit control team, you’ll
be dedicated to the reduction of aged debt, as well as building
relationships with key clients. You’ll be a team-player with a keen
eye for detail and some experience within the legal finance space.
Ref: 4390393
Contact Robert Johnson on 0203 465 0020
or robert.johnson@hays.com
CREDIT MANAGER
North Manchester, up to £48k
A reputable firm based in North Manchester is looking for a senior
professional to join their team. You’ll have exceptional people
management and enjoy leading a team day-to-day but can remain
hands on. We’re looking for a candidate with strong managerial
experience and a proven track record in the credit industry.
Ref: 4389513
Contact Luke Lontton on 0161 236 7272
or luke.Iontton@hays.com
This is just a small selection of the many opportunities
we have available for credit professionals. To find out
more, visit our website or contact Natascha Whitehead,
Credit Management UK Lead at Hays on 07770 786433.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 51

OPINION
BORN FREE
It’s summer, and it’s back to school.
AUTHOR – Melanie York
STARTING in June, Cardiff &
Vale College will welcome
its third intake of students
for the CICM credit and
collection training courses.
Developed with the CICM
and launched last October, these fully
funded, online diploma courses provide
formal training and practical skills to
help individuals build the knowledge and
confidence they need to progress in their
careers. Ultimately, the training can lead
to a nationally recognised qualification
and CICM Professional Membership. It’s
an excellent way for those starting their
careers to get free training and a good
grounding in the credit and collections
world.
The entry-level and intermediate
diplomas (Level 2 and Level 3) introduce
individuals to the world of credit control.
Students learn technical knowledge,
including credit legislation, trade, export
and consumer credit management,
credit control/collections, taking control
of goods, and telephone collections and
skills, such as dealing with difficult
situations.
The CICM advanced diploma (Level 5)
is designed for people who have worked
for a few years in the industry or have
some qualifications in credit and collections
and wish to advance their career.
Students will learn advanced credit risk
management, compliance with legal,
regulatory, ethical and social requirements,
strategic planning, legal proceedings
and insolvency, strategic communications
and leadership and process
improvement. It also teaches business
communications and personal skills,
plus higher-level skills of team leadership
and how to operate in complex business
environments.
At all stages, students have the
opportunity to specialise. If they
complete all three courses, they can
gain a nationally recognised, official
qualification leading to Professional
Membership of CICM, ultimately
increasing their earning potential.
Online with personal support
The courses are delivered through
online classes with a trainer, run in the
daytime or evenings and supported with
learning materials on a self-study portal.
This blended, flexible approach allows
students to fit their studies around work
and home life. The online virtual sessions
are typically two hours per week. Each
course only requires five- to six- hours of
additional personal study time.
The courses are fully funded through
the Welsh Government’s PLA (Personal
Learning Accounts) programme for
anyone living in Wales aged 19 or over
(subject to a few eligibility criteria).
No qualifications or experience are
needed to enrol on the courses. CICM's
open access policy encourages further
education to upskill new entrants quickly
and hopefully set them on the path
towards a professional qualification.
The PLA Programme was initially set
up to help raise Wales's median income
and currently focuses on those earning
below £29,534 a year. The aim is to support
young people across Wales to gain higherlevel
skills, enabling them to access a
broader range of job opportunities, gain
higher-level employment, and improve
their career and earnings potential.
The CICM and CAVC recognised
that these courses are eligible for PLA
funding. The PLA criteria includes highquality
career advice and guidance for
students from the outset to ensure they
choose suitable courses. All PLA-funded
courses must support key industry
sectors and offer easily accessible
learning modules so that participants
can choose how and when they learn.
The courses must also involve employers
with job opportunities that can support
students to enter employment or achieve
a higher level. CICM is keen to see its
members support the employment of
young people and their achievement of
high-quality professional qualifications
and, ultimately, CICM Professional
Membership
CICM teamed up with Cardiff and Vale
College as it is one of the largest colleges in
the UK, delivering high-quality education
and training. More than 30,000 learners
attend full-time and part-time courses,
university qualifications, apprenticeship
programmes, and dedicated employee
training each year. The college is proud
of its student success rates – some of
the best in the sector – and its focus
on developing skilled and employable
people – one of the reasons CICM is so
proud to work with them.
Anyone interested in learning more about
the courses can find more information on
the CAVC website: https://cavc.ac.uk/en/pla/
business.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 52

Another benefit
for CICM Members
Download and view your digital
membership card via the Folio app today!
Download the app for your iOS or Android operating system

BRANCH NEWS
The North East Branch AGM
OUR AGM was preceded by
a CICMQ presentation by
Luke Sculthorpe FCICM,
Head of Strategic Relationships.
The Branch is on a
mission to regenerate local
interest in this accreditation, which was
certainly piqued on the night, and we’re
looking forward to supporting Luke’s ongoing
drive in this area.
The sandwich between Luke’s
presentation and our AGM was the happy
task of presenting Phil Hodgson ACICM
with the Sir Roger Cork prize (which he was
unable to collect in person at the February
CICM Awards ceremony). So, we – in only
slightly less glitzy form – were delighted to
finally deliver the award into his deserved
safe keeping. Congratulations to Phil on
this achievement!
Our AGM was marked by Angie
Deverick MCICM vacating the Chair after
what you might call a good innings. A
bittersweet moment, but she is leaving
it in the very capable hands of Nick Neal
FCICM (Grad), who together with the new
Committee will be kicking on with planned
events and initiatives for this year, including
a new regular online forum to support the
Branch’s studying members.
It was worth the wait…thanks to everyone
who turned out for our first (in person)
business event of the year.
Author: Angie Deverick outgoing
Chair of the North East Branch.
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
UPGRADED
Jane Morrey MCICM
Nathan Bartlett MCICM
Bhagyawatee(medha) Bhiwa MCICM
Deian Pouriakov MCICM
VivianneJagar MCICM
Sharon Stevens MCICM
MCICM
Benjamin Scott MCICM Zakia Khalid MCICM Aida Issazadeh
ASSOCIATE
Katie Fawcett
Alison Percival
AWARDING BODY
Congratulations to the following, who successfully achieved Diplomas
Level 3 Diploma in Credit Management (ACICM)
Mitchel Cooper David Eastham Charlotte Griffiths
Level 3 Diploma in Credit & Collections (ACICM)
Ulf Hansson
Andrew Hills
Level 3 Diploma in Credit & Collections
James Aspden
Pieter Benjamin Cloete
Nils Gustav Isidorsson
Janice Lawler
Molly Crawshaw
Julie Goold
Level 3 Diploma in Money & Debt Advice (ACICM)
Hannah Martin
Davide Masedu
Alexander Parry
Emma Rylance
Erika Sams
Tobias Vonk
Sian Williams
Kelly Farrar
Richard Feely
Level 5 Diploma in Credit & Collections Management MCICM (Grad)
Ryan Kerr
Robert Green
George Holmes
Emily Thomas
Trudy Woolley
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 54

HR MATTERS
Shifting Definitions
The elements of an employment contract and
the cost of avoiding pension scheme pay-outs.
AUTHOR – Gareth Edwards
THE Employment Appeal
Tribunal (EAT) has offered
guidance on how to interpret
a Supreme Court judgment
in a recent case in the
context of an employment
status dispute.
Considering Uber BV v Aslam and Others,
the case of Dr Mark Ter-Berg v Simply Smile
Manor House Ltd and Others, involved
a dentist who worked under a standard
British Dental Association agreement
under which he had to provide dental
services at specified places. The agreement
stated it was not an employment contract.
It contained a substitution clause requiring
Ter-Berg to provide a locum to cover any
absence of 20 days or more.
Ter-Berg brought an Employment
Tribunal claim for automatic unfair
dismissal, alleging he had been unfairly
dismissed because he had made a
protected disclosure. The facts of the
alleged disclosure and the subsequent
termination of the agreement were beyond
the scope of the EAT judgment.
In order to be able to bring his
Employment Tribunal claims, Ter-Berg
needed to show he was an employee at
the relevant time. He accepted that he
was initially engaged as a self-employed
contractor. However he argued that the
nature of the relationship had changed
over time so that he ended up being an
employee.
The Employment Tribunal disagreed. It
found that Ter-Berg was not an employee,
because it said that none of the elements
of an employment contract were present.
Ter-Berg appealed to the EAT, which
allowed the appeal in part. It disagreed
with the tribunal’s interpretation of the
substitution clause and remitted the case
to a new tribunal on that basis. However,
the EAT remarked that it was acceptable
for the tribunal to start its analysis by
looking at the agreement between Ter-Berg
and the practice.
In the Uber case, the Supreme Court
had said that the question of whether an
individual is a worker will turn on the
statutory definition of worker rather than
on what is written in the contract. The EAT
has now confirmed that this does not mean
that the tribunal cannot use a contract as a
starting point in its analysis.
A recent Employment Appeal Tribunal
decision acts as a reminder for employers
to consider pension scheme implications
at the earliest possible stage when
planning redundancies.
In Cook v Gentoo Group Ltd, the claimant
was made redundant just short of his 55th
birthday. He was a member of a pension
scheme. According to the rules of the
scheme, when a member reaches 55 and
is either made redundant or is terminated
on the grounds of business efficiency,
they are entitled to immediate payment
of their retirement pension without
actuarial reduction. In practical terms,
this can trigger a significant cost to the
employer.
In Mr Cook’s case, the employer
curtailed the redundancy procedure in
order to ensure he was made redundant
before reaching the age of 55. After an
initial consultation at the beginning of
May 2019, Cook went off sick. He did not
attend subsequent consultation meetings
and was dismissed on 16 May 2019.
Age, pensions and redundancy
Had the redundancy procedure not been
curtailed, Cook would have been made
redundant after his 55th birthday, costing
his employer £80,000. Cook claimed that
he had been unfairly dismissed, and that
the curtailment of the redundancy process
constituted direct age discrimination.
A tribunal agreed Cook had been
unfairly dismissed; it found that the speed
of the curtailed redundancy consultation
procedure was unfair, and that there had
been no real attempt to identify suitable
alternative employment.
The tribunal also found that if the
employer had run a fair process, Cook
would have still been made redundant,
but this would have been after his 55th
birthday.
However, the tribunal dismissed
Cook's claim that the curtailment of the
redundancy procedure was directly age
discriminatory. It found that he had
identified inappropriate comparators,
and that in any event it would have found
any age discrimination to be justified as
a proportionate means of achieving a
legitimate aim.
Cook appealed to the Employment
Appeal Tribunal (EAT). The EAT upheld
the appeal. The tribunal had not
considered why the detrimental treatment
was a proportionate means of achieving
a legitimate aim. The tribunal had an
opportunity to explain its reasoning
before the EAT reached its decision and
identified the employer's aim as being
to save the costs that would have been
incurred by paying into the pension. It
also said the detriment caused to Cook
would have been proportionate in light of
other payments he had received, such as
redundancy and notice pay amounting to
£47,000.
The EAT was not convinced that this
was part of the tribunal's reasoning at
the time of the original decision. It has
remitted the claim to a new tribunal for
reconsideration.
Gareth Edwards is a partner in the
employment team at VWV.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 55

Cr£ditWho?
CICM Directory of Services
COLLECTIONS
COLLECTIONS LEGAL
CREDIT DATA AND ANALYTICS
Controlaccount
Address: Compass House, Waterside, Hanbury Road,
Bromsgrove, Worcestershire B60 4FD
T: 01527 386 610
E: sales@controlaccount.com
W: www.controlaccount.com
Controlaccount has been providing efficient, effective and
ethical pre-legal debt recovery for over forty years. We help our
clients to improve internal processes and increase cashflow,
whilst protecting customer relationships and established
reputations. We have long-standing partnerships with leading,
global brand names, SMEs and not for profits. We recover
over 30,000 overdue invoices each month, domestically and
internationally, on a no collect, no fee arrangement. Other
services include credit control and dunning services, international
and domestic trace and legal recoveries. All our clients have
full transparency on any accounts placed with us through our
market leading cloud-based management portal, ClientWeb.
BlaserMills Law
High Wycombe | Amersham | Marlow | Silverstone
Rickmansworth | London
Jackie Ray : 07802 332104 | 01494 478660
jar@blasermills.co.uk
Daria Stepien : 01494 478674
das@blasermills.co.uk
Edward Bible : 07766 013352 ceb@blasermills.co.uk
www.blasermills.co.uk
Commercial Recoveries & Insolvency
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.
identeco – Business Support Toolkit
Compass House, Waterside, Hanbury Road, Bromsgrove,
Worcestershire B60 4FD
Telephone: 01527 386 607
Email: info@identeco.co.uk
Web: www.identeco.co.uk
identeco Business Support Toolkit provides company details
and financial reporting for over 4m UK companies and
business. Subscribers can view company financial health and
payment behaviour, credit ratings, shareholder and director
structures, detrimental data. In addition, subscribers can also
download unlimited B2B marketing and acquisition reports.
Annual subscription is only £79.95. Other services available
to subscribers include AML and KYC reports, pre-litigation
screening, trace services and data appending, as well as many
others.
CREDIT MANAGEMENT SOFTWARE
Global Credit Recoveries
GCR 20-22 Wenlock Road,
London N1 7GU
Charles Mayhew FCICM or Joshua Mayhew ACICM
T: +44 (0) 203 368 8630
E: INFO@GLOBALCREDITRECOVERIES.COM
W: WWW.GLOBALCREDITRECOVERIES.COM
Winners of the Debt Collection Agency of The Year at the British
Credit Awards 2023 - Global Credit Recoveries are specialists in
Global Arbitration & Debt Collection.
We specialise in the UK, Europe, The Middle East and the U.S.A,
working as an extension of many CICM members companies for
over 30+ years.
Speak with us today in our London or Dubai offices, to see how
we can assist you.
We have the ability, and network, to have someone visiting your
debtors offices, throughout EMEA, within 72 hours.
Recovering funds globally, on a No-Recovery, No-Fee basis.
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
Cr£ditWho?
CICM Directory of Services
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.”
CREDIT DATA AND ANALYTICS
CoCredo
Missenden Abbey, Great Missenden, Bucks, HP16 0BD
T: 01494 790600
E: customerservice@cocredo.com
W: www.cocredo.co.uk
For over 20 years, CoCredo, as one of the UK's leading Credit
Report companies, has helped protect thousands of customers
from bad debt. Our data is compiled and constantly updated from a
variety of prominent UK and international suppliers, encompassing
230 countries, so that our clients can access the latest available
information in an easy-to-read report. We offer tailored products
and service solutions, from market-leading Dual Reports and
integrated XML solutions, monitoring and delivering flexible 'data
on the go' package options that reduce costs and boost cash flow.
Our clients feel valued that we are a part of their customer journey
and we have consistently been finalists and winners of numerous
Small Business and Credit Awards since 2014.
We provide award-winning customer service which is reflected in
our client retention rate of 99%.
HighRadius
T: +44 (0) 203 997 9400
E: infoemea@highradius.com
W: www.highradius.com
HighRadius provides a cloud-based Integrated Receivable
Platform, powered by machine learning and AI. Our Technology
empowers enterprise organisations to reduce cycle time in the
order-to-cash process and increase working capital availability by
automating receivables and payments processes across credit,
electronic billing and payment processing, cash application,
deductions, and collections.
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.
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.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 56

FOR ADVERTISING INFORMATION OPTIONS
AND PRICING CONTACT
paul@centuryone.uk 01727 739 196
CREDIT MANAGEMENT SOFTWARE
CREDIT MANAGEMENT SOFTWARE
ENFORCEMENT
Blackline
33 Charlotte St, London W1T 1RR
T: +44 (0) 203 318 5941
E: sales@blackline.com
W:www.blackline.com/solutions/accounts-receivableautomation/
Transform and modernize your accounts receivable processes.
Release cash from customers using next-generation intelligent
AR automation. Optimize working capital by driving world-class
order-to-cash processes and leverage 'decision intelligence' to
drive better business outcomes.
Cash Application AR Intelligence
Credit & Risk Management
Collections Management
Disputes & Deductions Management
Team & Task Management
Reduce or eliminate manual tasks, and enable AR teams to
focus on actions that drive results. Strengthen decision
intelligence to deliver significant value to the organization
by harnessing BlackLine’s ground-breaking AR Intelligence
module - unlock hidden data in Accounts Receivable processes
and understand customer behaviours in real time.
For more information and a free instant ROI calculation for AR
visit https://www.blackline.com/solutions/accounts-receivableautomation/
Data Interconnect Ltd
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
We are dedicated to helping finance teams take the cost,
complexity and compliance issues out of Accounts Receivable
processes. Corrivo is our reliable, easy-to-use SaaS platform
for the continuous improvement of AR metrics and KPIs in a
user-friendly interface. Credit Controllers can manage more
accounts with better results and customers can self-serve on
mobile-responsive portals where they can query, pay, download
and view invoices and related documentation e.g. Proofs of
Delivery Corrivo is the only AR platform with integrated invoice
finance options for both buyer and supplier that flexes credit
terms without degrading DSO. Call for a demo.
ContactEngine
A NICE Company
Email: info@contactengine.com
Website: www.contactengine.com
ContactEngine is a proactive customer engagement platform,
which connects organizations to its customers through AI
powered digital conversations, ​enabling fully automated
customer journeys. The game changer for collections?
Companies can now talk directly with tens of thousands of
people simultaneously. This enables collections treatment
automation using intelligent, natural language conversations,
dynamic engagement strategies, and easy-to-trigger payment
transactions that move the needle and help organisations collect
outstanding debt faster. ContactEngine anticipates the need
to interact with customers and fully automates personalized,
multichannel conversations that engage customers over days,
weeks, months and years to achieve specific milestones or
trigger next steps based on customer responses.
For more information, visit www.contactengine.com/solutions/
collections or email info@contactengine.com
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.
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.
My DSO Manager
22, Chemin du Vieux Chêne,
Bâtiment D, Meylan, FRANCE
T: +33 (0)458003676
E: contact@mydsomanager.com
W: www.mydsomanager.com
My DSO Manager is an all-in-one intelligent SaaS accounts
receivable and credit management system that provides realtime
insight and scalability from SMEs to international multientity
companies. It helps AR analysts, accounting or finance
managers, and any client-facing employee, manage risk and
maximize cash collection.
It can swiftly integrate any kind of data from any ERP and
implement any customization due to its creative, competent IT
teams that are headquartered inside the firm and collaborate
closely with support employees, many of whom were formerly
credit managers at big corporations.
The feature-rich functions, automated reminders, alerts, and
numerous services connected to the solution, such as EDM/
CRMs/insurance/e-payment/BI platforms etc., along with a
reasonable pricing system, have simplified the credit-to-cash
cycle by monitoring daily KPIs like DSO, aging balance, overdues/
past-dues, customer behavior, and cash forecast.
My DSO Manager's worldwide clientele are its real ambassadors,
who assist the company in expanding on an ongoing basis.
Cr£ditWho?
CICM Directory of Services
Court Enforcement Services
Adele Whitehurst – Client Relationship Manager
M: +44 (0)7525 119 711 T: +44 (0)1992 367 092
E : a.whitehurst@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)1260 275716
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.
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 57

Cr£ditWho?
CICM Directory of Services
FOR ADVERTISING INFORMATION
OPTIONS AND PRICING CONTACT
paul@centuryone.uk 01727 739 196
INSOLVENCY
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 Bethan Evans, Licensed
Insolvency Practitioner, at bevans@menzies.co.uk or call
+44 (0)2920 447 512.
Red Flag Alert Technology Group Limited
49 Peter Street, Manchester, M2 3NG
T: 0330 460 9877
E: sales@redflagalert.com
W: www.redflagalert.com
The UK’s No1 Insolvency Score is available as platform
designed to help businesses manage risk and achieve growth
using real-time data. The only independently owned UK credit
referencing agency for businesses. We have modernised the
way companies consume data, via Graph QL API and apps for
many CRM / ERP systems to power businesses decisions with
the most important data taken in real-time feeds, ensuring our
customers are always the first to know.
Red Flag Alert has a powerful portfolio management tool
enabling you to monitor all your customers and suppliers so
you and your teams can receive email alerts on data events
i.e. CCJ, Petitions, Accounts, Directors, amongst 84 alerts
produced and tailored to your business.
Red Flag Alert works towards growing and protecting
businesses using advanced machine learning and AI technology
data to provide businesses with information to deliver best in
class sales, credit risk management and compliance.
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.
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.
Quadient AR by YayPay
T: +44 20 8502 8476
E: r.harash@quadient.com
W: www.quadient.com/en-gb/ar-automation
Quadient AR by YayPay makes it easy for B2B finance teams
to stay ahead of accounts receivable and get paid faster – from
anywhere. Integrating with your existing ERP, CRM, accounting
and billing systems, YayPay organizes and presents real-time data
through meaningful, cloud-based dashboards. These increase
visibility across your AR portfolio and provide your team with a
single source of truth, so they can access the information they
need to work productively, no matter where they are based.
Automated capabilities improve team efficiency by 3X and
accelerate the collections process by making communications
customizable and consistent. This enables you to collect cash
up to 34 percent faster and removes the need to add additional
resources as your business grows.
Predictive analytics provide insight into future payer behavior to
improve cash flow management and a secure, online payment
portal enables customers to access their accounts and pay at any
time, from anywhere.
FIS GETPAID
25 Canada Square
London, GB E14 5LQ
T: +447730500085
E: getinfo@fisglobal.com.
W: www.fisglobal.com
The award-winning FIS GETPAID solution is a fully integrated,
web-based order-to cash (O2C) solution that helps companies
improve operational efficiencies, lower DSO, and increase cash
flow. GETPAID provides process automation, artificial intelligence,
and workflow across the O2C cycle, with detailed analysis and
reporting for accurate cash forecasting. FIS is a global leader in
financial services technology that empowers the financial world.
For more information visit https://www.fisglobal.com/en/cashflowand-capital/credit-and-collections
or email getinfo@fisglobal.com.
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, a 5* Trustpilot rated agency, solely
specialises in the recruitment of Permanent, Temporary & Contract
Credit Control, Accounts Receivable and Collections staff
including remote workers. Part of The Portfolio Group, an awardwinning
Recruiter, we speak to Credit Controllers every day and
understand their skills meaning we are perfectly placed to provide
your business with talented Credit Control professionals. Offering
a highly tailored approach to recruitment, we use a hybrid of faceto-face
and remote briefings, interviews and feedback options.
We provide both candidates & clients with a commitment to deliver
that will exceed your expectations every single time.
FOR
ADVERTISING
INFORMATION
OPTIONS AND
PRICING CONTACT
paul@centuryone.uk
01727 739 196
Cr£ditWho?
CICM Directory of Services
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 58

View our digital version online at www.cicm.com
Log on to the Members’ area, and click on the tab labelled
‘Credit Management magazine’
Just another great reason to be a member
Credit Management is distributed to the entire UK and international
CICM membership, as well as additional subscribers
Brave | Curious | Resilient
www.cicm.com | +44 (0)1780 722900 | editorial@cicm.com
Brave | Curious | Resilient / www.cicm.com / May 2023 / PAGE 59

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