April 2016 Credit Management magazine

credit

THE CICM JOURNAL FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS

CM

CREDIT MANAGEMENT

APRIL 2016 £10.00

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

FALLING STAR

THE INDUSTRY SPEAKS OUT

ON THE EU REFERENDUM

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CICM Credit Insurance Broker

of the year 2015 and 2016

‘‘This company is a class apart and continues to

innovate and improve itself worthy of an award’’

- The judges of The Chartered Institute of Credit Management Awards 2016

WINNER

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CONTENTS

APRIL 2016

www.cicm.com

REGULARS

4 Editor’s column

6 News - Feature special

16 CICMQ News

26 Freeths Legal Matters

36 International Trade

40 HR Matters

48 New members

52 Forthcoming Events

54 Branch News

59 Cr£ditWho? directory

63 Crossword

FEATURES

11 INSOLVENCY NEWS

David Kerr takes a look at the latest news

from the world of insolvency.

12 OPINION

Philip King urges members to vote for the .

CICM Advisory Council.

14 VIEW FROM THE SEA

Feature special

The death of the long lunch…according .

to David Andrews.

17 SHAKE IT ALL ABOUT

Front cover feature

In or out? should we remain or leave the .

European Union. The jury is still out.

22 THE AUSTRALIAN VIEW

Feature special

Alan Harries reviews changes in the .

language and tone of dealings between .

collections agencies and individuals in .

debt in Australia.

CICM GOVERNANCE

24 BENCH PRESS

Amir Ali’s regular update from the world of

civil court enforcement.

26 LEGAL HELP FOR CICM MEMBERS

The CICM’s legal partner Freeths provides

legal advice for CICM members and their

employees.

28 ASK THE EXPERTS

Feature special

We ask Stephen Lewis FCICM: How do I

choose a commercial debt collector?

30 AND THE WINNER IS...

In the wake of the CICM British Credit

Awards, Steve Richardson talks about his

satisfaction in Biffa’s win using Alloc8.

32 PARKING PENALTIES

A Supreme Court judgment in a recent .

case affecting motorists and credit .

managers has wider implications for .

contract law. Peter Walker explains.

35 TRADE TALK

Lesley Batchelor OBE considers the

challenges faced by small businesses

conducting international trade.

38 PAYMENT TRENDS

Jason Braidwood FCICM(Grad) analyses .

the latest monthly business-to-business .

payment performance statistics.

42 BUSINESS APPS

Credit Management takes a look at the

most useful business apps for tablets

and the most popular games for passing

the time.


46 EDUCATION

Equip yourself for specialist and .

management roles by investing in

Level 5 Diploma in Credit Management .

MCICM(Grad) studies

6

17

14

PRESIDENT

Stephen Baister FCICM

CHIEF EXECUTIVE

Philip King FCICM CdipAF MBA

EXECUTIVE BOARD

Bryony Pettifor FCICM(Grad) - Chair

David Thornley FCICM

Gerard Barron FCICM

Laurie Beagle FCICM – Vice Chair

Larry Coltman FCICM – Treasurer

Victoria Herd FCICM

ADVISORY COUNCIL

Bryony Pettifor FCICM(Grad) – Chair

Carole Morgan FCICM

Catherine Bradford MCICM (Acting)

Charlie Robertson FCICM

Chris Sanders FCICM

David Thornley FCICM

Edward Judge MCICM

Eleimon Gonis MCICM

Gerard Barron FCICM

Glen Bullivant FCICM

Jacky Cooper FCICM

Larry Coltman FCICM – Treasurer

Laurie Beagle FCICM – Vice Chair

Neil Jinks FCICM

Paul Woodward MCICM(Grad)

Peter Powell MCICM (Acting)

Peter Whitmore FCICM

Richard Seadon FCICM

Salima Paul FCICM

Sharon Adams MCICM(Grad)

Sue Chapple FCICM

Victoria Herd FCICM

The recognised standard in credit management

www.cicm.com April 2016 3


CREDIT MANAGEMENT

CM

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

the

Editor’s

column

WHAT IF THE HOKEY COKEY

IS WHAT IT’S ALL ABOUT?

I

can hardly contain myself regarding the

in/out, shake it all about EU referendum.

Three months still to go, and I’m already

bored. I’m not sure I can summon

the strength to shout at the television

(even though the BBC has found in Chris

Mason an even more irritating political

commentator than Nick Robinson; Auntie

appears to have exchanged an excitable

schoolboy for an excitable puppy.)

Aside from the politicians and

journalists, I don’t know of anyone among

my peer group who is either engaged by

the debate, or knows which way to vote.

Information that is presented as ‘fact’

by both sides is dubious at best, and

despite calls for a focus on the positives of

staying in, the arguments have inevitably

descended into scaremongering about the

dangers of being a bit-part player on the

fringes.

I know that the decision is important,

but I can’t drag myself away from a feeling

of complete apathy. The debate, we are

told, should not be about personalities, but

that is precisely what is has become: Boris

versus Dave. The discussions, similarly,

should not be about immigration, but that

is the only area of debate that arouses any

real passion. We should focus, I am told,

on the business risk, and the damage it

will do to our economy. By leaving, we risk

throwing it all away.

Really? While I so want to make the

‘right’ decision, I am torn. I don’t believe the

doomsayers who warn that we will be less

secure by leaving the EU, or that it will take

ten years to renegotiate our various trading

agreements with other EU partners. If

you have a product or service that other

people want to buy, they will find a way

of buying it. And I don’t believe for one

minute that being part of the EU has

given us a level playing field: have we all

forgotten the French farmers burning our

lambs?

And this is what worries me the most: I

fear that many will end up basing their final

decision more on jingoism than informed

thinking, because the truth is that no-one

can possibly say what the world will look

like if we leave, or stay as part of the

union. Given that I am not European, and

struggle with the concept of even being

‘British’, I have a feeling I know where my

vote may ultimately be heading, but it’s not

too late for somebody to change my mind.

CM MAGAZINE | CONTACT AND PUBLISHING DETAILS: ISSN 0265-2099

Publisher

Chartered Institute of Credit Management

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Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor

Sean Feast

Deputy Editor

Alex Simmons

Art Editor

Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Imogen Hart, Tom Berger, Iona Yadallee

Advertising

Anthony Cave

Telephone: 0203 603 7934

Email: anthony.cave@cabbell.co.uk

Printers

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Single copies: £10.00

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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.

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CICM NEWS

CMNEWS

A

round-up

of news stories

from the world

of consumer and

commercial

credit.

By SEAN FEAST

COMPANIES REPORT DIFFICULTIES

IN MAKING PAYMENTS ON TIME

THE number of overdue payments

experienced by UK businesses

reached a two-year high in the final

quarter of 2015, with increases

reported in 14 out of 17 major industry

sectors, according to a new report from

Euler Hermes, the trade credit insurer.

The Euler Hermes Quarterly Overdue

Payments Report analyses 17 major

industry sectors for reported debtor

payment incidents, which it receives daily

from the 250,000 UK businesses it insures.

These include any incidents of companies

not being paid for goods and services on

time, such as late or delayed payments,

default, insolvency, county court judgments,

or credit insurance claims.

Firms reporting delayed debtor

payments rose by 12 percent from October

to December 2015 compared to the third

quarter of 2015; the highest level for

eight consecutive quarters. According

to the findings, one in six (17 percent)

companies reported having difficulty in

making payments on time last year, up from

10 percent in 2014. The average number

of seasonally adjusted overdue payment

incidents reported per quarter fell by 11

percent year-on-year in 2014 versus 2013,

before increasing by eight percent in 2015.

“Business continues to drive the growth

and export agenda, but the increase in

financial stress across much of UK plc

illustrates that still more needs to be done

to stop the domino effect of late payments,”

says Valerio Perinelli, CEO of Euler Hermes

UK.

Construction companies registered more

payment delays than any other single UK

sector last year, accounting for 31 percent

of all payment incidents reported. Overdue

payments are not particularly unusual in

a sector where disputes are often partly

to blame for delays. However, the sector

suffered a 27 percent year-on-year rise in the

number of overdue payments incidents in

2015, as some firms toiled with low-margin

contracts secured during the last recession.

Payments delays surged in the final

quarter of last year and were up 12 percent

compared with July to September.

The research found that the most

impacted sub-sectors were general

contractors, civil engineering providers and

installers of wiring and fittings - with the latter

suffering disproportionately due to large

projects running over budget.

“The growth in December’s output

signalled a positive end to the year for UK

construction, but some companies in the

sector continue to grapple with the issue of

low-margin legacy contracts, rising capital

pressures and an increasing skills gap – all

putting businesses and payment terms under

pressure,” says Dirk Kotze, Head of Risk

Underwriting at Euler Hermes UK.

Meanwhile, the UK automotive and

electronics sectors offered some cheer as

reported payment issues fell by 12 percent

and 15 percent year-on-year, respectively.

However, there were significant increases

across the metal and chemicals industries as

they struggled to cope with falling European

demand and the China slowdown: 2015

payment issues were up 28 percent and 13

percent respectively compared to 2014.

“While some UK industry sectors have seen

reductions in overdue payment incidents,

insolvencies are set to rise five per cent this

year and average day sales outstanding

(DSO) is expected to edge up to 56 days,”

Dirk adds. “The start to 2016 has seen

increased volatility, so companies need to

remain vigilant.” eulerhermes.co.uk

6 April 2016 www.cicm.com

The recognised standard in credit management


NEWS IN BRIEF

ACCOUNTING BODY WARNS OF

STORMY SEAS AHEAD

UK companies are predicted to invest

less this year than in previous years,

threatening the Chancellor’s plans to

rebalance the budget by 2020, according

to the latest Economic Forecast from

the Institute of Chartered Accountants in

England and Wales (ICAEW).

Fragile business confidence means

investment growth is expected to fall from

6.4 percent in 2015 to 5.2 percent this

year, despite strong financial positions,

adding another ingredient to the cocktail

of risks for George Osborne who wants

to move the UK away from domestic

consumption and credit.

The ICAEW is downgrading its

economic forecast from 2.2 percent in

2015 to 2.0 percent this year, due to

declining business confidence, volatile

global financial markets and a fall in

capital spending growth.

Businesses have weaker motivations

to invest due to their growing uncertainty

on the economy. Both the forthcoming

referendum on the UK’s membership of the

EU and the recent turbulence in financial

markets have contributed to the uncertain

outlook.

After a hiatus in summer 2015, the

labour market is showing strong job

creation. ICAEW expects employment

growth to slow, but the unemployment

rate is forecast to fall further to 5.0 percent

in 2016.

Pay growth also appears to have

plateaued. The introduction of the National

Living Wage will offer some support for

those on low incomes, but more broadly

the ICAEW expects earnings to grow

by 2.8 percent in 2016, at a similar pace

to last year.

Exporters will benefit from the recent

depreciation of the pound and an improved

performance in US and European markets.

But growth is skewed by concerns about

China and emerging markets.

Michael Izza, ICAEW Chief Executive,

says the economy has been too reliant

on the mini-consumer boom: “The

boost to spending power enjoyed by

consumers last year will steadily fade as

inflation gradually picks up, while faltering

confidence means that growth in business

investment is also likely to cool.

“George Osborne will be forced to

adjust his borrowing targets, cut spending

further or raise taxes to fix the nation’s

finances. It is evidently becoming a three-

Parliament problem.”

icaew.com

DUTCH COURAGE

AFTER 14 years at 1st Credit, co-founder

and Business Development Director Charles

Holland has decided to retire. He will continue

to work with the business on a part-time

consultancy basis for specific projects.

Eddie Nott, CEO of 1st Credit, said that

Charles has had a profound impact on the

business: “Well known in the industry, he

will be greatly missed. We are delighted

that he has agreed to help us in a parttime

consultancy capacity as he starts his

retirement.” In other news, Chief Financial

Officer Simon Dighton has also decided to

leave and will be replaced by Bruce McLaren,

who will retain his responsibilities as Chief

Investment Officer. Client Relationship

Director Ian Davies, who joined 1st Credit in

2003, has been promoted to the role of Sales

Director and will assume responsibility for the

company’s client relationships. 1stcredit.com

PRINCIPAL BENEFIT

STUDYING for CICM qualifications means

you are eligible to apply for an NUS Extra

card. The cost is £12 for one year (that’s £1 a

month) from the date of purchase. The card

is also available for two or three years. You

can apply for a card if you are studying at a

teaching centre, virtual classroom or via one

of the home study routes and registered with

the CICM. Visit nus.org.uk and register online.

SURVEY WINNER

Congratulations to Jodie Foster ACICM,

winner of the CICM Membership Survey prize

draw. The princely sum of £250 is on its way

to you to spend wisely.

VULNERABILITY TASKFORCE ESTABLISHES

NEW GOLD STANDARD

WHAT has been described as the first ever

financial services Vulnerability Taskforce

has published a report outlining best

practice recommendations for the industry

as it aims to improve the experiences and

outcomes of customers with challenging

personal circumstances.

Ensuring that customers who are

vulnerable are treated not only fairly but

also with empathy and sensitivity to their

circumstances is a growing priority. The

Taskforce, which brings the financial

services industry together with charities

and consumer groups, has outlined steps

designed to build on the work already

undertaken by many institutions.

Chief Executive of the Money Advice

Trust, Joanna Elson OBE, who chaired the

Taskforce, says this issue has never been

higher on the agenda:

“This report, which builds on and

amplifies the Financial Conduct Authority’s

Occasional Paper on vulnerability last

year, represents a significant step

forward in improving the experience of all

customers, no matter what their personal

circumstances.

“The real test of the Taskforce’s work,

of course, will be whether customers

who are vulnerable begin to experience

improvements in the everyday service

they receive – whether they are accessing

a current account, managing a loan or

making any other interaction with financial

service providers of all kinds. I have every

confidence that firms will rise to this

challenge, and that real results on the

ground will follow.”

moneyadvicetrust.org

The recognised standard in credit management

www.cicm.com April 2016 7


CICM NEWS

TURNING UP

THE VOLUME

Sean Feast reports on new figures from the Credit Services Association’s

Data Gathering Initiative (DGI) into commercial debt.

WHILE the consumer collections

industry continues to grapple

with the needs of a new

regulator, and confusion

regarding ‘regulated’ and ‘unregulated’

debt (see Credit Management January/

February issue), those specialising in

business-to-business collections continue

to do what they do best: collecting the

cash.

That said, the value of debt collected

in the third quarter of 2015 actually fell

slightly on the previous quarter, down

from £85,881,251 to £76,441,731 – a fall

of c11 percent. This is a considerable

increase, however, on the corresponding

period in 2014 (£67,512,660), according

to new figures released exclusively to

Credit Management by the Credit Services

Association (CSA).

Interestingly, the fall in the amount

collected corresponds, to a modest

degree, to a fall in the value held which in

the third quarter stood at £796,443,332,

a slight drop on the previous quarter

(£829,533, 875). This is some way short

of its peak in the second quarter of 2014,

however, where the value held by members

was £1,075,620,630.

Perhaps confusingly, while the value

of debt held has fallen, and the value

of money collected is also in decline,

the number (i.e volume) of debts held

actually rose from Q2 to Q3 from 397,920

to 429,293 – an increase of almost eight

percent and the highest figure for 12

months. This puts the average balance of

each debt passed to a CSA member for

collection at £1,855.24.

On the consumer side, according to

figures published last month, for the first

time since DGI records began the volume

of debt placements held by debt

collection agencies rose from 18,040,160 in

Q2 2015 to 19,686,436 in the third Quarter,

putting Agencies back to a position last

seen at the start of 2015. And while the

value of debt has declined slightly (down

1.8 percent to £26.5 billion from Q2 and

10.2 percent down on the same period in

2014), the better news is that DCAs have

continued to collect more.

For the fourth quarter in succession,

collections values have grown, up 10.7

percent on Q2 2015 from £468.7 million

to £518.7 million. Put another way, this

is now a full 12 months of consistent

collections growth from the DCA sector

and a staggering 26 percent increase since

Q3 2014.

This is a considerable increase,

however, on the corresponding

period in 2014 (£67,512,660),

according to new figures released

exclusively to Credit Management

by the Credit Services Association

(CSA).

8 April 2016 www.cicm.com

The recognised standard in credit management


CSA Data Gathering Initiative (DGI)

Commercial Collections

£ CSA Value of Data debt Gathering collected by CSA Initiative DCA members (DGI)

CSA Data Gathering Initiative (DGI)

Commercial

£85.88M

Collections

Commercial CSA Data Gathering CollectionsInitiative (DGI)

£ CSA Value of Data debt Gathering collected £76.44M by CSA Initiative DCA members (DGI)

£ Commercial Value of debt collected Collections

Commercial

£85.88M

Collections

by CSA DCA members

£ Value of debt collected by CSA DCA members

£ Value of £85.88M debt collected £76.44M by CSA DCA members

£85.88M £76.44M

£85.88M

Q2 2015 Q3 2015

£76.44M

£76.44M

£ Value of debt held by CSA DCA members

Q2 2015 Q3 2015

Q2 2015 Q3 2015

£ Value £829.5m of Q2 debt 2015 held by CSA Q3 DCA 2015 members

Q2 £ 2015 Value of debt £796.4m Q3 held 2015 by CSA DCA members

£829.5m £ Value of debt held by CSA DCA members

£ Value of debt held by CSA DCA members

£829.5m£796.4m

£829.5m £796.4m

£829.5m

£796.4m

£796.4m

Q2 2015 Q3 2015

Volume of debt held by CSA DCA members

Q2 2015 Q3 2015

Q2 2015 Q3 2015

Volume Q2 of debt 2015held by Q3 CSA 2015 DCA members

Q2 2015 Volume of debt Q3 2015 held by CSA

AVERAGE

DCA members

BALANCE:

Volume of debt held by CSA £1,573 DCA members

Volume of debt

(Q3 2013)

c429,293

held by CSA DCA members

£1,855 (Q3 2015)

c397,920

AVERAGE BALANCE:

£1,573 (Q3 2013)

c429,293 +18% INCREASE

£1,855 (Q3 2015)

c397,920 c429,293 AVERAGE BALANCE:

Q2 2015

Q3 2015 c429,293 £1,573 (Q3 2013)

c397,920c429,293

+18% INCREASE

£1,855 (Q3 2015)

c397,920

Consumer

Q2 2015

Collections

Q3 2015 +18% INCREASE

Volume Q2 of debt 2015held by Q3 CSA 2015 DCA members

Consumer Q2 2015 Collections Q3 2015

Q2 2015 Consumer c19,686,436

Q3 Collections 2015

c18,040,160

Volume

Consumer

of debt held by CSA DCA members

Volume of debt Collections

Consumer Collections

held by CSA DCA members

Volume of c19,686,436

debt held by CSA DCA members

c18,040,160

Volume of debt held by c19,686,436

CSA DCA members

c18,040,160 c19,686,436

c18,040,160 c19,686,436

c18,040,160

Q2 2015 Q3 2015

£ Value of debt collected by CSA DCA members

Q2 2015 Q3 2015

Q2 2015 Q3 2015

£ Value of Q2 debt 2015 collected Q3 by CSA 2015 DCA members

£468.7m

Q2 £ 2015 Value of debt Q3

£518.7m

collected 2015 by CSA DCA members

£ Value of debt collected by CSA DCA members

£ Value of debt collected by CSA DCA members

£468.7m £518.7m

£468.7m £518.7m

£468.7m £518.7m

£468.7m £518.7m

Q2 2015 Q3 2015

Source: CSA Data Gathering Initiative

Q2 2015 Q3 2015

Q2 2015 Q3 2015

Source: CSA Q2 Data 2015 Gathering Initiative

Q3 2015

Q2 2015 Q3 2015

Source: CSA Data Gathering Initiative

Source: CSA Data Gathering Initiative

Source: CSA Data Gathering Initiative

AVERAGE BALANCE:

£1,573 AVERAGE (Q3 BALANCE: 2013)

£1,855 £1,573 (Q3 2015) 2013)

£1,855 (Q3 2015)

+18% INCREASE

+18% INCREASE

FEATURE

SPECIAL

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4%

fall 4% 4%

fall 4% 4%

fall

fall fall

8%

rise 8% 8%

rise 8% 8%

rise

rise rise

9%

rise 9% 9%

rise 9% 9%

rise

rise rise

11%

rise 11% 11%

rise 11% 11%

rise

rise rise

The recognised standard in credit management

www.cicm.com April 2016 9


DEBT MANAGEMENT COMPANY

REFUSED FCA AUTHORISATION

DEBT Management Company PDHL

Ltd has been refused authorisation by

the Financial Conduct Authority (FCA), a

decision that has sent shockwaves through

the DMC and collections communities. The

announcement follows legal action taken by

PDHL challenging the FCA’s decision that has

been subsequently withdrawn. According to

the regulator, up to 16,000 customers will be

affected.

President of the CSA, Leigh Berkley, says

agencies should be aware that customers

may have already been contacted by a new

debt management company (DMC) as some

contact detail lists have been sold by firms

looking to exit the market, rather than sell

their portfolios.

“Members should also be aware that

PDHL and other refused DMCs may still

be receiving money from customers under

DMPs and the FCA expects all firms that are

no longer authorised, to ensure funds are

correctly applied as part of an orderly winding

down of their activities. Protection of client

funds is a high priority for the FCA.”

The CSA will be examining the Court decisions

made during the legal action pursued, but now

withdrawn by PDHL, but details emerging already

indicate that precedents have been set around

the ability to continue to trade under an Interim

Permission in the event of a decision not to grant

authorisation.

The association has suggested that other DMCs

may be refused authorisation or withdraw their

applications.

fca.org.uk

BEGBIES TRAYNOR ENTERS INTO

CORPORATE PARTNERSHIP

THE Chartered Institute of Credit

Management (CICM) has signed an

agreement with Begbies Traynor, one of

the UK’s leading Corporate Rescue and

Recovery practices, to become a new

corporate partner.

Begbies Traynor handles more than 1000

corporate recovery cases per year, operating

from a network of more than 30 UK offices,

with clients ranging from SMEs to quoted

companies and global banks.

Mathew Headland, the CICM national

relationship manager at Begbies Traynor

says the firm already has a close relationship

with members: “We understand the key

role credit managers play in the ongoing

financial health of their organisations. We

also understand the pressures that many

face and have developed a creditor services

offering to support their aims,” he says.

“Whether this is utilised as a basic

free consultation by phone, or a full suite

of services to cover all claims in any

insolvency, we can work with members

to provide a tailored solution,” he adds.

“Begbies Traynor is proud to be a partner of

the CICM and supporting its members.”

For information, contact Mathew

Headland on 07711 898525 or Mathew.

Headland@begbies-traynor.com.

NEWS IN BRIEF

MAS EXIT

THE Money Advice Service, set up by

Government to provide people with ‘financial

education’, is to be scrapped less than

six years after its inception. The service is

considered not to have had enough uptake

from the general public despite investing

more than £100 million in developing and

promoting its website. It will be replaced by

a smaller body providing help for those in

financial difficulty. moneyadviceservice.org.uk

PSR SEEKS FEEDBACK ON MARKET

THE Payment Systems Regulator (PSR)

is seeking feedback from CICM members

following publication of the provisional

findings of its market review into the

ownership and competitiveness of the

infrastructure that supports the payments

systems Bacs, Faster Payments System

(FPS) and LINK.

It fears that common ownership by the

banks of VocaLink, the single infrastructure

provider that they rely on to process

payments, is having a negative impact on

innovation and competition in the industry.

PSR is proposing that these banks sell part

of their stakes in VocaLink to open the market

and allow for more effective competition and

innovation. In the UK, VocaLink processes

IN news destined to raise more than a few

eyebrows, The Allied group of companies

comprising Allied Global, Alliance

iCommunications, and Neptune Innovations,

has changed its operating name to Bill

Gosling Outsourcing.

The firm has confirmed that the

AND FINALLY...

over 90 percent of salaries, more than 70

percent of household bills and almost all

state benefits. Nearly every business and

person in the UK uses its technology and last

year the company processed over 11 billion

transactions with a value of £6 trillion.

Hannah Nixon, Managing Director,

Payment Systems Regulator, says now is the

time to ask whether or not it is operating best

practice: “The evidence we have gathered

shows that common ownership is hampering

competition and the speed of innovation in

the market.

“There needs to be a fundamental change

in the industry to encourage new entrants to

compete on service, price and innovation in

an open and transparent way.” psr.org.uk

name Allied International Credit (AIC) will

continue as the brand for its Third Party

Collection activity, and its bonds, licenses,

and authorisations will similarly remain

unchanged. CEO David Rae promises to

share more of the Bill Gosling story in the

near future. Should be interesting.

CICM IN BRIEF

This month's briefing includes Legal

Proceedings and Insolvency review,

details of the recent changes to

the CICM Accounting Principles

qualification, Legal Partner, Freeths,

with an overview of penalty clauses

in contracts and the latest Thinking

Blog from Corporate Partner,

Experian.

10 April 2016 www.cicm.com

The recognised standard in credit management


INSOLVENCY NEWS

DEAR MR BOND,

I EXPECT YOU TO PAY!

EVERY IP has a bond, like some sort of

secret agent hiding in the background

ready to step in and rescue the situation

when things go seriously awry. In this case,

a financial instrument designed to protect

creditors, primarily, if the IP is found to have

dishonestly or fraudulently removed money

from an insolvency estate. But does it work,

and do creditors benefit?

The requirement is a statutory one,

introduced in the ’86 Insolvency Act, and is

regulated by the Recognised Professional

Bodies (RPBs). IPs take out a general

enabling bond annually, without which

they cannot take appointments, and this

is lodged with the regulator. Monthly, they

then provide details of the cover required by

making returns setting out case names and

asset values etc. There is a maximum cover

of £5m per case.

So, what could possibly go wrong? How

could creditors ever lose out? There are

notable exceptions (not least where one

successor practice has paid substantial

funds to creditors), but how is it that in

30 years since its inception there have

been several claims, and yet in too many

instances relatively little paid to creditors in

those cases.

Claims are usually initiated by a

successor IP. When an IP is found to have

acted dishonestly, his cases will usually be

transferred to someone who can take them

over and investigate what went wrong,

claiming under the individual case bonds

where appropriate, and if necessary under

the general bond which provides additional

cover (up to £250,000). The bond provider

(an insurer) will appoint loss adjusters

and eventually decide what to pay. Their

obligation includes paying the reasonable

costs incurred by the claimant. But the

claims process seems to be a long drawn

out one, with strong resistance (perhaps

understandably so) to both the principal

claim and to agreement on costs.

But what if those costs exceed the value

of the claim? What if the bond value is

inadequate? What if the misappropriation

was by a person other than the IP (eg

someone else in the firm, but not the

licensed/bonded practitioner)? What if the

IP hadn't paid the premiums? How is the

successor remunerated for investigation

work on cases where no claim arises?

These problems have arisen, and have

caused the Government's Insolvency

Service to review the present bonding

regime; they contribute to a sense shared

by many that the system isn’t operating

as intended – is it fit for purpose? There

is likely to be a consultation on this in the

near future, so if you have experience of

cases involving bond claims and/or have

an interest in this subject then look out for

that. CICM’s Technical Committee will no

doubt respond on behalf of members when

the time comes, but will be better able to

do so with member input.

Solutions? Firstly, non-payment of

premiums must not be allowed to invalidate

a bond – at least, not retrospectively. If a

bond provider extends credit to an IP, then

they should use usual commercial recovery

mechanisms to pursue their debts.

A bond is a bond, and cannot be subject

to payment conditions beyond the control

of those who rely on it.

Secondly, and most importantly, the

question of costs has to be addressed.

Some advocate extending the scope of

the bond to include costs incurred across

a portfolio of successor cases; maybe also

increasing cover to better cater for the

sometimes necessary high costs involved

in proving fraud. Whether or not that is

changed, there is certainly an issue around

the extent of cover, as the amount of the

bond is based on the value of the assets

in the IP’s hands, without proper provision

for even reasonable costs on top of that.

However, whilst that might be possible at

a higher premium cost (most likely to be

met ultimately by creditors), the key issue is

controlling costs overall so that part of the

pay-out reaches creditors more often than

not.

Where the estate is replenished by the

bond, it ought not to be the case that all

those funds are eaten up by the successor's

costs. Some of these adjustments are

within the grasp of the parties involved –

regulators, successor practitioners, bond

providers and the Insolvency Service (which

has produced an excellent paper on the

subject and is keen to act). Legislation is an

option. There will be change. The debate is

what form exactly that will take, and when.

Successor practitioners play a key role in

supporting RPBs to fulfil their obligations as

beneficiaries under the current scheme, not

least in carrying out detailed investigations

that they are best placed to undertake as

office holders. But we need to find a better

balance between the interests of the parties

involved. Creditors will have their say – so

make the most of the opportunity when it

comes, for the purpose of the bond scheme

(an objective sometimes seemingly lost

in the melee) is to protect creditors from

potentially significant (albeit relatively rare)

fraud and dishonesty.

David Kerr MCICM is the Chief Executive of

the Insolvency Practitioners Association (IPA).

The recognised standard in credit management

www.cicm.com April 2016

11


OPINION

TIME TO VOTE

Philip King urges members to vote for the new CICM Advisory

Council as nominations close.

AS we go to press, there are only a

few days remaining for nominations

for election to the Chartered

Institute of Credit Management’s

Advisory Council – the first elections

since we gained Chartered status. At the

time of the last elections in 2014 we were

hopeful that we would be granted our Royal

Charter; now more than 12 months later, we

have achieved something truly deserving of

our profession and the people in it.

Stuart Rock, editor-in-chief of the

Business is GREAT campaign recently

wrote that the standards and values of

Chartered Bodies are recognised and

respected by policy-makers, regulators and

businesses around the world. He’s right,

and there couldn’t be a better time to get

involved and have your voice heard. And

that’s why we need your votes.

Over many years, I have belonged to a

number of organisations. For some it has

been an arms-length relationship in which

I’ve occasionally used a service or obtained

advice; for others it’s been a passion and

I’ve become fully immersed. I first served

on what was then the Council of the

Institute of Credit Management in 1997

having already become a member of the

Institute’s Education Committee and been

involved in teaching, examining and much

more, related to the education scheme.

Like many of us at the time no doubt,

and perhaps some of you today, credit

management was a career I had found, and

loved, and it has subsequently become a

passion. My engagement with the Institute

developed over the years in several ways

and the rest, as they say, is history.

My passion for everything ‘credit’, I am

pleased to say, has never diminished. If

anything, it has increased and the future

By voting, you will have

an opportunity to influence

the strategy, policy and future

direction of the Institute through

those you elect.

and success of the Institute depends

on others with a similar passion getting

involved. Good governance requires all

stakeholders to be represented and heard.

SO WHY ARE YOUR VOTES

IMPORTANT?

Our Advisory Council is comprised of

members who are themselves elected by

members and who represent your views

at the table. By voting, you will have an

opportunity to influence the strategy,

policy and future direction of the Institute

through those you elect. There are 23

Advisory Council positions representing

our 11 regions and the Trade, Consumer,

International and Credit Services sectors.

Voting starts on Monday 25 April and,

under the terms of our Charter, is restricted

to full Members and Fellows.

One of the first roles for our new council

members will be to consider our major

research programme that recently closed,

and from which we will be determining

much of our future strategy and direction.

It is an important piece of work, and I will

tell you more about it in due course. But

for now, for those who have stood for

election I thank you, and for those who

also want to see that their voices are

heard, make sure you put your cross in

the box.

12 April 2016 www.cicm.com

The recognised standard in credit management


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www.cicm.com April 2016 13


VIEW FROM THE SEAFRONT

LAST ORDERS AT

THE BAR PLEASE

The death of the long lunch…according to David Andrews.

MINUTES LATER, I WAS AWARE OF A

LARGE, THICKSET MAN IN HIS LATE 30S,

HOVERING BEHIND MY CHAIR, BREATHING

VERY HEAVILY. AND REEKING OF ALCOHOL.

AH, FRIDAY AFTERNOON. LATE. PROBABLY

JUST BACK FROM THE PUB.

14 April 2016 www.cicm.com

The recognised standard in credit management


FEATURE

SPECIAL

I

am detained momentarily by Waterstones’

decision to give Hemingway’s A Moveable

Feast the full ‘rediscovered classic’

marketing treatment.

The book – an autobiographical memoir

of Hemingway’s time in Paris in the years

after the end of the First World War – is a

rich evocation of a battered city getting back

on its feet in the aftermath of the carnage of

the great conflict.

As anyone familiar with Hemingway’s

work will be aware, drinking and the culture

of drinking is deeply ingrained within this

homage to a giddy, exhilarating time in the

Nobel prize-winning writer’s journey.

And, as our alcohol industry begins to

count the cost of the Government’s revised

guidelines for booze consumption and more

normalised habits are resumed following the

gimmicky ‘dry January’ pressures, I wonder

what Hemingway would have made of it all.

At least by rooting himself in various

European capital cities in the 1920s,

Hemingway escaped the worst of the

Prohibition laws that pervaded his US

homeland from 1920 to 1933.

Promoted by the ‘dry’ crusaders, a

movement led by rural Protestants and

social Progressives in the Democratic and

Republican parties, and coordinated by the

vigorously enthusiastic Anti-Saloon League,

and the Woman's Christian Temperance

Union, the banning of hooch in the States

nearly 100 years ago bears worrying

resemblances to the current witch-hunts we

are seeing perpetrated in some quarters over

here.

As someone who participated in a wholly

dry January, I can see (and feel, more to

the point), clear benefits from laying off

completely for a month. But we also need to

be aware of how well-timed government PR

can be used as a stick to beat and shame

the extremities of so called drunken Britain.

Our A&E wards continue to creak and

shudder under the weight of the weekend

binge boozers imbibing like there is no

tomorrow, and the drain on the country’s

finances is severe. So something clearly

has to be done. Around 80 percent of all

weekend admissions to A&E are alcohol

abuse related. That is not why our NHS was

set up. And it is not why we send our young

people through seven years of complex

medical training.

So I am all for radical moves to try to

head anti-social drinking off at the pass. And

I would be more than happy to see outlets

promoting ultra-strong, impossibly cheap

alcohol to be castigated for the part they

play in encouraging the appalling sights we

endure on our streets and in our hospital

wards as a direct result of exposure to dirt

cheap rocket fuel.

But as I see more and more for sale

signs outside local neighbourhood public

houses, and the culture of supermarketdriven

home drinking sales soaring at the

inevitable cost to local pub culture, I kind of

miss the way it used to be.

One of my clients recently opened a new

craft beer brewery, based in a lovely part

of Shropshire and marketing home grown

ale at reasonable prices to reflect modest

margins.

But the Government’s gloomy

announcement at the beginning of the year,

that we are all going to Hell in a hand cart

if we have more than five pints/a bottle

of wine a week, or thereabouts, coupled

with the rigours of dry January had a major

impact on business in this critical first

quarter of the business cycle.

“Not so long ago demand for craft

beer was insatiable. Now beer and wine

suppliers are really feeling the pinch. It is

literally as if the tap has been turned off.

“The timing could not have been worse

and it is particularly difficult for the small

independents,” said my client, the tone of

resignation hanging like a pall of dark cloud

over a Sheffield coal pit.

I think back to my national newspaper

reporter days, hunched over a keyboard,

invariably swathed in reams of dense

tobacco smoke while fellow reporters

twitched and paced around in anticipation

of ‘lunch’ – a euphemism for a three hour

drinking session interspersed with a pork

pie and a packet of crisps, perhaps, but

lunches on the publications where I cut my

journalist teeth were primarily liquid.

As a financial writer I was privileged

in that my invite to lunch usually came

from City-based fund management firms,

bankers and players. Fast buck merchants,

as one of my former colleagues would

have it.

I wonder what the team who came

up with the current abstemious alcohol

guidelines would have made of those

sessions in the late 80s-90s?

Those stories you have read about

drink soaked hacks, slurring and stumbling

back from epic sessions on the sauce,

sometimes ending in clumsily thrown

punches following some perceived insult

or other, are, I can report from my front line

experience, by and large true.

After months of attrition, I decided to

trade the lunches for the sobriety of the

gym. I took up marathon training. It worked,

more or less, as I managed to evade the

worst excesses that characterised that era

of heroic Fleet Street drinking.

I suspect the carnage I witnessed from

the microcosmic realms of the newsrooms

were replicated in other notoriously heavy

drinking industries, such as insurance and,

back in the day at least, private banking.

There were many stories, and I shall

not detain you here with them; although

I can share with you my encounter with

the senior news editor of a major Sunday

newspaper that occurred early on in my

career.

It was a Friday morning, and I was

assigned a ‘Royal number’ – which is

newspaper code for fact checking and

reporting on the financial comings and

goings of a prominent member of the Royal

Family.

The story – if I got it right – was destined

to be the splash (front page) for that

coming Sunday. I just had to qualify various

issues that the newspaper’s legal team was

understandably twitchy about.

Dozens of rapid fire phone calls later, I

wrote the story and filed it. I thought it was

good.

Minutes later, I was aware of a large,

thickset man in his late 30s, hovering

behind my chair, breathing very heavily. And

reeking of alcohol. Ah, Friday afternoon.

Late. Probably just back from the pub.

Correct, Andrews.

‘Did you’, he snarled, waving a wad of

closely printed A4 pages under my nose –

‘write this, this CRAP???’ Now ferocious,

his intonation rising to a bellow, the news

editor then proceeded to go berserk. I

feared he would punch me.

‘What’s the problem,’ I asked. ‘You don’t

rate it…?’

Fortunately for me, my entirely sober

desk editor intervened on my behalf,

claiming my work to be one of the better

financial stories they had encountered for

many a long month.

I was, reader, vindicated. My story led

the Sunday section, and was followed up

by the rest of Fleet Street and TV news

after publication. We were not sued,

and my reputation as a splash-breaking

journalist was beginning. I became pretty

good mates with the legal team on the

newspaper after that initial incident, and,

as I rose through the reporting ranks, the

trickier, hard to break major financial stories

were invariably assigned to me. And while

nothing was perhaps quite as hard as

reporting on the state-of-the world stock

markets, in the immediate hours following

the September 2001 plane strikes on the

World Trade Centre, toughing it out with a

drink-hammered national newspaper editor

will always stay with me.

I wonder how Hemingway would have

dealt with it? I think I can guess…

The recognised standard in credit management

www.cicm.com April 2016 15


CICMQ NEWS

RE-AFFIRMED STATUS FOR FIRST NHS ORGANISATION

NHS Blood & Transport (NHSBT), the first

NHS organisation to achieve CICMQ status

in December 2013, can now boast reaccreditation

after its second application was

approved at the end of 2015.

Its five-strong credit team manages

a sales ledger of £36 million per month

on average, and since 98 percent of its

customers are NHS Trusts, which oversee

the individual hospitals, and are all part of

the Department of Health it is unable to

use the usual credit control tools, such as

withholding its service or halting the supply

of blood.

Therefore its close and well-built

relationships with the various trusts ensure

payments are consistently made to terms,

which, as Maxine Spivey, NHSBT’s Financial

Services Manager, explains is becoming

increasingly difficult:

“With the increasing demands,

particularly financial, made on the NHS today

and with cashflow becoming ever-tighter, it

is therefore even more important to cement

and maintain strong relationships with the

different NHS organisations.

“Which is why it’s a great confidence

boost for the team and I to be reaccredited,

particularly since CICMQ is an

excellent guideline for best practice credit

management.”

Maxine continues by saying in order to

succeed at credit management, the basics

have to be done to a consistently high level:

“Before entering the process, make sure

you are confident in your team’s ability and

that you can thoroughly demonstrate your

processes.

“Don’t try to wing it or be complacent in

the re-accreditation process, after all, once

you have CICMQ status, you don’t want to

lose it,” she concludes.

AMEY ACHIEVES FIRST-TIME CICMQ ACCREDITATION

MANAGING the credit function of one of the

UK’s most diverse companies, which has

over 21,000 employees throughout 200 UK

and 10 international offices, and a turnover

of £2.3 billion, requires quality collections

methods.

And Amey’s 21-strong credit team has

just achieved first-time CICMQ accreditation

– helping to facilitate seven percent growth

year-on-year throughout its public and

regulated services offering in sectors

that include utilities, highways, waste

management, rail, justice solutions, social

housing and facilities management and more.

Operating a wide-ranging but interlinked

series of services does present its

challenges, says Matthew Mitchell, Amey’s

former Head of Credit: “Now we have

achieved the accreditation we are aiming to

work even more closely with every part of the

organisation.

“We have proven best-practice

collections methods, demonstrating

our commitment to credit management

excellence and continual improvement,”

he continues, “and it enhances relationship

managements with our clientele.”

Taking the CICMQ workshop approach,

Amey set out a high-level plan with all

the necessary actions required to reach

accreditation, starting the process in

November 2014 and passing its formal

assessment in December 2015.

Matthew is also a proponent of raising

the profile of credit management, within

individual firms, and on a broader scale:

“More CEOs and CFOs should be aware

of CICMQ and the benefits it provides for

organisations, and this goes hand in hand

with senior executives increased knowledge

and understanding of the credit management

function.”

MORE CREDIT SUCCESS FOR INTERCITY TECHNOLOGY

KEEPING and applying high standards

and policies is often a byline for success

within a credit management and collections

department. And it is these key factors

for which Intercity Technology has been

awarded re-accreditation.

Providing specialist communications

equipment to improve productivity, costsavings

and deliver a better security

provision, Intercity Technology’s Credit

Manager, Carron Beech, initially found

out about CICMQ by reading Credit

Management.

“Achieving the accreditation is very

rewarding,” she explains, “with assessors

there to help and advise you on your

processes and how, as a company, we can

achieve better outcomes through good credit

management policies.”

The credit team at Intercity Technology

has been recently streamlined, with two

credit controllers working alongside Carron:

“Our collections figures have always

remained at our expected high-levels,” she

continues, “which is a testament to the hard

work and quality that we offer.”

Evaluation from a third party is becoming

increasingly sought after: “External

recognition looks good for both current

and prospective customers, business

partners, and senior management,” she

continues. “It shows we are good at what

we do, and that we maintain good standards

and a high level of integrity within our

business.

“The opportunity to re-evaluate our

processes every two years ensures we

are consistently at the top of our game,

using the latest processes to give a clearer

understanding of just how much value we

can add to the business as a whole,” Carron

concludes.

16 April 2016 www.cicm.com

The recognised standard in credit management


BREXIT

SHAKEIT

ALLABOUT

IN OR OUT? WE ASKED MEMBERS OF THE CICM THINK TANK

AND GUEST COLUMNISTS TO GIVE US THEIR PERSONAL OPINIONS

AS TO WHETHER WE REMAIN OR LEAVE THE EUROPEAN UNION.

AND THE JURY IS STILL OUT.

HAVING wavered once or twice over the last

couple of weeks, I am reasonably confident that

I am a ‘yes’ for staying in a reformed European

Union, now that re-negotiations for a commitment

to reduce the burden of regulation and deepen

the single market have been agreed. It is my

personal view that the UK does not have a large

enough economy or a robust enough defence

structure to stand on our own, so I worry about

us otherwise becoming more reliant on the

US. I believe that there are huge advantages to

being part of a wider European community and

I think that unrestricted freedom of movement is

important to allow multi-national businesses to

operate efficiently and continue to grow.

Debbie Nolan FCICM – Think Tank member

I’M in. Do we really want to sit on the sidelines

and watch while other European leaders make

decisions that affect us? Sacrifice our place in

the single market, walk away and expect the

rest of Europe to allow us to pick and choose

what suits? Despite the bureaucracy that comes

with a lot of European policy (EU data reform,

anyone?) we are still better with a seat at the

table. Much of the media discussion is about

migration – generally confused and entangled

with the issue of refugees fleeing conflict. I hope

the current crisis doesn’t have a disproportionate

impact on a decision that is far bigger than that

one issue. The Centre for Economic Performance

at the London School of Economics recently

described Brexit as ‘a risky gamble’. Its optimistic

prediction was 1.1 percent GDP loss (£18 billion),

pessimistic 3.1 percent GDP (£50 billion).

Military chiefs and business leaders have drawn

attention to the benefits of membership. We are

entwined with Europe on so many levels. I think

dismantling those would be a mistake that would

reduce our influence on the world stage.

Heather Greig Smith –

Credit Management columnist

I fear that the ease of collection, negotiation and

compromise will be harmed by exiting the EU

and its single market perceptions and legalities.

Many firms dealing in Europe, whether UK based

or elsewhere, consider themselves within a

single market. Notwithstanding the difficulties

encountered by a fluctuating Euro or Pound many

fight their corner from a pricing and quality

point of view as if in one country and therefore

one market place. When contractual, quality,

delivery or pricing disputes occur it has become

a little easier over time to bring both parties to a

compromise situation quickly. Even when faced

with the legal challenges, with the development

of EU law allowing for simplified cross border

actions, enforcement orders and, in the case

of individuals, assets being at risk so long as

domiciled in another EU country, such action or

even the professional threat of same counts for a

much speedier conclusion to any dispute. EU/UK

Late Payment legislation has also done much to

speed payments and/or compensate creditors.

Steve Lewis FCICM -

Credit Management columnist

The recognised standard in credit management

www.cicm.com April 2016 17


COVER

FEATURE

WHETHER we choose to stay in or vote to leave

the union, one of the big issues that has not

been properly addressed centres around EU

workers. Many of our industries and businesses

across engineering, agriculture, tourism, care,

construction and the hospitality sectors are

dependent on ‘foreign’ workers, and even now

there is a shortage. If we assume that such

workers would be obliged to return home if we

vote to leave, then who will fill their roles? Given

that our own unemployment rate currently sits at

around 1.5 million, the maths simply does not add

up. There is a very real risk that such firms would

be seriously compromised, and may even fail,

and the concern is that customers who rely on EU

exports may be similarly exposed and at risk if

we leave without a quick trade deal being put in

place. As ever it will be down to credit managers

to be on the top of their game, since many firms

that are currently off the radar could very rapidly

be put at risk.

Larry Coltman FCICM

- Credit Management columnist

IN my view the UK is in a stronger position being

inside the EU as a member rather than on the

outside craning its neck to peer in. Aside from

a feeling I have that Britain has caught a nasty

dose of xenophobia, removal means we will

lose influence and yet still need to harmonise

with Europe – an even tougher job than we have

today. In fact I can’t think of a single good reason

to exit – none of the so-called improvements

stack up. We won’t be any safer, have any more

freedom, nor will we have any improved control

over our borders than we do today. Whilst there

is undoubtedly a good measure of incompetence

in the EU and regulation that oft defies belief, we

are still better off being inside trying to improve

things rather than raging from afar. I actually

think the referendum is a really bad idea because

the majority of voters are simply not well enough

informed. Their cross in the box will be based

on emotion fuelled by the likes of Boris Johnson

going off on one of his rants; images of migrants

overrunning blighty; or the EU telling us that we

can’t use the word ‘sausage’ any more.

Mark Preston MCICM – Think Tank member.

IN the debate about the forthcoming BREXIT

referendum I have not read much about

philosophy behind the ideas of both sides. I

referred to one aspect of this in my book ‘Taking

Your Business into Europe’ published as long

ago as 1991. That aspect concerned the Single

European Act, and I commented (p 151) that

there was also ‘a political dimension’. I quoted

from ‘Zakamarki Historii’ (Crannies of History)

by Aleksander Bregman (1968 Polish Cultural

Association - Polska Fundacja Kulturalna) at p

15. He was writing about what he considered to

be progress in the sphere of Western European

unity, and I translated his words, ’Even if

there have been setbacks in recent years, the

accomplishment has been a fundamental element

of change for the better. There have truly been

many setbacks and frustrations, but there has

been progress, and I conclude that the UK should

remain in the EU.

Peter Walker – Credit Management columnist

I probably lean towards Brexit but do fear a

period of instability while the economy is

fragile (it is likely to last a few years after the first

rush of euphoria following the result; either way).

The rationale is as follows: the EU is

overly bureaucratic and corrupt; the size

of membership with different agendas and

problems (e.g. contrast Greek / German

economies and impact on Euro & Euro Zone

members) mean it is difficult to make substantial

changes - and definitely not quickly. It also

leads to the ‘one size fits all policy’; and it

encourages inefficiency, e.g. common agricultural

policy, at a time when the world is changing

rapidly and countries/businesses need to react/

adapt quickly. Freedom of movement would be

a good thing apart from impact of foreign policy

and disparity between northern and southern

economies - too much economic migration can

be damaging both socially and economically.

Having said that - a little Britain mentally will be

harmful. I just think we'd get a better balance

out of Europe. Not sure about security issues

but think the status quo remains either way as it

transcends boundaries and we’d still be closely

aligned through NATO. Trouble is there are so

many imponderables. So in summary - here be

dragons!

Richard Houlbrook FCICM – Think Tank member

MY personal view on the EU Referendum is that

I am currently in the ‘no let’s pull out’ camp. I like

to think I understand the arguments being put

forward and it seems to me that the ‘NO’ camp are

making more sense in spite of the ‘Boris’ factor.

Clearly the more ‘mature’ voter like myself is

swayed to the ‘NO’ side from what I have heard.

The whole problem currently is that many people

do not fully understand the issues at hand and

this could make them ‘dangerous floating’ voters

when 23 June comes along!

Tony Whitman FCICM – Think Tank member

18 April 2016 www.cicm.com

The recognised standard in credit management


‘‘Aside from a feeling I have that Britain has caught a nasty

dose of xenophobia, removal means we will lose influence

and yet still need to harmonise with Europe – an even

tougher job than we have today’’.

The recognised standard in credit management

www.cicm.com April 2016 19


BREXIT

I am a firm NO, unless anyone can convince

me of a good reason to vote YES, I have not

been convinced to date. To be clear on this I

actually do love ‘Europe’, I just hate the EU. I

am not advocating that Britain leaves ‘Europe.’

The issue that I have is that the EU consists of

28 member counties that are making the rules

and as a member of the EU, we must obey these

rules and regulations which are often made by

people and institutions in Brussels that we, the

voters, cannot hold to account. This is not fair, and

it’s not democratic. In the credit world, I have

experienced several creditor companies trying to

work as one voice during insolvency proceedings

and it just never works, one voice wants one thing

and someone else wants another, it just takes too

long to get a consensus.

I understand that UK vote in the EU parliament

makes up just over nine percent. This means we

are constantly outvoted on issues that matter

to Britain. If we pull out of the EU it will allow

British politicians to create our own laws rather

than being dictated to. The other major issue

is the European Market and Britain does not

need to be a member of the EU to access this

potential customer base. Many nations around

the world have deals with the EU. We were a

highly successful trading nation before joining

the EEC. We were led to believe that by joining

the EU it would be easier to expand our trading

within the member states. This has not been the

case. Instead, the EU has discouraged trade with

red tape and excessive legislation. By Leaving

we could not only trade with the EU on our own

terms, but also with those outside it like China,

the US, India, Australia and Canada.

Nigel Fields MCICM – Think Tank member

I will be voting to leave the EU. In common I

suspect with many entrepreneurs and business

people from all walks of life, I am going to jump at

the chance to finally escape the clutches of

this archaic, money grabbing and invariably

ineffectual ‘union’. Unless you happen to be

a French farmer – living high on the hog of

generous hand-outs of our hard earned for

umpteen years, merci beaucoup – then this

red-tape obsessed, self interested organisation

will I am sure be able to struggle along without

our billions of pounds of Sterling, year in, year

out. It is a nonsense that our trade relations will

be severely affected. If anything, we will be

better off free of these shackles which have been

unquestionably holding us back for lost decades.

The world has moved on and we are in grave

danger of being left behind.

David Andrews – Credit Management columnist

FIRSTLY I must stress that the views expressed

here are entirely personal, and not those of the

IPA nor representative of Insolvency Practitioners

generally. That said, how might IPs view this

debate? IPs might be tempted to wonder whether

the predicted gloom following a Brexit could

trigger a recession, a role for IPs in clearing

out of some of those zombie companies, and a

healthier basis for moving the economy forward

as a consequence. Firms with cross-border

work, particularly where that involves EU states,

might be dismayed at the prospect of exiting

this market and the knock-on effects that could

have. We don't currently have harmonisation

of insolvency law across the EU, but we do

have mutual recognition of qualifications and

procedures. Would an exit put those in jeopardy,

to the detriment of efficiency in realising assets

for creditors?

David Kerr MCICM –

Credit Management columnist

UNDECIDED

TO this day I am still none the wiser and feel

like The Clash’s famous single ‘Should I stay or

should I go? – How can the general public decide

when our current government cabinet members

and other political parties are split down the

middle whether to exit or stay! I don’t feel there

is enough basic information to the general public

on subjects such as, economic consequences and

trading outside the EU? Regulations and law? EU

budget? I think Mr Cameron has been a bit vague

on recent negotiations and agreements he has

made with other EU leaders and it is evident that

other EU leaders definitely need the UK to remain

in the EU since we joined in 1973 but is it better

the devil you know and not spoil 40 years of hard

work? Or is the grass really greener on the other

side? I am still unsure!

Jason Braidwood FCICM(Grad)

– Think Tank member

I am currently undecided. The heart says stay

in as we are better united than alone, however, I

need pure facts – not emotion and at the moment

there is little clarity on either side. All I have

been able to glean is trade stats from the ONS

and I want to know financially what could work

best. I am employed by a French company, so

that is another motivator to vote stay.

Andrew Share MCICM – Think Tank member

20 April 2016 www.cicm.com

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www.cicm.com April 2016 21


WHAT’S IN A NAME –

THE

AUSTRALIAN

VIEW

Our original article sparked interest, literally, on the other side of

the world. Here, Alan Harries of the Institute of Mercantile Agents

reviews changes in the language and tone of dealings between

collections agencies and individuals in debt in Australia.

22 April 2016 www.cicm.com

The recognised standard in credit management


OPINION

THE CEO of the Australian Institute of

Credit Management, Nick Pilavidis,

recently asked me to comment on the

emerging trend in the UK away from

the use of the term ‘debtor’ to ‘customer’

and whether there was any similar change

underway in Australia.

Responding to this request caused

me to reflect that many in the Australian

collections industry over recent years

have been confused as to what is the

appropriate contemporary term to use

when referring to the party being followed

up for payment of an outstanding account.

Terms like ‘debtor’ and ‘creditor’ seem

outdated now despite valid origins relating

to how transactions have been

described within accounting conventions.

Accountants still use those terms

but the wide adoption of business

software applications such as MYOB and

Xero has changed how others describe

those transactions. Software developers

keen to simplify terminologies for

persons not trained as bookkeepers to

understand transactions being recorded

made some changes such that we have

seen ‘debtor’ replaced by ‘customer’ and

‘creditor’ replaced by ‘supplier’. Similarly

‘accounts payable’ became ‘pay bills’ whilst

‘receive payments’ replaced ‘accounts

receivable’.

REGULATORY LANGUAGE

A review of current regulations fails to reveal

any change to descriptors being adopted by

industry regulators.

Interestingly, the ACCC/ASIC Debt

Collection Guideline (ASIC Regulatory Guide

96: Debt collection guideline for collectors

& creditors published 10 July 2015) which is

the most important compliance document

for collectors and creditors alike, in its

Glossary of Terms defines ‘debtor’ as

‘a natural person obligated or allegedly

obligated to pay

a debt…’ but does not include any definition

for either ‘customer’ or ‘consumer’.

Potentially, the introduction of the

Australian Consumer Law in 2010 (the ACL)

presented an opportunity to introduce a

redirection for consistent descriptors to

be used but I discovered its definition of

‘consumer’ within this legislative regime was

not all embracing.

The National Consumer Credit

Protection Act 2009 includes a definition

for ‘consumer’ as a ‘natural person or a

strata corporation’ but has no definition for

‘customer’. The National Credit Code

which is Schedule 1 of that Act defines

‘debtor’ as ‘a person (other than a

guarantor) who is liable to pay for (or to

repay) credit, and includes a prospective

debtor’.

MOVING TRENDS

Despite the lack of change within legislation

and regulations impacting on debt

collections, there is nevertheless a trend in

Australia away from using the term ‘debtor’.

Such a trend however is not without

some issue for those in the collections

industry. For example, in moving away from

using the descriptor ‘debtor’ a problem

for contingent collectors acting as an

agent for principal creditors is that the

term ‘customer’ from the collector’s own

perspective refers to the party it is acting

for.

The adoption of the term ‘customer’

within the collector’s operations and records

when dealing with and referring to an

individual or business debtor owing monies

to its principal seems wrong and potentially

creates confusion as to which party is being

referred to.

In a recent UK article (by Sean Feast,

Managing Editor of Credit Management)

about the trend away from ‘debtor’, an

observation was made that ‘a company

being labelled as a debtor appears to be

viewed as less confrontational than an

individual being identified in the same way’.

This has similar resonance in Australia.

The trend in Australia over recent

years has been away from using ‘debtor’

and instead the term ‘consumer’ rather

than ‘customer’ has increasingly been

adopted whenever collectors and agents

refer to individuals and businesses more

traditionally known to them as debtors.

This trend appears to be driven more by a

change of attitude and expectations rather

than just being a case of semantics.

Some reasons for this change include:

• Banks and other financiers directing the

use of the descriptor for their customers

• The introduction of the National Consumer

Credit Protection Act 2009

A similar change has occurred in the US

where collectors now talk about ‘connecting

with consumers to resolve accounts’ rather

than ‘chasing debtors to pay bills’.

SETTING THE TONE

Collectors understand their role today is all

about communicating with consumers – this

involves engaging effectively to understand

what they want and need in order to resolve

the specific outstanding debt.

By itself changing the name or

descriptor adopted when referring to

the individual owing the account away

from the traditional ‘debtor’ will count

for little unless the collector’s approach

allows the individual to feel respected and

to maintain dignity in discussions. An

effective approach includes the collector

being aware of the individual’s situation

and offering where appropriate assistance

and genuinely seeking an achievable and

affordable solution for the individual

The continuing challenge for collectors

is how to best engage effectively whilst

meeting the regulatory requirements of

what to say and when to say it and

at the same time avoiding the risk of

misunderstandings which can arise when

the parties to the conversation can’t

see the other’s body language. Another

impediment to establishing effective

engagement is often the strong negative

views some in the community hold about

the collections industry and processes.

More than ever there is a need for

collectors and agents to ensure the right

tone is achieved for conversations so as

to deliver effective outcomes – a change

in the name or descriptor for the party

being contacted to pay a debt or account

to something which the individual sees as

positive and respectful is a good and subtle

step towards developing and maintaining

respectful conversations.

Compliance obligations and

expectations of collectors mean it

is not sufficient to communicate so

as to be understand but increasingly

to communicate in a manner so it is

impossible to be misunderstood! Setting

the right tone in conversations between

collectors and consumers will assist to

avoid unhelpful misunderstandings.

A change in the name or descriptor for

the party being contacted to pay a debt or

account to something which the individual

sees as positive and respectful is a good

and subtle step towards developing and

maintaining respectful conversations.

The recognised standard in credit management

www.cicm.com April 2016 23


BENCH PRESS

DEFENDING

THE UNDEFENDED

Amir Ali argues that the needs of the undefended claims must not

be overlooked in the ongoing structure review.

THE Civil Court Users Association is

pleased by the level of engagement

currently being undertaken by Lord

Justice Briggs as part of his Civil

Courts Structure Review. These changes

will bring significant opportunity and

the CCUA is delighted to be involved.

The Association is committed to doing

everything possible to assist in ensuring

that the best outcome is achieved for all

court users.

A key priority is to ensure that the

needs of undefended claims are not

overlooked. These represent around 95

percent of all money claims. Despite this

high proportion, they are often ignored by

decision makers in preference to the high

profile, high value, time-consuming and

problematic cases that tend to dominate

thinking. However, during the Association’s

recent meeting with Lord Justice Briggs,

it was immediately apparent that he had

full understanding and knowledge of all

aspects, including the less high profile or

glamorous work within the courts.

Central to the CCUA’s concerns is

ensuring that the excellent processes that

already exist for undefended claims, such

as the County Court Bulk Centre (CCBC),

are not removed in preference to a less

successful alternative.

Beyond that, the CCUA has no real

concerns regarding the proposals for an

online court at this stage. Any devil will

be in the detail, of course, and we will no

doubt continue to monitor the situation

as the ideas develop. The idea of a

triage system, with claims assessed and

allocated to a process depending on their

needs, should work successfully if properly

resourced and implemented. Indeed,

this could even be extended further than

is currently being proposed. The value

of a claim has long been considered

a dominant factor in determining its

complexity, but it is not always the most

relevant.

The use of case officers to progress

cases by making non-judicial decisions

also seems a very worthy one which may

well improve the service provided by the

Courts, again providing they are properly

There should be clear and transparent

situations where fixed costs will be applied

where the CPR is not adhered too. This would

further encourage adherence to the spirit of

the rules and allow cases to proceed in a swift

and efficient manner.

trained and resourced.

Whilst the CCUA agrees that

substantial improvements can and

should be made to the Civil Procedure

Rules (and documentation generally) to

assist litigants in person, we remain to

be convinced that removing lawyers from

cases would always be beneficial. Many

parties to litigation will continue to prefer

to be professionally represented for many

different reasons, as is their right. Also, it is

doubtful that every litigant in person will be

able to present a clear and concise case,

however easier the rules and procedures

might become.

There is a thrust in Lord Justice Briggs’

interim report for the further removal of

costs. In the Association’s view, the lack

of any sanctions for non-cooperation of a

party under the CPR remains a very large

problem, both for the opposing party and

the court. This is particularly so in the

small claims track, where a party can fail

to cooperate with the rules in anything

but the most outrageous way, without any

fear of sanction whatsoever. Rather than

expanding this problem, the CCUA instead

calls for a fundamental re-think of the role

of costs in these situations. There should

be clear and transparent situations where

fixed costs will be applied when the CPR

is not adhered too. This would further

encourage adherence to the spirit of the

rules and allow cases to proceed in a swift

and efficient manner.

By far the most exciting area for the

Association is the reform of enforcement,

which is long overdue. The interim report

clearly recognises the need. The CCUA

has already communicated a number of

ideas and has also offered to work with

others to establish a comprehensive

package of suggested reforms.

Interesting times are ahead!

Amir Ali is Chair of The Civil Court Users

Association (CCUA).

24 April 2016 www.cicm.com

The recognised standard in credit management


P36460.002_Hoist_CM_Mar16_297x210_v1.indd 1 17/03/2016 10:18


LEGAL MATTERS

REFUSING TO MEDIATE

EMMA EMERY IS A PARTNER AT FREETHS : emma.emery@freeths.co.uk

The use of mediation to solve commercial disputes is becoming increasingly popular as the

Courts put pressure on parties to avoid litigation. But can parties refuse to negotiate through

mediation? In this month’s legal matters we look at recent Court decisions on the subject and

discuss the issues you need to consider when deciding whether to partake in mediation.

A

recent decision by the Royal

Courts of Justice Senior Courts

Costs Office has demonstrated the

readiness of the Court to impose

costs sanctions when a party to litigation

unreasonably refuses to participate in

mediation.

In Bristow v Princess Alexandra

Hospital NHS trust [2015], the Judge

awarded the costs of detailed assessment

to the Claimant on an indemnity basis

because it was felt that the defendant could

demonstrate no good reason for refusing to

mediate. The Judge had reduced the

costs awarded to the Claimant to 80

percent because of other inconsistencies

within its costs budget. However, the

Judge ordered that this 80 percent should

be recovered from the Defendant on an

indemnity basis, thus with no requirement

NEGATIVE cost implications can be imposed

by the Court regardless of whether it is the

winning or losing party which has refused

to mediate without good reason. The

circumstances in Reid v Buckinghamshire

Healthcare NHS trust [2015] were similar to

Bristow v Princess Alexandra Hospital NHS

for proportionality to the amount originally

at stake.

This decision follows a long running

trend of the Court to penalise parties

which refuse to attempt settlement through

Alternative Dispute Resolution (ADR).

Mediation has become an attractive method

to get the parties together around a table

and achieve a commercially sensible

settlement which suits all involved, thus

avoiding the ever increasing costs of civil

litigation.

WHEN IS IT UNREASONABLE TO REFUSE TO

MEDIATE?

In Halsey v Milton Keynes General NHS

Trust (2004), the Court identified a list of

principals used to determine whether a

party has been unreasonable in refusing to

mediate.

CASE STUDY

Trust [2015], the Judge awarding the winning

party its costs on an indemnity basis from the

point at which they unreasonably refused to

mediate.

In Yorkshire Bank Plc and Clydesdale

Bank Asset Finance Ltd v RDM Asset Finance

and J B Coach Sales [2004], the Judge

THE HALSEY PRINCIPLES INCLUDE:

• The nature of the dispute – is ADR

appropriate in the case at all?

• The merits of the case – does the refusing

party have a much stronger case?

• Other settlement options – have there

been other offers or negotiation around

settlement?

• Costs of mediation – will the expense

of mediation be disproportionate to the

claim?

• Delay – is mediation likely to cause delay?

• Prospects of success – is mediation likely

to be successful?

The Court made it clear that this was not

to be considered as an exhaustive list. It is

however, a guide to the factors which should

be considered when assessing whether to

propose or agree to mediation.

identified the Claimants as the winning

parties but reduced the percentage of costs

recoverable to 50 percent as a result of being

unsuccessful on a number of issues in the

case. However, the Claimant was awarded 15

percent more of their costs as a result of the

Defendants rejection of an offer to mediate.

• An offer by the opposing party to

mediate must be considered extensively.

• It is likely that the Court will order

negative cost implications if a party is

deemed to have refused to mediate

unreasonably.

• It is important to consider suggesting or

agreeing to mediation at an early stage

KEY POINTS:

of a dispute. In Egan v Motor Services

[2007], the Judge emphasised that

mediation should take place before any

litigation is initiated.

• At the conclusion of proceedings,

the onus is on the unsuccessful party

to prove that mediation would have

succeeded.

• The Court cannot force a party to

mediate but may order a stay of

proceedings in order for it to take place.

• Refusing to mediate is a very high risk

option which can have very serious cost

implications when being considered by a

Judge, regardless of whether the party is

successful at trial or not.

AS A CICM MEMBER YOU CAN RECEIVE FREE LEGAL ADVICE

FROM FREETHS CALL THE CICM LEGAL HELPLINE 0845 0779698

26 April 2016 www.cicm.com

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The recognised standard in credit management

www.cicm.com April 2016 27


ASK THE EXPERTS

A COLLECTION

OF MINDS

Our expert this month is Stephen Lewis FCICM.

QUESTION: HOW DO I CHOOSE A COMMERCIAL DEBT COLLECTOR?

WHEN our illustrious editor asked

me to write an article on ‘What

to look for when choosing a

commercial debt collection

agency (DCA)’, I did not realise then what

a difficult task it would be. After some

thought I realised that I, as a Commercial

DCA operator, had been looking at the

criteria from my point of view and had to

think hard as to what it is the client actually

wants and needs.

I started looking more closely at ours

and other Commercial DCA websites:

explanations of professionalism, success,

statistics, words of endearment from

existing users, long and detailed instruction

forms accompanied by in-depth, complex

terms and conditions, not forgetting

colourful accreditation from as many

organisations as will fit the page. And, oh

yes, the cost - although I am bound to say

that the actual cost to the client is often

the hardest fact to find, even though it is

doubtless important.

As a DCA there is a danger in becoming

complacent to the success of our collection

rates and long-term client relationships,

as well as our adherence to compliance

and our duties to statutes, CSA Code and,

in our case, becoming authorised and

regulated by FCA. All the things we see

as important are ‘almost’ irrelevant to the

client. Or they are at least a given. What

clients are actually looking for, and the

criteria you should use (and questions to

ask) in choosing a DCA, are as follows:

• Transparency

• Recommendation

• Fees, and especially:

How applied

When applied

Will fees remain as quoted as the case

progresses

• Full explanation and risk if a matter ‘goes

legal’

• Will we get any fees back from the

debtor?

• Do they offer other services (legal, tracing,

training etc).

What is also important is the relationship

between the actual operative dealing

with the collection and the interaction

with the client, be it the receptionist, the

credit controller or the financial managers/

directors. And whilst it is a priority to us

that monies collected are placed in a client

account and that financial probity is a

must, it is often not the highest question

on the list with potential clients. That is

because the client wants an overall feeling

of trust between themselves and the DCA,

established through the personal contact.

This may appear to be an overly

simplistic view of what is required, but

we must appreciate that in our industry

sector up to 70 percent of our client base

(and potential client base) are SMEs. Of

course it would be naive to think that they

or larger and multi-national companies do

not look at all the financial implications of

outsourcing some debt collection, as well

as having regard for accreditations, but

more often than not it still comes down to

simple trust and that most important of

qualities, transparency in all operations. The

DCA becomes an integral part of the client’s

financial decision making.

That said, whilst we may think we are

the most important thing to our client, it is

really often a small part of their operation

generally. Clients are far more concerned

with sales, supply and other matters.

In looking for a DCA, make sure they

understand your industry. Make sure their

reporting procedures are adapted to your

needs, and information supplied when you

want it as opposed to when they want you

to have it.

We must strive to supply success,

honesty, knowledge and professionalism

that match client expectations. Clients do

not always question our compliance or

accreditation, they simply trust us to be

all those things as a given. What we must

never do is let them down.

Stephen Lewis FCICM is Managing

Director – LPL Commercial Services

MORE OFTEN THAN NOT IT STILL COMES DOWN TO

SIMPLE TRUST AND THAT MOST IMPORTANT OF QUALITIES,

TRANSPARENCY IN ALL OPERATIONS.

28 April 2016 www.cicm.com

The recognised standard in credit management


FEATURE

SPECIAL

The recognised standard in credit management

www.cicm.com April 2016 29


OPINION

AND THE WINNER IS…


In the wake of the CICM British Credit Awards, Steve Richardson recounts a long

but fruitful journey to winning ways.

WITH the awards seasons in full

swing, BAFTAs, Grammys, Brits,

Raspberries, Oscars and the

pinnacle of the awards season…

The CICM British Credit Awards. This year’s

glittering event at The Brewery, London,

featured an all-star line-up of Credit

Professionals and their hangers on (aka

Sponsors).

The journey to winning an award can be

a long one and behind the glitz and glamour

of it all, there is a lot of hard work done by a

lot of people. Our journey started six years

ago when I was asked to go and present

the wares of Rimilia and our Cash Allocation

Solution, Alloc8, to Biffa, based in High

Wycombe.

Pulling up outside its offices, I unsaddled

from the horse and unhitched the carriage

with my snake oils in, popped on the top

hat, checked the cravat, applied a top up

on the Brylcream (other hair products are

available) and checked the salesman smile

(see the child catcher in Chitty Chitty Bang

Bang for the full look).

The presentation went well, but we

didn’t get to a deal and Biffa went on to

build an internal solution.

Fast forward four and a bit years later

and we get a visit from Simon Howell,

Head of Credit at Biffa Waste Services, to

discuss his ambitious plans and explain

that cash allocation automation was back

on the radar and could I go and present

again to Ruth and Emily at High Wycombe.

Dusting down the suit and replacing

the Brylcream with Brasso (other bald

head rubs are available) I set off for High

Wycombe.

When I met the team, it was great to see

they were already achieving a high level

of efficiency around their cash allocation

process and had made great strides.

However trying to improve functionality

and update its current solution was

proving difficult, as it wanted to move to a

more flexible platform and gain additional

efficiencies and control.

So 18 months ago we started our

implementation of Alloc8 and with a great

partnership, have delivered fantastic results

with a great client. Lynne Mills came on

board in July 2015 as Interim Transaction

Processing Manager and continued to

drive the implementation to deliver a

fantastic set of results, the headline being

an automated match or suggested match

of over 90 percent, that’s 90 percent of

incoming receipts matched to one or many

invoices with no intervention or a one click

match! Unallocated cash has been reduced

significantly, a faster month-end close and

greater visibility of all receipts by the Credit

Controllers who can see all the payments

via their access viewing rights to Alloc8.

The next thing we know is, Biffa has

been shortlisted as a finalist for the ‘Best

Use of Credit Technology’ 2016. Being a

finalist is great and the category is a tough

one with seven shortlisted companies so

although hopeful, realistically it was going

to be tricky to win. And the winner was

Biffa!

Yes the roof came off as Nick Hewer

announced the winner.

As always the awards highlight the

diversity and professionalism of the Credit

Community in The UK and is by far and

away one of the most respected and best

organised events.

Here’s to 2017.

Photo Credit: Robson Kay

30 April 2016 www.cicm.com

The recognised standard in credit management


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The recognised standard in credit management

www.cicm.com April 2016 31


LEGAL MATTERS

PROPORTIONATE

PARKING PENALTIES


Have you been infuriated by a parking penalty notice placed on the windscreen

of your car? A Supreme Court judgment in a recent case affecting motorists and credit

managers has wider implications for contract law. Peter Walker explains.

MANY of us have found parking

tickets on our car windscreens,

and some of these are issued by

private enforcement companies,

where a credit manager has the job of

collecting the money. The judges of the

Supreme Court recently had to rule on the

consequences of the issue of such tickets

as well as related topics. Sometimes such

charges or fines are unjustified.

As an example, I had to deal with

complaints by some church car park

users, who had found parking notices on

their windscreens. I investigated, only to

discover that the occupiers of a building

adjacent to the car park had appointed a

company to patrol it. Any cars supposedly

parked without authority received notices

informing that a charge was payable. The

credit manager of the parking enforcement

company could not enforce those charges.

The occupiers of that neighbouring building

had no authority to appoint anyone to

patrol the car park and to issue those

notices. There was furthermore no notice,

prominently displayed or otherwise, to

inform users of the car park what was

happening.

A notice would be part of another

situation, where a friend reported to me that

a company patrolling the private car park of

a supermarket had issued him with a charge

notice. The supermarket wanted to restrict

parking to its customers, so that its spaces

would not be used for several hours by

passengers travelling from the neighbouring

railway station. Around the car park there

were plenty of notices about this sensible

policy. The effect of those notices was

that those using the car park entered into

a contact with the car park management

company appointed by the supermarket,

not with the supermarket itself. My friend

had spent a long time at the store, and he

overstayed the allotted time. The car park

management company sent him notice

of the charge, but he fortunately had kept

the receipt relating to his complicated

transaction at the supermarket. In light

of this evidence the credit manager of

the management company very sensibly

cancelled the charge.

Many motorists emotionally consider

that such charges are unfair, and unfairness

was part of the facts of the Supreme

Court case Cavendish Square Holding

BV v Makdessi (2015) 3 WLR 1373. The

judges were reviewing two appeals, one of

which concerned charges imposed upon

motorists who had overstayed their parking

welcome.

TWO CONTRACTS – TWO BREACHES

The claimant was trying to recover £85 from

the defendant, whose vehicle had stayed

beyond the free period of parking permitted

at a retail park. The defendant claimed that

the charge was an unenforceable penalty

rather than liquidated damages, i.e. the

loss arising from a breach of contract. The

Consumer Association intervened in the

case in the expensive Supreme Court, and

fortunately the claimant was assisted by a

lawyer working pro bono.

In another case reviewed in the same

appeal the facts and law arose from the sale

of shares to the claimant in the dispute, who

alleged that the defendant was in breach of

contract. As a result of that alleged breach

the claimant contended that the defendant

was bound to transfer the remaining shares

in the company to him. The defendant had

agreed that he would not compete for a

specified period. If he broke that promise,

he would not be entitled to the remaining

instalments for the sale of the shares, and

he would have to sell his remaining shares

to the claimant. That sale would be at a

price ignoring any goodwill. He would

therefore receive over US$44 million less for

his share in the Group.

He did not dispute that he was in breach

of the contract, but he maintained that the

contractual clauses resulting in this cost

to him were penalties and not enforceable.

This was the same argument as in the

parking case and the charge of £85.

The resolution of this dispute as to

whether a provision in these circumstances

32 April 2016 www.cicm.com

The recognised standard in credit management


THOSE FACING A PARKING PENALTY CHARGE

CLEARLY EXPLAINED IN A NOTICE WILL HAVE

TO KEEP A SENSE OF PROPORTION.

is a penalty or acceptable liquidated

damages has been a topic for judges over

many years. They have had to decide

how much they can interfere in a freely

negotiated contract.

The Law Lords considered these issues

in Dunlop Pneumatic Tyre Company v New

Garage and Motor Company Ltd (1915) AC

79. The defendant had agreed to a resale

price maintenance agreement, illegal now,

and there was a financial consequence if it

failed to comply. It would pay £5 for every

tyre, etc., sold in breach of the contract.

It further agreed that this sum was to be

liquidated damages ‘and not as a penalty.’

Lord Dunedin commented that ‘the

expression used is not conclusive,’ and

now it was for the Court to ascertain

the position. He added, ‘the essence of

liquidated damages’ is a genuine preestimate

of damage. He continued by

stipulating four tests, which in summary

are: (a) a provision is penal, if it stipulates

an amount ‘extravagant or unconscionable’

in comparison to the greatest loss that

conceivably followed from the breach

of contract; (b) if a breach involved the

non-payment of money, a penal provision

required the payment of a larger sum; (c) a

provision would be presumed to be penal

if it was payable in a number of events

of varying gravity; and (d) it would not be

penal just because it was impossible to

pre-estimate the true loss.

Lord Dunedin then turned to the facts

of the case, and pointed out that, if the

defendant had sold just one inner tube

below the agreed resale price, news about

the undercutting would circulate. It would

be impossible to estimate the damage to

the sales organisation of Dunlop, so it was

reasonable to quantify the damage to £5

for each sale in breach of the agreement.

It was a fixed albeit not an extravagant

figure in these circumstances because of

Dunlop’s wider interests.

of the law on penalties. They noted that

it was ‘an interference with freedom of

contract’.

They therefore considered abrogating

the penalty rule, but observed that it was

‘a long-standing principle of English law’,

and that it was common to most ‘major

systems of law’. As long ago as the 17th

century in Strode v Parker (1694) 2 Vern

316, for example, there were proceedings

for the foreclosure of a mortgage, where

it was held that an increase of the interest

from five to 5.5 percent following a breach

NOT SO SIMPLE

Despite the uncertainty of applying each

case to the particular circumstances,

the principle is otherwise clear. In the

Makdessi case the judges of the Supreme

Court apparently disagreed. Lords

Neuberger and Sumption thought that

the English penalty rule was ‘an ancient,

haphazardly constructed edifice which has

not weathered well’. They pointed out that

some people wanted it to be demolished.

They also considered Lord Dunedin’s

four tests in the Dunlop case as being

‘considerations which might prove helpful’.

Lords Neuberger and Sumption concluded

that the tests would be useful in simple

cases, but were not sufficient for complex

ones. They were worried about what they

described as the ‘artificial categorisation’

was penal.

The Australian courts, however, have

extended the principle. As a result of the

decision in Andrews v Australia and New

Zealand Banking Group Ltd (2012) 247

CLR 205 there is now an ‘Andrews Test’,

whereby a provision may be penal even if

it is not triggered by a breach of contract.

The Supreme Court judges in London did

not want to follow this practice.

They agreed that the law relating to

penalty clauses still ‘had a place’ Lord

Hodge concluded that ‘the correct

test’ was ‘whether the sum or remedy

stipulated as a consequence of a breach

of contract is exorbitant or unconscionable

when regard is had to the innocent

party’s interest in the performance of the

contract’. The test now seems to be ‘out

of proportion’ rather than a pre-estimate

of loss. Lord Dunedin’s definitions in the

Dunlop case are no longer as significant as

they once were.

BAD NEWS FOR PARKERS!

The result is that the clause in the case

concerning the sale of shares was not a

secondary provision. It was primary, so it

could not be treated as invalid, because

otherwise the contract would have to be

rewritten. The parties moreover had freely

negotiated the terms of the contract.

Car parkers overstaying their welcome

also had to pay up. There were plenty

of notices in the area, and they had the

benefit of free parking for two hours. The

restriction prevented the car park from

being used by commuters and long-stay

users in general. The decision is helpful

to credit managers of companies looking

after car parks, although car park users

must clearly be informed of any restrictions.

More generally, however, anyone

drafting a commercial contract does not

have to be so concerned in a secondary

clause about considering a pre-estimate

of loss in the event of a breach of the

agreement. He or she will have to ensure

that any resulting payment is not out of

proportion to the legitimate interest of

the injured party. Those facing a parking

penalty charge clearly explained in a notice

will have to keep a sense of proportion.

The recognised standard in credit management www.cicm.com April 2016

33


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34 April 2016 www.cicm.com

The recognised standard in credit management


INTERNATIONAL TRADE NEWS

OPEN ALL HOURS

The countdown has started for SMEs to submit their export plans –

and the chance to win £3,000 to put their plans into action.

OPEN to Export is a Community Interest

Company (CIC), set up by UKTI, the

FSB and the Institute of Export. It

is a fully operational digital platform

for new and inexperienced exporters, which

provides a ‘one stop shop’ that is easy to

access and is full of useful tips, help and

advice about how to start exporting.

The site is exciting and interactive, with

advice from many experts and short, pithy

articles written in layman’s language. It has

two communities: the first is one of experts

who write the articles, and provide webinars

and helpline support; the second is of users

who benefit from it and are encouraged to

engage on various levels.

One of the best parts of the website

carries an interactive Export Market Action

Plan that walks a business through all the

planning issues online. It also gives the

business ownership of the project, which is

vital to the success of any export activity. This

Action Plan can then be taken to the bank

or chosen advisers who will be able to see

at a glance exactly what the SME is trying to

achieve and how they can help.

EXPORT COMPETITION

As a founding partner of Open to Export –

which helps UK businesses prepare to sell

overseas by giving them free access to

online information, support and advice –

the IOE has played an instrumental role

in supporting its new digital Export Action

Plan.

The free of charge and interactive stepby-step

plan is the latest addition to Open to

Export’s online offering. Steering SMEs in the

right direction, it takes visitors through five

key action points before producing a report

they can take to trade advisors.

The digital competition, the first of a

quarterly series to help SMEs broaden their

international trade horizons, will be sponsored

by the International Festival for Business

2016 – a global marketplace bringing together

thousands of companies worldwide for three

weeks of events, networking and dealmaking.

A panel of experts will shortlist and

judge the Export Action Plans based on

their potential and feasibility, awarding a

cash sum of £3,000 together with additional

support from UKTI and other partners to help

the winning businesses to implement their

plans. The first competition will be held by

its sponsor, at the International Festival for

Business 2016, in Liverpool, on 30 June.

Additional support includes two free

places on an Institute of Export public training

course and advice from the UKTI. Each of

the ten shortlisted companies will also win a

year’s free small business membership with

the IOE and a year’s free membership with the

Great British Store.

With a growing number of SMEs

identifying the opportunities that trading

globally presents – but daunted by taking

what they see as a big step – we encourage

them to enter this fantastic competition.

The Export Action Plan is a great starting

point. It enables would-be exporters to focus

their goals digitally and talk with confidence

to the trade advisors and banks who can

help the venture to succeed. It is an integral

element of Open to Export’s commitment

to deliver a versatile tool to help small

businesses plan and understand how best to

prepare themselves to go international. We

hope that SMEs with exporting ambitions

take advantage of this excellent resource.

SMEs with exporting ambitions have until

Friday 27th May to enter Open to Export’s

competition by submitting their online

Export Action Plan...as the competition is

free to enter, SMEs have nothing to lose and

everything to gain.

Lesley Batchelor OBE is CEO of both the

Institute of Export and Open to Export

The recognised standard in credit management

www.cicm.com April 2016 35


MONTHLY ROUND-UP OF THE LATEST STORIES

IN GLOBAL TRADE BY ANDREA KIRKBY.

CONSTRUCTION BRIGHT SPOTS

THERE aren't many bright spots in the

construction sector. In the UK, the 2013-

14 recovery appears to have stalled, many

companies are stuck with low margin

contracts, and late payments remain an

issue. Europe's not much better; Spain,

Italy and Belgium have high risks and poor

payments experience; while profitability

in France is being squeezed; and even

Germany isn't doing all that well.

But there are a few bright spots for the

construction sector and its suppliers. India,

for instance, is now looking good. Business

reforms have helped the sector, and

public infrastructure investment is coming

through at last – though Atradius warns that

company debt is high and payment terms

could be better.

In the US, the sector still looks robust,

continuing a four-year recovery, with

relatively fast payments at just 30-60 days,

though the picture varies by state. Housing

foreclosures are down, and investment is

picking up. And in Peru, state investment is

FALL IN FTSE INDEX POINTS TO CHOPPY WATERS

IT’S a good thing stock market charts don’t

come in 3D, or we'd all be feeling seasick.

2016 has started horribly for investors,

with the FTSE 100 index falling through the

psychologically important 6,000 level, the

Japanese market falling 11 percent in a day,

and the oil price still not showing signs of

real recovery (indeed below $30 a barrel at

one point). It’s not all down – but it's a very

choppy sea, with high volatility.

According to some stock market

analysts, markets are now pricing in a 12-18

month recession. Global growth continues

to stagnate, and banks will find it more and

more difficult to stimulate the real economy

– particularly since they can’t take the

classic action of cutting rates.

That might make the stock market pretty

pushing the sector forwards.

There are certainly opportunities

around the world for building materials and

construction equipment suppliers, as well as

for services companies supplying the sector.

But you do have to look quite hard for them

at the moment – and you have to be very

careful about making sure your contract is

properly structured with clear milestones

and tight payment terms. Extending credit

too long, to the wrong customer, could really

blow your house down.

cheap right now, but it suggests growth

is going to be hard to find, and chances

are insolvencies and late payments will

increase as things get worse. Checking

export customers' credit and securing the

right finance, contract terms and insurance

is going to be crucial. If you thought life was

already tough – you’re really going to have

to earn your salary now.

ELASTICITY OF DEMAND SIMPLY WON’T STRETCH

WE’VE already seen round one of the Great

Currency War start, with governments

around the world attempting to devalue their

currencies to kick-start their export sectors.

But according to recent studies from the

IMF and OECD, it might not work. Elasticity

of demand simply isn’t what it used to be.

Partly that's because world trade has

slowed, so trying to devalue to push exports

is like trying to surf on a garden pond.

But it's also because supply chains are

increasingly global so many exporters find

increasing input costs destroy the apparent

advantage of a weaker currency.

What worries me is that if currency

devaluation doesn’t work, that's yet another

weapon central banks can’t use any more.

They can’t cut rates much, unless they

move to really penal rates of negative

interest; the money available for QE must be

running out; and now they can’t even

devalue. Poor chaps, it's like trying to fight

off a pack of lions with the help of a pointy

stick.

36 April 2016 www.cicm.com

The recognised standard in credit management


INTERNATIONAL TRADE NEWS


BREXIT NIGHTMARES

I admit it, I want the UK to stay in Europe. I

think exporters do well out of being part of

the EU and I'd like to see it stay that way.

Your views might differ. But one thing's

certain, whichever way the country votes;

the markets don't like uncertainty and

investors are voting with their feet. That's

led to a serious weakening of sterling. Not

SUGARING THE PILL

THIS year was Sidhil’s sixth Arab Health

expo, and its largest. It’s increased the size

of its stand every year, featuring its bedside

pressure monitoring facility, low beds, and

dynamic mattresses – technology that

can help look after very high-risk patients.

With 75 new leads, the show should

contribute to the company’s order book

and demonstrates how crucial it is to build

FOREIGN EXCHANGE SPECIALISTS

HIGH LOW TREND

GBP/EUR 1.2992 1.2628 Up

GBP/USD 1.4569 1.3840 Down

GBP/CHF 1.4305 1.3736 Up

GBP/AUD 2.0560 1.8893 Down

GBP/CAD 2.0283 1.8688 Down

only has the pound lost ten percent against

the euro over three months and seven

percent against the dollar, but it’s also hit a

post-2011 peak of volatility.

Whatever happens, in the run-up to the

referendum you’re going to have to keep

a close eye on your currency exposures –

wherever you export to.

ATRADIUS’ TOP PICKS

ATRADIUS has picked its top countries for

growth in 2016. If you thought emerging

markets were dead, you’re in for a surprise.

Admittedly India remains top of many

people's lists even though the other

three BRICs have fallen by the wayside.

But Atradius also picks Colombia, Peru,

Vietnam, Bangladesh and the Philippines,

Kenya, and Tanzania.

What links these countries? All of them

have a growing middle class – appealing

to consumer goods exporters and services

companies – and, at least to some

extent, stable politics. And they’re mostly

commodity importers, so they should

benefit from low oil and metals prices.

Colombia comes in with the lowest

growth rate, at 2.7 percent, and Peru at 4.9

percent – all the other countries should see

growth for 2016 above six percent.

Are all these markets on your radar?

Maybe they should be.

up your presence in a market steadily over

time.

But Arab Health is also Sidhil’s best

chance to meet its distributors in the area

and talk about emerging opportunities and

how to plan for them. Exhibitions aren’t

just about new business – they’re about

keeping the business you’ve already got

rolling along.

FOR THE LATEST

EXCHANGE RATES VISIT

CURRENCYUK.CO.UK OR

CALL 020 7738 0777

Currency UK is authorised and regulated

by the Financial Conduct Authority (FCA).

NEWS IN BRIEF

NEWS IN BRIEF

A TINY RAY OF LIGHT?

IN all the gloom, you might miss a little

positive news. It's early days yet, but the

Baltic Dry Index – a useful lead indicator

for world trade – ticked up markedly in mid

February.

True, the BDI bounced twice on the way

down since August 2015 – but I wonder

if this is a sign that the stock markets

and economic commentators are actually

getting a bit too gloomy, and world trade

is on the way back up again? I'm going to

be keeping a close eye on this indicator in

the next few months. Let's hope it goes the

right way!

MONITORING MADE EASY

MOST of us are used to having to look

up four or five different sources when

we're assessing the risk of exporting to a

particular country. But broker AU Group

has simplified the task by boiling down

information from Euler Hermes, Atradius,

Coface and Credimundi to produce what

it calls a G-Grade, together with basic

information on economic trends, each

country on a single page infographic.

You might not want to base your

entire export credit strategy on this handy

document, but it makes it far easier to

refresh your memory or perhaps browse

through potential export opportunities.

IRAN OPENS THE DOORS

Sanctions on Iran have finally been lifted,

and the doors are open to exporters. A

four percent GDP growth forecast makes

Iran look attractive, particularly since

businesses need to ship in new equipment

to update their facilities and make up for

lost time. Euler Hermes reckons the country

could import $4 billion of machinery and

equipment by the end of 2017 – a huge

opportunity for capital goods exporters.

The problem, though, is how Iran’s going

to pay for it all. The price of its major

export, oil, is close to a ten year low. And

practicalities are also an issue, since

relatively few banks are up and running on

the ground. You may need to do a bit

of extra work if your firm plans to

take advantage of this opportunity.

GBP/JPY 167.5211 154.9245 Down

The recognised standard in credit management

www.cicm.com April 2016 37


PAYMENT TRENDS

JUST A LITTLE BIT OF

LOVE FOR VALENTINES?

Jason Braidwood FCICM(Grad), Head of Credit and Collections at Creditsafe Group analyses

the latest monthly business to business payment performance statistics.

AFTER the fall the bounce-back. You

may remember that in the March

issue we saw that January had

shown a fairly hefty step backwards

in terms of average days beyond terms

after the encouragingly positive statistics

we’d seen in December. The good news

for February is that these trends have

been reversed and while we haven’t seen

a big upturn it is to be hoped that a steady

improvement will soon see us back to the

brighter picture that was developing at the

back end of 2015. Who knows we may even

get back to the better position we were in

early 2015.

However, we wouldn’t be working in

the industry we do without a healthy nose

for risk and as is often the case we need

to remain cautious when faced with what

at first looks like an improving trend. As I

seem to do nearly every month I need to

remind you all that the national average

remains stubbornly over two weeks beyond

terms and that while certain sectors and

regions may once again be flirting with

respectability you should always take the

opportunity to look deeper into the figures

that are relevant to your own region and

industry as part of your decision-making

process when setting payment terms.

INDUSTRY SECTORS

On an industry-by-industry basis it also is a

generally brighter picture with most sectors

showing improvement after a disappointing

January. The significant improvement from

the IT sector along with International Bodies

would seem to imply that their very poor

showing in January was just a blip – we can

only hope so. One of the more encouraging

trends is that many of the sectors we

featured as ‘prompter’ payers last month

have not just stayed in that top five, but

have also improved their position.

Of particular interest is the continuing

strong performance from the Business at

Home sector. Traditionally home-based

sole traders will find themselves right at

the very bottom of the payment food chain

and as a result forced to delay their own

payments. To see them staying under

ten days beyond terms for two months

running is genuinely encouraging and

either points to them getting paid well, or

The significant improvement

from the IT sector along with

International Bodies would seem

to imply that their very poor

showing in January was just a

blip – we can only hope so.

38 April 2016 www.cicm.com

The recognised standard in credit management


3 2 1 0

0 1 2 3 4 5 6 7 8

Getting Better

7 6 Region

5 4 3 2 1 0

Region

Scotland

North West

& Humberside

-1.7

-1.4

Scotland

-0.6

0 1 2 3 4 5 6 7 8

Getting Better

-1.7

0

North West -1.4

North West -5.1 18.2 DBT

Jan Feb Mar

West 76 65Midlands Yorkshire

54 43 32 & Humberside

21 -2.9 10

0 0 01

12 23 34 45 56 67 -0.6

Yorkshire

78

8 West Midlands -5.7

& Humberside Scotland -3.5

18.2 DBT

East 7 6Midlands

5 4 3West 2 Midlands -1.41 0 -2.9 0 1 2 3 4 5 6 7 8 West East Midlands Midlands -5.7 -6.3

East MidlandsGetting Getting -1.4 Better Better

East Midlands Getting -6.3 Getting Better Better

+0.7 East Anglia

East Anglia -7.1

Scotland

+0.7-1.7

-1.7

Getting East Better Anglia

East Scotland

Anglia Getting

-8.4 -7.1 -8.4

Better

Wales -4.3

Wales -12.5

North North Scotland West Wales West-1.4

-1.7 -1.4 -4.3

Northern

Scotland North West Wales West -8.4 -5.1 -12.5 -5.1

Northern

Ireland

Ireland

Yorkshire & Humberside

& North 23.0 North DBT

South West-0.6

-0.6 -1.4

Yorkshire & Humberside

& 23.0 South DBT

South West -1.4

South West-5.1

West -3.5 -8.9 -3.5 -8.9

North West North Yorkshire West & Yorkshire &

15.7 Humberside

DBT

Yorkshire West West & Humberside

Midlands -0.6

Yorkshire & Humberside -3.5 12.5 DBT

South East-2.9

-2.9 -1.5

West West Midlands South East -5.7 -12.0 -5.7 15.7

Humberside

DBT

12.5 DBT

South East -1.5

South East -12.0

East West East Midlands

-2.9

London-1.4

-1.4 -1.0

West East East Midlands

London-5.7

-6.3 -13.2 -6.3

East

Midlands

London East Midlands -1.0 +0.7 +0.7 -1.4

East Midlands -6.3

14.0 DBT

+1.8

East East Northern Anglia Anglia Ireland

Northern East East Anglia Ireland Anglia London -7.1 -3.9 -7.1 -13.2

East

West

Midlands

+0.7 East Anglia

East Anglia -7.1 Midlands

Wales East Anglia

Getting

Wales

Worse-4.3

-4.3

Wales Wales

Wales-12.5

-12.5

Getting Worse 15.1 14.0 DBT

+1.8 Northern Ireland

Northern Ireland DBT-3.9

14.0 DBT

Wales -4.3 8 7 6 5 4 3 2 1 0 0 1 2Wales

3 13.6 4 -12.5 5 6 7 8

Region

DBT

West

South South West West-1.4

-1.4 8 7 6 5 4 3 2 1 0 South 0 South 1

2West

3 -8.9 4-8.95 6 7Midlands

8

London

East Anglia

Getting perhaps Worse ensuring their own supply chains

South West -1.4 Region

South West Getting -8.9 Worse Wales

18.4

15.1 DBT

DBT

are kept sweet. South South Whatever East East the -1.5 reason -1.5it

South South East East-12.0

-12.0

14.0 DBT

13.6 DBT

South East

should be applauded and shows a big

South East -1.5

South East -12.0 South West

13.5 DBT

step forward from London a weak end -1.0 to -1.0 2015.

Getting BetterLondon

-13.2 -13.2

Getting Better

Getting Better

12.8 DBT

London

On a less encouraging London note, although -1.0 the

Scotland -1.7 London -13.2

overall figure is better +1.8 than +1.8it Northern has been in Ireland Ireland Scotland Northern -1.7 Ireland Ireland-3.9

-3.9

18.4 Scotland

DBT

Scotland

-8.4

South East

-8.4

the past, it is disappointing +1.8to see Northern Public Ireland

Northern Ireland -3.9

North West -1.4

North West -5.1

Administration Getting heading Getting Worse up Worse the ‘Getting

North West -1.4 Getting International Getting Worse Worse

South West Mining & North West Health 13.5 DBT & -5.1

Top Six Prompter Getting Payers Worse

Bottom IT Five & Comms Poorer Payers Getting Bodies Worse

Agriculture

Quarrying

Social

Worse’ section of our analysis, and only

Yorkshire & Humberside -0.6

Yorkshire 12.8 DBT

& Humberside Scotland -3.5

just outside the bottom five. Given the Sector

Yorkshire Getting Better & Humberside -24.1 -0.6 -23.2 -4.1 Yorkshire -3.5& Humberside -2.4 Scotland -3.5

18.2 DBT

Region Feb 16 Change on Sector

Jan 16

Region Feb 16 Change on Jan 16

continued scale of the public sector, the

18.2 DBT

West Midlands -2.9

West Midlands -5.7

Yorkshire

knock-on

& Humberside

effect of poor performance

12.5 -0.6

West

here

Northern Midlands Ireland -2.9 23.0 +1.8

West Midlands -5.7

Public

Water & Waste

Hospitality

South West 12.8 -1.4 Sector

Getting Worse

can have much wider implications.

East London Midlands -1.4

Administration 18.4 -1.0

East Midlands

+1.7 +1.3 East Midlands -6.3

South East 13.5 -1.5

Scotland

-1.4

East Midlands -6.3

+3.2 18.2 International -1.7

Mining &

mpter

Wales

Payers

REGIONS

13.6 -4.3

Bottom

North West IT Five +0.7 & Comms Poorer

+0.7 East East Anglia Payers

Anglia 15.7 Bodies -1.4

AgricultureEast Anglia Quarrying

East Anglia -7.1 -7.1

East In the Midlands now time-honoured 14.0 fashion Yorkshire -1.4

West Midlands 15.1 -2.9

Getting Better

East and Anglia Humberside is once again 14.0 the +0.7

Wales

-24.1

Wales -4.3

-23.2 -4.1

Mining &

-4.3

Wales

-3.5

International

Mining &

-12.5

Northern Wales

Health Health &

-12.5

&

Feb 16 Change on Jan 16

Region IT & Comms IT & Comms International Bodies Bodies Feb 16 Agriculture Agriculture Change on Jan Mining Quarrying 16Quarrying

& Northern Health Social & Social

Ireland

promptest paying region across the UK

IT & Comms

Bodies

Agriculture

Quarrying Ireland Social

Getting Getting Better Better

23.0 DBT

umberside South West -1.4

South West -8.9

although on 12.5 this occasion -0.6 they are only

Northern 23.0 DBT

Getting Better South -24.1 Ireland -24.1

-24.1 West -1.4 -23.2 -23.2 -4.1

-3.5 -3.5

-23.2 23.0 -4.1+1.8

-3.5 South -2.4 West -2.4 -2.4-8.9

Public

Water & Waste

Hospitality

just ahead 12.8 of the good folk -1.4 of the South Getting Worse London South East -1.5 Administration 18.4 -1.0 South East -12.0

West. Our other traditionally prompt region

South EastPublicPublic

-1.5 Water Water & Waste & Waste Hospitality Hospitality South East -12.0

Getting Getting Worse Worse

+1.7 +1.3

Public

Water & Waste

Hospitality

13.5 -1.5

Getting Scotland Worse

Administration

of East Anglia also held their position in

Administration

London London-1.0+3.2

18.2 +1.7 +1.7

-1.7

+1.3 +1.3 +1.3 London -13.2

the top six, but surprisingly it’s showing a

+3.2

London -13.2

13.6 -4.3

North West 15.7 -1.4

s

worsening

14.0

trend. However,

-1.4

a significantly

West Midlands +1.8 +1.8 Northern Northern Ireland Ireland 15.1 -2.9

improved performance from Wales sees it

jump into the 14.0 top four. On +0.7 a more negative

Getting Worse

Top Top Top Five Five Five Five Prompter Prompter Payers

Getting Worse

Payers payers

Bottom Five Poorer Payers

note Northern Ireland’s unchallenged

position as the slowest paying region in

the UK continues and indeed is getting

even worse. This is a trend that seems to

have gone on for quite some time now and

must be of real concern to credit managers

across the region. Although London and

Scotland are also in the bottom three, it is

encouraging to see them both back on a

positive and improving track and indeed

it is worth noting that in general terms

we have only two regions not showing an

improvement this month.

Jason Braidwood FCICM(Grad) Head of

Credit & Collections - Creditsafe Group

Sector Sector Sector Feb Feb 16 16 Feb 16 Change Change on Jan on 16Jan 16

International Bodies Bodies 6.5 6.5 -23.2

-23.2

Business Business from from Home Home 8.9 8.9 -0.8

-0.8

Education Education 9.5 9.5 -1.0

-1.0

Entertainment 9.6 9.6 -1.0

-1.0

Finance Finance & & Insurance & Insurance 10.3 10.3 -0.2

-0.2

Top Top Six Six Prompter Payers Payers

Top Six Prompter payers

Scotland

North West

Scotland

Getting Better

North West Yorkshire &

North West Y

15.7 Humberside

DBT

15.7 H

DBT

12.5 DBT

Ea

Midla

Northern Northern Ireland Ireland -3.9 -3.9 14.0

West Wes

Midlands Midla

Getting Worse Wales Wales 15.1 DBT

Bottom Bottom Five Five Poorer Poorer Payers Payers Payers

Getting Worse 15.1

13.6 DBT

13.6 DBT

Sector Sector Feb Feb 16 16 Feb 16 Change Change on Change Jan on 16 Jan on 16Jan 16

Londo

Professional && Scientific & Scientific 25.1 25.1 25.1 -1.6 -1.6 -1.6 18.4 D

Water Water & Waste & Waste 20.4 20.4 20.4 +1.7 +1.7 +1.7

Business Business Admin Admin && Support & Support 18.7 18.7 18.7 -2.1 -2.1 -2.1 South WestSouth West

Transportation 16.0 -1.1 12.8 DBT

16.0 16.0 -1.1 -1.1 12.8 DBT

Energy Energy Supply Supply 15.3 15.3 15.3 -1.3 -1.3 -1.3

International

Bottom Bottom IT Five & Comms Poorer IT Five & Comms Poorer Payers Bodies Payers Bodies

Bottom Five Poorer Payers

-24.1 -24.1 -23.2 -23.2

Getting Getting Better Better

Region Region Feb 16 Feb 16 Change Change on Jan 16 on Jan 16 Region Region Feb 16 Feb 16 Change on Change Jan 16 on Jan 1

Yorkshire Yorkshire & Humberside & Humberside 12.5 12.5 -0.6 -0.6

Northern Northern Ireland Ireland 23.0 23.0 +1.8 +1.8

Public Public Water & Waste Water & Waste Hospit

South South West West 12.8 12.8 -1.4 -1.4 Getting Getting Worse London

Worse London Administration Administration 18.4 18.4 -1.0 -1.0

+1.7 +1.7 +1

South South East East 13.5 13.5 -1.5 -1.5

Scotland Scotland

+3.2 +3.2 18.2 18.2 -1.7 -1.7

Wales Wales 13.6 13.6 -4.3 -4.3

North West North West 15.7 15.7 -1.4 -1.4

East East Midlands Midlands 14.0 14.0 -1.4 -1.4

West Midlands West Midlands 15.1 15.1 -2.9 -2.9

East East Anglia Anglia 14.0 14.0 +0.7 +0.7

-8.4

Yorkshire & Humberside

Scotland

Getting Better

-8.4

-5.1

-3.5

Region

25

20

15

10

5

15.7 15.8 16.2

International

AgricultureAgricult

-4.1

Getting Be

-4.1

The recognised standard in credit management

www.cicm.com April 2016 39


HR MATTERS

READING BETWEEN

THE LINES

Gareth Edwards warns employees against inconsistent verbal and written references

about a former employee.

DOES early conciliation affect the

three-month limit on an employee

claim? This question was answered

in Myers and Another v Nottingham

City Council [2015].

ACAS early conciliation (EC) was

introduced in April 2014. Since then,

employees must engage with EC before

presenting a claim to the employment

tribunal (ET). At the end of the period in

which EC takes place, the employee will be

presented with an EC certificate containing

a number that must be quoted on the

claim form. An employee generally has

three months from the date on which their

employment terminates to bring an unfair

dismissal claim against their employer.

This period is called the limitation period.

Since April 2014 the limitation period has

been extended to take account of the EC

period, which is generally up to one month.

If EC is started within the last month of the

limitation period, the limitation period will be

extended a further month from the end of

the EC period.

In the case of Myers and Another, two

employees contacted ACAS, and therefore

commenced their EC period, before

their employment was terminated on the

grounds of redundancy.

The matter was not resolved during the

EC period and the employees presented

their claims to the tribunal. Before the

tribunal the employer, Nottingham City

Council, argued that the (five) days after

contacting ACAS to commence EC and

before the employees were dismissed

should not be added to the limitation period

– this would have meant that their claims

were submitted out of time.

The ET rejected the council’s argument

and found that the whole EC period should

be added to the limitation period, despite

the fact that the employees contacted

ACAS and the EC period commenced prior

to their dismissal. The reasoning was to

encourage, rather than penalise, employees

contacting ACAS promptly.

This case is a useful reminder to

employers if they want to monitor when a

potential claimant's limitation period will

end in light of ACAS’ EC procedure.

PENALTIES FOR UNPAID TRIBUNAL

AWARDS

The Government confirmed its intention

to introduce new 'unpaid award penalties'

from April 2016.

This means that the Government will

issue a 'warning notice' if any tribunal

awards or payments due under settlements

remain unpaid by employers.

If the sums continue to remain unpaid,

the employer, not the employee, will

receive a 'penalty notice' of 50 percent of

the outstanding balance payable to the

Secretary of State. This penalty will be

subject to a £100 minimum and £5,000

maximum.

BE CAREFUL WHAT YOU SAY

Can disability discrimination arise when

a job offer is withdrawn after a former

employer gives a negative verbal reference?

In Pnaiser v NHS England and

Coventry City Council [2016], Ms Pnaiser

was disabled within the meaning of the

Equality Act 2010. Her employment came

to an end by reason of redundancy, and

was terminated by way of a settlement

agreement, which included an agreed

reference.

Pnaiser subsequently applied for a job

elsewhere, which was offered subject to

satisfactory references. The settlement

agreement reference was provided by

her former employer, but a telephone

conversation was also offered if the

prospective employer wanted further

information.

That telephone conversation took place,

and the prospective employer was informed

that Pnaiser had had a significant amount

of time off work in her previous employment

for a condition lasting more than 12 months,

and Pnaiser was not recommended for the

new role.

The job offer was withdrawn following

that telephone conversation and Pnaiser

brought a claim against both her former and

prospective employers for discrimination

arising from disability.

The ET dismissed the claim on the basis

that a case of discrimination had not been

established.

Pnaiser appealed, arguing that the

tribunal set an ‘impermissibly high hurdle’

by requiring her to show the only inference

that could be drawn from the facts is that

discrimination occurred.

The Employment Appeal Tribunal (EAT)

allowed Pnaiser's appeal and found that

the tribunal should have asked whether it

could be inferred from the facts that the

negative reference was given at least partly

because of Pnaiser's previous absences

(which were disability related). Once this

was established, the burden shifted to

the respondent to show that the disability

related absences were not the reason that

the referee did not recommend Pnaiser.

The EAT decided that it was clear from

the facts that the unfavourable reference

was at least partly as a result of the

sickness absence, which in turn was a

consequence of the disability.

Where a written reference is agreed as

part of a settlement agreement, referees

should not provide a separate verbal

reference that is inconsistent or contradicts

the agreed written reference.

Gareth Edwards is a partner in the

employment team at Veale Wasbrough

Vizards.gedwards@vwv.co.uk.

40 April 2016 www.cicm.com

The recognised standard in credit management


2016 CICM EVENTS

NOT TO BE MISSED

Webinars

Workshops

Showcases

British Credit Awards

Law Conference

Fellows Lunch

Education Conference

CICM Best Practice

Just another great reason to be a member

See full programme at www.cicm.com/events

www.cicm.com | +44 (0)1780 722902 | events@cicm.com

The recognised standard in credit management

41


TECHNOLOGY FOCUS

BUSINESSAPPS

In our ongoing series, Credit Management takes a look at the most useful

business apps for tablets and the most popular games for passing the time.

Is there an app that you can‘t live without or a game that you are currently

hooked on that helps you while away the time on the long journey to work?

Let us know at editor@cicm.com

LUCIDCHART

Lucidchart helps teams and clients share professional charts

or diagrams, and providing design software for anything from

brainstorming to project management. This tool is supported

by a collaborative and clean interface, enabling integrative work

projects to take place in real time, encouraging a more visual

style of communication.

AVAILABILITY: Android/iOS

COST: Free

ENVOY PASSPORT

This app acts as an online management device for businesses,

signing visitors in and out, with no cap on the number of visitors

or the number of hosts in your directory. Envoy can be managed

in multiple locations under one account, for those businesses

with internationally distributed offices. It also acts as a useful

admin device, configuring employee contacts and visitor data.

FRESHDESK

Freshdesk mobile app is used to help businesses deliver

exceptional customer service experiences, without the need for

face-to-face interaction, which is not always possible. Instead,

the app acts as a real time helpdesk in your phone, answering

customer queries, recording problems and resolving them even

when the user is away from their desk.

AVAILABILITY: iOS

COST: From basic free to Enterprise package

AVAILABILITY: Android/iOS

COST: Depends on package

BAMBOO HR

With the strap line ‘it’s about the people not the paperwork’,

Bamboo HR is an online human resources app, that enables

employee data to be made easily accessible in abundance

online, eliminating the need for paper work and spreadsheets.

All employee data is secure in one location, which can be made

accessible to employees where necessary.

AVAILABILITY: Android/iOS

COST: Depending on number of employees

KAYAK

This app allows users to book multi-city flights, hotels and even

rental cars, allowing business trips to be planned simply and

quickly from a hand held device. Similarly, the app allows you to

track and plan itinerary, with a simple navigation page displaying

the hotels booked, flights and car hire (if needed). Prior to the

booking, the app also offers the user comparative pricing across

multiple sites

AVAILABILITY: Android/iOS

COST: Free

42 April 2016 www.cicm.com

The recognised standard in credit management


Minimise bad and doubtful debt | Best practice applied consistently

Customer satisfaction | Regulatory and legislative compliance

CICM specialised credit training can be tailored and conveniently

delivered 'In-Company' at your offices.

.

Credit Management | Credit Strategy | Credit Risk | Collections

Export Credit | Financial | Legal

.

Have a look at our Training Directory for example programmes.

ELECTIONS2016

NOMINATIONS CLOSE 1 APRIL

The Advisory Council influences the strategy, policy and future direction of the Institute.

Its members reflect the diverse range of skills, ages and experience amongst the Institute’s

membership, and bring valuable expertise and knowledge.

Being a member of the Institute’s Advisory Council is your opportunity to:

• Participate in the Institute’s governance

• Make a valuable contribution to the credit profession and the CICM

• Raise your personal and professional profile

There are 23 Advisory Council positions open for nomination representing our 11 regions

and the trade, consumer, international and credit services sectors.

Please visit the About Us area at www.cicm.com to find out more about the role.

Nominations now open.

THIS IS YOUR OPPORTUNITY

W: www.cicm.com E: elections@cicm.com

YEAR

NEWTARGETS!

WHAT IS KEY THIS YEAR?

Use your budget wisely - develop your credit team!

Contact Julie Dalton, In-company

Training Adviser, to discuss how

CICM can help you and your

team meet targets and have a

successful 2016.

t: +44 (0)1780 722907

e: julie.dalton@cicm.com

THE RECOGNISED STANDARD IN CREDIT MANAGEMENT

The recognised standard in credit management

www.cicm.com April 2016 43


BAXFORD LTD.

Trace and Investigations

With more than 15 years of experience in

the investigations industry, clients trust

in our first class service.

Our standard UKtraces are offered on a

‘no find -nofee’ basis and all enquiries conducted are

within strict compliance of the Data Protection Act.

Our specialities:

• Address Trace

• Employment Trace

• Asset &Pre-Sue Reports

• Background Checks

Contact Faheem now for anon-obligation

discussion about your requirements.

Tel: 020 8255 1010

Email: enquiries@baxford.co.uk

www.baxford.co.uk

44 April 2016 www.cicm.com

The recognised standard in credit management


THE JEWEL IN THE HEART OF BUSY LONDON

- THE VICTORIAN BATH HOUSE -

THE PERFECT VENUE FOR THIS YEARS

CICM FELLOWS’

LUNCH 2016

10 June 2016

Victorian Bath House, Bishopsgate

Courtyard, London, EC2M 3TJ

…includes an enlightening talk on the Bath House

Tickets for this event are £128 plus VAT per person.

If you would like to book a seat - email: fellowslunch@cicm.com

or call Becki Sharpe on 01780 722902.

The recognised standard in credit management

www.cicm.com April 2016 45


EDUCATION

STEP UP TO

THE NEXT LEVEL

Become the Complete Credit Manager. Equip yourself for

specialist and management roles by investing in the Level 5 Diploma

in Credit Management MCICM(Grad).

WHO’S IT FOR?

Credit controllers, analysts or team

leaders who would like to move to more

senior roles or experienced credit

managers who need to consolidate their

experience with qualifications.

WHAT DOES THE LEVEL 5

DIPLOMA OFFER?

• Advanced knowledge in key credit

management areas.

• Opportunities to carry out useful

projects at work and learn new skills.

• Increased ability to innovate, lead teams

and work effectively in complex business

environments.

• The career boost of being a

MCICM(Grad) and opportunity to

progress further.

HOW LONG WILL IT TAKE?

2 years. 3 work-based assignments pa

ENTRY REQUIREMENTS

Level 3 passes in CICM credit

management, business environment,

business law and accounting or equivalent

(A Level or above). See CICM website or

contact CICM to find out how to achieve this.

HOW DOES CICM ASSESS ME?

Six work-based assignments

HOW CAN I STUDY?

A range of options: Evening classes, virtual

classrooms and supported distance learning

or you could study independently – all units

have study guides and recommended texts.

CICM website has details.

STRATEGIC PLANNING

Be forward thinking - carry out a PESTEL,

SWOT analysis and benchmark your

departmental practices and performance

-identify areas for improvement.

STRATEGIC COMMUNICATIONS

AND LEADERSHIP

Become a communication expert - use

your skills to improve communications with

customers - find out how leaders help teams

achieve organisational goals.

ADVANCED CREDIT

RISK MANAGEMENT

Become an expert in credit

risk management – showcase

your skills and recommend

improvements.

CICM

LEVEL 5 DIPLOMA

MCICM(GRAD)

Become the Complete

Credit Manager

PROCESS IMPROVEMENT

Be effective - learn process

mapping and improvement

techniques - carry out

a process improvement

project.

COMPLIANCE

Become a compliance expert - complete

a self-assessment report on legal regulatory,

ethical and social requirements.

PROCEEDINGS AND INSOLVENCY

Become knowledgeable about bankruptcy

and insolvency - learn how best to manage

legal proceedings (exam will be replaced

with an assignment in January 2017)

Visit www.cicm.org.uk or ring 01780 722909 or email

professionalqualifications@cicm.com to find out more.

46 April 2016 www.cicm.com

The recognised standard in credit management


‘Having previously obtained some accountancy

and management qualifications, I wanted to

differentiate myself from these so that I could

demonstrate that credit management was a unique

discipline, requiring different skillsets, and also

highlight that I was technically qualified’.

SIMON JOHNSON - DIRECTOR OF UK

CREDIT MANAGEMENT SIG PLC

I qualified as a means to distinguish myself from the

other credit controllers in the Bristol jobs market and

progress beyond entry level credit control jobs. The

qualifications gave me the confidence to take my

career further. Moreover, as I've subsequently risen

to credit manager roles in two professional service

industries, it has ensured that the lawyers

and accountants I’ve worked with have treated me as

an equal.

JOHN MAUL - CREDIT MANAGER

VEALE WASBROUGH VIZARDS LLP

Since starting as a credit controller at 18 years

of age, I wanted to be a credit manager. The

CICM qualification was my route to management.

My career took off once I obtained my

qualification and I’ve not looked back since

ROBERT HULL - CREDIT MANAGER

METRO SAFETY GROUP

When I studied for CICM qualifications, I was

working for Volkswagen Financial Services (UK)

Ltd as a credit manager. The qualification was

very relevant to my role covering key aspects to

help me with my job. I left school with reasonable

qualifications but felt I needed to supplement this

with a professional qualification from a recognised

institution. The qualification was the foundation

that has helped my career progression to date

within the Volkswagen Group. While I enjoyed my

role as a credit manager, I have since taken on

other roles including Head of Banking Services

with VW Financial Services, Sales Planning with

Volkswagen, Network Development with Skoda and

more recently Business Management with Bentley

Motors. I still value being a member of the Institute

and recommend it to my colleagues who are in the

earlier stages of career development.

IAIN SEMPLE - NETWORK BUSINESS MANAGER

BENTLEY MOTORS LIMITED

Like others, I ended up ‘chasing’ the money because

no-one else wanted to. I attended a one day seminar

and found that I was mainly ‘doing it right’ but there

were many pitfalls and many tricks to learn to ensure

that debts did not become bad and how to deal

with those that did. I decided to study to get the

qualification. Being qualified gave me a qualification

and the confidence to undertake my roles and

improve credit management wherever I worked.

Achieving MCICM(Grad) showed employers that

I was professional and committed. I also became

a member of the local branch which extended my

contacts and professional development.

MARY MACLEAN - PRICING & COST MANAGER

DE & S DEFENCE MUNITIONS

I thought CICM would be the appropriate

qualification to progress a career in credit

management - and how right I was! 100 percent.

Being qualified, I continue to enjoy a fantastic

career in credit management. Having worked in

senior positions for going on ten years from credit

manager, Head of credit management, Credit

Director and currently Global credit manager

(Assoc Director), I believe CICM helped me get to

this level.

TONI WHITTON - GLOBAL CREDIT MANAGER

MANAGEMENT PREMIER FARNELL PLC

The breath and knowledge gained from CICM

studies have been very useful. I have now been

promoted to credit manager in a 70 million

turnover company; CICM is a more recognised

professional qualification than ever.

NEIL HOPKINS - CREDIT MANAGER

HIRE STATION LIMITED

Getting qualified for me was a result of support

and encouragement from my boss and the desire to

understand more about credit. I was initially drawn

towards insolvency and law of credit but once engaged

with the studies realised the huge potential of credit

management. CICM qualifications have been essential in

achieving my career goals. Today I have the privilege of

managing credit facilities across 91 different countries,

throughout Europe, Middle East, Africa and Russia.

As a credit professional who has been working within

credit for the past 24 years, I have travelled to many

places around the world and met many interesting and

influential people. I look forward to the next 20 years

which I am sure will be just as enjoyable.

JULIAN PAUL - CREDIT RISK MANAGER,

INTERNATIONAL CREDIT HARLEY-DAVIDSON

EUROPE LTD

The recognised standard in credit management

www.cicm.com April 2016 47


NEW CICM MEMBERS

The Institute welcomes new members who joined during February

MEMBER

NAME COMPANY NAME COMPANY

Thomson Davie

De Lage Landen Leasing Ltd

William Dunny

Lisduggan District Credit Union Ltd

Michelle James

Mainstay Group Ltd

Paul Le Poidevin

Arvato Financial Solutions

Anu Massey

Appleton Massey co.uk

Gillian Phillips

Nisbets Plc

Anita Pickersgill

Kingsland Receivables

Mohammed Rashid

Deloitte LLP

Peter Rollason

BRMB Radio Group

ASSOCIATE

NAME

Hannah Dent

Peter Taggart

Georgina Wright

COMPANY

SMA Vehicle Remarketing Ltd

Weightmans LLP

Truck East Ltd

AFFILIATE

NAME COMPANY NAME COMPANY

Rob Aberdeen

Janet Ayres

Daniel Bacon

Jason Barratt

Ammaara Bhana

Bhagyawatee Bhiwa

Amanda Boyce

Steven Bramhall

Zoe Bratley

Linda Brownlee

Melanie Bucknall

Matthew Buller

Stuart Butcher

Amy Cook

Sarah Cooper

Louise Cornmell

Lauren Cowen

Angela Cropper

Nicky Crossey

Colin Davis

Jonathon Day

Emma Douglin

Roger Duckworth

Jane Duckworth

Lisa-Marie Edwards

Jeffrey Fenton

Daniela Gega

Lisa Gendre

Amit Ghei

Andrew Gillott

AnielGoyal

Clair Hainsworth

Stevan Hill

James Holmes

Ian Honeysett

Susannah Horscroft

Beverley Hughes

Lesley Ireland

Shoeb Issufo

George Izzo

Charles Jackson

Aldona Janiak

John Jordan

Stephen Kay

Kimberley Kidwai

Marcus Kirby

Anthony Kirke-Reynolds

Aberdein Considine

Q A Ltd

Bristow & Sutor

Bristow & Sutor

StepChange Debt Charity

Trinity Mirror Digital Recruitment Ltd

Capita Group Ltd

Anixter Ltd

UK Fuels Limited

Hays Credit Management

Allsop

Sankeys Funeral Service

Andrew Wilson & Co

Haven Power Ltd

StepChange Debt Charity

UK Fuels Limited

Wolverine Europe Ltd

Q A Ltd

Parker Building Supplies Ltd

Civica Services Ltd

StepChange Debt Charity

Askews

Westcoast Limited

Elliott Davies (Sheriffs) Ltd

Allsop

ICE Futures Europe

Derby Legal Services Ltd

Royal Garden Hotel Ltd

Q A Ltd

Civica Services Ltd

Allied Bakeries Ltd

Kings College London

StepChange Debt Charity

Q A Ltd

Allsop

StepChange Debt Charity

WSP Group Ltd

C & J Clark International Ltd

TNS UK Ltd

Hays Credit Management

StepChange Debt Charity

Marshalls Group Plc

StepChange Debt Charity

Canal & River Trust

Crystal Lam

Rachel Leigh

Glenn Lewin

Stacey Little

Siisii Luyanga

Chelsea Lynch

Nahida Malik

Thomas Maund

Jackie McCauley

Michael McClelland

Alex Mearns

Arjun Mohindra

Aaron Muncherji

Ekwebe Ndango Ndagha

Andrew O'Connor

Joseph Okochi

Rachel Owen

Leanne Packer

Amar Patel

Sarah Patel

Lorna Phillips

Katie Rawlings

Katherine Ray

Lorraine Reynolds

Karen Richard

Holly Robb

Michael Scott

Jerry Sereboh

Morrisa Singh

Nagananghini Sivarasa

Gaynor Steen

Jacqueline Steven

Susan Stroud

Diane Thompson

Caroline Thomson

Alan Thorne

Melissa Tostevin

Edward Vann

Jacco Versteeg

Richard Ward

Myles Whitworth

Simon Wilkinson

Paul Williamson

Bernadette Worley

Emma Yeomans

Barbara Young

Izabela Zajac

StepChange Debt Charity

StepChange Debt Charity

StepChange Debt Charity

StepChange Debt Charity

Investrust Bank Plc

StepChange Debt Charity

Capita Symonds Limited

WEX Europe Services Ltd

StepChange Debt Charity

Economet

Business Finance Solutions

Bristow & Sutor

StepChange Debt Charity

National Financial Credit Bank SA

StepChange Debt Charity

StepChange Debt Charity

1pm (UK) Limited

ICE Futures Europe

Redefine International

Jeyes Ltd

Allsop

IDS

Digital Projection Ltd

Roche Diagnostics Ltd

Q A Ltd

StepChange Debt Charity

HCA International Ltd

Debt Recovery & Adminstrative Services

Business Design Centre Ltd

StepChange Debt Charity

StepChange Debt Charity

StepChange Debt Charity

Q A Ltd

Bristow & Sutor

Haulotte UK Ltd

Radius Payment Solutions

Bristow & Sutor

Frank G Whitworth

Q A Ltd

StepChange Debt Charity

J Tomlinson Limited

Rolls Royce

Tessa Gough and Associates

Adams Food Ingredients Ltd

48 April 2016 www.cicm.com

The recognised standard in credit management


EVENTS

MOVE TO THE NEXT LEVEL

The Institute looks forward to welcoming you at the 2016 Education Conference being held at the

Birmingham Chamber of Commerce on Thursday 23 June.

THIS year, the focus will be on exploring

the unique skills of credit professionals and

looking at ways to build these to move credit

and collections teams to the next level.

Following the success of afternoon

workshops last year, there will be further

opportunities to attend group sessions

including: a sample lesson, updates on

apprenticeship arrangements, support with

Level 5 assignment writing, and advice

about linking assignments to training

which will include examples of candidates’

work. There will also be several networking

breaks when attendees can meet credit

professionals from other companies.

Delegates last year described the event

as ‘highly enjoyable and well-organised’ and

offering 'a variety of speakers and wealth

of information.' We would be delighted if

you can join us to hear our key speakers

and share your own experiences. See

CICM website for the programme and email

educationconference@cicm.com to book a

place at the free event.

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)

HOW CAN YOU ACHIEVE CICM CPD HOURS?

You can achieve CICM CPD hours a number of ways; by attending branch events, masterclasses, training and

undertaking special projects at work. The CICM activities offering CPD hours can be identified by the CPD

logo which will detail the hours achievable by participating. Below are a few examples of forthcoming events:

CPD

2

CPD

2

CPD

6

5 APRIL – SHEFFIELD AND DISTRICT BRANCH – PRESENTATIONS ON

INNOVATION IN CREDIT AND HOW TO RAISE FINANCE.

21 APRIL – WESSEX BRANCH – HOW TO ENFORCE COUNTY COURT

JUDGMENTS, EASTLEIGH.

26 APRIL – REGIONAL WORKSHOP – DEVELOPING A KILLER CREDIT

POLICY – LONDON.

See the forthcoming events section for many more opportunities.

Have you completed 24 x CICM CPD hours? If so, it’s time to submit your plan and PROGRESS record for

certification. Send your completed submission to Sue Kettle at CICM HQ or email cpd@cicm.com

TO DOWNLOAD A CPD DEVELOPMENT PLAN AND

PROGRESS RECORD VISIT WWW.CICM.COM

The recognised standard in credit management

www.cicm.com April 2016 49


PARTNERS

WITH THE BEST

IN BUSINESS

Hays Credit Management is the award winning

national specialist division of Hays Recruitment,

dedicated exclusively to the recruitment of

credit management professionals in the public

and private sectors. Whether you are looking

to further your career in credit management,

strengthen your existing team, or would

simply like an overview of the market, it pays

to speak to the market leaders.

hays.co.uk

Freeths is one of the UK’s leading regional

law firms with offices across the UK.

We advise on book debt collection and

asset recovery in insolvency situations and

everything in between. We are very proud

to be the CICM’s Corporate Legal Partner

and host the CICM Legal Helpline, providing

free and quick initial legal advice to CICM

members.

freeths.co.uk

Data Interconnect provides integrated

e-billing and collection solutions via its

document delivery web portal, WebSend. By

providing improved Customer Experience

and Customer Satisfaction, with enhanced

levels of communication between both

parties, we can substantially speed up your

collection processes.

datainterconnect.com

Experian is the leading global information

services company, providing data and

analytical tools to clients around the world.

The Group helps businesses to manage

credit risk, prevent fraud, target marketing

offers and automate decision making.

Experian also helps individuals to check

their credit report and credit score, and

protect against identity theft.

experian.co.uk

Sidetrade’s market-leading Cloud solutions

co-ordinate the activities of finance, customer

services and sales involved in the

Order-To-Cash cycle, reducing late payment

and controlling customer risk. Sidetrade’s

Clients reduce their DSO the first three

months and increase the productivity (31%)

of their collection teams, allowing Credit

Managers to dedicate more time to building

long term customer relationships and

achieve their goals.

sidetrade.co.uk

Key IVR provide a suite of products to assist

companies across Europe with credit

management. The service gives the end-user

the means to make a payment when and

how they choose. Key IVR also provides a

state-of-the-art outbound platform delivering

automated messages by voice and SMS.

In a credit management environment,

these services are used to cost-effectively

contact debtors and connect them back into a

contact centre or automated payment line.

keyivr.co.uk

OnGuard is a leading supplier of sophisticated

software in which Credit, Collections,

Complaints and Cash Allocation are

integrated into a single solution. With

customers around the world we offer a truly

global, proven, low-risk high-value proposition

enabling you to achieve results in process

optimization, cost savings, lower DSO and

reduced write-offs whilst strengthening the

relationship with your valued customers.

onguard.co.uk valuable time savings.

This

Rimilia provides award winning Cash

Application & Cash Allocation software

products that deliver industry leading

tangible benefits like no other. Having

products that really do what they say is

paramount – add to that a responsive

and friendly team that are focused

on new and ongoing benefit realisation and

you have the foundations for successful long

term business relationships.

rimilia.com

50 April 2016 www.cicm.com

The recognised standard in credit management


The recognised standard in Credit Management

Ability to manage cashflow is crucial and

control and management of debtors is

often a ‘painful’ task involving manual and

repetitive processes. Safe Credit Control

solutions enable your credit management

team to improve cash flow, reduce debtor

days, increase customer service, cut the

cost of cash collection, eliminate manual

processes and speed up the query

resolution process.

safe-creditcontrol.co.uk

M.A.H. is a global leader in Export Debt

Collection & Trade Dispute Resolution

Services. Headquartered in Switzerland,

we specialise in resolving cross-border

cases swiftly and amicably. Our mission is to

ensure that all creditors receive full payment

for products or services sold out of the UK

without expensive and lengthy litigation.

Having recovered payments from 112

countries, we rank as first choice among major

international exporters, export credit insurers,

governmental organisations, and other B2B

customers in all industries.

mah-international.com

Begbies Traynor is the UK’s leading Corporate

Rescue and Recovery practice, handling

more than 1000 cases per year. We operate

from a network of 37 UK offices, with clients

ranging from SME’s to quoted companies

and global banks.

As a business we have a close relationship

with CICM members and understand the

key role they play in the ongoing financial

health of their organisations. We also

understand the pressures that many face and

have developed a creditor services offering

to support their aims. Whether this is utilised

as a basic free consultation by phone, or a

full suite of services to cover all claims in any

insolvency, we can work with members to

provide a tailored solution.

begbies-traynor.com

Credica are a UK based developer of specialist

Credit and Dispute Management software.

We have been successfully implementing our

software for over 15 years and have delivered

significant ROI for our diverse portfolio of

customers. We provide a highly configurable

system which enables our clients to gain

complete control over their debtors and to

easily communicate disputes with anyone in

their organisation.

credica.co.uk

We specialise in company information with

extensive company coverage, financial risk

metrics and comprehensive corporate

structures. Our Credit Catalyst combines our

international, standardised financial data with

a bespoke credit platform, so you can work

more efficiently, make better quality decisions

and spot risk quickly.

• Assess financial risk and corporate stability

• Get insight on the financial health of individual

companies and across your portfolio

• Manage your data more efficiently

bvdinfo.com

Graydon UK provides its clients with

Credit Risk Management and Intelligence

information on over 100 million entities

across more than 190 countries. It provides

economic, financial and commercial insights

that help its customers make better decisions.

Leading credit insurance organisations,

Atradius, Coface and Euler Hermes, own

Graydon. It offers its seamless service through

a worldwide network of offices and partners.

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 cloudbased

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.

tinubu.com

Innovation Software is a global software

house with clients in 26 countries. Our team

of highly educated, talented and creative IT

and Management consultants are focused on

providing elegant solutions to optimise your

Accounts Receivables. We are authors of

CreditForce, a leading Collections and Query

Management solution that’s delivered to your

computer infrastructure or in the cloud via

Micorosft Azure.

innovationsoftware.uk.com

For further information and to discuss the opportunities of entering into a Corporate

Partnership with the CICM, contact Peter Collinson, Director of Business Development

and Marketing on 01780 727273 or email peter.collinson@cicm.com

The recognised standard in credit management

www.cicm.com April 2016 51


FORTHCOMING EVENTS 2016

FULL LIST OF EVENTS CAN BE FOUND ON OUR WEBSITE:

WWW.CICM.COM/EVENTS

CICM

EVENTS

5 April

CICM Sheffield and District Branch

– Presentations on Innovation in

Credit and How to raise Finance.

SHEFFIELD

18:00 for 18:30 start

Drinks & Refreshments included

Presentations: INNOVATION IN CREDIT

Simon Johnson, Director of UK Credit Management, SIG plc

HOW TO RAISE FINANCE: Karl Hodson, Finance Specialist,

BTG Corporate Solutions.

Contact: To reserve places email: simonjohnson@

sigplc.co.uk

Venue: Mercure Sheffield Parkway Hotel, Britannia Way,

Catcliffe, Sheffield, S60 5BD.

5 April

CICM Kent Branch – Curry and

Credit Evening.

TONBRIDGE

This will be a great opportunity to meet your Committee

and other Kent CICM members to discuss what your

Branch can do for you and what you would like to see from

the Branch.

The cost is £10 per head (payable on the night); however,

places are strictly limited and reservations will be taken on

a ‘first come, first served’ basis.

Contact: To reserve your place, please email Kevin

Artlett at E: kra020@hotmail.com T: +44 (0)7905611186

Venue: Simla Cuisine, 2 Church Road, Paddock Wood,

Tonbridge, TN12 6EZ.

14 April

CICM South West Branch – Annual

General Meeting, Networking and

Dinner.

DEVON

Notice of Annual General Meeting

The South West Branch is holding an AGM at 19:30

Contact: Please reply to Gerry Thomas, Branch Chair

E: southwestbranch@cicm.com by 7 April 2016.

Venue: Dartmoor Lodge, Peartree Cross, Ashburton,

Devon, TQ13 7JW United Kingdom.

20 April

CICM East Midlands Branch

– Breakfast Briefing: Latest

CPD

2

developments in the Credit

World.

COALVILLE

‘Latest Developments in the Credit World’ Supported by

CICM Premium Partner, Hays.

Contact: To confirm your place please, contact the

branch at E: eastmidlandsbranch@cicm.com.

Venue: Aggregate Industries, Bardon Mill, Coalville,

LE67 1TL.

21 April

CICM Wessex Branch – How to

Enforce County Court Judgments.

EASTLEIGH

Dan Geddes is a solicitor in Blake Morgan’s Commercial

Recoveries team with 13 years’ experience in litigation,

specialising in debt recovery and insolvency cases. He will

set out the claims process in the County Court and the

options available to creditors wishing to enforce a County

Court judgment. A High Court Enforcement Officer from the

High Court Enforcement Group will then share some of his

experiences of enforcing County Court judgments

Costs: Free

Contact: RSVP: E: wessexbranch@cicm.com

Venue: Blake Morgan, New Kings Court, Tollgate,

Chandler's Ford, Eastleigh, SO53 3LG.

TRAINING

DAYS

12 April

GETTING STARTED IN CREDIT

CONTROL AND COLLECTIONS

LONDON

Contact: E: training@cicm.com T: 01780 722907

Venue: tbc

20 April

CREDIT TEAM LEADERSHIP

LONDON

Contact: E: training@cicm.com T: 01780 722907

Venue: TBC

21 April

CICM WEBINAR - NEGOTIATING

and INFLUENCING SKILLS

ONLINE

Contact: E: training@cicm.com T: 01780 722907

21 April

HANDLING YOUR OWN SMALL

CLAIMS CASES

LONDON

Contact: E: training@cicm.com T: 01780 722907

Venue: tbc

22 April

CICM WEBINAR - TELEPHONE

COLLECTIONS

ONLINE

Contact: E: training@cicm.com T: 01780 722907

29 April

CICM WEBINAR - TIME

MANAGEMENT

ONLINE

Contact: E: training@cicm.com T: 01780 722907

OTHER

EVENTS

7 April

Credit Summit 2016 London

LONDON

The event encompasses the largest exhibition and new

this year is a 1-2-1 meeting hub to plan your day with key

suppliers. Additionally, the FCA will be at the exhibition

providing you with many opportunities to engage in

discussions on the issues plaguing you and your business.

Contact: www.creditsummit.co.uk

Venue: QEII Conference Centre, London.

7 April

Forums International – OSF (Office

Supplies Credit Forums)

LONDON

Contact: For more information and an information pack,

contact E: osf@forumsinternational.co.uk

Venue: tbc

12 April

Forums International – CPF (Credit

Professionals Forum)

BRACKNELL

Contact: For more information and an information pack,

contact E: cpf@forumsinternational.co.uk.

Venue: Coppid Beech Hotel, John Nike Way, Bracknell,

RG12 8TF.

13 April

Forums International – SAP User

Group

MANCHESTER

Contact: For more information and an information pack,

contact : sapug@forumsinternational.co.uk.

Venue: tbc

14 April

Forums International – DRF (IT

Distributor & Reseller Credit Forum)

STRATFORD UPON AVON

Contact: For more information and an information pack,

contact E: drf@forumsinternational.co.uk.

Venue: tbc

17 - 19 April

ICTF’s Global Credit Professionals

Symposium – Chicago.

USA

View full progamme online: http://www.ictfworld.org/

mpage/2016ChicagoSymposium.

Contact: http://www.ictfworld.org/events/EventDetails.

aspx?id=749487&group=

Venue: The Ritz-Carlton, Chicago, 160 East Pearson

Street, Chicago, IL 60611, United States.

20- 21 April

Forums International – 2iCF

(International IT & Technology

Credit Forum).

DUBLIN, IRELAND

Contact: For more information and an information pack

contact E: 2icf@forumsinternational.co.uk

Venue: tbc

CPD

26 April

6

Regional Workshop

– Developing a killer Credit Policy.

LONDON

Do you need guidance on how your credit policy should

look, what it should include and advice on how to

implement it? We’ll cover it all in ‘Developing a killer Credit

Policy’, a FREE workshop for CICM members. Not only will

we highlight why it’s so important to have an effective

credit policy but we’ll also give you the opportunity to

get personal help and advice from experts on the day

about developing a credit policy that’s right for your own

organisation. There will be guest speakers, workshop

sessions and plenty of opportunities to ask questions and

meet like-minded credit professionals.

Contact: Email events@cicm.com or call CICM

marketing on T: +44 (0)1780 722902

Venue: Hays, 107 Cheapside, London EC2V 6DN.

28 April

Corporate Partner Bureau van

Dijk, ‘An afternoon exploring the

current challenges facing credit risk

professionals’.

LONDON

Contact: CICM members can register for free by

emailing bvd@bvdinfo.com with ‘Credit event’ in the

subject line.

Venue: The Goldsmith's Centre, 42 Britton Street,

London, EC1M 5AD.

52 April 2016 www.cicm.com

The recognised standard in credit management


CM

Credit Management magazine for consumer

and commercial credit professionals

THE CICM'S HIGHLY ACCLAIMED MAGAZINE

SPECIAL

FEATURES

IN DEPTH

INTERVIEWS

ASK THE

EXPERTS

GLOBAL

NEWS

LEGAL

MATTERS

INTERNATIONAL

TRADE

CURRENCY

EXCHANGE

HR

MATTERS

MOBILE DIGITAL

EDITION

EDUCATIONAL

STUDIES

THE LEADING JOURNAL FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS

TO SUBSCRIBE CONTACT: T: 01780 722903| E: ANGELA.COOPER@CICM.COM

CICM MEMBER

EXCLUSIVE

CHECK YOUR SPAM!

REMEMBER TO

WHITELIST

Your CICM lapel badge demonstrates your

commitment to professionalism and best practice

TAKE PRIDE IN

WEARING YOUR BADGE

If you haven’t received your badge

E: cicmmembership@cicm.com

YOU COULD BE MISSING

IMPORTANT EMAIL UPDATES!

WHITELIST KEY CICM EMAIL ADDRESSES:

watermill@cicm.com | info@cicm.com

professionalqualifications@cicm.com

events@cicm.com | consultations@cicm.com

cicmq@cicm.com

The recognised standard in credit management

www.cicm.com April 2016 53


CICM BRANCH NEWS

WEST MIDLANDS BRANCH

CELEBRATING LEARNERS SUCCESS

THE West Mids Branch held their annual

awards night at Crowne Plaza Hotel, Central

Birmingham, which was considered by all

present to be a huge success.

The event began with drinks at the bar

and an excellent buffet was served so

all 31 attendees were well fed before the

presentations began.

Hays, was represented by West Midlands

Committee member, Hollie Wildman, who

gave a very interesting address on the

employment situation, sponsored the event.

There were prizes for each of the core

subjects at Level 3, some had many winners

with equal marks, very close runners up were

also not forgotten. The prize for the best

Level 5 achievement went to Natalie Brown,

a previous Student of the Year 2013. There

were also many prizes for learners who had

more than one pass in the year.

For the first time, there were joint winners

with Ramon Wolfenden and Amber Edwards

(who unfortunately was ill and could not

attend). Author: Peter Cartwright

54 April 2016 www.cicm.com

The recognised standard in credit management


SHEFFIELD BRANCH

AGM AND THE SMALL BEER ACT!

‘OH, The Small Beer Act!’ was one of the

comments that was made to our email flyer

to members inviting them to attend the

Sheffield AGM and hear from our sponsors

Irwin Mitchell LLP on The Small Business,

Enterprise and Employment Act 2015.

After a fabulous networking buffet with

our sponsors the formal business of the

AGM confirmed Chair Laurie Beagle for

a further term (supported by the usual

suspects!) and the committee welcomed

back a new recruit Paula Uttley.

The formal business out of the way

James Hillman from Irwin Mitchell’s

Insolvency team told us about what he

described as a “hoovering up Act to “ensure

that the UK continues to be recognised

globally as a trusted and fair place to do

business”, with particular emphasis on the

effects of Act on creditors and business

generally.

He covered the in the key heading

‘Access to Finance’ how the Act looks to

creating a culture whereby debts are paid

quickly (particularly by larger organisations)

and funding is more readily available

to SMEs and providing the authority to

implement regulations to outlaw provisions

in business contracts prohibiting creditors

assigning debts. He also commended the

huge success of the CICM following years

of campaigning that the Act will finally give

authority to implement regulations that will

require companies to publish information

regarding their payments and terms.

A focus of some of the questions at

the end of the session concerned the new

company filing requirements inter alia to

maintain a register of individuals with control

over the company, corporate directors to

be phased out in five years and a provision

to accelerate strike off process from three

months to two months. This will lead to an

easier life for Companies House which could

inevitably prejudice creditors of a company

whose directors want to avoid debts being

paid with less time for objections.

James finished off by reminding us

that there was plenty more in the Act for

another day, such as the all-important

‘Pubs Code’, Insolvency changes, director

disqualifications and the usual raft of

employment provisions from equal pay to

zero hour contracts!

The meeting closed with Chair Laurie

Beagle formally thanking James and Irwin

Mitchell for hosting the evening at their

Sheffield HQ and reminded members and

guests of the next branch meeting on Credit

Innovation and Business Finance.

Author: Myron Fedak MCICM

WEST MIDLANDS BRANCH

QUIZ FUN AND AGM BUSINESS

THE West Midlands AGM and quiz night was

well attended with 12 teams of four held at

the Woodman in Birmingham. The evening

was kindly sponsored by Freeths Solicitors

and the winning team was from Curran &

Co. with runners up from Zurich Insurance

Plc. The quizmaster was Graham Morgan

from Enterprise Inns with his assistant Peter

Cartwright of Scorpion.

Author: Susan Byrne.

CICM CONTINUING

PROFESSIONAL

DEVELOPMENT (CPD)

CICM recognises the importance of Continuing

Professional Development (CPD) for credit professionals

Start your journey to progression today by downloading

the CICM CPD plan from the website www.cicm.com

STEP CLOSER TO YOUR PROFESSIONAL GOAL

CPD

1

FULL NAME:

John Graham

CURRENT JOB TITLE:

Head of Collections

CURRENT COMPANY

NAME:

Technology Services Group (TSG)

NUMBER OF YEARS IN CREDIT

MANAGEMENT: 21 Years

60SECONDS

NUMBER OF YEARS IN CURRENT ROLE:

6 Years

HOW DID YOU GET INTO CREDIT

MANAGEMENT?

By accident, I was purchasing manager and

was asked to assist when the credit controller

left….21 years later and here I am!

WHAT IS THE BEST THING ABOUT WHERE

YOU WORK?

The people, TSG have some amazing and

talented staff.

WHAT MOTIVATES YOU?

Cash flow is vital to any business, so it’s really

satisfying to get payments on time and to see

the team hit that magic number at the end of

the month.

WHAT IS YOUR FAVOURITE MEAL?

It depends, anything from a chip butty to a nice

Italian!

WHAT IS YOUR FAVOURITE HOLIDAY

DESTINATION?

I love the hustle and bustle of New York, or a

secluded beach in Adrasan.

NAME THREE PEOPLE YOU WOULD

INVITE TO A DINNER PARTY AND WHY?

Jennifer Saunders for laughs, Danny Dyer for

banter and Adele for music.

WHAT IS YOUR FAVOURITE PASTIME/

RELAXATION ACTIVITY?

Dining out in a nice restaurant with friends.

IF YOU WERE TO HAVE ONE SPECIAL

POWER, WHAT WOULD IT BE AND WHY?

My special power would be to reduce calories

to zero on all the delicious food we eat and

therefore not gain weight after those restaurant

visits!

WHAT IS THE BEST/WORST QUALITY IN A

LEADER?

The best would be integrity, to always remain

transparent with your team and be honest and

fair in all dealings. The worst would be failure

to recognise every individual in your team is

different.

WHO IS YOUR BUSINESS OR PERSONAL

HERO?

My Dad, he has lived life to the full and always

saw the good in everyone.

WHAT CAN'T YOU LIVE WITHOUT?

Apart from my amazing team, my phone.

WHAT WAS THE LAST THING YOU

WASTED MONEY ON?

A horrendous weekend in Blackpool during the

recent floods.

WITH

The recognised standard in credit management

www.cicm.com April 2016 55


DON’T MISS YOUR

NEXT BIG CAREER

MOVE IN CREDIT

At Hays Credit Management, our consultants are all affiliate members of

the CICM and understand both the demands you face and the skills you

need to thrive within your industry. We can therefore offer you personalised

career advice and the support that you need.

SENIOR CREDIT CONTROLLER

BUILD YOUR EXPERT TEAM

North London, up to £32,000

This international business has a fast growth of

20-30% year on year with operations across most of the

EMEA. Reporting to the Financial Controller, you will be

responsible for the whole credit function ranging from

SME accounts to large corporates and will involve query

resolution and relationship building. As a key decision

maker, you will make implementations where necessary.

Extensive experience in credit control, particularly

within SME companies is required and implementation

experience would also be desirable. This is an exciting

opportunity to be part of a growing international

business. Ref: 2605315

Contact Hannah East on 020 3465 0020

or email hannah.east@hays.com

SENIOR CREDIT INSURANCE SPECIALIST

SUCCESS THROUGH EXPERTISE

London, circa £30,000 + benefits

Due to an internal promotion, a thriving international

media company is seeking a senior credit insurance

specialist to join its growing credit team. Working

closely with credit insurers and managers, this exciting

role involves a large amount of reporting and risk

analysis where you will provide the scope for on-going

challenges and exposure. To be successful, you will

have an analytical mind, exceptional attention to

detail and strong Excel skills. You will also have recent

experience of either working for or dealing with

credit insurers.

Ref: 2687786

Contact Julia Foster on 020 3465 0020

or email julia.foster2@hays.com

This is just a selection of the many opportunities

we have available for credit professionals.

To find out more, visit us online.

hays.co.uk/creditcontrol

56 April 2016 www.cicm.com

The recognised standard in credit management


SENIOR CREDIT CONTROLLER

ESTABLISH RELATIONS AND CONTROL

Hertfordshire, up to £28,000

This large organisation with a reputation for reliability

and quality is looking for an enthusiastic credit controller

to cover maternity leave for a 12 month period. This

market leader has an excellent attitude towards its

employees, having been recognised with the Investor

in People Award. Focusing on maximising the collection

of outstanding debt from 350 accounts, your main

duties will include chasing payments, allocating cash

and accounts reconciliation. You will be a team player

with considerable credit control experience, excellent

customer service and negotiation skills. Ref: 2674736

Contact Emily Oakes on 07872 158536

or email emily.oakes@hays.com

COMMERCIAL CREDIT CONTROLLER

PROVIDE EXCEPTIONAL SERVICE

Letchworth, £22,000 + company pension

A fantastic opportunity has arisen for a highly motivated

and accomplished credit controller to join an established

global company within the motor industry. This role has

a strong emphasis on client relationships and customer

service, with a goal to maximise your collection of

revenue. Reporting to the Finance Manager, you will

be responsible for managing multiple supplier accounts,

building a strong relationship with existing clients and

assisting with the setup of payment plans. Ideally, you

will have the ability to think commercially and strong

attention to detail. Ref: 2625170

Contact Dhiren Chauhan on 01582 402099

or email dhiren.chauhan@hays.com

CREDIT CONTROLLER

DRIVE COLLECTIONS

Milton Keynes, £22,000 + bonus

Representing some of the best-known household

names, this company is looking for a motivated

individual to join its target-driven credit control team.

You will be responsible for proactively reducing aged

debt and maintaining an accurate debtor’s ledger.

Having built strong relationships with key clients and

account holders, you will target overdue debt whilst

monitoring and controlling all transactions. You will

have a proven background in credit control and have

strong working knowledge of SAP. Ref: 2672539

Contact Joshua Graham on 01908 870254

or email joshua.graham@hays.com

SENIOR CREDIT CONTROLLER

BUILD EFFECTIVE RELATIONSHIPS

Newcastle upon Tyne, up to £23,000

Due to a period of expansion and growth, this growing

service based business is seeking an established senior

credit controller. In this role, your main focus will be to

maintain and build relationships with clients ranging

from sole traders to major ‘Blue-Chip’ and public

sector organisations. You will be required to chase

debt via telephone and e-mail and produce monthly

aged debtor’s reports. To be successful, you will have

previous experience of end-to-end credit control with

a construction based business and a strong client focus.

Ref: 2685819

Contact Hasan Hamid on 0191 261 3996

or email hasan.hamid@hays.com

CREDIT CONTROLLER

EXPERTLY OWN THE PROCESS

Salford, up to £22,000

An experienced credit controller is required at a leading

telecommunications company to join its well-established

credit team of around six. Reporting directly to the Credit

Manager, your duties will include contacting customers

via telephone, email and letter ensuring cash collection

targets are met whilst maintaining key relationships.

You will also liaise with internal departments regarding

queries and resolve accordingly. This role requires

an individual with a strong numerical and analytical

mind-set, excellent attention to detail and the ability to

prioritise their work load. Ref: 2542869

Contact Richard Salmon on 0161 236 7272

or email richard.salmon@hays.com

CREDIT CONTROLLER

MAXIMISE CASH MANAGEMENT

Horwich, £17,000 + benefits

An opportunity has arisen for a confident and proactive

credit controller to join a highly successfully healthcare

organisation. The role will involve maximising cash

collections for your profile of solicitor and insurers

accounts. Liaising with a variety of customer, you will

build and maintain excellent relationships to ensure

repayment of outstanding debt via telephone, email and

written communication channels. Previous background

within a similar role and the ability to communicate

effectively at all levels is essential. Ref: 2694744

Contact Johanna Bretherton on 01942 303990

or email johanna.bretherton@hays.com

The recognised standard in credit management

www.cicm.com April 2016 57


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58 April 2016 www.cicm.com

The recognised standard in credit management


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

ACOUNTANCY

COLLECTIONS (LEGAL)

CONSULTANCY

Controlaccount PLC

Compass House, Waterside

Hanbury Road, Bromsgrove

B60 4FD

T: 01527 549522 (Sales dept)

E: sales@controlaccount.com

W:www.controlaccount.com

Controlaccount has over 30 years of Credit Management and

Debt Recovery experience, helping National and International

SMEs and blue chip organisations, across a wide range of sectors.

We provide a fast, proactive collection service on a no-collection,

no-fee basis, and for some clients a zero cost option,

utilising the late payment act to fund collection procedures. Our

trained collectors take into account your need to recover debts,

whilst maintaining your reputation and preserving customer relationships.

If we can’t recover your outstanding debts through our

collection process, then our service won’t cost you a penny; and

with our additional in-house legal & Trace service as well as our

credit reporting and corporate monitoring services we are ready

to help you every step of the way.

COLLECTIONS

Freeths Solicitors

Third Floor St James’ Building,

61-95 Oxford Street, M1 6FQ

T: +44(0)845 634 2540

F: +44(0)845 634 2541

E: emma.emery@freeths.co.uk

W: www.freeths.co.uk

Freeths is one of the UK’s leading regional law firms with

10 offices across the UK. We have a specialist team that

advises on book debt collection and asset recovery in

insolvency situations and everything in between. We believe our

role is not just to collect your debts but also to increase your

recoveries by working smarter. We have a range of flexible

funding options to suit businesses of any size and advise on

all matters from debt recovery and retention of title to disputes

about the quality of goods and services. For undisputed claims

we can offer low fixed rates or ‘no win no fee’ and we work fast

taking the first steps in recovering your debt the same day. We

are very proud to be the CICM’s Corporate Legal Partner and

to be hosting the CICM Helpline providing free and quick initial

legal advice to CICM members.

Sanders Consulting Associates Ltd

T: +44(0)1525 720226

E: enquiries@chrissandersconsulting.com

W: www.chrissandersconsulting.com

Sanders Consulting is an independent niche consulting firm

specialising in leadership and performance improvement in all

aspects of the order to cash process. Chris Sanders FCICM, the

principal, is well known in the industry with a wealth of experience

in operational credit management, billing, change and business

process improvement. A sought after speaker with cross industry

international experience in the business-to-business and businessto-consumer

markets, his innovative and enthusiastic approach

delivers pragmatic people and process lead solutions and significant

working capital improvements to clients. Sanders Consulting are

proud to manage CICMQ on behalf of and under the supervision

of the CICM.

COURT ENFORCEMENT SERVICES

Premium Collections Limited

Office 3, Caidan House Business Centre, Canal Road,

Timperley, Altrincham, Cheshire, WA14 1TD

T: 0161 962 4695.

F: 0333 121 3843

E: enquiries@premiumcollections.co.uk

W: www.premiumcollections.co.uk

Premium Collections Limited has the credit management solution

to suit you. Operating on a national and international basis we

can tailor a package of products and services to meet your

requirements. Staffed by dedicated professionals with over 60

years combined experience of handling virtually every type of

debt issue, the company was formed in December 2002 and

is owned by our Managing Director, Paul Daine FCICM. Paul’s

particular areas of expertise are the motor finance, insurance

and international debt collection sectors. Services include B2B

collections, B2C collections, international collections, absconder

tracing, asset repossessions, status reporting and litigation

support.

INTERNATIONAL COLLECTIONS

Blaser Mills LLP

Head Office: Park House, 31 London Road,

High Wycombe, Buckinghamshire, HP11 1BZ

T: 01494 478660/478661

E: Jackie Ray jar@blasermills.co.uk or Gary Braathen

gpb@blasermills.co.uk

W: www.blasermills.co.uk

Established in 1888, leading multi-disciplinary law firm Blaser

Mills specialises in services for businesses and individuals.

The Firm has particular expertise in Dispute Resolution and

Debt Recovery working with experienced credit managers and

finance directors providing solutions to both contested and

uncontested claims.

Blaser Mills provides an experienced team including CICM

qualified legal representatives and the Firm is cited in the

Legal 500 law directory based on quality of work and strong

client feedback.

Offices in Aylesbury, London (Central), London (Harrow), Old

Amersham, Rickmansworth, Staines-on-Thames

Court Enforcement Services

Wayne Whitford Director – Business Development

M: 07834 748 183

T: 01992 663 399

E: info@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

We are a new Court Enforcement company that has over 100 years’

experience, of helping credit professionals to enhance both data and

collection performance.

Court Enforcement Services provides faster resolution of unpaid

County Court Judgments (CCJs) over £600 with our free transfer

up service to High Court Enforcement. We offer tailored solutions for

Businesses, DCA’s, Debt Purchasers, Solicitors and Utilities.

As owners of the company we lead and manage all aspects of

the services that are provided on your behalf. Court Enforcement

Services brings a fresh, modern and above all personal customerfocussed

approach to High Court and Civil Court Enforcement.

CREDIT INFORMATION

M.A.H. INTERNATIONAL CORPORATION

Breitenweg 6, 6370 Stans, Switzerland

Ms. Melina Schuler – Business Development Manager

T: ++41 41 618 30 54

F: ++41 41 620 90 26

E: m.schuler@mah-international.com

W: www.mah-international.com

M.A.H. is a global leader in Export Debt Collection & Trade

Dispute Resolution Services. Our head office is located

in Stans, our group law office in Zurich. We specialise in

resolving cross-border cases swiftly and amicably (99

percent of our cases are settled out of court).

We have recovered payments from 112 countries on all five

continents for exporters and other B2B customers of all sizes

in all industries. We rank as first choice among international

export companies, export credit insurers, and governmental

organisations.

Our mission is to ensure that all creditors receive full payment

for products or services sold out of the UK without expensive,

stressful, and lengthy litigation.

Contact us to benefit from our personalised, full-package,

No Collection – No Fee services, provided by our qualified

multilingual global negotiators, collection attorneys, and

affiliate local partner law firms in 65 countries.

Lovetts Solicitors

Lovetts, Bramley House, The Guildway,

Old Portsmouth Road, Guildford, Surrey GU3 1LR

T: +44(0)1483 457500

E: info@lovetts.co.uk

W: www.lovetts.co.uk

Lovetts has been recovering debts for 30 years! When you

want the right expertise to recover overdue debts why not use a

specialist? Lovetts’ only line of business is the recovery of

business debts and any resulting commercial litigation.

We provide:

• Letters Before Action, prompting positive outcomes in more

than 80% of cases • Overseas Pre-litigation collections with

multi-lingual capabilities • 24/7 access to our online debt

management system ‘CaseManager’

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

“...All our service expectations have been exceeded...”

“...The online system is particularly useful and is extremely easy

to use... “...Lovetts has a recognisable brand that generates

successful results...”

CoCredo Limited

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790 600

E: helpdesk@cocredo.com

W: www.cocredo.co.uk

CoCredo were proud winners at the CICM British Credit Awards for

Credit Information Provider of the Year 2014.’ We provide live online

company credit reports and related business information within

the UK and overseas. We have direct feeds from Dun and

Bradstreet, Companies House and other premium providers.

We provide business information on over 228 million companies

across 240 countries. Our information is updated over 500,000

times per day and we have some excellent tracking mechanisms

which provide proactive daily monitoring of changes in

the global information on record. We can offer a wealth of

additional services including D.N.A portfolio management,

CoData marketing information, Consumer and Director Searches.

We pride ourselves in delivering outstanding customer service

offering you unrivalled support and analysis to protect your business.

The recognised standard in credit management

www.cicm.com April 2016 59


Cr£ditWho?

CICM Directory of Services

CREDIT INFORMATION

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

CREDIT INSURANCE

Company Watch

Centurion House, 37 Jewry Street, LONDON. EC3N 2ER

T: +44 (0)20 7043 3300

E: info@companywatch.net

W: www.companywatch.net

What would happen if one of your key customers failed? Do

you rely on company information that is up to 18 months’ old?

Company Watch provides a credit management system that’s

predicted around 90 percent of company failures. Not only

that, our interactive system allows you to input more up-to-date

accounts, and to stress-test company financials to generate an

instantly updated analysis of a company’s financial health. With

a portfolio and email alert system, and a user interface showing

5-year trends along with everything you need to know at a

glance, Company Watch is an invaluable resource in the credit

management process.

Top Service Ltd

2&3 Regents Court, Farmoor Lane, Redditch,

Worcestershire, B98 0SD

T: 0152 750 3990.

E: enquiries@top-service.co.uk

W: www.top-service.co.uk

Top Service is the only credit reference and debt recovery

agency to specialise in the UK construction sector. Top

Service customers benefit from sector specific information,

detailed payment history intelligence and realtime trade

references in addition to standard credit information.

There are currently 3,000 construction sector companies

subscribing to the service, ranging from multi-national

organisations to small family firms. The company prides

itself on high levels of customer service and does not tie

its customers into restrictive contracts. Top Service offers

a 25% discount to all CICM Members as well as four free

credit checks of your choice.

EFCIS Limited t/as ICBA UK

Specialist Trade Credit Insurance Broker

The Office, Mill House Farm,

Mill Street, Hastingwood,

Essex, CM17 9JF

T: 01279 437662

E: amoylan@efcis.com

W: www.efcis.com

EFCIS Limited - Trade Credit Insurance, Debt Collection,

Dispute Resolution and Legal action for small/medium &

multinational businesses. EFCIS secures limits for clients

where the financials alone do not support the full limit. We are

tenacious when negotiating settlement of claims, securing full

payment for claims and proactively working with our clients in

claims avoidance. We are the industry’s only Broker to develop

policy compliance software to ensure client’s maximum benefit

and protection from the policy. We believe that a well-managed

ledger supports business growth within increased profit and an

improved return on investment.

Experian

The Sir John Peace Building,

Experian Way,

NG2 Business Park,

Nottingham

NG80 1ZZ

T: 0844 481 9920

E: Business.Information@uk.experian.com

W: experian.co.uk/businessiq

Managing commercial credit can be a real challenge. That’s

why we’ve created a business management system called

BusinessIQ – an advanced web portal that meets all your

credit risk assessment, customer management and collection

needs in one easy-to-use integrated platform.

Powered by our intuitive business information – blending

business, director, consumer and payment performance data,

BusinessIQ offers a more informed solution for today's credit

risk challenges. It makes credit management operations far

more sophisticated without adding complexity.

Graydon UK

66 College Road, 2nd Floor,

Hygeia Building, Harrow,

Middlesex, HA1 1BE

T: +44 (0)208 515 1400

E: customerservices@graydon.co.uk

W: www.graydon.co.uk

Graydon UK is a specialist in Credit Risk Management and

Intelligence, providing access to business information on

over 100 million entities across more than 190 countries. Its

mission is to convert vast amounts of data from diverse data

sources into invaluable information. Based on this, it generates

economic, financial and commercial insights that help its

customers make better business decisions and ultimately gain

competitive advantage.

Graydon is owned by Atradius, Coface and Euler Hermes,

Europe's leading credit insurance organisations. It offers a

comprehensive network of offices and partners worldwide to

ensure a seamless service.

Arthur J. Gallagher

Insurance Brokers Limited

7 Floor, Temple Point, 1 Temple Row

Birmingham B2 5LG

T: 0121 203 3127

W: www.ajginternational.com

With the risk of default by customers still a major threat to UK

and Global companies there has never been a better time to

consider trade credit insurance. Arthur J. Gallagher’s Credit

and Surety team, which now includes the 2014 – CICM award

winning ‘broker of the year’ team, has considerable experience

and market influence and recognises the unique nature of the

credit insurance market. Our team of experienced professionals

deal with a wide range of businesses, from SME to large

corporate and global risks. Please contact us to discuss how

a specifically tailored trade credit solution can benefit your

business

CREDIT MANAGEMENT SOFTWARE

Creditsafe Business Solutions

Bryn House, Caerphilly Business Park, Van Rd,

Caerphilly, CF83 3GG

T: 0292 088 6500.

E: ukinfo@creditsafeuk.com

W: www.creditsafeuk.com

Creditsafe is Europe’s most used supplier of credit &

business intelligence. Creditsafe have helped over 60,000

customers across Europe and the USA with a range of

products which includes our UK, European and International

Company Credit Reports, which reach over 129 countries

and 90m companies; customer and supplier Risk Tracker and

our 3D Ledger product which has captured over 35 million

Trade Payment Data Experiences since its launch in 2012.

All of which will help companies manage their exposure to

risk, make informed decisions in relation to credit limits whilst

looking at how you can identify gaps within your sales ledger

to prioritise collections and leverage sales.

BUREAU VAN DIJK

Northburgh House,

10 Northburgh Street,

London,

EC1V 0PP

T: +44 (0)20 7549 5000

E: bvd@bvdinfo.com

W: www.bvdinfo.com

We specialise in company information with extensive company

coverage, financial risk metrics and comprehensive corporate

structures.

Our information helps you make better quality decisions.

•Assess financial risk and corporate stability

•Get insight on the financial health of individual companies and

across your portfolio

•Manage your data more efficiently

Our Credit Catalyst combines our international, standardised financial

data with a bespoke credit platform, so you can work more efficiently,

make better quality decisions and spot risk quickly.

•Comprehensive coverage of companies across the globe

•Standardised reports so you can benchmark and compare

companies

•Financial strength indicators from a range of providers

Co-pilot Limited

73 Flask Walk, London, NW3 1ET

T: +44(0) 20 7813 2182

E: info@co-pilot.co.uk

W: www.co-pilot.co.uk

Credit Managers who manage large or multiple ledgers have

come to realise that they need to use specialist software to

achieve or maintain performance improvement – be that risk,

collections or both.

For many Credit Managers a key question is where to start.

How do you examine and evaluate the options? How and when

do you start the budgeting process? What are the steps?

Co-pilot has advised on credit management software for a

number of years. We have good knowledge of the available

solutions, what’s good, how they work and what type of

solution best fits given situations. We combine this with

considerable experience of credit management Best Practice

so that you can pull everything together into one place and

achieve a flexible and sustainable position going forward.

We work with you through a structured evaluation process

which is designed to enable you to have a clear view of

what you can achieve going forward, what is practicable, the

business case implications, the preferred supplier(s) and what

the implementation process would sensibly look like (in our

opinion, there is no such thing as “Plug and play”).

60 April 2016 www.cicm.com

The recognised standard in credit management


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

Prof. Schumann GmbH

innovative information systems

Weender Landstr. 23, 37130 Göttingen, Germany

T: +49 551 38315 0 F: +49 551 38315 20

E: info@prof-schumann.de W: www.prof-schumann.de

Our Credit Application Manager (CAM) is a leading credit

risk management solution for major corporations, as well as

insurance, factoring and leasing companies. In their daily work,

CAM allows credit and sales managers to call up all the available

information about a customer or risk in a few seconds for decision

support: real-time data from wherever they are. CAM keeps an

eye on customers whose payment behaviour stands out or who

have overdue invoices! CAM provides an up-to-date forecast

of customers’ payments. Additionally, CAM has automated

interfaces for connecting to leading suppliers of company credit

data, payment record pools and commercial credit insurers. The

system is characterised by its great flexibility. We have years

of experience in consulting and software support for accounts

receivable management.

Credica Ltd

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

T: 01235 856400

E: 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:

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.

STA International

3rd Floor, Colman House,

King Street , Maidstone , ME14 1DN

T: +44(0)844 324 0660.

E: enquiries@staonline.com

W: http://www.stainternational.com

Getting Business Paid

STA is an award winning B2B and B2C debt collection, receivables

management and tracing supplier. ISO9001 quality accredited,

and with the CSAs Collector Accreditation Initiative, duty-of-care

is as important to us as it is to you. In the past 12 months we’ve

collected from 138 countries worldwide; with Your Debts Online

giving you transparent access to our collection success and the

cost of each and account placed with us for collection. Collected

funds are remitted via BACS. We look forward to getting your

business paid.

Data Interconnect Ltd

Unit 7, Radcot Estate, 7 Park Rd, Faringdon,

Oxfordshire. SN7 7BP

T: +44 (0) 1367 245777

F: +44 (0) 1367 240011

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

Data Interconnect provides integrated e-billing and collection

solutions via its document delivery web portal, WebSend.

By providing improved Customer Experience and Customer

Satisfaction, with enhanced levels of communication between

both parties, we can substantially speed up your collection

processes.

SIDETRADE

Sidetrade UK: Amadeus House,

Floral Street, Covent Garden, London WC2E 9DP

T: +44 203 608 9850

E: Samantha@sidetrade.com W: www.sidetrade.co.uk

Sidetrade offers companies the opportunity to digitise the

management of their financial relationships with customers.

Sidetrade's market-leading solutions, complementary to ERPs,

meet the challenges of securing what is often a company's

largest asset, its accounts receivable, by reducing late payments

and controlling customer risk. With sales in 65 countries and 34

million invoices managed annually, the Group enables 69,000

users from companies of all sizes and all sectors to collaborate

via its cloud solution and accelerate cash-flow generation.

FINANCIAL PR

OnGuard

40 Gracechurch Street, London, EC3V 0BT

T: 0203 4403 825

E: info@onguard.com W: www.onguard.co.uk

OnGuard is a leading supplier of sophisticated software in which

Credit, Collections, Complaints and Cash Allocation can be

integrated in a single solution. With customers around the world

we offer a truly global, proven, low-risk high-value proposition

which focusses on maintaining positive customer relationships

helping to contribute to improving your competitive edge. Our

integrated accounts receivables solution enables you to achieve

faster payment of your invoices plus the benefits of improved

insights into customer behaviour and valuable time savings. This

not only results in process optimisation, cost savings, a lower

DSO and reduced write-offs but contributes to a stronger,

positive relationship with your valued customers. See more at

www.onguard.co.uk.

Gravity London

Floor 6/7, Gravity London, 69 Wilson St, London, EC21 2BB

T: +44(0)207 330 8888.

E: sfeast@gravitylondon.com

W: www.gravitylondon.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 best-known

brands working on often challenging briefs. As the partner

agency for the Credit Services Association (CSA) for the past 13

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.

INSOLVENCY

Safe Computing Limited

20, Freeschool Lane, Leicester, LE1 4FY

T: 0844 583 2134

E: info@safecomputing.co.uk

W: www.safe-creditcontrol.co.uk

Designed to manage your customer credit accounts effectively,

Safe credit control enables your credit management team to:

• IMPROVE CASH FLOW • INCREASE CUSTOMER SERVICE

• CUT THE COST OF CASH COLLECTION

• ELIMINATE MANUAL PROCESSES • REDUCE DEBTOR DAYS

• SPEED UP THE QUERY RESOLUTION PROCESS

Our unique approach is centred on changing the perception of

the credit control function, from a series of reactive processes

to proactive ones. Credit controllers are traditionally regarded

as an essential element in business, to chase late payments

and respond to customer queries. Safe credit control has

taken the concepts of customer relationship management

(CRM) and applied it to the credit control function, enabling

a softer, service orientated team of customer service

representatives.

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

Tinubu Square’s mission is to control and minimise trade credit

risk. Founded in 2001, Tinubu Square has become a trusted

source of trade credit intelligence for credit insurance leaders

and now offers the service to corporate customers enabling

them to assess their credit risk. Tinubu Square’s B2B Credit

Risk Intelligence solutions – including Tinubu Risk Management

Center (RMC) cloud-based SaaS platform, Tinubu Credit Intelligence

service with real-time credit risk intelligence reporting

and Tinubu Risk Analyst advisory service provide companies

with an accurate picture of their customers’ financial health from

sales and marketing through the entire order-to-cash cycle.

Based in Paris, Tinubu Square has offices in London, Brussels,

Singapore and Mumbai.

Begbies Traynor Group plc

340 Deansgate, Manchester, M3 4LY.

T: 0161 837 1700

F: 08432181728

E: michael.locke@Begbies-Traynor.com

W: www.begbies-traynorgroup.com

Begbies Traynor is the UK’s leading independent Corporate

Rescue and Recovery practice, handling more than 1000 cases

per year. We offer a bespoke solution for credit professionals, that

is used by many of the UK’s leading companies. Benefits of this

system include;

• Access to a bespoke online case management system

• UK coverage at creditors meetings;

• Assistance with retention of title claims;

• Proactive monitoring of dividend prospects

• Advice on antecedent transactions;

• A dedicated relationship manager to assist with your insolvency

portfolio and answer any queries.

The recognised standard in credit management

www.cicm.com April 2016 61


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

PROFESSIONAL BODIES

RECRUITMENT

Chartered Institute of

Credit Management (CICM)

The Water Mill, Station Road, South Luffenham,

OAKHAM, LE15 8NB

T: 01780 722910 E: info@cicm.com

W: www.cicm.com

The Chartered Institute of Credit Management (CICM) is Europe’s

largest credit management organisation. The trusted leader

in expertise for all credit matters, it represents the profession

across trade, consumer, and export credit, and all credit-related

services. Formed over 70 years ago, it is the only such organisation

accredited by Ofqual and it offers a comprehensive

range of services and bespoke solutions for the credit professional

(www.cicm.com) as well as services and advice for the

wider business community (www.creditmanagement.org.uk).

PORTFOLIO

CREDIT CONTROL

Portfolio Credit Control

Portfolio Credit Control, New Liverpool House,

15 Eldon Street, London, EC2M 7LD

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

Portfolio Credit Control, solely specialises in the recruitment of

permanent, temporary and contract Credit Control, Accounts

Receivable and Collections staff. Part of an award winning

recruiter we speak to and meet credit controllers all day everyday

understanding their skills and backgrounds to provide you with tried

and tested credit control professionals. We have achieved enormous

growth because we offer a uniquely specialist approach to our

clients, with a commitment to service delivery that exceeds your

expectations every single time.

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.

ANTI MONEY LAUNDERING

CICMos (CICM Online Services)

WWW.CICM.COM

T: 01780 722 907.

E: training@cicm.com

W: www.cicmos.com

CICMOS has been designed to help busy credit managers by

providing them with a suite of online tools to support and

quickly develop their teams. The virtual learning centre is an

open platform system, accessed via the website, which is

easy to use, modular and each module is completely optional,

which means the system can be tailored to suit specific

requirements and time constraints. This wide ranging system

is more than just a training tool it is easy to set up and use

and can be accessed securely via the CICMOS website for a

low annual subscription.

Jobs in Credit

Foxhall Business Centre, Foxhall Road,

Nottingham, NG7 6LH

T: 0207 316 9533

E: info@jobsincredit.com

W: www.jobsincredit.com

Established in 2004, jobsincredit.com is the only UK job board

dedicated to the credit and collections industry. The site attracts

over 30,000 monthly visits, and advertises over 1,000 roles from

a broad mix of employers and recruiters. For candidates our

service is free of charge, and offers an easy way of searching

for and securing your next role. For employers jobsincredit.com

offers the most cost effective recruitment method, no matter the

seniority. Many leading employers are clients, including Barclays,

RBS, Deloitte, Centrica Barclaycard. For more information about

advertising your vacancy, please visit www.jobsincredit.com

SmartSearch

Station Court, Station Road, Guiseley, Leeds, LS20 8EY

T: 0113 238 7660

F: 0113 238 7669

E: info@smartsearchuk.com

W: www.smartsearchuk.com

SmartSearch is the first system to bring together Business

and Individual AML Verification on a single platform. Our data

providers Experian and Dow Jones provide SmartSearch

access to over one billion data items enabling AML

verification in all Markets. AML verification data subjects are

automatically screened against the latest Sanction, PEP and

SIP Lists. Ongoing monitoring for the duration of your contract

is provided at no extra cost. Efficient processes; less than 3

minutes to execute a business AML check and a sub 60 second

individual check. Why not let your Compliance Team test drive

SmartSearch for 14 days free of charge? (Ref:CM101)

The recognised standard

in Credit Management

NOT A CICM MEMBER?

WHAT ARE YOU MISSING?

To find out more about becoming a member of the

largest professional credit management organisation in

Europe, and the full benefits that membership offers,

call 01780722903, visit www.cicm.com or email

cicmmembership@cicm.com

WE LOOK FORWARD TO HEARING FROM YOU

CM

Credit Management

magazine for consumer

and commercial credit

professionals

62 April 2016 www.cicm.com

The recognised standard in credit management


CREDIT MANAGEMENT

CM

MONTHLY PRIZE CROSSWORD

CREDIT CONUNDRUM

FOR ALL EMAIL ENTRIES FOR THE CROSSWORD PLEASE EMAIL: ANDREW.MORRIS@CICM.COM

Puzzle by © 2012 Mirroreyes Internet Services Corporation. All Rights Reserved - CROSSWORD NBR 4

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POST CODE .................................. TELEPHONE NUMBER .....................................................

The CICM is registered with the UK’s Information

Commissioner under the Data Protection Act

1998 (the "Act"). All the data contained on this

form, is held and processed electronically in

accordance with the Act.

The Institute holds and processes your personal

data in order to give you the full benefits of being

a member and for administrative purposes.

We might from time to time notify you by post or

email of details of CICM events or other similar

CICM services or products which we think July /

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receive such notification please tick here q

£20 CROSSWORD PRIZE

If you subsequently decide that you do not

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with a cheque for £10 payable to :

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Road, South Luffenham, OAKHAM, LE15 8NB.

THERE WILL BE THREE PRIZES OF £20 EACH FOR

THE FIRST THREE NAMES DRAWN EVERY MONTH

ACROSS:

1. Piquant

6. Makes lace

10. Rind

14. Small boat

15. Unit of land

16. Apiary

17. A formal charge of wrongdoing

19. Notion

20. Harvester

21. Clunker

22. Focusing glass

23. Coil of yarn

25. Our planet

26. Barely managed

30. Supernatural

32. Goddess of divine retribution

35. Enfold

DOWN:

1. Stigma

2. Rate

3. Ancient Peruvian

4. Masterstroke

5. Affirmatives

6. Make lace

7. Sour

8. Beat thoroughly

9. Transmit

10. Relating to postage stamps

11. Duck down

12. What's happening

13. Tether

18. Biblical boat

24. Dawn goddess

25. Young eel

26. Terminates

27. Retain

28. Arab chieftain

39. Like a god

40. Cloudburst

41. Pixies

43. Big ape

44. Palace

46. Prompts

47. Pizazz

50. Bog hemp

53. Great affection

54. Tavern

55. Straight

60. Basic unit of money in China

61. Pampering

63. Sweeping story

64. How old we are

65. Shelter

66. Depend

67. Arid

68. Secret meeting

29. Inadequacy

31. Annul

33. Indian instrument

34. Frosts

36. Humdinger

37. Leer at

38. Legumes

42. Weird

43. Precious stone

45. Pantry

47. Aviator

48. Jeweler's glass

49. Utilize

51. Sick

52. One more than seven

54. Partiality

56. Close

57. Covetousness

58. Air force heroes

59. Lease

62. Utilize

CLOSING DATE: 11 April 2016

MARCH CROSSWORD WINNERS ARE:

Steven Swallow, Jane Abramson MCICM and Rabecca Gordon.

For the chance of winning £20, forward your completed solution to:

Art Editor, Andrew Morris, Chartered Institute of Credit Management,

The Water Mill, Station Road, South Luffenham, OAKHAM, LE15 8NB.

WE WANT YOUR

BRANCH NEWS!

TO INCLUDE YOUR BRANCH REPORTS IN THE MAY

ISSUE OF CM, PLEASE SUBMIT YOUR COPY VIA EMAIL

TO BRANCHES@CICM.COM

The recognised standard in credit management

www.cicm.com April 2016 63


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