April 2016 Credit Management magazine




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CM<br />


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www.cicm.com<br />


4 Editor’s column<br />

6 News - Feature special<br />

16 CICMQ News<br />

26 Freeths Legal Matters<br />

36 International Trade<br />

40 HR Matters<br />

48 New members<br />

52 Forthcoming Events<br />

54 Branch News<br />

59 Cr£ditWho? directory<br />

63 Crossword<br />



David Kerr takes a look at the latest news<br />

from the world of insolvency.<br />

12 OPINION<br />

Philip King urges members to vote for the .<br />

CICM Advisory Council.<br />


Feature special<br />

The death of the long lunch…according .<br />

to David Andrews.<br />


Front cover feature<br />

In or out? should we remain or leave the .<br />

European Union. The jury is still out.<br />


Feature special<br />

Alan Harries reviews changes in the .<br />

language and tone of dealings between .<br />

collections agencies and individuals in .<br />

debt in Australia.<br />


24 BENCH PRESS<br />

Amir Ali’s regular update from the world of<br />

civil court enforcement.<br />


The CICM’s legal partner Freeths provides<br />

legal advice for CICM members and their<br />

employees.<br />


Feature special<br />

We ask Stephen Lewis FCICM: How do I<br />

choose a commercial debt collector?<br />

30 AND THE WINNER IS...<br />

In the wake of the CICM British <strong>Credit</strong><br />

Awards, Steve Richardson talks about his<br />

satisfaction in Biffa’s win using Alloc8.<br />


A Supreme Court judgment in a recent .<br />

case affecting motorists and credit .<br />

managers has wider implications for .<br />

contract law. Peter Walker explains.<br />

35 TRADE TALK<br />

Lesley Batchelor OBE considers the<br />

challenges faced by small businesses<br />

conducting international trade.<br />


Jason Braidwood FCICM(Grad) analyses .<br />

the latest monthly business-to-business .<br />

payment performance statistics.<br />


<strong>Credit</strong> <strong>Management</strong> takes a look at the<br />

most useful business apps for tablets<br />

and the most popular games for passing<br />

the time.<br />

<br />

46 EDUCATION<br />

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management roles by investing in<br />

Level 5 Diploma in <strong>Credit</strong> <strong>Management</strong> .<br />

MCICM(Grad) studies<br />

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Stephen Baister FCICM<br />


Philip King FCICM CdipAF MBA<br />


Bryony Pettifor FCICM(Grad) - Chair<br />

David Thornley FCICM<br />

Gerard Barron FCICM<br />

Laurie Beagle FCICM – Vice Chair<br />

Larry Coltman FCICM – Treasurer<br />

Victoria Herd FCICM<br />


Bryony Pettifor FCICM(Grad) – Chair<br />

Carole Morgan FCICM<br />

Catherine Bradford MCICM (Acting)<br />

Charlie Robertson FCICM<br />

Chris Sanders FCICM<br />

David Thornley FCICM<br />

Edward Judge MCICM<br />

Eleimon Gonis MCICM<br />

Gerard Barron FCICM<br />

Glen Bullivant FCICM<br />

Jacky Cooper FCICM<br />

Larry Coltman FCICM – Treasurer<br />

Laurie Beagle FCICM – Vice Chair<br />

Neil Jinks FCICM<br />

Paul Woodward MCICM(Grad)<br />

Peter Powell MCICM (Acting)<br />

Peter Whitmore FCICM<br />

Richard Seadon FCICM<br />

Salima Paul FCICM<br />

Sharon Adams MCICM(Grad)<br />

Sue Chapple FCICM<br />

Victoria Herd FCICM<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 3


CM<br />



the<br />

Editor’s<br />

column<br />



I<br />

can hardly contain myself regarding the<br />

in/out, shake it all about EU referendum.<br />

Three months still to go, and I’m already<br />

bored. I’m not sure I can summon<br />

the strength to shout at the television<br />

(even though the BBC has found in Chris<br />

Mason an even more irritating political<br />

commentator than Nick Robinson; Auntie<br />

appears to have exchanged an excitable<br />

schoolboy for an excitable puppy.)<br />

Aside from the politicians and<br />

journalists, I don’t know of anyone among<br />

my peer group who is either engaged by<br />

the debate, or knows which way to vote.<br />

Information that is presented as ‘fact’<br />

by both sides is dubious at best, and<br />

despite calls for a focus on the positives of<br />

staying in, the arguments have inevitably<br />

descended into scaremongering about the<br />

dangers of being a bit-part player on the<br />

fringes.<br />

I know that the decision is important,<br />

but I can’t drag myself away from a feeling<br />

of complete apathy. The debate, we are<br />

told, should not be about personalities, but<br />

that is precisely what is has become: Boris<br />

versus Dave. The discussions, similarly,<br />

should not be about immigration, but that<br />

is the only area of debate that arouses any<br />

real passion. We should focus, I am told,<br />

on the business risk, and the damage it<br />

will do to our economy. By leaving, we risk<br />

throwing it all away.<br />

Really? While I so want to make the<br />

‘right’ decision, I am torn. I don’t believe the<br />

doomsayers who warn that we will be less<br />

secure by leaving the EU, or that it will take<br />

ten years to renegotiate our various trading<br />

agreements with other EU partners. If<br />

you have a product or service that other<br />

people want to buy, they will find a way<br />

of buying it. And I don’t believe for one<br />

minute that being part of the EU has<br />

given us a level playing field: have we all<br />

forgotten the French farmers burning our<br />

lambs?<br />

And this is what worries me the most: I<br />

fear that many will end up basing their final<br />

decision more on jingoism than informed<br />

thinking, because the truth is that no-one<br />

can possibly say what the world will look<br />

like if we leave, or stay as part of the<br />

union. Given that I am not European, and<br />

struggle with the concept of even being<br />

‘British’, I have a feeling I know where my<br />

vote may ultimately be heading, but it’s not<br />

too late for somebody to change my mind.<br />


Publisher<br />

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Email: editorial@cicm.com<br />

Website: www.cicm.com<br />

CMM: www.creditmanagement.org.uk<br />

Managing Editor<br />

Sean Feast<br />

Deputy Editor<br />

Alex Simmons<br />

Art Editor<br />

Andrew Morris<br />

Telephone: 01780 722910<br />

Email: andrew.morris@cicm.com<br />

Editorial Team<br />

Imogen Hart, Tom Berger, Iona Yadallee<br />

Advertising<br />

Anthony Cave<br />

Telephone: 0203 603 7934<br />

Email: anthony.cave@cabbell.co.uk<br />

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Overseas: £110 per annum<br />

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<strong>Credit</strong> <strong>Management</strong> is distributed to the entire UK and international CICM<br />

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Reproduction in whole or part is forbidden without specific permission. Opinions expressed in this<br />

<strong>magazine</strong> do not, unless stated, reflect those of the Chartered Institute of <strong>Credit</strong> <strong>Management</strong>. The Editor<br />

reserves the right to abbreviate letters if necessary. The Institute is registered as a charity. The mark ‘<strong>Credit</strong><br />

<strong>Management</strong>’ is a registered trade mark of the Chartered Institute of <strong>Credit</strong> <strong>Management</strong>.<br />

4 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

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CMNEWS<br />

A<br />

round-up<br />

of news stories<br />

from the world<br />

of consumer and<br />

commercial<br />

credit.<br />




THE number of overdue payments<br />

experienced by UK businesses<br />

reached a two-year high in the final<br />

quarter of 2015, with increases<br />

reported in 14 out of 17 major industry<br />

sectors, according to a new report from<br />

Euler Hermes, the trade credit insurer.<br />

The Euler Hermes Quarterly Overdue<br />

Payments Report analyses 17 major<br />

industry sectors for reported debtor<br />

payment incidents, which it receives daily<br />

from the 250,000 UK businesses it insures.<br />

These include any incidents of companies<br />

not being paid for goods and services on<br />

time, such as late or delayed payments,<br />

default, insolvency, county court judgments,<br />

or credit insurance claims.<br />

Firms reporting delayed debtor<br />

payments rose by 12 percent from October<br />

to December 2015 compared to the third<br />

quarter of 2015; the highest level for<br />

eight consecutive quarters. According<br />

to the findings, one in six (17 percent)<br />

companies reported having difficulty in<br />

making payments on time last year, up from<br />

10 percent in 2014. The average number<br />

of seasonally adjusted overdue payment<br />

incidents reported per quarter fell by 11<br />

percent year-on-year in 2014 versus 2013,<br />

before increasing by eight percent in 2015.<br />

“Business continues to drive the growth<br />

and export agenda, but the increase in<br />

financial stress across much of UK plc<br />

illustrates that still more needs to be done<br />

to stop the domino effect of late payments,”<br />

says Valerio Perinelli, CEO of Euler Hermes<br />

UK.<br />

Construction companies registered more<br />

payment delays than any other single UK<br />

sector last year, accounting for 31 percent<br />

of all payment incidents reported. Overdue<br />

payments are not particularly unusual in<br />

a sector where disputes are often partly<br />

to blame for delays. However, the sector<br />

suffered a 27 percent year-on-year rise in the<br />

number of overdue payments incidents in<br />

2015, as some firms toiled with low-margin<br />

contracts secured during the last recession.<br />

Payments delays surged in the final<br />

quarter of last year and were up 12 percent<br />

compared with July to September.<br />

The research found that the most<br />

impacted sub-sectors were general<br />

contractors, civil engineering providers and<br />

installers of wiring and fittings - with the latter<br />

suffering disproportionately due to large<br />

projects running over budget.<br />

“The growth in December’s output<br />

signalled a positive end to the year for UK<br />

construction, but some companies in the<br />

sector continue to grapple with the issue of<br />

low-margin legacy contracts, rising capital<br />

pressures and an increasing skills gap – all<br />

putting businesses and payment terms under<br />

pressure,” says Dirk Kotze, Head of Risk<br />

Underwriting at Euler Hermes UK.<br />

Meanwhile, the UK automotive and<br />

electronics sectors offered some cheer as<br />

reported payment issues fell by 12 percent<br />

and 15 percent year-on-year, respectively.<br />

However, there were significant increases<br />

across the metal and chemicals industries as<br />

they struggled to cope with falling European<br />

demand and the China slowdown: 2015<br />

payment issues were up 28 percent and 13<br />

percent respectively compared to 2014.<br />

“While some UK industry sectors have seen<br />

reductions in overdue payment incidents,<br />

insolvencies are set to rise five per cent this<br />

year and average day sales outstanding<br />

(DSO) is expected to edge up to 56 days,”<br />

Dirk adds. “The start to <strong>2016</strong> has seen<br />

increased volatility, so companies need to<br />

remain vigilant.” eulerhermes.co.uk<br />

6 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management




UK companies are predicted to invest<br />

less this year than in previous years,<br />

threatening the Chancellor’s plans to<br />

rebalance the budget by 2020, according<br />

to the latest Economic Forecast from<br />

the Institute of Chartered Accountants in<br />

England and Wales (ICAEW).<br />

Fragile business confidence means<br />

investment growth is expected to fall from<br />

6.4 percent in 2015 to 5.2 percent this<br />

year, despite strong financial positions,<br />

adding another ingredient to the cocktail<br />

of risks for George Osborne who wants<br />

to move the UK away from domestic<br />

consumption and credit.<br />

The ICAEW is downgrading its<br />

economic forecast from 2.2 percent in<br />

2015 to 2.0 percent this year, due to<br />

declining business confidence, volatile<br />

global financial markets and a fall in<br />

capital spending growth.<br />

Businesses have weaker motivations<br />

to invest due to their growing uncertainty<br />

on the economy. Both the forthcoming<br />

referendum on the UK’s membership of the<br />

EU and the recent turbulence in financial<br />

markets have contributed to the uncertain<br />

outlook.<br />

After a hiatus in summer 2015, the<br />

labour market is showing strong job<br />

creation. ICAEW expects employment<br />

growth to slow, but the unemployment<br />

rate is forecast to fall further to 5.0 percent<br />

in <strong>2016</strong>.<br />

Pay growth also appears to have<br />

plateaued. The introduction of the National<br />

Living Wage will offer some support for<br />

those on low incomes, but more broadly<br />

the ICAEW expects earnings to grow<br />

by 2.8 percent in <strong>2016</strong>, at a similar pace<br />

to last year.<br />

Exporters will benefit from the recent<br />

depreciation of the pound and an improved<br />

performance in US and European markets.<br />

But growth is skewed by concerns about<br />

China and emerging markets.<br />

Michael Izza, ICAEW Chief Executive,<br />

says the economy has been too reliant<br />

on the mini-consumer boom: “The<br />

boost to spending power enjoyed by<br />

consumers last year will steadily fade as<br />

inflation gradually picks up, while faltering<br />

confidence means that growth in business<br />

investment is also likely to cool.<br />

“George Osborne will be forced to<br />

adjust his borrowing targets, cut spending<br />

further or raise taxes to fix the nation’s<br />

finances. It is evidently becoming a three-<br />

Parliament problem.”<br />

icaew.com<br />


AFTER 14 years at 1st <strong>Credit</strong>, co-founder<br />

and Business Development Director Charles<br />

Holland has decided to retire. He will continue<br />

to work with the business on a part-time<br />

consultancy basis for specific projects.<br />

Eddie Nott, CEO of 1st <strong>Credit</strong>, said that<br />

Charles has had a profound impact on the<br />

business: “Well known in the industry, he<br />

will be greatly missed. We are delighted<br />

that he has agreed to help us in a parttime<br />

consultancy capacity as he starts his<br />

retirement.” In other news, Chief Financial<br />

Officer Simon Dighton has also decided to<br />

leave and will be replaced by Bruce McLaren,<br />

who will retain his responsibilities as Chief<br />

Investment Officer. Client Relationship<br />

Director Ian Davies, who joined 1st <strong>Credit</strong> in<br />

2003, has been promoted to the role of Sales<br />

Director and will assume responsibility for the<br />

company’s client relationships. 1stcredit.com<br />


STUDYING for CICM qualifications means<br />

you are eligible to apply for an NUS Extra<br />

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

month) from the date of purchase. The card<br />

is also available for two or three years. You<br />

can apply for a card if you are studying at a<br />

teaching centre, virtual classroom or via one<br />

of the home study routes and registered with<br />

the CICM. Visit nus.org.uk and register online.<br />


Congratulations to Jodie Foster ACICM,<br />

winner of the CICM Membership Survey prize<br />

draw. The princely sum of £250 is on its way<br />

to you to spend wisely.<br />



WHAT has been described as the first ever<br />

financial services Vulnerability Taskforce<br />

has published a report outlining best<br />

practice recommendations for the industry<br />

as it aims to improve the experiences and<br />

outcomes of customers with challenging<br />

personal circumstances.<br />

Ensuring that customers who are<br />

vulnerable are treated not only fairly but<br />

also with empathy and sensitivity to their<br />

circumstances is a growing priority. The<br />

Taskforce, which brings the financial<br />

services industry together with charities<br />

and consumer groups, has outlined steps<br />

designed to build on the work already<br />

undertaken by many institutions.<br />

Chief Executive of the Money Advice<br />

Trust, Joanna Elson OBE, who chaired the<br />

Taskforce, says this issue has never been<br />

higher on the agenda:<br />

“This report, which builds on and<br />

amplifies the Financial Conduct Authority’s<br />

Occasional Paper on vulnerability last<br />

year, represents a significant step<br />

forward in improving the experience of all<br />

customers, no matter what their personal<br />

circumstances.<br />

“The real test of the Taskforce’s work,<br />

of course, will be whether customers<br />

who are vulnerable begin to experience<br />

improvements in the everyday service<br />

they receive – whether they are accessing<br />

a current account, managing a loan or<br />

making any other interaction with financial<br />

service providers of all kinds. I have every<br />

confidence that firms will rise to this<br />

challenge, and that real results on the<br />

ground will follow.”<br />

moneyadvicetrust.org<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 7




Sean Feast reports on new figures from the <strong>Credit</strong> Services Association’s<br />

Data Gathering Initiative (DGI) into commercial debt.<br />

WHILE the consumer collections<br />

industry continues to grapple<br />

with the needs of a new<br />

regulator, and confusion<br />

regarding ‘regulated’ and ‘unregulated’<br />

debt (see <strong>Credit</strong> <strong>Management</strong> January/<br />

February issue), those specialising in<br />

business-to-business collections continue<br />

to do what they do best: collecting the<br />

cash.<br />

That said, the value of debt collected<br />

in the third quarter of 2015 actually fell<br />

slightly on the previous quarter, down<br />

from £85,881,251 to £76,441,731 – a fall<br />

of c11 percent. This is a considerable<br />

increase, however, on the corresponding<br />

period in 2014 (£67,512,660), according<br />

to new figures released exclusively to<br />

<strong>Credit</strong> <strong>Management</strong> by the <strong>Credit</strong> Services<br />

Association (CSA).<br />

Interestingly, the fall in the amount<br />

collected corresponds, to a modest<br />

degree, to a fall in the value held which in<br />

the third quarter stood at £796,443,332,<br />

a slight drop on the previous quarter<br />

(£829,533, 875). This is some way short<br />

of its peak in the second quarter of 2014,<br />

however, where the value held by members<br />

was £1,075,620,630.<br />

Perhaps confusingly, while the value<br />

of debt held has fallen, and the value<br />

of money collected is also in decline,<br />

the number (i.e volume) of debts held<br />

actually rose from Q2 to Q3 from 397,920<br />

to 429,293 – an increase of almost eight<br />

percent and the highest figure for 12<br />

months. This puts the average balance of<br />

each debt passed to a CSA member for<br />

collection at £1,855.24.<br />

On the consumer side, according to<br />

figures published last month, for the first<br />

time since DGI records began the volume<br />

of debt placements held by debt<br />

collection agencies rose from 18,040,160 in<br />

Q2 2015 to 19,686,436 in the third Quarter,<br />

putting Agencies back to a position last<br />

seen at the start of 2015. And while the<br />

value of debt has declined slightly (down<br />

1.8 percent to £26.5 billion from Q2 and<br />

10.2 percent down on the same period in<br />

2014), the better news is that DCAs have<br />

continued to collect more.<br />

For the fourth quarter in succession,<br />

collections values have grown, up 10.7<br />

percent on Q2 2015 from £468.7 million<br />

to £518.7 million. Put another way, this<br />

is now a full 12 months of consistent<br />

collections growth from the DCA sector<br />

and a staggering 26 percent increase since<br />

Q3 2014.<br />

This is a considerable increase,<br />

however, on the corresponding<br />

period in 2014 (£67,512,660),<br />

according to new figures released<br />

exclusively to <strong>Credit</strong> <strong>Management</strong><br />

by the <strong>Credit</strong> Services Association<br />

(CSA).<br />

8 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

CSA Data Gathering Initiative (DGI)<br />

Commercial Collections<br />

£ CSA Value of Data debt Gathering collected by CSA Initiative DCA members (DGI)<br />

CSA Data Gathering Initiative (DGI)<br />

Commercial<br />

£85.88M<br />

Collections<br />

Commercial CSA Data Gathering CollectionsInitiative (DGI)<br />

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

£ Commercial Value of debt collected Collections<br />

Commercial<br />

£85.88M<br />

Collections<br />

by CSA DCA members<br />

£ Value of debt collected by CSA DCA members<br />

£ Value of £85.88M debt collected £76.44M by CSA DCA members<br />

£85.88M £76.44M<br />

£85.88M<br />

Q2 2015 Q3 2015<br />

£76.44M<br />

£76.44M<br />

£ Value of debt held by CSA DCA members<br />

Q2 2015 Q3 2015<br />

Q2 2015 Q3 2015<br />

£ Value £829.5m of Q2 debt 2015 held by CSA Q3 DCA 2015 members<br />

Q2 £ 2015 Value of debt £796.4m Q3 held 2015 by CSA DCA members<br />

£829.5m £ Value of debt held by CSA DCA members<br />

£ Value of debt held by CSA DCA members<br />

£829.5m£796.4m<br />

£829.5m £796.4m<br />

£829.5m<br />

£796.4m<br />

£796.4m<br />

Q2 2015 Q3 2015<br />

Volume of debt held by CSA DCA members<br />

Q2 2015 Q3 2015<br />

Q2 2015 Q3 2015<br />

Volume Q2 of debt 2015held by Q3 CSA 2015 DCA members<br />

Q2 2015 Volume of debt Q3 2015 held by CSA<br />


DCA members<br />

BALANCE:<br />

Volume of debt held by CSA £1,573 DCA members<br />

Volume of debt<br />

(Q3 2013)<br />

c429,293<br />

held by CSA DCA members<br />

£1,855 (Q3 2015)<br />

c397,920<br />


£1,573 (Q3 2013)<br />

c429,293 +18% INCREASE<br />

£1,855 (Q3 2015)<br />

c397,920 c429,293 AVERAGE BALANCE:<br />

Q2 2015<br />

Q3 2015 c429,293 £1,573 (Q3 2013)<br />

c397,920c429,293<br />

+18% INCREASE<br />

£1,855 (Q3 2015)<br />

c397,920<br />

Consumer<br />

Q2 2015<br />

Collections<br />

Q3 2015 +18% INCREASE<br />

Volume Q2 of debt 2015held by Q3 CSA 2015 DCA members<br />

Consumer Q2 2015 Collections Q3 2015<br />

Q2 2015 Consumer c19,686,436<br />

Q3 Collections 2015<br />

c18,040,160<br />

Volume<br />

Consumer<br />

of debt held by CSA DCA members<br />

Volume of debt Collections<br />

Consumer Collections<br />

held by CSA DCA members<br />

Volume of c19,686,436<br />

debt held by CSA DCA members<br />

c18,040,160<br />

Volume of debt held by c19,686,436<br />

CSA DCA members<br />

c18,040,160 c19,686,436<br />

c18,040,160 c19,686,436<br />

c18,040,160<br />

Q2 2015 Q3 2015<br />

£ Value of debt collected by CSA DCA members<br />

Q2 2015 Q3 2015<br />

Q2 2015 Q3 2015<br />

£ Value of Q2 debt 2015 collected Q3 by CSA 2015 DCA members<br />

£468.7m<br />

Q2 £ 2015 Value of debt Q3<br />

£518.7m<br />

collected 2015 by CSA DCA members<br />

£ Value of debt collected by CSA DCA members<br />

£ Value of debt collected by CSA DCA members<br />

£468.7m £518.7m<br />

£468.7m £518.7m<br />

£468.7m £518.7m<br />

£468.7m £518.7m<br />

Q2 2015 Q3 2015<br />

Source: CSA Data Gathering Initiative<br />

Q2 2015 Q3 2015<br />

Q2 2015 Q3 2015<br />

Source: CSA Q2 Data 2015 Gathering Initiative<br />

Q3 2015<br />

Q2 2015 Q3 2015<br />

Source: CSA Data Gathering Initiative<br />

Source: CSA Data Gathering Initiative<br />

Source: CSA Data Gathering Initiative<br />


£1,573 AVERAGE (Q3 BALANCE: 2013)<br />

£1,855 £1,573 (Q3 2015) 2013)<br />

£1,855 (Q3 2015)<br />

+18% INCREASE<br />

+18% INCREASE<br />



11%<br />

11% fall 11%<br />

11% fall 11% fall fall fall<br />

4%<br />

fall 4% 4%<br />

fall 4% 4%<br />

fall<br />

fall fall<br />

8%<br />

rise 8% 8%<br />

rise 8% 8%<br />

rise<br />

rise rise<br />

9%<br />

rise 9% 9%<br />

rise 9% 9%<br />

rise<br />

rise rise<br />

11%<br />

rise 11% 11%<br />

rise 11% 11%<br />

rise<br />

rise rise<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 9



DEBT <strong>Management</strong> Company PDHL<br />

Ltd has been refused authorisation by<br />

the Financial Conduct Authority (FCA), a<br />

decision that has sent shockwaves through<br />

the DMC and collections communities. The<br />

announcement follows legal action taken by<br />

PDHL challenging the FCA’s decision that has<br />

been subsequently withdrawn. According to<br />

the regulator, up to 16,000 customers will be<br />

affected.<br />

President of the CSA, Leigh Berkley, says<br />

agencies should be aware that customers<br />

may have already been contacted by a new<br />

debt management company (DMC) as some<br />

contact detail lists have been sold by firms<br />

looking to exit the market, rather than sell<br />

their portfolios.<br />

“Members should also be aware that<br />

PDHL and other refused DMCs may still<br />

be receiving money from customers under<br />

DMPs and the FCA expects all firms that are<br />

no longer authorised, to ensure funds are<br />

correctly applied as part of an orderly winding<br />

down of their activities. Protection of client<br />

funds is a high priority for the FCA.”<br />

The CSA will be examining the Court decisions<br />

made during the legal action pursued, but now<br />

withdrawn by PDHL, but details emerging already<br />

indicate that precedents have been set around<br />

the ability to continue to trade under an Interim<br />

Permission in the event of a decision not to grant<br />

authorisation.<br />

The association has suggested that other DMCs<br />

may be refused authorisation or withdraw their<br />

applications.<br />

fca.org.uk<br />



THE Chartered Institute of <strong>Credit</strong><br />

<strong>Management</strong> (CICM) has signed an<br />

agreement with Begbies Traynor, one of<br />

the UK’s leading Corporate Rescue and<br />

Recovery practices, to become a new<br />

corporate partner.<br />

Begbies Traynor handles more than 1000<br />

corporate recovery cases per year, operating<br />

from a network of more than 30 UK offices,<br />

with clients ranging from SMEs to quoted<br />

companies and global banks.<br />

Mathew Headland, the CICM national<br />

relationship manager at Begbies Traynor<br />

says the firm already has a close relationship<br />

with members: “We understand the key<br />

role credit managers play in the ongoing<br />

financial health of their organisations. We<br />

also understand the pressures that many<br />

face and have developed a creditor services<br />

offering to support their aims,” he says.<br />

“Whether this is utilised as a basic<br />

free consultation by phone, or a full suite<br />

of services to cover all claims in any<br />

insolvency, we can work with members<br />

to provide a tailored solution,” he adds.<br />

“Begbies Traynor is proud to be a partner of<br />

the CICM and supporting its members.”<br />

For information, contact Mathew<br />

Headland on 07711 898525 or Mathew.<br />

Headland@begbies-traynor.com.<br />


MAS EXIT<br />

THE Money Advice Service, set up by<br />

Government to provide people with ‘financial<br />

education’, is to be scrapped less than<br />

six years after its inception. The service is<br />

considered not to have had enough uptake<br />

from the general public despite investing<br />

more than £100 million in developing and<br />

promoting its website. It will be replaced by<br />

a smaller body providing help for those in<br />

financial difficulty. moneyadviceservice.org.uk<br />


THE Payment Systems Regulator (PSR)<br />

is seeking feedback from CICM members<br />

following publication of the provisional<br />

findings of its market review into the<br />

ownership and competitiveness of the<br />

infrastructure that supports the payments<br />

systems Bacs, Faster Payments System<br />

(FPS) and LINK.<br />

It fears that common ownership by the<br />

banks of VocaLink, the single infrastructure<br />

provider that they rely on to process<br />

payments, is having a negative impact on<br />

innovation and competition in the industry.<br />

PSR is proposing that these banks sell part<br />

of their stakes in VocaLink to open the market<br />

and allow for more effective competition and<br />

innovation. In the UK, VocaLink processes<br />

IN news destined to raise more than a few<br />

eyebrows, The Allied group of companies<br />

comprising Allied Global, Alliance<br />

iCommunications, and Neptune Innovations,<br />

has changed its operating name to Bill<br />

Gosling Outsourcing.<br />

The firm has confirmed that the<br />

AND FINALLY...<br />

over 90 percent of salaries, more than 70<br />

percent of household bills and almost all<br />

state benefits. Nearly every business and<br />

person in the UK uses its technology and last<br />

year the company processed over 11 billion<br />

transactions with a value of £6 trillion.<br />

Hannah Nixon, Managing Director,<br />

Payment Systems Regulator, says now is the<br />

time to ask whether or not it is operating best<br />

practice: “The evidence we have gathered<br />

shows that common ownership is hampering<br />

competition and the speed of innovation in<br />

the market.<br />

“There needs to be a fundamental change<br />

in the industry to encourage new entrants to<br />

compete on service, price and innovation in<br />

an open and transparent way.” psr.org.uk<br />

name Allied International <strong>Credit</strong> (AIC) will<br />

continue as the brand for its Third Party<br />

Collection activity, and its bonds, licenses,<br />

and authorisations will similarly remain<br />

unchanged. CEO David Rae promises to<br />

share more of the Bill Gosling story in the<br />

near future. Should be interesting.<br />


This month's briefing includes Legal<br />

Proceedings and Insolvency review,<br />

details of the recent changes to<br />

the CICM Accounting Principles<br />

qualification, Legal Partner, Freeths,<br />

with an overview of penalty clauses<br />

in contracts and the latest Thinking<br />

Blog from Corporate Partner,<br />

Experian.<br />

10 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management




EVERY IP has a bond, like some sort of<br />

secret agent hiding in the background<br />

ready to step in and rescue the situation<br />

when things go seriously awry. In this case,<br />

a financial instrument designed to protect<br />

creditors, primarily, if the IP is found to have<br />

dishonestly or fraudulently removed money<br />

from an insolvency estate. But does it work,<br />

and do creditors benefit?<br />

The requirement is a statutory one,<br />

introduced in the ’86 Insolvency Act, and is<br />

regulated by the Recognised Professional<br />

Bodies (RPBs). IPs take out a general<br />

enabling bond annually, without which<br />

they cannot take appointments, and this<br />

is lodged with the regulator. Monthly, they<br />

then provide details of the cover required by<br />

making returns setting out case names and<br />

asset values etc. There is a maximum cover<br />

of £5m per case.<br />

So, what could possibly go wrong? How<br />

could creditors ever lose out? There are<br />

notable exceptions (not least where one<br />

successor practice has paid substantial<br />

funds to creditors), but how is it that in<br />

30 years since its inception there have<br />

been several claims, and yet in too many<br />

instances relatively little paid to creditors in<br />

those cases.<br />

Claims are usually initiated by a<br />

successor IP. When an IP is found to have<br />

acted dishonestly, his cases will usually be<br />

transferred to someone who can take them<br />

over and investigate what went wrong,<br />

claiming under the individual case bonds<br />

where appropriate, and if necessary under<br />

the general bond which provides additional<br />

cover (up to £250,000). The bond provider<br />

(an insurer) will appoint loss adjusters<br />

and eventually decide what to pay. Their<br />

obligation includes paying the reasonable<br />

costs incurred by the claimant. But the<br />

claims process seems to be a long drawn<br />

out one, with strong resistance (perhaps<br />

understandably so) to both the principal<br />

claim and to agreement on costs.<br />

But what if those costs exceed the value<br />

of the claim? What if the bond value is<br />

inadequate? What if the misappropriation<br />

was by a person other than the IP (eg<br />

someone else in the firm, but not the<br />

licensed/bonded practitioner)? What if the<br />

IP hadn't paid the premiums? How is the<br />

successor remunerated for investigation<br />

work on cases where no claim arises?<br />

These problems have arisen, and have<br />

caused the Government's Insolvency<br />

Service to review the present bonding<br />

regime; they contribute to a sense shared<br />

by many that the system isn’t operating<br />

as intended – is it fit for purpose? There<br />

is likely to be a consultation on this in the<br />

near future, so if you have experience of<br />

cases involving bond claims and/or have<br />

an interest in this subject then look out for<br />

that. CICM’s Technical Committee will no<br />

doubt respond on behalf of members when<br />

the time comes, but will be better able to<br />

do so with member input.<br />

Solutions? Firstly, non-payment of<br />

premiums must not be allowed to invalidate<br />

a bond – at least, not retrospectively. If a<br />

bond provider extends credit to an IP, then<br />

they should use usual commercial recovery<br />

mechanisms to pursue their debts.<br />

A bond is a bond, and cannot be subject<br />

to payment conditions beyond the control<br />

of those who rely on it.<br />

Secondly, and most importantly, the<br />

question of costs has to be addressed.<br />

Some advocate extending the scope of<br />

the bond to include costs incurred across<br />

a portfolio of successor cases; maybe also<br />

increasing cover to better cater for the<br />

sometimes necessary high costs involved<br />

in proving fraud. Whether or not that is<br />

changed, there is certainly an issue around<br />

the extent of cover, as the amount of the<br />

bond is based on the value of the assets<br />

in the IP’s hands, without proper provision<br />

for even reasonable costs on top of that.<br />

However, whilst that might be possible at<br />

a higher premium cost (most likely to be<br />

met ultimately by creditors), the key issue is<br />

controlling costs overall so that part of the<br />

pay-out reaches creditors more often than<br />

not.<br />

Where the estate is replenished by the<br />

bond, it ought not to be the case that all<br />

those funds are eaten up by the successor's<br />

costs. Some of these adjustments are<br />

within the grasp of the parties involved –<br />

regulators, successor practitioners, bond<br />

providers and the Insolvency Service (which<br />

has produced an excellent paper on the<br />

subject and is keen to act). Legislation is an<br />

option. There will be change. The debate is<br />

what form exactly that will take, and when.<br />

Successor practitioners play a key role in<br />

supporting RPBs to fulfil their obligations as<br />

beneficiaries under the current scheme, not<br />

least in carrying out detailed investigations<br />

that they are best placed to undertake as<br />

office holders. But we need to find a better<br />

balance between the interests of the parties<br />

involved. <strong>Credit</strong>ors will have their say – so<br />

make the most of the opportunity when it<br />

comes, for the purpose of the bond scheme<br />

(an objective sometimes seemingly lost<br />

in the melee) is to protect creditors from<br />

potentially significant (albeit relatively rare)<br />

fraud and dishonesty.<br />

David Kerr MCICM is the Chief Executive of<br />

the Insolvency Practitioners Association (IPA).<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong><br />




Philip King urges members to vote for the new CICM Advisory<br />

Council as nominations close.<br />

AS we go to press, there are only a<br />

few days remaining for nominations<br />

for election to the Chartered<br />

Institute of <strong>Credit</strong> <strong>Management</strong>’s<br />

Advisory Council – the first elections<br />

since we gained Chartered status. At the<br />

time of the last elections in 2014 we were<br />

hopeful that we would be granted our Royal<br />

Charter; now more than 12 months later, we<br />

have achieved something truly deserving of<br />

our profession and the people in it.<br />

Stuart Rock, editor-in-chief of the<br />

Business is GREAT campaign recently<br />

wrote that the standards and values of<br />

Chartered Bodies are recognised and<br />

respected by policy-makers, regulators and<br />

businesses around the world. He’s right,<br />

and there couldn’t be a better time to get<br />

involved and have your voice heard. And<br />

that’s why we need your votes.<br />

Over many years, I have belonged to a<br />

number of organisations. For some it has<br />

been an arms-length relationship in which<br />

I’ve occasionally used a service or obtained<br />

advice; for others it’s been a passion and<br />

I’ve become fully immersed. I first served<br />

on what was then the Council of the<br />

Institute of <strong>Credit</strong> <strong>Management</strong> in 1997<br />

having already become a member of the<br />

Institute’s Education Committee and been<br />

involved in teaching, examining and much<br />

more, related to the education scheme.<br />

Like many of us at the time no doubt,<br />

and perhaps some of you today, credit<br />

management was a career I had found, and<br />

loved, and it has subsequently become a<br />

passion. My engagement with the Institute<br />

developed over the years in several ways<br />

and the rest, as they say, is history.<br />

My passion for everything ‘credit’, I am<br />

pleased to say, has never diminished. If<br />

anything, it has increased and the future<br />

By voting, you will have<br />

an opportunity to influence<br />

the strategy, policy and future<br />

direction of the Institute through<br />

those you elect.<br />

and success of the Institute depends<br />

on others with a similar passion getting<br />

involved. Good governance requires all<br />

stakeholders to be represented and heard.<br />



Our Advisory Council is comprised of<br />

members who are themselves elected by<br />

members and who represent your views<br />

at the table. By voting, you will have an<br />

opportunity to influence the strategy,<br />

policy and future direction of the Institute<br />

through those you elect. There are 23<br />

Advisory Council positions representing<br />

our 11 regions and the Trade, Consumer,<br />

International and <strong>Credit</strong> Services sectors.<br />

Voting starts on Monday 25 <strong>April</strong> and,<br />

under the terms of our Charter, is restricted<br />

to full Members and Fellows.<br />

One of the first roles for our new council<br />

members will be to consider our major<br />

research programme that recently closed,<br />

and from which we will be determining<br />

much of our future strategy and direction.<br />

It is an important piece of work, and I will<br />

tell you more about it in due course. But<br />

for now, for those who have stood for<br />

election I thank you, and for those who<br />

also want to see that their voices are<br />

heard, make sure you put your cross in<br />

the box.<br />

12 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

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The death of the long lunch…according to David Andrews.<br />







14 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



I<br />

am detained momentarily by Waterstones’<br />

decision to give Hemingway’s A Moveable<br />

Feast the full ‘rediscovered classic’<br />

marketing treatment.<br />

The book – an autobiographical memoir<br />

of Hemingway’s time in Paris in the years<br />

after the end of the First World War – is a<br />

rich evocation of a battered city getting back<br />

on its feet in the aftermath of the carnage of<br />

the great conflict.<br />

As anyone familiar with Hemingway’s<br />

work will be aware, drinking and the culture<br />

of drinking is deeply ingrained within this<br />

homage to a giddy, exhilarating time in the<br />

Nobel prize-winning writer’s journey.<br />

And, as our alcohol industry begins to<br />

count the cost of the Government’s revised<br />

guidelines for booze consumption and more<br />

normalised habits are resumed following the<br />

gimmicky ‘dry January’ pressures, I wonder<br />

what Hemingway would have made of it all.<br />

At least by rooting himself in various<br />

European capital cities in the 1920s,<br />

Hemingway escaped the worst of the<br />

Prohibition laws that pervaded his US<br />

homeland from 1920 to 1933.<br />

Promoted by the ‘dry’ crusaders, a<br />

movement led by rural Protestants and<br />

social Progressives in the Democratic and<br />

Republican parties, and coordinated by the<br />

vigorously enthusiastic Anti-Saloon League,<br />

and the Woman's Christian Temperance<br />

Union, the banning of hooch in the States<br />

nearly 100 years ago bears worrying<br />

resemblances to the current witch-hunts we<br />

are seeing perpetrated in some quarters over<br />

here.<br />

As someone who participated in a wholly<br />

dry January, I can see (and feel, more to<br />

the point), clear benefits from laying off<br />

completely for a month. But we also need to<br />

be aware of how well-timed government PR<br />

can be used as a stick to beat and shame<br />

the extremities of so called drunken Britain.<br />

Our A&E wards continue to creak and<br />

shudder under the weight of the weekend<br />

binge boozers imbibing like there is no<br />

tomorrow, and the drain on the country’s<br />

finances is severe. So something clearly<br />

has to be done. Around 80 percent of all<br />

weekend admissions to A&E are alcohol<br />

abuse related. That is not why our NHS was<br />

set up. And it is not why we send our young<br />

people through seven years of complex<br />

medical training.<br />

So I am all for radical moves to try to<br />

head anti-social drinking off at the pass. And<br />

I would be more than happy to see outlets<br />

promoting ultra-strong, impossibly cheap<br />

alcohol to be castigated for the part they<br />

play in encouraging the appalling sights we<br />

endure on our streets and in our hospital<br />

wards as a direct result of exposure to dirt<br />

cheap rocket fuel.<br />

But as I see more and more for sale<br />

signs outside local neighbourhood public<br />

houses, and the culture of supermarketdriven<br />

home drinking sales soaring at the<br />

inevitable cost to local pub culture, I kind of<br />

miss the way it used to be.<br />

One of my clients recently opened a new<br />

craft beer brewery, based in a lovely part<br />

of Shropshire and marketing home grown<br />

ale at reasonable prices to reflect modest<br />

margins.<br />

But the Government’s gloomy<br />

announcement at the beginning of the year,<br />

that we are all going to Hell in a hand cart<br />

if we have more than five pints/a bottle<br />

of wine a week, or thereabouts, coupled<br />

with the rigours of dry January had a major<br />

impact on business in this critical first<br />

quarter of the business cycle.<br />

“Not so long ago demand for craft<br />

beer was insatiable. Now beer and wine<br />

suppliers are really feeling the pinch. It is<br />

literally as if the tap has been turned off.<br />

“The timing could not have been worse<br />

and it is particularly difficult for the small<br />

independents,” said my client, the tone of<br />

resignation hanging like a pall of dark cloud<br />

over a Sheffield coal pit.<br />

I think back to my national newspaper<br />

reporter days, hunched over a keyboard,<br />

invariably swathed in reams of dense<br />

tobacco smoke while fellow reporters<br />

twitched and paced around in anticipation<br />

of ‘lunch’ – a euphemism for a three hour<br />

drinking session interspersed with a pork<br />

pie and a packet of crisps, perhaps, but<br />

lunches on the publications where I cut my<br />

journalist teeth were primarily liquid.<br />

As a financial writer I was privileged<br />

in that my invite to lunch usually came<br />

from City-based fund management firms,<br />

bankers and players. Fast buck merchants,<br />

as one of my former colleagues would<br />

have it.<br />

I wonder what the team who came<br />

up with the current abstemious alcohol<br />

guidelines would have made of those<br />

sessions in the late 80s-90s?<br />

Those stories you have read about<br />

drink soaked hacks, slurring and stumbling<br />

back from epic sessions on the sauce,<br />

sometimes ending in clumsily thrown<br />

punches following some perceived insult<br />

or other, are, I can report from my front line<br />

experience, by and large true.<br />

After months of attrition, I decided to<br />

trade the lunches for the sobriety of the<br />

gym. I took up marathon training. It worked,<br />

more or less, as I managed to evade the<br />

worst excesses that characterised that era<br />

of heroic Fleet Street drinking.<br />

I suspect the carnage I witnessed from<br />

the microcosmic realms of the newsrooms<br />

were replicated in other notoriously heavy<br />

drinking industries, such as insurance and,<br />

back in the day at least, private banking.<br />

There were many stories, and I shall<br />

not detain you here with them; although<br />

I can share with you my encounter with<br />

the senior news editor of a major Sunday<br />

newspaper that occurred early on in my<br />

career.<br />

It was a Friday morning, and I was<br />

assigned a ‘Royal number’ – which is<br />

newspaper code for fact checking and<br />

reporting on the financial comings and<br />

goings of a prominent member of the Royal<br />

Family.<br />

The story – if I got it right – was destined<br />

to be the splash (front page) for that<br />

coming Sunday. I just had to qualify various<br />

issues that the newspaper’s legal team was<br />

understandably twitchy about.<br />

Dozens of rapid fire phone calls later, I<br />

wrote the story and filed it. I thought it was<br />

good.<br />

Minutes later, I was aware of a large,<br />

thickset man in his late 30s, hovering<br />

behind my chair, breathing very heavily. And<br />

reeking of alcohol. Ah, Friday afternoon.<br />

Late. Probably just back from the pub.<br />

Correct, Andrews.<br />

‘Did you’, he snarled, waving a wad of<br />

closely printed A4 pages under my nose –<br />

‘write this, this CRAP???’ Now ferocious,<br />

his intonation rising to a bellow, the news<br />

editor then proceeded to go berserk. I<br />

feared he would punch me.<br />

‘What’s the problem,’ I asked. ‘You don’t<br />

rate it…?’<br />

Fortunately for me, my entirely sober<br />

desk editor intervened on my behalf,<br />

claiming my work to be one of the better<br />

financial stories they had encountered for<br />

many a long month.<br />

I was, reader, vindicated. My story led<br />

the Sunday section, and was followed up<br />

by the rest of Fleet Street and TV news<br />

after publication. We were not sued,<br />

and my reputation as a splash-breaking<br />

journalist was beginning. I became pretty<br />

good mates with the legal team on the<br />

newspaper after that initial incident, and,<br />

as I rose through the reporting ranks, the<br />

trickier, hard to break major financial stories<br />

were invariably assigned to me. And while<br />

nothing was perhaps quite as hard as<br />

reporting on the state-of-the world stock<br />

markets, in the immediate hours following<br />

the September 2001 plane strikes on the<br />

World Trade Centre, toughing it out with a<br />

drink-hammered national newspaper editor<br />

will always stay with me.<br />

I wonder how Hemingway would have<br />

dealt with it? I think I can guess…<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 15



NHS Blood & Transport (NHSBT), the first<br />

NHS organisation to achieve CICMQ status<br />

in December 2013, can now boast reaccreditation<br />

after its second application was<br />

approved at the end of 2015.<br />

Its five-strong credit team manages<br />

a sales ledger of £36 million per month<br />

on average, and since 98 percent of its<br />

customers are NHS Trusts, which oversee<br />

the individual hospitals, and are all part of<br />

the Department of Health it is unable to<br />

use the usual credit control tools, such as<br />

withholding its service or halting the supply<br />

of blood.<br />

Therefore its close and well-built<br />

relationships with the various trusts ensure<br />

payments are consistently made to terms,<br />

which, as Maxine Spivey, NHSBT’s Financial<br />

Services Manager, explains is becoming<br />

increasingly difficult:<br />

“With the increasing demands,<br />

particularly financial, made on the NHS today<br />

and with cashflow becoming ever-tighter, it<br />

is therefore even more important to cement<br />

and maintain strong relationships with the<br />

different NHS organisations.<br />

“Which is why it’s a great confidence<br />

boost for the team and I to be reaccredited,<br />

particularly since CICMQ is an<br />

excellent guideline for best practice credit<br />

management.”<br />

Maxine continues by saying in order to<br />

succeed at credit management, the basics<br />

have to be done to a consistently high level:<br />

“Before entering the process, make sure<br />

you are confident in your team’s ability and<br />

that you can thoroughly demonstrate your<br />

processes.<br />

“Don’t try to wing it or be complacent in<br />

the re-accreditation process, after all, once<br />

you have CICMQ status, you don’t want to<br />

lose it,” she concludes.<br />


MANAGING the credit function of one of the<br />

UK’s most diverse companies, which has<br />

over 21,000 employees throughout 200 UK<br />

and 10 international offices, and a turnover<br />

of £2.3 billion, requires quality collections<br />

methods.<br />

And Amey’s 21-strong credit team has<br />

just achieved first-time CICMQ accreditation<br />

– helping to facilitate seven percent growth<br />

year-on-year throughout its public and<br />

regulated services offering in sectors<br />

that include utilities, highways, waste<br />

management, rail, justice solutions, social<br />

housing and facilities management and more.<br />

Operating a wide-ranging but interlinked<br />

series of services does present its<br />

challenges, says Matthew Mitchell, Amey’s<br />

former Head of <strong>Credit</strong>: “Now we have<br />

achieved the accreditation we are aiming to<br />

work even more closely with every part of the<br />

organisation.<br />

“We have proven best-practice<br />

collections methods, demonstrating<br />

our commitment to credit management<br />

excellence and continual improvement,”<br />

he continues, “and it enhances relationship<br />

managements with our clientele.”<br />

Taking the CICMQ workshop approach,<br />

Amey set out a high-level plan with all<br />

the necessary actions required to reach<br />

accreditation, starting the process in<br />

November 2014 and passing its formal<br />

assessment in December 2015.<br />

Matthew is also a proponent of raising<br />

the profile of credit management, within<br />

individual firms, and on a broader scale:<br />

“More CEOs and CFOs should be aware<br />

of CICMQ and the benefits it provides for<br />

organisations, and this goes hand in hand<br />

with senior executives increased knowledge<br />

and understanding of the credit management<br />

function.”<br />


KEEPING and applying high standards<br />

and policies is often a byline for success<br />

within a credit management and collections<br />

department. And it is these key factors<br />

for which Intercity Technology has been<br />

awarded re-accreditation.<br />

Providing specialist communications<br />

equipment to improve productivity, costsavings<br />

and deliver a better security<br />

provision, Intercity Technology’s <strong>Credit</strong><br />

Manager, Carron Beech, initially found<br />

out about CICMQ by reading <strong>Credit</strong><br />

<strong>Management</strong>.<br />

“Achieving the accreditation is very<br />

rewarding,” she explains, “with assessors<br />

there to help and advise you on your<br />

processes and how, as a company, we can<br />

achieve better outcomes through good credit<br />

management policies.”<br />

The credit team at Intercity Technology<br />

has been recently streamlined, with two<br />

credit controllers working alongside Carron:<br />

“Our collections figures have always<br />

remained at our expected high-levels,” she<br />

continues, “which is a testament to the hard<br />

work and quality that we offer.”<br />

Evaluation from a third party is becoming<br />

increasingly sought after: “External<br />

recognition looks good for both current<br />

and prospective customers, business<br />

partners, and senior management,” she<br />

continues. “It shows we are good at what<br />

we do, and that we maintain good standards<br />

and a high level of integrity within our<br />

business.<br />

“The opportunity to re-evaluate our<br />

processes every two years ensures we<br />

are consistently at the top of our game,<br />

using the latest processes to give a clearer<br />

understanding of just how much value we<br />

can add to the business as a whole,” Carron<br />

concludes.<br />

16 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

BREXIT<br />







HAVING wavered once or twice over the last<br />

couple of weeks, I am reasonably confident that<br />

I am a ‘yes’ for staying in a reformed European<br />

Union, now that re-negotiations for a commitment<br />

to reduce the burden of regulation and deepen<br />

the single market have been agreed. It is my<br />

personal view that the UK does not have a large<br />

enough economy or a robust enough defence<br />

structure to stand on our own, so I worry about<br />

us otherwise becoming more reliant on the<br />

US. I believe that there are huge advantages to<br />

being part of a wider European community and<br />

I think that unrestricted freedom of movement is<br />

important to allow multi-national businesses to<br />

operate efficiently and continue to grow.<br />

Debbie Nolan FCICM – Think Tank member<br />

I’M in. Do we really want to sit on the sidelines<br />

and watch while other European leaders make<br />

decisions that affect us? Sacrifice our place in<br />

the single market, walk away and expect the<br />

rest of Europe to allow us to pick and choose<br />

what suits? Despite the bureaucracy that comes<br />

with a lot of European policy (EU data reform,<br />

anyone?) we are still better with a seat at the<br />

table. Much of the media discussion is about<br />

migration – generally confused and entangled<br />

with the issue of refugees fleeing conflict. I hope<br />

the current crisis doesn’t have a disproportionate<br />

impact on a decision that is far bigger than that<br />

one issue. The Centre for Economic Performance<br />

at the London School of Economics recently<br />

described Brexit as ‘a risky gamble’. Its optimistic<br />

prediction was 1.1 percent GDP loss (£18 billion),<br />

pessimistic 3.1 percent GDP (£50 billion).<br />

Military chiefs and business leaders have drawn<br />

attention to the benefits of membership. We are<br />

entwined with Europe on so many levels. I think<br />

dismantling those would be a mistake that would<br />

reduce our influence on the world stage.<br />

Heather Greig Smith –<br />

<strong>Credit</strong> <strong>Management</strong> columnist<br />

I fear that the ease of collection, negotiation and<br />

compromise will be harmed by exiting the EU<br />

and its single market perceptions and legalities.<br />

Many firms dealing in Europe, whether UK based<br />

or elsewhere, consider themselves within a<br />

single market. Notwithstanding the difficulties<br />

encountered by a fluctuating Euro or Pound many<br />

fight their corner from a pricing and quality<br />

point of view as if in one country and therefore<br />

one market place. When contractual, quality,<br />

delivery or pricing disputes occur it has become<br />

a little easier over time to bring both parties to a<br />

compromise situation quickly. Even when faced<br />

with the legal challenges, with the development<br />

of EU law allowing for simplified cross border<br />

actions, enforcement orders and, in the case<br />

of individuals, assets being at risk so long as<br />

domiciled in another EU country, such action or<br />

even the professional threat of same counts for a<br />

much speedier conclusion to any dispute. EU/UK<br />

Late Payment legislation has also done much to<br />

speed payments and/or compensate creditors.<br />

Steve Lewis FCICM -<br />

<strong>Credit</strong> <strong>Management</strong> columnist<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 17

COVER<br />


WHETHER we choose to stay in or vote to leave<br />

the union, one of the big issues that has not<br />

been properly addressed centres around EU<br />

workers. Many of our industries and businesses<br />

across engineering, agriculture, tourism, care,<br />

construction and the hospitality sectors are<br />

dependent on ‘foreign’ workers, and even now<br />

there is a shortage. If we assume that such<br />

workers would be obliged to return home if we<br />

vote to leave, then who will fill their roles? Given<br />

that our own unemployment rate currently sits at<br />

around 1.5 million, the maths simply does not add<br />

up. There is a very real risk that such firms would<br />

be seriously compromised, and may even fail,<br />

and the concern is that customers who rely on EU<br />

exports may be similarly exposed and at risk if<br />

we leave without a quick trade deal being put in<br />

place. As ever it will be down to credit managers<br />

to be on the top of their game, since many firms<br />

that are currently off the radar could very rapidly<br />

be put at risk.<br />

Larry Coltman FCICM<br />

- <strong>Credit</strong> <strong>Management</strong> columnist<br />

IN my view the UK is in a stronger position being<br />

inside the EU as a member rather than on the<br />

outside craning its neck to peer in. Aside from<br />

a feeling I have that Britain has caught a nasty<br />

dose of xenophobia, removal means we will<br />

lose influence and yet still need to harmonise<br />

with Europe – an even tougher job than we have<br />

today. In fact I can’t think of a single good reason<br />

to exit – none of the so-called improvements<br />

stack up. We won’t be any safer, have any more<br />

freedom, nor will we have any improved control<br />

over our borders than we do today. Whilst there<br />

is undoubtedly a good measure of incompetence<br />

in the EU and regulation that oft defies belief, we<br />

are still better off being inside trying to improve<br />

things rather than raging from afar. I actually<br />

think the referendum is a really bad idea because<br />

the majority of voters are simply not well enough<br />

informed. Their cross in the box will be based<br />

on emotion fuelled by the likes of Boris Johnson<br />

going off on one of his rants; images of migrants<br />

overrunning blighty; or the EU telling us that we<br />

can’t use the word ‘sausage’ any more.<br />

Mark Preston MCICM – Think Tank member.<br />

IN the debate about the forthcoming BREXIT<br />

referendum I have not read much about<br />

philosophy behind the ideas of both sides. I<br />

referred to one aspect of this in my book ‘Taking<br />

Your Business into Europe’ published as long<br />

ago as 1991. That aspect concerned the Single<br />

European Act, and I commented (p 151) that<br />

there was also ‘a political dimension’. I quoted<br />

from ‘Zakamarki Historii’ (Crannies of History)<br />

by Aleksander Bregman (1968 Polish Cultural<br />

Association - Polska Fundacja Kulturalna) at p<br />

15. He was writing about what he considered to<br />

be progress in the sphere of Western European<br />

unity, and I translated his words, ’Even if<br />

there have been setbacks in recent years, the<br />

accomplishment has been a fundamental element<br />

of change for the better. There have truly been<br />

many setbacks and frustrations, but there has<br />

been progress, and I conclude that the UK should<br />

remain in the EU.<br />

Peter Walker – <strong>Credit</strong> <strong>Management</strong> columnist<br />

I probably lean towards Brexit but do fear a<br />

period of instability while the economy is<br />

fragile (it is likely to last a few years after the first<br />

rush of euphoria following the result; either way).<br />

The rationale is as follows: the EU is<br />

overly bureaucratic and corrupt; the size<br />

of membership with different agendas and<br />

problems (e.g. contrast Greek / German<br />

economies and impact on Euro & Euro Zone<br />

members) mean it is difficult to make substantial<br />

changes - and definitely not quickly. It also<br />

leads to the ‘one size fits all policy’; and it<br />

encourages inefficiency, e.g. common agricultural<br />

policy, at a time when the world is changing<br />

rapidly and countries/businesses need to react/<br />

adapt quickly. Freedom of movement would be<br />

a good thing apart from impact of foreign policy<br />

and disparity between northern and southern<br />

economies - too much economic migration can<br />

be damaging both socially and economically.<br />

Having said that - a little Britain mentally will be<br />

harmful. I just think we'd get a better balance<br />

out of Europe. Not sure about security issues<br />

but think the status quo remains either way as it<br />

transcends boundaries and we’d still be closely<br />

aligned through NATO. Trouble is there are so<br />

many imponderables. So in summary - here be<br />

dragons!<br />

Richard Houlbrook FCICM – Think Tank member<br />

MY personal view on the EU Referendum is that<br />

I am currently in the ‘no let’s pull out’ camp. I like<br />

to think I understand the arguments being put<br />

forward and it seems to me that the ‘NO’ camp are<br />

making more sense in spite of the ‘Boris’ factor.<br />

Clearly the more ‘mature’ voter like myself is<br />

swayed to the ‘NO’ side from what I have heard.<br />

The whole problem currently is that many people<br />

do not fully understand the issues at hand and<br />

this could make them ‘dangerous floating’ voters<br />

when 23 June comes along!<br />

Tony Whitman FCICM – Think Tank member<br />

18 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

‘‘Aside from a feeling I have that Britain has caught a nasty<br />

dose of xenophobia, removal means we will lose influence<br />

and yet still need to harmonise with Europe – an even<br />

tougher job than we have today’’.<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 19

BREXIT<br />

I am a firm NO, unless anyone can convince<br />

me of a good reason to vote YES, I have not<br />

been convinced to date. To be clear on this I<br />

actually do love ‘Europe’, I just hate the EU. I<br />

am not advocating that Britain leaves ‘Europe.’<br />

The issue that I have is that the EU consists of<br />

28 member counties that are making the rules<br />

and as a member of the EU, we must obey these<br />

rules and regulations which are often made by<br />

people and institutions in Brussels that we, the<br />

voters, cannot hold to account. This is not fair, and<br />

it’s not democratic. In the credit world, I have<br />

experienced several creditor companies trying to<br />

work as one voice during insolvency proceedings<br />

and it just never works, one voice wants one thing<br />

and someone else wants another, it just takes too<br />

long to get a consensus.<br />

I understand that UK vote in the EU parliament<br />

makes up just over nine percent. This means we<br />

are constantly outvoted on issues that matter<br />

to Britain. If we pull out of the EU it will allow<br />

British politicians to create our own laws rather<br />

than being dictated to. The other major issue<br />

is the European Market and Britain does not<br />

need to be a member of the EU to access this<br />

potential customer base. Many nations around<br />

the world have deals with the EU. We were a<br />

highly successful trading nation before joining<br />

the EEC. We were led to believe that by joining<br />

the EU it would be easier to expand our trading<br />

within the member states. This has not been the<br />

case. Instead, the EU has discouraged trade with<br />

red tape and excessive legislation. By Leaving<br />

we could not only trade with the EU on our own<br />

terms, but also with those outside it like China,<br />

the US, India, Australia and Canada.<br />

Nigel Fields MCICM – Think Tank member<br />

I will be voting to leave the EU. In common I<br />

suspect with many entrepreneurs and business<br />

people from all walks of life, I am going to jump at<br />

the chance to finally escape the clutches of<br />

this archaic, money grabbing and invariably<br />

ineffectual ‘union’. Unless you happen to be<br />

a French farmer – living high on the hog of<br />

generous hand-outs of our hard earned for<br />

umpteen years, merci beaucoup – then this<br />

red-tape obsessed, self interested organisation<br />

will I am sure be able to struggle along without<br />

our billions of pounds of Sterling, year in, year<br />

out. It is a nonsense that our trade relations will<br />

be severely affected. If anything, we will be<br />

better off free of these shackles which have been<br />

unquestionably holding us back for lost decades.<br />

The world has moved on and we are in grave<br />

danger of being left behind.<br />

David Andrews – <strong>Credit</strong> <strong>Management</strong> columnist<br />

FIRSTLY I must stress that the views expressed<br />

here are entirely personal, and not those of the<br />

IPA nor representative of Insolvency Practitioners<br />

generally. That said, how might IPs view this<br />

debate? IPs might be tempted to wonder whether<br />

the predicted gloom following a Brexit could<br />

trigger a recession, a role for IPs in clearing<br />

out of some of those zombie companies, and a<br />

healthier basis for moving the economy forward<br />

as a consequence. Firms with cross-border<br />

work, particularly where that involves EU states,<br />

might be dismayed at the prospect of exiting<br />

this market and the knock-on effects that could<br />

have. We don't currently have harmonisation<br />

of insolvency law across the EU, but we do<br />

have mutual recognition of qualifications and<br />

procedures. Would an exit put those in jeopardy,<br />

to the detriment of efficiency in realising assets<br />

for creditors?<br />

David Kerr MCICM –<br />

<strong>Credit</strong> <strong>Management</strong> columnist<br />


TO this day I am still none the wiser and feel<br />

like The Clash’s famous single ‘Should I stay or<br />

should I go? – How can the general public decide<br />

when our current government cabinet members<br />

and other political parties are split down the<br />

middle whether to exit or stay! I don’t feel there<br />

is enough basic information to the general public<br />

on subjects such as, economic consequences and<br />

trading outside the EU? Regulations and law? EU<br />

budget? I think Mr Cameron has been a bit vague<br />

on recent negotiations and agreements he has<br />

made with other EU leaders and it is evident that<br />

other EU leaders definitely need the UK to remain<br />

in the EU since we joined in 1973 but is it better<br />

the devil you know and not spoil 40 years of hard<br />

work? Or is the grass really greener on the other<br />

side? I am still unsure!<br />

Jason Braidwood FCICM(Grad)<br />

– Think Tank member<br />

I am currently undecided. The heart says stay<br />

in as we are better united than alone, however, I<br />

need pure facts – not emotion and at the moment<br />

there is little clarity on either side. All I have<br />

been able to glean is trade stats from the ONS<br />

and I want to know financially what could work<br />

best. I am employed by a French company, so<br />

that is another motivator to vote stay.<br />

Andrew Share MCICM – Think Tank member<br />

20 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

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www.cicm.com <strong>April</strong> <strong>2016</strong> 21

WHAT’S IN A NAME –<br />

THE<br />


VIEW<br />

Our original article sparked interest, literally, on the other side of<br />

the world. Here, Alan Harries of the Institute of Mercantile Agents<br />

reviews changes in the language and tone of dealings between<br />

collections agencies and individuals in debt in Australia.<br />

22 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management


THE CEO of the Australian Institute of<br />

<strong>Credit</strong> <strong>Management</strong>, Nick Pilavidis,<br />

recently asked me to comment on the<br />

emerging trend in the UK away from<br />

the use of the term ‘debtor’ to ‘customer’<br />

and whether there was any similar change<br />

underway in Australia.<br />

Responding to this request caused<br />

me to reflect that many in the Australian<br />

collections industry over recent years<br />

have been confused as to what is the<br />

appropriate contemporary term to use<br />

when referring to the party being followed<br />

up for payment of an outstanding account.<br />

Terms like ‘debtor’ and ‘creditor’ seem<br />

outdated now despite valid origins relating<br />

to how transactions have been<br />

described within accounting conventions.<br />

Accountants still use those terms<br />

but the wide adoption of business<br />

software applications such as MYOB and<br />

Xero has changed how others describe<br />

those transactions. Software developers<br />

keen to simplify terminologies for<br />

persons not trained as bookkeepers to<br />

understand transactions being recorded<br />

made some changes such that we have<br />

seen ‘debtor’ replaced by ‘customer’ and<br />

‘creditor’ replaced by ‘supplier’. Similarly<br />

‘accounts payable’ became ‘pay bills’ whilst<br />

‘receive payments’ replaced ‘accounts<br />

receivable’.<br />


A review of current regulations fails to reveal<br />

any change to descriptors being adopted by<br />

industry regulators.<br />

Interestingly, the ACCC/ASIC Debt<br />

Collection Guideline (ASIC Regulatory Guide<br />

96: Debt collection guideline for collectors<br />

& creditors published 10 July 2015) which is<br />

the most important compliance document<br />

for collectors and creditors alike, in its<br />

Glossary of Terms defines ‘debtor’ as<br />

‘a natural person obligated or allegedly<br />

obligated to pay<br />

a debt…’ but does not include any definition<br />

for either ‘customer’ or ‘consumer’.<br />

Potentially, the introduction of the<br />

Australian Consumer Law in 2010 (the ACL)<br />

presented an opportunity to introduce a<br />

redirection for consistent descriptors to<br />

be used but I discovered its definition of<br />

‘consumer’ within this legislative regime was<br />

not all embracing.<br />

The National Consumer <strong>Credit</strong><br />

Protection Act 2009 includes a definition<br />

for ‘consumer’ as a ‘natural person or a<br />

strata corporation’ but has no definition for<br />

‘customer’. The National <strong>Credit</strong> Code<br />

which is Schedule 1 of that Act defines<br />

‘debtor’ as ‘a person (other than a<br />

guarantor) who is liable to pay for (or to<br />

repay) credit, and includes a prospective<br />

debtor’.<br />


Despite the lack of change within legislation<br />

and regulations impacting on debt<br />

collections, there is nevertheless a trend in<br />

Australia away from using the term ‘debtor’.<br />

Such a trend however is not without<br />

some issue for those in the collections<br />

industry. For example, in moving away from<br />

using the descriptor ‘debtor’ a problem<br />

for contingent collectors acting as an<br />

agent for principal creditors is that the<br />

term ‘customer’ from the collector’s own<br />

perspective refers to the party it is acting<br />

for.<br />

The adoption of the term ‘customer’<br />

within the collector’s operations and records<br />

when dealing with and referring to an<br />

individual or business debtor owing monies<br />

to its principal seems wrong and potentially<br />

creates confusion as to which party is being<br />

referred to.<br />

In a recent UK article (by Sean Feast,<br />

Managing Editor of <strong>Credit</strong> <strong>Management</strong>)<br />

about the trend away from ‘debtor’, an<br />

observation was made that ‘a company<br />

being labelled as a debtor appears to be<br />

viewed as less confrontational than an<br />

individual being identified in the same way’.<br />

This has similar resonance in Australia.<br />

The trend in Australia over recent<br />

years has been away from using ‘debtor’<br />

and instead the term ‘consumer’ rather<br />

than ‘customer’ has increasingly been<br />

adopted whenever collectors and agents<br />

refer to individuals and businesses more<br />

traditionally known to them as debtors.<br />

This trend appears to be driven more by a<br />

change of attitude and expectations rather<br />

than just being a case of semantics.<br />

Some reasons for this change include:<br />

• Banks and other financiers directing the<br />

use of the descriptor for their customers<br />

• The introduction of the National Consumer<br />

<strong>Credit</strong> Protection Act 2009<br />

A similar change has occurred in the US<br />

where collectors now talk about ‘connecting<br />

with consumers to resolve accounts’ rather<br />

than ‘chasing debtors to pay bills’.<br />


Collectors understand their role today is all<br />

about communicating with consumers – this<br />

involves engaging effectively to understand<br />

what they want and need in order to resolve<br />

the specific outstanding debt.<br />

By itself changing the name or<br />

descriptor adopted when referring to<br />

the individual owing the account away<br />

from the traditional ‘debtor’ will count<br />

for little unless the collector’s approach<br />

allows the individual to feel respected and<br />

to maintain dignity in discussions. An<br />

effective approach includes the collector<br />

being aware of the individual’s situation<br />

and offering where appropriate assistance<br />

and genuinely seeking an achievable and<br />

affordable solution for the individual<br />

The continuing challenge for collectors<br />

is how to best engage effectively whilst<br />

meeting the regulatory requirements of<br />

what to say and when to say it and<br />

at the same time avoiding the risk of<br />

misunderstandings which can arise when<br />

the parties to the conversation can’t<br />

see the other’s body language. Another<br />

impediment to establishing effective<br />

engagement is often the strong negative<br />

views some in the community hold about<br />

the collections industry and processes.<br />

More than ever there is a need for<br />

collectors and agents to ensure the right<br />

tone is achieved for conversations so as<br />

to deliver effective outcomes – a change<br />

in the name or descriptor for the party<br />

being contacted to pay a debt or account<br />

to something which the individual sees as<br />

positive and respectful is a good and subtle<br />

step towards developing and maintaining<br />

respectful conversations.<br />

Compliance obligations and<br />

expectations of collectors mean it<br />

is not sufficient to communicate so<br />

as to be understand but increasingly<br />

to communicate in a manner so it is<br />

impossible to be misunderstood! Setting<br />

the right tone in conversations between<br />

collectors and consumers will assist to<br />

avoid unhelpful misunderstandings.<br />

A change in the name or descriptor for<br />

the party being contacted to pay a debt or<br />

account to something which the individual<br />

sees as positive and respectful is a good<br />

and subtle step towards developing and<br />

maintaining respectful conversations.<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 23




Amir Ali argues that the needs of the undefended claims must not<br />

be overlooked in the ongoing structure review.<br />

THE Civil Court Users Association is<br />

pleased by the level of engagement<br />

currently being undertaken by Lord<br />

Justice Briggs as part of his Civil<br />

Courts Structure Review. These changes<br />

will bring significant opportunity and<br />

the CCUA is delighted to be involved.<br />

The Association is committed to doing<br />

everything possible to assist in ensuring<br />

that the best outcome is achieved for all<br />

court users.<br />

A key priority is to ensure that the<br />

needs of undefended claims are not<br />

overlooked. These represent around 95<br />

percent of all money claims. Despite this<br />

high proportion, they are often ignored by<br />

decision makers in preference to the high<br />

profile, high value, time-consuming and<br />

problematic cases that tend to dominate<br />

thinking. However, during the Association’s<br />

recent meeting with Lord Justice Briggs,<br />

it was immediately apparent that he had<br />

full understanding and knowledge of all<br />

aspects, including the less high profile or<br />

glamorous work within the courts.<br />

Central to the CCUA’s concerns is<br />

ensuring that the excellent processes that<br />

already exist for undefended claims, such<br />

as the County Court Bulk Centre (CCBC),<br />

are not removed in preference to a less<br />

successful alternative.<br />

Beyond that, the CCUA has no real<br />

concerns regarding the proposals for an<br />

online court at this stage. Any devil will<br />

be in the detail, of course, and we will no<br />

doubt continue to monitor the situation<br />

as the ideas develop. The idea of a<br />

triage system, with claims assessed and<br />

allocated to a process depending on their<br />

needs, should work successfully if properly<br />

resourced and implemented. Indeed,<br />

this could even be extended further than<br />

is currently being proposed. The value<br />

of a claim has long been considered<br />

a dominant factor in determining its<br />

complexity, but it is not always the most<br />

relevant.<br />

The use of case officers to progress<br />

cases by making non-judicial decisions<br />

also seems a very worthy one which may<br />

well improve the service provided by the<br />

Courts, again providing they are properly<br />

There should be clear and transparent<br />

situations where fixed costs will be applied<br />

where the CPR is not adhered too. This would<br />

further encourage adherence to the spirit of<br />

the rules and allow cases to proceed in a swift<br />

and efficient manner.<br />

trained and resourced.<br />

Whilst the CCUA agrees that<br />

substantial improvements can and<br />

should be made to the Civil Procedure<br />

Rules (and documentation generally) to<br />

assist litigants in person, we remain to<br />

be convinced that removing lawyers from<br />

cases would always be beneficial. Many<br />

parties to litigation will continue to prefer<br />

to be professionally represented for many<br />

different reasons, as is their right. Also, it is<br />

doubtful that every litigant in person will be<br />

able to present a clear and concise case,<br />

however easier the rules and procedures<br />

might become.<br />

There is a thrust in Lord Justice Briggs’<br />

interim report for the further removal of<br />

costs. In the Association’s view, the lack<br />

of any sanctions for non-cooperation of a<br />

party under the CPR remains a very large<br />

problem, both for the opposing party and<br />

the court. This is particularly so in the<br />

small claims track, where a party can fail<br />

to cooperate with the rules in anything<br />

but the most outrageous way, without any<br />

fear of sanction whatsoever. Rather than<br />

expanding this problem, the CCUA instead<br />

calls for a fundamental re-think of the role<br />

of costs in these situations. There should<br />

be clear and transparent situations where<br />

fixed costs will be applied when the CPR<br />

is not adhered too. This would further<br />

encourage adherence to the spirit of the<br />

rules and allow cases to proceed in a swift<br />

and efficient manner.<br />

By far the most exciting area for the<br />

Association is the reform of enforcement,<br />

which is long overdue. The interim report<br />

clearly recognises the need. The CCUA<br />

has already communicated a number of<br />

ideas and has also offered to work with<br />

others to establish a comprehensive<br />

package of suggested reforms.<br />

Interesting times are ahead!<br />

Amir Ali is Chair of The Civil Court Users<br />

Association (CCUA).<br />

24 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

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



EMMA EMERY IS A PARTNER AT FREETHS : emma.emery@freeths.co.uk<br />

The use of mediation to solve commercial disputes is becoming increasingly popular as the<br />

Courts put pressure on parties to avoid litigation. But can parties refuse to negotiate through<br />

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

discuss the issues you need to consider when deciding whether to partake in mediation.<br />

A<br />

recent decision by the Royal<br />

Courts of Justice Senior Courts<br />

Costs Office has demonstrated the<br />

readiness of the Court to impose<br />

costs sanctions when a party to litigation<br />

unreasonably refuses to participate in<br />

mediation.<br />

In Bristow v Princess Alexandra<br />

Hospital NHS trust [2015], the Judge<br />

awarded the costs of detailed assessment<br />

to the Claimant on an indemnity basis<br />

because it was felt that the defendant could<br />

demonstrate no good reason for refusing to<br />

mediate. The Judge had reduced the<br />

costs awarded to the Claimant to 80<br />

percent because of other inconsistencies<br />

within its costs budget. However, the<br />

Judge ordered that this 80 percent should<br />

be recovered from the Defendant on an<br />

indemnity basis, thus with no requirement<br />

NEGATIVE cost implications can be imposed<br />

by the Court regardless of whether it is the<br />

winning or losing party which has refused<br />

to mediate without good reason. The<br />

circumstances in Reid v Buckinghamshire<br />

Healthcare NHS trust [2015] were similar to<br />

Bristow v Princess Alexandra Hospital NHS<br />

for proportionality to the amount originally<br />

at stake.<br />

This decision follows a long running<br />

trend of the Court to penalise parties<br />

which refuse to attempt settlement through<br />

Alternative Dispute Resolution (ADR).<br />

Mediation has become an attractive method<br />

to get the parties together around a table<br />

and achieve a commercially sensible<br />

settlement which suits all involved, thus<br />

avoiding the ever increasing costs of civil<br />

litigation.<br />


MEDIATE?<br />

In Halsey v Milton Keynes General NHS<br />

Trust (2004), the Court identified a list of<br />

principals used to determine whether a<br />

party has been unreasonable in refusing to<br />

mediate.<br />


Trust [2015], the Judge awarding the winning<br />

party its costs on an indemnity basis from the<br />

point at which they unreasonably refused to<br />

mediate.<br />

In Yorkshire Bank Plc and Clydesdale<br />

Bank Asset Finance Ltd v RDM Asset Finance<br />

and J B Coach Sales [2004], the Judge<br />


• The nature of the dispute – is ADR<br />

appropriate in the case at all?<br />

• The merits of the case – does the refusing<br />

party have a much stronger case?<br />

• Other settlement options – have there<br />

been other offers or negotiation around<br />

settlement?<br />

• Costs of mediation – will the expense<br />

of mediation be disproportionate to the<br />

claim?<br />

• Delay – is mediation likely to cause delay?<br />

• Prospects of success – is mediation likely<br />

to be successful?<br />

The Court made it clear that this was not<br />

to be considered as an exhaustive list. It is<br />

however, a guide to the factors which should<br />

be considered when assessing whether to<br />

propose or agree to mediation.<br />

identified the Claimants as the winning<br />

parties but reduced the percentage of costs<br />

recoverable to 50 percent as a result of being<br />

unsuccessful on a number of issues in the<br />

case. However, the Claimant was awarded 15<br />

percent more of their costs as a result of the<br />

Defendants rejection of an offer to mediate.<br />

• An offer by the opposing party to<br />

mediate must be considered extensively.<br />

• It is likely that the Court will order<br />

negative cost implications if a party is<br />

deemed to have refused to mediate<br />

unreasonably.<br />

• It is important to consider suggesting or<br />

agreeing to mediation at an early stage<br />


of a dispute. In Egan v Motor Services<br />

[2007], the Judge emphasised that<br />

mediation should take place before any<br />

litigation is initiated.<br />

• At the conclusion of proceedings,<br />

the onus is on the unsuccessful party<br />

to prove that mediation would have<br />

succeeded.<br />

• The Court cannot force a party to<br />

mediate but may order a stay of<br />

proceedings in order for it to take place.<br />

• Refusing to mediate is a very high risk<br />

option which can have very serious cost<br />

implications when being considered by a<br />

Judge, regardless of whether the party is<br />

successful at trial or not.<br />



26 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



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www.cicm.com <strong>April</strong> <strong>2016</strong> 27



OF MINDS<br />

Our expert this month is Stephen Lewis FCICM.<br />


WHEN our illustrious editor asked<br />

me to write an article on ‘What<br />

to look for when choosing a<br />

commercial debt collection<br />

agency (DCA)’, I did not realise then what<br />

a difficult task it would be. After some<br />

thought I realised that I, as a Commercial<br />

DCA operator, had been looking at the<br />

criteria from my point of view and had to<br />

think hard as to what it is the client actually<br />

wants and needs.<br />

I started looking more closely at ours<br />

and other Commercial DCA websites:<br />

explanations of professionalism, success,<br />

statistics, words of endearment from<br />

existing users, long and detailed instruction<br />

forms accompanied by in-depth, complex<br />

terms and conditions, not forgetting<br />

colourful accreditation from as many<br />

organisations as will fit the page. And, oh<br />

yes, the cost - although I am bound to say<br />

that the actual cost to the client is often<br />

the hardest fact to find, even though it is<br />

doubtless important.<br />

As a DCA there is a danger in becoming<br />

complacent to the success of our collection<br />

rates and long-term client relationships,<br />

as well as our adherence to compliance<br />

and our duties to statutes, CSA Code and,<br />

in our case, becoming authorised and<br />

regulated by FCA. All the things we see<br />

as important are ‘almost’ irrelevant to the<br />

client. Or they are at least a given. What<br />

clients are actually looking for, and the<br />

criteria you should use (and questions to<br />

ask) in choosing a DCA, are as follows:<br />

• Transparency<br />

• Recommendation<br />

• Fees, and especially:<br />

How applied<br />

When applied<br />

Will fees remain as quoted as the case<br />

progresses<br />

• Full explanation and risk if a matter ‘goes<br />

legal’<br />

• Will we get any fees back from the<br />

debtor?<br />

• Do they offer other services (legal, tracing,<br />

training etc).<br />

What is also important is the relationship<br />

between the actual operative dealing<br />

with the collection and the interaction<br />

with the client, be it the receptionist, the<br />

credit controller or the financial managers/<br />

directors. And whilst it is a priority to us<br />

that monies collected are placed in a client<br />

account and that financial probity is a<br />

must, it is often not the highest question<br />

on the list with potential clients. That is<br />

because the client wants an overall feeling<br />

of trust between themselves and the DCA,<br />

established through the personal contact.<br />

This may appear to be an overly<br />

simplistic view of what is required, but<br />

we must appreciate that in our industry<br />

sector up to 70 percent of our client base<br />

(and potential client base) are SMEs. Of<br />

course it would be naive to think that they<br />

or larger and multi-national companies do<br />

not look at all the financial implications of<br />

outsourcing some debt collection, as well<br />

as having regard for accreditations, but<br />

more often than not it still comes down to<br />

simple trust and that most important of<br />

qualities, transparency in all operations. The<br />

DCA becomes an integral part of the client’s<br />

financial decision making.<br />

That said, whilst we may think we are<br />

the most important thing to our client, it is<br />

really often a small part of their operation<br />

generally. Clients are far more concerned<br />

with sales, supply and other matters.<br />

In looking for a DCA, make sure they<br />

understand your industry. Make sure their<br />

reporting procedures are adapted to your<br />

needs, and information supplied when you<br />

want it as opposed to when they want you<br />

to have it.<br />

We must strive to supply success,<br />

honesty, knowledge and professionalism<br />

that match client expectations. Clients do<br />

not always question our compliance or<br />

accreditation, they simply trust us to be<br />

all those things as a given. What we must<br />

never do is let them down.<br />

Stephen Lewis FCICM is Managing<br />

Director – LPL Commercial Services<br />




28 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 29



<br />

In the wake of the CICM British <strong>Credit</strong> Awards, Steve Richardson recounts a long<br />

but fruitful journey to winning ways.<br />

WITH the awards seasons in full<br />

swing, BAFTAs, Grammys, Brits,<br />

Raspberries, Oscars and the<br />

pinnacle of the awards season…<br />

The CICM British <strong>Credit</strong> Awards. This year’s<br />

glittering event at The Brewery, London,<br />

featured an all-star line-up of <strong>Credit</strong><br />

Professionals and their hangers on (aka<br />

Sponsors).<br />

The journey to winning an award can be<br />

a long one and behind the glitz and glamour<br />

of it all, there is a lot of hard work done by a<br />

lot of people. Our journey started six years<br />

ago when I was asked to go and present<br />

the wares of Rimilia and our Cash Allocation<br />

Solution, Alloc8, to Biffa, based in High<br />

Wycombe.<br />

Pulling up outside its offices, I unsaddled<br />

from the horse and unhitched the carriage<br />

with my snake oils in, popped on the top<br />

hat, checked the cravat, applied a top up<br />

on the Brylcream (other hair products are<br />

available) and checked the salesman smile<br />

(see the child catcher in Chitty Chitty Bang<br />

Bang for the full look).<br />

The presentation went well, but we<br />

didn’t get to a deal and Biffa went on to<br />

build an internal solution.<br />

Fast forward four and a bit years later<br />

and we get a visit from Simon Howell,<br />

Head of <strong>Credit</strong> at Biffa Waste Services, to<br />

discuss his ambitious plans and explain<br />

that cash allocation automation was back<br />

on the radar and could I go and present<br />

again to Ruth and Emily at High Wycombe.<br />

Dusting down the suit and replacing<br />

the Brylcream with Brasso (other bald<br />

head rubs are available) I set off for High<br />

Wycombe.<br />

When I met the team, it was great to see<br />

they were already achieving a high level<br />

of efficiency around their cash allocation<br />

process and had made great strides.<br />

However trying to improve functionality<br />

and update its current solution was<br />

proving difficult, as it wanted to move to a<br />

more flexible platform and gain additional<br />

efficiencies and control.<br />

So 18 months ago we started our<br />

implementation of Alloc8 and with a great<br />

partnership, have delivered fantastic results<br />

with a great client. Lynne Mills came on<br />

board in July 2015 as Interim Transaction<br />

Processing Manager and continued to<br />

drive the implementation to deliver a<br />

fantastic set of results, the headline being<br />

an automated match or suggested match<br />

of over 90 percent, that’s 90 percent of<br />

incoming receipts matched to one or many<br />

invoices with no intervention or a one click<br />

match! Unallocated cash has been reduced<br />

significantly, a faster month-end close and<br />

greater visibility of all receipts by the <strong>Credit</strong><br />

Controllers who can see all the payments<br />

via their access viewing rights to Alloc8.<br />

The next thing we know is, Biffa has<br />

been shortlisted as a finalist for the ‘Best<br />

Use of <strong>Credit</strong> Technology’ <strong>2016</strong>. Being a<br />

finalist is great and the category is a tough<br />

one with seven shortlisted companies so<br />

although hopeful, realistically it was going<br />

to be tricky to win. And the winner was<br />

Biffa!<br />

Yes the roof came off as Nick Hewer<br />

announced the winner.<br />

As always the awards highlight the<br />

diversity and professionalism of the <strong>Credit</strong><br />

Community in The UK and is by far and<br />

away one of the most respected and best<br />

organised events.<br />

Here’s to 2017.<br />

Photo <strong>Credit</strong>: Robson Kay<br />

30 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

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The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 31




<br />

Have you been infuriated by a parking penalty notice placed on the windscreen<br />

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

managers has wider implications for contract law. Peter Walker explains.<br />

MANY of us have found parking<br />

tickets on our car windscreens,<br />

and some of these are issued by<br />

private enforcement companies,<br />

where a credit manager has the job of<br />

collecting the money. The judges of the<br />

Supreme Court recently had to rule on the<br />

consequences of the issue of such tickets<br />

as well as related topics. Sometimes such<br />

charges or fines are unjustified.<br />

As an example, I had to deal with<br />

complaints by some church car park<br />

users, who had found parking notices on<br />

their windscreens. I investigated, only to<br />

discover that the occupiers of a building<br />

adjacent to the car park had appointed a<br />

company to patrol it. Any cars supposedly<br />

parked without authority received notices<br />

informing that a charge was payable. The<br />

credit manager of the parking enforcement<br />

company could not enforce those charges.<br />

The occupiers of that neighbouring building<br />

had no authority to appoint anyone to<br />

patrol the car park and to issue those<br />

notices. There was furthermore no notice,<br />

prominently displayed or otherwise, to<br />

inform users of the car park what was<br />

happening.<br />

A notice would be part of another<br />

situation, where a friend reported to me that<br />

a company patrolling the private car park of<br />

a supermarket had issued him with a charge<br />

notice. The supermarket wanted to restrict<br />

parking to its customers, so that its spaces<br />

would not be used for several hours by<br />

passengers travelling from the neighbouring<br />

railway station. Around the car park there<br />

were plenty of notices about this sensible<br />

policy. The effect of those notices was<br />

that those using the car park entered into<br />

a contact with the car park management<br />

company appointed by the supermarket,<br />

not with the supermarket itself. My friend<br />

had spent a long time at the store, and he<br />

overstayed the allotted time. The car park<br />

management company sent him notice<br />

of the charge, but he fortunately had kept<br />

the receipt relating to his complicated<br />

transaction at the supermarket. In light<br />

of this evidence the credit manager of<br />

the management company very sensibly<br />

cancelled the charge.<br />

Many motorists emotionally consider<br />

that such charges are unfair, and unfairness<br />

was part of the facts of the Supreme<br />

Court case Cavendish Square Holding<br />

BV v Makdessi (2015) 3 WLR 1373. The<br />

judges were reviewing two appeals, one of<br />

which concerned charges imposed upon<br />

motorists who had overstayed their parking<br />

welcome.<br />


The claimant was trying to recover £85 from<br />

the defendant, whose vehicle had stayed<br />

beyond the free period of parking permitted<br />

at a retail park. The defendant claimed that<br />

the charge was an unenforceable penalty<br />

rather than liquidated damages, i.e. the<br />

loss arising from a breach of contract. The<br />

Consumer Association intervened in the<br />

case in the expensive Supreme Court, and<br />

fortunately the claimant was assisted by a<br />

lawyer working pro bono.<br />

In another case reviewed in the same<br />

appeal the facts and law arose from the sale<br />

of shares to the claimant in the dispute, who<br />

alleged that the defendant was in breach of<br />

contract. As a result of that alleged breach<br />

the claimant contended that the defendant<br />

was bound to transfer the remaining shares<br />

in the company to him. The defendant had<br />

agreed that he would not compete for a<br />

specified period. If he broke that promise,<br />

he would not be entitled to the remaining<br />

instalments for the sale of the shares, and<br />

he would have to sell his remaining shares<br />

to the claimant. That sale would be at a<br />

price ignoring any goodwill. He would<br />

therefore receive over US$44 million less for<br />

his share in the Group.<br />

He did not dispute that he was in breach<br />

of the contract, but he maintained that the<br />

contractual clauses resulting in this cost<br />

to him were penalties and not enforceable.<br />

This was the same argument as in the<br />

parking case and the charge of £85.<br />

The resolution of this dispute as to<br />

whether a provision in these circumstances<br />

32 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management




is a penalty or acceptable liquidated<br />

damages has been a topic for judges over<br />

many years. They have had to decide<br />

how much they can interfere in a freely<br />

negotiated contract.<br />

The Law Lords considered these issues<br />

in Dunlop Pneumatic Tyre Company v New<br />

Garage and Motor Company Ltd (1915) AC<br />

79. The defendant had agreed to a resale<br />

price maintenance agreement, illegal now,<br />

and there was a financial consequence if it<br />

failed to comply. It would pay £5 for every<br />

tyre, etc., sold in breach of the contract.<br />

It further agreed that this sum was to be<br />

liquidated damages ‘and not as a penalty.’<br />

Lord Dunedin commented that ‘the<br />

expression used is not conclusive,’ and<br />

now it was for the Court to ascertain<br />

the position. He added, ‘the essence of<br />

liquidated damages’ is a genuine preestimate<br />

of damage. He continued by<br />

stipulating four tests, which in summary<br />

are: (a) a provision is penal, if it stipulates<br />

an amount ‘extravagant or unconscionable’<br />

in comparison to the greatest loss that<br />

conceivably followed from the breach<br />

of contract; (b) if a breach involved the<br />

non-payment of money, a penal provision<br />

required the payment of a larger sum; (c) a<br />

provision would be presumed to be penal<br />

if it was payable in a number of events<br />

of varying gravity; and (d) it would not be<br />

penal just because it was impossible to<br />

pre-estimate the true loss.<br />

Lord Dunedin then turned to the facts<br />

of the case, and pointed out that, if the<br />

defendant had sold just one inner tube<br />

below the agreed resale price, news about<br />

the undercutting would circulate. It would<br />

be impossible to estimate the damage to<br />

the sales organisation of Dunlop, so it was<br />

reasonable to quantify the damage to £5<br />

for each sale in breach of the agreement.<br />

It was a fixed albeit not an extravagant<br />

figure in these circumstances because of<br />

Dunlop’s wider interests.<br />

of the law on penalties. They noted that<br />

it was ‘an interference with freedom of<br />

contract’.<br />

They therefore considered abrogating<br />

the penalty rule, but observed that it was<br />

‘a long-standing principle of English law’,<br />

and that it was common to most ‘major<br />

systems of law’. As long ago as the 17th<br />

century in Strode v Parker (1694) 2 Vern<br />

316, for example, there were proceedings<br />

for the foreclosure of a mortgage, where<br />

it was held that an increase of the interest<br />

from five to 5.5 percent following a breach<br />


Despite the uncertainty of applying each<br />

case to the particular circumstances,<br />

the principle is otherwise clear. In the<br />

Makdessi case the judges of the Supreme<br />

Court apparently disagreed. Lords<br />

Neuberger and Sumption thought that<br />

the English penalty rule was ‘an ancient,<br />

haphazardly constructed edifice which has<br />

not weathered well’. They pointed out that<br />

some people wanted it to be demolished.<br />

They also considered Lord Dunedin’s<br />

four tests in the Dunlop case as being<br />

‘considerations which might prove helpful’.<br />

Lords Neuberger and Sumption concluded<br />

that the tests would be useful in simple<br />

cases, but were not sufficient for complex<br />

ones. They were worried about what they<br />

described as the ‘artificial categorisation’<br />

was penal.<br />

The Australian courts, however, have<br />

extended the principle. As a result of the<br />

decision in Andrews v Australia and New<br />

Zealand Banking Group Ltd (2012) 247<br />

CLR 205 there is now an ‘Andrews Test’,<br />

whereby a provision may be penal even if<br />

it is not triggered by a breach of contract.<br />

The Supreme Court judges in London did<br />

not want to follow this practice.<br />

They agreed that the law relating to<br />

penalty clauses still ‘had a place’ Lord<br />

Hodge concluded that ‘the correct<br />

test’ was ‘whether the sum or remedy<br />

stipulated as a consequence of a breach<br />

of contract is exorbitant or unconscionable<br />

when regard is had to the innocent<br />

party’s interest in the performance of the<br />

contract’. The test now seems to be ‘out<br />

of proportion’ rather than a pre-estimate<br />

of loss. Lord Dunedin’s definitions in the<br />

Dunlop case are no longer as significant as<br />

they once were.<br />


The result is that the clause in the case<br />

concerning the sale of shares was not a<br />

secondary provision. It was primary, so it<br />

could not be treated as invalid, because<br />

otherwise the contract would have to be<br />

rewritten. The parties moreover had freely<br />

negotiated the terms of the contract.<br />

Car parkers overstaying their welcome<br />

also had to pay up. There were plenty<br />

of notices in the area, and they had the<br />

benefit of free parking for two hours. The<br />

restriction prevented the car park from<br />

being used by commuters and long-stay<br />

users in general. The decision is helpful<br />

to credit managers of companies looking<br />

after car parks, although car park users<br />

must clearly be informed of any restrictions.<br />

More generally, however, anyone<br />

drafting a commercial contract does not<br />

have to be so concerned in a secondary<br />

clause about considering a pre-estimate<br />

of loss in the event of a breach of the<br />

agreement. He or she will have to ensure<br />

that any resulting payment is not out of<br />

proportion to the legitimate interest of<br />

the injured party. Those facing a parking<br />

penalty charge clearly explained in a notice<br />

will have to keep a sense of proportion.<br />

The recognised standard in credit management www.cicm.com <strong>April</strong> <strong>2016</strong><br />


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34 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



The countdown has started for SMEs to submit their export plans –<br />

and the chance to win £3,000 to put their plans into action.<br />

OPEN to Export is a Community Interest<br />

Company (CIC), set up by UKTI, the<br />

FSB and the Institute of Export. It<br />

is a fully operational digital platform<br />

for new and inexperienced exporters, which<br />

provides a ‘one stop shop’ that is easy to<br />

access and is full of useful tips, help and<br />

advice about how to start exporting.<br />

The site is exciting and interactive, with<br />

advice from many experts and short, pithy<br />

articles written in layman’s language. It has<br />

two communities: the first is one of experts<br />

who write the articles, and provide webinars<br />

and helpline support; the second is of users<br />

who benefit from it and are encouraged to<br />

engage on various levels.<br />

One of the best parts of the website<br />

carries an interactive Export Market Action<br />

Plan that walks a business through all the<br />

planning issues online. It also gives the<br />

business ownership of the project, which is<br />

vital to the success of any export activity. This<br />

Action Plan can then be taken to the bank<br />

or chosen advisers who will be able to see<br />

at a glance exactly what the SME is trying to<br />

achieve and how they can help.<br />


As a founding partner of Open to Export –<br />

which helps UK businesses prepare to sell<br />

overseas by giving them free access to<br />

online information, support and advice –<br />

the IOE has played an instrumental role<br />

in supporting its new digital Export Action<br />

Plan.<br />

The free of charge and interactive stepby-step<br />

plan is the latest addition to Open to<br />

Export’s online offering. Steering SMEs in the<br />

right direction, it takes visitors through five<br />

key action points before producing a report<br />

they can take to trade advisors.<br />

The digital competition, the first of a<br />

quarterly series to help SMEs broaden their<br />

international trade horizons, will be sponsored<br />

by the International Festival for Business<br />

<strong>2016</strong> – a global marketplace bringing together<br />

thousands of companies worldwide for three<br />

weeks of events, networking and dealmaking.<br />

A panel of experts will shortlist and<br />

judge the Export Action Plans based on<br />

their potential and feasibility, awarding a<br />

cash sum of £3,000 together with additional<br />

support from UKTI and other partners to help<br />

the winning businesses to implement their<br />

plans. The first competition will be held by<br />

its sponsor, at the International Festival for<br />

Business <strong>2016</strong>, in Liverpool, on 30 June.<br />

Additional support includes two free<br />

places on an Institute of Export public training<br />

course and advice from the UKTI. Each of<br />

the ten shortlisted companies will also win a<br />

year’s free small business membership with<br />

the IOE and a year’s free membership with the<br />

Great British Store.<br />

With a growing number of SMEs<br />

identifying the opportunities that trading<br />

globally presents – but daunted by taking<br />

what they see as a big step – we encourage<br />

them to enter this fantastic competition.<br />

The Export Action Plan is a great starting<br />

point. It enables would-be exporters to focus<br />

their goals digitally and talk with confidence<br />

to the trade advisors and banks who can<br />

help the venture to succeed. It is an integral<br />

element of Open to Export’s commitment<br />

to deliver a versatile tool to help small<br />

businesses plan and understand how best to<br />

prepare themselves to go international. We<br />

hope that SMEs with exporting ambitions<br />

take advantage of this excellent resource.<br />

SMEs with exporting ambitions have until<br />

Friday 27th May to enter Open to Export’s<br />

competition by submitting their online<br />

Export Action Plan...as the competition is<br />

free to enter, SMEs have nothing to lose and<br />

everything to gain.<br />

Lesley Batchelor OBE is CEO of both the<br />

Institute of Export and Open to Export<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 35




THERE aren't many bright spots in the<br />

construction sector. In the UK, the 2013-<br />

14 recovery appears to have stalled, many<br />

companies are stuck with low margin<br />

contracts, and late payments remain an<br />

issue. Europe's not much better; Spain,<br />

Italy and Belgium have high risks and poor<br />

payments experience; while profitability<br />

in France is being squeezed; and even<br />

Germany isn't doing all that well.<br />

But there are a few bright spots for the<br />

construction sector and its suppliers. India,<br />

for instance, is now looking good. Business<br />

reforms have helped the sector, and<br />

public infrastructure investment is coming<br />

through at last – though Atradius warns that<br />

company debt is high and payment terms<br />

could be better.<br />

In the US, the sector still looks robust,<br />

continuing a four-year recovery, with<br />

relatively fast payments at just 30-60 days,<br />

though the picture varies by state. Housing<br />

foreclosures are down, and investment is<br />

picking up. And in Peru, state investment is<br />


IT’S a good thing stock market charts don’t<br />

come in 3D, or we'd all be feeling seasick.<br />

<strong>2016</strong> has started horribly for investors,<br />

with the FTSE 100 index falling through the<br />

psychologically important 6,000 level, the<br />

Japanese market falling 11 percent in a day,<br />

and the oil price still not showing signs of<br />

real recovery (indeed below $30 a barrel at<br />

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

choppy sea, with high volatility.<br />

According to some stock market<br />

analysts, markets are now pricing in a 12-18<br />

month recession. Global growth continues<br />

to stagnate, and banks will find it more and<br />

more difficult to stimulate the real economy<br />

– particularly since they can’t take the<br />

classic action of cutting rates.<br />

That might make the stock market pretty<br />

pushing the sector forwards.<br />

There are certainly opportunities<br />

around the world for building materials and<br />

construction equipment suppliers, as well as<br />

for services companies supplying the sector.<br />

But you do have to look quite hard for them<br />

at the moment – and you have to be very<br />

careful about making sure your contract is<br />

properly structured with clear milestones<br />

and tight payment terms. Extending credit<br />

too long, to the wrong customer, could really<br />

blow your house down.<br />

cheap right now, but it suggests growth<br />

is going to be hard to find, and chances<br />

are insolvencies and late payments will<br />

increase as things get worse. Checking<br />

export customers' credit and securing the<br />

right finance, contract terms and insurance<br />

is going to be crucial. If you thought life was<br />

already tough – you’re really going to have<br />

to earn your salary now.<br />


WE’VE already seen round one of the Great<br />

Currency War start, with governments<br />

around the world attempting to devalue their<br />

currencies to kick-start their export sectors.<br />

But according to recent studies from the<br />

IMF and OECD, it might not work. Elasticity<br />

of demand simply isn’t what it used to be.<br />

Partly that's because world trade has<br />

slowed, so trying to devalue to push exports<br />

is like trying to surf on a garden pond.<br />

But it's also because supply chains are<br />

increasingly global so many exporters find<br />

increasing input costs destroy the apparent<br />

advantage of a weaker currency.<br />

What worries me is that if currency<br />

devaluation doesn’t work, that's yet another<br />

weapon central banks can’t use any more.<br />

They can’t cut rates much, unless they<br />

move to really penal rates of negative<br />

interest; the money available for QE must be<br />

running out; and now they can’t even<br />

devalue. Poor chaps, it's like trying to fight<br />

off a pack of lions with the help of a pointy<br />

stick.<br />

36 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management


<br />


I admit it, I want the UK to stay in Europe. I<br />

think exporters do well out of being part of<br />

the EU and I'd like to see it stay that way.<br />

Your views might differ. But one thing's<br />

certain, whichever way the country votes;<br />

the markets don't like uncertainty and<br />

investors are voting with their feet. That's<br />

led to a serious weakening of sterling. Not<br />


THIS year was Sidhil’s sixth Arab Health<br />

expo, and its largest. It’s increased the size<br />

of its stand every year, featuring its bedside<br />

pressure monitoring facility, low beds, and<br />

dynamic mattresses – technology that<br />

can help look after very high-risk patients.<br />

With 75 new leads, the show should<br />

contribute to the company’s order book<br />

and demonstrates how crucial it is to build<br />



GBP/EUR 1.2992 1.2628 Up<br />

GBP/USD 1.4569 1.3840 Down<br />

GBP/CHF 1.4305 1.3736 Up<br />

GBP/AUD 2.0560 1.8893 Down<br />

GBP/CAD 2.0283 1.8688 Down<br />

only has the pound lost ten percent against<br />

the euro over three months and seven<br />

percent against the dollar, but it’s also hit a<br />

post-2011 peak of volatility.<br />

Whatever happens, in the run-up to the<br />

referendum you’re going to have to keep<br />

a close eye on your currency exposures –<br />

wherever you export to.<br />


ATRADIUS has picked its top countries for<br />

growth in <strong>2016</strong>. If you thought emerging<br />

markets were dead, you’re in for a surprise.<br />

Admittedly India remains top of many<br />

people's lists even though the other<br />

three BRICs have fallen by the wayside.<br />

But Atradius also picks Colombia, Peru,<br />

Vietnam, Bangladesh and the Philippines,<br />

Kenya, and Tanzania.<br />

What links these countries? All of them<br />

have a growing middle class – appealing<br />

to consumer goods exporters and services<br />

companies – and, at least to some<br />

extent, stable politics. And they’re mostly<br />

commodity importers, so they should<br />

benefit from low oil and metals prices.<br />

Colombia comes in with the lowest<br />

growth rate, at 2.7 percent, and Peru at 4.9<br />

percent – all the other countries should see<br />

growth for <strong>2016</strong> above six percent.<br />

Are all these markets on your radar?<br />

Maybe they should be.<br />

up your presence in a market steadily over<br />

time.<br />

But Arab Health is also Sidhil’s best<br />

chance to meet its distributors in the area<br />

and talk about emerging opportunities and<br />

how to plan for them. Exhibitions aren’t<br />

just about new business – they’re about<br />

keeping the business you’ve already got<br />

rolling along.<br />




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IN all the gloom, you might miss a little<br />

positive news. It's early days yet, but the<br />

Baltic Dry Index – a useful lead indicator<br />

for world trade – ticked up markedly in mid<br />

February.<br />

True, the BDI bounced twice on the way<br />

down since August 2015 – but I wonder<br />

if this is a sign that the stock markets<br />

and economic commentators are actually<br />

getting a bit too gloomy, and world trade<br />

is on the way back up again? I'm going to<br />

be keeping a close eye on this indicator in<br />

the next few months. Let's hope it goes the<br />

right way!<br />


MOST of us are used to having to look<br />

up four or five different sources when<br />

we're assessing the risk of exporting to a<br />

particular country. But broker AU Group<br />

has simplified the task by boiling down<br />

information from Euler Hermes, Atradius,<br />

Coface and Credimundi to produce what<br />

it calls a G-Grade, together with basic<br />

information on economic trends, each<br />

country on a single page infographic.<br />

You might not want to base your<br />

entire export credit strategy on this handy<br />

document, but it makes it far easier to<br />

refresh your memory or perhaps browse<br />

through potential export opportunities.<br />


Sanctions on Iran have finally been lifted,<br />

and the doors are open to exporters. A<br />

four percent GDP growth forecast makes<br />

Iran look attractive, particularly since<br />

businesses need to ship in new equipment<br />

to update their facilities and make up for<br />

lost time. Euler Hermes reckons the country<br />

could import $4 billion of machinery and<br />

equipment by the end of 2017 – a huge<br />

opportunity for capital goods exporters.<br />

The problem, though, is how Iran’s going<br />

to pay for it all. The price of its major<br />

export, oil, is close to a ten year low. And<br />

practicalities are also an issue, since<br />

relatively few banks are up and running on<br />

the ground. You may need to do a bit<br />

of extra work if your firm plans to<br />

take advantage of this opportunity.<br />

GBP/JPY 167.5211 154.9245 Down<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 37




Jason Braidwood FCICM(Grad), Head of <strong>Credit</strong> and Collections at <strong>Credit</strong>safe Group analyses<br />

the latest monthly business to business payment performance statistics.<br />

AFTER the fall the bounce-back. You<br />

may remember that in the March<br />

issue we saw that January had<br />

shown a fairly hefty step backwards<br />

in terms of average days beyond terms<br />

after the encouragingly positive statistics<br />

we’d seen in December. The good news<br />

for February is that these trends have<br />

been reversed and while we haven’t seen<br />

a big upturn it is to be hoped that a steady<br />

improvement will soon see us back to the<br />

brighter picture that was developing at the<br />

back end of 2015. Who knows we may even<br />

get back to the better position we were in<br />

early 2015.<br />

However, we wouldn’t be working in<br />

the industry we do without a healthy nose<br />

for risk and as is often the case we need<br />

to remain cautious when faced with what<br />

at first looks like an improving trend. As I<br />

seem to do nearly every month I need to<br />

remind you all that the national average<br />

remains stubbornly over two weeks beyond<br />

terms and that while certain sectors and<br />

regions may once again be flirting with<br />

respectability you should always take the<br />

opportunity to look deeper into the figures<br />

that are relevant to your own region and<br />

industry as part of your decision-making<br />

process when setting payment terms.<br />


On an industry-by-industry basis it also is a<br />

generally brighter picture with most sectors<br />

showing improvement after a disappointing<br />

January. The significant improvement from<br />

the IT sector along with International Bodies<br />

would seem to imply that their very poor<br />

showing in January was just a blip – we can<br />

only hope so. One of the more encouraging<br />

trends is that many of the sectors we<br />

featured as ‘prompter’ payers last month<br />

have not just stayed in that top five, but<br />

have also improved their position.<br />

Of particular interest is the continuing<br />

strong performance from the Business at<br />

Home sector. Traditionally home-based<br />

sole traders will find themselves right at<br />

the very bottom of the payment food chain<br />

and as a result forced to delay their own<br />

payments. To see them staying under<br />

ten days beyond terms for two months<br />

running is genuinely encouraging and<br />

either points to them getting paid well, or<br />

The significant improvement<br />

from the IT sector along with<br />

International Bodies would seem<br />

to imply that their very poor<br />

showing in January was just a<br />

blip – we can only hope so.<br />

38 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

3 2 1 0<br />

0 1 2 3 4 5 6 7 8<br />

Getting Better<br />

7 6 Region<br />

5 4 3 2 1 0<br />

Region<br />

Scotland<br />

North West<br />

& Humberside<br />

-1.7<br />

-1.4<br />

Scotland<br />

-0.6<br />

0 1 2 3 4 5 6 7 8<br />

Getting Better<br />

-1.7<br />

0<br />

North West -1.4<br />

North West -5.1 18.2 DBT<br />

Jan Feb Mar<br />

West 76 65Midlands Yorkshire<br />

54 43 32 & Humberside<br />

21 -2.9 10<br />

0 0 01<br />

12 23 34 45 56 67 -0.6<br />

Yorkshire<br />

78<br />

8 West Midlands -5.7<br />

& Humberside Scotland -3.5<br />

18.2 DBT<br />

East 7 6Midlands<br />

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<br />

East MidlandsGetting Getting -1.4 Better Better<br />

East Midlands Getting -6.3 Getting Better Better<br />

+0.7 East Anglia<br />

East Anglia -7.1<br />

Scotland<br />

+0.7-1.7<br />

-1.7<br />

Getting East Better Anglia<br />

East Scotland<br />

Anglia Getting<br />

-8.4 -7.1 -8.4<br />

Better<br />

Wales -4.3<br />

Wales -12.5<br />

North North Scotland West Wales West-1.4<br />

-1.7 -1.4 -4.3<br />

Northern<br />

Scotland North West Wales West -8.4 -5.1 -12.5 -5.1<br />

Northern<br />

Ireland<br />

Ireland<br />

Yorkshire & Humberside<br />

& North 23.0 North DBT<br />

South West-0.6<br />

-0.6 -1.4<br />

Yorkshire & Humberside<br />

& 23.0 South DBT<br />

South West -1.4<br />

South West-5.1<br />

West -3.5 -8.9 -3.5 -8.9<br />

North West North Yorkshire West & Yorkshire &<br />

15.7 Humberside<br />

DBT<br />

Yorkshire West West & Humberside<br />

Midlands -0.6<br />

Yorkshire & Humberside -3.5 12.5 DBT<br />

South East-2.9<br />

-2.9 -1.5<br />

West West Midlands South East -5.7 -12.0 -5.7 15.7<br />

Humberside<br />

DBT<br />

12.5 DBT<br />

South East -1.5<br />

South East -12.0<br />

East West East Midlands<br />

-2.9<br />

London-1.4<br />

-1.4 -1.0<br />

West East East Midlands<br />

London-5.7<br />

-6.3 -13.2 -6.3<br />

East<br />

Midlands<br />

London East Midlands -1.0 +0.7 +0.7 -1.4<br />

East Midlands -6.3<br />

14.0 DBT<br />

+1.8<br />

East East Northern Anglia Anglia Ireland<br />

Northern East East Anglia Ireland Anglia London -7.1 -3.9 -7.1 -13.2<br />

East<br />

West<br />

Midlands<br />

+0.7 East Anglia<br />

East Anglia -7.1 Midlands<br />

Wales East Anglia<br />

Getting<br />

Wales<br />

Worse-4.3<br />

-4.3<br />

Wales Wales<br />

Wales-12.5<br />

-12.5<br />

Getting Worse 15.1 14.0 DBT<br />

+1.8 Northern Ireland<br />

Northern Ireland DBT-3.9<br />

14.0 DBT<br />

Wales -4.3 8 7 6 5 4 3 2 1 0 0 1 2Wales<br />

3 13.6 4 -12.5 5 6 7 8<br />

Region<br />

DBT<br />

West<br />

South South West West-1.4<br />

-1.4 8 7 6 5 4 3 2 1 0 South 0 South 1<br />

2West<br />

3 -8.9 4-8.95 6 7Midlands<br />

8<br />

London<br />

East Anglia<br />

Getting perhaps Worse ensuring their own supply chains<br />

South West -1.4 Region<br />

South West Getting -8.9 Worse Wales<br />

18.4<br />

15.1 DBT<br />

DBT<br />

are kept sweet. South South Whatever East East the -1.5 reason -1.5it<br />

South South East East-12.0<br />

-12.0<br />

14.0 DBT<br />

13.6 DBT<br />

South East<br />

should be applauded and shows a big<br />

South East -1.5<br />

South East -12.0 South West<br />

13.5 DBT<br />

step forward from London a weak end -1.0 to -1.0 2015.<br />

Getting BetterLondon<br />

-13.2 -13.2<br />

Getting Better<br />

Getting Better<br />

12.8 DBT<br />

London<br />

On a less encouraging London note, although -1.0 the<br />

Scotland -1.7 London -13.2<br />

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

-3.9<br />

18.4 Scotland<br />

DBT<br />

Scotland<br />

-8.4<br />

South East<br />

-8.4<br />

the past, it is disappointing +1.8to see Northern Public Ireland<br />

Northern Ireland -3.9<br />

North West -1.4<br />

North West -5.1<br />

Administration Getting heading Getting Worse up Worse the ‘Getting<br />

North West -1.4 Getting International Getting Worse Worse<br />

South West Mining & North West Health 13.5 DBT & -5.1<br />

Top Six Prompter Getting Payers Worse<br />

Bottom IT Five & Comms Poorer Payers Getting Bodies Worse<br />

Agriculture<br />

Quarrying<br />

Social<br />

Worse’ section of our analysis, and only<br />

Yorkshire & Humberside -0.6<br />

Yorkshire 12.8 DBT<br />

& Humberside Scotland -3.5<br />

just outside the bottom five. Given the Sector<br />

Yorkshire Getting Better & Humberside -24.1 -0.6 -23.2 -4.1 Yorkshire -3.5& Humberside -2.4 Scotland -3.5<br />

18.2 DBT<br />

Region Feb 16 Change on Sector<br />

Jan 16<br />

Region Feb 16 Change on Jan 16<br />

continued scale of the public sector, the<br />

18.2 DBT<br />

West Midlands -2.9<br />

West Midlands -5.7<br />

Yorkshire<br />

knock-on<br />

& Humberside<br />

effect of poor performance<br />

12.5 -0.6<br />

West<br />

here<br />

Northern Midlands Ireland -2.9 23.0 +1.8<br />

West Midlands -5.7<br />

Public<br />

Water & Waste<br />

Hospitality<br />

South West 12.8 -1.4 Sector<br />

Getting Worse<br />

can have much wider implications.<br />

East London Midlands -1.4<br />

Administration 18.4 -1.0<br />

East Midlands<br />

+1.7 +1.3 East Midlands -6.3<br />

South East 13.5 -1.5<br />

Scotland<br />

-1.4<br />

East Midlands -6.3<br />

+3.2 18.2 International -1.7<br />

Mining &<br />

mpter<br />

Wales<br />

Payers<br />


13.6 -4.3<br />

Bottom<br />

North West IT Five +0.7 & Comms Poorer<br />

+0.7 East East Anglia Payers<br />

Anglia 15.7 Bodies -1.4<br />

AgricultureEast Anglia Quarrying<br />

East Anglia -7.1 -7.1<br />

East In the Midlands now time-honoured 14.0 fashion Yorkshire -1.4<br />

West Midlands 15.1 -2.9<br />

Getting Better<br />

East and Anglia Humberside is once again 14.0 the +0.7<br />

Wales<br />

-24.1<br />

Wales -4.3<br />

-23.2 -4.1<br />

Mining &<br />

-4.3<br />

Wales<br />

-3.5<br />

International<br />

Mining &<br />

-12.5<br />

Northern Wales<br />

Health Health &<br />

-12.5<br />

&<br />

Feb 16 Change on Jan 16<br />

Region IT & Comms IT & Comms International Bodies Bodies Feb 16 Agriculture Agriculture Change on Jan Mining Quarrying 16Quarrying<br />

& Northern Health Social & Social<br />

Ireland<br />

promptest paying region across the UK<br />

IT & Comms<br />

Bodies<br />

Agriculture<br />

Quarrying Ireland Social<br />

Getting Getting Better Better<br />

23.0 DBT<br />

umberside South West -1.4<br />

South West -8.9<br />

although on 12.5 this occasion -0.6 they are only<br />

Northern 23.0 DBT<br />

Getting Better South -24.1 Ireland -24.1<br />

-24.1 West -1.4 -23.2 -23.2 -4.1<br />

-3.5 -3.5<br />

-23.2 23.0 -4.1+1.8<br />

-3.5 South -2.4 West -2.4 -2.4-8.9<br />

Public<br />

Water & Waste<br />

Hospitality<br />

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<br />

West. Our other traditionally prompt region<br />

South EastPublicPublic<br />

-1.5 Water Water & Waste & Waste Hospitality Hospitality South East -12.0<br />

Getting Getting Worse Worse<br />

+1.7 +1.3<br />

Public<br />

Water & Waste<br />

Hospitality<br />

13.5 -1.5<br />

Getting Scotland Worse<br />

Administration<br />

of East Anglia also held their position in<br />

Administration<br />

London London-1.0+3.2<br />

18.2 +1.7 +1.7<br />

-1.7<br />

+1.3 +1.3 +1.3 London -13.2<br />

the top six, but surprisingly it’s showing a<br />

+3.2<br />

London -13.2<br />

13.6 -4.3<br />

North West 15.7 -1.4<br />

s<br />

worsening<br />

14.0<br />

trend. However,<br />

-1.4<br />

a significantly<br />

West Midlands +1.8 +1.8 Northern Northern Ireland Ireland 15.1 -2.9<br />

improved performance from Wales sees it<br />

jump into the 14.0 top four. On +0.7 a more negative<br />

Getting Worse<br />

Top Top Top Five Five Five Five Prompter Prompter Payers<br />

Getting Worse<br />

Payers payers<br />

Bottom Five Poorer Payers<br />

note Northern Ireland’s unchallenged<br />

position as the slowest paying region in<br />

the UK continues and indeed is getting<br />

even worse. This is a trend that seems to<br />

have gone on for quite some time now and<br />

must be of real concern to credit managers<br />

across the region. Although London and<br />

Scotland are also in the bottom three, it is<br />

encouraging to see them both back on a<br />

positive and improving track and indeed<br />

it is worth noting that in general terms<br />

we have only two regions not showing an<br />

improvement this month.<br />

Jason Braidwood FCICM(Grad) Head of<br />

<strong>Credit</strong> & Collections - <strong>Credit</strong>safe Group<br />

Sector Sector Sector Feb Feb 16 16 Feb 16 Change Change on Jan on 16Jan 16<br />

International Bodies Bodies 6.5 6.5 -23.2<br />

-23.2<br />

Business Business from from Home Home 8.9 8.9 -0.8<br />

-0.8<br />

Education Education 9.5 9.5 -1.0<br />

-1.0<br />

Entertainment 9.6 9.6 -1.0<br />

-1.0<br />

Finance Finance & & Insurance & Insurance 10.3 10.3 -0.2<br />

-0.2<br />

Top Top Six Six Prompter Payers Payers<br />

Top Six Prompter payers<br />

Scotland<br />

North West<br />

Scotland<br />

Getting Better<br />

North West Yorkshire &<br />

North West Y<br />

15.7 Humberside<br />

DBT<br />

15.7 H<br />

DBT<br />

12.5 DBT<br />

Ea<br />

Midla<br />

Northern Northern Ireland Ireland -3.9 -3.9 14.0<br />

West Wes<br />

Midlands Midla<br />

Getting Worse Wales Wales 15.1 DBT<br />

Bottom Bottom Five Five Poorer Poorer Payers Payers Payers<br />

Getting Worse 15.1<br />

13.6 DBT<br />

13.6 DBT<br />

Sector Sector Feb Feb 16 16 Feb 16 Change Change on Change Jan on 16 Jan on 16Jan 16<br />

Londo<br />

Professional && Scientific & Scientific 25.1 25.1 25.1 -1.6 -1.6 -1.6 18.4 D<br />

Water Water & Waste & Waste 20.4 20.4 20.4 +1.7 +1.7 +1.7<br />

Business Business Admin Admin && Support & Support 18.7 18.7 18.7 -2.1 -2.1 -2.1 South WestSouth West<br />

Transportation 16.0 -1.1 12.8 DBT<br />

16.0 16.0 -1.1 -1.1 12.8 DBT<br />

Energy Energy Supply Supply 15.3 15.3 15.3 -1.3 -1.3 -1.3<br />

International<br />

Bottom Bottom IT Five & Comms Poorer IT Five & Comms Poorer Payers Bodies Payers Bodies<br />

Bottom Five Poorer Payers<br />

-24.1 -24.1 -23.2 -23.2<br />

Getting Getting Better Better<br />

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<br />

Yorkshire Yorkshire & Humberside & Humberside 12.5 12.5 -0.6 -0.6<br />

Northern Northern Ireland Ireland 23.0 23.0 +1.8 +1.8<br />

Public Public Water & Waste Water & Waste Hospit<br />

South South West West 12.8 12.8 -1.4 -1.4 Getting Getting Worse London<br />

Worse London Administration Administration 18.4 18.4 -1.0 -1.0<br />

+1.7 +1.7 +1<br />

South South East East 13.5 13.5 -1.5 -1.5<br />

Scotland Scotland<br />

+3.2 +3.2 18.2 18.2 -1.7 -1.7<br />

Wales Wales 13.6 13.6 -4.3 -4.3<br />

North West North West 15.7 15.7 -1.4 -1.4<br />

East East Midlands Midlands 14.0 14.0 -1.4 -1.4<br />

West Midlands West Midlands 15.1 15.1 -2.9 -2.9<br />

East East Anglia Anglia 14.0 14.0 +0.7 +0.7<br />

-8.4<br />

Yorkshire & Humberside<br />

Scotland<br />

Getting Better<br />

-8.4<br />

-5.1<br />

-3.5<br />

Region<br />

25<br />

20<br />

15<br />

10<br />

5<br />

15.7 15.8 16.2<br />

International<br />

AgricultureAgricult<br />

-4.1<br />

Getting Be<br />

-4.1<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 39




Gareth Edwards warns employees against inconsistent verbal and written references<br />

about a former employee.<br />

DOES early conciliation affect the<br />

three-month limit on an employee<br />

claim? This question was answered<br />

in Myers and Another v Nottingham<br />

City Council [2015].<br />

ACAS early conciliation (EC) was<br />

introduced in <strong>April</strong> 2014. Since then,<br />

employees must engage with EC before<br />

presenting a claim to the employment<br />

tribunal (ET). At the end of the period in<br />

which EC takes place, the employee will be<br />

presented with an EC certificate containing<br />

a number that must be quoted on the<br />

claim form. An employee generally has<br />

three months from the date on which their<br />

employment terminates to bring an unfair<br />

dismissal claim against their employer.<br />

This period is called the limitation period.<br />

Since <strong>April</strong> 2014 the limitation period has<br />

been extended to take account of the EC<br />

period, which is generally up to one month.<br />

If EC is started within the last month of the<br />

limitation period, the limitation period will be<br />

extended a further month from the end of<br />

the EC period.<br />

In the case of Myers and Another, two<br />

employees contacted ACAS, and therefore<br />

commenced their EC period, before<br />

their employment was terminated on the<br />

grounds of redundancy.<br />

The matter was not resolved during the<br />

EC period and the employees presented<br />

their claims to the tribunal. Before the<br />

tribunal the employer, Nottingham City<br />

Council, argued that the (five) days after<br />

contacting ACAS to commence EC and<br />

before the employees were dismissed<br />

should not be added to the limitation period<br />

– this would have meant that their claims<br />

were submitted out of time.<br />

The ET rejected the council’s argument<br />

and found that the whole EC period should<br />

be added to the limitation period, despite<br />

the fact that the employees contacted<br />

ACAS and the EC period commenced prior<br />

to their dismissal. The reasoning was to<br />

encourage, rather than penalise, employees<br />

contacting ACAS promptly.<br />

This case is a useful reminder to<br />

employers if they want to monitor when a<br />

potential claimant's limitation period will<br />

end in light of ACAS’ EC procedure.<br />


AWARDS<br />

The Government confirmed its intention<br />

to introduce new 'unpaid award penalties'<br />

from <strong>April</strong> <strong>2016</strong>.<br />

This means that the Government will<br />

issue a 'warning notice' if any tribunal<br />

awards or payments due under settlements<br />

remain unpaid by employers.<br />

If the sums continue to remain unpaid,<br />

the employer, not the employee, will<br />

receive a 'penalty notice' of 50 percent of<br />

the outstanding balance payable to the<br />

Secretary of State. This penalty will be<br />

subject to a £100 minimum and £5,000<br />

maximum.<br />


Can disability discrimination arise when<br />

a job offer is withdrawn after a former<br />

employer gives a negative verbal reference?<br />

In Pnaiser v NHS England and<br />

Coventry City Council [<strong>2016</strong>], Ms Pnaiser<br />

was disabled within the meaning of the<br />

Equality Act 2010. Her employment came<br />

to an end by reason of redundancy, and<br />

was terminated by way of a settlement<br />

agreement, which included an agreed<br />

reference.<br />

Pnaiser subsequently applied for a job<br />

elsewhere, which was offered subject to<br />

satisfactory references. The settlement<br />

agreement reference was provided by<br />

her former employer, but a telephone<br />

conversation was also offered if the<br />

prospective employer wanted further<br />

information.<br />

That telephone conversation took place,<br />

and the prospective employer was informed<br />

that Pnaiser had had a significant amount<br />

of time off work in her previous employment<br />

for a condition lasting more than 12 months,<br />

and Pnaiser was not recommended for the<br />

new role.<br />

The job offer was withdrawn following<br />

that telephone conversation and Pnaiser<br />

brought a claim against both her former and<br />

prospective employers for discrimination<br />

arising from disability.<br />

The ET dismissed the claim on the basis<br />

that a case of discrimination had not been<br />

established.<br />

Pnaiser appealed, arguing that the<br />

tribunal set an ‘impermissibly high hurdle’<br />

by requiring her to show the only inference<br />

that could be drawn from the facts is that<br />

discrimination occurred.<br />

The Employment Appeal Tribunal (EAT)<br />

allowed Pnaiser's appeal and found that<br />

the tribunal should have asked whether it<br />

could be inferred from the facts that the<br />

negative reference was given at least partly<br />

because of Pnaiser's previous absences<br />

(which were disability related). Once this<br />

was established, the burden shifted to<br />

the respondent to show that the disability<br />

related absences were not the reason that<br />

the referee did not recommend Pnaiser.<br />

The EAT decided that it was clear from<br />

the facts that the unfavourable reference<br />

was at least partly as a result of the<br />

sickness absence, which in turn was a<br />

consequence of the disability.<br />

Where a written reference is agreed as<br />

part of a settlement agreement, referees<br />

should not provide a separate verbal<br />

reference that is inconsistent or contradicts<br />

the agreed written reference.<br />

Gareth Edwards is a partner in the<br />

employment team at Veale Wasbrough<br />

Vizards.gedwards@vwv.co.uk.<br />

40 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

<strong>2016</strong> CICM EVENTS<br />


Webinars<br />

Workshops<br />

Showcases<br />

British <strong>Credit</strong> Awards<br />

Law Conference<br />

Fellows Lunch<br />

Education Conference<br />

CICM Best Practice<br />

Just another great reason to be a member<br />

See full programme at www.cicm.com/events<br />

www.cicm.com | +44 (0)1780 722902 | events@cicm.com<br />

The recognised standard in credit management<br />




In our ongoing series, <strong>Credit</strong> <strong>Management</strong> takes a look at the most useful<br />

business apps for tablets and the most popular games for passing the time.<br />

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

hooked on that helps you while away the time on the long journey to work?<br />

Let us know at editor@cicm.com<br />


Lucidchart helps teams and clients share professional charts<br />

or diagrams, and providing design software for anything from<br />

brainstorming to project management. This tool is supported<br />

by a collaborative and clean interface, enabling integrative work<br />

projects to take place in real time, encouraging a more visual<br />

style of communication.<br />

AVAILABILITY: Android/iOS<br />

COST: Free<br />


This app acts as an online management device for businesses,<br />

signing visitors in and out, with no cap on the number of visitors<br />

or the number of hosts in your directory. Envoy can be managed<br />

in multiple locations under one account, for those businesses<br />

with internationally distributed offices. It also acts as a useful<br />

admin device, configuring employee contacts and visitor data.<br />


Freshdesk mobile app is used to help businesses deliver<br />

exceptional customer service experiences, without the need for<br />

face-to-face interaction, which is not always possible. Instead,<br />

the app acts as a real time helpdesk in your phone, answering<br />

customer queries, recording problems and resolving them even<br />

when the user is away from their desk.<br />


COST: From basic free to Enterprise package<br />

AVAILABILITY: Android/iOS<br />

COST: Depends on package<br />


With the strap line ‘it’s about the people not the paperwork’,<br />

Bamboo HR is an online human resources app, that enables<br />

employee data to be made easily accessible in abundance<br />

online, eliminating the need for paper work and spreadsheets.<br />

All employee data is secure in one location, which can be made<br />

accessible to employees where necessary.<br />

AVAILABILITY: Android/iOS<br />

COST: Depending on number of employees<br />

KAYAK<br />

This app allows users to book multi-city flights, hotels and even<br />

rental cars, allowing business trips to be planned simply and<br />

quickly from a hand held device. Similarly, the app allows you to<br />

track and plan itinerary, with a simple navigation page displaying<br />

the hotels booked, flights and car hire (if needed). Prior to the<br />

booking, the app also offers the user comparative pricing across<br />

multiple sites<br />

AVAILABILITY: Android/iOS<br />

COST: Free<br />

42 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

Minimise bad and doubtful debt | Best practice applied consistently<br />

Customer satisfaction | Regulatory and legislative compliance<br />

CICM specialised credit training can be tailored and conveniently<br />

delivered 'In-Company' at your offices.<br />

.<br />

<strong>Credit</strong> <strong>Management</strong> | <strong>Credit</strong> Strategy | <strong>Credit</strong> Risk | Collections<br />

Export <strong>Credit</strong> | Financial | Legal<br />

.<br />

Have a look at our Training Directory for example programmes.<br />

ELECTIONS<strong>2016</strong><br />


The Advisory Council influences the strategy, policy and future direction of the Institute.<br />

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

membership, and bring valuable expertise and knowledge.<br />

Being a member of the Institute’s Advisory Council is your opportunity to:<br />

• Participate in the Institute’s governance<br />

• Make a valuable contribution to the credit profession and the CICM<br />

• Raise your personal and professional profile<br />

There are 23 Advisory Council positions open for nomination representing our 11 regions<br />

and the trade, consumer, international and credit services sectors.<br />

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

Nominations now open.<br />


W: www.cicm.com E: elections@cicm.com<br />

YEAR<br />



Use your budget wisely - develop your credit team!<br />

Contact Julie Dalton, In-company<br />

Training Adviser, to discuss how<br />

CICM can help you and your<br />

team meet targets and have a<br />

successful <strong>2016</strong>.<br />

t: +44 (0)1780 722907<br />

e: julie.dalton@cicm.com<br />


The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 43


Trace and Investigations<br />

With more than 15 years of experience in<br />

the investigations industry, clients trust<br />

in our first class service.<br />

Our standard UKtraces are offered on a<br />

‘no find -nofee’ basis and all enquiries conducted are<br />

within strict compliance of the Data Protection Act.<br />

Our specialities:<br />

• Address Trace<br />

• Employment Trace<br />

• Asset &Pre-Sue Reports<br />

• Background Checks<br />

Contact Faheem now for anon-obligation<br />

discussion about your requirements.<br />

Tel: 020 8255 1010<br />

Email: enquiries@baxford.co.uk<br />

www.baxford.co.uk<br />

44 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management





LUNCH <strong>2016</strong><br />

10 June <strong>2016</strong><br />

Victorian Bath House, Bishopsgate<br />

Courtyard, London, EC2M 3TJ<br />

…includes an enlightening talk on the Bath House<br />

Tickets for this event are £128 plus VAT per person.<br />

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

or call Becki Sharpe on 01780 722902.<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 45


STEP UP TO<br />


Become the Complete <strong>Credit</strong> Manager. Equip yourself for<br />

specialist and management roles by investing in the Level 5 Diploma<br />

in <strong>Credit</strong> <strong>Management</strong> MCICM(Grad).<br />

WHO’S IT FOR?<br />

<strong>Credit</strong> controllers, analysts or team<br />

leaders who would like to move to more<br />

senior roles or experienced credit<br />

managers who need to consolidate their<br />

experience with qualifications.<br />



• Advanced knowledge in key credit<br />

management areas.<br />

• Opportunities to carry out useful<br />

projects at work and learn new skills.<br />

• Increased ability to innovate, lead teams<br />

and work effectively in complex business<br />

environments.<br />

• The career boost of being a<br />

MCICM(Grad) and opportunity to<br />

progress further.<br />


2 years. 3 work-based assignments pa<br />


Level 3 passes in CICM credit<br />

management, business environment,<br />

business law and accounting or equivalent<br />

(A Level or above). See CICM website or<br />

contact CICM to find out how to achieve this.<br />


Six work-based assignments<br />


A range of options: Evening classes, virtual<br />

classrooms and supported distance learning<br />

or you could study independently – all units<br />

have study guides and recommended texts.<br />

CICM website has details.<br />


Be forward thinking - carry out a PESTEL,<br />

SWOT analysis and benchmark your<br />

departmental practices and performance<br />

-identify areas for improvement.<br />



Become a communication expert - use<br />

your skills to improve communications with<br />

customers - find out how leaders help teams<br />

achieve organisational goals.<br />



Become an expert in credit<br />

risk management – showcase<br />

your skills and recommend<br />

improvements.<br />

CICM<br />



Become the Complete<br />

<strong>Credit</strong> Manager<br />


Be effective - learn process<br />

mapping and improvement<br />

techniques - carry out<br />

a process improvement<br />

project.<br />


Become a compliance expert - complete<br />

a self-assessment report on legal regulatory,<br />

ethical and social requirements.<br />


Become knowledgeable about bankruptcy<br />

and insolvency - learn how best to manage<br />

legal proceedings (exam will be replaced<br />

with an assignment in January 2017)<br />

Visit www.cicm.org.uk or ring 01780 722909 or email<br />

professionalqualifications@cicm.com to find out more.<br />

46 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

‘Having previously obtained some accountancy<br />

and management qualifications, I wanted to<br />

differentiate myself from these so that I could<br />

demonstrate that credit management was a unique<br />

discipline, requiring different skillsets, and also<br />

highlight that I was technically qualified’.<br />



I qualified as a means to distinguish myself from the<br />

other credit controllers in the Bristol jobs market and<br />

progress beyond entry level credit control jobs. The<br />

qualifications gave me the confidence to take my<br />

career further. Moreover, as I've subsequently risen<br />

to credit manager roles in two professional service<br />

industries, it has ensured that the lawyers<br />

and accountants I’ve worked with have treated me as<br />

an equal.<br />



Since starting as a credit controller at 18 years<br />

of age, I wanted to be a credit manager. The<br />

CICM qualification was my route to management.<br />

My career took off once I obtained my<br />

qualification and I’ve not looked back since<br />



When I studied for CICM qualifications, I was<br />

working for Volkswagen Financial Services (UK)<br />

Ltd as a credit manager. The qualification was<br />

very relevant to my role covering key aspects to<br />

help me with my job. I left school with reasonable<br />

qualifications but felt I needed to supplement this<br />

with a professional qualification from a recognised<br />

institution. The qualification was the foundation<br />

that has helped my career progression to date<br />

within the Volkswagen Group. While I enjoyed my<br />

role as a credit manager, I have since taken on<br />

other roles including Head of Banking Services<br />

with VW Financial Services, Sales Planning with<br />

Volkswagen, Network Development with Skoda and<br />

more recently Business <strong>Management</strong> with Bentley<br />

Motors. I still value being a member of the Institute<br />

and recommend it to my colleagues who are in the<br />

earlier stages of career development.<br />



Like others, I ended up ‘chasing’ the money because<br />

no-one else wanted to. I attended a one day seminar<br />

and found that I was mainly ‘doing it right’ but there<br />

were many pitfalls and many tricks to learn to ensure<br />

that debts did not become bad and how to deal<br />

with those that did. I decided to study to get the<br />

qualification. Being qualified gave me a qualification<br />

and the confidence to undertake my roles and<br />

improve credit management wherever I worked.<br />

Achieving MCICM(Grad) showed employers that<br />

I was professional and committed. I also became<br />

a member of the local branch which extended my<br />

contacts and professional development.<br />



I thought CICM would be the appropriate<br />

qualification to progress a career in credit<br />

management - and how right I was! 100 percent.<br />

Being qualified, I continue to enjoy a fantastic<br />

career in credit management. Having worked in<br />

senior positions for going on ten years from credit<br />

manager, Head of credit management, <strong>Credit</strong><br />

Director and currently Global credit manager<br />

(Assoc Director), I believe CICM helped me get to<br />

this level.<br />



The breath and knowledge gained from CICM<br />

studies have been very useful. I have now been<br />

promoted to credit manager in a 70 million<br />

turnover company; CICM is a more recognised<br />

professional qualification than ever.<br />



Getting qualified for me was a result of support<br />

and encouragement from my boss and the desire to<br />

understand more about credit. I was initially drawn<br />

towards insolvency and law of credit but once engaged<br />

with the studies realised the huge potential of credit<br />

management. CICM qualifications have been essential in<br />

achieving my career goals. Today I have the privilege of<br />

managing credit facilities across 91 different countries,<br />

throughout Europe, Middle East, Africa and Russia.<br />

As a credit professional who has been working within<br />

credit for the past 24 years, I have travelled to many<br />

places around the world and met many interesting and<br />

influential people. I look forward to the next 20 years<br />

which I am sure will be just as enjoyable.<br />




The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 47


The Institute welcomes new members who joined during February<br />

MEMBER<br />


Thomson Davie<br />

De Lage Landen Leasing Ltd<br />

William Dunny<br />

Lisduggan District <strong>Credit</strong> Union Ltd<br />

Michelle James<br />

Mainstay Group Ltd<br />

Paul Le Poidevin<br />

Arvato Financial Solutions<br />

Anu Massey<br />

Appleton Massey co.uk<br />

Gillian Phillips<br />

Nisbets Plc<br />

Anita Pickersgill<br />

Kingsland Receivables<br />

Mohammed Rashid<br />

Deloitte LLP<br />

Peter Rollason<br />

BRMB Radio Group<br />


NAME<br />

Hannah Dent<br />

Peter Taggart<br />

Georgina Wright<br />


SMA Vehicle Remarketing Ltd<br />

Weightmans LLP<br />

Truck East Ltd<br />



Rob Aberdeen<br />

Janet Ayres<br />

Daniel Bacon<br />

Jason Barratt<br />

Ammaara Bhana<br />

Bhagyawatee Bhiwa<br />

Amanda Boyce<br />

Steven Bramhall<br />

Zoe Bratley<br />

Linda Brownlee<br />

Melanie Bucknall<br />

Matthew Buller<br />

Stuart Butcher<br />

Amy Cook<br />

Sarah Cooper<br />

Louise Cornmell<br />

Lauren Cowen<br />

Angela Cropper<br />

Nicky Crossey<br />

Colin Davis<br />

Jonathon Day<br />

Emma Douglin<br />

Roger Duckworth<br />

Jane Duckworth<br />

Lisa-Marie Edwards<br />

Jeffrey Fenton<br />

Daniela Gega<br />

Lisa Gendre<br />

Amit Ghei<br />

Andrew Gillott<br />

AnielGoyal<br />

Clair Hainsworth<br />

Stevan Hill<br />

James Holmes<br />

Ian Honeysett<br />

Susannah Horscroft<br />

Beverley Hughes<br />

Lesley Ireland<br />

Shoeb Issufo<br />

George Izzo<br />

Charles Jackson<br />

Aldona Janiak<br />

John Jordan<br />

Stephen Kay<br />

Kimberley Kidwai<br />

Marcus Kirby<br />

Anthony Kirke-Reynolds<br />

Aberdein Considine<br />

Q A Ltd<br />

Bristow & Sutor<br />

Bristow & Sutor<br />

StepChange Debt Charity<br />

Trinity Mirror Digital Recruitment Ltd<br />

Capita Group Ltd<br />

Anixter Ltd<br />

UK Fuels Limited<br />

Hays <strong>Credit</strong> <strong>Management</strong><br />

Allsop<br />

Sankeys Funeral Service<br />

Andrew Wilson & Co<br />

Haven Power Ltd<br />

StepChange Debt Charity<br />

UK Fuels Limited<br />

Wolverine Europe Ltd<br />

Q A Ltd<br />

Parker Building Supplies Ltd<br />

Civica Services Ltd<br />

StepChange Debt Charity<br />

Askews<br />

Westcoast Limited<br />

Elliott Davies (Sheriffs) Ltd<br />

Allsop<br />

ICE Futures Europe<br />

Derby Legal Services Ltd<br />

Royal Garden Hotel Ltd<br />

Q A Ltd<br />

Civica Services Ltd<br />

Allied Bakeries Ltd<br />

Kings College London<br />

StepChange Debt Charity<br />

Q A Ltd<br />

Allsop<br />

StepChange Debt Charity<br />

WSP Group Ltd<br />

C & J Clark International Ltd<br />

TNS UK Ltd<br />

Hays <strong>Credit</strong> <strong>Management</strong><br />

StepChange Debt Charity<br />

Marshalls Group Plc<br />

StepChange Debt Charity<br />

Canal & River Trust<br />

Crystal Lam<br />

Rachel Leigh<br />

Glenn Lewin<br />

Stacey Little<br />

Siisii Luyanga<br />

Chelsea Lynch<br />

Nahida Malik<br />

Thomas Maund<br />

Jackie McCauley<br />

Michael McClelland<br />

Alex Mearns<br />

Arjun Mohindra<br />

Aaron Muncherji<br />

Ekwebe Ndango Ndagha<br />

Andrew O'Connor<br />

Joseph Okochi<br />

Rachel Owen<br />

Leanne Packer<br />

Amar Patel<br />

Sarah Patel<br />

Lorna Phillips<br />

Katie Rawlings<br />

Katherine Ray<br />

Lorraine Reynolds<br />

Karen Richard<br />

Holly Robb<br />

Michael Scott<br />

Jerry Sereboh<br />

Morrisa Singh<br />

Nagananghini Sivarasa<br />

Gaynor Steen<br />

Jacqueline Steven<br />

Susan Stroud<br />

Diane Thompson<br />

Caroline Thomson<br />

Alan Thorne<br />

Melissa Tostevin<br />

Edward Vann<br />

Jacco Versteeg<br />

Richard Ward<br />

Myles Whitworth<br />

Simon Wilkinson<br />

Paul Williamson<br />

Bernadette Worley<br />

Emma Yeomans<br />

Barbara Young<br />

Izabela Zajac<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

Investrust Bank Plc<br />

StepChange Debt Charity<br />

Capita Symonds Limited<br />

WEX Europe Services Ltd<br />

StepChange Debt Charity<br />

Economet<br />

Business Finance Solutions<br />

Bristow & Sutor<br />

StepChange Debt Charity<br />

National Financial <strong>Credit</strong> Bank SA<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

1pm (UK) Limited<br />

ICE Futures Europe<br />

Redefine International<br />

Jeyes Ltd<br />

Allsop<br />

IDS<br />

Digital Projection Ltd<br />

Roche Diagnostics Ltd<br />

Q A Ltd<br />

StepChange Debt Charity<br />

HCA International Ltd<br />

Debt Recovery & Adminstrative Services<br />

Business Design Centre Ltd<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

StepChange Debt Charity<br />

Q A Ltd<br />

Bristow & Sutor<br />

Haulotte UK Ltd<br />

Radius Payment Solutions<br />

Bristow & Sutor<br />

Frank G Whitworth<br />

Q A Ltd<br />

StepChange Debt Charity<br />

J Tomlinson Limited<br />

Rolls Royce<br />

Tessa Gough and Associates<br />

Adams Food Ingredients Ltd<br />

48 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

EVENTS<br />


The Institute looks forward to welcoming you at the <strong>2016</strong> Education Conference being held at the<br />

Birmingham Chamber of Commerce on Thursday 23 June.<br />

THIS year, the focus will be on exploring<br />

the unique skills of credit professionals and<br />

looking at ways to build these to move credit<br />

and collections teams to the next level.<br />

Following the success of afternoon<br />

workshops last year, there will be further<br />

opportunities to attend group sessions<br />

including: a sample lesson, updates on<br />

apprenticeship arrangements, support with<br />

Level 5 assignment writing, and advice<br />

about linking assignments to training<br />

which will include examples of candidates’<br />

work. There will also be several networking<br />

breaks when attendees can meet credit<br />

professionals from other companies.<br />

Delegates last year described the event<br />

as ‘highly enjoyable and well-organised’ and<br />

offering 'a variety of speakers and wealth<br />

of information.' We would be delighted if<br />

you can join us to hear our key speakers<br />

and share your own experiences. See<br />

CICM website for the programme and email<br />

educationconference@cicm.com to book a<br />

place at the free event.<br />



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

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

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

CPD<br />

2<br />

CPD<br />

2<br />

CPD<br />

6<br />







See the forthcoming events section for many more opportunities.<br />

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

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



The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 49




Hays <strong>Credit</strong> <strong>Management</strong> is the award winning<br />

national specialist division of Hays Recruitment,<br />

dedicated exclusively to the recruitment of<br />

credit management professionals in the public<br />

and private sectors. Whether you are looking<br />

to further your career in credit management,<br />

strengthen your existing team, or would<br />

simply like an overview of the market, it pays<br />

to speak to the market leaders.<br />

hays.co.uk<br />

Freeths is one of the UK’s leading regional<br />

law firms with offices across the UK.<br />

We advise on book debt collection and<br />

asset recovery in insolvency situations and<br />

everything in between. We are very proud<br />

to be the CICM’s Corporate Legal Partner<br />

and host the CICM Legal Helpline, providing<br />

free and quick initial legal advice to CICM<br />

members.<br />

freeths.co.uk<br />

Data Interconnect provides integrated<br />

e-billing and collection solutions via its<br />

document delivery web portal, WebSend. By<br />

providing improved Customer Experience<br />

and Customer Satisfaction, with enhanced<br />

levels of communication between both<br />

parties, we can substantially speed up your<br />

collection processes.<br />

datainterconnect.com<br />

Experian is the leading global information<br />

services company, providing data and<br />

analytical tools to clients around the world.<br />

The Group helps businesses to manage<br />

credit risk, prevent fraud, target marketing<br />

offers and automate decision making.<br />

Experian also helps individuals to check<br />

their credit report and credit score, and<br />

protect against identity theft.<br />

experian.co.uk<br />

Sidetrade’s market-leading Cloud solutions<br />

co-ordinate the activities of finance, customer<br />

services and sales involved in the<br />

Order-To-Cash cycle, reducing late payment<br />

and controlling customer risk. Sidetrade’s<br />

Clients reduce their DSO the first three<br />

months and increase the productivity (31%)<br />

of their collection teams, allowing <strong>Credit</strong><br />

Managers to dedicate more time to building<br />

long term customer relationships and<br />

achieve their goals.<br />

sidetrade.co.uk<br />

Key IVR provide a suite of products to assist<br />

companies across Europe with credit<br />

management. The service gives the end-user<br />

the means to make a payment when and<br />

how they choose. Key IVR also provides a<br />

state-of-the-art outbound platform delivering<br />

automated messages by voice and SMS.<br />

In a credit management environment,<br />

these services are used to cost-effectively<br />

contact debtors and connect them back into a<br />

contact centre or automated payment line.<br />

keyivr.co.uk<br />

OnGuard is a leading supplier of sophisticated<br />

software in which <strong>Credit</strong>, Collections,<br />

Complaints and Cash Allocation are<br />

integrated into a single solution. With<br />

customers around the world we offer a truly<br />

global, proven, low-risk high-value proposition<br />

enabling you to achieve results in process<br />

optimization, cost savings, lower DSO and<br />

reduced write-offs whilst strengthening the<br />

relationship with your valued customers.<br />

onguard.co.uk valuable time savings.<br />

This<br />

Rimilia provides award winning Cash<br />

Application & Cash Allocation software<br />

products that deliver industry leading<br />

tangible benefits like no other. Having<br />

products that really do what they say is<br />

paramount – add to that a responsive<br />

and friendly team that are focused<br />

on new and ongoing benefit realisation and<br />

you have the foundations for successful long<br />

term business relationships.<br />

rimilia.com<br />

50 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

The recognised standard in <strong>Credit</strong> <strong>Management</strong><br />

Ability to manage cashflow is crucial and<br />

control and management of debtors is<br />

often a ‘painful’ task involving manual and<br />

repetitive processes. Safe <strong>Credit</strong> Control<br />

solutions enable your credit management<br />

team to improve cash flow, reduce debtor<br />

days, increase customer service, cut the<br />

cost of cash collection, eliminate manual<br />

processes and speed up the query<br />

resolution process.<br />

safe-creditcontrol.co.uk<br />

M.A.H. is a global leader in Export Debt<br />

Collection & Trade Dispute Resolution<br />

Services. Headquartered in Switzerland,<br />

we specialise in resolving cross-border<br />

cases swiftly and amicably. Our mission is to<br />

ensure that all creditors receive full payment<br />

for products or services sold out of the UK<br />

without expensive and lengthy litigation.<br />

Having recovered payments from 112<br />

countries, we rank as first choice among major<br />

international exporters, export credit insurers,<br />

governmental organisations, and other B2B<br />

customers in all industries.<br />

mah-international.com<br />

Begbies Traynor is the UK’s leading Corporate<br />

Rescue and Recovery practice, handling<br />

more than 1000 cases per year. We operate<br />

from a network of 37 UK offices, with clients<br />

ranging from SME’s to quoted companies<br />

and global banks.<br />

As a business we have a close relationship<br />

with CICM members and understand the<br />

key role they play in the ongoing financial<br />

health of their organisations. We also<br />

understand the pressures that many face and<br />

have developed a creditor services offering<br />

to support their aims. Whether this is utilised<br />

as a basic free consultation by phone, or a<br />

full suite of services to cover all claims in any<br />

insolvency, we can work with members to<br />

provide a tailored solution.<br />

begbies-traynor.com<br />

Credica are a UK based developer of specialist<br />

<strong>Credit</strong> and Dispute <strong>Management</strong> software.<br />

We have been successfully implementing our<br />

software for over 15 years and have delivered<br />

significant ROI for our diverse portfolio of<br />

customers. We provide a highly configurable<br />

system which enables our clients to gain<br />

complete control over their debtors and to<br />

easily communicate disputes with anyone in<br />

their organisation.<br />

credica.co.uk<br />

We specialise in company information with<br />

extensive company coverage, financial risk<br />

metrics and comprehensive corporate<br />

structures. Our <strong>Credit</strong> Catalyst combines our<br />

international, standardised financial data with<br />

a bespoke credit platform, so you can work<br />

more efficiently, make better quality decisions<br />

and spot risk quickly.<br />

• Assess financial risk and corporate stability<br />

• Get insight on the financial health of individual<br />

companies and across your portfolio<br />

• Manage your data more efficiently<br />

bvdinfo.com<br />

Graydon UK provides its clients with<br />

<strong>Credit</strong> Risk <strong>Management</strong> and Intelligence<br />

information on over 100 million entities<br />

across more than 190 countries. It provides<br />

economic, financial and commercial insights<br />

that help its customers make better decisions.<br />

Leading credit insurance organisations,<br />

Atradius, Coface and Euler Hermes, own<br />

Graydon. It offers its seamless service through<br />

a worldwide network of offices and partners.<br />

graydon.co.uk<br />

Tinubu Square is a trusted source of trade<br />

credit intelligence for credit insurers and for<br />

corporate customers. The company’s B2B<br />

<strong>Credit</strong> Risk Intelligence solutions include the<br />

Tinubu Risk <strong>Management</strong> Center, a cloudbased<br />

SaaS platform; the Tinubu <strong>Credit</strong><br />

Intelligence service and the Tinubu Risk<br />

Analyst advisory service. Over 250<br />

companies rely on Tinubu Square to protect<br />

their greatest assets: customer receivables.<br />

tinubu.com<br />

Innovation Software is a global software<br />

house with clients in 26 countries. Our team<br />

of highly educated, talented and creative IT<br />

and <strong>Management</strong> consultants are focused on<br />

providing elegant solutions to optimise your<br />

Accounts Receivables. We are authors of<br />

<strong>Credit</strong>Force, a leading Collections and Query<br />

<strong>Management</strong> solution that’s delivered to your<br />

computer infrastructure or in the cloud via<br />

Micorosft Azure.<br />

innovationsoftware.uk.com<br />

For further information and to discuss the opportunities of entering into a Corporate<br />

Partnership with the CICM, contact Peter Collinson, Director of Business Development<br />

and Marketing on 01780 727273 or email peter.collinson@cicm.com<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 51

FORTHCOMING EVENTS <strong>2016</strong><br />



CICM<br />

EVENTS<br />

5 <strong>April</strong><br />

CICM Sheffield and District Branch<br />

– Presentations on Innovation in<br />

<strong>Credit</strong> and How to raise Finance.<br />


18:00 for 18:30 start<br />

Drinks & Refreshments included<br />

Presentations: INNOVATION IN CREDIT<br />

Simon Johnson, Director of UK <strong>Credit</strong> <strong>Management</strong>, SIG plc<br />

HOW TO RAISE FINANCE: Karl Hodson, Finance Specialist,<br />

BTG Corporate Solutions.<br />

Contact: To reserve places email: simonjohnson@<br />

sigplc.co.uk<br />

Venue: Mercure Sheffield Parkway Hotel, Britannia Way,<br />

Catcliffe, Sheffield, S60 5BD.<br />

5 <strong>April</strong><br />

CICM Kent Branch – Curry and<br />

<strong>Credit</strong> Evening.<br />


This will be a great opportunity to meet your Committee<br />

and other Kent CICM members to discuss what your<br />

Branch can do for you and what you would like to see from<br />

the Branch.<br />

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

places are strictly limited and reservations will be taken on<br />

a ‘first come, first served’ basis.<br />

Contact: To reserve your place, please email Kevin<br />

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

Venue: Simla Cuisine, 2 Church Road, Paddock Wood,<br />

Tonbridge, TN12 6EZ.<br />

14 <strong>April</strong><br />

CICM South West Branch – Annual<br />

General Meeting, Networking and<br />

Dinner.<br />

DEVON<br />

Notice of Annual General Meeting<br />

The South West Branch is holding an AGM at 19:30<br />

Contact: Please reply to Gerry Thomas, Branch Chair<br />

E: southwestbranch@cicm.com by 7 <strong>April</strong> <strong>2016</strong>.<br />

Venue: Dartmoor Lodge, Peartree Cross, Ashburton,<br />

Devon, TQ13 7JW United Kingdom.<br />

20 <strong>April</strong><br />

CICM East Midlands Branch<br />

– Breakfast Briefing: Latest<br />

CPD<br />

2<br />

developments in the <strong>Credit</strong><br />

World.<br />


‘Latest Developments in the <strong>Credit</strong> World’ Supported by<br />

CICM Premium Partner, Hays.<br />

Contact: To confirm your place please, contact the<br />

branch at E: eastmidlandsbranch@cicm.com.<br />

Venue: Aggregate Industries, Bardon Mill, Coalville,<br />

LE67 1TL.<br />

21 <strong>April</strong><br />

CICM Wessex Branch – How to<br />

Enforce County Court Judgments.<br />


Dan Geddes is a solicitor in Blake Morgan’s Commercial<br />

Recoveries team with 13 years’ experience in litigation,<br />

specialising in debt recovery and insolvency cases. He will<br />

set out the claims process in the County Court and the<br />

options available to creditors wishing to enforce a County<br />

Court judgment. A High Court Enforcement Officer from the<br />

High Court Enforcement Group will then share some of his<br />

experiences of enforcing County Court judgments<br />

Costs: Free<br />

Contact: RSVP: E: wessexbranch@cicm.com<br />

Venue: Blake Morgan, New Kings Court, Tollgate,<br />

Chandler's Ford, Eastleigh, SO53 3LG.<br />


DAYS<br />

12 <strong>April</strong><br />



LONDON<br />

Contact: E: training@cicm.com T: 01780 722907<br />

Venue: tbc<br />

20 <strong>April</strong><br />


LONDON<br />

Contact: E: training@cicm.com T: 01780 722907<br />

Venue: TBC<br />

21 <strong>April</strong><br />



ONLINE<br />

Contact: E: training@cicm.com T: 01780 722907<br />

21 <strong>April</strong><br />



LONDON<br />

Contact: E: training@cicm.com T: 01780 722907<br />

Venue: tbc<br />

22 <strong>April</strong><br />



ONLINE<br />

Contact: E: training@cicm.com T: 01780 722907<br />

29 <strong>April</strong><br />



ONLINE<br />

Contact: E: training@cicm.com T: 01780 722907<br />

OTHER<br />

EVENTS<br />

7 <strong>April</strong><br />

<strong>Credit</strong> Summit <strong>2016</strong> London<br />

LONDON<br />

The event encompasses the largest exhibition and new<br />

this year is a 1-2-1 meeting hub to plan your day with key<br />

suppliers. Additionally, the FCA will be at the exhibition<br />

providing you with many opportunities to engage in<br />

discussions on the issues plaguing you and your business.<br />

Contact: www.creditsummit.co.uk<br />

Venue: QEII Conference Centre, London.<br />

7 <strong>April</strong><br />

Forums International – OSF (Office<br />

Supplies <strong>Credit</strong> Forums)<br />

LONDON<br />

Contact: For more information and an information pack,<br />

contact E: osf@forumsinternational.co.uk<br />

Venue: tbc<br />

12 <strong>April</strong><br />

Forums International – CPF (<strong>Credit</strong><br />

Professionals Forum)<br />


Contact: For more information and an information pack,<br />

contact E: cpf@forumsinternational.co.uk.<br />

Venue: Coppid Beech Hotel, John Nike Way, Bracknell,<br />

RG12 8TF.<br />

13 <strong>April</strong><br />

Forums International – SAP User<br />

Group<br />


Contact: For more information and an information pack,<br />

contact : sapug@forumsinternational.co.uk.<br />

Venue: tbc<br />

14 <strong>April</strong><br />

Forums International – DRF (IT<br />

Distributor & Reseller <strong>Credit</strong> Forum)<br />


Contact: For more information and an information pack,<br />

contact E: drf@forumsinternational.co.uk.<br />

Venue: tbc<br />

17 - 19 <strong>April</strong><br />

ICTF’s Global <strong>Credit</strong> Professionals<br />

Symposium – Chicago.<br />

USA<br />

View full progamme online: http://www.ictfworld.org/<br />

mpage/<strong>2016</strong>ChicagoSymposium.<br />

Contact: http://www.ictfworld.org/events/EventDetails.<br />

aspx?id=749487&group=<br />

Venue: The Ritz-Carlton, Chicago, 160 East Pearson<br />

Street, Chicago, IL 60611, United States.<br />

20- 21 <strong>April</strong><br />

Forums International – 2iCF<br />

(International IT & Technology<br />

<strong>Credit</strong> Forum).<br />


Contact: For more information and an information pack<br />

contact E: 2icf@forumsinternational.co.uk<br />

Venue: tbc<br />

CPD<br />

26 <strong>April</strong><br />

6<br />

Regional Workshop<br />

– Developing a killer <strong>Credit</strong> Policy.<br />

LONDON<br />

Do you need guidance on how your credit policy should<br />

look, what it should include and advice on how to<br />

implement it? We’ll cover it all in ‘Developing a killer <strong>Credit</strong><br />

Policy’, a FREE workshop for CICM members. Not only will<br />

we highlight why it’s so important to have an effective<br />

credit policy but we’ll also give you the opportunity to<br />

get personal help and advice from experts on the day<br />

about developing a credit policy that’s right for your own<br />

organisation. There will be guest speakers, workshop<br />

sessions and plenty of opportunities to ask questions and<br />

meet like-minded credit professionals.<br />

Contact: Email events@cicm.com or call CICM<br />

marketing on T: +44 (0)1780 722902<br />

Venue: Hays, 107 Cheapside, London EC2V 6DN.<br />

28 <strong>April</strong><br />

Corporate Partner Bureau van<br />

Dijk, ‘An afternoon exploring the<br />

current challenges facing credit risk<br />

professionals’.<br />

LONDON<br />

Contact: CICM members can register for free by<br />

emailing bvd@bvdinfo.com with ‘<strong>Credit</strong> event’ in the<br />

subject line.<br />

Venue: The Goldsmith's Centre, 42 Britton Street,<br />

London, EC1M 5AD.<br />

52 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

CM<br />

<strong>Credit</strong> <strong>Management</strong> <strong>magazine</strong> for consumer<br />

and commercial credit professionals<br />




IN DEPTH<br />


ASK THE<br />


GLOBAL<br />

NEWS<br />

LEGAL<br />



TRADE<br />



HR<br />













Your CICM lapel badge demonstrates your<br />

commitment to professionalism and best practice<br />



If you haven’t received your badge<br />

E: cicmmembership@cicm.com<br />




watermill@cicm.com | info@cicm.com<br />

professionalqualifications@cicm.com<br />

events@cicm.com | consultations@cicm.com<br />

cicmq@cicm.com<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 53




THE West Mids Branch held their annual<br />

awards night at Crowne Plaza Hotel, Central<br />

Birmingham, which was considered by all<br />

present to be a huge success.<br />

The event began with drinks at the bar<br />

and an excellent buffet was served so<br />

all 31 attendees were well fed before the<br />

presentations began.<br />

Hays, was represented by West Midlands<br />

Committee member, Hollie Wildman, who<br />

gave a very interesting address on the<br />

employment situation, sponsored the event.<br />

There were prizes for each of the core<br />

subjects at Level 3, some had many winners<br />

with equal marks, very close runners up were<br />

also not forgotten. The prize for the best<br />

Level 5 achievement went to Natalie Brown,<br />

a previous Student of the Year 2013. There<br />

were also many prizes for learners who had<br />

more than one pass in the year.<br />

For the first time, there were joint winners<br />

with Ramon Wolfenden and Amber Edwards<br />

(who unfortunately was ill and could not<br />

attend). Author: Peter Cartwright<br />

54 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



‘OH, The Small Beer Act!’ was one of the<br />

comments that was made to our email flyer<br />

to members inviting them to attend the<br />

Sheffield AGM and hear from our sponsors<br />

Irwin Mitchell LLP on The Small Business,<br />

Enterprise and Employment Act 2015.<br />

After a fabulous networking buffet with<br />

our sponsors the formal business of the<br />

AGM confirmed Chair Laurie Beagle for<br />

a further term (supported by the usual<br />

suspects!) and the committee welcomed<br />

back a new recruit Paula Uttley.<br />

The formal business out of the way<br />

James Hillman from Irwin Mitchell’s<br />

Insolvency team told us about what he<br />

described as a “hoovering up Act to “ensure<br />

that the UK continues to be recognised<br />

globally as a trusted and fair place to do<br />

business”, with particular emphasis on the<br />

effects of Act on creditors and business<br />

generally.<br />

He covered the in the key heading<br />

‘Access to Finance’ how the Act looks to<br />

creating a culture whereby debts are paid<br />

quickly (particularly by larger organisations)<br />

and funding is more readily available<br />

to SMEs and providing the authority to<br />

implement regulations to outlaw provisions<br />

in business contracts prohibiting creditors<br />

assigning debts. He also commended the<br />

huge success of the CICM following years<br />

of campaigning that the Act will finally give<br />

authority to implement regulations that will<br />

require companies to publish information<br />

regarding their payments and terms.<br />

A focus of some of the questions at<br />

the end of the session concerned the new<br />

company filing requirements inter alia to<br />

maintain a register of individuals with control<br />

over the company, corporate directors to<br />

be phased out in five years and a provision<br />

to accelerate strike off process from three<br />

months to two months. This will lead to an<br />

easier life for Companies House which could<br />

inevitably prejudice creditors of a company<br />

whose directors want to avoid debts being<br />

paid with less time for objections.<br />

James finished off by reminding us<br />

that there was plenty more in the Act for<br />

another day, such as the all-important<br />

‘Pubs Code’, Insolvency changes, director<br />

disqualifications and the usual raft of<br />

employment provisions from equal pay to<br />

zero hour contracts!<br />

The meeting closed with Chair Laurie<br />

Beagle formally thanking James and Irwin<br />

Mitchell for hosting the evening at their<br />

Sheffield HQ and reminded members and<br />

guests of the next branch meeting on <strong>Credit</strong><br />

Innovation and Business Finance.<br />

Author: Myron Fedak MCICM<br />



THE West Midlands AGM and quiz night was<br />

well attended with 12 teams of four held at<br />

the Woodman in Birmingham. The evening<br />

was kindly sponsored by Freeths Solicitors<br />

and the winning team was from Curran &<br />

Co. with runners up from Zurich Insurance<br />

Plc. The quizmaster was Graham Morgan<br />

from Enterprise Inns with his assistant Peter<br />

Cartwright of Scorpion.<br />

Author: Susan Byrne.<br />




CICM recognises the importance of Continuing<br />

Professional Development (CPD) for credit professionals<br />

Start your journey to progression today by downloading<br />

the CICM CPD plan from the website www.cicm.com<br />


CPD<br />

1<br />

FULL NAME:<br />

John Graham<br />


Head of Collections<br />


NAME:<br />

Technology Services Group (TSG)<br />


MANAGEMENT: 21 Years<br />

60SECONDS<br />


6 Years<br />



By accident, I was purchasing manager and<br />

was asked to assist when the credit controller<br />

left….21 years later and here I am!<br />


YOU WORK?<br />

The people, TSG have some amazing and<br />

talented staff.<br />


Cash flow is vital to any business, so it’s really<br />

satisfying to get payments on time and to see<br />

the team hit that magic number at the end of<br />

the month.<br />


It depends, anything from a chip butty to a nice<br />

Italian!<br />



I love the hustle and bustle of New York, or a<br />

secluded beach in Adrasan.<br />



Jennifer Saunders for laughs, Danny Dyer for<br />

banter and Adele for music.<br />



Dining out in a nice restaurant with friends.<br />



My special power would be to reduce calories<br />

to zero on all the delicious food we eat and<br />

therefore not gain weight after those restaurant<br />

visits!<br />


LEADER?<br />

The best would be integrity, to always remain<br />

transparent with your team and be honest and<br />

fair in all dealings. The worst would be failure<br />

to recognise every individual in your team is<br />

different.<br />


HERO?<br />

My Dad, he has lived life to the full and always<br />

saw the good in everyone.<br />


Apart from my amazing team, my phone.<br />



A horrendous weekend in Blackpool during the<br />

recent floods.<br />

WITH<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 55




At Hays <strong>Credit</strong> <strong>Management</strong>, our consultants are all affiliate members of<br />

the CICM and understand both the demands you face and the skills you<br />

need to thrive within your industry. We can therefore offer you personalised<br />

career advice and the support that you need.<br />



North London, up to £32,000<br />

This international business has a fast growth of<br />

20-30% year on year with operations across most of the<br />

EMEA. Reporting to the Financial Controller, you will be<br />

responsible for the whole credit function ranging from<br />

SME accounts to large corporates and will involve query<br />

resolution and relationship building. As a key decision<br />

maker, you will make implementations where necessary.<br />

Extensive experience in credit control, particularly<br />

within SME companies is required and implementation<br />

experience would also be desirable. This is an exciting<br />

opportunity to be part of a growing international<br />

business. Ref: 2605315<br />

Contact Hannah East on 020 3465 0020<br />

or email hannah.east@hays.com<br />



London, circa £30,000 + benefits<br />

Due to an internal promotion, a thriving international<br />

media company is seeking a senior credit insurance<br />

specialist to join its growing credit team. Working<br />

closely with credit insurers and managers, this exciting<br />

role involves a large amount of reporting and risk<br />

analysis where you will provide the scope for on-going<br />

challenges and exposure. To be successful, you will<br />

have an analytical mind, exceptional attention to<br />

detail and strong Excel skills. You will also have recent<br />

experience of either working for or dealing with<br />

credit insurers.<br />

Ref: 2687786<br />

Contact Julia Foster on 020 3465 0020<br />

or email julia.foster2@hays.com<br />

This is just a selection of the many opportunities<br />

we have available for credit professionals.<br />

To find out more, visit us online.<br />

hays.co.uk/creditcontrol<br />

56 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management



Hertfordshire, up to £28,000<br />

This large organisation with a reputation for reliability<br />

and quality is looking for an enthusiastic credit controller<br />

to cover maternity leave for a 12 month period. This<br />

market leader has an excellent attitude towards its<br />

employees, having been recognised with the Investor<br />

in People Award. Focusing on maximising the collection<br />

of outstanding debt from 350 accounts, your main<br />

duties will include chasing payments, allocating cash<br />

and accounts reconciliation. You will be a team player<br />

with considerable credit control experience, excellent<br />

customer service and negotiation skills. Ref: 2674736<br />

Contact Emily Oakes on 07872 158536<br />

or email emily.oakes@hays.com<br />



Letchworth, £22,000 + company pension<br />

A fantastic opportunity has arisen for a highly motivated<br />

and accomplished credit controller to join an established<br />

global company within the motor industry. This role has<br />

a strong emphasis on client relationships and customer<br />

service, with a goal to maximise your collection of<br />

revenue. Reporting to the Finance Manager, you will<br />

be responsible for managing multiple supplier accounts,<br />

building a strong relationship with existing clients and<br />

assisting with the setup of payment plans. Ideally, you<br />

will have the ability to think commercially and strong<br />

attention to detail. Ref: 2625170<br />

Contact Dhiren Chauhan on 01582 402099<br />

or email dhiren.chauhan@hays.com<br />



Milton Keynes, £22,000 + bonus<br />

Representing some of the best-known household<br />

names, this company is looking for a motivated<br />

individual to join its target-driven credit control team.<br />

You will be responsible for proactively reducing aged<br />

debt and maintaining an accurate debtor’s ledger.<br />

Having built strong relationships with key clients and<br />

account holders, you will target overdue debt whilst<br />

monitoring and controlling all transactions. You will<br />

have a proven background in credit control and have<br />

strong working knowledge of SAP. Ref: 2672539<br />

Contact Joshua Graham on 01908 870254<br />

or email joshua.graham@hays.com<br />



Newcastle upon Tyne, up to £23,000<br />

Due to a period of expansion and growth, this growing<br />

service based business is seeking an established senior<br />

credit controller. In this role, your main focus will be to<br />

maintain and build relationships with clients ranging<br />

from sole traders to major ‘Blue-Chip’ and public<br />

sector organisations. You will be required to chase<br />

debt via telephone and e-mail and produce monthly<br />

aged debtor’s reports. To be successful, you will have<br />

previous experience of end-to-end credit control with<br />

a construction based business and a strong client focus.<br />

Ref: 2685819<br />

Contact Hasan Hamid on 0191 261 3996<br />

or email hasan.hamid@hays.com<br />



Salford, up to £22,000<br />

An experienced credit controller is required at a leading<br />

telecommunications company to join its well-established<br />

credit team of around six. Reporting directly to the <strong>Credit</strong><br />

Manager, your duties will include contacting customers<br />

via telephone, email and letter ensuring cash collection<br />

targets are met whilst maintaining key relationships.<br />

You will also liaise with internal departments regarding<br />

queries and resolve accordingly. This role requires<br />

an individual with a strong numerical and analytical<br />

mind-set, excellent attention to detail and the ability to<br />

prioritise their work load. Ref: 2542869<br />

Contact Richard Salmon on 0161 236 7272<br />

or email richard.salmon@hays.com<br />



Horwich, £17,000 + benefits<br />

An opportunity has arisen for a confident and proactive<br />

credit controller to join a highly successfully healthcare<br />

organisation. The role will involve maximising cash<br />

collections for your profile of solicitor and insurers<br />

accounts. Liaising with a variety of customer, you will<br />

build and maintain excellent relationships to ensure<br />

repayment of outstanding debt via telephone, email and<br />

written communication channels. Previous background<br />

within a similar role and the ability to communicate<br />

effectively at all levels is essential. Ref: 2694744<br />

Contact Johanna Bretherton on 01942 303990<br />

or email johanna.bretherton@hays.com<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 57

Looking for a<br />

new opportunity?<br />

Jobs in <strong>Credit</strong> is a specialist job site for the credit and collection<br />

industries and carries all the latest credit jobs across a range of<br />

industries, locations and experience.<br />

Keep up to date: register to receive daily job alerts<br />

Find your ideal job: search by job title, industry and location<br />

Find out who’s hiring: search our A-Z of advertisers<br />

Get headhunted: create your profile online now<br />

58 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

Cr£ditWho?<br />

CICM Directory of Services<br />




anthony.cave@cabbell.co.uk<br />




Controlaccount PLC<br />

Compass House, Waterside<br />

Hanbury Road, Bromsgrove<br />

B60 4FD<br />

T: 01527 549522 (Sales dept)<br />

E: sales@controlaccount.com<br />

W:www.controlaccount.com<br />

Controlaccount has over 30 years of <strong>Credit</strong> <strong>Management</strong> and<br />

Debt Recovery experience, helping National and International<br />

SMEs and blue chip organisations, across a wide range of sectors.<br />

We provide a fast, proactive collection service on a no-collection,<br />

no-fee basis, and for some clients a zero cost option,<br />

utilising the late payment act to fund collection procedures. Our<br />

trained collectors take into account your need to recover debts,<br />

whilst maintaining your reputation and preserving customer relationships.<br />

If we can’t recover your outstanding debts through our<br />

collection process, then our service won’t cost you a penny; and<br />

with our additional in-house legal & Trace service as well as our<br />

credit reporting and corporate monitoring services we are ready<br />

to help you every step of the way.<br />


Freeths Solicitors<br />

Third Floor St James’ Building,<br />

61-95 Oxford Street, M1 6FQ<br />

T: +44(0)845 634 2540<br />

F: +44(0)845 634 2541<br />

E: emma.emery@freeths.co.uk<br />

W: www.freeths.co.uk<br />

Freeths is one of the UK’s leading regional law firms with<br />

10 offices across the UK. We have a specialist team that<br />

advises on book debt collection and asset recovery in<br />

insolvency situations and everything in between. We believe our<br />

role is not just to collect your debts but also to increase your<br />

recoveries by working smarter. We have a range of flexible<br />

funding options to suit businesses of any size and advise on<br />

all matters from debt recovery and retention of title to disputes<br />

about the quality of goods and services. For undisputed claims<br />

we can offer low fixed rates or ‘no win no fee’ and we work fast<br />

taking the first steps in recovering your debt the same day. We<br />

are very proud to be the CICM’s Corporate Legal Partner and<br />

to be hosting the CICM Helpline providing free and quick initial<br />

legal advice to CICM members.<br />

Sanders Consulting Associates Ltd<br />

T: +44(0)1525 720226<br />

E: enquiries@chrissandersconsulting.com<br />

W: www.chrissandersconsulting.com<br />

Sanders Consulting is an independent niche consulting firm<br />

specialising in leadership and performance improvement in all<br />

aspects of the order to cash process. Chris Sanders FCICM, the<br />

principal, is well known in the industry with a wealth of experience<br />

in operational credit management, billing, change and business<br />

process improvement. A sought after speaker with cross industry<br />

international experience in the business-to-business and businessto-consumer<br />

markets, his innovative and enthusiastic approach<br />

delivers pragmatic people and process lead solutions and significant<br />

working capital improvements to clients. Sanders Consulting are<br />

proud to manage CICMQ on behalf of and under the supervision<br />

of the CICM.<br />


Premium Collections Limited<br />

Office 3, Caidan House Business Centre, Canal Road,<br />

Timperley, Altrincham, Cheshire, WA14 1TD<br />

T: 0161 962 4695.<br />

F: 0333 121 3843<br />

E: enquiries@premiumcollections.co.uk<br />

W: www.premiumcollections.co.uk<br />

Premium Collections Limited has the credit management solution<br />

to suit you. Operating on a national and international basis we<br />

can tailor a package of products and services to meet your<br />

requirements. Staffed by dedicated professionals with over 60<br />

years combined experience of handling virtually every type of<br />

debt issue, the company was formed in December 2002 and<br />

is owned by our Managing Director, Paul Daine FCICM. Paul’s<br />

particular areas of expertise are the motor finance, insurance<br />

and international debt collection sectors. Services include B2B<br />

collections, B2C collections, international collections, absconder<br />

tracing, asset repossessions, status reporting and litigation<br />

support.<br />


Blaser Mills LLP<br />

Head Office: Park House, 31 London Road,<br />

High Wycombe, Buckinghamshire, HP11 1BZ<br />

T: 01494 478660/478661<br />

E: Jackie Ray jar@blasermills.co.uk or Gary Braathen<br />

gpb@blasermills.co.uk<br />

W: www.blasermills.co.uk<br />

Established in 1888, leading multi-disciplinary law firm Blaser<br />

Mills specialises in services for businesses and individuals.<br />

The Firm has particular expertise in Dispute Resolution and<br />

Debt Recovery working with experienced credit managers and<br />

finance directors providing solutions to both contested and<br />

uncontested claims.<br />

Blaser Mills provides an experienced team including CICM<br />

qualified legal representatives and the Firm is cited in the<br />

Legal 500 law directory based on quality of work and strong<br />

client feedback.<br />

Offices in Aylesbury, London (Central), London (Harrow), Old<br />

Amersham, Rickmansworth, Staines-on-Thames<br />

Court Enforcement Services<br />

Wayne Whitford Director – Business Development<br />

M: 07834 748 183<br />

T: 01992 663 399<br />

E: info@courtenforcementservices.co.uk<br />

W: www.courtenforcementservices.co.uk<br />

We are a new Court Enforcement company that has over 100 years’<br />

experience, of helping credit professionals to enhance both data and<br />

collection performance.<br />

Court Enforcement Services provides faster resolution of unpaid<br />

County Court Judgments (CCJs) over £600 with our free transfer<br />

up service to High Court Enforcement. We offer tailored solutions for<br />

Businesses, DCA’s, Debt Purchasers, Solicitors and Utilities.<br />

As owners of the company we lead and manage all aspects of<br />

the services that are provided on your behalf. Court Enforcement<br />

Services brings a fresh, modern and above all personal customerfocussed<br />

approach to High Court and Civil Court Enforcement.<br />



Breitenweg 6, 6370 Stans, Switzerland<br />

Ms. Melina Schuler – Business Development Manager<br />

T: ++41 41 618 30 54<br />

F: ++41 41 620 90 26<br />

E: m.schuler@mah-international.com<br />

W: www.mah-international.com<br />

M.A.H. is a global leader in Export Debt Collection & Trade<br />

Dispute Resolution Services. Our head office is located<br />

in Stans, our group law office in Zurich. We specialise in<br />

resolving cross-border cases swiftly and amicably (99<br />

percent of our cases are settled out of court).<br />

We have recovered payments from 112 countries on all five<br />

continents for exporters and other B2B customers of all sizes<br />

in all industries. We rank as first choice among international<br />

export companies, export credit insurers, and governmental<br />

organisations.<br />

Our mission is to ensure that all creditors receive full payment<br />

for products or services sold out of the UK without expensive,<br />

stressful, and lengthy litigation.<br />

Contact us to benefit from our personalised, full-package,<br />

No Collection – No Fee services, provided by our qualified<br />

multilingual global negotiators, collection attorneys, and<br />

affiliate local partner law firms in 65 countries.<br />

Lovetts Solicitors<br />

Lovetts, Bramley House, The Guildway,<br />

Old Portsmouth Road, Guildford, Surrey GU3 1LR<br />

T: +44(0)1483 457500<br />

E: info@lovetts.co.uk<br />

W: www.lovetts.co.uk<br />

Lovetts has been recovering debts for 30 years! When you<br />

want the right expertise to recover overdue debts why not use a<br />

specialist? Lovetts’ only line of business is the recovery of<br />

business debts and any resulting commercial litigation.<br />

We provide:<br />

• Letters Before Action, prompting positive outcomes in more<br />

than 80% of cases • Overseas Pre-litigation collections with<br />

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

management system ‘CaseManager’<br />

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

“...All our service expectations have been exceeded...”<br />

“...The online system is particularly useful and is extremely easy<br />

to use... “...Lovetts has a recognisable brand that generates<br />

successful results...”<br />

CoCredo Limited<br />

Missenden Abbey, Great Missenden, Bucks, HP16 0BD<br />

T: 01494 790 600<br />

E: helpdesk@cocredo.com<br />

W: www.cocredo.co.uk<br />

CoCredo were proud winners at the CICM British <strong>Credit</strong> Awards for<br />

‘<strong>Credit</strong> Information Provider of the Year 2014.’ We provide live online<br />

company credit reports and related business information within<br />

the UK and overseas. We have direct feeds from Dun and<br />

Bradstreet, Companies House and other premium providers.<br />

We provide business information on over 228 million companies<br />

across 240 countries. Our information is updated over 500,000<br />

times per day and we have some excellent tracking mechanisms<br />

which provide proactive daily monitoring of changes in<br />

the global information on record. We can offer a wealth of<br />

additional services including D.N.A portfolio management,<br />

CoData marketing information, Consumer and Director Searches.<br />

We pride ourselves in delivering outstanding customer service<br />

offering you unrivalled support and analysis to protect your business.<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 59

Cr£ditWho?<br />

CICM Directory of Services<br />





anthony.cave@cabbell.co.uk<br />


Company Watch<br />

Centurion House, 37 Jewry Street, LONDON. EC3N 2ER<br />

T: +44 (0)20 7043 3300<br />

E: info@companywatch.net<br />

W: www.companywatch.net<br />

What would happen if one of your key customers failed? Do<br />

you rely on company information that is up to 18 months’ old?<br />

Company Watch provides a credit management system that’s<br />

predicted around 90 percent of company failures. Not only<br />

that, our interactive system allows you to input more up-to-date<br />

accounts, and to stress-test company financials to generate an<br />

instantly updated analysis of a company’s financial health. With<br />

a portfolio and email alert system, and a user interface showing<br />

5-year trends along with everything you need to know at a<br />

glance, Company Watch is an invaluable resource in the credit<br />

management process.<br />

Top Service Ltd<br />

2&3 Regents Court, Farmoor Lane, Redditch,<br />

Worcestershire, B98 0SD<br />

T: 0152 750 3990.<br />

E: enquiries@top-service.co.uk<br />

W: www.top-service.co.uk<br />

Top Service is the only credit reference and debt recovery<br />

agency to specialise in the UK construction sector. Top<br />

Service customers benefit from sector specific information,<br />

detailed payment history intelligence and realtime trade<br />

references in addition to standard credit information.<br />

There are currently 3,000 construction sector companies<br />

subscribing to the service, ranging from multi-national<br />

organisations to small family firms. The company prides<br />

itself on high levels of customer service and does not tie<br />

its customers into restrictive contracts. Top Service offers<br />

a 25% discount to all CICM Members as well as four free<br />

credit checks of your choice.<br />

EFCIS Limited t/as ICBA UK<br />

Specialist Trade <strong>Credit</strong> Insurance Broker<br />

The Office, Mill House Farm,<br />

Mill Street, Hastingwood,<br />

Essex, CM17 9JF<br />

T: 01279 437662<br />

E: amoylan@efcis.com<br />

W: www.efcis.com<br />

EFCIS Limited - Trade <strong>Credit</strong> Insurance, Debt Collection,<br />

Dispute Resolution and Legal action for small/medium &<br />

multinational businesses. EFCIS secures limits for clients<br />

where the financials alone do not support the full limit. We are<br />

tenacious when negotiating settlement of claims, securing full<br />

payment for claims and proactively working with our clients in<br />

claims avoidance. We are the industry’s only Broker to develop<br />

policy compliance software to ensure client’s maximum benefit<br />

and protection from the policy. We believe that a well-managed<br />

ledger supports business growth within increased profit and an<br />

improved return on investment.<br />

Experian<br />

The Sir John Peace Building,<br />

Experian Way,<br />

NG2 Business Park,<br />

Nottingham<br />

NG80 1ZZ<br />

T: 0844 481 9920<br />

E: Business.Information@uk.experian.com<br />

W: experian.co.uk/businessiq<br />

Managing commercial credit can be a real challenge. That’s<br />

why we’ve created a business management system called<br />

BusinessIQ – an advanced web portal that meets all your<br />

credit risk assessment, customer management and collection<br />

needs in one easy-to-use integrated platform.<br />

Powered by our intuitive business information – blending<br />

business, director, consumer and payment performance data,<br />

BusinessIQ offers a more informed solution for today's credit<br />

risk challenges. It makes credit management operations far<br />

more sophisticated without adding complexity.<br />

Graydon UK<br />

66 College Road, 2nd Floor,<br />

Hygeia Building, Harrow,<br />

Middlesex, HA1 1BE<br />

T: +44 (0)208 515 1400<br />

E: customerservices@graydon.co.uk<br />

W: www.graydon.co.uk<br />

Graydon UK is a specialist in <strong>Credit</strong> Risk <strong>Management</strong> and<br />

Intelligence, providing access to business information on<br />

over 100 million entities across more than 190 countries. Its<br />

mission is to convert vast amounts of data from diverse data<br />

sources into invaluable information. Based on this, it generates<br />

economic, financial and commercial insights that help its<br />

customers make better business decisions and ultimately gain<br />

competitive advantage.<br />

Graydon is owned by Atradius, Coface and Euler Hermes,<br />

Europe's leading credit insurance organisations. It offers a<br />

comprehensive network of offices and partners worldwide to<br />

ensure a seamless service.<br />

Arthur J. Gallagher<br />

Insurance Brokers Limited<br />

7 Floor, Temple Point, 1 Temple Row<br />

Birmingham B2 5LG<br />

T: 0121 203 3127<br />

W: www.ajginternational.com<br />

With the risk of default by customers still a major threat to UK<br />

and Global companies there has never been a better time to<br />

consider trade credit insurance. Arthur J. Gallagher’s <strong>Credit</strong><br />

and Surety team, which now includes the 2014 – CICM award<br />

winning ‘broker of the year’ team, has considerable experience<br />

and market influence and recognises the unique nature of the<br />

credit insurance market. Our team of experienced professionals<br />

deal with a wide range of businesses, from SME to large<br />

corporate and global risks. Please contact us to discuss how<br />

a specifically tailored trade credit solution can benefit your<br />

business<br />


<strong>Credit</strong>safe Business Solutions<br />

Bryn House, Caerphilly Business Park, Van Rd,<br />

Caerphilly, CF83 3GG<br />

T: 0292 088 6500.<br />

E: ukinfo@creditsafeuk.com<br />

W: www.creditsafeuk.com<br />

<strong>Credit</strong>safe is Europe’s most used supplier of credit &<br />

business intelligence. <strong>Credit</strong>safe have helped over 60,000<br />

customers across Europe and the USA with a range of<br />

products which includes our UK, European and International<br />

Company <strong>Credit</strong> Reports, which reach over 129 countries<br />

and 90m companies; customer and supplier Risk Tracker and<br />

our 3D Ledger product which has captured over 35 million<br />

Trade Payment Data Experiences since its launch in 2012.<br />

All of which will help companies manage their exposure to<br />

risk, make informed decisions in relation to credit limits whilst<br />

looking at how you can identify gaps within your sales ledger<br />

to prioritise collections and leverage sales.<br />


Northburgh House,<br />

10 Northburgh Street,<br />

London,<br />

EC1V 0PP<br />

T: +44 (0)20 7549 5000<br />

E: bvd@bvdinfo.com<br />

W: www.bvdinfo.com<br />

We specialise in company information with extensive company<br />

coverage, financial risk metrics and comprehensive corporate<br />

structures.<br />

Our information helps you make better quality decisions.<br />

•Assess financial risk and corporate stability<br />

•Get insight on the financial health of individual companies and<br />

across your portfolio<br />

•Manage your data more efficiently<br />

Our <strong>Credit</strong> Catalyst combines our international, standardised financial<br />

data with a bespoke credit platform, so you can work more efficiently,<br />

make better quality decisions and spot risk quickly.<br />

•Comprehensive coverage of companies across the globe<br />

•Standardised reports so you can benchmark and compare<br />

companies<br />

•Financial strength indicators from a range of providers<br />

Co-pilot Limited<br />

73 Flask Walk, London, NW3 1ET<br />

T: +44(0) 20 7813 2182<br />

E: info@co-pilot.co.uk<br />

W: www.co-pilot.co.uk<br />

<strong>Credit</strong> Managers who manage large or multiple ledgers have<br />

come to realise that they need to use specialist software to<br />

achieve or maintain performance improvement – be that risk,<br />

collections or both.<br />

For many <strong>Credit</strong> Managers a key question is where to start.<br />

How do you examine and evaluate the options? How and when<br />

do you start the budgeting process? What are the steps?<br />

Co-pilot has advised on credit management software for a<br />

number of years. We have good knowledge of the available<br />

solutions, what’s good, how they work and what type of<br />

solution best fits given situations. We combine this with<br />

considerable experience of credit management Best Practice<br />

so that you can pull everything together into one place and<br />

achieve a flexible and sustainable position going forward.<br />

We work with you through a structured evaluation process<br />

which is designed to enable you to have a clear view of<br />

what you can achieve going forward, what is practicable, the<br />

business case implications, the preferred supplier(s) and what<br />

the implementation process would sensibly look like (in our<br />

opinion, there is no such thing as “Plug and play”).<br />

60 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management

Cr£ditWho?<br />

CICM Directory of Services<br />




anthony.cave@cabbell.co.uk<br />

Prof. Schumann GmbH<br />

innovative information systems<br />

Weender Landstr. 23, 37130 Göttingen, Germany<br />

T: +49 551 38315 0 F: +49 551 38315 20<br />

E: info@prof-schumann.de W: www.prof-schumann.de<br />

Our <strong>Credit</strong> Application Manager (CAM) is a leading credit<br />

risk management solution for major corporations, as well as<br />

insurance, factoring and leasing companies. In their daily work,<br />

CAM allows credit and sales managers to call up all the available<br />

information about a customer or risk in a few seconds for decision<br />

support: real-time data from wherever they are. CAM keeps an<br />

eye on customers whose payment behaviour stands out or who<br />

have overdue invoices! CAM provides an up-to-date forecast<br />

of customers’ payments. Additionally, CAM has automated<br />

interfaces for connecting to leading suppliers of company credit<br />

data, payment record pools and commercial credit insurers. The<br />

system is characterised by its great flexibility. We have years<br />

of experience in consulting and software support for accounts<br />

receivable management.<br />

Credica Ltd<br />

Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT<br />

T: 01235 856400<br />

E: info@credica.co.uk<br />

W: www.credica.co.uk<br />

Our highly configurable and extremely cost effective Collections<br />

and Query <strong>Management</strong> System has been designed with 3 goals<br />

in mind:<br />

Evolving over 15 years and driven by the input of 1000s of<br />

<strong>Credit</strong> Professionals across the UK and Europe, our system is<br />

successfully providing significant and measurable benefits for our<br />

diverse portfolio of clients.<br />

We would love to hear from you if you feel you would benefit from<br />

our ‘no nonsense’ and human approach to computer software.<br />

STA International<br />

3rd Floor, Colman House,<br />

King Street , Maidstone , ME14 1DN<br />

T: +44(0)844 324 0660.<br />

E: enquiries@staonline.com<br />

W: http://www.stainternational.com<br />

Getting Business Paid<br />

STA is an award winning B2B and B2C debt collection, receivables<br />

management and tracing supplier. ISO9001 quality accredited,<br />

and with the CSAs Collector Accreditation Initiative, duty-of-care<br />

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

collected from 138 countries worldwide; with Your Debts Online<br />

giving you transparent access to our collection success and the<br />

cost of each and account placed with us for collection. Collected<br />

funds are remitted via BACS. We look forward to getting your<br />

business paid.<br />

Data Interconnect Ltd<br />

Unit 7, Radcot Estate, 7 Park Rd, Faringdon,<br />

Oxfordshire. SN7 7BP<br />

T: +44 (0) 1367 245777<br />

F: +44 (0) 1367 240011<br />

E: sales@datainterconnect.co.uk<br />

W: www.datainterconnect.com<br />

Data Interconnect provides integrated e-billing and collection<br />

solutions via its document delivery web portal, WebSend.<br />

By providing improved Customer Experience and Customer<br />

Satisfaction, with enhanced levels of communication between<br />

both parties, we can substantially speed up your collection<br />

processes.<br />


Sidetrade UK: Amadeus House,<br />

Floral Street, Covent Garden, London WC2E 9DP<br />

T: +44 203 608 9850<br />

E: Samantha@sidetrade.com W: www.sidetrade.co.uk<br />

Sidetrade offers companies the opportunity to digitise the<br />

management of their financial relationships with customers.<br />

Sidetrade's market-leading solutions, complementary to ERPs,<br />

meet the challenges of securing what is often a company's<br />

largest asset, its accounts receivable, by reducing late payments<br />

and controlling customer risk. With sales in 65 countries and 34<br />

million invoices managed annually, the Group enables 69,000<br />

users from companies of all sizes and all sectors to collaborate<br />

via its cloud solution and accelerate cash-flow generation.<br />


OnGuard<br />

40 Gracechurch Street, London, EC3V 0BT<br />

T: 0203 4403 825<br />

E: info@onguard.com W: www.onguard.co.uk<br />

OnGuard is a leading supplier of sophisticated software in which<br />

<strong>Credit</strong>, Collections, Complaints and Cash Allocation can be<br />

integrated in a single solution. With customers around the world<br />

we offer a truly global, proven, low-risk high-value proposition<br />

which focusses on maintaining positive customer relationships<br />

helping to contribute to improving your competitive edge. Our<br />

integrated accounts receivables solution enables you to achieve<br />

faster payment of your invoices plus the benefits of improved<br />

insights into customer behaviour and valuable time savings. This<br />

not only results in process optimisation, cost savings, a lower<br />

DSO and reduced write-offs but contributes to a stronger,<br />

positive relationship with your valued customers. See more at<br />

www.onguard.co.uk.<br />

Gravity London<br />

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

T: +44(0)207 330 8888.<br />

E: sfeast@gravitylondon.com<br />

W: www.gravitylondon.com<br />

Gravity is an award winning full service PR and advertising<br />

business that is regularly benchmarked as being one of the best<br />

in its field. It has a particular expertise in the credit sector, building<br />

long-term relationships with some of the industry’s best-known<br />

brands working on often challenging briefs. As the partner<br />

agency for the <strong>Credit</strong> Services Association (CSA) for the past 13<br />

years, and the Chartered Institute of <strong>Credit</strong> <strong>Management</strong> since<br />

2006, it understands the key issues affecting the credit industry<br />

and what works and what doesn’t in supporting its clients in the<br />

media and beyond.<br />


Safe Computing Limited<br />

20, Freeschool Lane, Leicester, LE1 4FY<br />

T: 0844 583 2134<br />

E: info@safecomputing.co.uk<br />

W: www.safe-creditcontrol.co.uk<br />

Designed to manage your customer credit accounts effectively,<br />

Safe credit control enables your credit management team to:<br />





Our unique approach is centred on changing the perception of<br />

the credit control function, from a series of reactive processes<br />

to proactive ones. <strong>Credit</strong> controllers are traditionally regarded<br />

as an essential element in business, to chase late payments<br />

and respond to customer queries. Safe credit control has<br />

taken the concepts of customer relationship management<br />

(CRM) and applied it to the credit control function, enabling<br />

a softer, service orientated team of customer service<br />

representatives.<br />

Tinubu Square UK<br />

Holland House, 4 Bury Street, London EC3A 5AW<br />

T: +44 (0)207 469 2577<br />

E: uksales@tinubu.com W: www.tinubu.com<br />

Tinubu Square’s mission is to control and minimise trade credit<br />

risk. Founded in 2001, Tinubu Square has become a trusted<br />

source of trade credit intelligence for credit insurance leaders<br />

and now offers the service to corporate customers enabling<br />

them to assess their credit risk. Tinubu Square’s B2B <strong>Credit</strong><br />

Risk Intelligence solutions – including Tinubu Risk <strong>Management</strong><br />

Center (RMC) cloud-based SaaS platform, Tinubu <strong>Credit</strong> Intelligence<br />

service with real-time credit risk intelligence reporting<br />

and Tinubu Risk Analyst advisory service provide companies<br />

with an accurate picture of their customers’ financial health from<br />

sales and marketing through the entire order-to-cash cycle.<br />

Based in Paris, Tinubu Square has offices in London, Brussels,<br />

Singapore and Mumbai.<br />

Begbies Traynor Group plc<br />

340 Deansgate, Manchester, M3 4LY.<br />

T: 0161 837 1700<br />

F: 08432181728<br />

E: michael.locke@Begbies-Traynor.com<br />

W: www.begbies-traynorgroup.com<br />

Begbies Traynor is the UK’s leading independent Corporate<br />

Rescue and Recovery practice, handling more than 1000 cases<br />

per year. We offer a bespoke solution for credit professionals, that<br />

is used by many of the UK’s leading companies. Benefits of this<br />

system include;<br />

• Access to a bespoke online case management system<br />

• UK coverage at creditors meetings;<br />

• Assistance with retention of title claims;<br />

• Proactive monitoring of dividend prospects<br />

• Advice on antecedent transactions;<br />

• A dedicated relationship manager to assist with your insolvency<br />

portfolio and answer any queries.<br />

The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 61

Cr£ditWho?<br />

CICM Directory of Services<br />




anthony.cave@cabbell.co.uk<br />



Chartered Institute of<br />

<strong>Credit</strong> <strong>Management</strong> (CICM)<br />

The Water Mill, Station Road, South Luffenham,<br />

OAKHAM, LE15 8NB<br />

T: 01780 722910 E: info@cicm.com<br />

W: www.cicm.com<br />

The Chartered Institute of <strong>Credit</strong> <strong>Management</strong> (CICM) is Europe’s<br />

largest credit management organisation. The trusted leader<br />

in expertise for all credit matters, it represents the profession<br />

across trade, consumer, and export credit, and all credit-related<br />

services. Formed over 70 years ago, it is the only such organisation<br />

accredited by Ofqual and it offers a comprehensive<br />

range of services and bespoke solutions for the credit professional<br />

(www.cicm.com) as well as services and advice for the<br />

wider business community (www.creditmanagement.org.uk).<br />



Portfolio <strong>Credit</strong> Control<br />

Portfolio <strong>Credit</strong> Control, New Liverpool House,<br />

15 Eldon Street, London, EC2M 7LD<br />

T: 0207 650 3199<br />

E: recruitment@portfoliocreditcontrol.com<br />

W: www.portfoliocreditcontrol.com<br />

Portfolio <strong>Credit</strong> Control, solely specialises in the recruitment of<br />

permanent, temporary and contract <strong>Credit</strong> Control, Accounts<br />

Receivable and Collections staff. Part of an award winning<br />

recruiter we speak to and meet credit controllers all day everyday<br />

understanding their skills and backgrounds to provide you with tried<br />

and tested credit control professionals. We have achieved enormous<br />

growth because we offer a uniquely specialist approach to our<br />

clients, with a commitment to service delivery that exceeds your<br />

expectations every single time.<br />

Hays <strong>Credit</strong> <strong>Management</strong><br />

107 Cheapside, London, EC2V 6DN<br />

T: 07834 260029<br />

E: karen.young@hays.com<br />

W: www.hays.co.uk/creditcontrol<br />

Hays <strong>Credit</strong> <strong>Management</strong> is working in partnership with the CICM<br />

and specialise in placing experts into credit control jobs and<br />

credit management jobs. Hays understands the demands of this<br />

challenging environment and the skills required to thrive within<br />

it. Whatever your needs, we have temporary, permanent and<br />

contract based opportunities to find your ideal role. Our candidate<br />

registration process is unrivalled, including face-to-face screening<br />

interviews and a credit control skills test developed exclusively<br />

for Hays by the CICM. We offer CICM members a priority service<br />

and can provide advice across a wide spectrum of job search and<br />

recruitment issues.<br />


CICMos (CICM Online Services)<br />


T: 01780 722 907.<br />

E: training@cicm.com<br />

W: www.cicmos.com<br />

CICMOS has been designed to help busy credit managers by<br />

providing them with a suite of online tools to support and<br />

quickly develop their teams. The virtual learning centre is an<br />

open platform system, accessed via the website, which is<br />

easy to use, modular and each module is completely optional,<br />

which means the system can be tailored to suit specific<br />

requirements and time constraints. This wide ranging system<br />

is more than just a training tool it is easy to set up and use<br />

and can be accessed securely via the CICMOS website for a<br />

low annual subscription.<br />

Jobs in <strong>Credit</strong><br />

Foxhall Business Centre, Foxhall Road,<br />

Nottingham, NG7 6LH<br />

T: 0207 316 9533<br />

E: info@jobsincredit.com<br />

W: www.jobsincredit.com<br />

Established in 2004, jobsincredit.com is the only UK job board<br />

dedicated to the credit and collections industry. The site attracts<br />

over 30,000 monthly visits, and advertises over 1,000 roles from<br />

a broad mix of employers and recruiters. For candidates our<br />

service is free of charge, and offers an easy way of searching<br />

for and securing your next role. For employers jobsincredit.com<br />

offers the most cost effective recruitment method, no matter the<br />

seniority. Many leading employers are clients, including Barclays,<br />

RBS, Deloitte, Centrica Barclaycard. For more information about<br />

advertising your vacancy, please visit www.jobsincredit.com<br />

SmartSearch<br />

Station Court, Station Road, Guiseley, Leeds, LS20 8EY<br />

T: 0113 238 7660<br />

F: 0113 238 7669<br />

E: info@smartsearchuk.com<br />

W: www.smartsearchuk.com<br />

SmartSearch is the first system to bring together Business<br />

and Individual AML Verification on a single platform. Our data<br />

providers Experian and Dow Jones provide SmartSearch<br />

access to over one billion data items enabling AML<br />

verification in all Markets. AML verification data subjects are<br />

automatically screened against the latest Sanction, PEP and<br />

SIP Lists. Ongoing monitoring for the duration of your contract<br />

is provided at no extra cost. Efficient processes; less than 3<br />

minutes to execute a business AML check and a sub 60 second<br />

individual check. Why not let your Compliance Team test drive<br />

SmartSearch for 14 days free of charge? (Ref:CM101)<br />

The recognised standard<br />

in <strong>Credit</strong> <strong>Management</strong><br />



To find out more about becoming a member of the<br />

largest professional credit management organisation in<br />

Europe, and the full benefits that membership offers,<br />

call 01780722903, visit www.cicm.com or email<br />

cicmmembership@cicm.com<br />


CM<br />

<strong>Credit</strong> <strong>Management</strong><br />

<strong>magazine</strong> for consumer<br />

and commercial credit<br />

professionals<br />

62 <strong>April</strong> <strong>2016</strong> www.cicm.com<br />

The recognised standard in credit management


CM<br />




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

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The CICM is registered with the UK’s Information<br />

Commissioner under the Data Protection Act<br />

1998 (the "Act"). All the data contained on this<br />

form, is held and processed electronically in<br />

accordance with the Act.<br />

The Institute holds and processes your personal<br />

data in order to give you the full benefits of being<br />

a member and for administrative purposes.<br />

We might from time to time notify you by post or<br />

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If you subsequently decide that you do not<br />

wish to receive such notifications please email<br />

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The Data Protection Act gives you the right at<br />

any time to see a copy of all the data that we<br />

hold about you. If you would like a copy, please<br />

send a letter requesting this information together<br />

with a cheque for £10 payable to :<br />

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Road, South Luffenham, OAKHAM, LE15 8NB.<br />



ACROSS:<br />

1. Piquant<br />

6. Makes lace<br />

10. Rind<br />

14. Small boat<br />

15. Unit of land<br />

16. Apiary<br />

17. A formal charge of wrongdoing<br />

19. Notion<br />

20. Harvester<br />

21. Clunker<br />

22. Focusing glass<br />

23. Coil of yarn<br />

25. Our planet<br />

26. Barely managed<br />

30. Supernatural<br />

32. Goddess of divine retribution<br />

35. Enfold<br />

DOWN:<br />

1. Stigma<br />

2. Rate<br />

3. Ancient Peruvian<br />

4. Masterstroke<br />

5. Affirmatives<br />

6. Make lace<br />

7. Sour<br />

8. Beat thoroughly<br />

9. Transmit<br />

10. Relating to postage stamps<br />

11. Duck down<br />

12. What's happening<br />

13. Tether<br />

18. Biblical boat<br />

24. Dawn goddess<br />

25. Young eel<br />

26. Terminates<br />

27. Retain<br />

28. Arab chieftain<br />

39. Like a god<br />

40. Cloudburst<br />

41. Pixies<br />

43. Big ape<br />

44. Palace<br />

46. Prompts<br />

47. Pizazz<br />

50. Bog hemp<br />

53. Great affection<br />

54. Tavern<br />

55. Straight<br />

60. Basic unit of money in China<br />

61. Pampering<br />

63. Sweeping story<br />

64. How old we are<br />

65. Shelter<br />

66. Depend<br />

67. Arid<br />

68. Secret meeting<br />

29. Inadequacy<br />

31. Annul<br />

33. Indian instrument<br />

34. Frosts<br />

36. Humdinger<br />

37. Leer at<br />

38. Legumes<br />

42. Weird<br />

43. Precious stone<br />

45. Pantry<br />

47. Aviator<br />

48. Jeweler's glass<br />

49. Utilize<br />

51. Sick<br />

52. One more than seven<br />

54. Partiality<br />

56. Close<br />

57. Covetousness<br />

58. Air force heroes<br />

59. Lease<br />

62. Utilize<br />

CLOSING DATE: 11 <strong>April</strong> <strong>2016</strong><br />


Steven Swallow, Jane Abramson MCICM and Rabecca Gordon.<br />

For the chance of winning £20, forward your completed solution to:<br />

Art Editor, Andrew Morris, Chartered Institute of <strong>Credit</strong> <strong>Management</strong>,<br />

The Water Mill, Station Road, South Luffenham, OAKHAM, LE15 8NB.<br />






The recognised standard in credit management<br />

www.cicm.com <strong>April</strong> <strong>2016</strong> 63

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