June 2017 Credit Management magazine

credit

The CICM magazine for consumer and commercial credit professionals

CM

CREDIT MANAGEMENT

JUNE 2017 £10.00

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

STANDING

TALL

ARE WOMEN BREAKING THROUGH

THE GLASS CEILING IN CREDIT?


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CONTENTS

JUNE

2017

www.cicm.com

REGULARS

4 Editor’s column

6 News

14 CICMQ news

24 Legal Matters - DWF

28 International Trade

48 HR Matters

50 Forthcoming Events

54 New members

59 Cr£ditWho? directory

63 Crossword

18 COVER FEATURE

XX

FEATURES

11 - INSOLVENCY

David Kerr MCICM looks at how receiverships

are alive and kicking in the property sector.

26 - OUTSTANDING MATTERS

Is DSO an outdated measure of risk and

performance? Nigel Fields answers the question.

12 - VIEW FROM THE CHAIR

The upcoming General Election and Brexit

negotiations should be seen as an opportunity,

says Laure Beagle.

13 - BENCH PRESS

Amir Ali takes a closer look at money claims

and the evolution of civil justice.

16 - TEEING UP EDUCATION

The impact of the shake-up in education

following the last Budget will see the

introduction of T-Levels. Karen Young explains

their significance.

27 - TRADE TALK

What is Britain's position in future negotiations

with the EU over trade deals? Lesley Batchelor

delves into the various scenarios.

30 - LEGAL MATTERS

When professional privilege was overlooked in

cross-border insolvencies, Peter Walker looks at

how the Court of Appeal Judges reacted.

32 - CREDIT CONUNDRUM

Michael Feldwick examines the numerous

challenges facing receivables financing and

factoring companies.

30 LEGAL MATTERS

17 - INFORMATION AND TRUST

Matt Davies discusses the ABFA's work with the

ICAEW and a new guide.

18 - WOMEN IN CREDIT

Sean Feast talks to a number of leading

women in the credit industry about the gender

imbalance.

CICM GOVERNANCE

40 - COUNTRY FOCUS

Adam Bernstein continues his country focus

series with a look at the opportunities in South

Africa.

43 - EDUCATION

Credit management apprenticeships myths

and facts.

40 COUNTRY FOCUS

PRESIDENT

Stephen Baister FCICM

CHIEF EXECUTIVE

Philip King FCICM CdipAF MBA

EXECUTIVE BOARD

Laurie Beagle FCICM – Chair

Glen Bullivant FCICM

Sue Chapple FCICM

Larry Coltman FCICM

David Thornley FCICM(Grad) – Treasurer

Pete Whitmore FCICM – Vice Chair

ADVISORY COUNCIL

Laurie Beagle FCICM

Jason Braidwood FCICM(Grad)

Glen Bullivant FCICM

Sue Chapple FCICM

Larry Coltman FCICM

Kim Delaney MCICM

Victoria Herd FCICM(Grad)

Edward Judge FCICM

Christelle Madie MCICM(Grad)

Debbie Nolan FCICM

Bryony Pettifor FCICM(Grad)

Allan Poole MCICM

Phil Rice FCICM

Charlie Robertson FCICM

Chris Sanders FCICM

Richard Seadon FCICM

David Thornley FCICM(Grad)

Debra Weston FCICM

Pete Whitmore FCICM

The Recognised Standard

www.cicm.com June 2017 3


CREDIT MANAGEMENT

CM

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

THE

EDITOR’S

COLUMN

TAKING MY LIFE

IN MY HANDS

WOMEN at work. It’s a dangerous

subject for any man to tackle.

I recall a report that came out last

year that led to a deluge of media

coverage around the magnificent seven – the

seven women bosses of the FTSE 100. They

included bosses at Whitbread, GSK, Severn

Trent, Kingfisher, Imperial Tobacco, EasyJet,

and The Royal Mail.

I remember the news being extraordinary

because of the way it was reported, as

though these women must have superpowers

for daring to take the men on at their own

game. I remember also thinking that if there

are women in charge of only seven of the top

100 businesses, that means that men are in

charge of the other 93! At the time, there were

still twice as many men named John who were

CEOs or Chairmen of FTSE 100 companies as

there were women of all names.

When Cranfield University issued its

Female FTSE Report in July 2016, the overall

percentage of women on FTSE boards had

increased compared to 2015. Yet not all was

quite what it seemed: while the percentage of

women on the FTSE 100 had increased to 26

percent, and to 20.4 percent on the FTSE 250,

the rate of progress had slowed. Lord Davies’

target of 33 percent by 2020 seemed as

distant as ever. Most interesting to me was the

comment: ‘The pipeline of female talent needs

to be addressed with urgency’.

Perhaps the same applies to the credit

industry. While I don’t have any specific

statistics to hand, I would imagine that the

number of women in senior roles in credit

mirrors the sort of figures in the FTSE.

Certainly our panel of experts think so (see

article in page 18) and have good insight as

to why this might be and what can be done

about it. More importantly, perhaps, they

similarly recognise that for that position to

change, we need to create and nurture a new

pipeline of talent, to create the leaders of

tomorrow.

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

Publisher

Chartered Institute of Credit Management

The Water Mill

Station Road

South Luffenham

OAKHAM, LE15 8NB

Telephone: 01780 722910

Fax: 01780 721333

Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor

Sean Feast

Deputy Editor

Alex Simmons

Art Editor

Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Tom Berger, Imogen Hart and Iona Yadallee

Advertising

Anthony Cave

Telephone: 0203 603 7934

Email: anthony.cave@cabbell.co.uk

Printers

Warners (Midlands) Plc

2017 subscriptions

UK: £90 per annum

International: £115 per annum

Single copies: £10.00

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

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

Credit Management is distributed to the entire UK and international CICM

membership, as well as additional subscribers

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

magazine do not, unless stated, reflect those of the Chartered Institute of Credit Management. The

Editor reserves the right to abbreviate letters if necessary. The Institute is registered as a charity. The

mark ‘Credit Management’ is a registered trade mark of the Chartered Institute of Credit Management.

4

June 2017 www.cicm.com

The Recognised Standard


THE

CREDIT CONTROL

RECRUITMENT

SPECIALISTS

www.portfoliocreditcontrol.com

Portfolio Credit Control are committed to supporting the CICM

and the Credit Control industry, not by just recruiting the

best credit controllers in the market but providing Credit

Managers and teams with the tools to ensure they

can attractand retain the best talent in the industry.

Portfolio Credit Control have compiled afreedefinitive

detailed salaryguide for 2017/2018 for London and

the Home Counties to help you when benchmarking

salaries within your team or for when recruiting your next

vacancy. Please contact one of our specialist consultants to

request acopy of the guide today.

Call the Credit

Control Specialists

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The Recognised Standard

www.cicm.com June 2017 5


CMNEWS

A

round-up

of news stories

from the world

of consumer and

commercial

credit.

By Sean Feast and Alex Simmons

NEW HIGHS IN UK

BUSINESS CONFIDENCE

THE manufacturing sector is acting

as the primary driving force behind

business confidence in the UK,

according to the latest results (Q1 2017)

from the UK’s Credit Managers’ Index (CMI).

The Index also suggests a reduction in

market volatility with overall confidence and

business growth in both the manufacturing

and services sectors remaining high.

The 1.5-point rise experienced in

manufacturing sees it close at 62.7, an alltime

CMI high. The result also represents a

3.7-point year-on-year rise and the second

successive quarter that the sector has

improved. This indicates the positive effect

that currency fluctuations are having on

the UK’s exporting market since the Brexit

referendum.

The CMI’s headline figure, however, has

closed down 0.6 points to finish at 59.2.

This was primarily the result of a 1.6-point

reduction in the services sector, which closed

down at 57.5. Despite decreasing, the results

– which follow Q4 2016’s increases – are

broadly flat. The headline figure, for example,

“Reducing financial volatility

does not mean credit

professionals should let their

guards down and increased

vigilance in credit and

cashflow is of increasing

importance”

- Philip King FCICM

Philip King

remains above a 59.0-point threshold and

marks only the seventh time (and second

successive quarterly result) in the CMI’s

history that is above this threshold.

The survey also found that, with the

current uncertainties of global economics,

almost half (49 percent) of respondents

were using intelligence tools to identify risk

against a strategy of extending credit terms

to encourage growth. By comparison, only

9.4 percent said that they were taking a

conservative approach to credit management

and reducing limits across the board. When

asked if they were being more vigilant about

credit management now than during the

recession, 57 percent said it was about the

same, a third (31 percent) were more vigilant

but 12 percent thought the pressure had

lessened.

Philip King, Chief Executive of the CICM,

says the latest results are encouraging but

warns against overconfidence: “Reducing

financial volatility does not mean credit

professionals should let their guards down

and increased vigilance in credit and cashflow

is of increasing importance,” he says. “This is

especially so with negotiations for Brexit and

the upcoming General Election, which could,

and probably will, see increasing currency

fluctuations that affect our businesses in a

variety of different ways.

“Being unprepared for these fluctuations,

particularly those that have international

portfolios, could see businesses caught out

and finding themselves in extremely difficult

financial positions,” he adds.

The CMI also reports on confidence

regionally: Scotland is the only sector whose

result falls below the desired 52-point

threshold, closing down at 50.8; London

remains steady at 55.9; and seven regions

(up one from Q4 2016) are reporting results

above 60.0, with Northern Ireland’s 68.3 highly

commendable bearing in mind its fall below

the 52-point threshold in the Q4 2016.

Looking deeper into the CMI’s sectorspecific

results (it reports on 19 sectors),

Banks and Basic Resources are flashing

warning lights after both closed under 40.0

points; Telecoms, Retail and Travel and

Leisure all reported CMI results of 50.0,

which is lower than desired; while 14 sectors

reported positive results above 52.0, including

Healthcare, the sector leading the CMI count

at 70.0.

>WHISKEY GALORE

Business Growth Fund (BGF) has invested £5 million in an Irish

business that distils whiskey. London-based Renegade Spirits will

use the funds to scale up production of single malt whiskey at its

distillery in Waterford, Ireland. This latest investment marks the

second wave of growth for Renegade, having purchased Waterford’s

former Guinness brewery in December 2014 for conversion into a

modern distillery. To date, BGF has invested £1.2 billion in over 175

companies and claims it was the UK’s most active investor in 2016,

providing £387 million of funding to SMEs.

businessgrowthfund.co.uk

>REGULATION BOARD

The Board of the Financial Conduct Authority (FCA) has appointed an

additional six members to its FCA’s Regulatory Decisions Committee

(RDC). The committee is responsible for taking certain regulatory

decisions relating to enforcement and supervisory actions, and

firm authorisation and individual approval applications. The newest

members appointed to the RDC are Karen Johnston and Nick Lord.

They join Stuart McIntosh, Philip Marsden, Robin Mason and Malcolm

Nicholson who were appointed last year. Membership is drawn from

across a spectrum of business, consumer and industry experience.

fca.org.uk

6 June 2017 www.cicm.com

The Recognised Standard


NEWS

IN BRIEF

SUPPLY CHAINS IN

DANGER OF BREAKING DOWN

A new report suggests that more than a third

of small businesses have suffered a collapse

in the supply chain in the last 12 months, and

the situation is getting worse.

In the latest Supply Chain Funding index

(SCFi), published by YouGov and sponsored

by funding specialist URICA, the index fell

from 6.6 to 6.2, and confidence continues to

be impacted. In the same survey, however,

two-thirds of businesses expect turnover to

increase over the next twelve months; almost

a third expect turnover to increase by more

than ten percent.

Despite this apparent bullishness of the

SME sector, Dr John Ashcroft, an influential

economist, believes that many small firms

are walking a tightrope and supply chains

are becoming flimsier: “If the index slumps

further towards 5.5 I fear for the welfare of

many SMEs in the UK and their capacity to

capitalise on growth opportunities.”

Lindsay Whitelaw, chair and founder

of URICA, is similarly concerned: “What

the index tells us is extremely worrying for

businesses that are forecasting growth while,

at the same time, admitting their supply

chains are shaky. Many of these businesses

will see their plans wrecked by failing supply

chains. I genuinely believe if we can move

the index up by just ten percent we will see

a three percent improvement in growth and

productivity.”

The Supply Chain Funding index (SCFi)

measures the condition of business’ supply

chains (on a score of between 0 and ten),

taking into account its strength, payment and

credit terms, and forecasted growth.

scfindex.com

BOTTOM FALLS OUT OF

THE SPENDING BAG

CONSUMER spending growth fell to a threeyear

low in the first quarter of 2017, in a sign

that rising prices are hitting the public’s wallet,

according to research by Visa.

The rate of growth of consumer spending

slipped annually from 2.7 percent at the end

of 2016 to 0.9 percent in the first quarter of

the year, the weakest quarter since the end of

2013.

The growth rate dropped to 0.7 percent

alone in March, according to the Visa UK

Consumer Spending Index. However,

consumers have still been digging into their

wallets but mainly online with spending

through e-commerce channels increasing by

8.2 percent in March, up from three percent in

February 2017. This was the sharpest rate of

growth since last November.

In comparison, spending on the high street

declined 1.3 percent annually, but that was

an improvement on the 3.2 percent decline

recorded in February.

Kevin Jenkins, UK & Ireland Managing Director

at Visa, says there were still pockets of growth

in spending: “The leisure and hospitality

sectors have seen growth of 7.2 percent and

four percent as the index confirms an ongoing

trend of consumers prioritising experiences as

spend on food, clothing and household goods

continued to trail behind.” visa.co.uk

BRIDGING THE APP

Bridging lender Henley Finance has launched

a new App as it looks to make applying for

finance for property development easier.

The company claims that the App is the first

of its kind from a bridging finance company.

It aims to make the registration process

straightforward for new and existing clients,

while the app will also contain a ‘tool box’ for

the professional property developer which will

include a ‘price-per-square-foot calculator’ and

a ‘loan-to-value calculator’. The app will be free

to download from the App Store.

henleyfinance.co.uk

GROWING PAINS

The latest trade statistics from the Office of

National Statistics show that between Q4 2016

and Q1 2017, the total trade deficit (goods

and services) widened by £5.7 billion to

£10.5 billion; this followed a sharp narrowing

in Q4. The UK’s total trade deficit (goods and

services) widened by £2.3 billion between

February and March 2017 to £4.9 billion,

contributing nearly half of the quarterly deficit.

ons.gov.uk

CLOSE ENCOUNTER

Novitas, the Salisbury-based provider of loans

to the legal sector, will become part of Close

Brothers Invoice Finance and Rentals, following

an acquisition that is expected to strengthen

the merchant banking group’s existing offering.

Novitas provides working capital for law firms

as well as loans to their clients purchasing

specific legal services. Both lenders expect a

strong growth in the legal funding sector.

novitasloans.co.uk

BAG AND BOX

METRO Bank has provided a £11.67 million

debt facility to allow a pub operator, Cirrus

Inns, to purchase the freeholds of the Cross

Keys in Chelsea, the Sands End in Fulham as

well as the free-of-tie lease of Brown Cow, also

in Fulham. The purchases will expand Cirrus

Inns’ London estate to five pubs with 23 overall.

The independent pub operator also raised an

additional £10 million of equity, which went

towards the purchases and will be used for

future growth.

metrobankonline.co.uk/business

HEAD OF DEVELOPMENT

Rimilia has appointed Stephen Halliday as Head

of Development, with responsibility for driving

development of Rimilia’s financial solutions

and supporting the company’s programme of

investment in the latest technologies for robotic

process automation. Stephen has 17 years’

experience in finance and development: “After

almost two decades of working with blue-chip

utility and carrier logistics businesses, I have

plenty of first-hand experience of the problems

faced each day by finance teams,” he says.

rimilia.com

The Recognised Standard

www.cicm.com June 2017 7


NEWS

A new report has been published that

sets out a recommended delivery plan for

consolidating three payment systems and

their operators: Bacs Payment Schemes

(BPSL); Cheque and Credit Clearing Company

(C&CCC); and the Faster Payments Scheme

(FPSL).

The consolidation aims to further develop

the capability and capacity of the operators

by bringing them within a single organisation

and is intended to reduce the complexity and

costs of having three separate retail payment

system operators (PSOs).

This single entity would also become

responsible for delivering the next stage

of the development of the New Payments

Architecture (NPA), an industry-led initiative

that aims to increase competition and

resilience as well as enhance innovation

across the payments and banking industry.

THREE INTO ONE WILL GO

The plan was created by the PSO Delivery

Group, an independently chaired body set up

by the Payment Systems Regulator (PSR) and

the Bank of England. The plan now needs to

be reviewed and agreed by the boards of the

three operators. The PSR and the Bank of

England reviewed the Delivery Group’s report

before publication from the perspective of their

respective objectives and duties.

Hannah Nixon, Managing Director of the

PSR, says the report sets out a compelling

approach to deliver the new PSO which should

support the Forum’s vision: “The consolidation

can help facilitate the safe and secure

transition to, and management of, the new NPA

which we believe could deliver more dynamic

competition and innovation in payments.

Consumers will also benefit from new entrants

coming into the market and offering users of

payment services new, innovative products.” psr.org.uk

COMPLAINTS ARE

ON THE RISE

THE FCA has published the first set

of data on the number of complaints

reported by firms under new rules which

came into force on 30 June 2016.

The total number of complaints reported

by firms in the second half of 2016 was just

over three million. This number is higher than

previous reporting periods because under

the FCA’s new rules all complaints are now

captured in the data.

The data reflects the fact that under the

new rules, financial services firms have longer

to resolve complaints less formally. Firms now

have three days to address a complaint to a

consumer’s satisfaction; previously they had

as little as 24 hours.

The FCA believes the new data set is more

informative because it shows the number of

complaints against the size of the business.

It also provides greater insight about the

products that consumers complain about.

The FCA believes that greater

transparency of complaints information will

enable consumers looking to invest or buy

“This data will provide us with improved intelligence on

complaints including new detailed data to show where an

industry is potentially failing consumers at a product level.”

products to be better informed about the

products that have caused concern for others.

“Consumers want a simple way to

complain that does not leave them out of

pocket. And they want to be assured that their

concerns will be dealt with fairly and quickly,”

says Christopher Woolard, Executive Director

of Strategy and Competition at the FCA.

“This data will provide us with improved

intelligence on complaints including new

detailed data to show where an industry is

potentially failing consumers at a product

level.”

Payment protection insurance (PPI) is

the most complained about product. The

total number of PPI complaints was 895,000.

Excluding PPI, the number of complaints was

2.15 million. Current accounts were the next

most complained about product with around

514,000 grievances.

The total redress paid to consumers

was £1.9 billion in the second half of 2016.

When all redress payments related to PPI are

excluded, the redress figure is approximately

£0.3 billion during the same time period.

fca.org.uk

8 June 2017 www.cicm.com

The Recognised Standard


News in Numbers – provided by the Money Charity

THE.news . IN

NUMBERS

£2.04

BILLION

SPENT EVERY DAY ON PLASTIC

CARDS IN THE UK

£170

million

MORE GOVERNMENT DEBT A DAY

DURING

FEBRUARY 547,711

9.45

mILLION

(35 PERCENT) HOUSEHOLDS HAVE

NO SAVINGS

£120,230

average

126

purchases

WERE MADE EVERY SECOND USING

CREDIT CARDS IN MARCH

outstanding

MORTGAGE FOR

11.1 MILLION PEOPLE

28%

OF ISSUES CAB HANDLED

RELATED TO DEBT

ISSUES DEALT WITH BY

CITIZENS ADVICE BUREAUX

(CAB) IN MARCH

48,178

loans

APPROVED

FOR HOUSE PURCHASE

IN MARCH

EXPORT FINANCE MD

Bibby Financial Services (BFS) has appointed Craig

Durnell as Managing Director for its export finance

business, as the company looks to strengthen its support

for SMEs trading overseas. First joining BFS from RBS in

2014, Craig has held a variety of roles including Head

of Operations, and most recently, Head of South West

Business Centre. Prior to joining RBS, he spent more

than 23 years with HSBC in a variety of commercial and

leadership positions. bibbyfinancialservices.com

CYBER PROTECTION

ARC (Europe), the specialist debt collection agency

(DCA), has achieved the Government-backed Cyber

Essentials certification following a further upgrade of

its internal IT infrastructure and the introduction of an

enhanced firewall. The Cyber Essentials scheme accredits

those businesses that display significant levels of cyber

security and who have correctly implemented five key

controls that prevent up to 80 percent of cyber attacks.

In gaining accreditation, ARC’s IT systems were exposed

to an external vulnerability scan to test whether the firm

had effective and efficient cyber security measures in

five key areas: secure configurations; boundary firewalls

and internet gateways; access controls and administrative

privilege management; patch management; and malware

protection.

arceuropeltd.co.uk

NEW MD FOR DUFF

Duff & Phelps has appointed Allan Graham as Managing

Director within its restructuring advisory practice to

focus on the company's mid-market restructuring and

nationwide insolvency cases. He joins Duff & Phelps

from KPMG where his 27-year career included 19 years

as a restructuring partner. Allan will assist mid-market

corporates nationally and has particular expertise

advising manufacturing, recruitment, and printing and

packaging businesses. Allan is a qualified accountant,

insolvency practitioner and member of R3.

duffandphelps.com

BUN IN THE OVEN

Secure Trust Bank Commercial Finance has provided

a £2 million invoice finance facility to Stage Electrics

Partnerships, a provider of stage lighting and sound

equipment to theatres and the entertainment industry

including The Great British Bake Off. The facility is

enabling the business to expand and invest in two new

sites in Avonmouth and Patchway as it looks to improve

its margins within the next three years.

securetrustbank.com/commercial-finance

GROWING TENTACLES

Louise Young has joined Octopus from Masthaven

having served as senior underwriter at the bank

since January 2012. Paul Mann has also been added to

the ranks, having formerly served as residential and

commercial collections manager at Aldermore Bank

before a four-year spell as Senior Mortgage Underwriter

at Saffron Building Society. The appointments come

amid a major overhaul of the Octopus product range.

octopusproperty.com

CICM IN BRIEF

This month's briefing gives details on the CICM's

Virtual Summer School, the booking window for

online exams closes on 2 June, a vacancy to represent

members of CICM in the specialist area of Consumer

Credit, and the third CICM AGM to be held on 8 June

The Recognised Standard www.cicm.com June 2017

9


NEWS

ACCA WELCOMES NEW MAYORS

THE Association of Chartered Certified

Accountants (ACCA) says the new directly

elected metro mayors will have a crucial

role in creating regional powerhouses for

economic growth and development.

John Williams, Head of ACCA UK, says

the response from members has been

clear: “Firms around the country are in

desperate need of better digital and transport

connectivity, and strong links between the

business community and education to equip

the workforce with the skills needed to flourish

in a 21st century global landscape.

“The new metro mayors will be in a unique

position to help deliver solutions to these

issues through building strong link between

city regions, including connections with major

financial centres in London, Cardiff, Glasgow

and Edinburgh.

“They also have a major role to play in

tackling the national skills gap: both directly

through Apprenticeships Grants but also throw

showing leadership in building links between

business and education, through initiatives

such as Local Enterprise Partnerships, to

ensure young people are getting access to the

training and opportunities they need to thrive.”

The ACCA also believes that the mayoral

elections represent an important milestone

in the devolution agenda, but for devolution

to work effectively local administrations must

be given more, if not total, control over local

public finances: “This will be critical in enabling

incoming mayors to tackle local challenges,”

he adds.

New metro mayors are being welcomed

following elections in Cambridgeshire and

Peterborough, Greater Manchester, Liverpool

City Region, Tees Valley, West Midlands and

West of England alongside directly elected

mayors in Doncaster and North Tyneside.

accaglobal.com

>NEWS

IN BRIEF

P2P AUTHORISATION

BOOSTS SECTOR’S

LEGITIMACY

ZOPA, described as the UK’s oldest

and largest peer-to-peer lender, has

been granted full authorisation by the

Financial Conduct Authority (FCA).

The platform has undergone a

rigorous 18-month approval process

since applying to the regulator and

can now apply to HMRC for ISA

manager status to offer the Innovative

Finance ISA (IFISA).

The announcement is said to herald

a significant moment for the industry

which has been waiting for the largest

players to become fully regulated to

move the sector into the mainstream.

The regulator’s stamp of approval

is expected to boost the sector’s

legitimacy to investors and financial

advisers.

“Zopa, both individually and as

a founder member of the Peer-to-

Peer Finance Association (P2PFA),

has campaigned for P2P lending to

be a regulated activity for a number

of years,” says Giles Andrews, Co-

Founder and Chairman of Zopa.

Zopa has lent more than £2.7 billion

to consumers and employs over 200

people, including over £800 million

over the last 12 months.

zopa.com

>TECHNICAL

DESK

THE CICM’s Technical Committee met

recently and discussed a number of issues

including: the General Data Protection

Regulation (GDPR) effective from 6 May

2018; the Duty To Report Regulations that

came into force on 6 April 2017; the new

Apprenticeship Levy; the FCA consultation

that proposes new rules and guidance

to address persistent credit card debt

and earlier intervention remedies; the

publication of the FCA’s Mission, Business

Plan for 2017/18, and a consultation on

proposals for regulation fees and levies;

the modernised Insolvency (England and

Wales) Rules 2016 that came into force

on 6 April 2017; the Standard Financial

Statement launched on 1 March 2017; and

a new fraudulent trend that may affect

legitimate companies and organisations in

the near future through abuse of the Courts

system that the National Fraud Intelligence

Bureau (NFIB) had identified.

CSA APPOINTS SENIOR

INDUSTRY LEADERS TO

WORKING PARTIES

THE Credit Services Association (CSA), the voice

of the UK debt collection and debt purchase

sectors, has co-opted two senior industry

figures into its Working Parties to further support

its members’ interests and steer the future

development and direction of the industry.

Pamela Mulcahy is joining the CSA’s Public

Affairs (PA) Working Party, headed by Portfolio

Director Leigh Berkley. As Public Affairs

Director at Marston Holdings, Pamela supports

the business’ strategic objectives through

stakeholder engagement, and understanding

and informing policy development.

Steven Preston is joining the CSA’s

Technology Working Party, headed by Portfolio

Director Stuart Sykes. Steven is an experienced

credit risk and collections professional

specialising in the delivery of risk transformation,

and system specification, selection and

installation projects across banking, utility, third

party organisations, BPO and mail order retail

companies.

Peter Wallwork, CSA Chief Executive, said

he is delighted with the additional experience

that Pamela and Steven bring: “I would be

similarly delighted to hear from members and

the wider credit industry community who feel

as passionately as they do and who have a

positive contribution to make to the future of our

industry.” csa-uk.com

10 June 2017 www.cicm.com

The Recognised Standard


INSOLVENCY

PROPERTY RECEIVERS –

A SURVIVING BREED

You may have thought that receiverships were dead. David Kerr MCICM

explains why that thought may be a little premature.

THE old receiver and manager of

the Companies Act 1948 morphed

into the administrative receiver of

the Insolvency Act 1986 and was

then killed off by the Enterprise Act 2002.

The flavour of the era now is for collective

insolvency procedures, theoretically

benefiting all creditors, rather than those

designed primarily to serve the interests

of one secured lender.

And yet whilst administration has

become the common ‘rescue’ procedure,

there is a corner of the receivership world

where the concept survives, and indeed

is gaining a new lease of life. Property

receivers operate under the Law of

Property Act 1925 or legal instruments

invoking similar powers; they have carried

on their trade throughout all of the above

changes and have been largely untouched

by them.

One of the important measures

introduced in 1986 was the licensing

of insolvency practitioners, and yet for

property receivers this too somehow

passed them by, so that those acting as

receivers of property (and property only

– not the whole of a debtor’s undertaking)

are not subject to any form of statutory

regulation. However, that anomaly was

remedied to some extent in 1999, when

the Insolvency Practitioners Association

(IPA), Royal Institution of Chartered

Surveyors (RICS), and the Non-

Administrative Receivers Association

(Nara) led a joint effort to replicate the

insolvency practitioners’ regulation

regime in the property receivership

domain.

This extension of regulation involved

a voluntary registration process that

encompassed a commitment to be

subject to monitoring inspections, with

reports submitted to a joint committee for

review. A directory of registered property

receivers, updated and published

annually, encouraged lenders to use

‘regulated’ receivers.

Those arrangements have now been

revised and modernised, and a new

Memorandum of Understanding has been

executed between IPA, RICS and Nara. This

provides for some important changes that

should increase transparency and reassure

stakeholders. All registered property

receivers will be monitored by the IPA, a

new website will carry information about

the standards applicable to their work (the

practice statements developed by Nara)

as well as a list of those signed up to the

scheme, and there will be a consultation

on those standards.

The new scheme will be launched on 1

July and will deliver a more robust regime

that is more readily understandable. Some

key aspects of the existing scheme are

retained, such as the entry examination,

requirements for ongoing education,

and monitoring. A newly formed Quality

Assurance Panel will deal with any cases

where monitoring reveals registered

receivers are found not to be acting in

compliance with the published standards,

and complaints about them will be subject

to the disciplinary procedures of the

receiver’s professional body.

SUMMARY OF KEY ASPECTS OF THE

REGISTERED PROPERTY RECEIVERS’

(RPR) SCHEME

• RICS and IPA will formally endorse

Practice Statements for RPRs, thereby

ensuring they have full regulatory force.

These Practice Statements will be placed

in the public domain, and processes for

enhanced stakeholder engagement in the

change or creation of future standards will

be implemented

• A Quality Assurance Panel will review

the monitoring outputs from the Scheme

against the Practice Statements where

compliance issues have been identified as

part of the monitoring processes, in order

to provide assurance that these standards

are being properly applied

• IPA will provide a formalised secretariat

function in respect of the Scheme,

ensuring a single point of enquiry for

Scheme members

• Scheme members will be required to

provide an annual confirmation that they

subscribe to the application of Practice

Statements and the criteria for Scheme

membership generally

• All Scheme members will be required

to participate in proportionate and

risk-based routine monitoring activity

of their functions as Registered Property

Receivers provided by the IPA on a riskbased

and proportionate basis

• A new Scheme-specific website will be

established, aimed at informing end users

and the public about the Scheme and

raising the Scheme’s profile

• Nara will continue to produce Practice

Statements for scheme members, subject

to RICS and IPA review and collaboration

and a process of stakeholder engagement,

and the Practice Statements will be

reinforced by the newly introduced

endorsement process

• Nara will continue to provide high

quality education and training for Scheme

members and prospective scheme

members, and promote the benefits of the

Scheme

• The requirement that all registrants are

members of a relevant professional body

will be retained, as will the examination

process for new applicants to the

Scheme to ensure the current levels of

professional education and qualification

are maintained

• Scheme members will be subject to the

disciplinary processes of the professional

body of which they are a member;

adverse monitoring outcomes and

complaint allegations arising through the

Scheme will be referred to the relevant

professional body for any disciplinary

action as may be necessary

• Registration under the scheme is the

sole mechanism entitling the Scheme

member to the designation ‘Registered

Property Receiver’.

David Kerr MCICM is the Chief Executive

of the Insolvency Practitioners Association

(IPA).

The Recognised Standard

www.cicm.com June 2017 11


FROM THE CHAIR

POLLS APART

Laurie Beagle sees the forthcoming election and Brexit

negotiations as an opportunity rather than a threat.

THE calling of an election I think

caught us all off guard. Perhaps

that was the strategy. For a time,

it will no doubt interrupt and

delay a number of ongoing initiatives

with which we are involved, but

hopefully not for long.

Our Chief Executive, Philip King,

has worked hard and should be

congratulated on the excellent links he

has built with the government especially

via the Department for Business, Energy

& Industrial Strategy (BEIS) and Small

Business Minister. This has not only

helped to raise the profile of the CICM

but also resulted in significant output,

not least of which is the Prompt Payment

Code.

CICM members have also recently

been taking part in interviews with BEIS

on the introduction of two new websites

being built for businesses. One is for

the Duty to Report portal, and the other

for the Small Business Commissioner.

The Institute has also been extending

its series of Managing Cashflow Guides,

including a new one entitled ‘Managing

cash through Brexit’ and produced in

partnership with the Federation of Small

Businesses (FSB).

Brexit, of course, is now a reality. With

the impending election, Brexit, whether

soft or hard, is back in the news. This

is the start of the story. Businesses who

already export are understandably

nervous. But they also recognise that

there will be plenty of opportunities

in the future should we wish to grasp

them. This is where you, the credit

professional, has a large part to play. It

is your skills that will help carry the day;

your understanding of risk; your ability

to access and interpret information

that supports sales. You are not just the

manager of the accounts receivable

ledger, but rather the key to the future

prosperity of your company.

The gun has sounded and we are

off the mark for the Apprenticeship

schemes. The future of our profession

is in us all encouraging the younger

generation to understand that Credit

Management, in its many forms, is a

worthwhile career. I totalled up my job

titles since starting as a credit controller

and it came to 11. We need to continue

getting the message out there that

Credit Management is a profession

- the same as Surveyors, Doctors,

Accountants etc – and that we have

a vital role to play in protecting and

developing our economy.

Yes, it is a big commitment, but we

are asking you and your company

to think about what more you can

bring to the profession, and its future.

Apprenticeships are there to train new

and young talent as well as up-skilling

current teams and team members.

They will provide a clear route to

development and career progression.

And one final point that should not

be missed is that funding is available

regardless of age. Very refreshing.

Laurie Beagle FCICM EIICM is the Chair of

the CICM Executive Board.

The gun has sounded and we are off the mark for the Apprenticeship schemes. The future

of our profession is in us all encouraging the younger generation to understand that Credit

Management, in its many forms, is a worthwhile career.

12 June 2017 www.cicm.com

The Recognised Standard


BENCH PRESS

MONEY, MONEY,

MONEY

We stand at a pivotal moment in the evolution of civil justice as far

as money claims are concerned. The next few months and years will

determine how effective, economic and desirable money claims remain,

says Amir Ali.

ECONOMICS are a major factor

– it is clear that successive

governments have viewed civil

justice as a cash cow. Not only

is it expected to be self-financing, but

also to finance other areas that would

otherwise be a burden on the taxpayer,

such as the criminal courts.

Despite paying substantial sums

that might more usually be expected

to provide an outstanding service,

Claimants have seen comparatively

limited investment in their area of the

court service. The increase in money

claim issue fees to five percent of value

for claims over £10,000 has seen a

reduction in larger claims. The idea of

risking further money to try to recover

an existing debt has always been

unpalatable. The size of the increases

now makes it an impediment to justice.

How perverse is the system, where a

claim is often now more likely to be

brought in a lower value case than a

larger one? Those who owe greater

sums of money are increasingly

immune from the risk of a Judgment,

while those who owe lower sums are

more likely to have one entered against

them. Our Civil Justice system has

always been based on fairness and this

proudly continues, yet in some ways

this now risks being undermined by its

own charging structure.

We have seen a continuation of

this approach in recent weeks, with

hearing fees no longer being refunded

where a court hearing is no longer

required. It was always understood

that the refunding of such fees was

designed to promote early settlement

between the parties. It is presumably

again the case that money is now seen

as more important than good case

management. It is extraordinary that it is

even necessary for a fee to be payable

for the Consent Order concluding the

claim and removing the hearing from

the list. Where else in society are you

expected to pay for a service and

denied a refund when you realise it is no

longer required? And are then actually

required to pay even more as a result?

If the court itself were reviewing such

a term under a contractual agreement,

would it be considered reasonable?

There are many reasons to be

optimistic for the future of Civil

Litigation. The Civil Structure Review

by Lord Justice Briggs was full of good

ideas. Lord Justice Jackson’s continuing

review of fixed costs will hopefully bring

greater certainty and transparency

around costs. There are many people

working hard within the Ministry of

Justice and the court system, striving

to provide the best service possible for

court users. We can only hope that all

of these efforts are not undermined by

the court fees themselves. The courts

should exist to provide a much-needed

service to society, not as a form of

taxation upon it.

Amir Ali is Chair of the Civil Court Users

Association (CCUA) – amir.ali@hcegroup.co.uk.

How perverse is the

system, where a

claim is often now

more likely to be

brought in a lower

value case than a

larger one?

The Recognised Standard

www.cicm.com June 2017 13


MORETON SMITH INVESTMENT PAYS

DIVIDENDS IN RENEWING CICMQ

IT’S been a busy period for Moreton

Smith, which has renewed its CICMQ

accreditation and retained its mantle as

the only debt collection agency to have

achieved the standard. The business’ third

certification has occurred in the context of a

recent acquisition by Marston Holdings.

Moreton Smith is an international debt

management service provider that offers

credit management services worldwide from

its central London base and via its partner

network.

The CICMQ Assessor’s report

emphasised the strength of current

processes, despite a number of

developments following the change in

ownership: ‘As expected, there are checks

and balances to pick up any issues. The staff

are motivated, experienced and strong in

international collections.’

John O’Donnell, Managing Director,

explains that Moreton Smith is seen as a

strategic and solid foothold in international

collections for Marston: “The investment

in Moreton Smith is continuing, with key

CICMQ gives our clients confidence

in the quality of our service and is a

great way to independently evidence

our robust systems and management

processes.

Marston resources supporting the existing

management team to help bring about further

process improvements.

“Reconciling the process changes with

CICMQ standards has added a layer of

complexity, but our understanding of the

aims that underpin the standard has helped

considerably.” he continues. “CICMQ gives

our clients confidence in the quality of our

service and is a great way to independently

evidence our robust systems and

management processes.”

The Assessor’s report also found a

‘high level of ownership and pride in the

achievement of good results for the business

and its clients.’ Also noted was Moreton

Smith’s recent attainment of the ISO 27001

Information Security Management standard,

evidence of its commitment to securely

processing client (and end customer) data.

“Notwithstanding recent achievements, we

are determined not to rest on our laurels and

will be supplementing training programmes

with CICM training and to further develop

professional qualifications.”

The investment in Moreton Smith

is continuing, with key Marston

resources supporting the existing

management team to help bring about

further process improvements.

‘‘

IN ASCENDANCE

We felt CICMQ was a

well-suited accreditation to

fit the combination of our

new business activities,

and going through the

process has ensured that

we are continuing to

develop. Our credit policy

has been updated and is

now robust, and this helps

us to better guide our credit

control team.

Debt recovery solutions provider Ascent

Performance Group (Commercial) joins

the Best Practice Network with first-time

CICMQ accreditation.

The accolade follows the business’

acquisition of the commercial debt recovery

division of P&A Receivables.

“We felt CICMQ was a well-suited

accreditation to fit the combination of our

new business activities,” Glen Walker, Chief

Compliance Officer, explains.

“Going through the process has ensured

that we are continuing to develop,” he

adds. “Our credit policy has been updated

and is now robust, and this helps us to

better guide our credit control team.

“Overall, the process has proven to

be worthwhile in benchmarking the firm

against other credit control practices,

and we plan to continue developing our

employees who will benefit from CICM

training.”

The Assessor’s report explained that the

Groups ‘measurement of the collections

operation is clear, and client feedback on

performance and the service it provides is

excellent.’

14 June 2017 www.cicm.com

The Recognised Standard


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The Recognised Standard

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www.cicm.com June 2017 15


OPINION

TEEING UP

EDUCATION

Karen Young discusses the skills gap in the UK and how the

Government’s announcement of T-Levels will help to reduce it.

THE recent Budget saw one of the most

drastic shake ups of the education

system in a generation, and was a

welcomed move by many to aid future

vocational careers.

‘T-Levels’ are planned for introduction in

the autumn. These are technical qualifications

providing skills based courses in fifteen

areas including accounting and finance,

digital, manufacturing, business, hospitality,

construction and social care.

The development will no doubt improve the

acute skills gaps within these professions, and

it’s particularly encouraging that accountancy

and finance will be included.

This grassroots investment is much

needed, as the industry is keen to develop

the entry routes into the sector to encourage

talent from all areas of the education system.

The CICM apprenticeship route is of course

an example of how this is already being

developed within credit management, with

specifically-designed courses for those

looking to become part of the growing credit

profession.

In addition, there was welcome news for

those already within the workforce in terms of

re-skilling to support a generation of workers

at risk of job automation. The Chancellor

announced the Department for Education will

invest £40 million in pilot schemes to support

building digital skills into our workforce.

It is correct that now is the time to tackle

the skills chasm in the UK jobs market headon.

At Hays we have consistently warned

of a widening skills gap across the country

as employers tell us they are struggling to

match the vacancies they have with the

skills of the available workforce. We want

to be encouraging more people into credit

management, especially as data from our

UK Salary and Recruiting Trends Guide 2017

revealed that the majority (75 percent) of

managers hiring finance roles say the shortage

of suitable candidates is their top recruitment

challenge this year.

We need to be promoting the job

opportunities in the profession to the next

generation – helping them to understand the

career paths and the rewards on offer. The

sector is optimistic, as our Guide indicated

93 percent of finance employers expect

their business activity to remain the same or

increase in 2017. Additionally, demand for

credit professionals should only increase. In

our mixed business conditions, both uncertain

economic conditions and business growth

create a greater need to manage risk and cash

flow, highlighting the importance of hiring

effective credit professionals.

T-Levels are an excellent opportunity

to generate a coherent dialogue between

business and schools, and if organised

properly, they should help address any

future skills shortages. By ensuring robust

qualifications and measurable targets are

in place, T-Levels will equip the younger

generation with vocational careers,

demonstrating a programme that has been

developed specifically with employers in mind.

The introduction of T-Levels to a younger

and digitally-minded generation will hopefully

combine an education in financial skills with

digital capabilities that already exist. This

way the initiative can become a two-way

partnership, as businesses work with the

younger generation to share knowledge.

It’s a pertinent time for change, thanks to

ongoing business development, corporate

deals, growth and a number of companies

relocating, the demand for a wide range of

financial skills looks set to stay high for the

foreseeable future.

Credit professionals are currently in high

demand by organisations, and salaries are

attractive, increasing by 3.7 percent on

average in the past year. Additionally, at 28

percent, finance skills were cited as one of the

top three skills most needed by organisations

to achieve their business objectives this year.

It’s clear that there are short- and longterm

fixes which need to be addressed. It

is vital that we tackle these now if we are to

close the gaps and make sure we have the

professionals in place who can start to make

headway as a leading workforce with a vast

amount of talented finance professionals.

T-Levels present a golden opportunity for

the UK to develop a well-trained and highlyskilled

domestic workforce that will see

Britain’s credit management industry primed

to compete successfully on a global level.

Karen Young is Director of Hays Accountancy

and Finance.

The CICM apprenticeship route is of course an example of how

this is already being developed within credit management, with

specifically-designed courses for those looking to become part of

the growing credit profession.

16 June 2017 www.cicm.com

The Recognised Standard


OPINION

INFORMATION

AND TRUST

Matthew Davies considers what has been holding the invoice

finance industry back.

SUPPLY versus demand arguments have

dominated the access to finance debate

for a decade since the global financial

crisis. Arguably, they did for long before

it as well but with the end of the good times the

political prominence of the debate increased

exponentially. Since then we have seen an everextending

phase of bank bashing – amazingly

Bob Diamond made his comments about ‘the

period of remorse and apology’ for the banks

needing to end in 2011. And we have seen some

fairly dramatic direct policy interventions in the

form of the establishment of the British Business

Bank, various public-backed lending schemes

including Funding for Lending, policy action

aimed at combating late payment, at fostering

greater competition, and with more yet to come

out of the CMA inquiry.

For the part of the Asset Based Finance

Association – which represents the invoice

finance and asset based lending industry and

includes both banks and non-banks within the

membership – we see ourselves as representing

a ‘challenger’ industry. At any one time, ABFA

Members will be advancing in the region of

£20 billion to more than 43,000 UK and Irish

businesses, but the industry could be providing

more finance to more businesses, and over recent

years we have been considering what is holding

the industry back.

The information gap is clearly an issue. All

studies find a persistent lack of awareness and

understanding of what different types of finance

are available, when they are appropriate (and

when they might not be), and where they can be

found. This information gap is as much an issue

for the rapidly evolving, technology-focused

finance providers as it is for more established

types of finance that have not always been

understood as well as they should be.

Which brings me to the point. The ABFA has

been pleased to work with the Corporate Finance

Faculty of the ICAEW on a detailed independent

guide to the industry and its products and

services – Growth through asset based finance.

Written to be accessible for both small

businesses and those that advise them, the guide

follows up on the British Business Bank and

ICAEW’s Business Finance Guide, which provides

an integrated source of information on the full

range of finance options available to businesses.

The new publication provides more information

about the products and how they work, as well as a

range of case studies.

Of course, the flip-side of better information

is ensuring that clients and prospective clients

– particularly smaller businesses that are most

apprehensive about taking external finance – feel

able to use the products with confidence.

The publication also covers the issue of

standards, in particular the ABFA’s Standards

Framework. The Framework sets the commitments

and principles that all ABFA Members will meet

in their dealings with clients and incorporates

independent means of investigation and, where

appropriate, redress where those standards are

found to have not been met. The chair of the

Professional Standards Council, Lucy Armstrong,

wrote a piece on the Framework in more detail in

CM earlier this year considering issues around the

treatment of SMEs as users of financial services.

With potentially choppy economic waters

ahead of the UK, information and trust have never

been more valuable commodities.

The ICAEW Corporate Finance Faculty best

practice guideline Growth through asset based

finance can be downloaded from:

icaew.com/-/media/corporate/files/

technical/corporate-finance/guidelines/

growth--through-asset-based-financeguideline-65pdf.ashx

The British Business Bank and ICAEW’s Business

Finance Guide can be found at:

thebusinessfinanceguide.co.uk/

Further information on the Standards Framework

can be found at: abfa.org.uk/standards.asp

Matthew Davies is Director of Policy and Communications and

Deputy Chief Executive Officer Asset Based Finance Association.

The Recognised Standard www.cicm.com June 2017

17


FEATURE SPECIAL

LADIES

FIRST

Why aren’t there more women in senior roles in credit and what could be

done to encourage more women into the industry? Sean Feast takes his life

in his hands by asking some leading players.

DESPITE having a woman as our Prime

Minister (at least at the time of going to

press), and a woman as our Monarch,

the importance of women in the

workplace is a constant subject of debate. Why

are women continually under-represented on the

Boards of the FTSE 100, and why are so few at the

very top of the tree? More specifically, why aren't

there more women in senior roles in credit?

Denise Crossley FCICM, CEO of Motormile

Finance UK, believes that part of the problem

is historic: “Sadly, I often feel that women are

still sometimes under-valued in the workplace,

particularly where their line managers are

older men who have been in their roles for a

considerable number of years,” she says. “In

some of the smaller credit business in particular,

some male managers just don’t appear to see a

woman as a true asset.”

While Denise is quick to point out that such

prehistoric attitudes are not true of all men,

her thoughts resonate with others. Dee Weston

FCICM, UK and Ireland Credit Manager for Avnet

says that she started in credit control more by

default than design, and credit was not promoted

as a career: “The first I was aware there was a

title of Credit Manager, was when I saw the role

advertised, but there was nothing to suggest

is was significant or could help my career

development. I applied as it noted supervision of

other personnel, and that appealed to me.”

What became immediately clear, however,

was that the world of credit – at a senior level at

least – was almost entirely male dominated: “If I

wanted to speak to a senior person among our

customers it was invariably male, their secretary

female, and their credit control team, female

too. But that was also reflected in the company I

worked for; the senior roles were all men.”

Claire Aynsley, Head of Regulatory

Compliance and Standards at the Credit Services

Association (CSA), definitely believes that

attitudes are changing: “The dinosaur era days

of men ‘bringing home the bacon’ are long gone,

and equality in the workplace is vastly improving.

“Even within our membership we are seeing

more females being employed in senior and

executive roles. As with the regulatory landscape,

not only are firms having a cultural change in

terms of their activity and their engagement

with customers, but the cultural changes can be

seen throughout organisations, leading to more

diversity. But more still needs to be done.”

Debbie Tuckwood, Head of Education and

Professional Development at the CICM, suspects

that the anomaly occurred because women’s

careers were more likely to be interrupted due to

family responsibilities and employers were less

prepared to offer flexible working: “With new

legislation, more family friendly working hours,

better childcare and increasing necessity for both

partners to work, hopefully more talented women

will continue their career and start to reach senior

roles,” she says.

“Clearly some may be reluctant to take on

roles which require significant travelling if their

families are young. However, as many credit

management departments are changing rapidly,

there are a host of business-critical projects which

require skilled leadership and may better suit

flexible hours. These both develop new skills

and are likely to open up opportunities during

these formative years. Also, better communication

means nowadays many meetings with colleagues

and customers are held remotely and so many

managers choose to work from home for at least

part the week.”

Denise, too, acknowledges that part of the

problem historically is the ‘traditional’ one of

women being primary carers, and the inflexibility

of working practices: “On occasions, women can

be put off applying for full time roles in credit as

the hours are predominantly 9.00am – 5.00pm,”

she says. “Such roles therefore don’t always offer

18 June 2017 www.cicm.com

The Recognised Standard


the flexibility required if women have young

children or elderly parents to care for.

“As a young mother myself with three children

to raise throughout many years, I was still

expected to work the same hours but without the

flexibility which, at times, was extremely difficult

in order to gain a work/life/family balance.”

Debbie Nolan, Business Development Director

at Arvato UK, agrees: “If you take time out for any

reason it’s difficult to catch up,” she says. “I’ve

been working in the BPO market for the last four

years, but fortunately I work for an organisation

that is supportive of my wider industry interests

and has allowed me to continue to attend events,

network and contribute to areas that weren’t

necessarily directly related to my actual role at

that time. This has allowed me to keep engaged

in the challenges and changes within the world of

credit, and meant that when an opportunity arose

to work in that environment again, I didn’t have so

much catching up to do.”

Debbie’s experience is perhaps fortunate,

but should women be doing more to encourage

other women into the industry, and mentor their

development?

“During my career, I have always endeavoured

to provide side by side training for potential

candidates (of all genders) wishing to enter the

world of credit, but lacking experience,” Denise

continues.

“If candidates can evidence a good command

of the English language alongside strong basic

mathematics, and plenty of common sense

(vitally important), then I will offer easy access

to internal promotions. I will also offer flexible

hours for working mums/carers, moving them to

more hours as their personal situations change

or evolve. Currently, our ‘rising stars’ project

caters for just that situation whereby we train

and mentor candidates who aspire to elevate

themselves within the business, but have no

formal experience.”

Dee Weston is an active champion of the

CICM: “The Finance Director (yes he was a man)

I joined as a Credit Manager first introduced me

to the notion that credit was a career, and then

you could gain qualifications, by that point I had

been working in credit for ten years. This was

also the first time I was made aware of the CICM.

“The dinosaur

era days of men

‘bringing home

the bacon’ are long

gone, and equality

in the workplace is

vastly improving’’

- Claire Aynsley

“Shouting the loudest doesn’t

always mean you will be

heard. I’ve found that by

creating a reputation for

honest delivery means that

I am trusted by the people

that I work with to deliver the

best outcome. I would mentor

anyone, male or female, to be

realistic about what can be

achieved, and when”

- Debbie Nolan

He encouraged me to qualify as it would help my

development and understanding of credit and its

purpose, and help seek gainful employment in the

future.”

Debbie Nolan helps her team to develop a

mechanism to be heard: “Shouting the loudest

doesn’t always mean you will be heard. I’ve found

that by creating a reputation for honest delivery

means that I am trusted by the people that I work

with to deliver the best outcome. I would mentor

anyone, male or female, to be realistic about what

can be achieved, and when.”

Debbie believes that there is no such thing

as ‘can’t be done’: “Anything can be achieved,

but there may need to be some compromise

over timings, detail or expectations. As long as

the changes are clearly communicated, well

negotiated and committed to, success will follow.”

So, what advice would our senior executives

give to a young woman starting out in credit

today?

“Start at the bottom if you have to and learn the

ropes,” Denise advises. “There is nothing better

than experience from the bottom up. Put yourself

forward for new jobs – they are never as hard as

you think!”

Denise started out as an Office Junior on a

Government training scheme. She was promoted

to a Director at 21, and bought her first debt

business at the age of 30: “I worked hard, listened

well and was employed by a wonderful gentleman

who taught me along the way and could see my

potential. If you have a polite manner, good work

ethic and a passion for what you want to achieve

then you can progress to the top via a route that

doesn’t preclude anyone, university educated or

not.

“Don’t be frightened or apprehensive; be brave

and, more importantly, be passionate in all that

you do and you will certainly succeed to be part

of a fantastic industry that can take you off in a

number of directions.”

Dee Weston believes that thanks to career

events, open days, social media and the press, as

well as organisations like the CICM, more women

are now aware that a career in credit can propel

them through the business ranks: “I would advise

any person to look at credit gainfully,” she says.

“I and my company promote CICM in the work

place; we bring in in-house tuition to encourage

continues on page 20 >

The Recognised Standard

www.cicm.com June 2017 19


Continues from previous page

>

members of the credit team, support and

encourage. Young women should also actively

engage in their local CICM branch to meet

like-minded professionals with huge amounts of

knowledge.”

Claire Aynsley is also a believer in learning

and development: “Better financial education

and a clearer perception of credit and debt will

encourage the Millennials to look outside of the

box,” she says. “And with Apprenticeships being

high on the Government’s agenda, we could see

more women starting a career in credit as well as

working their way up the ranks.”

Debbie believes networks are important:

“Create a network that supports the work that you

do but then also takes you out of your comfort

zone and helps you to understand how other

contributing parts of the industry work together,”

she says.

She also advises to read plenty: “There is so

much information available in industry journals,

blogs and on social media, it is far easier to

keep up-to-date on what is happening across the

industry then it was when I first started out!”

Debbie Tuckwood’s advice is to set your sights

high: “Clearly getting qualified early is key and it

is worth making yourself indispensable by being

proactive in the department and volunteering for

critical projects at work. Your company is more

likely then to tailor a role to suit you if you take a

break, or at least you have a first-class CV to find

an alternative employer who appreciates your

talents and offers more flexible hours.”

She also says that if you enjoy staff

development, consider teaching for the CICM

too: “We are always looking for new teachers for

our qualification courses and you’d have a perfect

family friendly role which keeps you up-to-date

and lets you run your classes from home through

our virtual classroom either during the day for

our apprentices or in the evening for our other

learners.”

“With new legislation, more

family friendly working

hours, better childcare

and increasing necessity

for both partners to work,

hopefully more talented

women will continue their

career and start to reach

senior roles,”

- Debbie Tuckwood

“Don’t be frightened or apprehensive; be

brave and, more importantly, be passionate

in all that you do and you will certainly

succeed to be part of a fantastic industry

that can take you off in a number of

directions”

- Denise Crossley FCICM

20 June 2017 www.cicm.com

The Recognised Standard


ACHIEVING

THE POSSIBLE

Louise Schofield, Operations

Director at Hoist Finance,

believes it should not be

‘unusual’ to see a woman in the

C-suite, but rather the ‘norm’

THERE were some statistics published a few years

ago that looked at the make-up of the consumer

collections industry. It suggested that it was not

quite as male-dominated as you’d think, and that

the male/female employee ratio was almost 50:50.

That might well be the case, but very few of those

women are in positions of real authority. I think

this highlights an important issue, and an issue

that has been ignored for too long.

Part of the problem, of course, is historic.

Certain elements of the ‘traditional’ banking and

financial services sector still operate with oldschool

thinking and attitudes. A company can only

be as good as the person at the top, and it still

takes an enlightened leader with an open mind to

drive real cultural change. This is not about paying

lip-service to women, but rather recognising that

women often bring a different set of skills, values

and perspective to any role they undertake.

While I’m glad to say that the boorish attitudes

of the past are gradually changing, there are

still far too few women represented on the Main

Boards of our major financial institutions, and

fewer still with the top job. Women, of course, can

have different challenges to progressing their

careers, not least having a family. Young families in

particular require women to have a strong social

network to balance work/children responsibilities.

But mothers, in particular, have many transferable

skills – especially in the customer-centric world

of consumer collections. They tend to be well

organised, multi-tasking and empathetic. They

also tend to be straight-talking and well able to

deal with tantrums - skills that are of undoubted

value in the workplace!

While I’m glad to

say that the boorish

attitudes of the

past are gradually

changing, there

are still far too few

women represented

on the Main Boards

of our major financial

institutions, and

fewer still with the

top job

- Louise Schofield

From my own point of view, I was always

ambitious, and throughout my career I have been

constantly looking for the next job, or the next

promotion, that would challenge me to achieve

more. I am inspired by people like Karen Brady,

and all that she has achieved. I am motivated by

not only developing my own skills, but also of

those around me, men and women, for the best

teams are almost always a mixture of the two. I

would never advocate positive discrimination;

it should always be about the best person for

the job, but that does not mean that the issue or

encouraging more women into senior roles should

not be addressed.

Go to any of the major industry conferences,

and you will hear about the latest regulation

or compliance issues, or learn about the latest

technologies designed to make us more efficient.

It is all very worthy stuff. But what you won’t see

so much of are those important ‘softer’ subjects:

how to recruit, motivate and inspire good people,

and especially women; how to be flexible in your

operations to accommodate more women into the

workforce, and at a senior level. Indeed, flexibility

works all ways, and the same approach regarding

childcare is warranted for mothers and fathers

alike.

As an industry, we have to be better. We have

to shake off the mantle of the past and look to the

future. It should not be ‘unusual’ to see a woman in

the C-suite, but rather the ‘norm’.

For women today starting out in their careers

in credit, be clear about what’s important to you.

Set goals, and work out how you are going to meet

those goals. When you see an obstacle in front of

you, knock it down and be prepared to go outside

of your comfort zone. Do that, and anything is

possible.

The Recognised Standard

www.cicm.com June 2017 21


ADVERTORIAL

GROWTH-ORIENTED

RELATIONSHIPS

Faster payments for suppliers, maximising terms for buyers:

how complementary solutions could help.

COMPANIES seeking to accelerate

growth tend to look to outside sources

for funding. Overdrafts, loans, and

venture capital can be the first ports of

call. But what if there was a cheaper source to be

found sitting in a company’s balance sheet?

In fact, working capital is recognised as one of

the lowest cost sources of capital. When unlocked

it can be a legitimate source of funding for

growth and securing competitive opportunities

that otherwise might not have been possible. A

2016 PWC report (1) estimates that a significant

£28 billion in the UK could be freed up for growth

(globally the figure is euro 1.1 trillion).

Not enough companies

know how to gain that

advantage. Working

capital is seen as a matter

of meeting liabilities

when they fall due. In fact,

the cash can be used to

target strategic objectives,

and carries implications

for departments far away

from finance.

Take the supply chain.

A single quick payment

means a counterparty can pay its own bills a

little faster. Faster transactions ripple through

the supply chain in a domino effect, speeding up

settlements and therefore shipments.

Sales teams can leverage working capital to

negotiate better payment terms. For example,

discounts to fast payers can be offered, in

recognition of the contribution they make to

improved working capital.

The challenge is that unilateral action on

working capital is rarely recommended. Moving

payment terms to suit one’s own enterprise

impacts on trade partners, by reducing their

working capital. What is needed is a solution

which helps both parties. A solution by

American Express can achieve this, granting both

The process means the supplier

gets bills paid promptly. And the

buyer gets an improvement to

days payable, helping cashflow.

The contribution to working

capital is obvious. There is also

a long list of secondary benefits.

sellers and buyers improved payment times

simultaneously.

Here’s how it works. The supplier identifies

key customers and arranges for them to use the

American Express solutions. Upon receiving an

invoice, the buyer provides approval to their

supplier who then draws down the

funds on their account, receiving them within

five banking days. The buyer then pays

American Express, in up to 55 days.(2)

The process means the supplier gets

bills paid promptly. And the buyer gets an

improvement to days payable, helping cashflow.

The contribution to working capital is

obvious. There is also a

long list of secondary

benefits.

Sales Managers

benefit from better

relationships with

clients. Instead of putting

accounts on hold due to

payment irregularities,

the sales team can

concentrate on driving

growth or growing

relationships.

The finance team is one the biggest

beneficiaries. Reliance on overdrafts can be

reduced. This transition to a precise payment

schedule means the finance team can construct

cash models to a new level of accuracy. As

working capital improves, the stress of a cash

crunch should recede.

The PWC report on working capital finds a

correlation between slow invoice settlement

and inefficient finance departments: ‘Analysis

of accounts receivables performance shows

that organisations with higher days sales

outstanding typically spend one and a half times

as much on their accounts receivable processes,

and deploy twice as many people to manage

them.’

22 June 2017 www.cicm.com

The Recognised Standard


The smooth processes of Working Capital

Solutions (WCS) can simplify receivables. This

liberates the credit team to focus on other

customer areas or debits.

Furthermore, there is an ethical dimension

to consider. The CICM administers the

Prompt Payment Code (PPC), demanding

on-time resolution of liabilities. This supports

a nationwide campaign by the Department

for Business Energy and Industrial Strategy

(BEIS) which warns that late payment hampers

investment, harms cashflow, and in extreme cases

can put businesses’ solvency at risk. WCS can

play a role in conforming to the PPC.

The solution is versatile, capable of being

tailored to the preferences of each user. For

example, it can be used to maximise days

payable outstanding (DPO), or only when

selling to give buyers more time to pay whilst

reducing days sales outstanding (DSO). WCS

can be adopted in a range of ways to support

your preferences. The team at American Express

provides experts to implement the solution.

Integration with an ERP system is possible,

though entirely optional.

WCS is a debt-neutral solution, operating

independently of other financing. Many

companies use WCS in parallel with bank

credit and other sources of capital. It can

be a complementary addition, rather than a

competitor to existing facilities.

The British Chamber of Commerce Quarterly

Economic Survey reveals the economy is

in a growth phase(3). A net 43 percent of

manufacturing firms and 35 percent of service

firms are confident turnover will increase in the

next 12 months. Working capital could be the

‘missing link’ for companies looking for the capital

to execute a growth strategy. The right technology

and solutions can direct capital to where it can work

hardest.

To find out more visit americanexpress.com/uk/

supercharge

References:

(1) PWC Working Capital Report [£28 billion in the UK could be

freed up for growth (globally PWC estimates the figure at euro 1.1

trillion)]:

pwc.com/gx/en/services/advisory/deals/business-recoveryrestructuring/working-capital-opportunity.html

(2) Fees apply according to the agreement terms

(3) BCC data in the final paragraph:

britishchambers.org.ukQESpercent20Summarypercent20Q4

percent202016.pdf

American Express Services Europe Limited has its registered

office at Belgrave House, 76 Buckingham Palace Road, London

SW1W 9AX, United Kingdom. It is registered in England and Wales

with Company Number 1833139 and authorised and regulated

by the Financial Conduct Authority.

The Recognised Standard

www.cicm.com June 2017 23


THE PERFECT VENUE FOR THIS YEAR’S

CICM FELLOWS’

LUNCH 2017

This year we are inviting you to a truly unique experience at the most

exclusive private members club in London. Join us for a spot of luxury with

a magical mix of 18th century splendour and 21st century avant-garde.

Home House is the perfect venue for this year’s Fellows' Lunch.

WEDNESDAY, 7 JUNE 2017

Arrival drinks served at 12:00

Tickets are £128.00+VAT per person

To book your seat, please email fellowslunch@cicm.com

HOME HOUSE, 20 PORTMAN SQUARE,

MARYLEBONE, LONDON W1H 6LW


LEGAL MATTERS

"A MARVELLOUS AND

VALUABLE SERVICE"

The CICM Legal Helpine in association with Corporate Partner DWF

Helping members to navigate the ever changing legal and regulatory landscape.

DD 0113 261 6169 E david.scottow@dwf.law W www.dwf.law/recover

David Scottow FCICM

THE ever changing legal and regulatory

landscape for credit professionals can

sometimes be complex to navigate.

As CICM Corporate Legal Partner,

DWF offers 30 minutes of free advice to all

members through the ‘free advice line’ section

on the CICM website. Since launching this

service a year ago, we have advised members

on a range of legal, technical and general

issues relating to credit management and debt

recovery as well as a whole range of legal

issues affecting credit professionals.

A member who contacted the advice line

shared his experience:

“I would like to express our thanks for the

excellent support received from CICM and

David Scottow from DWF. In spite of having

strong and carefully drafted contracts in place,

I found the new owners of a business we

rescued reluctant to convert verbal promises

into bank transfers.

“David gave some very pertinent advice,

made some excellent suggestions and

provided an estimate of costs that were

more than reasonable. However, David was

right when he warned about thinking beyond

winning in court and assessing the likelihood

of recovering the cash, (a significant sum),

from the client company. This prompted

me to make further checks that revealed

a disreputable plan to gain credibility with

key customers, push the business into

administration and pre-pack it avoiding trade,

professional and HMRC debts. Clearly, David

was right; we'd be throwing good money after

bad.

“We have decided to avoid the traditional

routes to recovery and have prepared an

alternative administration and pre-pack plan

which is under assessment by the bank, who

are not happy to have been told “alternative

truths’’ by the new owners. We may still lose

our money but we now have a chance of

recovery and have protected our reputation

with the bank and their panel of advisers.

“Thanks again for a marvellous and

valuable service.’’

This member was advised by David

Scottow, Senior Director and National Head

of Recoveries at DWF.

David leads the recoveries team at DWF

and has more than 40 years’ experience

in debt litigation, insolvency and credit

management. Having previously worked for

other leading law firms and in High Court

enforcement and with industry experience as

a credit manager, he has valuable insight and

understanding into the issues faced by clients.

Experienced in the recovery of both volume

and niche consumer and commercial debt,

David has represented clients of all sizes from

sole traders and SME’s to local authorities,

blue chip companies, financial institutions,

utility companies and government bodies.

David’s co-directors are equally wellqualified:

Director Technical, James Perry,

is a solicitor with over ten years of postqualification

experience and is responsible

for all disputed, defended and contentious

matters. Alongside James, Kevin Feehan

specialises in pre-legal collections and civil

recovery while Neil Jinks is responsible for

client relationship management and business

development.

“The 45-strong recoveries team operates

nationally and internationally across all of

our offices. DWF’s increasing client base is

attracted by our unique approach to debt

recovery work. We work collaboratively with

clients utilising debt segmentation and debtor

profiling, applying sophisticated collections

techniques as well as strategic litigation

and enforcement, helping us to achieve the

desired results for our clients. Many years of

working closely with the credit community has

helped us to support a growing list of clients,

who often come to us through personal

recommendations. For some clients, we can

turn their legal spend into a cost neutral or

even a cost positive solution – a surprise to

many when we open up a new revenue stream

from something that is usually a drain on their

finances and other valuable resources. As a

Yorkshireman, cost is a subject very close

to my heart and I can reassure you that our

market research reveals our fees to be more

competitive than most with none of the hidden

extras that are applied by some providers.

“My team and I are passionate about

CICM, the credit profession and legal debt

recovery, so I hope you will find our support

and guidance helpful through our Corporate

Legal Partnership with CICM.”

For more information or to arrange a

meeting, please contact:

Neil Jinks FCICM Director

M +44(0)7740 179515 E neil.jinks@dwf.law

David Scottow FCICM Senior Director

T +44(0)113 2616169 E david.scottow@dwf.law

This information is intended as a general

discussion surrounding the topics covered and is

for guidance purposes only. It does not constitute

legal advice and should not be regarded as a

substitute for taking legal advice. DWF is not

responsible for any activity undertaken based on

this information.

AS A CICM MEMBER YOU CAN RECEIVE FREE LEGAL ADVICE FROM DWF

VISIT THE CICM WEBSITE AND CLICK ON THE FREE ADVICE LINE.

The Recognised Standard

www.cicm.com June 2017 25


ASK THE EXPERTS

OUTSTANDING MATTERS

DSO (Days Sales Outstanding) is a common measure used to measure risk and

performance. But how useful is it? Nigel Fields provides his expert advice.

DSO is a very widely used method

that is intended to help evaluate how

effective a company is at collecting its

trade receivables. It is a metric used to

measure the average number of days it takes

a company to collect what is owed to them

after a sale has been completed. Put perhaps

more simply, it is the average credit period

stated in days.

How to Calculate DSO: DSO = Accounts

receivable/total credit sales x number of days

in period.

A low DSO is an indicator that a company

is working within its credit period and

collecting its receivables quickly; generally,

this is a positive sign.

A high DSO is an indicator that a company

may have extended credit terms and is

collecting its receivables later. This may mean

the company is allowing longer credit terms

and/or there might be a lack of effort or focus

on credit collections.

Typically, you do not really want the DSO

to exceed your terms by terms + 15 days. If

you operate on payment terms of 30 days,

and you’re seeing a DSO of between 30 to 45,

you’re doing well. Similarly if you operate on

payment terms of 90 days and you’re seeing

DSO of up to 105, you are also doing well, but

in the context of two very different numbers.

The conventional methodology for

calculating Days Sales Outstanding leans

very heavily on a company’s payment terms,

average sales, or even a running 12-month

average. Consequently, this approach

overlooks the impact of where sales fluctuate

(such as in movies) and can often provide

a very misleading picture of the collection

team’s performance. It also often requires

considerable investigation and explanation.

A simple example will help illustrate the

point: if your sales increase and your past

due receivables stay the same in a month,

your DSO will go down. But this does not

mean your collection efforts have become more

efficient. Personally, I never use DSO as an

indicator for success or failure with collections

as it is too easily impacted by short-term

fluctuations in either terms, sales volumes or

collections.

I am a strong believer that the best measure

for receivables collection performance, and one

that also readily identifies potential issues (as

well as being very easy to calculate) is simply to

use aged values and percentages of your total

accounts receivable.

I have found this to be the most meaningful

and the best metric of all. It allows for a very

quick indicator of collection performance, and

very speedily highlights issues that need to be

addressed. DSO can be useful, but it is not the

‘be-all and end-all’ indicator of your accounts

receivable performance.

Nigel Fields is a member of the CICM Think Tank and

Executive Director of Credit at Fox Entertainment Group

I am a strong believer that the best measure for receivables collection

performance, and one that also readily identifies potential issues (as well as

being very easy to calculate) is simply to use aged values and percentages

of your total accounts receivable.

26 June 2017 www.cicm.com

The Recognised Standard


TRADE TALK

NEGOTIATING TABLE

Lesley Batchelor OBE FCICM considers the issue

of Free Trade Agreements post-Brexit.

ONCE the UK has negotiated its exit

from the EU, it will be in a position

where it needs to start negotiating

deals with partners around the world.

Any discussions could potentially include the

EU, depending on whether the two parties

successfully agree a trade agreement as part

of the negotiations for leaving.

Any Free Trade Agreements (FTA) that

the UK goes on to negotiate with new

partners could become a major factor for UK

businesses when deciding where they could

export their goods and services to.

One of the major impacts that an FTA can

have on companies selling goods to overseas

countries is tariff reductions. When countries

negotiate FTAs with other countries, they do

so with the view to reducing tariffs on goods

that the countries want to facilitate easy trade

on. Therefore, many of the tariff reductions

that the UK has as part of its being in the EU

will no longer be applicable upon its leaving

– again, depending on the outcome of the

negotiations.

If you are selling into a country with which

the UK does not have an agreement in place,

the likelihood will be that the UK will need to

sell according to World Trade Organization

(WTO) rules. Under WTO rules, and since the

Uruguay Round concluded in 1994, no one

country can place less favourable tariffs for

a particular good being sold into it than that

which it has set for the ‘Most favoured Nation’

(MFN).

According to fullfact.org: ‘The principle

of non-discrimination means that WTO

members must not treat any member less

advantageously than any other: grant one

country preferential treatment, and the same

must be done for everyone else’.

This will mean that the UK will not be able

to have a better tariff situation than any other

country does when selling into countries it

has no FTA with. The UK will be on the same

footing importing and exporting goods into and

from the USA, for example, as one of the USA’s

less preferred trading nations who are part

of the WTO – like Bolivia, say. Until an FTA is

agreed between the UK and the US, WTO rules

would incur higher tariff costs for UK businesses

looking to import or export goods from the US.

In reference to trade with the EU, fullfact.org

states: ‘Given that MFN tariffs would be imposed

on many of the UK’s goods exports to the EU, it

might mean many exporters become less price

competitive than their counterparts operating

within the EU, and those within countries

with which the EU has preferential trading

relationships.

‘The House of Commons Library says that

because the UK has negotiated as part of the EU

at the WTO, it is likely that we will inherit the EU’s

tariff regime when we leave. This would mean

that UK consumers could face higher prices, at

least initially, when buying imports from the EU.’

In effect, if we don’t get an FTA or transition

deal with the EU as part of the negotiations for

leaving it, tariff costs will make exporting into

the EU more expensive and the same applies for

importing too.

For UK businesses looking to determine the

impact of WTO tariffs on selling into different

markets, and then the potential impact of FTAs

as and when they are agreed, it will be important

to know how to determine what tariffs you’ll need

to pay for the goods you are selling.

Use the following process to find tariffs

you’ll pay when exporting or importing goods:

determine the Harmonized System (HS) code of

the product(s) you want to export; confirm the

correct code by speaking with an expert; and

check the tariff schedule of your target market.

A useful tool for checking your HS and then

your tariffs is Market Access DataBase madb.

europa.eu/madb/indexPubli.htm.

Exporting and importing services will also

be affected by the FTAs the UK manages

to secure in the coming years. The North

American Free Trade Agreement (NAFTA)

and Comprehensive Economic and Trade

Agreement (CETA) are both examples of trade

deals in which a service provider is treated

as a national rather than an international

company. They remove barriers such as

demanding a physical presence in the

overseas market. These FTAs also facilitate

trading services by making visas easier to

attain for entering between these markets.

When the UK has left the EU, it will be

important for UK businesses to be vigilant and

current with the UK’s new trade agreements

with partners including and beyond the EU.

Reality is that any FTAs coming to fruition

will have a significant impact on costs – and

therefore profits to be made – selling into

overseas markets.

For a comprehensive understanding of how

FTAs work and how you can prepare for them

as a business, we recommend checking out

the Institute of Export and International Trade’s

bitesize module: The World Trade Organisation

Explained (export.org.uk/store/ViewProduct.

aspx?id=8766417).

SOURCES: fullfact.org/europe/uk-leaving-eutrade

and tradeready.ca/2017/topics/marketentry-strategies/how-can-canadian-smesbenefit-from-free-trade-agreements-anyway

Lesley Batchelor OBE FCICM is Director

General of The Institute of Export and

International Trade

The Recognised Standard

www.cicm.com June 2017

27


INTERNATIONAL

TRADE

MONTHLY ROUND-UP OF THE LATEST STORIES

IN GLOBAL TRADE BY ANDREA KIRKBY.

CHINA continues to navigate the choppy waters

between planned deceleration and crash landing,

and the Bank of China has started to tighten

its fiscal policy and is moving rates upwards a

touch. This is likely to mark the beginning of a

process of corporate deleveraging, which along

with Renminbi devaluation could put the squeeze

on some companies. Firms that are highly

indebted, or which are large importers, could find

life getting much harder.

CHERRYPICKING CHINA

According to Coface, payments experience

improved in China last year, but there's an

increasing gap between good and bad payers.

The proportion of companies experiencing

overdue payments fell from 80 percent to 68

percent of those surveyed, but ultra-long term

overdues (180 days plus) are on the rise. Over a

third of companies now have over two percent

of their turnover tied up in these overdues,

unlikely ever to be paid – and if your margins are

low, a two percent write-off could wreck the

business.

Coface warns that chemicals, electronics

and industrial machinery sectors all look risky.

But worst of the lot is construction, where

higher costs and a slowing real estate sector

will exacerbate low margins. So, if you're

trading into China, pick your customers very

carefully and keep an even closer eye than

usual on your overdues.

BREXIT PROBABILITIES

EULER Hermes has just produced an

interesting piece of research looking at the

likely impact on Brexit on exporters and on

the British economy. It reckons there's a 25

percent chance of an extensive free trade

agreement that replicates in many ways what

we have now. That would have a very limited

impact on the economy, and sterling would

probably appreciate against the euro in a relief

rally.

Euler Hermes puts the probability of a more

limited free trade agreement at 55 percent.

That might not be too bad for exporters of

goods, who would see tariffs of just one to

three percent, but service providers would see

ten percent added to their prices, and sterling

depreciating five to seven percent wouldn't

make up all the difference. Euler Hermes

reckons the limited-free-trade scenario would

see the economy decelerating and insolvencies

increasing – so the most likely future for Brexit

Britain is a depressing one.

But worse, there's a 20 percent chance of

no agreement at all. That doesn't just mean

tariffs – it means restrictive non-tariff barriers,

leading to what Euler Hermes calls ‘supply

chain chaos’. Some £30 billion of goods

exports will be lost while services will see

even higher losses at £36 billion as the loss

of financial services passporting destroys the

City's ability to compete. Under this scenario,

Euler Hermes reckons sterling will fall 20

percent, inflation will accelerate, and Britain will

enter full scale recession from 2019 onwards.

And that's a one in five chance. It's a

disaster waiting to happen. Make sure you've

done your research, and got a contingency

plan for what happens if the muck does hit the

spreader.

SLOW TRAIN TO CHINA

THERE'S a romance to great trains – the

Flying Scotsman, the Orient Express, the

Trans Siberian. From April 2017 there's also

an export train to China.

China has been running trains to Europe

for a while, though it's a rather one-sided

trade, with nearly two thousand train loads

coming to Europe, and only 500 or so making

the return journey. It's the new Silk Road – or

rather, Silk Rail. Now the first train has headed

out from the UK, loaded with soft drinks,

vitamins, baby products, pharmaceuticals.

It's vastly cheaper than flying goods

out, and ideal for high value products with

relatively low weight and mass – though the

train hasn't got the immense load carrying

capability of sea transport. It’s worth looking

into if you've got the right kind of product.

As for me, I'm wondering if they'll sign me

on as a driver...

28

June 2017 www.cicm.com

The Recognised Standard


ARGENTINA EMERGES

EULER Hermes has just improved its rating

for Argentina, as President Macri’s plan

begins to bear fruit. Growth is returning,

inflation is dropping (though still at 20

percent), and exports are beginning to rise.

Crucially, Argentina has regained access

to international capital markets, giving the

country the ability to fund investment in its

future.

The British Government has already

noticed, and announced a £1 billion

export credit support for British exporters

to Argentina in March. Infrastructure

opportunities abound, and the large

agricultural sector in Argentina also gives

PYRAMID SELLING

Since Egypt abandoned its dollar peg in November 2016, the Egyptian pound

has devalued 50 percent and inflation has surged. But the latest figures

suggest the shock treatment has worked, with inflation starting to subside;

the rise in import costs should help close the trade deficit, while cuts

in public subsidies should help balance the budget. Foreign currency

reserves increased from three to seven months of imports – a better

safety margin. Economic recovery is now expected in 2018 though

growth rates will still be low at 1.5 percent.

However dim this picture looks, there are some interesting

opportunities for British exporters. The Government has

made education a priority, aiming to increase participation

in technical and university education by 50 percent before

2021, and there's a wave of investment going into both

public and private sector schools and universities. A

public/private partnership approach opens the way to

British education providers. Tourism infrastructure,

too, is being improved, and there are more

conventional infrastructure opportunities in

desalination plants, waste water treatment, and

power generation, as well as in the oil and gas

sector.

You'll need to be brave to make the most

of Egypt, and you'll need a strategy for

dealing with the still vulnerable currency.

But Egypt does look more interesting

than it has for a while.

THE pundits told us it would be Le Pen and

Macron going into the second round of the

French election, and they weren't wrong.

But many were still hesitant to forecast the

outcome of the second round. In the event,

Macron won very handily indeed. That removes

one of the major political risks this year,

leaving only the German elections to come.

And with the right wing and anti-EU Alternativ

fur Deutschland now engaged in a vicious

internal struggle after leader Frauke Petry said

she won't stand in elections for Chancellor,

and leaking support in the polls, it looks like

Germany too will vote for a pro-EU candidate.

That’s not necessarily great news for the

UK. Macron takes the same tough line on

Brexit as President Hollande – if you're not

signed up to free movement and the European

agritech businesses a great chance to

prosper. There’s also a high growth ICT

sector which gives opportunities for

hardware, software, content and consultancy

sales – and given the Mercosur agreement,

Argentina's not a bad place to set up in order

to access other Latin American markets.

A word of warning though. Getting paid

can take a lot of persistence, and the judicial

system is slow if you need to enforce a

contract. Plus, of course, although an EU/

Mercosur agreement is due at the end of the

year, and should make trade easier, you can’t

count on being able to benefit from it after

2019.

DISASTER AVERTED?

Court of Justice, sorry, no single market. And

as shown by the recent news that Trump –

having said he'd put a new trade deal with

Britain at the front of the queue – has now

bumped it down the list in order to prioritise

an EU deal, a resurgent EU could make life

tougher for British exporters.

Macron has a tough job to do. If he doesn't

manage to reduce unemployment and give

ordinary French voters a feeling that things

are looking up, the far right could still gain

traction. (Remember too that one of the other

big surprises of the election was the terrific

performance of leftist Jean-Luc Melenchon,

another anti-EU politician.) But for the moment,

he seems to be playing his cards well in

advance of the next big hurdle, elections for

the legislature in June.

NEWS IN BRIEF >

WINDS OF CHANGE

THE UK renewables sector has become one of

our star exporters over the last year, signing over

500 contracts in more than 40 different countries.

We’re exporting wind and tidal turbines, but

we are also exporting expertise with numerous

consultancy contracts as well as gaining business

for wave and tidal testing centres in Cornwall

and Orkney.

That’s great stuff – but as trade body

RenewableUK points out, Brexit together with

lack of government support risk letting business

down. Our exporters need help to ensure they

continue to prosper; let’s hope they’ll get it.

MILKY MILKY

KENDAL Nutricare is in the finals of the FSB/

Worldpay Business Awards 2017. And it's all

down to its success in exporting its Kendamil

infant formula powdered milk.

It's not simple. There’s a halal version for the

Middle East, Kendamil Halal, while the kosher

Kendamil Mehadrin does well in North America.

And Kendamil's USP is that it’s made with full

cream milk – unlike its skimmed milk opposition.

It's done particularly well in China, where a

contaminated baby milk scandal in 2008 has led

consumers to switch to the more trusted British

product. Proof that paying close attention to what

your markets want can take your business out of

the ordinary and into another class.

CURRENCY UK

FOR THE LATEST

EXCHANGE RATES VISIT

CURRENCYUK.CO.UK OR

CALL 020 7738 0777

Currency UK is authorised and regulated

by the Financial Conduct Authority (FCA).

HIGH LOW TREND

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GBP/USD 1.1969 1.1660 Up

GBP/CHF 1.3054 1.2460 Up

GBP/AUD 1.7620 1.6410 Up

GBP/CAD 1.7818 1.6551 Up

GBP/JPY 147.80 135.89 Up

The Recognised Standard www.cicm.com June 2017

29


LEGAL MATTERS

CARELESS

TALK

Peter Walker illustrates how the legal professional privilege appeared

to have been overlooked in very complicated cross-border insolvencies,

and how the judges of the Court of Appeal responded.

CREDIT professionals who consult solicitors will

not usually want their conversations with their

lawyers used as evidence in a subsequent trial

in court. Those conversations, normally noted

in attendance notes, will be subject to legal professional

privilege, so a debtor cannot demand to see those

documents. The extent of this rule was reviewed in a

complicated case involving people and companies from

many parts of the world,

In Shlosberg v Avonwick Holdings Ltd [2017] 2 WLR

1075 the judges of London’s Court of Appeal were asked

to rule on whether a firm of English solicitors should

continue to act for two of the parties. A bankrupt was

concerned that the firm would reveal documents that

should have been subject to legal professional privilege.

The bankrupt was a Russian businessman domiciled

in England. He was the beneficial owner of a company

incorporated in St Vincent and the Grenadines. His

family were the beneficiaries of a discretionary trust

owning another company.

Yet another company (‘Avonwick’) registered in

the British Virgin Islands, then came onto the scene.

It was beneficially owned by the wife of a Ukrainian

businessman. The bankrupt, then not bankrupt – that

was to come later – approached that businessman with

an investment proposal concerning a Dutch company.

The bankrupt was a Russian businessman

domiciled in England. He was the beneficial owner

of a company incorporated in St Vincent and the

Grenadines. His family were the beneficiaries of a

discretionary trust owning another company.

There was a plan to delist its shares in London and to

re-list them in Hong Kong with the prospect of increasing

their value.

To achieve this aim money was needed to repay bank

loans. The bankrupt was prepared to lend half of the

US$200 million needed, and the Ukrainian businessman

was willing to lend US$ 100 million to the bankrupt to

provide all the cash needed.

Avonwick became the lender of the US$100 million

borrowed by the bankrupt’s company, and he was the

guarantor. The US$200 million was lent to a Liechtenstein

company of the owner of the Dutch company; all very

confusing!

The Liechtenstein company then failed to repay its

loan on the due date, so the bankrupt’s company did not

repay the money it had borrowed from Avonwick. The

bankrupt’s company responded by starting arbitration

proceedings against the Liechtenstein company. It was

resolved by a series of settlement agreements, but the

Liechtenstein company was placed in liquidation.

ENFORCING THE JUDGMENT

This was followed by a statutory demand served by

Avonwick on the bankrupt and on his company for over

US$180 million being the loan of US$100 million and

interest. There followed litigation, and different firms of

solicitors represented the two defendants.

The defendants refused to disclose certain

documents relating to the arbitration, but they released

some of them before the trial. The trial judge, Sales J,

gave judgment for Avonwick, and awarded over US$195

million plus interest. He also awarded costs on an

indemnity basis, the maximum possible.

Credit professionals well know that a favourable

court judgment is not the same as getting the money.

30 June 2017 www.cicm.com

The Recognised Standard


three cases of counsel, of solicitor and of attorney. The

rule has been much developed since then, but in Bolton

v Corporation of Liverpool [1833] 1 My and K 88 Lord

Brougham affirmed in the style of his time, that otherwise

‘No man will dare to consult a professional adviser with a

view to his defence or to the enforcement of his rights.’

Lord Nicholls of Birkenhead in R v Derby Magistrates

Court noted that the accused had been publicly

acquitted of murder, so had ‘a legitimate interest in not

disclosing material which would point in the opposite

direction.’ He was entitled to claim the privilege.

In the Avonwick case there were other factors such as

sections 283(4) and section 436 of the Insolvency Act.

The question was whether or not the property in the

documents as being part of the bankrupt’s estate vested

in the Trustees in Bankruptcy. Section 436, for example,

defined property very widely.

Sales J granted a worldwide freezing order against the

bankrupt, his company, and the company owned by the

bankrupt’s discretionary trust.

It was all too much for the bankrupt, who then

became officially bankrupt. A winding-up order was

made against his company.

Avonwick was not satisfied, and commenced

proceedings against the company owned by the

bankrupt’s discretionary trust under section 423 of

the Insolvency Act 1986. This provision relates to

‘transactions defrauding creditors’. To further its

case Avonwick obtained disclosures of the remaining

documents relating to the arbitration.

Avonwick then added many of the other companies

and people involved in the loan transactions, but

it initially did not include the bankrupt. Section

285(3) of the Insolvency Act imposes a stay on the

commencement of proceedings against a bankrupt. All

such barriers were eventually overcome.

There was then an interruption. Firstly, shortly after

their appointment the trustees in bankruptcy had

appointed a firm of solicitors. In accordance with section

311(1) of the Insolvency Act they required the bankrupt

to provide information concerning his affairs.

DUEL REPRESENTATION

That is very clear, but Avonwick had appointed the same

firm. The bankrupt’s solicitors were concerned about

this dual representation, and were not satisfied that

the safeguards put in place by the firm were sufficient

to protect the bankrupt. In this aspect of the affair the

bankrupt became the claimant and Avonwick became

the defendant. The judges of the Court of Appeal

consequently had to decide whether to prevent the firm

of solicitors acting both for the trustees in bankruptcy

and for the principal creditor.

This is important because the firm of solicitors would

have documents about the legal advice given to a

client. This information is subject to legal professional

privilege, and should not be disclosed to anyone other

than the client. There is a potential problem when the

firm is effectively acting for two parties with differing

interests.

The principles were reviewed by the Law Lords in a

murder case, R v Derby Magistrates Court, Ex p B [1996]

AC 487. The appellant did not want his former solicitor

to produce certain documents in committal proceedings

against his stepfather. The appellant had firstly admitted

to a murder, then retracted his story, and finally claimed

that his stepfather was the murderer. He was acquitted,

but some years later the stepfather was charged with the

crime. The appellant gave evidence, but refused to allow

the disclosure of notes made by his solicitors at the time

he was making the original statements.

The Law Lords referred to the decision in Wilson v

Rastall [1792] 4 Term Rep. 753, where it was decided

that in those days the privilege was confined to the

PRIVILEGE AS A FUNDAMENTAL RIGHT

In response the Master of the Rolls in the Court of

Appeal, Sir Terence Etherton MR, noted various

previous judgments including one in the Alberta Court

of Appeal in Canada. In Deloitte & Touche Inc v Bennett

Jones Verchere [2001] 206 DLR (4th) 280 the judges

considered similar Canadian statutory provisions, and

concluded that privilege was a personal right, personal

to the bankrupt, and was not property. In R v Dunwoody

[2004] 212 ALR 103 the judges of the Supreme Court of

Queensland, Australia, added that the right can only be

removed by statute.

In the UK the provisions of section 311(1) of the

Insolvency Act 1986 could possibly have been such a

removal. It gives the trustee in bankruptcy the power to

take possession ‘of all books, papers and other records’

relating to ‘the bankrupt’s estate or affairs’ and which

belong to him or her or which are under his or her

control ‘(including any which would be privileged from

disclosure in any proceedings)’.

Sir Terence Etherton MR was not convinced. He

referred to the decisions in the Derby Magistrates and in

other cases, which kept ‘in focus the status of privilege

as a fundamental right.’

He also referred to the decision of Stanley Burton QC

sitting as a deputy judge of the Chancery Division in the

case In re Cook [1999] BPIR 881. The deputy judge ruled

that the bankruptcy trustee could authorise a solicitor,

who had formerly acted for a bankrupt, to provide

information to the Serious Fraud Office, i.e. a waiver of

the privilege. Sir Terence Etherton MR did not follow

the case, and said that, through no fault of his own, the

deputy judge’s reasoning and decision was incorrect.

He concluded in the Avonwick case that nothing

waived the bankrupt’s privilege. He approved the ruling

to that effect in the lower court, in that he confirmed the

injunction requiring the firm of solicitors to cease acting

for the creditor in respect of any matter relating to the

bankrupt or his affairs.

This was another complication in already

complicated litigation. It is, however, good to know that

any notes made by solicitors in a meeting with clients,

perhaps including credit professionals, will remain

confidential and subject to legal professional privilege.

The Avonwick case, on the other hand, illustrates that in

complicated cases mistakes can be made. If, however,

solicitors already representing a creditor should be

appointed, care must be taken to ensure that there is no

conflict of interest between the two roles.

The question was whether or not the property

in the documents as being part of the bankrupt’s

estate vested in the Trustees in Bankruptcy. Section

436, for example, defined property

very widely.

The Recognised Standard

www.cicm.com June 2017 31


OPINION

CREDIT

CONUNDRUM

Michael Feldwick MCICM(Grad) explores the different

challenges that receivables financing companies face.

ALONGSIDE the credit management

function, businesses can also use

invoice financing – asset-based lending

to finance accounts receivable – or

invoice factoring through which companies

sell their accounts receivable to improve their

working capital.

But when it comes to improving their risk

management processes, many receivables

financing and factoring companies face unique

challenges over and above those faced by

credit professionals. They are working with

multiple customers, who themselves have

multiple customers and, as a result, often have

to manage multiple credit insurers’ policies.

For them it’s crucial to optimise their credit

risk programmes through timely and accurate

information collection and invoicing.

But that is not the only consideration.

In recent years, banks offering receivables

financing arrangements have been obliged to

comply with the Basel III regulations. While

these are designed to ensure the solvency

of lenders, they have also introduced higher

capital requirements and new rules on

managing liquidity that have been challenging

and expensive to meet. Changes have been

made following criticism that the rules are overly

detrimental to trade finance businesses, but

the fact remains that a higher amount of the

organisation’s regulatory capital must now be

allocated, at least notionally, to every loan or

finance arrangement made.

Against this backdrop, it has become vital

for receivables financing companies to be much

sharper, not just in terms of governance, but

also in finding ways to identify risk, to introduce

accurate controls, and to aggregate their credit

exposure across the ledger. There has also

been greater collaboration with credit insurers

where credit insurance is wrapped around the

transaction.

Increasingly companies offering nonrecourse

finance wrapped with credit insurance

are turning to technology for help. For the

majority of receivables financing companies and

factors, the primary requirement from dedicated

trade credit management solutions is to assess

their clients’ financial performances in order to

make credit risk decisions. But there are many

other benefits, including greater visibility across

portfolios, the opportunity to make pre-sales

processes more reliable and support for rapid

decision making which leads to improved

customer relationships. These types of

solutions are being utilised as a way to support

fundamental processes that extend beyond the

finance function and facilitate business growth.

CASE IN POINT

One of the UK’s leading invoice financing

specialists provides an interesting example of

how technology has made a big difference to its

operation. It integrated a Software-as-a-Service

(SaaS) solution to provide credit intelligence and

operational reporting when launcing a nonrecourse

programme. The programme had been

growing very quickly and became too large to

manage manually.

The organisation was concerned about the

impact of introducing another system, and

specifically looked for an ‘open’, cloud-based

solution that could be integrated without

disruption. It immediately identified that the

solution could process and analyse a high

level of data and was able to reduce overall

manpower and keep a core team of just

five. One of the major bonuses was that the

intelligence being gathered about the payment

performance of customers could also be shared

with the credit insurers, and because the

solution was acting as a bridge, it could also

draw in information from the credit insurers too.

The result was access to vital, actionable data

in real-time for all the parties involved.

Because decisions could be taken based

on accurate intelligence, the invoice financing

company was able to take more calculated risks

in terms of its credit limits, and this allowed its

programme to expand by 25 percent in just a

year.

In the same way that businesses are

using credit insurance to protect their risk, so

receivables financing and factoring companies

are increasingly becoming credit insured for

the same reason, and software technology has

a big part to play in reducing the costs of that

insurance, supporting the compliance of the

conditions and in alleviating tight regulatory

controls.

The accuracy and management of

information across the lender’s portfolio reduces

their risk and should enable them to command

the best terms available from credit insurers.

The grading of the insurance company can

influence the capital that they have to hold, so

whilst still complying with governance, they

are also given more freedom to trade. The

bottom line is that access to real-time customer

information has multiple benefits, regardless of

who holds the debt.

Michael Feldwick MCICM(Grad) is Head of UK

and Ireland, Tinubu Square.

32 June 2017 www.cicm.com

The Recognised Standard


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ENFORCEMENT AGENTS

TIME TO PROVE YOUR CONTINUOUS

PROFESSIONAL DEVELOPMENT

Taking Control of Goods CPD package is the cost-effective way to remind yourself

of enforcement law and best practice regardless of how you initially qualified.

Access the definitive TCG Guidance, fully updated and

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to reduce work downtime. Find a convenient time before or

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Visit www.qualifications.cicm.com to find out more and book.

‘This is the definitive guide for CPD and

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Barrie Minney. Chair, Local Authority Civil Enforcement Forum.

Senior Enforcement Agent, Brighton & Hove City Council

‘HCEOA are proud to have developed this Best Practice

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which can be easily accessed near home or work.’

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PAYMENT TRENDS

BALMY SPRING

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

Group, analyses the latest monthly business-to-business payment performance

8 7 6 5 4 3 2 1 0

0 1 2 3 4 5 6 7 8

Getting Better

APRIL 2017 was nothing if not

beyond payment terms (DBT). This is a level

eventful. United Airlines +0.6 and Scotland White not achieved since September last year, and

House Press Secretary, Sean Spicer, a significant improvement from 16 DBT in

+2.4

battled for the award for worst North PR West March.

disaster, before the biggest +0.1 news of Yorkshire the month & Humberside

In complete contrast, should there be a

(and year to date) broke when Theresa May prize for the most spectacular fall from grace,

announced a ‘snap’ West general Midlands election 0 on 8 the Education sector would be the runaway

June.

winner. Having reached its lowest (DBT) level

Thankfully, back East in Midlands the world of credit -0.2 to date in March, which was also the lowest

management things East have Anglia not been quite -0.1 so ever score recorded by our audit across all

turbulent (no pun intended). While April did sectors, the sector shot up to ten (DBT) during

see the industry-wide average Wales for bill -1.6 paying April, a huge 500 percent increase.

creep up to 13 days beyond terms (DBT) after However, when looking in wider context

what was a record-breaking +1.5 month South in March West over the three years we have been reporting

(11 days), this is consistent with the same on industry payment trends, such a fluctuation

South East -1.4

time last year and a 19 percent decrease on is not a complete anomaly for the Education

the same time two years ago. +1.8 London sector. It’s one that has experienced both

As we know all too well, fighting the culture highs and lows at various points throughout

of late payments Northern remains Ireland

ongoing -1.2 battle

for businesses of all sizes across all sectors.

Getting Worse

The role of the credit management industry

in this fight remains as crucial as ever, but Sector Sector

perhaps none more so than now after post

Article 50 ripples have spread.

While it’s not been a bad start to the

second quarter of the year, now is not the

time for complacency. If the picture across

our core industry sectors is to remain as rosy

Financial

as the foundations laid during quarter one,

& Insurance Manufacturing

then we will need to see some improvement Getting Better -6.5 -1.8

moving forward.

INDUSTRY SECTORS

If there was a special award for the most

improved sector this month, then the Finance

and Insurance sector would be raising its

glass once again. For the second month in

a row the industry has topped our ‘Getting

Better’ table, with further improvement in April

seeing the sector fall to an average nine days

Getting Worse

Top Five Prompter Payers Apr-17 Change on Mar 17 Bottom Five Poorer Payers Apr-17 Chang

38 June 2017 www.cicm.com

Entertainment 7.6 0.0

International The Bodies Recognised Standard 19.3 1.5

Agriculture, Forestry and Fishing 8.2 -0.6

Energy Supply 17.3 3.9

Education

+8.3

Top Five Prompter Payers

Business

from Home

+4.7

the years, albeit with no clear distinguishable

pattern in terms of time periods.

On a more positive note, Manufacturing,

so often the flag-bearer for the general health

of the UK’s economy as a whole, started

quarter two on a solid footing. The sector saw

payment conditions improve from 14 (DBT) in

March to 13 days in April.

Meanwhile, the Retail sector, like

Manufacturing also a key indicator for the

economy’s strength, opened quarter two with

a repeat performance March at an average of

ten days beyond payment terms.

REGIONS

April was essentially a case of steady as you

go from a regional standpoint, with no change

in payment conditions across East Anglia, the

South East, South West, West Midlands or

Yorkshire and Humberside.

The best performing area was Northern

Ireland, which dropped down to ten (DBT)

having been at 12 during March.

Agriculture,

Forestry

& Fishing

-0.6

Energy Supply

+3.9

Public

Administration

-0.1

Health

& Social

+3.3

Business Admin

& Support

0.0

Transportation

& Storage

+3.3

Bottom Five Poorest Payers


.6

.4

s

.8

rse

Real 0 Estate 1 2 3 4 59.3 6 0.6 7 8

Bottom

Hospitality

Five Poorest Payers

9.6 0.0

International Bodies 19.3 1.5

Getting Energy Better Supply 17.3 3.9

Water & Waste 17.1 0.1

Scotland

Mining Quarrying 16.5 2.4

Construction 14.2 0.0

North West

.1 Yorkshire & Humberside

s 0

s

ia

.5

st

d

Getting Better

Sector

Getting Worse

Bottom SectorFive Poorest Payers

Top Region Five Prompter Payers

-0.2

-0.1

-1.6

South West

-1.4

London

-1.2

Financial

& Insurance

-6.5

Education

+8.3

Top Five Prompter Payers +8.3

Manufacturing

-1.8

Business

from Home

+4.7

Agriculture,

Forestry

& Fishing

-0.6

17 Bottom Five Poorer Payers Apr-17 Change on Mar 17

Agriculture,

International Bodies Financial 19.3 1.5 Forestry

& Insurance Manufacturing & Fishing

Energy Supply 17.3 3.9

Getting Better -6.5 -1.8 -0.6

,

ergy Supply

+3.9

Water & Waste 17.1 0.1

Mining and Quarrying 16.5 2.4

Getting Construction Worse

Education

14.2 0.0

Business

from Home

+4.7

Top Five Prompter Payers Apr-17 Change on Mar 17

Entertainment Business Admin

7.6 0.0

& Support

Agriculture, Forestry and Fishing 8.2 -0.6

Financial and 0.0 Insurance 9.1 -6.5

Real Estate 9.3 0.6

Health

Hospitality

Transportation

9.6 0.0

Public

Administration

-0.1

& Social

+3.3

& Storage

+3.3

Top Five Prompter Payers Apr-17 Change on Mar 17

Entertainment 7.6 0.0

Agriculture, Forestry and Fishing 8.2 -0.6

Financial and Insurance 9.1 -6.5

17 Bottom Five Poorer Payers Apr-17 Change on Mar 17

This is actually its best ever performance, and

if there is further improvement next month, it

would join the South West, West Midlands,

East Anglia and Wales as the only regions to

ever reach single figures for (DBT).

Alongside Northern Ireland, the only

two other regions to improve their payment

performance were Wales and the East

Midlands, both of which paid their bills on

average ten days beyond terms having been

at 11 in March.

The slowest paying regions in April were

Scotland and the North West, with businesses

in both areas paying their bills on average 14

days beyond terms. However, this represented

a bigger fall from grace for the North West,

having been at 12 (DBT) in March.

Elsewhere, the South West maintained its

performance from March during April, again

being the only region to record single figures

as it held its level of nine days. This is 25

percent under the regional-wide average for

the month.

Region

Health

8 7 6 5 4 3 Transportation 2 1 0

& Social

& Storage

+3.9

+3.3 +3.3

Energy Supply

Energy Supply

+3.9

Public

Administration

-0.1

If there was a special award for the most

improved sector this month, then the

Finance and Insurance sector would be

raising its glass once again.

Public

Administration

-0.1

& Social West Midlands

& Storage 0

+3.3 +3.3

East Midlands -0.2

International Bodies 19.3 1.5

East Anglia -0.1

Energy Supply 17.3 3.9

Water & Waste Wales 17.1 -1.6 0.1

Mining and Quarrying 16.5 2.4

Construction +1.5 14.2 South West 0.0

South East -1.4

+1.8 London

Northern Ireland -1.2

International Bodies 19.3 1.5

Energy Supply

Getting Worse

17.3 3.9

Water & Waste 17.1 0.1

Mining and Quarrying 16.5 2.4

Construction 14.2 0.0

10

Financial

& Insurance M

5

Getting Better -6.5

Region Apr-17 Change on Mar 17

Getting Worse

0

Wales 9.1 -1.6

North West

Educatio

South East 9.6 -1.4 Getting Worse Scotland

+8.3

East Anglia 10.0 -0.1

Yorkshire and Humbers

Northern Ireland

Scotland

10.3 -1.2

London

13.8 DBT

East Midlands 10.4 -0.2

West Midlands

Top Five Prompter Payers

Northern

Ireland

10.3 DBT

Business Admin

& Support

0.0

Region

Health

Business Admin

& Support

0.0

+0.6

+2.4

+0.1

Transportation

Bottom Five Poorest Payers

Wales

9.1 DBT

North West

14.3 DBT

0 1 2 3 4 5 6 7 8

Getting Better

Scotland

North West

Yorkshire & Humberside

Bottom Five Poorer Payers Apr-17 Change on Mar 17

Bottom Five Poorest Payers

Bottom Five Poorer Payers Apr-17 Change on Mar 17

West

Midlands

11.1 DBT

South West

10.8 DBT

Region

Yorkshire &

Humberside

13.6 DBT

East

Midlands

10.4 DBT

London

13.4 DBT

East Anglia

10.0 DBT

South East

9.6 DBT

25

20

15

Bottom Five Poore

s

The Recognised Standard

Financial

Bottom Five Poorest Payers

& Insurance

Manufacturing

Agriculture,

Forestry

& Fishing

www.cicm.com Public June 2017 Business Admin 39

Administration & Support


COUNTRY FOCUS

The country has a wealth of natural

resources, a good banking system,

a reasonable tax structure and a

business culture that chimes with

that of the UK.

Aerial View of Cape Town Coastline South Africa

40 June 2017 www.cicm.com

The Recognised Standard


In the first of a two-part article in our ongoing country

focus series, Adam Bernstein delves into the South African

economy and what the future may have in store.

SOUTH Africa has a long and interesting

history. While it has some of the oldest

human fossil sites in the world, it’s more

(recently) known for the Zulu and Boer

wars, apartheid and the freedom movement led

by the late Nelson Mandela.

The country has an area of some 1.22km 2 but is

only 24th in the world rankings on landmass. It’s

a parliamentary democracy that has a population

of around 55 million (2015 estimate – almost

double the 29 million population in 1980) that

speak 11 official languages because of diverse

origins, cultures and religions. Visitors to the

country will find it easy to see why it’s been

termed the Rainbow Nation; considering South

Africa’s history and long reviled former policy

of apartheid, the country has made great strides

towards racial harmony.

ECONOMIC WEAKLING

The country’s economy is the second largest

in Africa, after Nigeria. It’s GDP (based on

purchasing power parity in 2016) is $736 billion.

To put this into context, Nigeria’s equivalent GDP

is $1,088 billion, while the UK’s is $2787 billion.

Despite South Africa’s relative wealth, the country

is struggling with poverty and unemployment.

The post-apartheid economy has picked

up – after 1994, inflation and public finances

were stabilised and, since 2004, the economy

has grown but that growth has slowed in recent

years. According to Focus Economics, growth in

2011 was 3.2 percent but by 2015, was only 1.3

percent.

Part of the problem for the poor performance

of the economy is that under the current

president, Jacob Zuma, state-owned firms have

grown in importance yet they’ve remained

unprofitable. Some figures suggest that in 20

years these organisations have needed around

$2.3 billion in bailouts.

According to the World Bank’s 2017 Doing

Business rankings, South Africa comes 74 (out

of 190) for ease of starting a business, 105 for

registering a property, 62 for obtaining credit,

139 for trading across borders, 113 for enforcing

contracts, and 50 when resolving an insolvency.

These rankings, barring the resolution of

insolvency, are worse than for the previous year.

The country has a wealth of natural resources, a

good banking system, a reasonable tax structure

and a business culture that chimes with that of the

UK. Just as noteworthy, is that South Africa has a

time difference of one or two hours (depending

on region) and can be considered a gateway

to the rest of Africa. As a member of the Global

Agreement on Tariffs and Trade and the World

continues on page 42 >

www.cicm.com June 2017 41


continued from page 41

>

Trade Organization, the country has

reformed its trade and tariff regime

and now also has free trade agreements

with the EU and the Southern African

Development Community (which

seeks to ‘achieve development, peace

and security, and economic growth,

to alleviate poverty, and enhance

the standard and quality of life of the

peoples of Southern Africa’).

The UK Government’s Department for

International Trade still considers South

Africa a high-growth market. It reports

that the UK is one of South Africa's

most significant trading partners, with

over £10 billion in two-way trade in

goods and services. At present, the

largest UK exports to South Africa are

vehicles, drinks, pharmaceuticals,

petroleum-based products and nonmetallic

minerals. The UK Government

says the country’s capital markets are

well structured (which makes finance

easier to raise). The sectors considered

most important are finance, retail

and wholesale, government services,

catering and hospitality, manufacturing,

property and business services.

FUTURE CHALLENGES

While the country is well-developed

and promising, it has several challenges

that the Government needs to tackle.

In particular, South Africa has a high

unemployment rate (it peaked at 31

percent in 2003 but was 27 percent in

late 2016), problems with poverty, poor

skills and a capacity shortage, a need

forinfrastructure improvements for

energy, transport and water, and a high

crime rate (most crime statistics are up

on 2016 according to BusinessTech).

It’s also worth noting the

Government’s policy of Broad-Based

Black Economic Empowerment

(B-BBEE) which aims to bring about

the involvement or participation of

previously disadvantaged communities

(PDCs) into the mainstream economy.

The definition of PDCs, according to

the policy, is people of colour, women

of all races, and the disabled. The

policy is only of relevance to corporate

governance and has no effect on those

who merely export to South Africa.

That said, those that intend to set

up a business or acquire an existing

business in South Africa whose annual

revenue is likely to exceed R5 million

(around £300,000 as of February 2017)

and which will carry out business

with government departments,

public entities or enterprises, or with

companies who supply goods and

services to them, must provide their

B-BBEE status. More on this can be read

at southafrica.doingbusinessguide.

co.uk/the-guide/broad-based-blackeconomic-empowerment.

THREE REGIONS

Almost aligned with Pareto’s rule, it’s

important to recognise that 65 percent

of South Africa’s GDP comes from

just three of the country’s regions –

Gauteng, Kwazulu-Natal, and Western

Cape. Starting with the first in the list,

Gauteng is the country’s economic

core that, while only 1.4 percent of

South Africa’s landmass, brings in 34

percent of GDP. The area surrounding

Johannesburg is reckoned to be home

to around 14.6 million people and

economic activities include finance, IT,

property, media, healthcare, transport,

leisure and gold mining.

Kwazulu-Natal adds 17 percent

to the nation’s GDP and has two of

Africa’s largest ports – Durban and

Richards Bay. Durban is the busiest

container port in Africa and has

a stable business base. Richards

Bay is highly industrialised and

is the largest deep water port on

the continent. Manufacturing in

the region offers opportunities in

transport, communications, printing

and publishing, food and beverage

production, non-electrical machinery,

iron and steel, textiles and finance.

Farming is also a considerable activity

here. The petroleum and chemical

products sectors have grown by 50

percent in ten years while transport

equipment has grown 52 percent in the

same period.

To be continued...

42 June 2017 www.cicm.com

The Recognised Standard


EDUCATION

APPRENTICESHIP

MYTH BUSTER

Debbie Tuckwood dispels a few myths about apprenticeships and outlines

how the CICM can help you set up credit management training.

APPRENTICESHIPS are only for

new starters

No. You can apply for apprenticeship

funding to upskill existing teams. Also,

funding arrangements changed in May 2017,

which means that now there is no age limit

to funding and even those with a degree can

access funding for the Level 3 Diploma in

Credit Management if they are registered as

an apprentice.

Credit controllers can learn as much

from accounting or other business

related apprenticeships

No. Credit controllers and collectors are

far better off studying for the new credit

management apprenticeships. Employers

have designed these new apprenticeships

to cover the specific knowledge, skills and

behaviours required for these specialised

roles. If you look at the new Level 2, 3 and

5 apprenticeship standards on the CICM or

Government apprenticeship website, you can

see the content.

You need a local college provider

to access credit controller/collector

apprenticeships

It is great if you have a local college provider

who supports credit controller/collector

apprenticeships. However, if not, FWD

Training, the CICM’s training provider, can

deliver the apprenticeship anywhere in the UK.

FWD provides apprenticeship administration

and coaching and will arrange for your

apprentices to join regular daytime virtual

classes for the qualification run by CICM

expert teachers.

Also, your company could deliver the

apprenticeship if it is registered as an

Apprenticeship Training Provider or has

another preferred training provider. CICM is

happy to advise on what is required for the

new credit management apprenticeships.

My company would need specialist

credit management teachers to deliver

the apprenticeship

Not necessarily. Some companies, such

as E.ON, have expert trainers and so can

provide all the training for their Level 2 credit

controller apprentices. Others, however, run

the apprenticeship themselves because they

are registered as an Apprenticeship Training

Organisation and then arrange for their

credit controller apprentices to join CICM

apprenticeship qualification classes.

My company would need a large

group to set up a credit controller

apprenticeship

No. Even if you have only one apprentice,

you could run the apprenticeship and sign

your apprentice up to one of the CICM open

apprenticeship groups for technical training.

My company cannot reclaim the full

cost of the apprenticeship from their

levy

This is not correct. Provided you have enough

funds in your levy pot, you would be able to

reclaim 100 percent of costs for your credit

management apprenticeship. There is a very

simple calculation to work out the size of your

apprenticeship levy – see the CICM website

for details.

Apprenticeships are free if I work for a

non-levy paying company

No. Your company would have to pay

ten percent towards the cost of the

apprenticeship, unless you have less than

50 employees and your apprentice is aged

16-18 when the Government will cover 100

percent of costs. However, regardless of the

company size, you will gain extra payments if

your apprentice is under 19 requires additional

learning support, or is from a disadvantaged

background. Also English and Maths tuition, if

required, is fully-funded.

I can't include CICM training days in

my apprenticeship training

This is a myth. CICM advisers can work

with you to find the best apprenticeship

training solution for you. Some companies

are combining virtual classes in credit

management with training days and

assignments on telephone collections,

negotiation and influencing and customer

relations and cash collections.

My apprentices would have to follow

the same qualification pathway

No. The Level 3 Advanced Credit Controller/

Debt Collection Apprenticeship expects

apprentices to specialise in credit risk,

advan0ced telephone collections or

enforcement and recovery. Also, CICM

qualifications are flexible which means that

you can choose the best pathway to suit

you and your apprentices. Some Level 3

apprentices may want to follow the standard

CICM pathway if they hope to progress to the

CICM Level 5 Diploma. This would involve

examined courses in credit management,

business environment, business law and

accounting principles. Others may prefer to

combine the credit management examined

unit with training and assignments. Even if

you have only one apprentice who wanted

to complete a subject, such as business

law or accounting, CICM could support with

specialist training if they joined a CICM open

apprenticeship class. Your apprenticeship

provider could liaise with CICM to arrange this

for you.

It will be difficult to recruit a credit

controller apprentice

This should not be the case because your

apprenticeship learning provider will support

you with recruitment. They will promote

the role on the Government's 'recruit an

apprenticeship' website and arrange all the

sign up paperwork and funding arrangements.

Also CICM has 'I love credit' leaflets which you

can use to promote your credit management

roles at selection days or local events. These

are freely available for members. See the

CICM website or contact the CICM for full

advice and guidance (apprenticeships@cicm.

com or 01780 722909).

Debbie Tuckwood BA (Hons) FCIEA Doc Soc Sci is

Head of Education and Professional Development.

The Recognised Standard

www.cicm.com June 2017 43


EDUCATION

TIPPING THE BALANCE

AGAINST

CREDITORS

Robert Addlestone believes the new Pre-Action Protocol (PAP)

for Debt Claims does not make pleasant reading for creditors.

“The new Protocol would

seem to tip the balance

in favour of debtors and

away from creditors. It is

easy to see how creditors

can and will abuse its

well-intentioned terms.

THE Master of the Rolls has released

the new Pre-Action Protocol for Debt

Claims which comes into force on 1

October 2017. The Protocol does not

apply to business-to-business debts unless

the debtor is a sole trader.

Letter of Claim

The Letter of Claim should contain the

following:

• The amount of the debt and whether interest

or other charges are continuing

• Where the debt arises from an oral

agreement, details of who made the

agreement, what was agreed (including as

far as possible what words were used) and

where and when it was agreed

• Where the debt arises from a written

agreement, the date of the agreement, the

parties to it and the fact that a copy of the

written agreement can be requested from the

creditor

• If regular instalments are currently being

offered by the debtor, an explanation of why

the offer is not acceptable.

It must enclose:

• An up-to-date statement of account for the

debt including details of any interest and

administration of charges

• A standard Information Sheet and Reply

Form.

Time Limits

The letter of claim must give 30 days for a

response before court proceedings are started.

The Protocol states: ‘Account should be

taken of the possibility that a reply was posted

towards the end of the 30-day period’. How

that will work in practice is unclear but it may

mean that, in effect, 33 days must be given.

If a debtor indicates they are seeking debt

advice the creditor must allow the debtor ‘a

reasonable period for advice to be obtained’

and should not start court proceedings less

than 30 days from receipt of the completed

Reply Form or 30 days from the creditor

providing any documents requested,

whichever is the later.

In practice this means that if the debtor

states they are seeking debt advice, 60

days (or 63 days) should be given before

proceedings are issued.

If a debtor wishes to seek advice but cannot

do so within 30 days he must provide details

as to why the advice cannot be obtained

within 30 days and the creditor should then

allow ‘reasonable extra time’.

Where the debtor has responded to a

Letter of Claim but agreement has not been

reached then the creditor should give at least

14 days’ notice before issuing any court

proceedings.

Encouragement of ADR

The Protocol encourages Alternative Dispute

Resolution (ADR) and there is a specific

provision setting out that the parties should

undertake a review of ‘their respective

positions’ to see if ‘proceedings can be avoid’.

Failure to Comply

The Protocol sets out that the court will take

into account non-compliance when giving

directions for the management of proceedings,

although it will consider whether all parties

have complied ‘in substance’ with the terms of

the Protocol and is not likely to be concerned

with minor or technical infringements. In

practice this may mean that proceedings are

stayed until the Protocol is complied with.

Conclusion

The new Protocol would seem to tip the

balance in favour of debtors and away from

creditors. It is easy to see how debtors can,

and will, abuse its well-intentioned terms.

Full details of the Protocol and its

implementation will form part of the CICM’s

legal training suite (see opposite page).

Robert Addlestone is Litigation Partner at CW

Harwood & Co Solicitors and a CICM trainer.

44 June 2017 www.cicm.com

The Recognised Standard


LEGAL

TRAINING

Are you up-to-date with

significant changes?

The Ministry of Justice has announced that The Pre-Action Protocol

for Debt Claims has been made by the Master of the Rolls as Head of

Civil Justice. The Protocol comes into force on 1 October 2017.

Join a CICM training day to refresh your legal knowledge

Learn from CICM legal experts – a range of legal recovery programmes available. All

have been updated to incorporate the very significant changes. The CICM Insolvency

programme includes changes to the Insolvency Rules that came into effect in April 2017.

CICM Open training (Legal):

Debt recovery through the courts: 15 June, 7 September and 6 December

Advanced debt recovery through the courts: 6 July, and 11 October

Insolvency & Bankruptcy: 17 July

Handling your own small claims: 4 August and 11 October

CICM members: £390 +vat. Non-members: £310 + VAT

To book your place contact training@cicm.com. 01780 722907

In-company training

If you have a number of people to train we can deliver a tailored training programme at

your offices at a time convenient for you.

For further details contact training@cicm.com

or telephone: 01780 722907

The Recognised Standard

www.cicm.com June 2017 45


ial requirements, Process improvement, Strategic

s and leadership, Legal proceedings and insolvency

EDUCATION

ered in January, June & September.

arning and Development team to register your interest

80 722909, or email creditacademy@cicm.com). The

d units listed lead to the CICM Level 3 Diploma in Credit

nd are essential to progress to the Institute’s Graduate

d the CICM What Level courses 5 Diploma are in Credit available?

Management.

Level 3 Diploma in Credit Management units – Credit

Management (trade, export and consumer), Business Law, Business

Environment and Accounting Principles

ed any special software or

wledge?

Level 5 Diploma in Credit Management units – Strategic planning,

Advanced credit risk management, Compliance with legal, regulatory,

ethical and social requirements, Process improvement, Strategic

communications and leadership, Legal proceedings and insolvency

ed is a PC with internet access, and a telephone

dline.)

Classes are offered in January, June and September – Contact

the Learning and Development team to register your interest

(telephone 01780 722909, or email creditacademy@cicm.com). The

es it actually work?

level 3 examined units listed lead to the CICM Level 3 Diploma in Credit

Management and are essential to progress to the Institute’s Graduate

conference call and sign onto Programme, the CICM Level 5

a website to join the

Diploma in Credit Management.

view the tutor’s materials on screen and hear the

er learners in the classroom.

Do I need any special software or IT

knowledge?

ill it cost me?

No, all you need is a PC with internet access, and a telephone (mobile

or landline.)

395 - £450. This includes landline phone costs, calls from

erseas may incur charges. You will need to procure a

How does it actually work?

he subject (£40-£45). These are available through the

You dial into a conference call and sign onto a website to join the class.

You will view the tutor’s materials on screen and hear the tutor and

other learners in the classroom.

uch What time will will it cost I me?

need to set

The costs are £395 - £450. This includes landline phone costs, calls

from mobiles and overseas may incur charges. You will need to

el 3 examined purchase a units study - text Credit for the Management subject (£40-£45). and These Business are available

prise of through 10 x the 11/2 CICM hour website.

sessions, Accounting

siness Law will be 12 x 2 hour sessions, and the Level

of 6 x 2 How hour sessions much per time unit. will I need to set

aside?

o prepare C lasses for for each Level lesson 3 examined and units complete - Credit Management homework and Business

week. Environment Also there comprise will be of revision 10 x 11/2 hour work sessions, provided. Accounting

You will ’’Due to my busy work life and remote home

Principles and Business Law will be 12 x 2 hour sessions, and the Level

a minimum

5 of five to six hours a week on home study,

units comprise of 6 x 2 hour sessions per unit.

location the virtual learning classes suit

uire significantly You will need more to prepare than for this. each lesson and complete homework


my schedule perfectly. Initially I had some

questions each week. Also there will be revision work provided. You will

Due to my busy work life and remote home

need to spend a minimum of five to six hours a week on home study, misgivings around receiving adequate levels

location the virtual learning classes suit my

it be some boring?

units require significantly more than this.

of support by not being face to face but

schedule

this was perfectly.

soon quashed Initially

as I had

there some

is a misgivings

lot of

are guided through the lesson by your tutor, who will

Won’t it be boring?

around f tools and exercises to help you get the most out of

communication

receiving adequate

with the

levels

tutors

of

via

support

email

by

Not at all! You are guided through the lesson by your tutor, who will

not e. You use will a variety be using of tools PowerPoint, and exercises to group help you discussions,

from

being

day

face

one

to

up

face

to

but

the

this

exams’’.

was soon quashed

get the most out of

as there is a lot of communication with the tutors

es, individual your online work time. and You will multi-choice be using PowerPoint, polling group questions. discussions,

paired exercises, individual work and multi-choice polling questions. via email KATYA from LAW day — SENIOR one up to SALES the exams. LEDGER


CONSULTANT EXPERIAN

Katya Law

are What the are benefits the benefits to to me?

Senior Sales Ledger Consultant

cation: - at Convenient home/work location: at home/work

’’An exciting and convenient way to learn

Experian

- Experienced CICM tutor on-hand

ICM tutor on-hand

in the comfort of your own home, I would

- Opportunity to develop own learning


o develop - Accessible own learning

recommend this to anyone’’.

from almost anywhere - no travel costs to college

m almost - Other anywhere learners to - work No with

travel costs to college

A new exciting and convenient way to

s to work with

learn

ROY in

AVEYARD the comfort

— CREDIT of your

AND

own home, I

Do you have an exemption policy?

would

COLLECTIONS recommend

ADVISERTENET this to anyone.


GROUP

Yes, if you have business related qualifications, you can apply for LIMITED

have an exemption an (fees exemption apply). Please verify this prior policy?

to enrolling.

Roy Aveyard

Credit & Collections Adviser

business related qualifications, you can apply for an

s apply). Please verify this prior to enrolling.

Tenet Group Limited

June 2017 www.cicm.com

46 The Recognised Standard


CICM EDUCATION

CONFERENCE 2017

22 June 10am-4pm

Education, Education, Education! Book now for CICM's

unmissable, annual Education Conference being held in

Birmingham on Thursday 22 June.

Reserve your place at this popular free event to discover

from education specialists and senior credit and collections

managers about 'Inspiring the future: next steps for credit

professionals'.

With a programme packed with forward-thinking and

inspirational speakers, the conference will quickly bring

you up-to-date with the new credit controller/collections

apprenticeships and help progress your professional

development and CICM qualifications.

A focus this year will be on professional identity and

senior managerial roles. Find out about the skills required

for senior roles and the value of the CICM Level 5 Diploma

and MBA degrees. A range of workshop sessions will suit

you and new learners, and give plenty of opportunities to

ask questions and meet like-minded credit professionals.

Meet the first credit controller apprentices and their employers

Find out how to get started and progress with CICM qualifications

Improve your Level 5 assignment writing skills

Discover from others about the skills required for senior managerial roles

We expect this event to be very popular and places are limited so to

avoid disappointment, email educationconference@cicm.com or call

Becki Sharpe our CICM events co-ordinator on +44(0)1780 722902

The Recognised Standard www.cicm.com June 2017

47


HR MATTERS

HR ROUNDUP

Gareth Edwards looks at several recent cases on notice

periods, the minimum wage and dress codes.

WHEN does a notice period take effect?

Newcastle Upon Tyne NHS Foundation

Trust v Haywood offers guidance.

In the case, Ms Haywood worked for

Newcastle Primary Care NHS Trust. Following a transfer

to Newcastle upon Tyne NHS Foundation Trust, Haywood

was informed that she was at risk of redundancy.

Haywood met with two representatives of the Trust on

13 April 2011 to discuss the situation and informed them

that she was on annual leave from 19-27 April 2011.

While away, the decision was made to make her

redundant and Haywood was sent a notice of termination

by post on 20 April 2011. Notice of termination was also

sent by email to her husband's email address, however,

neither the letter nor the email were seen by Haywood

until she returned from holiday.

The notice of termination gave 12 weeks’ notice. The

date the notice was deemed to take effect was significant

because if it was on or before 26 April 2011, her

employment would have terminated just before her 50th

birthday and her pension entitlement would be reduced

significantly.

The Trust argued that termination should have

occurred 12 weeks after the notice was sent or,

alternatively, received.

Haywood disagreed and claimed that the effective

date of termination should be 12 weeks after she actually

read the notice of termination. The High Court found for

Haywood. The Trust appealed to the Court of Appeal

which held that notice of termination was given on the

date Haywood actually personally received the notice.

Accordingly, Haywood received notice on 27 April

2011 when she actually read the letter. This meant that

her redundancy took effect after her 50th birthday and

she was entitled to a more generous pension.

DISQUALIFIED OVER THE NATIONAL

MINIMUM WAGE

A nursery owner from Manchester has been disqualified

for six years from being a director of a limited company

after failing to pay 12 members of staff the national

minimum wage.

Joanne Ward had been the owner and sole director

of Cygnets To Swans Limited. As a result of some routine

checks carried out by HMRC’s national minimum wage

enforcement officers in 2012 and 2013, it was discovered

that the company had failed to pay 12 employees the

national minimum wage since 2010 and the company was

therefore issued with a £5,000 penalty. The maximum

penalty at the time. This sum remained outstanding when

the company went into liquidation on 8 October 2015.

Ward was subsequently disqualified from running

a limited company for a period of six years, with effect

from 24 February 2016.

Robert Clarke, Group Leader at Insolvent

Investigations North, said: “The Insolvency Service

pursues directors who break employment laws. Not

paying staff the national minimum wage is a clear

breach of a director’s duties. Running a limited

company means you have statutory obligations as well

as protections, and this should serve as a warning to

other directors who are tempted to underpay staff.”

DRESS CODES AND THE ECJ

The European Court of Justice (ECJ) has handed down

judgments in two cases concerning headscarves in the

workplace.

In Achbita v G4S Secure Solutions (Belgium), Ms

Achbita, a muslim, worked as a receptionist for G4S

where there was an unwritten rule that prohibited

employees from wearing visible signs of their political,

philosophical or religious beliefs in the workplace.

This was later included within the employee code of

conduct. Achbita decided to wear her headscarf at work

and refused to comply with the rule. She was dismissed

by G4S.

In Bougnaoui v Micropole SA (France), Ms Bougnaoui,

also a muslim, was employed by Micropole SA. She was

informed that she would not be permitted to wear her

headscarf at all due to the customer facing nature of

her role. Despite this, Bougnaoui wore her headscarf

to a customer site visit and the customer subsequently

made a complaint and requested that Bougnaoui not

wear the headscarf in future. She refused to comply with

the customer’s wishes and she too was dismissed.

In Achbita, the ECJ concluded that the internal

rule treated all employees of the company equally.

It could not find any evidence that the internal rule

was applied differently to Achbita compared to other

employees. The ECJ found that G4S’s actions did not

constitute direct discrimination. However, the ECJ

indicated that the dress code rule was capable of

amounting to indirect discrimination. In Bougnaoui, the

ECJ concluded that Micropole’s actions were directly

discriminatory as Micropole acted in response to a

customer's objections.

Gareth Edwards is a partner in the employment team

at Veale Wasbrough Vizards. gedwards@vwv.co.uk.

48 June 2017 www.cicm.com

The Recognised Standard


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The Recognised Standard

brought to you by

www.cicm.com June 2017 49


FORTHCOMING EVENTS

Full list of events can be found on our website: www.cicm.com/events

CICM EVENTS

1 JUNE

CICM SUSSEX AND SURREY BRANCH –

CREDIT MANAGEMENT BREAKFAST SEMINAR

WEYBRIDGE

Come and join us for a credit management breakfast

seminar at Mercedes Benz World. Based at the historic

Brooklands motor racing circuit in Weybridge.

CONTACT : Natascha Whitehead. Natascha.

whitehead@hays.com / T: 0777 078 6433 or email

sussexandsurreybranch@cicm.com

VENUE : MERCEDES BENZ WORLD. BROOKLANDS

DRIVE, WEYBRIDGE, KT13 0SL

4 JUNE

CICM KENT BRANCH – SUMMER SOCIAL,

BRITISH RACING AND SPORTS CAR CLUB

BRANDS HATCH

This year’s event will be at the exciting British Racing &

Sports Car Club (BRSCC) Club Car Championship event at

Brands Hatch

CONTACT : Contact E: kentbranch@cicm.com. Alternatively,

please telephone Simon Paterson on T: +44 (0)7775

195727 or Kevin Artlett on +44 (0)7905 611186.

VENUE : BRANDS HATCH, GROUND FLOOR SUITE

A7, BRABHAM STEWART COMPLEX, BRANDS HATCH

CIRCUIT DA3 8NG

6 JUNE

CICM THAMES VALLEY BRANCH –

BREWERY TOUR

MARLOW

Brewery talk by the owners on a social, historical & political

view of brewing and our brewing methods

Cost: £13.00 for entrance + 5 drink tokens, £6.50 for

entrance + 2 drink tokens or soft drink option for drivers

(pay on the door).

CONTACT : To book your place please email

thamesvalleybranch@cicm.com

VENUE : CHILTERN HILLS AONB, BENCOMBE FARM,

MARLOW BOTTOM, MARLOW, SL7 3LT

7 JUNE

FELLOWS’ LUNCH 2017

LONDON

This year we are inviting you to a truly unique experience at

the most exclusive private members club in London. Join

us for a spot of luxury with a magical mix of 18th century

splendour and 21st century avant-garde – Home House is

the perfect venue for this year’s Fellows’ Lunch.

Arrival drinks served at 11:30.

Tickets are £128.00+VAT per person

CONTACT : To book your seat, please email:

fellowslunch@cicm.com

VENUE : HOME HOUSE, 20 PORTMAN SQUARE,

MARYLEBONE, LONDON, W1H 6LW

7 JUNE

CICM WESSEX BRANCH – LISTENING TO

REPLY AND NOT LISTENING TO UNDERSTAND

SOUTHAMPTON

Presentation by: Hayley Monks of Think Inspire & Create.

CONTACT : To reserve your place, please email

wessexbranch@cicm.com

VENUE : PWC SAVANNAH HOUSE, 3 OCEAN WAY,

SOUTHAMPTON, SO14 3TJ

8 JUNE

CICM WEST MIDLANDS BRANCH –

SUMMER SOCIAL

BIRMINGHAM

SUMMER SOCIAL BBQ

CONTACT : To reserve your place, please contact

either Rachel Summerfield or Kim Delaney at E:

westmidlandsbranch@cicm.com

VENUE : THE STUDIO, 7 CANNON STREET,

BIRMINGHAM, B2 5EP

15 JUNE

CICM SUSSEX AND SURREY BRANCH –

NETWORKING BREAKFAST (2 CPD HOURS)

CRAWLEY

Come and take part in a networking workshop over a

coffee and bacon roll. You don’t need to be a Picasso to

engage with this session.

CONTACT : Please contact the branch direct at E:

sussexandsurreybranch@cicm.com.

VENUE : THALES UK, MANOR ROYAL, CRAWLEY,

RH10 9HA

20 JUNE

CICM SHEFFIELD AND DISTRICT BRANCH

– A NIGHT AT THE MUSEUM WITH SOUTH

YORKSHIRE POLICE

SHEFFIELD

Detective Speare, from the Financial Crime Investigation

Unit of Specialist Crime Services at South Yorkshire Police

will talk to us about current fraud and cyber-crime trends

CONTACT : Paula at: sheffieldanddistrictbranch@cicm.com

VENUE : NATIONAL EMERGENCY SERVICES MUSEUM

OLD POLICE/FIRE STATION, WEST BAR, SHEFFIELD, S3 8PT

22 JUNE

CICM EDUCATION CONFERENCE 2017

BIRMINGHAM

Book now for CICM’s unmissable, annual CICM Education

Conference.

CONTACT : We expect this event to be very popular and

places are limited, so to avoid disappointment, please

email: educationconference@cicm.com or call Becki

Sharpe, our CICM events co-ordinator, on +44 (0)1780

722902.

VENUE : BIRMINGHAM CHAMBER OF COMMERCE

75 HARBORNE ROAD, BIRMINGHAM, B15 3DH

7 JULY

CICM SOUTH WALES BRANCH

CARDIFF

The South Wales branch are delighted to be having a joint

event with the Cardiff Financial Professionals

CONTACT : Contact: Diana Keeling FCICM, Events

Coordinator at E: southwalesbranch@cicm.com or T: +44

(0)7921 492348.

VENUE : FUEL ROCK BAR, 5 WOMANBY ST, CARDIFF,

CF10 1BR

11 JULY

CICM EAST OF ENGLAND BRANCH – (5 CPD)

LONDON

‘Improving Credit Management in the Workplace’

Conference. More details on our online events calendar.

CONTACT : Please email eastofenglandbranch@cicm.com

VENUE : GOODMAN MASSON, 120 ALDERSGATE STREET,

LONDON, EC1A 4JQ

TRAINING DAYS

15 JUNE

ADVANCED CREDIT RISK

VENUE : LONDON

15 JUNE

DEBT RECOVERY THROUGH THE COURTS

VENUE : LONDON

21 JUNE

COLLECTING WITH CONFIDENCE

VENUE : LONDON

OTHER EVENTS

2 JUNE

POLISH INSTITUTE OF CREDIT MANAGEMENT

POLAND

The Polish Institute of Credit Management invites you to

the first edition of the conference Credit Risk, an event

dedicated to receivables management and trade credit risk

in Business to Business in Poland.

30 percent discount for CICM members.

CONTACT : Visit website: http://creditrisk.pl/language/en/

VENUE : PARK INN BY RADISSON KRAKOW HOTEL

MONTE CASSINO 2, 30-337 KRAKOW, POLAND

6 JUNE

FORUMS INTERNATIONAL – SENIOR

MANAGEMENT CREDIT FORUM (SMF)

STRATFORD UPON AVON

Senior Management Credit Forum (SMF)

CONTACT : For more information email:

smf@forumsinternational.co.uk

VENUE : STRATFORD MANOR, STRATFORD UPON AVON

13 JUNE

FORUMS INTERNATIONAL –

PHARMACEUTICALS & MEDICAL DEVICES

CREDIT FORUM (PMF)

STRATFORD UPON AVON

CONTACT : For more information email :

pmf@forumsinternational.co.uk

VENUE : STRATFORD MANOR, STRATFORD UPON AVON

14 JUNE

ICTF WEBCAST: INTERNATIONAL

COMMERCIAL ARBITRATION – WHAT GLOBAL

TRADE CREDITORS SHOULD KNOW!

ONLINE

Learn how to take advantage of international commercial

arbitration to protect your rights and maximize recoveries

when selling globally.

CONTACT : VISIT WEBSITE FOR MORE DETAILS

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

aspx?id=963113&group=

VENUE : ONLINE

50 June 2017 www.cicm.com

The Recognised Standard


THE B2B DEBT RECOVERY SPECIALISTS

The Debt Recovery

Pre-Action Protocol goes

live on 1st October 2017

Request your free toolkit

Planning ahead is essential and many creditors are still

unaware that:

• The protocol applies to businesses claiming debts from

individuals (this includes sole traders and potentially other

classes of debtor that creditors may not have considered);

Request your free

Pre-Action

Protocol Toolkit

This toolkit contains various checklists,

flowcharts, tips, advice and a timeline

for you to consider ahead of the

1st of October deadline.

www.fbdebt.co.uk/PAP

• The steps creditors need to take before issuing

a claim against certain debtors will change;

Creditors may need to adopt different processes to deal

with different debts within their business; and

• More information will have to be provided in letters before

action.

To request your free toolkit from your complete commercial

debt recovery solicitors, visit www.fbdebt.co.uk/PAP

Contact us for an exploratory discussion

to benchmark our results against your

in-house team or a current provider.

0800 044 8120

The Recognised Standard

CCR

credit

excellence

awards2015

in association with

WINNER

www.cicm.com June 2017 51


MEET THE

THEY'RE WAITING

Hays Credit Management is the award winning national specialist

division of Hays Recruitment, dedicated exclusively to the recruitment

of credit management professionals in the public and private

sectors. Whether you are looking to further your career in credit

management, strengthen your existing team, or would simply like an

overview of the market, it pays to speak to the market leaders.

www.hays.co.uk

HighRadius is the leading provider of Integrated

Receivables solutions for automating credit, collections,

cash allocation, deductions and eBilling operations.

The solutions are delivered as a software-as-a-service

(SaaS) or as SAP-certified Accelerators for SAP

Finance Receivables Management. With a track record

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

and increasing operational efficiency, HighRadius

solutions help teams achieve payback within a year.

www.highradius.com

We specialise in company information with

extensive company coverage, financial risk metrics

and comprehensive corporate structures. Our

Credit Catalyst combines our international,

standardised financial data with a bespoke credit

platform, so you can work more efficiently, make

better quality decisions and spot risk quickly.

• Assess financial risk and corporate stability

• Get insight on the financial health of individual

companies and across your portfolio

• Manage your data more efficiently

www.bvdinfo.com

Sanders Consulting is a niche consulting firm

specialising in improving Credit Management

Leadership & Performance for our clients.

We provide people and process focussed

pragmatic solutions, consultancy, strategy days and

performance improvement workshops and we

are proud to manage and develop the CICMQ

Programme and the Best Practice Network on

behalf of the CICM. For more information please

contact: enquiries @chrissandersconsulting.com.

www.chrissandersconsulting.com

Key IVR provide a suite of products to

assist companies across Europe with credit

management. The service gives the end-user

the means to make a payment when and

how they choose. Key IVR also provides a

state-of-the-art outbound platform delivering

automated messages by voice and SMS. In a

credit management environment, these services

are used to cost-effectively contact debtors and

connect them back into a contact centre or

automated payment line.

www.keyivr.co.uk

CreditForce by Innovation Software is the leading

Collections and Working Capital Management

Systems used globally in over 26 countries and by

over 20 percent of the Top 100 Global Law Firms.

Our systems improve cash flow, reduce DSO,

automate cash allocation, control risk, automatically

generate intelligent workflows and tasks, speed up

query resolution and manage the entire end-toend

collections cycle. Fully integrated with over 40

leading ERP and Accounting systems and delivered

locally or through Microsoft-Azure’s secure cloud

solutions.

www.creditforceglobal.com

American Express is a globally recognised provider

of payment solutions to the business sector

offering flexible collection capabilities to meet

company cashflow objectives across a range of

industries. Whether you are looking to accelerate

cashflow, create a competitive advantage to drive

business or looking to support your customers

in their growth American Express can tailor a

solution to support your needs.

www.americanexpress.com

Credica are a UK based developer of specialist

Credit and Dispute Management software. We

have been successfully implementing our software

for over 15 years and have delivered significant

ROI for our diverse portfolio of customers. We

provide a highly configurable system which enables

our clients to gain complete control over their

debtors and to easily communicate disputes with

anyone in their organisation.

www.credica.co.uk

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

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

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

52 June 2017 www.cicm.com

The Recognised Standard


PARTNERS

TO TALK TO YOU...

Safe’s Credit Control module manages the entire

credit lifecycle, from credit checking through to

cash collection and beyond, providing detailed

analysis of performance. Safe’s single, intuitive and

easy-to-use application seamlessly brings together

the necessary data and tools you require to

achieve your objective of creating a profit centre

culture within your credit control function.

www.safe-financials.co.uk

Dun & Bradstreet grows the most valuable

relationships in business. Whether your customer

portfolio spans a city, a country or the globe, Dun

& Bradstreet delivers the data, analytics and insight

to grow your most profitable relationships and

obtain a global, unified view of your customer

relationships across credit and collections.

www.dnb.co.uk

Rimilia provides award winning Cash Application

& Cash Allocation software products that deliver

industry leading tangible benefits like no other.

Having products that really do what they say

is paramount – add to that a responsive and

friendly team that are focused on new and

ongoing benefit realisation and you have the

foundations for successful long term business

relationships.

www.rimilia.com

Data Interconnect provides integrated e-billing

and collection solutions via its document delivery

web portal, WebSend. By providing improved

Customer Experience and Customer Satisfaction,

with enhanced levels of communication between

both parties, we can substantially speed up your

collection processes.

www.datainterconnect.com

Graydon UK provides its clients with Credit

Risk Management and Intelligence information

on over 100 million entities across more than

190 countries. It provides economic, financial

and commercial insights that help its customers

make better decisions. Leading credit insurance

organisations, Atradius, Coface and Euler Hermes,

own Graydon. It offers its seamless service

through a worldwide network of offices and

partners.

www.graydon.co.uk

Think Inspire and Create Ltd - No Ordinary

Consultancy. The newly-launched consultancy

offers an inspired service that supports businesses

and encourages their people to embrace change.

We are committed to sharing our passion and

experience in credit management, Performance

management and Process improvement.

Our vision is to make sure that the changes you

create are sustainable and enduring.

www.thinkinspireandcreate.com

Tinubu Square is a trusted source of trade

credit intelligence for credit insurers and for

corporate customers. The company’s B2B

Credit Risk Intelligence solutions include the

Tinubu Risk Management Center, a cloud-based

SaaS platform; the Tinubu Credit Intelligence

service and the Tinubu Risk Analyst advisory

service. Over 250 companies rely on Tinubu

Square to protect their greatest assets: customer

receivables.

www.tinubu.com

DWF is one of the UK’s largest legal businesses

with an award-winning reputation for client service

excellence and effective operational management.

Named by the Financial Times as one of Europe’s

most innovative law firms and independently

ranked first of all top 20 law firms for quality of

legal advice and joint first of all national law firms

for service delivery and responsiveness.

www.dwf.law/recover

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

Collection & Trade Dispute Resolution Services.

Headquartered in Switzerland, we specialise in

resolving cross-border cases swiftly and amicably.

Our mission is to ensure that all creditors receive

full payment for products or services sold out of

the UK without expensive and lengthy litigation.

Having recovered payments from 112 countries,

we rank as first choice among major international

exporters, export credit insurers, governmental

organisations, and other B2B customers in all

industries.

www.mah-international.com

The Recognised Standard

The Recognised Standard

www.cicm.com June 2017 53


NEW CICM MEMBERS

THE INSTITUTE WELCOMES NEW MEMBERS

WHO HAVE RECENTLY JOINED

MEMBER

NAME

COMPANY

ASSOCIATE

NAME

COMPANY

Aaron Caddis

Frederik Reek

Lloyd Gilmore

Richard Howells

Capgemini UK plc

Nederlands Loodswezen BV

Benedict Mackenzie

Brook Street (UK) Ltd

Diane Mather

Kelly Walker

Xerxes Stallworthy

Amari Metals Ltd

United Utilities

Kier Group Ltd

AFFILIATE

NAME COMPANY NAME COMPANY

Joseph Agbenyefia

Jade Anderson

Veronika Baikatsova

Dawn Beeby

Stacey Bowie

Aiden Brock

Rachel Buckle

Faye Byrne

Laura Caccetta

Elizabeth Cahill

Greg Clark

Chelsea Collins

Brian Connolly

Georgina Crompton

Philip Dabbes

Katie Dorman

Emma Doward

Jamie England

Nicolle Every

Paige Ford

Natalie Foster

Lauren Foye

Iain Freeman

Stephanie Gale

Tina Glen

Ian Glover

Liam Goy

Joshua Haines

Ricardo Harewood

Alison Harlick

Matthew Harrod

Kirsty Haswell

Ryan Heapy

Christiane Hempen

Andrew Hoszowskyj

Michael Hurst

Daniela Ionica

Graham Jennings

Karen Jones

Rachel Jones

Lauren Jones

Sarah Joyce

Monali Kale

Dishreet Kaur

Fiona Kelly

Daniel Kemp

Richard Kernick

Suzana Lugonja

Cinzia Luppi

John Mallett

Puma Energy Ghana

Informa UK Ltd

Ramirent Shared Services AS

Processing.com

Interserve Construction Limited

Arbutnot Latham

HSBC

npower Ltd

Healthcare Locums Ltd

Lexismexis

Lorien Resourcing Ltd

Computer Resources Group

BT Plc

Amicus

Metro Rod Ltd

HKA Global Ltd

npower Ltd

Spire Healthcare

Matthew Clark Wholesale Ltd

Queen Mary University of London

SIG Trading Ltd

Corporate Learning Concept Ltd

Lowell Financial Ltd

npower Ltd

Addiko Bank AG

24hr Bailiffs

BT Plc

OfficeTeam Ltd

Amari Metals Ltd

Processing.com

Smarter Buy Store

BT Plc

Citrix System Ltd

Bristow & Sutor

BT Plc

ICICI Bank Uk

H & T Group

ID Medical

PHMG

PH Media Group

Matthew Clark Wholesale Ltd

xoserve Ltd

Rolls Royce

Lyreco UK Ltd

Santander Consumer (UK) plc

EVO Business Supplies Limited

Arbutnot Latham

Laisha Mansfield

Tom Mcconalogue

Victoria McCourt

Nicole Melia

Leanne Middleton

Melanie Middleton

Eve Davis

Gill Morland

Nancy Moye

James Thomasson

Micah Hall

Mauro Pizzol

Paul Stretton

Paul McGinty

Prosper Uzande

Morgan Davis

Maria Wilson

Ophelia Cooper

Sian Phillips

Amber Mughal

Faraz Mushtaq

Susan Nunnington

Joshua Olden

Collins Osei

Dee Paterson

Thushanthi Perera

Rebecca Peters

Goryslaw Poleszczek

Liette Pym

Shaista Rasool Gatta

Steve Riley

Richard Rutter

Alexander Sadler

Brian Seal

Denise Sherwood

Alasdair Skeoch

Stephen Smith

Simon Squires

Alex Stephens

Victoria Stevens

Jessica Stretton

Sonia Swaithes

Gerard Thornton

Luke Walker

Melvin Warren

Amanda Wheeler

Alexandra Williams

Dean Williams

Michelle Young

Matthew Clark Wholesale Ltd

Allport Cargo Services

Smarter Buy Store

BT Plc

Amari Metals Ltd

Amari Metals Ltd

DPD Group

Lorien Resourcing Ltd

Informa UK Ltd

Amari Metals Ltd

Glide Ltd

Extra Energy

Andrew Wilson & Co

Oakwood

BT Plc

University of West London

Capital Law LLP

Zenith

Extra Energy

xoserve Ltd

LSE Retail Group

Tsys- virgin money

DP Performance Solutions Ltd

BT Plc

Lincoln Electric (UK) Ltd

Heating Plumbing Supplies Ltd

Hertz Rent-A-Car

Conexus Recovery & Field Service Ltd

Chandlers Limited

UK Fuels

Atom Bank

Brighthouse

Conexus Recovery & Field Service Ltd

XL Catlin

ENI Trading and Shipping

Amari Metals Ltd

npower Ltd

SPX Europe Shared Services Ltd

Lorien Resourcing Ltd

Discreet Investigations

Leathams Ltd

npower Ltd

Crowe Horwath

Ove Arup & Partners (International) Ltd

54 June 2017 www.cicm.com

The Recognised Standard


BRANCH NEWS

60SECONDS

WITH

THAMES VALLEY BRANCH

AGM AND APPRENTICESHIP BRIEFING

CLOSE to 30 members attended Thames

Valley branch’s AGM at Sonning Golf

Club. The formal business of the AGM

saw the branch report on another active

year with a slight increase in the number

of events organised from 2015. The most

significant achievement for the branch

was its continued and increasing activity

around promoting credit as a career with

attendance at six career fairs. Goals were

set for 2017 with the expectation that this

would be the branch’s busiest year on

record in terms of events organised, career

fairs attended and other efforts to increase

visibility of the branch and credit as a

profession.

Debbie Tuckwood then talked us through

a presentation entitled Apprenticeships –

the tipping point for Credit Management.

After explaining some of the benefits that

apprenticeships offer, and the need for

qualifications within our industry, Debbie

shared with us the names of the companies

already involved, how the CICM can help

companies wishing to start the scheme, and

advised that the Government website on

apprenticeships now had guidance relating

to credit management apprenticeships.

Useful information on how the new May

2017 Apprenticeship Levy will work plus a

summary of its key features then followed –

a clear message came out that companies

liable to pay the levy should ‘use it or lose

it’. Debbie ended with suggesting some

actions people could now take around

considering apprenticeships in their

Dr Debbie Tuckwood

companies and provided links for further

information on the subject.

Bryony Pettifor concluded the

presentation session by giving us an

insight into her team’s experience around

qualifications and apprenticeships. Bryony

also gave a comprehensive update to

the audience on the efforts of the CICM

Advisory Council Working Party on Careers

and ended by reminding everyone that as

credit professionals we are entitled to sign

passport photographs.

Thanks were then given to all involved,

with some taking the opportunity to network

while having another tea or coffee.

Author: Gary Baker, Branch Chair

FULL NAME

Dean Cottle

CURRENT JOB TITLE:

Credit Manager

CURRENT COMPANY NAME:

Hays Specialist Recruitment Ltd

NUMBER OF YEARS IN CREDIT

MANAGEMENT: 15

NUMBER OF YEARS IN CURRENT ROLE:

Three

WHAT IS THE BEST THING ABOUT

WHERE YOU WORK?

I like the fact that I work for world-wide

and market leader in recruitment, that is

always looking to be the best in class.

WHAT MOTIVATES YOU?

The success of my teams and the

development of individuals within them is

what motivates me each day.

WHAT SKILL DO YOU THINK HAS

HELPED YOU MOST IN YOUR CREDIT

CAREER SO FAR?

Willingness to learn new skills and

determination to succeed.

NAME THREE PEOPLE YOU WOULD

INVITE TO A DINNER PARTY AND WHY?

John Terry, Frank Lampard and Gordon

Ramsey – as an avid Chelsea fan it would

be amazing to have dinner with two

legends. We’d also need good food which

is where Gordon would come in!

WHAT IS YOUR FAVOURITE PASTIME/

RELAXATION ACTIVITY?

Watching football either Chelsea or my

son play for his club team.

WHAT IS THE BEST/WORST QUALITY IN

A LEADER?

The best has to be to lead by example

and not expecting your team to do jobs

you wouldn’t. The worst would be, being

out of touch with your team or losing their

support and trust.

WHAT CAN'T YOU LIVE WITHOUT?

Family and football.

WHAT’S BEEN YOUR MOST REWARDING

MOMENT IN YOUR CREDIT CAREER?

My current team, they are truly supportive

and are great at what they do.

WHAT HAS SURPRISED YOU THE MOST

ABOUT WORKING IN CREDIT?

The variety of tasks and issues that can

arise on a daily basis, no one day is the

same.

WHERE DO YOU SEE YOUR CAREER IN

FIVE YEARS’ TIME?

Hopefully heading up the credit control

team here at Hays

The Recognised Standard

www.cicm.com June 2017 55


TAKE CONTROL

OF YOUR CREDIT

CAREER

SALES LEDGER CLERK

MAINTAIN HIGH VOLUME INVOICES

Richmond, up to £30,000

A rare opportunity has arisen at an established

construction company for an experienced sales

ledger clerk. With a strong emphasis on administration

and invoice management, the role will focus upon

maintaining the sales ledger and providing exceptional

customer service when dealing with customers

over the phone. You will be responsible for cash and

receipt posting, cash allocation and administration

for a high volume of accounts. While the role is not

collections or target focussed, it requires an independent

and self-motivated individual who works well under

pressure. This is a fantastic opportunity providing

long-term stability. Ref: 2988941

Contact Chelya Katende on 020 8247 4042

or email chelya.katende@hays.com

CREDIT CONTROLLER/

ACCOUNTS ASSISTANT

IMPROVE DEBT LEVELS

London, £25,500-£28,000

A prestigious charitable organisation that provides homes

for thousands of people across the UK is now seeking a

driven credit controller/accounts assistant. This role will

focus on providing a support service to the organisation’s

management teams for the financial aspects of residential

fees. You will provide a particular focus on the credit

control aspects of residential fees to improve debt levels.

You will also be responsible for the accounts payable

function of the finance team whilst processing invoices

and inputting cashbook transactions. This is an excellent

opportunity to split your working experience between

both credit control and accounts payable. Ref: 3000913

Contact Steven O’Connell on 020 7259 8745

or email steven.oconnell@hays.com

HOUSING INCOME OFFICER/

CREDIT CONTROLLER

PROVIDE EXCEPTIONAL SERVICE

London, up to £30,000

One of the leading housing associations in London,

managing over 25,000 affordable rented homes and

housing approximately 40,000 people is now seeking

an enthusiastic housing income officer/credit controller.

Within this role, you will provide advice on affordable

payment options, make regular contact with clients to

secure payments and advise and support customers

to successfully manage their rent accounts. This role

requires someone who is able to chase outstanding rent

payments with sensitivity but in a robust manner. You

will enjoy working in a driven team where collaboration

is very important as you will be working with other

departments in the organisation. Ref: 3024579

Contact Steven O’Connell on 020 7259 8745

or email steven.oconnell@hays.com

CREDIT CONTROLLER

MANAGE IMPORTANT CLIENT

RELATIONSHIPS

Nottingham, up to £25,000

An exciting opportunity has arisen in a leading global sales

and services provider for a motivated credit controller. You

will be responsible for protecting the company’s investment

in its debtors by exercising effective credit control over

all active accounts. You will aim to collect outstanding

accounts in a manner that produces optimum cash flow

and minimises bad debts whilst ensuring continuity

of the business. Providing a real focus on relationship

development is essential. Maintenance of its established

business is imperative so a strong track record of meeting

customer expectations is highly desirable alongside a

proven record of effective credit control. Ref: 3010903

Contact James Morris on 0115 947 7500

or email james.morris@hays.com

hays.co.uk/creditcontrol

56 June 2017 www.cicm.com

The Recognised Standard


COLLECTIONS ADVISOR

PROGRESS YOUR CAREER

London, £18,000-£22,000 + benefits

A great opportunity for an ambitious collections advisor

has arisen to join a fast growing leisure business.

Your duties will include making and receiving a high

volume of calls, taking payments over the phone, cash

posting/allocation, creating various reports, resolving

queries, and working to targets. You will be working for

a company where customer service is paramount so

this must be a passion for you too. If you are someone

who likes to get involved in streamlining processes and

procedures and implementation of the same, this will be

very well received. You will need strong Excel skills and

previous experience in B2C collections. Ref: 3017943

Contact Julia Foster on 020 3465 0020

or email julia.foster2@hays.com

DEBT RECOVERY ASSISTANT

BUILD STRONG RELATIONSHIPS

Kilmarnock, £18,000

Working exclusively with Hays, this company is recruiting

for a professional debt recovery assistant. You will join

a well-established collections department and take

ownership of your own portfolio of clients. As a debt

recovery assistant, you will chase outstanding debt,

process payments, handle queries as well as all associated

responsibilities that come with managing your own

ledger. The portfolio base is diverse and high profile,

as such strong communication skills are essential.

The organisation is part of a larger international group so

there is scope for progression and personal development.

This is a fantastic opportunity for an ambitious and

professional debt recovery candidate. Ref: 3006975

Contact Linda Brownlee on 0141 212 3666

or email linda.brownlee@hays.com

CREDIT CONTROLLER

JOIN A LEADING COMPANY

Wrexham, up to £21,000

An award-winning, innovative organisation requires an

experienced credit controller to join its growing team.

You will work on the credit control team and report

directly into the Financial Controller. In this role, you will

be responsible for chasing payments in a B2B department,

cash allocation, raising credit notes, dealing with queries

and ad hoc credit control duties. You will have previous

experience in credit control and systems, an excellent

telephone manner and work well within a team. Due to

the vast client base you will need to be able to adapt and

communicate to all levels. Ref: 3001994

Contact Samantha Ballentyne on 01244 350 125

or email samantha.ballentyne@hays.com

CREDIT CONTROLLER

SUCCESS THROUGH EXPERTISE

Croydon, £12-£12.50/hour

A successful health and social care provider is looking for

a tenacious and determined credit controller to join its

team on a temporary basis. You will be responsible for

ensuring that all payments owed are collected promptly

and in accordance with the company’s internal policies

and procedures. You will have excellent negotiating

skills, be organised and focussed, and have the ability

to work as part of a team as well as individually. You will

have previous experience as a credit controller, in using

complex accounting systems, and are expected to adopt

a professional and caring attitude. Ref: 3019359

Contact Usman Khalid on 020 8686 4686

or email usman.khalid@hays.com

This is just a small selection of the many

opportunities we have available for credit

professionals. To find out more email

hayscicm@hays.com or visit us online.

The Recognised Standard

www.cicm.com June 2017 57


BE ONE CLICK AWAY

FROM OUR WEBSITE

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

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

Step 1 Step 2 Step 3 Step 4

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

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

Step 1 Step 2 Step 3 Step 4

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

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

THE RECOGNISED STANDARD IN CREDIT MANAGEMENT

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

58 June 2017 www.cicm.com

The Recognised Standard


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

COLLECTIONS

Controlaccount PLC

Compass House, Waterside

Hanbury Road, Bromsgrove

B60 4FD

T: 01527 549522 (Sales dept)

E: sales@controlaccount.com

W:www.controlaccount.com

Controlaccount has over 30 years of Credit Management and

Debt Recovery experience, helping National and International

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

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

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

utilising the late payment act to fund collection procedures. Our

trained collectors take into account your need to recover debts,

whilst maintaining your reputation and preserving customer relationships.

If we can’t recover your outstanding debts through our

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

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

credit reporting and corporate monitoring services we are ready

to help you every step of the way.

Blaser Mills LLP

Rapid House

40 Oxford Road, High Wycombe,

Buckinghamshire. HP11 2EE

T: 01494 478660/478661

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

gpb@blasermills.co.uk

W: www.blasermills.co.uk

Established in 1888, leading multi-disciplinary law firm Blaser

Mills specialises in services for businesses and individuals.

The Firm has particular expertise in Dispute Resolution and

Debt Recovery working with experienced credit managers and

finance directors providing solutions to both contested and

uncontested claims.

Blaser Mills provides an experienced team including CICM

qualified legal representatives and the Firm is cited in the

Legal 500 law directory based on quality of work and strong

client feedback.

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

Amersham, Rickmansworth, Staines-on-Thames.

Think Inspire and Create Ltd

T: 0844 414 6056

E: info@thinkinspireandcreate.com

W: www.thinkinspireandcreate.com

Think Inspire and Create Ltd - No Ordinary Consultancy

The newly-launched consultancy offers an inspired service that

supports businesses and encourages their people to embrace

change. If you want to drive forward sustainable change in your

business, Think, Inspire and Create Ltd can optimise the way you

deliver your strategy.

Using a unique Think, Create and Inspire ethos the team works with

businesses, embedding cross-skilled consultants within companies,

to facilitate creative thinking, set goals and find enduring solutions

to challenges.

Think, Inspire and Create Ltd is committed to sharing its passion and

experience in the following areas:

Credit management • Performance management • Operational

design & Management • People Engagement • Process Change

Management • System design and deployment • Organisation

design.

Our vision is to make sure that the changes you create are sustainable

and enduring. Find out more www.thinkinspireandcreate.com

COURT ENFORCEMENT SERVICES

Premium Collections Limited

Office 3, Caidan House Business Centre, Canal Road,

Timperley, Altrincham, Cheshire, WA14 1TD

T: 0161 962 4695.

F: 0333 121 3843

E: enquiries@premiumcollections.co.uk

W: www.premiumcollections.co.uk

Premium Collections Limited has the credit management solution

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

can tailor a package of products and services to meet your

requirements. Staffed by dedicated professionals with over 60

years combined experience of handling virtually every type of

debt issue, the company was formed in December 2002 and

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

particular areas of expertise are the motor finance, insurance

and international debt collection sectors. Services include B2B

collections, B2C collections, international collections, absconder

tracing, asset repossessions, status reporting and litigation

support.

COLLECTIONS LEGAL

STRIPES SOLICITORS LIMITED

St George’s House, 56 Peter Street, Manchester, M2 3NQ

W: www.stripes-solicitors.co.uk

T: 0161 832 5000

95percent success rate in disputed

litigation cases over several decades

Stripes technical excellence, tenacity and commercial insight has

led to this 95 percent success rate over several decades. We have

been particularly recommended as a leading law firm by the Legal

500 in the litigious field for representing clients with significant and

complex issues.

Our specialist commercial debt recovery and insolvency team work

with businesses ranging from SMEs to larger PLCs recovering

business debts on a no cost or fixed fee basis and often

recovering debts within days. We aim to understand your business

and tailor our services to suit your requirements. Our online service

provides you with 24/7 access to manage your account, to upload

new debtor cases and to generate new legal instructions.

CONSULTANCY

Court Enforcement Services

Wayne Whitford – Director

M: +44 (0)7834 748 183

T : +44 (0)1992 663 399

E : wayne@courtneforcementservices.co.uk

W: www.courtenforcementservices.co.uk

High Court Enforcement that will Empower You!

We help law firms and in-house debt recovery and legal teams to

enforce CCJs by transferring them up to the High Court. Setting us

apart in the industry, our unique and Award Winning Field Agent

App helps to provide information in real time and transparency,

empowering our clients when they work with us.

• Free Transfer up process of CCJ’s to High Court

• Exceptional Recovery Rates

• Individual Client Attention and Tailored Solutions

• Real Time Client Access to Cases

CREDIT INFORMATION

Lovetts Solicitors

Lovetts, Bramley House, The Guildway, Old Portsmouth

Road, Guildford, Surrey GU3 1LR

T: +44(0)1483 457500 E: info@lovetts.co.uk

W: www.lovetts.co.uk

Lovetts has been recovering debts for 30 years! When you

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

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

business debts and any resulting commercial litigation.

We provide:

• Letters Before Action, prompting positive outcomes in more than

80 percent of cases • Overseas Pre-litigation collections with

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

management system ‘CaseManager’

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

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

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

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

successful results...”

The Recognised Standard

Sanders Consulting Associates Ltd

T: +44(0)1525 720226

E: enquiries@chrissandersconsulting.com

W: www.chrissandersconsulting.com

Sanders Consulting is an independent niche consulting firm

specialising in leadership and performance improvement in all

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

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

in operational credit management, billing, change and business

process improvement. A sought after speaker with cross industry

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

markets, his innovative and enthusiastic approach

delivers pragmatic people and process lead solutions and significant

working capital improvements to clients. Sanders Consulting are

proud to manage CICMQ on behalf of and under the supervision

of the CICM.

CoCredo Limited

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790 600

E: helpdesk@cocredo.com

W: www.cocredo.co.uk

We provide live online company credit reports and related business

information within the UK and overseas. We have direct feeds from

Dun & Bradstreet, Companies House and other premium providers.

We provide business information on over 256 million companies

across 221 countries. Our information is updated over 500,000

times per day and we have some excellent tracking mechanisms

which provide proactive daily monitoring of changes in the global

information on record. We can offer a wealth of additional services

including XML Integration, D.N.A portfolio management, CoData

marketing information, Companies House documents, Consumer

and Director Searches. We pride ourselves in delivering award

winning customer service, offering you unrivalled support and

analysis to protect your business.

www.cicm.com June 2017 59


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

Company Watch

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

T: +44 (0)20 7043 3300

E: info@companywatch.net

W: www.companywatch.net

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

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

Company Watch provides a credit management system that’s

predicted around 90 percent of company failures. Not only

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

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

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

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

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

glance, Company Watch is an invaluable resource in the credit

management process.

CREDIT INFORMATION

Graydon UK

66 College Road, 2nd Floor,

Hygeia Building, Harrow,

Middlesex, HA1 1BE

T: +44 (0)208 515 1400

E: customerservices@graydon.co.uk

W: www.graydon.co.uk

Graydon UK is a specialist in Credit Risk Management and

Intelligence, providing access to business information on over

100 million entities across more than 190 countries. Its mission

is to convert vast amounts of data from diverse data sources into

invaluable information. Based on this, it generates economic,

financial and commercial insights that help its customers make

better business decisions and ultimately gain competitive advantage.

Graydon is owned by Atradius, Coface and Euler Hermes, Europe's

leading credit insurance organisations. It offers a comprehensive

network of offices and partners worldwide to ensure a seamless

service.

EFCIS Limited t/as ICBA UK

Specialist Trade Credit Insurance Broker

The Office, Mill House Farm, Mill Street, Hastingwood,

Essex, CM17 9JF

T: 01279 437662

E: amoylan@efcis.com

W: www.efcis.com

EFCIS Limited - Trade Credit Insurance, Debt Collection, Dispute

Resolution and Legal action for small/medium & multinational

businesses. EFCIS secures limits for clients where the financials

alone do not support the full limit. We are tenacious when

negotiating settlement of claims, securing full payment for claims

and proactively working with our clients in claims avoidance.

We are the industry’s only Broker to develop policy compliance

software to ensure client’s maximum benefit and protection

from the policy. We believe that a well-managed ledger supports

business growth within increased profit and an improved return

on investment.

CREDIT MANAGEMENT SOFTWARE

Creditsafe Business Solutions

Bryn House, Caerphilly Business Park, Van Rd,

Caerphilly, CF83 3GG

T: 0292 088 6500.

E: ukinfo@creditsafeuk.com

W: www.creditsafeuk.com

Creditsafe is Europe’s most used supplier of credit & business

intelligence. Creditsafe have helped over 60,000 customers

across Europe and the USA with a range of products which

includes our UK, European and International Company Credit

Reports, which reach over 129 countries and 90m companies;

customer and supplier Risk Tracker and our 3D Ledger product

which has captured over 35 million Trade Payment Data

Experiences since its launch in 2012. All of which will help

companies manage their exposure to risk, make informed

decisions in relation to credit limits whilst looking at how you

can identify gaps within your sales ledger to prioritise collections

and leverage sales.

Top Service Ltd

2&3 Regents Court, Farmoor Lane, Redditch,

Worcestershire, B98 0SD

T: 0152 750 3990.

E: enquiries@top-service.co.uk

W: www.top-service.co.uk

Top Service is the only credit reference and debt recovery

agency to specialise in the UK construction sector. Top Service

customers benefit from sector specific information, detailed

payment history intelligence and realtime trade references in

addition to standard credit information. There are currently

3,000 construction sector companies subscribing to the service,

ranging from multi-national organisations to small family firms.

The company prides itself on high levels of customer service

and does not tie its customers into restrictive contracts. Top

Service offers a 25 percent discount to all CICM Members as

well as four free credit checks of your choice.

BUREAU VAN DIJK

Northburgh House,

10 Northburgh Street,

London,

EC1V 0PP

T: +44 (0)20 7549 5000

E: bvd@bvdinfo.com

W: www.bvdinfo.com

We specialise in company information with extensive company

coverage, financial risk metrics and comprehensive corporate

structures.

Our information helps you make better quality decisions.

•Assess financial risk and corporate stability

•Get insight on the financial health of individual companies and across

your portfolio

•Manage your data more efficiently

Our Credit Catalyst combines our international, standardised financial

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

make better quality decisions and spot risk quickly.

•Comprehensive coverage of companies across the globe

•Standardised reports so you can benchmark and compare companies

•Financial strength indicators from a range of providers

CREDIT INSURANCE

Arthur J. Gallagher

Insurance Brokers Limited

7 Floor, Temple Point, 1 Temple Row

Birmingham B2 5LG

T: 0121 203 3127

W: www.ajginternational.com

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

Global companies there has never been a better time to consider

trade credit insurance. Arthur J. Gallagher’s Credit and Surety team,

which now includes the 2014 – CICM award winning ‘broker of

the year’ team, has considerable experience and market influence

and recognises the unique nature of the credit insurance market.

Our team of experienced professionals deal with a wide range of

businesses, from SME to large corporate and global risks. Please

contact us to discuss how a specifically tailored trade credit solution

can benefit your business

Innovation Software

Innovation Software, Innovation House,

New Road, Rochester, Kent, ME1 1BG.

T: +44 (0)1634 812300

E: jay.inamdar@innovationsoftware.uk.com

W: www.creditforceglobal.com

Innovation Software are the authors of CreditForce, the leading

Collections and Working Capital Management Systems. Our solutions are

used in over 26 countries and by over 20 percent of the Top 100 Global

Law Firms.

Our solutions have optimised Accounts Receivables processes for over

20 years and power Business Intelligence, with functionality to:

• improve cash flow • reduce DSO • control risk

• automate cash allocation • speed up query resolution

• improve customer relationship management

• automatically generate intelligent workflows and tasks

• manage the entire end-to-end collections cycle.

Fully integrated with over 40 leading ERP and Accounting systems,

including SAP, Oracle, Microsoft Dynamics and product partners with

Thomson Reuters Elite we can deliver on either your own computing

infrastructure or through Microsoft Azure’s award winning and secure

cloud service.CreditForce remains the choice solution for world class

businesses.

Book a demonstration by calling T: +44 (0)1634 812 300 or visit

www.creditforceglobal.com for more information.

Co-pilot Limited

73 Flask Walk, London, NW3 1ET

T: +44(0) 20 7813 2182

E: info@co-pilot.co.uk W: www.co-pilot.co.uk

Credit Managers who manage large or multiple ledgers have come to

realise that they need to use specialist software to achieve or maintain

performance improvement – be that risk, collections or both.

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

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

budgeting process? What are the steps?

Co-pilot has advised on credit management software for a number of

years. We have good knowledge of the available solutions, what’s good,

how they work and what type of solution best fits given situations. We

combine this with considerable experience of credit management Best

Practice so that you can pull everything together into one place and

achieve a flexible and sustainable position going forward.

We work with you through a structured evaluation process which is

designed to enable you to have a clear view of what you can achieve

going forward, what is practicable, the business case implications,

the preferred supplier(s) and what the implementation process would

sensibly look like (in our opinion, there is no such thing as “Plug and

play”).

60 June 2017 www.cicm.com

The Recognised Standard


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

Prof. Schumann GmbH

innovative information systems

Weender Landstr. 23, 37130 Göttingen, Germany

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

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

Our Credit Application Manager (CAM) is a leading credit risk

management solution for major corporations, as well as insurance,

factoring and leasing companies. In their daily work, CAM allows

credit and sales managers to call up all the available information

about a customer or risk in a few seconds for decision support: realtime

data from wherever they are. CAM keeps an eye on customers

whose payment behaviour stands out or who have overdue invoices!

CAM provides an up-to-date forecast of customers’ payments.

Additionally, CAM has automated interfaces for connecting to

leading suppliers of company credit data, payment record pools and

commercial credit insurers. The system is characterised by its great

flexibility. We have years of experience in consulting and software

support for accounts receivable management.

Safe Computing Limited

20, Freeschool Lane, Leicester, LE1 4FY

T: 0844 583 2134

E: info@safecomputing.co.uk

W: www.safe-financials.co.uk

Designed to manage your customer credit accounts effectively,

Safe Credit Control enables your credit management team to:

• Improve cash flow

• Reduce debtor days

• Increase customer service

• Cut the cost of cash collection

• Eliminate manual processes

• Speed up the query resolution process

Safe’s unique approach is centred on changing the perception

of the credit control function from a series of reactive processes

to proactive ones. Credit controllers are traditionally regarded

as an essential element in business to chase late payments

and respond to customer queries. Safe Credit Control has taken

the concepts of customer relationship management (CRM) and

applied it to the credit control function, providing a softer,

service orientated team of customer service representatives.

Credica Ltd

Building 168, Maxell Avenue, Harwell Oxford,

Oxon. OX11 0QT

T: 01235 856400

E: info@credica.co.uk

W: www.credica.co.uk

Our highly configurable and extremely cost effective Collections and

Query Management System has been designed with three goals in

mind:

• To improve your cashflow

• To reduce your cost to collect

• To provide meaningful analysis of your business

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

Professionals across the UK and Europe, our system is successfully

providing significant and measurable benefits for our diverse

portfolio of clients.

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

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

STA International

3rd Floor, Colman House,

King Street , Maidstone , ME14 1DN

T: +44(0)844 324 0660.

E: enquiries@staonline.com

W: www.stainternational.com

GETTING BUSINESS PAID

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

credit control and tracing supplier. ISO9001 quality accredited, and

with the CSAs Collector Accreditation Initiative, duty-of-care is as

important to us as it is to you. Specialising in international debt, in the

past 12 months we’ve collected from 146 countries worldwide. “Your

Debts Online” gives you transparent access to our collection success

and detailed management information, keeping you in control of your

account. We look forward to getting your business paid.

Tinubu Square UK

Holland House,

4 Bury Street, London

EC3A 5AW

T: +44 (0)207 469 2577

E: uksales@tinubu.com

W: www.tinubu.com

Tinubu Square offers companies across the world the appropriate

SaaS platform solutions and services to significantly reduce their

exposure to risk, and their financial, operational and technical

costs. Easy to implement, our solutions provide an accurate

picture of a customers’ financial health through the entire

order-to-cash cycle, improve cash flow, and facilitate control

of risk across the organization whether group-wide or locally.

Founded in 2000, Tinubu Square is an award winning expert in

the trade credit insurance industry, with offices in Paris, London,

New York, Montreal and Singapore. Some of the largest

multinational corporations, credit insurers and receivables

financing organizations depend on Tinubu to provide them with the

means to drive greater trade credit risk efficiency.

Data Interconnect Ltd

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

Oxfordshire. SN7 7BP

T: +44 (0) 1367 245777 F: +44 (0) 1367 240011

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

Data Interconnect provides integrated e-billing and collection

solutions via its document delivery web portal, WebSend. By

providing improved Customer Experience and Customer Satisfaction,

with enhanced levels of communication between both parties, we

can substantially speed up your collection processes.

Rimilia

Corbett House, Westonhall Road, Bromsgrove, B60 4AL

T: +44 (0)1527 872123

E: enquiries@rimilia.com

W: www.rimilia.com

Rimilia excels in the design, development and implementation of

Intelligent Finance Solutions that drive value from existing manually

intensive finance processes associated with accounts receivable,

cash allocation, credit management, bank reconciliation and cash

forecasting. Based in the heart of the UK, our operations extend to

Europe, USA and Asia. Experienced in the field of technology and

accounting, our approach to business revolves around integrity

and enabling organisations to unlock their full potential though

innovation. Rimilia is proud to be a leading innovative supplier of

finance solutions that make a positive change to the blue chip clients

it supplies.

HighRadius

T: +44 7399 406889

E: gwyn.roberts@highradius.com

W: www.highradius.com

HighRadius is the leading provider of Integrated Receivables

solutions for automating receivables and payment functions such

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

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

(SaaS). HighRadius also offers SAP-certified Accelerators

for SAP S/4HANA Finance Receivables Management, enabling

large enterprises to maximize the value of their SAP investments.

HighRadius Integrated Receivables solutions have a proven track

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

increasing operation efficiency, enabling companies to achieve an

ROI in less than a year.

DATA AND ANALYTICS

Dun & Bradstreet

Marlow International, Parkway Marlow

Buckinghamshire

SL7 1AJ

Telephone: (0800) 001-234

Website: www.dnb.co.uk

Dun & Bradstreet grows the most valuable relationships in business.

By uncovering truth and meaning from data, we connect our

customers with the prospects, suppliers, clients and partners that

matter most, and have since 1841. Whether your customer portfolio

spans a city, a country or the globe, Dun & Bradstreet delivers the

data, analytics and insight to grow your most profitable relationships

and navigate credit risk. By combining your insights with our own,

Dun & Bradstreet facilitates a global, unified view of your customer

relationships across credit and collections.

The Recognised Standard

www.cicm.com June 2017 61


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

FINANCIAL PR

PROFESSIONAL BODIES

Gravity London

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

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

W: www.gravitylondon.com

Gravity is an award winning full service PR and advertising

business that is regularly benchmarked as being one of the best

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

long-term relationships with some of the industry’s best-known

brands working on often challenging briefs. As the partner agency

for the Credit Services Association (CSA) for the past 13 years,

and the Chartered Institute of Credit Management since 2006, it

understands the key issues affecting the credit industry and what

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

beyond.

LEGAL MATTERS

DWF LLP

Neil Jinks FCICM – Director

M: +44 (0)7740 179 515

T: +44 (0)121 516 7462

E: neil.jinks@dwf.law

W: www.dwf.law/recover

Described by market commentators as “blazing a trail”, DWF is one

of the UK’s largest legal businesses with an award-winning reputation

for client service excellence and effective operational management.

Named by the Financial Times as one of Europe’s most innovative

law firms and independently ranked first of all top 20 law firms for

quality of legal advice and joint first of all national law firms for service

delivery and responsiveness. DWF offers a full range of cost effective

debt recovery solutions including pre-legal collections, debt litigation,

enforcement, insolvency proceedings and ancillary services including

tracing, process serving, debtor profiling and consultancy.

PAYMENT SOLUTIONS

American Express

76 Buckingham Palace Road,

London

SW1W 9TQ

T: +44 (0)1273 696933

W: www.americanexpress.com

American Express is working in partnership with the CICM and is

a globally recognised provider of payment solutions to businesses.

Specialising in providing flexible collection capabilities to drive a

number of company objectives including:

•Accelerate cashflow

•Improved DSO

•Offer extended terms to customers

•Provide an additional line of bank independent credit to drive

growth

•Reduce risk

•Create competitive advantage with your customers

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

American Express is working with credit managers to drive growth

within businesses of all sectors. By creating an additional lever

to help support supplier/client relationships American Express is

proud to be an innovator in the business payments space.

Chartered Institute of

Credit Management (CICM)

The Water Mill, Station Road, South Luffenham,

OAKHAM, LE15 8NB

T: 01780 722910 E: info@cicm.com

W: www.cicm.com

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

largest credit management organisation. The trusted leader

in expertise for all credit matters, it represents the profession

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

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

accredited by Ofqual and it offers a comprehensive

range of services and bespoke solutions for the credit professional

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

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

PROFESSIONAL BODIES

CICMos (CICM Online Services)

WWW.CICM.COM

T: 01780 722 907.

E: training@cicm.com

W: www.cicmos.com

CICMOS has been designed to help busy credit managers by

providing them with a suite of online tools to support and

quickly develop their teams. The virtual learning centre is an

open platform system, accessed via the website, which is

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

which means the system can be tailored to suit specific

requirements and time constraints. This wide ranging system

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

and can be accessed securely via the CICMOS website for a

low annual subscription.

RECRUITMENT

PORTFOLIO

CREDIT CONTROL

Portfolio Credit Control

Portfolio Credit Control, New Liverpool House,

15 Eldon Street, London, EC2M 7LD

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

Portfolio Credit Control, solely specialises in the recruitment of

permanent, temporary and contract Credit Control, Accounts

Receivable and Collections staff. Part of an award winning

recruiter we speak to and meet credit controllers all day everyday

understanding their skills and backgrounds to provide you with tried

and tested credit control professionals. We have achieved enormous

growth because we offer a uniquely specialist approach to our

clients, with a commitment to service delivery that exceeds your

expectations every single time.

Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Hays Credit Management is working in partnership with the CICM

and specialise in placing experts into credit control jobs and

credit management jobs. Hays understands the demands of this

challenging environment and the skills required to thrive within

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

contract based opportunities to find your ideal role. Our candidate

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

interviews and a credit control skills test developed exclusively

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

and can provide advice across a wide spectrum of job search and

recruitment issues.

ANTI MONEY LAUNDERING

THE ONLY AML RESOURCE YOU NEED

SmartSearch

Harman House, Station Road,

Guiseley, Leeds, LS20 8BX

T: 01132387660

F: 0113 238 7669

E: info@smartsearchuk.com

W: www.smartsearchuk.com

KYC, AML and CDD all rely on a combination of deep data with

broad coverage, highly automated flexible technology with an

innovative and intuitive customer interface. Key features include

automatic Worldwide Sanction & PEP checking, Daily Monitoring,

Automated Enhanced Due Diligence and pro-active customer

management. Choose SmartSearch as your benchmark.

ATTENTION

PRODUCT AND

SERVICE PROVIDERS

You can connect with them all now by

having a listing in CreditWho.

For just £1,247 + VAT per annum:

- your business will be listed in Credit

Management magazine, which goes out to

all our members and subscribers and has an

estimated readership of over 25,000.

TO BOOK YOUR LISTING IN

CREDITWHO CONTACT:

ANTHONY CAVE ON: 020 3603 7934

For even greater exposure to our

membership and a closer association with

CICM, why not enquire about becoming a

Corporate Partner.

To find out more contact Peter

Collinson (07584 993548).

CICM Corporate Partners now get

CreditWho included.

62 June 2017 www.cicm.com

The Recognised Standard


MONTHLY PRIZE CROSSWORD

CREDIT CONUNDRUM

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

Puzzle by © 2012 Mirroreyes Internet Services Corporation. All Rights Reserved - CROSSWORD JUNE 2017

NAME ....................................................................................................................................

ADDRESS ..............................................................................................................................

...............................................................................................................................................

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

The CICM is registered with the UK’s Information

Commissioner under the Data Protection Act 1998

(the "Act"). All the data contained on this form, is

held and processed electronically in accordance

with the Act.

The Institute holds and processes your personal

data in order to give you the full benefits of being

a member and for administrative purposes.

We might from time to time notify you by post or

email of details of CICM events or other similar

CICM services or products which we think

September be of interest to you. If you do not wish

to receive such notification please tick here q

If you subsequently decide that you do not wish

to receive such notifications please email the

Institute at unsubscribe@cicm.com or write to the

Data Controller at the address given below.

The Data Protection Act gives you the right at any

time to see a copy of all the data that we hold

about you. If you would like a copy, please send a

letter requesting this information together with a

cheque for £10 payable to :

The Chartered Institute of Credit Management

to: Data Controller, CICM, The Water Mill,

Station Road, South Luffenham, OAKHAM,

LE15 8NB.

£20 CROSSWORD PRIZE

THERE WILL BE THREE PRIZES OF £20 EACH FOR

THE FIRST THREE NAMES DRAWN EVERY MONTH

ACROSS:

1. Smudge

5. Loose flesh under the jaws

10. Tatters

14. Pear-shaped instrument

15. Not cool

16. Wings

17. Leave out

18. Endanger

20. God of wine

22. A canvas shoe

23. Goblin

24. Amount of hair

25. Furnace

32. European blackbird

33. Deploy

34. Mayday

37. Beseech

DOWN:

1. Untidy one

2. Mountain lion

3. Ear-related

4. In an ill-natured manner

5. Chewy jellied candy

6. 1 1 1 1

7. Which person?

8. What we kiss with

9. Extent

10. Radiolocation

11. Same

12. Stares

13. Clairvoyants

19. Attempt again

21. Sharpen

25. Rapscallions

26. Roman emperor

27. Outcropping

28. Sexually assaults

29. Got up

38. Make a parody of

39. Grumble

40. Soak

41. Visitor

42. Back tooth

43. Compulsively

45. Gesture of indifference

49. Mineral rock

50. Spotter

53. Lithesome

57. Unfeeling

59. Relating to aircraft

60. C C C C

61. Electronic letters

62. Badgers

63. Anagram of "Sees"

64. Squalid

65. "Iliad" city

30. Moves briskly

31. Buffoon

34. A period of discounted prices

35. By mouth

36. Agile

38. A type of large sandwich

39. Pledge

41. 60s dancers

42. Bog

44. Alone

45. Slash

46. Houses

47. Hemp cords

48. An edict of the Russian tsar

51. Applications

52. An indefinite period

53. Slender

54. Beloved

55. Therefore

56. Optimistic

58. Bleat

CLOSING DATE: 12 JUNE

LAST MONTHS CROSSWORD WINNERS

Atul Vadher FCICM, Sian Marshall and Tony Allen

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

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

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

The Recognised Standard

www.cicm.com June 2017 63


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