Credit Management magazine December 2017

CREDIT MANAGEMENT
CM
DECEMBER 2017 £12.00
THE CICM MAGAZINE FOR CONSUMER AND
COMMERCIAL CREDIT PROFESSIONALS
INSIDE
2018 DESKTOP
CALENDAR
Face to Face
Sean Feast speaks
to Business Minister
Margot James
The rise and rise of
Peer-to-Peer alternative
finance. Page 13
The story behind the
collapse of Toys R Us.
Page 36

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13
PEER PRESSURE
ROBERT PETTIGREW
24
POLAND –
ADAM BERNSTEIN
DECEMBER 2017
www.cicm.com
CONTENTS
11 – INSOLVENCY
David Kerr examines the Insolvency
Service’s review of how complaints
against IPs are handled.
13 – PEER PRESSURE
The Peer-to-Peer Finance market is
booming – Sean Feast talks to Robert
Pettigrew, Director of the P2P Finance
Association about what the future
holds.
18 – DOWN TO BUSINESS
Margot James, discusses what
influenced her career choices, a passion
for small business and a love of French
wine.
26 – THE PRICE IS RIGHT
Philip King explains the change in
membership fees and how they are
designed to help those starting out on
their career.
31 – FROM THE ARCHIVE
An article from the Credit Management
archives written 45-years ago –
‘The Computer An Aid to Credit
Management’.
36 – TOY STORY
The decline of the world-famous toy
store and the lessons to be learned.
46 – BUILDING SKILLS
A look at how the CICM is helping
employees at Saint-Gobain gain
qualifications and progress their
training.
@Credit_Magazine
Publisher
Chartered Institute of Credit Management
The Water Mill, Station Road, South Luffenham
OAKHAM, LE15 8NB
CICM GOVERNANCE
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-Bowen MCICM / Victoria Herd FCICM(Grad) / Edward Judge FCICM
Christelle Madie MCICM(Grad) / Robert Marr MCICM / 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
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.
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
Imogen Hart and Iona Yadallee
Advertising
Anthony Cave
Telephone: 0203 603 7934
Email: anthony.cave@cabbell.co.uk
Printers
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2017 subscriptions
UK: £108 per annum
International: £140 per annum
Single copies: £12.00 ISSN 0265-2099
The Recognised Standard / www.cicm.com / December 2017 / PAGE 3

EDITOR’S COLUMN
The worst and the best of
British politics and politicians
Sean Feast
Managing Editor
IT has been an interesting few
weeks in the corridors of power,
as Members of Parliament
get their collective knickers in a
twist, quite literally it appears,
over a series of allegations of inappropriate
behaviour and misconduct
that will feed the Red Tops with salacious
gossip until Christmas at least.
It would be funny if it wasn’t so serious,
with one MP taking his own life and alleged
incidents that go far beyond the realms of
drunken misjudgement and into true and
quite horrible crime – if they are proven
to be true. Perhaps the most unedifying
spectacle for me, however, is watching
my media colleagues circle like a pack of
hyenas, having sensed blood, and turning
a hand on a knee into the crime of the
century. I once interviewed a well-known
musician who spent the entire 40 minutes
constantly touching my knee. Twenty years
of counselling and I think I’m over it now.
Unhappily, and again without wishing
to simply shrug one’s shoulders in a Gallic
suggestion of ‘c’est la vie’, it all rather
distracts from the business of Government,
and it is easy to forget that while some are
fully absorbed by the scandal, others are
quietly getting on with the day job. Among
them is the Minister for Small Business,
Consumers and Corporate Responsibility
Margot James, who took time out of her
busy schedule to take part in our exclusive
interview (see page 17).
Some of the work Margot and her
colleagues have been doing is impressive,
not least in the £3.4 billion of finance
provided to almost 60,000 firms via the
British Business Bank programmes, and
creating 38 local growth hubs which
make it easier for start-ups and existing
businesses to access the support they
need.
But I am more impressed with her
acknowledgement of the help provided
by the Chartered Institute of Credit
Management in tackling late payment. She
describes the CICM as being ‘instrumental
in driving forward Government priorities
in improving payment practices’ and
this is a tremendous credit to the CICM
team, and the Chief Executive, in being
a constant and consistent voice on
improving payment practice, and the
vital importance of professional credit
management.
Oh, and Happy Christmas, if you’re
still allowed to say such things.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 4

CMNEWS
A round-up of news stories from the
world of consumer and commercial credit
Written by – Sean Feast and Alex Simmons
ITN and CICM combine to
present new ‘Credit Champions’
news documentary
Philip King
Chief Executive of the CICM
“CICM members are
experts in their field,
and will welcome this
exciting initiative
that will highlight the
critical importance
of professional credit
management in managing
cashflow and supporting
business success.’’
IN what is being described as a
unique communications partnership,
the Chartered Institute of Credit
Management (CICM) and ITN
Productions are producing a news and
current affairs-style programme exploring
the impact credit management has across
the supply chain and the need to support
the growth of businesses and the economy
through healthier cashflow.
‘Credit Champions’ will aim to promote
excellence in credit management and raise
awareness of its vital role within business
and the community.
The management of credit has
unparalleled influence on the 5.5 million
small businesses in operation across the
UK, and their supply chains. Late, or prompt,
payment can significantly impact the
success of a business, as well as its ability
to expand and innovate. ‘Credit Champions’
will bring to life why relationship-building
between creditors and debtors is so
important by illustrating examples of best
practice and highlighting solutions to
underlying problems.
The programme will also look at how
poor credit management or lengthy
payment terms can have a significant
and detrimental impact later down the
line including the mental health of those
involved in the supply chain.
Drawing upon ITN’s 60-year heritage
and expertise in storytelling, the newsstyle
piece will be anchored by national
newsreader Natasha Kaplinsky to combine
key interviews and reports with sponsored
editorial profiles from leading organisations.
‘Credit Champions’ will premiere during
British Credit Week in March 2018, and
form part of an extensive communications
campaign featuring CICM members,
industry partners, government partners,
as well as relevant journalists, writers and
bloggers.
Phillip King, Chief Executive, CICM
is delighted with the initiative: “CICM
members are experts in their field, and
will welcome this exciting initiative that
will highlight the critical importance
of professional credit management in
managing cashflow and supporting
business success. We anticipate it will be
an important contribution to the ongoing
debate amongst businesses and within
Parliament as to the best ways of improving
the payment culture, through a better
understanding of best-practice credit
management principles.”
Simon Shelley, Head of Industry News,
ITN Productions, added: “We’re delighted
to be partnering with the Chartered
Institute of Credit Management to produce
a programme exploring how credit
management effects so many aspects of
business across the supply chain. We want
to bring to life a profession that impacts
significantly on the success of a business.”
>TOKEN GESTURE
A new ‘London Fundraising Token Manifesto’ has been launched with the backing
of the Long Finance community. The manifesto – created by Professor Michael
Mainelli, Executive Chairman of Z/Yen Group – is a voluntary code of conduct
created in collaboration with the finance industry and blockchain technology
leaders. The manifesto aims to establish new standards for initial coin offerings
(ICO) and initial token offerings (ITO), the fundraising mediums that enable investors
to back companies using cryptocurrency. The Manifesto has been modelled on the
Chartered Institute of Investment & Securities' code of conduct and features eight
principles, including honesty, integrity and fairness when dealing with consumers.
longfinance.net/nstm
>STOP PRESS
AT the time of going to press, The Times was reporting that
Cabot Credit Management’s IPO had stalled, as shares in the
business were struggling to sell, despite being reduced in price.
Shares in Arrow Global, arguably Cabot’s biggest rival, were also
reported to be down, with one fund manager taking of a ‘lack of
momentum’. Hedge Funds have been shorting debt collection
agencies and claim Cabot is over-valued.
cabotcm.com
The Recognised Standard / www.cicm.com / December 2017 / PAGE 5

American Express named as
Headline Sponsor of CICM British
Credit Awards
American Express has been announced
as the Headline Sponsor of the 2018 CICM
British Credit Awards, the most prestigious
Awards in the credit and collections
calendar, recognising best practice
and outstanding individual and group
achievements. The award winners will be
announced at a glittering celebration in
London in February.
Philip King FCICM, Chief Executive of the
Chartered Institute of Credit Management,
said: “We are thrilled to have American
Express on board as Headline Sponsor of our
Awards. The event has grown each year and
having such a well-known, leading brand
in the financial services sector associated
with the Awards is testimony to the high
profile the CICM British Credit Awards now
enjoys.”
Mike Jackson, Vice President and General
Manager Merchant Services UK, at American
Express said: “As a provider of Business
to Business payment solutions, American
Express works with credit professionals
who constantly innovate to drive growth
and support their customers. As such we are
thrilled to sponsor the CICM British Credit
Awards which are truly the recognised
standard in the credit industry and further
raise the profile of American Express in this
sector.”
For all table bookings please contact
Natasha Witter on T: 020 7484 9876 or
E: natasha.witter@incisivemedia.com
>NEWS
IN BRIEF
MARKETINVOICE
REBRAND
MARKETINVOICE, the peer-to-peer
invoice finance platform, has rebranded to
coincide with a new product offering. The
company will now be offering unsecured
business loans ranging between £10,000
and £100,000 over a 12-month term with
no early repayment fees. MarketInvoice,
which claims to have channelled more
than £1.6 billion to UK businesses through
its invoice finance products, said it is
looking to support a wider range of
companies. Its business loans will be
available to slightly younger firms – that
have been trading for as little as six
months – with a minimum turnover of
£70,000.
marketinvoice.com
PAINT BY NUMBERS
WEST Sussex-based art supplies
manufacturer Chameleon Art Products
has received a £1 million funding line from
Bibby Financial Services (BFS). The maker
of art and craft products exports to a large
number of countries around the world.
Established in the UK in 2013, Chameleon’s
flagship item is a pen that uses two nibs to
produce a gradient-like effect.
bibbyfinancialservices.com
15 YEAR MILESTONE
November 2017 marked the 15th anniversary for CoCredo, a provider of online company
credit reports and related business information within the UK and overseas. The business
was established as part of Wyse Leasing and became a stand-alone private limited
Company in 2005. Dan Hancocks, the Managing Director, and CICM Think Tank member,
has been with CoCredo from the start and took over complete ownership of the business
in 2015. He says has seen the company go from strength to strength over the last few years
with profits increasing and the reputation of the business escalating within the B2B arena.
cocredo.co.uk
CASH CROPS
ULTIMATE Finance has launched a
purchase finance product to help SMEs
buy goods. The new product is completely
unsecured with the SME funding partner
instead considering the ongoing trading
performance of a business. Purchase finance
is described as a flexible line of credit
that covers any type of stock purchases,
including raw materials, work-in-progress
and perishables.
ultimatefinance.co.uk
Work together to stop late payment
BRITAIN’S culture of late payment requires
a mix of government action, peer pressure
and persistence, a leading boss of a
business organisation has warned.
Speaking at the Telegraph Festival of
Business, Philip King, Chief Executive
of the Chartered Institute of Credit
Management (CICM) claimed there was no
panacea: “There is no silver bullet,” he said.
“In order to get paid on time, it is
important that businesses know who they
are dealing with, including whether their
client is a limited company or a sole trader,
what their reputation is like and if they are
in good financial health. Suppliers should
always confirm terms up front,” he added.
“If you don’t agree payment terms until
after you’ve supplied, you’re on to a loser.”
Successive governments have
introduced new legislation to tackle the
problem, but seemingly to little avail. One
third of payments to small businesses are
late, according to the Federation of Small
Businesses (FSB), causing 50,000 firms to
fail each year.
Richard Gilkes, Managing Director of
SME Stort Chemicals, warned against
seeing it as a “them and us” situation. “The
majority of our customer base is SMEs
and we have good payers and bad payers,”
he said. “The most important thing to
understand is things can get better.”
Sandra Cotton, Aviva’s Business
Manager of Accounts Payable, said new
rules requiring large businesses to publish
how quickly they pay suppliers will help.
“Reporting will raise the profile internally
so we can see who is paying on time and
who isn’t,” she said.
Ms Cotton said that when dealing with
large organisations, it is important also
to have contact details for somebody who
works in accounts payable: “Often the
person who instructed you in the first
place is not the person who will pay your
invoice,” she said.
“If you don’t agree
payment terms until after
you’ve supplied, you’re on
to a loser.”
The Recognised Standard / www.cicm.com / December 2017 / PAGE 6

Rising costs threaten survival
of UK restaurants
A fifth of UK restaurants are at risk of going
insolvent according to new figures from
Moore Stephens, which warned that rising
staff costs and food prices were putting a
strain on operators.
The research showed a total of 14,800
restaurants were faced with the prospect
of going under, not helped by a weakening
pound. The pound has decreased in value
by over 13 percent against the euro and 12
percent against the US dollar since the UK
voted in a referendum to leave the European
Union last year, Moore Stephens said.
Since the UK imports over half of its
food, with 75 percent coming from the EU,
restaurants have been faced with a decision
to either raise their prices or reduce their
profit margins. The National Living Wage
also increased to £7.50 an hour in April, up
from £6.70 in 2015, and will rise to at least
£9.00 an hour by 2020.
Moore Stephens also cited business rates
as a factor. A recalculation of rates has seen
restaurants in London facing a maximum
42 percent increase in business rates in
the first year, according to the Mayor of
London’s office.
Byron, Prezzo and Jamie’s Italian have
all closed outlets in the past year owing
to tough trading conditions. Handmade
Burger Co went into administration earlier
this year, further highlighting the problems
facing the sector. Insolvency Service data
shows that the number of restaurants
entering insolvency has increased by 13
UK insolvency slips in
worlds rankings
THE UK Government needs to kick-start
its stalled corporate insolvency reforms in
the wake of the UK insolvency framework
falling from 13th to 14th in the World Bank’s
rankings, according to the Association of
Business Recovery Professionals R3.
R3 is warning that with other countries’
insolvency and restructuring frameworks
improving, and with Brexit potentially
creating barriers to resolving crossborder
insolvencies from the UK, the UK
is at risk of seeing its current competitive
advantage in international insolvency and
restructuring diminish unless reform efforts
are renewed. A less competitive insolvency
framework would have a detrimental
impact on the wider economy.
The Government announced insolvency
reforms in May 2016, but limited progress
has been made since. The Government is
yet to respond to its own ‘call for evidence’
on the reforms, which closed in July 2016,
while plans for reform were absent from the
Queen’s Speech earlier this year.
Adrian Hyde, R3 President, says
corporate insolvency reform should be a
priority for the UK: “We currently have a
world-class insolvency and restructuring
framework, but we can’t stand still. Others
percent in 2016/17 to 1,544 from 1,363 in
2015/16.
Jeremy Willmont, partner at Moore
Stephens, says the sector is one of the
most competitive for a business to survive
at the best of times and current market
conditions make it even tougher: “The
increase in the number of insolvencies in
the last year is indicative of how difficult the
market conditions are now. Finances can be
uncertain in the restaurant sector, but this is
beyond the norm.
“In such a competitive market,
restaurants need to be wary of building
up losses and debt now in the hope of
future profits, as the industry looks to be
facing a prolonged period of tough trading
conditions.”
moorestephens.co.uk
are catching up to us and over-taking. EU
member states and places like Singapore
have embarked on ambitious insolvency
reform projects in a bid to tempt investment
and businesses to their countries.
“Meanwhile, the UK Government has
gone cold on its own reforms, and Brexit
risks making it harder to resolve the
insolvencies and restructurings of large,
multi-national companies from the UK.
Insolvency reform would be a welcome step
to making sure the UK economy is prepared
for Brexit. It’s not something we can leave
until after we have left. That might be too
late.
“An effective insolvency and
restructuring framework is an absolutely
vital part of any economy. It helps
rescue businesses and jobs, and provides
lenders, investors and trade creditors
with confidence that they can get at least
some of their money back when things
go wrong. The flexibility and practicality
which underpin the UK’s insolvency and
restructuring framework help to attract
business to the UK; if we don’t continue to
improve the framework, the whole economy
will suffer.”
r3.org.uk
>NEWS
IN BRIEF
SINGING FROM
THE VALLEYS
THE Secretary of State for Wales Alun
Cairns has called on Welsh SMEs to take
advantage of the new UK governmentbacked
export finance opportunity to help
gain access to global growth markets.
The Secretary of State highlighted
the new UK Export Finance (UKEF)
partnership – supported by five high street
banks – which is designed to enable Welsh
SMEs to access support directly from their
bank in seconds, without needing to apply
separately.
The fund will support businesses such as
those on the Fast Growth 50 list to become
part of major export contracts around the
world. Since it was established in 1999, the
551 companies that have featured on the
list are said to have created over 34,000
jobs and generated an estimated £18 billion
for the Welsh economy.
gov.uk/government/organisations/ukexport-finance
SMES RESIGNED TO
HARD BREXIT
MORE than a third of UK SMEs (35 percent)
are resigned to a ‘hard Brexit’, according to
Bibby Financial Services and its latest SME
confidence tracker which has reported
a fall in confidence following prolonged
negotiations between the UK and the
European Union.
The survey found that just 20 percent
of SMEs expected Brexit to be achieved
by March 2019. The vast majority of SMEs
(71 percent) were clear that Brexit would
happen, with 51 percent anticipating a
transitional phase before the UK can leave
the European Union.
Figures also revealed that 26 percent
of SMEs felt that an uncertain economic
environment in the UK was holding back
investment, with other barriers including
rising costs, declining sales, building up
cash reserves, and uncertainty arising from
the exit from the EU.
bibbyfinancialservices.com
The Recognised Standard / www.cicm.com / December 2017 / PAGE 7

Equifax US attack leaves 700,000
UK residents seeing red
READERS who have had their personal
data stolen following the cyber-attack
on Equifax, the credit reference agency,
have reacted with surprise and concern
to a letter sent by the firm that admits
that hackers have had access to critical
personal information for more than six
months.
The letter, sent to almost 700,000 UK
residents, says that hackers have had
access to their data since May 2017, even
though Equifax in the US did not discover
they had been attacked until July, did not
reveal the breach until September, and
victims in the UK were not informed until
the second half of October.
They have also expressed some surprise
that data such as UK driving license
numbers was being stored by Equifax’ US
business.
Equifax was at pains to point out that
its UK business, Equifax Ltd, had not been
attacked, and had responded within days
of being informed, but that 15.2 million UK
A new guidance paper has been released
to help directors better understand and
meet their obligations when it comes to
financial reporting.
The paper, ‘Directors Responsibilities
for Financial Reporting: What You Need to
Know’, is designed to help directors avoid
the pitfalls of financial reporting.
The work is a joint publication
between Chartered Accountants Australia
and New Zealand (CA ANZ) and ACCA
(the Association of Chartered Certified
Accountants).
Maggie McGhee, Director of
Professional Insights at ACCA, says it’s
important for directors everywhere to
take their responsibilities seriously: “As
well as important details on practice and
process, this paper provides the questions
records dating from between 2011 and
2016 had been accessed. Equifax admitted
that the storage of historic data in the
US had been the result of a ‘process
error’.
Initially, Equifax had issued a press
release saying that 400,000 UK customers
had been affected, but this figure almost
doubled when further data was analysed.
One CICM member, who did not
wish to be named, said: “Whereas I
understand that data can be hacked, I
still don't understand why it has taken
them six months to tell me, nor do I
understand why they are storing details
of my driver’s license in the US? I am
also underwhelmed that their solution
appears for me to store more of my data
with them!”
Credit Management understands that
since the attack, Equifax has increased its
investment in cyber-security to prevent
such attacks from happening again.
equifax.co.uk
SSEN returns excessive profits
CITIZENS Advice has welcomed news
that Scottish and Southern Electricity
Networks (SSEN) will make a voluntary
contribution of £65.1 million to consumers,
relating to its electricity transmission
business.
Earlier this year Citizens Advice
highlighted how energy network companies
are said to be making billions of pounds
worth of ‘unjustified profit’ from customers
and called for this money to be returned to
people via lower energy bills.
Chief Executive of Citizens Advice Gillian
Guy says energy network companies have
enjoyed profits at the expense of people
overpaying on their bills: “So it’s very
welcome news that Scottish and Southern
Electricity Networks (SSEN) has listened to
our call to return money to its customers.
“As we head towards winter the prospect
of rising energy bills will be weighing on
the minds of many families and energy
network firms are a key driver of these
costs. It’s good to see SSEN leading the
way by making a voluntary contribution
to customers. We hope to see other energy
network companies following suit soon.”
citizensadvice.org.uk
Accountants launch new
reporting paper
directors need to be asking to make sure
the financial reporting process is sound,
and the output of that process provides
meaningful information to investors and
other users.
“It’s a helpful reminder to our
members across the world, particularly
entrepreneurs and those working in
and for small and medium businesses,
of this crucial aspect of corporate
governance. This global overview of
directors’ responsibilities at different
stages of the financial reporting process
will hopefully provide an opportunity to
start a conversation in the boardroom
about financial reporting, and corporate
reporting in general.
charteredaccountantsanz.com
accaglobal.com
>NEWS
IN BRIEF
SUPERMARKET SWEEP
METRO Bank has provided Capreon – the
asset manager of the Alhambra Shopping
Centre in Barnsley – with a £17.3 million
capital injection. The capital will assist with
operations and management of the centre.
The Alhambra Shopping Centre is a duallevel
centre located in the heart of Barnsley
town centre, and is home to over 40 stores,
including Primark, Wilko, Next and TK
Maxx. metrobankonline.co.uk
CALL FOR EVIDENCE
THE Government is issuing a call for
evidence to gain further insight from the
debt advice sector and creditors about the
scale of the current debt crisis and about
how best to design, implement, administer
and monitor a six-week breathing space
scheme and statutory debt repayment plan.
The informal consultation closes on 16
January 2018.
CITY AM AWARD
Moore Stephens has won the Accountancy
Firm of the Year at this year's City A.M.
Awards. The CICM Corporate Partner beat
off competition from EY to achieve the
accolade. The eighth City A.M. Awards
were held at the Grange Hotel, in the
shadow of St Paul's Cathedral where 12
individuals and businesses collected
gongs from host Julia Hartley-Brewer.
moorestephens.co.uk
WHAT A CARVE UP
Lowell, backed by the Permira funds and
Ontario Teachers’ Pension Plan, has entered
into a definitive agreement to acquire the
carve-out business from Intrum Justitia.
The carve-out comprises Lindorff’s entire
business in Denmark, Estonia, Finland and
Sweden as well as Intrum Justitia’s entire
business in Norway and was specified by
the European Commission as a condition
of the combination of the two companies
earlier this year. The transaction is valued
at €730 million on an enterprise value basis
and is subject to the approval of Lowell as
purchaser by the European Commission,
as well as customary competition and
regulatory approvals. It is expected to close
in H1 2018. lowell.co.uk
CICM In Brief
This month's briefing includes details of the
free CICM Law Conference at the 'Walkie
Talkie' on November 30, the discounted rate
for CICM members to attend Credit Week,
CICMQ successes for Tata Global Beverages
and Amari Metals, and the white paper on
Bitcoin and Blockchain technology by Phil
Ariss, Regional Cyber Crime Unit (RCCU)
at East Midlands Special Operations Unit
(EMSOU).
The Recognised Standard / www.cicm.com / December 2017 / PAGE 8

The state of the credit
management nation
THE CICM is seeking the views of members
in a new survey – ‘The State of the Credit
Management Nation’ – being launched and
conducted by students at Sheffield Hallam
University.
The survey, commissioned by the
CICM’s Think Tank, a group of 25 senior
credit industry executives, will explore
every aspect and specialism of the credit
MAT’s bailiffs figures disputed
by Enforcement body
LOCAL authorities across England and
Wales have referred debts to bailiffs on 1.8
million occasions in the last 12 months,
according to figures obtained by the Money
Advice Trust. The charity issued Freedom
of Information requests to all 374 local
authorities in England and Wales.
However, the figures have been disputed
by the Civil Enforcement Association
(CIVEA) and described as ‘misleading’ as
many authorities re-issue previous years’
debts when issuing a debt for the current
year.
Kevin McCarthy, President of CIVEA,
says what is of considerable concern is
that of those authorities listed in the top
10, 50 percent now have an in-house bailiff
team: “Such in-house bailiff teams are
normally set up on the basis that it will give
the Council greater controls to protect the
vulnerable, whereas these figures indicate
that Councils with an in-house enforcement
agent team are more likely to move more
often to enforcement, hence incurring more
fees more quickly for debtors.
“A check of one of the Councils cases
in the list shows that for every 1,000
bailiff cases issued there are actually 540
properties. A Council with an in-house
team has a self-interest in moving a case
quickly on to the bailiff stage as it generates
additional income for a council, this is not
the case where an external enforcement
agent is used.”
According to MAT’s figures, there is
variation across the 374 different local
authorities in England and Wales as
to how frequently bailiffs are called in:
Birmingham City Council (the largest
local authority in the UK) referred debts to
bailiffs on 82,329 occasions in the last 12
months – equivalent to 17 percent of total
properties in the city. The London Borough
of Newham Council referred 55,652 cases
to bailiffs – equivalent to nearly half of the
total properties under its authority.
Merthyr Tydfil Council referred 6,094
debts to bailiffs, equivalent to 22 per cent of
the total properties under its authority.
Joanna Elson OBE, Chief Executive of
the MAT, says it is not economically or
socially responsible for local authorities
to continue to use bailiffs so frequently:
“Local authorities seem to be assuming
that anyone not paying debts is a ‘won’t
pay’, rather than a ‘can’t pay’. In today’s
economy, with real incomes having fallen
consistently for many years, more and
more people are falling into the ‘can’t pay’
bracket – sending the bailiffs in to collect
these debts can be very destructive, both
financially and psychologically.”
moneyadvicetrust.org
civea.co.uk
Philips & Cohen strengthens
senior team
PHILLIPS & Cohen Associates has moved to
strengthen its senior leadership team with
a significant re-organisation; Nick Cherry
moves up to the role of Chief Operating
Officer for the global organisation.
Cherry, who has been with the business
since 2010, previously fulfilled the role of
Managing Director of PCA International and
oversaw all group activity outside of the US
mainland. Cherry will now be responsible
for overseeing all aspects of collections and
digital strategy, operations, HR, recruitment
and training for the global group.
In conjunction with Cherry’s new global
role, the group has moved to strengthen its
executive leadership in both markets.
management lifecycle.
Philip King, Chief Executive of the CICM
urged members to take part: “This is one of
the most important initiatives to come from
our Think Tank group and will be used to
inform the thinking and direction of future
credit strategies,” he said.
The survey closes on 15 December, 2017.
The report will be published in Spring 2018.
Stuart Webb, formerly of New Day,
Santander and Barclays, has joined the UK
management team as Site Director. Stuart
brings with him operational collections
and risk management experience, which
will further re-enforce PCA’s position as
the leading provider of deceased account
management services in the UK.
Similarly, Andrew Worrall, whose
career with PCA spans 12 years, has
been appointed as Site Director of the US
Headquarters in Wilmington, Delaware.
Andrew has fulfilled several prior roles
at PCA, most recently VP of Client and
Acquisition Services.
phillips-cohen.co.uk
Brits trapped in
working poverty
ONE in five people (21 percent) in the UK
are still earning below the real Living Wage,
meaning that an estimated 5.5 million
employees are struggling to get out of
in-work poverty, according to a new report
published by KPMG.
The research, conducted by IHS Markit for
KPMG, found that the total number earning
below the real Living Wage is down slightly
by 100,000 compared to last year, when
an estimated 22 percent of all jobs and 5.6
million roles paid less than the real Living
Wage. This is the first reduction in five
years, but still leaves the total of one million
more people earning below the real Living
Wage than in 2012.
For five years in a row, the research finds
that women are considerably more likely
to be paid below the real Living Wage than
men. With nearly 225,000 more women in
work than last year, this year’s data shows
that just over one in four (26 percent) of
female employees earn less than the real
Living Wage, compared to 16 percent of all
males. In numerical terms this equates to
3.4 million female employees versus 2.1
million male employees.
Around 3.1 million part-time employees
earn less than the real Living Wage,
compared with 2.4 million full-time
workers. Part-time jobs are around three
times more likely to pay below £8.75 per
hour (or £9.75 in London) than full-time
roles. Some 42 percent of part-time workers
now earn less than the real Living Wage,
compared with 13 percent full-time workers.
Indeed, the difference is so stark that
despite accounting for less than one-third
(28 percent) of all UK jobs, part-time roles
represent more than half (56 percent) of all
jobs paying less than the real Living Wage.
Regionally, Northern Ireland has the
highest proportion of jobs earning below
the real Living Wage at 26 percent, followed
by the East Midlands, Yorkshire and
Humber, Wales and the West Midlands all
at around 24 percent. The lowest proportion
of employees earning less than the Living
Wage is found in the South East at 17
percent, Scotland at 18 percent and London
at 19 percent.
However, by number of people rather
than proportion, London at around 750,000,
followed by the South East and North West
at an estimated 635,000 each, are the areas
with the highest levels.
ihsmarkit.com
The Recognised Standard / www.cicm.com / December 2017 / PAGE 9

NEWS SPECIAL
ALL RISE
With news that the Bank of England has raised
interest rates, and future rates are only heading one way,
Credit Management asked experts in the world of credit
and financial services for their views of what it all means.
Richard Carter, Managing Director, Equiniti Credit Services
“NOW that interest rate rises have finally
begun, homeowners will become increasingly
anxious to secure the best mortgage
deals available. Lenders will be under
growing pressure to pass the new rates on
to their customers, but with 60 percent of
homeowners on fixed-rate products, the
majority won’t suffer the hikes just yet.
This gives smart lenders a window of opportunity.
Agile technologies can quickly
reduce operating costs enabling lenders
“OUR figures show that 8.8 million people
are using credit for everyday living
expenses, including 1.1 million turning
to high cost credit. Many people are just
hanging by their fingertips currently,
but are increasingly at risk of falling into
financial difficulty. While the rise in interest
rates was small, we estimate our
clients with mortgages need to pay on
average £20 more monthly, which could
to pass these savings onto consumers in
the form of new lower-rate products.
“By bucking the trend for inflating
rates, lenders can immediately stand out
in a new market of increasingly uneasy
homeowners, retaining existing customers
and securing new ones. Lenders that
have been mulling automation and intelligent
credit systems should act now – this
is a golden opportunity to grow their businesses.”
Peter Tutton, Head of Policy at StepChange Debt Charity
Ted Winterton, UK CEO at Bibby Financial Services
“THE increase is a mixed blessing for
SMEs. On the one hand, it signals that
the Monetary Policy Committee is more
confident about the economy, but the rise
in interest on loans could hit some micro
businesses who’ve become used to a decade
of rock bottom rates. Our Global Business
Monitor research recently found
that over half (56 percent) of businesses
expect to be affected by an interest rate
rise and two fifths (39 percent) believe
Paresh Davdra, CEO and Co-Founder of RationalFX
“CRUCIALLY, the BoE indicated that
further rate rises would be gradual over
the next three years, highlighting the
cautious mood amongst policymakers.
The pound has fallen against its peers
in response, with analysts disappointed
that this does not signal further rises in
the immediate future. The BoE
highlighted the impact of Brexit on the
economic outlook, suggesting that this is
behind the hesitation in promising future
push one in ten clients into a position
where they can’t cover essential bills.
Those who are just about managing will
need help to adjust. Future rate increases
could pose problems given the squeeze
on household finances from rising inflation
and sluggish wage growth. A clear
Government strategy on supporting those
struggling with problem debt is therefore
long overdue.”
that this would negatively impact their
business.
“With the Bank of England forecasting
two additional rate rises by 2020, businesses
are likely to become even more
stretched. It is therefore crucial that SMEs
review their business plans to account for
future rate increases, while also leaving
enough room for the funding they need to
invest in their business so they can continue
to grow.”
rises. Their concerns were underlined
by release of the UK’s construction PMI,
which showed weak growth from 48.1
to 50.8 pecent and business confidence
at its lowest since 2012. Investors will
be watching closely in the coming
weeks- with the pound lower against
its peers after the long-awaited interest
rate decision, analysts will be looking
for future key drivers that can boost the
currency.”
Markus Kuger, Senior Economist
– Europe, Dun & Bradstreet
“THE Bank of England’s decision to raise
interest rates to 0.5 percent, up from
their all-time low of 0.25 percent, was not
unexpected, as several MPC members had
been openly talking about this possibility
in recent times. The fact that inflation
reached a five-and-a-half year high of
3.0 percent in September put additional
pressure on rate setters, leading to the
UK’s first interest rate rise in more than a
decade. “The Bank of England is currently
in an uncomfortable position: inflation
is significantly overshooting the target
rate of 2.0 percent, but, at the same time,
growth has slowed significantly since the
start of 2017. The decision to raise interest
rates should, together with base effects
and the slower rate of economic growth,
help to bring inflationary pressures down
in the coming quarters. However, the
MPC’s move will add to the headwinds
the British economy is already facing
in the wake of Brexit. Dun & Bradstreet
forecasts that 2018’s inflation and real
GDP growth levels will be lower than the
values estimated for 2017.”
Mihir Kapadia – CEO and Founder
of Sun Global Investments
“WHILE the interest rate hike bodes well
to support the pound, it also increases the
borrowing costs for consumers and business.
It will mean an increased squeeze on
consumers with loans and mortgages, thus
nipping their spending and in turn affect
the economy. It may well turn out to be a
vicious loop, especially as Brexit woes continue
to weigh down on the UK’s economy.
“The last time the Bank of England had
increased the interest rates was in July
2007, when it pushed the cost of borrowing
to 5.75 percent months before cutting them
during the onset of the financial crash
of 2008. Today’s increase comes at a time
when the economic framework has stabilised
and careful credit scrutiny is in place
to prevent another crash. The interest rate
hike may well deter consumers from accessing
cheap credit”
The Recognised Standard / www.cicm.com / December 2017 / PAGE 10

Joanna Elson OBE, Chief Executive
of the Money Advice Trust
“THIS first rate rise in more than a decade
could be a turning point for many households.
Future interest rate rises are likely to be slow
and gradual – but even small increases in
costs could cause significant problems for
many households. High levels of household
debt, a renewed squeeze on wages and now
the prospect of higher interest rates threaten
to be a dangerous mix for many households.
Calls to National Debtline are already up
10 percent this year, and we expect demand
for debt advice to increase significantly in a
higher interest rate environment. It is vital
that lenders, government and advice agencies
work together to make sure people affected
receive the support they need.”
Ian Stewart, Chief Economist
at Deloitte
“SHORT of walking down Threadneedle Street
wearing a sandwich board telling us that
the Bank was about to raise rates Mr Carney
couldn’t have made his intentions clearer. The
Bank is on a tightrope, it wants to dampen
down inflation and consumer borrowing
without knocking out the UK consumer.
Incomes are shrinking and households need
cheap finance. The rise is a warning shot, not
the start of quick fire campaign of rate hikes.
With the Bank labouring the risks to growth,
we are heading into the most cautious,
tentative rate hike cycle in modern history.”
Angus Dent, CEO, ArchOver.
“THIS rate rise of 0.25 percent is largely
symbolic. At the same time, it’s also a year
too late. Dropping the interest rate below 0.5
percent was the wrong decision in the first
place. The Bank should have pushed rates
up to 0.75 percent as a show of strength that
would have driven inflation down as the
pound rose. Although this rise is unlikely to
have any major material effects, it is a return
to the trajectory we should have been on for
the past year, and a good sign for a bolder
policy. For many, the move towards a higher
interest rate will simply mean business as
usual.”
DCAS urged to prepare
for card payment ban
THE Credit Services Association (CSA)
has urged members to start preparing
for the Government’s decision to ban
additional charges for certain future
card payments.
From 13 January next year,
businesses, including CSA
Members, will no longer be able to
charge surcharges for certain card
transactions, but will still face the
costs for processing card payments.
John Ricketts, President of the
CSA, says this could have ‘serious
implications’ for debt collection
agencies managing card payments for
outstanding debts, and they need to be
prepared: “Members need to act now to
ensure their websites and letter suites
are updated or they will be breaking
the law,” he explains.
“Although a simple enough initiative
on the outside, it may involve
significant changes to IT processes
and call processes, all of which will
need to be in place before the January
deadline.”
Mr Ricketts is also concerned that
the plans will add yet another layer of
cost that will ultimately have to be met
elsewhere.
“While Her Majesty’s Treasury has
stated it will engage with businesses
regarding whether more can be done to
help them with these charges, and the
Government has previously capped the
costs businesses face for processing
card payments, further costs appear
unavoidable,” he says.
“While the transaction charges may
appear small to the outside world,
they can represent a large percentage
of the total commission for the work
undertaken, especially when only
nominal payments have been agreed.
Multiply these charges by the many
thousands of accounts an agency may
handle, however, and it can add up to a
significant sum of money.”
As part of the Government’s new
Payment Services Regulations 2017
(PSR 2017), alternatives to card
payments are being more actively
promoted. Where the customer gives
their explicit consent, authorised third
parties, including financial technology
firms, will be able to access data from
all of the customer’s bank accounts in
order to provide information services
and make payments on behalf of
customers.
“The intention is that a range
of alternative payment options
may be available to consumers,”
John continues. “This may enable
innovations such as managing all
bank accounts from one app or making
automatic payments between bank
accounts when funds are running low
to avoid overdrafts.”
In the longer term, John believes
this will be of benefit to creditors and
customers alike, but in the short term,
prohibiting the charging of fees will
make a difficult job more difficult still:
“For agencies who are used to passing
on these costs, this will no longer be an
option,” he concludes.
csa-uk.com
Research claims businesses
are taking an alternative path
MANY small businesses are turning to
alternative finance options, including
peer-to-peer lending, to support their
growth plans in 2018, according to new
research from Worldpay, the payment
processing company.
A poll of 1,000 small business owners
by Worldpay found 52 percent are
concerned that traditional routes to
finance, including bank loans, might
not be available at the same levels in
the coming year. Nearly a third (30
percent) have already encountered
difficulties securing funding through
these traditional channels.
Meanwhile, 40 percent of younger
business owners claimed the growth of
alternative finance options has made
them less reliant on banks for funding.
The poll found alternative funding
options are almost on a par with
traditional bank lending in terms
of popularity among start-ups and
younger business owners. Although
21 percent of business owners aged 44
or under said they are still most likely
to apply for a bank loan when looking
for funding, 17 percent said they are
more likely to look at crowdfunding, 11
per cent P2P lending and six per cent a
business cash advance.
The survey also suggests small
business owners are concerned about
political and economic uncertainty
in the year ahead. Just 43 percent
thought trading conditions would
improve in 2018, with Brexit the most
popular reason for their concern.
Only 32 percent of businesses in
London said they are optimistic about
the economy in 2018, compared with
54 percent of those in Birmingham and
the West Midlands.
Despite their concerns, more than
half of the small business owners
surveyed stated they are planning to
grow in 2018.
business.worldpay.com
The Recognised Standard / www.cicm.com / December 2017 / PAGE 11

INSOLVENCY
Compensation for creditors?
There is a fine balance to be struck between the right of
redress and compensation claims.
AUTHOR – David Kerr MCICM is the Chief Executive of the Insolvency Practitioners Association (IPA).
David Kerr
IN its role as the oversight regulator,
the Insolvency Service (IS)
(an executive agency of BEIS)
undertook a review of how the
regulators handle complaints
against Insolvency Practitioners
(IPs). One of its recommendations was for
the regulators to enter discussions with
IS to consider the feasibility of a regulatory
mechanism whereby compensation
can be paid by IPs to complainants where
they have suffered inconvenience, loss or
distress as a result of IPs’ actions.
This is based on a trend towards
increasing the number of complaints
from consumers, and a Government
desire to see some form of redress for
complainants generally, applied mostly
in cases of minor error, mistake or
alleged poor practice on the part of IPs.
It is also related to the relatively new ‘fair
treatment’ statutory objective for the
insolvency regime.
However, some careful consideration
of the need for ‘compensation’ as such is
required. There is a concern among some
that payment of compensation by IPs for
matters that would otherwise be brought
to the attention of the regulators may
adversely impact on effective regulation.
There is a current Insolvency Guidance
Paper on Dealing with Complaints, and
this already makes provision for IPs and/
or their firms to have in place proper
procedures for dealing with complaints,
and covers the need for explanation,
rectification where appropriate, and
apology. It doesn’t expressly provide for
compensation, but before this or any
other mechanism is used to explicitly
introduce compensation as part of the IPs’
procedures, the circumstances in which
that might (or might not) be appropriate
should be explored.
IPs are generally acting for the
collective benefit of creditors, and their
acts and dealings will usually affect
creditors generally. Financial redress to
one creditor in a class would ordinarily
not be appropriate, unless that creditor/
complainant has suffered some particular
financial loss as a direct consequence of
an IP’s acts or defaults. That could apply
in some personal insolvency cases where
the debtor is the complainant, but even
their IPs’ decisions are likely to impact on
creditors generally rather than the debtor;
where debtors complain about perceived
delay, for example, they are not likely to
have suffered any loss.
Unfortunately, some degree of distress
or inconvenience is not uncommon among
those affected by insolvency proceedings,
as a result of the financial circumstances
of the insolvent entity and the consequent
loss creditors and others suffer, or just
as a result of a lack of understanding of
insolvency processes; can IPs be expected
to compensate for that?
Regulators are required to address the
conduct of IPs. There is scope with the
published Common Sanctions Guidance
for the regulators’ committees and
tribunals to take into account mitigating
factors such as efforts by IPs to resolve
and remedy complaints, and by that IPs
are not discouraged from rectifying a
matter where that can be done.
As part of the complaint form for the
Government’s online Complaints Gateway,
complainants are required to say whether
the matter had been brought to the
attention of the IP. If IPs and complainants
have resolved matters through an apology
or payment of compensation, it would
not seem appropriate for the regulators to
then reconsider those matters (other than
to consider that redress in the context of
mitigation), but matters amounting to
misconduct should arguably not be dealt
with between IPs and complainants;
instead they should be brought to the
attention of the regulators and dealt with
appropriately by them. There is a separate
question about the processes that may
then ensue, and a consistent redress or
dispute resolution system operated by
regulators is a worthy discussion topic.
The present recommendations from IS
is focused on IPs’ paying compensation.
Where less serious matters are resolved
by some rectification/redress/apology,
the complainant should not ordinarily be
permitted to progress the matter further.
Some complainants would see that as a
restriction.
Policing a compensation scheme
operated by IPs outside of the regulators’
complaints regime can only be reviewed
after the event, realistically through
routine monitoring. That is done already
to some extent. But while a review of IPs’
procedures and their application might
be expected, neither complainants nor
the IS could reasonably expect regulators
to second-guess whether what was
agreed between the parties was fair or
reasonable.
So, the balance here is to consider
redress mechanisms with regard to the
seriousness of the matters in a complaint,
to assess the complainant’s wishes, and
to ensure as far as possible that serious
conduct matters are not ‘paid away’.
It is also important to appreciate that
complaints processes are not primarily
geared towards compensation, but instead
designed to address conduct issues in
the context of the regulators’ overall
responsibilities. Perhaps the public
interest and confidence in the insolvency
regime should be primarily focused
on the broader regulatory framework
and the assurance it can provide rather
than on compensation (though it may
have a place) but instead on the broader
regulatory framework and the assurance
it can provide.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 12

OPINION
AUTHOR – Sean Feast
PEER
PRESSURE
The Peer-to-Peer finance community is currently
going through something of a purple patch with new
players and platforms being launched on a regular
basis. In part one of a two-part article, Sean Feast caught
up with the Director of the P2P Finance Association,
Robert Pettigrew, to find out more.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 13
continues on page 14 >

OPINION
AUTHOR – Sean Feast
Robert Pettigrew
Director of the P2P
Finance Association
THE Financial Conduct Authority
(FCA) uses the term
‘crowdfunding’ to encompass
both equity crowdfunding and
debt-based (peer-to-peer) lending;
this term tends not to be
used by the Government (Treasury), and it is
not conducive to improved understanding of
the sector to conflate the two activities. Peerto-peer
lending involves the facilitation of
debt-based finance via an electronic platform
by means of direct contracts between investors
and borrowers, with some investment funds
from retail investors (including high net worth
individuals). In terms of the risk/return profile,
peer-to-peer lending tends to represent less
risk than equity-based investments, including
crowdfunding, though as an investment product,
it also represents more risk than bankbased
deposit products.
SF: WHAT SORT OF BUSINESSES BENEFIT
THE MOST FROM P2P LENDERS?
RP: Peer-to-peer lenders in the small business
lending market do not lend to start-ups and
in consequence, tend to be focused on firms
who are seeking capital for growth or who require
relatively swift decision-making in their
application for a loan. As the market for peerto-peer
lending has evolved, so different platforms
have developed their business models to
serve different parts of the market: typically,
platforms compete with banks primarily on
the basis of consumer experience, speed of
decision (and access to the loan), offering prices
which, whilst competitive, tend to be relatively
consistent with those offered by more
established incumbent financial service institutions;
in that sense, most platforms can be
deemed to be price-takers in the market, and
compete on other terms.
SF: HOW WELL IS IT UNDERSTOOD?
RP: Peer-to-peer was established in the UK by
the platform Zopa in 2005. It grew substantially
following the financial crash, particularly
as bank lending retracted from the small business
and consumer lending markets, and the
opportunity for financial disintermediation
combined with a focus on consumer experience
came into focus. The development and
mainstream availability of the internet has
played a significant part in the development
of peer-to-peer lending, and the competitive
impact in mainstream financial services has
been noteworthy.
SF: WHAT IS THE BIGGEST ISSUE/BARRIER
TO THE WIDER GROWTH OF P2P?
RP: As knowledge and awareness of peerto-peer
lending expands, the emphasis on
transparency is crucial. The Association’s
Operating Principles commit all of our
members to high levels of disclosure and this
is important in establishing and maintaining
confidence in the market. Peer-to-peer
lending platforms are eager to maintain their
prospectus as available for retail investors,
and ensuring that the disclosures mandated
of platforms is meaningful, with consistent
methodology across the sector, is useful. The
P2PFA requires this of all of its members,
and there is scope for the adoption of very
unambiguous sector-wide standards to ensure
that confidence continues to be enhanced as
knowledge and awareness increases.
SF: WHAT REGULATORY PRESSURES DO
P2P BUSINESSES FACE AND ARE THEY
INCREASING?
RP: Since 2014, the sector has been subject
to statutory regulation (for which the P2PFA
had long advocated and encouraged) under
the FCA. The regulator has embarked on a
post-implementation review of crowdfunding
regulation, whose initial observations were
published some months ago: the P2PFA agrees
broadly with the themes and issues identified
by the regulator for making amendments to
the current regulatory regime. The P2PFA will
continue to supplement the basic regulatory
requirements established by the P2PFA, and
to require members to commit to the highest
levels of transparency and good business
practice.
SF: IS TECHNOLOGY STILL A KEY
DIFFERENTIATOR IN THE MARKET
(BETWEEN THE VARIOUS PLAYERS)?
RP: Platforms have, inevitably, invested a great
deal in the development of technology systems
for their operations – though it should not be
under-estimated the priority afforded to credit
risk assessments on which the success or
The Recognised Standard / www.cicm.com / December 2017 / PAGE 14

OPINION
AUTHOR – Sean Feast
failure of any individual platform rests. Primarily,
platforms compete with the banks and
other financial institutions on the basis of consumer
experience and speed of decision; competition
between different platforms reflects to
a large extent the nature of the specific markets
being served and the requirements/appetites
of particular lenders and borrowers: e.g.
consumer, small business, real estate sectors,
difference in risk-appetites, basis for lending
and length of loan etc
SF: HOW SUPPORTIVE IS GOVERNMENT/
BEIS TO ALTERNATIVE FINANCE?
RP: The Government, regulator and other
policy-makers have demonstrated considerable
support for the effective competition and
access to finance which alternative finance
represents. The establishment of the
Innovative Finance ISA is clear evidence
that there is recognition of the role which
alternative finance can play in the financial
services landscape. Similarly, the P2PFA works
closely with the Government and with the FCA
to ensure that the regulatory regime continues
to reflect the evolution which has taken place
in the peer-to-peer lending market, and that
important issues which improve consumer
protection and sector-wide standards are
adequately considered and, where necessary,
addressed. The role of the peer-to-peer
lending sector as a sustainable part of the UK’s
financial services landscape is supported by
policy-makers within the parameters of an
effective market where platforms continue to
be able to demonstrate the value which they
can bring for borrowers and lenders through
efficient financial disintermediation.
SF: WHAT DOES THE FUTURE HOLD FOR
P2P AND IS IT NOW ESTABLISHED AS
‘MAINSTREAM’ WITHIN THE ‘ALTERNATIVE’
FINANCE SECTOR?
RP: Ultimately, there is likely to remain a market
for peer-to-peer lending alongside banking
as part of the financial services landscape in
the future. The extent to which peer-to-peer
Figures for the period between July and
September 2017, appear to confirm the
continued steady growth in levels of new
lending and in the number of borrowers
facilitating loans through peer-to-peer
lending platforms. More than £700
million was lent over the period of which
more than £472 million of loans went to
businesses during these three months.
Cumulative lending at the end of the
same period in 2016 for P2PFA platforms
was £4.2 billion; this figure stands at £7.1
billion for the end of September 2017’.
The P2PFA was established in 2011 by the
largest platforms in the UK market as a
representative and self-regulatory body
for debt-based peer-to-peer lending. The
P2PFA seeks to inform and educate, promote
high standards of business conduct, and
work with policy-makers, regulators and
opinion-formers to ensure an effective
regulatory regime – particularly for
consumers (both borrowers and lenders).
The Association currently comprises
seven member platforms (Folk2Folk,
Funding Circle, Landbay, Lending Works,
MarketInvoice ThinCats, and Zopa), who
are required to commit to high levels of
transparency – including publication of
their loan books and various other data on
returns performance, credit risk and bad
debt as set out in its Operating Principles.
Most platforms operate under Article
36(H) of the Regulated Activities Order
under the Financial Services & Markets
Act (2000), and platforms operating such
a model require authorisation by the FCA.
Platforms which were operating in the
market before 2014 (when the regulator
assumed responsibility) are permitted
under interim authorisation whilst their
applications are considered. All of the
P2PFA’s platforms which have sought
authorisation have now achieved it.
However, some forms of direct lending
(such as invoice finance) does not require
Article 36(H) authorisation, and, as such,
MarketInvoice is not authorised under that
provision.
has a potential to ‘capture’ and sustain a proportion
of the market depends on the response
to the competition which this form of alternative
finance brings, and how economic conditions
for lending and borrowing through
platforms develop: however, it seems credible
that, for consumer lending and small business
lending, this could be a significant part (perhaps
between a third and a half of that lending
activity). Peer-to-peer lending comprises a
very significant part of the overall alternative
finance sector (in terms of the size of the respective
components), and peer-to-peer lending
has experienced sustained, steady levels of
growth in the last few years. As awareness of
the opportunities and risks involved with peerto-peer
lending continues to expand, and the
emphasis placed by consumers on the lending/
investing experience, it seems likely that there
will continue to be impressive, steady growth
in the future.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 15

CICMQ
Marston's pulls the perfect pint
with CICMQ accreditation
Marston’s Beer Company
MARSTON’S Beer Company,
the largest cask
ale producer in the UK
and part of Marston's
PLC, has joined the
growing list of CICMQ-
accredited companies and in the process
has become the first brewer to gain this
award.
Marston’s PLC is a fully integrated Brewery
and Retail model, operating six breweries
and owning well over 1,700 pubs and
lodges, with brands that include Pedigree,
Hobgoblin, Wainwright and Young’s and
Courage.
There are 12 members of the team which
generates around 10,000 invoices a week
from circa 6,000 customers. Its customer
profiles can be varied from Free Trade accounts,
national retail companies, the main
supermarket chains and export accounts.
Paul Bramley, Senior Manager Credit
and Loans, Marston’s Beer Company
says CICMQ was initially considered in
raising the profile and standards of the
Marston’s Beer Company's credit and
loans department both with its internal
and external customers. “It has promoted
our standing throughout the business
and with our extensive customer base,
and re-affirms that we are doing all the
right things with our customer relationships.”
Sharon Adams FCICM (Grad) says the
team worked collaboratively and with other
departments to develop the methods
and procedures to meet CICMQ Standards:
“They enhanced their current system
to produce a ‘one way of working for all’,
this in turn enhanced the team spirit and
brought them together creating a sense of
camaraderie.”
The team recently won the Department
of the Year award at its own company
conference.
Adecco places faith in its people
Adecco UK & Ireland
‘In a business where people are the trading
commodity, the focus in this business is on
the welfare of its people, the service to its
customers and the effective collection of
cash,’ says Assessor, Sharon Adams in her
report on Adecco, the recently three-time
CICMQ re-accredited company.
Adecco UK & Ireland is the largest
recruitment company in the UK and the
world. The credit team consists of 59
members of staff, split into six specialised
teams collecting approximately £200
million per month.
Elisabeth Doppelhofer, Senior Credit
Manager of the Adecco Group UK & Ireland
says failing to apply to renew CICMQ
accreditation was simply not an option:
“It makes us feel immensely proud that
an external organisation rubber stamps
the processes and procedures we abide by
daily.
“Through our internal REACH and
LPMS programmes we have a vigorous
continuous review process which paved
the way for the assessment. Our Shared
Services Director, as well as heads of the
other SSC departments, are very supportive
and helped us pull out all the stops to ensure
we gained the re-accreditation.” This year
the company has seen a number of people
pass their CICM Credit Management exam.
The training programme will continue next
year with more team members lined up to
gain this qualification. “We believe that a
trained, educated credit department is the
best way forward,” Elisabeth adds.
‘The teams are engaged, producing
excellent results for their business in
an environment that is organised and
professional, but at the same time, energetic
and fun with a real sense of camaraderie,’
Sharon’s report concludes.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 16

Kier achieves gold after
creating Northern powerhouse
Kier group
CONSTRUCTION giant Kier Group has recently
achieved CICMQ accreditation and
been praised by the assessor for ‘the excellent
use of modern technology, the links to
video presentations included in emails is
revolutionary and a great way to personalise
the delivery of departmental information’.
Kier is a property, residential, construction
and services group that operates across
a range of sectors including defence, education,
housing, industrial, power and
utilities. The Group employs over 21,000
people in the UK, the Middle East and Hong
Kong. The credit team is part of the Order
to Cash department and made up of 25 people
with two senior managers who manage
over 30,000 live accounts, with a turnover of
more than £3 billion.
Martin Kirby, Head of Order to Cash
at Kier Group says in the muck and bullets
of the construction world, it wanted to
assure customers that it operates to the very
best standards, and has them at the core of
everything it does:
“In creating one of the largest Finance
Shared Service Centres in Manchester it was
key for the company to understand from
the outset what level of performance Gold
Standard members deliver to qualify for the
CICMQ award.
“It was essential we trained our staff in
the new ways of working, being respectful
to the old ways but ensuring we upped our
game, while also ensuring our stakeholders
were aligned to this vision and realised the
value the accreditation gives.”
The assessor’s report also highlighted the
roll out of the OTC-FSSC, which had been:
‘managed to an exceptionally high standard
with objectives set and achieved in a
relatively short amount of time and key
achievements documented along the way’.
2018 CICM EVENTS
NOT TO BE MISSED
Personal Skills Workshops
Law Conference
Webinars
Industry Workshops
Fellows’ Lunch Education Conference
CICM Best Practice
Just another great reason to be a member
See full programme at www.cicm.com/events
The Recognised Standard / www.cicm.com / December 2017 / PAGE 17

INTERVIEW
DOWN TO
BUSINESS
Sean Feast caught up with the MP and
Business Minister Margot James to
discuss her early influencers, careers
advice, and the role of Government in
supporting SMEs.
MARGOT James is a wellknown
face as the Minister
for Small Business,
Consumers and Corporate
Responsibility, and owes
some of her impressive
political career to her A-Level politics teacher.
“When I was at school, there was very little
vocational careers advice. If you wanted to
apply for university there was good advice and
support. Fortunately, I had a brilliant politics
teacher which may have something to do with
my career path. But I’ve had an interest in both
business and politics from a young age, so I’m
fortunate to be a business Minister.”
Growing up in Coventry, around where
many of her family and friends still reside,
Margot went to Kingsley School in Leamington
Spa and Millfield in Somerset before gaining
a place at the London School of Economics
where she read Economics and Government.
As a student, Margot chaired the Conservative
Association, was elected to the Student Union
Executive, and continues to support the
institution through her role as a governor.
During her studies Margot worked as a
researcher for Sir Anthony Durant MP and
after graduating spent a gap year in the press
office of Conservative Central Office.
THE WINE TRADE
Her early career, however, suggested little of
what was to come: “I had a few jobs early on,”
she explains, “but my first career step was in
the wine industry. I enjoyed living in France
and learning about wine – France remains
one of my favourite destinations and I enjoyed
completing all the exams to get the Wine and
Spirit Certificate and Diploma.”
Working later for her father, in the sales and
marketing team at Maurice James Industries
(MJI), a business he started in the 1930s, she
gained valuable experience in business across
the West Midlands. In 1986, however, she took
the bold step to start her own business: “My
father was a self-made businessman so, growing
up, I had a lot of exposure to conversations
about business,” she says. “The idea of starting
my own business came naturally to me. I also
liked the idea of being my own boss.”
The business was called Shire Health,
a Public Relations and medical education
business. It did well: Shire Health was voted
‘Consultancy of the Year’ three times and Margot
was voted Communicator of the Year in 1997.
After 12 years of running the business Margot
sold Shire Health to the WPP Group, and was
appointed Head of European Healthcare for its
advertising agency Ogilvy & Mather.
“Through running my own business, I felt
first-hand the administrative and financial
costs brought about simply by not being paid on
time,” she continues. “Late payment is harmful
to a business’ cash flow and can jeopardise
their ability to trade let alone grow, invest or
innovate. Smaller businesses in particular, due
to their position in the supply chain, are most
at risk from late payment and in the worst cases
can lead to insolvency.”
So how has she been able to apply these
experiences to her role as an MP and Business
Minister?
LATE PAYMENT
“Understanding late payment as an issue has
enabled me to prioritise and drive forward
a number of measures to improve business
payment practices,” she explains, “and
specifically the newly introduced requirement
on large business to report on payment
practices and performance and establishing
the UK’s first Small Business Commissioner.
These new measures help provide transparency
in payment practices, giving small businesses
the confidence to challenge bad payment
behaviour and drive a greater payment
standards culture.”
So what does she see as the biggest challenge
facing small businesses today? “It depends on
the sector, but for many the increased costs
connected to the introduction of the National
Living Wage and pensions auto-enrolment,
The Recognised Standard / www.cicm.com / December 2017 / PAGE 18

for example, have become a pressure. I
am glad that the Chancellor was able to
mitigate the effect of the recent business
rates re-valuation on small businesses,
particularly high street traders.”
The Government, she says, has been
prioritising support to SMEs with a number
of new initiatives. “Supporting Britain’s 5.5
million small businesses is at the heart of
this Government’s Industrial Strategy and
tackling issues such as unfair payment
practices will help support our goal to
create an economy that works for all,” she
explains.
In terms of specifics, the list of
actions looks impressive: Since 2010
the Government has invested in: British
Business Bank programmes supporting
£3.4 billion of finance to over 59,000 smaller
businesses; over 50,000 Start-Up Loans
worth over £348 million; a network of 38
local growth hubs which make it easier for
start-ups and existing businesses to access
the support they need; and an additional
business rates package, announced at the
Spring Budget, providing £435 million
of further support for businesses facing
significant bills in England.
SMALL BUSINESS COMMISSIONER
The Government has also, very recently,
appointed a Small Business Commissioner,
which begs the question as to what the
commissioner will be doing that the
Government hasn't already addressed?
“Complementing existing Government
measures to help small firms thrive,
the Commissioner will empower small
businesses to resolve payment disputes
with their larger customers and avoid
future issues by encouraging a culture
change in payment practices and how
businesses deal with each other,” she
continues. “The Commissioner will instil
confidence in small business to challenge
unfair payment practices by providing a
new independent advice and guidance
service, services they have not had access
to before.”
The Government, she says, has also been
ready and willing to engage with various
business organisations to seek guidance
and advice on such challenging issues as
driving a better payment culture. To this
end, she welcomes the support that the
Chartered Institute of Credit Management
(CICM) has been providing:
“The CICM has been instrumental in
driving forward Government priorities in
improving payment practices, particularly
the Prompt Payment Code. Using industry
The Recognised Standard / www.cicm.com / December 2017 / PAGE 19
continues on page 20 >

INTERVIEW
AUTHOR – Sean Feast
Margot James and Philip King FCICM Chief Executive
of the CICM,
experts to champion prompt payment
practices can really help stamp out the
culture of late payment and provide a
gold-standard for businesses to model
themselves on. I would like to thank the
CICM for all their work in support of this
effort.”
So away from the world of politics,
what does Margot miss most about her
former business life, and the advertising
world in particular? “The main highlight
for me,” she recalls, “was building a senior
team of people who were committed to
the business. I am still in touch with my
former colleagues, but I miss the day to
day interaction and the speed of decision
making in the private sector.”
She admits that if not an MP, she
might enjoy one last hurrah in business:
“If I wasn’t working as a Minister I’d
likely spend more time in the voluntary
sector; I’ve been fortunate to spend time
as a charity trustee and mentor. On the
other hand, I learned so much about the
workings of a large global business, when
I sold my company to WPP, that I would
enjoy one last big challenge in the private
sector.”
And what advice would she give
to a young person starting out today?
“Qualifications have an important
role and I’d encourage young people
to explore the full range of options
available to them, including university
and apprenticeships. No matter which
road you take,” she concludes, “believe in
yourself and remember that employers
will be looking for talent, interpersonal
skills, a strong work ethic as well as formal
qualifications.”
POLITICAL CAREER
Margot James stood as the Conservative Party’s Parliamentary candidate in Holborn
& St Pancras at the 2005 General Election. Whilst coming third, she succeeded in
expanding the Conservative Party’s share of the vote and gained an above average
swing of two percent.
At the end of 2005, David Cameron appointed Margot to the position of Vice
Chairman of the Conservative Party for women’s issues, a position which she held
until 2010. During this time, she formed the Women’s Policy Group under the
chairmanship of Eleanor Laing MP and contributed to the policy review process
underway in the Conservative Party.
In 2006 Margot was elected as a Councillor in Kensington & Chelsea and selected
as the Conservative Party Candidate for the constituency of Stourbridge. In 2008,
she stood down as Councillor in Kensington & Chelsea to concentrate on her work
in Stourbridge. The 2010 general election saw Margot elected as the Member of
Parliament for Stourbridge, thirty miles from where she was born. The victory
constituted a gain from Labour, with a swing of 6.9 percent and a majority of over
5,000.
Since entering Parliament, Margot has been very active. Between 2010 and 2012,
she sat on the Business, Innovation, and Skills Select Committee, and the Committee
on Arms Export Controls. She also sat on the Joint Committee on the Draft Care and
Support Bill in 2012/13, which scrutinised the reforms the Government proposed to
social care in Britain.
During the 2012 reshuffle Margot was promoted to Parliamentary Private
Secretary to Lord Green, the Minister for Trade and Investment. She enjoyed
working with officials from the Business, Innovation, and Skills Department and
the Foreign Commonwealth Office to raise awareness of the important work that
the Government is doing to support British exporters. In support of this Margot set
up the All Party Parliamentary Group for Trade & Investment, which she chaired, a
forum for businesses, trade organisations, and politicians to meet and discuss trade
issues. Margot consequently worked for Lord Green’s successor, Lord Livingston,
until she became PPS for then Leader of the House, the Rt. Hon. William Hague
MP in 2014. Margot was also previously appointed to the No. 10 Policy Advisory
Board, under the chairmanship of Jo Johnson MP. In this role Margot focused on the
economy, business and trade.
Margot was re-elected as Stourbridge’s MP in May 2015 with an increased
majority of 6,694. She was subsequently appointed Assistant Government Whip,
with responsibility for Education and Equalities. On 18th July 2016, Margot was
appointed by the new Prime Minister, Theresa May, to serve as Minister for Small
Business, Consumers and Corporate Responsibility.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 20

FROM THE CHAIR
Time to reflect
The Chair of the CICM reflects on a busy and
eventful year for the Institute.
AUTHOR - Laurie Beagle FCICM, EIICM is the Chair of the CICM Executive Board.
Laurie Beagle
ANOTHER year is almost over.
Doesn’t time fly? So with
Christmas nearly upon us,
here is a little story to get you
into the Christmas mood:
Wealthy Mr. Scrooge, after
living a hard, lonely life and always paying his
debts late, is visited by three CICM members
and faces the fearful facts about his future. You
need to sign up to the prompt payment code
he was told. With no close family or friends,
Scrooge's visions and encounters with the
Spirits remind him of the person he once was
and the person he still can be. Life lesson? "I
will join the CICM and honour Christmas in
my heart, and try to keep it all the year. I will
live in the Past, the Present, and the Future and
pay my debts on time."
We can’t say that this year has been
uneventful, what with Brexit and other
tensions abroad. I hope your year has had fewer
challenges and been fulfilling and rewarding.
Looking back at the CICM’s year I was
reminded of all the things we have achieved.
Membership has been a continuing focus
and theme of my articles so the launch of the
CICM Superheroes (the ‘member get member’
scheme) is very exciting and will not only earn
you vouchers, but also enter you into a prize
draw to win tickets for the CICM British Credit
Awards in February 2018.
For those who have never been, this is the
premier event for the credit profession. As well
as being great fun, it’s a chance to salute the
award winners and network with your peers.
Remember our credit profession has many
facets; not everybody is a credit controller
or manager. The titles are too numerous
to mention in full but from commercial to
consumer, credit information to consultancy,
from debt recovery to legal to insolvency,
the list is exhaustive. They have one thing in
common: all are welcome as members of the
CICM.
Other notable schemes have also been
devised towards increasing membership. The
Launch of our apprenticeship scheme with
21 companies now signed up and over 50 new
credit controller/collector apprentices are two
examples. We have also increased our presence
at university and college careers fairs, with
great support from our branch representatives,
all backed up by our new Member Engagement
team at HQ to enhance our relationship with
members. I would like to thank them and their
colleagues for all of their hard work; they do a
sterling job.
Some of the other tangibles this year
include the introduction of several initiatives
as a result of our strategy review announced
late in 2016. This includes the introduction of
an Advice and Support framework allowing us
to learn from expert members and feed their
input into future plans and activities.
We also launched a new ‘Managing Cash
through Brexit’ Guide in collaboration with the
Federation for Small Businesses in February
and I am pleased to report increased use of
the CICM Advice Line which has led to a wider
range of enquiry topics. Last but not least, we
have continued our close cooperation with
BEIS, working closely through the introduction
of the Duty to Report requirement for large
companies, and seeing the Prompt Payment
Code hit 2,000 signatories. These include all of
the Government’s 32 strategic suppliers.
Next year looks to be even busier and Philip
King writes about some very exciting initiatives
elsewhere in this magazine.
We will also be actively engaged with Credit
Week in March, and our involvement includes
a heavy discount for CICM members for the
2018 Credit Summit which will incorporate the
CICM Trade Credit Conference. It is also worth
remembering that Elections to our Advisory
Council will take place next year and members
will be able to register interest on the CICM
website early in 2018
As we sign off in 2017, I’d like to offer my
thanks to everybody who is involved at the
branches, in our governance through the
Advisory Council & Executive Board, our other
specialist committees, those providing services
to our members, and our Corporate Partners.
You all work so hard to create the invaluable
CICM credit community. I have been able
to meet many of you during the year and
hopefully many more in 2018
May I wish you and your families a Very
Merry Christmas and a Happy and Peaceful
New Year.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 21

HQ PROFILE – FINANCE
MEET THE TEAMS
Concluding the profiles on CICM HQ teams,
Credit Management speaks to the Governance and
Technical Services, and Finance teams.
Anne Strahan
Head of Finance
ORIGINALLY from Lancashire, but with
a love for Norfolk, Anne relocated to
East Anglia some ten years ago. But life
has a habit of taking you in unforeseen
directions and her career has brought her
to the Peterborough area, where she now
lives and works.
During her early career, Anne cut
her teeth working for large corporate
organisations (Whitbread, Crown Paint,
Barclaycard) but as her career has
progressed she has found being part of
a close-knit team much more rewarding.
She joined CICM at the end of October
and has been very warmly welcomed by
the whole team.
Anne’s role is to provide guidance
and support to the senior management
team in the planning, implementing and
monitoring of all financial aspects of
the Institute’s activities, in order to drive
successful financial performance. This
typically will involve the preparation of
monthly management accounts, annual
budgets and interim forecasts, alongside
cashflow and investment management
and various secretariat duties.
Outside of work, Anne is keen to travel
and see as much of the world as time (and
money) allows. She likes to read, is an
avid jigsaw puzzler and manages to get to
a gym a couple of times per week. Anne
is also a keen gardener and loves nothing
better than pottering around outdoors on
a warm summer’s day.
Deborah Woods
Accounts Assistant
DEBORAH started working at the
Institute straight from college 23 years
ago! She began as an Admin Assistant
in the Training Department, assisting
with open training and in-company
training, Deborah’s job title later changed
to Finance Administrator when her
role evolved to include invoicing and
managing budget sheets.
When the Training Department
merged with Education, Deborah became
part of the Learning and Development
team and continued to manage the open
training, but also began to manage and
help develop the Virtual Classrooms.
With an aptitude for numbers and a
keen interest in accounts, in 2016 Deborah
changed roles and moved to the Finance
Department, merging the finance aspects
of her previous role with the day-to-day
tasks of the Accounts Assistant. Deborah
has completed the CICM Level 3 Diploma
in Credit Management and is an Associate
Member of the CICM, she is also currently
studying for Association of Accounting
Technician (AAT) qualifications. Deborah
has two children and fostered her 16-yearold
nephew until he became 18. She
enjoys reading, cooking, walking her Jack
Russell and socialising with friends.
Angela Cooper
Accounts Administrator
AS described in her previous profile in
the October issue of Credit Management,
Angela holds a dual role within CICM, both
in retention activity in the Engagement
Team and membership accounts in the
Finance team.
She has worked in the finance
department for over eight years. Her
previous customer service, finance and
confidentiality experience have been an
advantage in helping to advise members
on concessionary rates and processing
members subscriptions by various method
of payments. Maintaining mandates and
collection of direct debits form part of her
varied tasks within a small team of three,
in a very busy department.
Outside of work Angela is kept busy
with her three-year old grandson and has
been supporting a local family friend with
her adopted Guatemalan twin girls for
ten years since they were diagnosed with
cerebral palsy.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 22

HQ PROFILE – GOVERNANCE AND TECHNICAL SERVICES
Tracy Carter
Head of Governance,
Social Media & HR
TRACY joined the Institute in 2008
following several years in a variety of
industry sectors including construction,
engineering, recruitment, investment
banking and Government which included
working across party conferences with
ministerial teams and international
media organisations.
Tracy heads up a fast-paced team
whose remit includes: the Prompt
Payment Code; giving members the
opportunity to respond to Government
consultations; CICM Advice Line; coordinating
PR activity; social media;
supporting the Chief Executive;
Governance activity including committee
work; administrating CICMQ Awards; HR
for the CICM HQ team; and CICM Think
Tank.
Tracy’s next big thing is to launch
and oversee the CICM Advisory Council
Elections in 2018. Outside of work Tracy
has a daughter, plays the occasional
game of hockey and is looking forward to
visiting Canada and Alaska next year.
Nicola Harris
Governance & Technical Services
Co-ordinator
PRIOR to joining CICM, Nicola held
several positions over 15 years within the
Global Banking and Financial Services
sectors. Her last role was as a Client
Experience Manager, providing her with
valuable administrative and customer
service experience working with clients
across Europe and the USA.
Nicola joined CICM in 2014 and is
currently Governance and Technical
Services Co-ordinator. In addition to
providing administrative support to the
Institute’s Advisory Council, Executive
Board and Technical Committee, Nicola’s
role has recently expanded to focus on
reviewing and summarising Government/
professional body consultations and
assisting with collating and writing
responses. She is also responsible for
the co-ordination of the monthly CICM
Technical Briefing, and providing support
for the increasingly popular CICM Advice
Line.
Nicola currently lives in Stamford with
her husband and young daughter.
Joanna Bray
Governance & Prompt Payment Code
Administrator
JOANNA is a recent recruit at CICM,
joining the Governance team to work
closely on the Prompt Payment Code
(PPC), which is administered by CICM on
behalf of the Department for Business,
Energy and Industrial Strategy (BEIS).
Her role also involves monitoring and
posting on CICM’s social media accounts
(LinkedIn, Facebook and Twitter), along
with assisting PR activity and CICMQ
Awards.
Prior to joining CICM, Joanna
was working for a busy PR agency,
developing PR campaigns for a highprofile
housebuilder. She will be using
her PR skills and experience to assist in
the development of PR activity across the
CICM Advice Line, Technical Services and
particularly on the introduction of new
developments to increase visibility of the
Prompt Payment Code.
Outside of work Joanna continues
to enjoy learning and reading, and
completing her Masters degree via a
distance learning course.
CICM Advice Line
Prompt Payment Code
Social media
Human Resources
for CICM HQ team
GOVERNANCE
PR and media
coverage
Technical Committee,
Think Tank, Advisory
Council, and Executive
Board
CICM UK Credit
Management Index
The office of the Chief
Executive
The Recognised Standard / www.cicm.com / December 2017 / PAGE 23

COUNTRY FOCUS
The small print
The concluding part of the country focus on Poland,
looking at employment law and some of the finer details.
AUTHOR – Adam Bernstein is a freelance business writer
A firm handshake and
direct eye-contact is
important, greeting
each person in turn.
However, men should
wait for a woman to
extend their hand, and
some Polish men may
kiss a woman’s hand
as a sign of respect.
Warsaw skyline
POLISH law allows for employment
contracts to run for
a trial period of up to three
months, a fixed term of up to
33 months, or non-fixed term.
Contracts need to be written
and signed no later than the day the worker
starts, and variations to contracts must be set
down in writing.
As with other EU member states, employees
have protection against dismissal when
they’re on leave (holiday or maternity), sick
leave with a doctor’s certificate, within four
years of pension age, or where they’re trade
union activists. Breaches of these rights can
lead to court action and/or reinstatement and
compensation – the employee can choose
which remedy to pursue.
Working hours are limited to eight hours
in 24 or 40 hours over a five-day period. There
are common-sense exceptions where production
schedules require it. It’s worth pointing
that while overtime is permitted, it’s only to
a maximum of 150 hours a year per worker
unless collectively or contractually agreed.
Holiday entitlement is 20 days a year for those
with less than ten years of service, but is 26
days for those with more than ten years of
service.
As of 1 January 2017, the minimum gross
monthly wage is 2000 pln (£427) and employers
have to pay 9.76 percent towards retirement,
6.5 percent towards disability, 0.4 to 3.6
percent towards accident (varies according to
sector), 2.45 percent towards a labour fund,
and 0.10 percent towards a guaranteed employee
benefit fund.
TAXATION
Under Poland’s tax law there are 12 different
taxes to comply with, nine are direct – corporate
income tax, personal income tax, tax on
civil law transactions, real estate tax, tax on
transport, inheritance and donations tax, agricultural
tax, forestry tax, and a tax on dogs.
The other three are indirect and are VAT, excise,
and on gaming.
The four of real concern here are corporate,
personal, VAT, and property taxes.
Corporate tax is charged at 19 percent (there
are variants up to 20 percent) and it permits
losses (up to 50 percent in any one year) to be
carried forward for up to five years.
Personal income tax covers all global income
for those with a residence in Poland
while those living elsewhere are taxed only
on their Polish income. For those earning
up to 85,527 pln the rate is 18 percent; if over
85,528 pln, it’s 14,829 pln plus 32 percent over
the surplus over 85,528 pln.
VAT is generally charged at 23 percent, but
is reduced to eight percent for some foods,
medical products, hospitality services and
community housing. It’s ‘super-reduced’ to
five percent for certain foods such as bread,
dairy, and meat, and selected publications.
Property tax varies according to usage and
are summarised well in section 5:
paih.gov.pl/index/?id=9fa83fec3cf3810e
5680ed45f71 24dce.
BUSINESS ETIQUETTE
Polish is the second most-spoken Slavic language
after Russian, and shares some of its
vocabulary with other neighbouring Slavic
countries such as the Czech Republic, Slovakia,
Ukraine and Belarus. English is the most
common foreign language spoken in Poland.
A firm handshake and direct eye-contact
is important, greeting each person in turn.
However, men should wait for a woman to
extend their hand, and some Polish men may
kiss a woman’s hand as a sign of respect. Unless
invited to do so, first names are rarely
used in business, but professional titles can
be used. Business cards should be translated
into Polish on one side.
Poles say what they think and address
matters directly – especially when saying no.
This ‘low-context communication’ is very different
in style to more indirect communication
in the UK. Especially if irritated, frustrated,
or angry, Poles would probably not hide
their emotions.
Lastly, one key point to keep in mind is
not to refer to Poland as part of Eastern Europe
because it’s a politically-charged term.
Instead use ‘Central Europe’. Many Poles may
interpret referring to Eastern Europe as associating
the country only with its Soviet-dominated
past following World War II.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 24

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The Recognised Standard / www.cicm.com / December 2017 / PAGE 25

OPINION
The price is right
Philip King reports on a series of changes to membership
criteria, benefits and fees to be introduced in 2018.
AUTHOR – Philip King FCICM Chief Executive of the CICM
Philip King
WITH any leading membership
organisation,
one of our greatest challenges
is ensuring we
continue to deliver the
benefits and support
that our members need, at an annual fee that
is proportionate, appropriate and comparable
with that which similar-sized professional
organisations who have a Royal Charter
charge. When comparing our pricing with
those organisations, the CICM typically falls
significantly short of the norm, and that
places constraints on what we can offer.
Crucially, it is not only about supporting
the members of today, but also about how our
more senior members can help those who are
just starting out on their credit management
journey. With this in mind, we have been reviewing
our membership offer and fee structure
to improve the service we offer to all our
members. The details below represent just
some of the improvements we are currently
planning.
As a result, as from 2018 we will be completely
restructuring our membership fees so
that some will pay a little more, while others
will pay a little less, and the outcome will represent
a better ‘balance’.
From next year, Fellows’ and Members’
fees will increase to £195 p.a. and £180 p.a. respectively.
Associates’ and Affiliates’ fees will
similarly rise to £130 p.a. and £95 p.a. respectively.
Conversely, members who are actively
studying will see a reduction in their fees to
£57 p.a, while our members who are retired,
on maternity leave, or have suffered redundancy
will see a stabilising of their concessionary
fees to £50 p.a. across all grades.
Discounts will be available to those paying
by direct debit, whether monthly or annually,
and following this restructure, all membership
fees will increase by no more than inflation
for the next three years.
A principal driver behind these increases
is to help fund the new generation of learners
coming through the ranks, which is why they
will pay less. It is one way, and I speak as a
Fellow myself, of giving something back.
We already offer learning opportunities
and qualifications, awareness and discussion
of the latest legislation, regulations and best
practice thinking that impact us as credit professionals.
We also provide access to key support
resources and networking opportunities
both face-to-face and through social media.
Belonging to the CICM community continues
to be a focus and key benefit of CICM membership.
The research leading to our ‘Tomorrow’s
CICM’ document highlighted that members
want up-skilling in areas beyond technical,
that continuing professional development is
important, and a mentoring service would
be valuable. Building on these findings and
on the broader strategy outlined in that document,
we have been working hard to improve
and add even more value to these areas, and
we will continue to expand member resources
further in the coming months.
With the proposed rate increases we will
deliver even greater benefits to all of our
members, especially in the area of professional
development. First among these is access to
our new online learning environment covering
business and personal skills development
as well as credit-specific training, and our new
mentoring service. Both of these are scheduled
for launch early in 2018. These initiatives
are designed to make our current good services
better, and ultimately to be ‘the best’, and I
will speak more about them in future articles.
We will also be introducing clearer criteria
for all grades of membership, especially
those wanting to upgrade from Member to
Fellow, and the process will be simplified.
More information and details about this will
be shared when the feedback from the recent
pilot scheme has been captured and reviewed.
The changes I am setting out have been
widely and passionately discussed and debated
by your Executive Board, and agreed as
achieving the right balance for a modern professional
association.
Being a Member of the CICM, a Chartered
Institute, not only delivers value in name but
also in the remuneration you can demand.
Research some time ago showed that holding
membership of a professional institute
can increase lifetime earnings by £71,000,
and increase annual income by as much as 50
percent. CICM professional letters, and our
professional status, open doors to even greater
opportunities and, as we look to a future
which will include the possibility of enhanced
‘Chartered Member’ status, it is up to all of us
to keep those doors wide open both now and
in the future.
If you would like to share any thoughts
on the proposed changes or our plans for
the future, please email me anytime at
ceo@cicm.com.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 26

TRADE TALK
What now for UK traders?
Brexit negotiations are at an impasse, but what could be
next on the agenda and how can SMEs best prepare.
AUTHOR – Mike Josypenko is the Institute of Export and International Trade’s Senior Director of Special Projects.
Mike Josypenko
AS we approach the halfway
point between the Brexit
referendum decision in June
2016 and the intended date of
Brexit in March 2019, many
UK businesses are still uncertain
about UK’s future relationship with
the European Union, and what implications
it will have for them. Despite months of negotiations,
discussions on issues of trade and
customs have still not begun.
The UK Government has published a
series of position papers on various subjects,
including the UK’s future trade policy and
future customs relationships with the EU.
The document on future customs
relationships considers two main options
for a future customs relationship with the
EU, offering different degrees of ‘frictionless
trade’, one of the Government’s key goals. The
document assumes that the UK will not seek
to remain a member of the EU’s Single Market
and Customs Union, as set out in the Prime
Minister’s speech in January 2017.
In the meantime,
businesses are continuing
to plan for the worst case,
meaning tariffs for EU
trade, customs formalities
physical examinations,
and increased costs and
administration.
The first option, known as the ‘highly
streamlined customs arrangement’ between
the UK and the EU, recognises that the UK will
become a ‘third country’ when trading with
the EU, requiring both inbound and outbound
customs formalities whenever goods are
moved between the UK and the EU. It seeks to
minimise the impact of customs and security
formalities and possible delays by proposing
cooperation and data sharing between the
UK and EU, by using technology, such as
Automatic Number Plate Recognition (ANPR),
to identify and oversee in- and out-bound
freight vehicles, facilitating the removal of
customs formalities away from the border and
continuing access to transit procedures. The
impact of customs formalities would also be
reduced by providing customs simplifications,
(even including self-assessment) to trusted
traders.
The second option, known as a ‘new
customs partnership with the EU’, seeks
to replicate many of the benefits of the EU
Customs Union by seeking to align the UK’s
customs legislation directly with that of the
EU, in the expectation that this may reduce
or eliminate customs procedures. However,
this conflicts with the UK’s determination to
conduct an independent trade policy, which
could see UK customs tariffs diverge from
those of the EU. The report gives little detail
on how the overall proposal might work.
So how have businesses reacted to these
options? At first glance the second option may
seem more inviting, as it offers a scenario
that is closer to the current free movement
of goods without customs. However, the
paper is lacking in detail on how it could
be implemented, and many observers are
sceptical about whether it is achievable, given
the relative positions of the UK and EU and
the current stage of negotiations. The first
option, even with the best possible outcome,
will mean increased customs administration
and costs for all businesses trading with the
EU, and will bring many tens of thousands
of companies – including many SMEs – into
contact with customs procedures for the first
time.
It should also be remembered that the
EU has not even begun to consider these
proposals, and there seems little prospect
of any final agreement before the final days
of the negotiation period, if at all. In the
meantime, businesses are continuing to plan
for the worst case, meaning tariffs for EU trade,
customs formalities physical examinations,
and increased costs and administration.
Businesses should also seriously consider the
option of applying for Authorised Economic
Operator (AEO) status as soon as possible, as
it seems highly likely that this will become a
significant step towards obtaining customs
simplifications, which may be important in
post-Brexit trade.
The Institute of Export & International
Trade can advise businesses on preparing for
the effects of Brexit. To find out more visit
export.org.uk.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 27

INTERNATIONAL
TRADE
Monthly round-up of the latest stories
in global trade by Andrea Kirkby.
SHIFTING SANDS
EGYPT is, you might say, a
'challenged' economy;
tourist numbers have
fallen from 14.7 million
in 2010 to 4.8 million last
year, and high inflation
remains a problem, as does security.
But this year the country seems to be
beginning to get back on track. The IMF
reports that it's doing well, and the fact
that the floating Egyptian pound has
halved against the dollar has helped
the country by relaxing the pressure on
foreign exchange reserves. Credendo
has upgraded the country's political
risk, and the stock exchange has
become a regional hotspot with several
large IPOs planned.
Oil and gas is benefiting from a
significant amount of foreign direct
investment, and remains a key
opportunity for exporters. But there's
also a huge amount of money headed
for renewables – the European Bank
for Reconstruction and Development
(EBRD) is spearheading a £1 billion
investment in the sector.
Infrastructure, education and retail
are also big markets – retail is
recovering fast with annual growth
forecast at ten percent. Even better
for UK exporters of consumer goods,
supermarkets and chains are making
an impact on what had been a very
fragmented market of tiny traditional
shops.
But watch out. Getting paid can be
an issue – and the Egyptian pound isn't
the world's strongest currency!
POLITICAL risk is a nasty thing. Political
risk used to be something that affected
emerging markets – Africa, South-East
Asia, the Balkans, the Stans, Latin America.
Europe, the US and Canada had managed to
reduce political risk to within very narrow
confines – a few points more or less on
the stock market indices, not much more.
(Even economic risks seem to have moved,
with the US and UK underperforming the
rest of the world economies according to
Coface.)
WHILE everyone's waiting to see who
will be the next head of the Fed, one thing
seems sure; the era of cheap money is
coming to end. With both US and UK
inflation surprisingly on the upside
recently, banks are likely to hike rates –
but the Fed is also starting to reduce the
size of its balance sheet. That all adds up
to a great deal of fiscal tightening – at odds
with Donald Trump, who wants to run the
THE WORLD TURNED UPSIDE DOWN
Things have changed. According to
Oxford Analytica, businesses now see
the US as the top source of political risk.
Certainty has evaporated; tough talking
about trade with China, the possibility of
pulling out of North American Free Trade
Agreement (NAFTA), possible sanctions
on Russia, and the war of words with
North Korea, could all exacerbate a tense
situation – besides a protectionist rhetoric
that could threaten world trade. At the
same time, Trump's willingness to govern
THE END OF CHEAP MONEY
economy as 'hot' as possible.
Higher rates will put pressure on the
'just about managing' businesses that
are currently managing to service their
debt, but not pay it off or improve their
balance sheets. But interest rate hikes
will also lead to currency volatility; the
dollar is likely to strengthen, and that
could worsen the US balance of payments
and lead to further protectionism on
through executive orders is creating a
nightmare situation for some sectors, as
businesses face seeing regulations change
almost overnight.
Couple that assessment with a schedule
of rising interest rates and something
says to me that we're going to see some
major currency volatility. But also, that
Europe and emerging markets are going
to be, possibly, rather easier places to do
business than the US over the next few
years.
Trump's part, or even to full scale
'currency wars' with China. So, watch
cross rates carefully; and don't get
caught out with mismatched currency
exposures.
And of course, if sterling starts
strengthening after its long bout of
weakness, there'll be some major impacts
on exporters. Hedging might not be such a
bad idea.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 28

SMES AND CREDIT INSURANCE
ACCORDING to credit management
company Nimbla, even though 89 percent
of SMEs admit to having suffered bad debt
problems, only 24 percent use trade credit
insurance. (Imagine a world in which 89
percent of us have been burgled or had a
house fire, and only 24 percent had home
insurance).
When you look at some of the trade
credit policies available, though, it's
understandable – they're designed for much
larger companies with much larger credit
management departments. So, it's good to
see Atradius launching a product aimed
at the SME market (up to £5 million
turnover). Modula Freedom has a fixed
pricing matrix, making it easier to use.
Do you think if Nimbla carries out another
survey next year, the numbers might have
changed?
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
GBP/EUR 1.1425 1.1088 Up
GBP/USD 1.3397 1.3189 Up
GBP/CHF 1.3305 1.2996 Up
GBP/AUD 1.7351 1.6986 Up
GBP/CAD 1.7135 1.6658 Down
GBP/JPY 151.658
149.224 Up
BITCOIN 2.0 ON THE HORIZON
BLOCKCHAIN – the technology that enables
cryptocurrency Bitcoin – has entered the
world of trade finance. AIG has partnered
with TradeIX to offer trade finance through
a Blockchain-based open ledger that offers
real advantages – improved transparency,
quicker transaction times, and real-time
visibility of customer terms and credit
risk.
Blockchain could also revolutionise
cross-border payments. IBM is currently
piloting crossborder cryptocurrency
payments across Asia, working with Thai,
Indonesian, Australian and Japanese banks.
It hopes to simplify transfers and move
transaction times from several days to just a
few minutes.
It's still a relatively new technology.
But there's no doubt we'll be hearing more
about it – and early adopters could benefit
from lower finance charges and better
management tools, so watch this space!
IVORY COAST COMES GOOD
AN only recently ended civil war, corruption,
an inefficient and slow court system, and
high debt servicing requirements; Cote
d'Ivoire doesn't sound a great place to do
business. The good news, though, is that it's
beginning to come good. Political stability is
allowing the Government to get to grips with
some of the country's problems, and despite
soft prices for its major exports cocoa and
coffee, it's seeing some of the fastest growth
in sub-Saharan Africa. GDP is expected
to rise at seven percent a year in the next
couple of years, with huge government
investments in infrastructure priming the
pump.
CRISIS? WHAT CRISIS?
You could be forgiven for thinking that Spain is in crisis. The Catalonian independence
referendum has thrown the continued existence of the state into doubt, even if the
declaration of independence has been 'suspended'. There's rioting in the streets, and
rumours that Spain will use emergency powers to take over control from the Catalan
authorities. But the financial markets are telling us they’re not worried. True, after the
referendum result was announced, bond yields moved up a bit – but not much. And they've
now fallen back to pre-referendum levels; the market's saying that there really isn't any more
risk than before. The credit ratings agencies haven't downgraded Spanish debt, either.
So, for the time being, it seems, you should worry more about getting pickpocketed on Las
Ramblas in Barcelona than about your Spanish receivables.
Britain already exports cars, dairy
products, and textiles to Ivory Coast, but
there are huge opportunities in other
sectors. Oil and gas and mining are
developing sectors, while the move to
secure greater value added from agricultural
products before exporting is seeing
investment going into agribusiness and
food processing.
Fly in the ointment? You may find
more Ivorians speak French than English,
but that's not a major problem. But their
currency, the CFA Franc, is tied to the
euro – so Brexit worries could make it
volatile.
EXPORTING IS IN
FASHION!
IT'S nice to know that British fashion is doing
well in the export game – including exporting to
Paris, the native city of haute couture. 2016 saw
exports hit a 21-year high, up eight percent on
the previous year to £10.7 billion. Burberry and
Mulberry are well-known, but smaller houses
and young designers are doing their bit – for
instance Baia Bags, which started in a spare
bedroom and is now exploring international
markets.
At the same time, traditional family
businesses like cashmere house Johnstons of
Elgin has had a makeover to appeal to today's
markets – Johnstons has worked with Vivienne
Westwood and Kylie's designer Christopher
Kane, and now has offices in Tokyo, Dusseldorf,
Paris and London.
Now the Department of International Trade
has set up a programme with the British Fashion
Council to target international buyers and match
them up with British designers. Let's hope our
exporters set another record this year.
NO MORE JUNK!
PORTUGAL has finally won back the investment
grade credit rating it lost in 2012 after accepting
an EU/IMF bailout. Its bonds aren't junk any
more – and to celebrate, they staged a massive
rally, with the yield dipping to 2.5 percent. (At the
height of the credit crunch, yields on Portuguese
bonds were over 16 percent.)
Portugal still has an horrendous pile of
Government debt, but the economy is growing
at two percent, unemployment has been cut,
and the budget deficit is being tackled. The UK
is the fourth largest investor in the country, and
the sixth largest exporter to Portugal, so there's
a strong relationship to build on, particularly in
technology – areas such as fintech, environmental
controls, and life sciences. If the country has really
turned the corner, this could be a good time to
start exporting – or to start giving Portuguese
customers a bit more leeway on credit.
Mind you, it's only S&P that's improved its rating.
Moody's and Fitch remain, so far, unconvinced – or
are they preparing their own upgrades?
The Recognised Standard / www.cicm.com / December 2017 / PAGE 29

INTERVIEW
FECMA Country Profile
Sean Feast speaks to Ludo Theunissen at the Belgian
Instituut voor Kredietmanagement – IvKM.
BELGIUM, officially the
Kingdom of Belgium, is a
sovereign state in Western
Europe. It is a small, densely
populated country which
covers an area of 11,787
sq miles and has a population of about 11
million people.
Belgium has two main linguistic groups:
the Dutch-speaking, mostly Flemish
community, which constitutes about 59
percent of the population, and the Frenchspeaking,
mostly Walloon population, which
comprises about 40 percent of all Belgians.
Additionally, there is a small one percent
group of German speakers who live in the
East Cantons.
Belgium is a federal constitutional
monarchy with a parliamentary system of
governance. It is divided into three regions
and three communities, that exist next to
each other. Its two largest regions are the
Dutch-speaking region of Flanders in the
north and the mostly French-speaking
southern part of the Wallonia region. The
Brussels-Capital Region is an officially
bilingual (French and Dutch) enclave within
the Flemish Region. A German-speaking
Community exists in eastern Wallonia.
Belgium's linguistic diversity and related
political conflicts are reflected in its political
history and complex system of governance,
made up of six different governments.
Belgium is one of the six founding
countries of the European Union and
hosts the official seats of the European
Commission, the Council of the European
Union, and the European Council, as well
as a seat of the European Parliament in the
country's capital, Brussels. Belgium is also a
founding member of the Eurozone, NATO,
OECD and WTO, and a part of the trilateral
Benelux Union. Belgium is a developed
country, with an advanced high-income
economy and is categorised as ‘very high’ in
the Human Development Index.
Belgium has a globalised economy and is
at the heart of a highly industrialised region
– the world's 15th largest trading nation
in 2007. In January, it had a population
of 11,303,528, and last year an estimated
nominal GDP of $470 billion. Belgium is
the world leader in terms of export per
capita and can justifiably call itself the
'world's largest exporter'; its main exports
are machinery and equipment, chemicals,
finished diamonds, metals and metal
products, and foodstuffs.
Ludo Theunissen
How many members do you have?
We currently have 95.
How is the Intituut run?
We don’t have a branch network, as
such, because it is only a small country,
but every year we have a members’
conference, and throughout the year
we organise a series of seminars and
workshops. We also have an annual
Credit Manager of the Year Award.
We don’t, however, run any formal
qualifications.
What is Belgium’s cultural attitude to
late payment?
Professional credit management is only
really evident within larger business,
and many of the smaller companies
appear not so aware of how critical
professional credit management can be.
In terms of late payment, many smaller
companies simply ‘accept’ that they will
be paid late. Statistics for the average
DSO for the country vary depending on
the source, but are anything from 45 to
52 days.
Are there any specific laws to protect
against late payment?
None that are specific to Belgium,
beyond the EU Directive on late
payment which is EU wide. There are,
however, a number of private initiatives
underway to create better awareness of
the issue and the regulations.
What support do you provide to fellow
FECMA members?
We collaborate closely with our
colleagues in the Nederlandse
Vereniging voor Credit Management
(VCVM) in the Netherlands and the
Bundesverband Credit Management
(BvCM) in Germany. We also publish our
own magazine.
Contacts for further information:
Ludo Theunissen
E: ludo.theunissen@ivkm.be
The Recognised Standard / www.cicm.com / December 2017 / PAGE 30

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The Recognised Standard / www.cicm.com / December 2017 / PAGE 31
Follow us:

From the
ARCHIVE
Credit Management
Journal from exactly
45 years ago.
In an age of AI and the talk of
robots, here's an article from
72
19
the Credit Management
archives. Enjoy this snapshot
from 45 years ago.
MICROFILM
Computer file information can be output
directly on to microfilm and this can
be a very useful method of holding
information. The microfilm can be
coded so that particular items can be
automatically selected for retrieval and
display on the microfilm reader.
THE COMPUTER
The computer is basically able to operate at very high
speeds, and therefore handle large volumes of data and
make a great number of detailed checks and comparisons
of the data it is handling.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 32

The Recognised Standard / www.cicm.com / December 2017 / PAGE 33

HAYS – SALARY GUIDE
RISING STOCK
How credit managers are seeing salary increases
and optimism prevail over Brexit uncertainty.
AUTHOR – Karen Young FCICM is Director of Hays Credit Management
THE credit management
market remains positive,
with employers seeking
talented individuals and
candidates looking for new
and exciting opportunities.
As we move through Brexit proceedings,
most organisations are keeping the
mantra of ‘business as usual’ even while
the outcome of the referendum remains
uncertain.
Employers, however need to work
hard to attract talent and businesses
will find that if they are offering salaries
below market rate, coupled with a noncompetitive
choice of benefits, they will
struggle to recruit against the current
outlook.
SALARY INCREASES
Pay for credit professionals increased
by 2.4 percent across 2017, significantly
higher than the overall increase seen for
finance professionals at 1.4 percent and
higher than the overall UK salary increase
(1.8 percent). The findings from the ‘Hays
UK Salary & Recruiting Trends’ guide
show that the average salary for credit
professionals recruited by Hays Credit
Management within the last 12 months was
£37,292, 2.4 percent up from 2016.
Although the average increase of
salaries for credit professionals is lower
than the data last year (3.7 percent), the
majority are still enjoying above average
salary increases. However, 53 percent of
credit professionals still aren’t satisfied
with their salaries this year, and 48 percent
are hoping for a pay increase in the coming
year.
Similar to our findings last year, salary
increases were not isolated to London,
with a number of regions receiving above
average increases to the rate of pay in the
finance profession. Credit managers in the
East of England for example saw a nine
percent increase in pay, followed by a six
percent increase for the same role in the
North West, and five percent in the South
East. Credit controllers in Northern Ireland
received a five percent increase, as well as
controllers in the East Midlands.
For credit professionals, there is a
positive outlook and demand especially
within the permanent market. In London
particularly, candidates with specific
industry knowledge, such as legal or
property are in demand as employers look
to hire experienced talent who can hit
the ground running. Language skills, and
good technical acumen are also in demand
across the UK, in particular in areas where
there is a concentration of shared service
centres, so candidates with this potential
can expect good opportunities and offers.
From a regional perspective, in the
South we’ve witnessed a rise in employers
looking to hire risk or credit analysts
specifically. In the North West, there
has been a notable recent increase in
roles available for senior professionals,
including head of credit, credit risk
manager and credit team leader
opportunities.
EMPLOYER OPTIMISM
Positively, the majority (95 percent) of
finance employers are optimistic that
their organisation’s activity levels will
either increase or stay the same. Our
results indicate that those predicting
growth is lower than last year, at just
over half (52 percent) compared to 58
percent, however this is recognised due
caution in light of political and economic
uncertainty. Similarly, fewer employers of
finance professionals are looking to hire
(57 percent) over the next year, compared
to the UK average (71 percent).
Skills shortages remain challenging
for employers, with the majority saying
they have experienced either moderate
or severe shortages when recruiting this
year. Nearly two-thirds of employers
believe that competition for job roles is
the main cause of shortages in the sector,
followed by a lack of talent pipeline.
Worryingly, skills shortages are impacting
more than just productivity as employers
reported significant impacts on employee
morale, business development, expansion
and profit.
CAREER PROGRESSION
There is cause for concern for employers
as credit professionals are worried at the
lack of career progression and are willing
to move roles if they feel they aren’t
progressing; two-thirds said they felt
there was no scope for progression within
their current organisation, significantly
higher than finance professionals overall
at 57 percent.
Some 49 percent of credit professionals
are also planning to move roles within the
next 12 months, with a third saying the
main reason for doing so would be a lack
of future opportunities in their current
organisation.
Employers are warned that if they don’t
start to invest sufficiently in promoting
clear career paths for credit professionals,
as well as opportunities for training, they
are unlikely to attract and retain the talent
they need.
Employers who want to attract the right
talent should expect to offer salaries at a
market rate or above, as well as generous
benefits and career development or
training opportunities. As more and
more job and person specifications
include a request for candidates who have
studied or are studying for their CICM
qualifications, those employers who
actually offer a study support package as
an element of the overall package, can
certainly help themselves stand out.
Counter offers are commonplace
as employers look to retain talent, as
is the likelihood of someone receiving
multiple offers, particularly in London, so
employers recruiting should expect this
during the hiring process and act quickly.
Employers should also ensure that
opportunities for personal development
and career progression have been clearly
and carefully positioned all the way
through the interview stages.
Hays UK Salary and
Recruiting Trends 2018
In early Summer 2017 Hays surveyed
over 100 employees working in credit,
and 1,089 accountancy and finance
employers.
Salary data has been compiled using
information gathered during 2017
from Hays offices across the UK, and
is based on job listings, job offers and
candidate registrations.
hays.co.uk/salary-guide
The Recognised Standard / www.cicm.com / December 2017 / PAGE 34

HAYS – SALARY GUIDE
CREDIT SALARIES UK2018
Credit
Controller
Senior
Credit Controller
Credit Risk
Analyst
Credit Control
Supervisor
Credit
Manager
Group Credit Manager
/ Head of Credit
Credit
Director
Region 2018 2018 2018 2018 2018 2018 2018
East of England £24,500 £28,000 £40,000 £30,000 £38,000 £55,000 £70,000
London £26,500 £32,000 £50,000 £36,000 £55,000 £72,000 £95,000
East Midlands £22,000 £25,000 £40,000 £29,000 £38,000 £58,000 £75,000
West Midlands £23,000 £25,000 £40,000 £30,000 £48,000 £65,000 £85,000
North East England £20,500 £24,000 £30,000 £26,000 £36,000 £58,000 £70,000
North West England £22,000 £25,000 £40,000 £28,000 £37,000 £55,000 £75,000
Northern Ireland £22,000 £25,000 £30,000 £27,000 £40,000 £45,000 £70,000
Scotland £20,500 £25,000 £28,000 £27,500 £39,000 £50,000 £65,000
South East England £26,000 £30,000 £40,000 £33,000 £42,000 £65,000 £85,000
South West England £24,500 £26,000 £42,000 £27,000 £38,000 £55,000 £70,000
Wales £20,000 £23,000 £30,000 £27,000 £36,000 £52,000 £65,000
Yorkshire and the Humber £21,000 £24,000 £30,000 £27,000 £36,000 £57,000 £70,000
National Average 2018 £22,708 £26,000 £36,667 £28,958 £40,250 £57,250 £74,583
The Recognised Standard / www.cicm.com / December 2017 / PAGE 35

OPINION
TOYS R BUST
In an article adapted from a recent CICM Breakfast
Briefing, Bodhi Ganguli examines the recent capitulation
of Toys R Us and the importance of global risk
management.
AUTHOR – Bodhi Ganguli is Lead Economist at Dun & Bradstreet.
IN September 2017, Toys R Us
filed for bankruptcy in the
United States and Canada – and
the news was all over the press.
It appeared that the iconic toy
brand that many of us grew
up with was set to become the latest
retailer consigned to the history books.
As a consumer, the loss of a well-known
business may be saddening, but as a
business it could be deeply concerning.
Naturally, for the suppliers and creditors
of Toys R Us, the bankruptcy could
represent a disaster. But for others,
it offers important lessons about the
current business environment and its lack
of certainty.
In these unpredictable times,
understanding risk is more important
than ever before. But it’s not enough just
to look within your own organisation,
or even at your closest trading partners.
All business leaders must take a 360
degree, global view of risk. Keeping up
with country as well as credit risk is
key to ensuring long-term success. But
what is the current global outlook – and
how can businesses navigate current
developments at a time when markets are
changing faster than ever before.
A CRACKED GLOBE
The truth is that at present we are
operating in a highly complex global
environment, in the US, the UK and
beyond. Many of the assumptions that we
have been working with for many years
are now changing, particularly with the
current swing towards deglobalisation.
In the last couple of years, there have
been indications of anti-global sentiment
in several economies, in an apparent
backlash against recent moves for
connectivity. An early manifestation came
in the Brexit vote of 2016, followed by
the widely unexpected victory of Donald
Trump in the US Presidential election.
But where has this wave come from?
Globalisation was always likely to create
winners and losers, but it was thought
that the winners would compensate and
pass on prosperity to ‘losing’ parties.
However, that’s not necessarily come
to fruition. Take the example of the US
manufacturing industry. In many areas,
production has been moved overseas
and there has been no reskilling or
reinvestment in the local community,
creating pockets of poverty. These are
the hidden ripples of globalisation, that
are sparking deglobalising sentiment,
unpredictable political environments and
increased uncertainty.
According to Dun & Bradstreet’s ‘Global
Risk Matrix’, we’re seeing a deteriorating
risk outlook for cross-border business
worldwide. Many of the systemic risks
stem from the US. This is not because
it is an unstable economy, but because
there is a lack of clear fiscal policy and
indeed a lack of clear political direction at
present. And all of this uncertainty is bad
for business.
THE DOMINO EFFECT
The consequences of this uncertain
environment are felt around the
world. Despite anti-global sentiments,
businesses are more connected than
ever before, with global supply chains
and global consumers. Everything is
interlinked, from politics and cyberspace
to economies. As a result, global risk
has evolved, with multifaceted factors
impacting business worldwide like
dominoes. Perhaps counterintuitively,
the globalised economy means that
deglobalising forces represent a bigger
threat than ever before.
All in all, this is holding businesses
back. Although this should be the best
time ever for the global economy, we’re
being hampered by uncertainty and
seem to be unable to move beyond a
mediocre two to three percent global
growth. Investor, consumer and business
sentiment has waned; the confidence that
takes seconds to fall can take months to
grow again – and across the world, we’re
seeing this unsurety hampering global
growth.
ON TOP OF THE WORLD
To ensure ongoing success in this
highly connected, volatile environment,
businesses must look beyond their own
walls and take a global view of risk. It has
never been more important to understand
the markets in which they are buying,
selling or investing and anticipate and
respond to challenges as they arise.
Businesses can draw on the latest insights
on country risk, which are based on the
credit environment, supply environment,
market environment and the political
environment, and thus plan accordingly.
The bankruptcy of Toys R Us is a
reflection of the complexity of the
current trading environment. In itself,
the company’s failure does not indicate
a problem in the US or even with the
strength of the retail market. People are
still buying toys, and the US economy
is still driven by retail consumption. It
is instead an indicator of overarching
trends: how the retail landscape is shifting
with the rise of online platforms such
as Amazon, the risk that every industry
faces from digital disruption, shifting
consumer demands and how quickly
markets are changing at present.
Across the board, we operate in a
highly complex global environment that
is constantly evolving. Keeping up with
country risk will help companies ensure
their prosperity and continued relevance
for the future.
For further insight on the Toys
R Us bankruptcy, visit dnb.co.uk/
perspectives/finance-credit-risk/toys-rus-bankruptcy-business-impact.html
The Recognised Standard / www.cicm.com / December 2017 / PAGE 36

OPINION
AUTHOR – BODHI GANGULI
ANALYSIS
Business Volumes
The volume of active businesses in this industry is
very small. This is around 1,700 businesses.
The bankruptcy of Toys
R Us is a reflection of the
complexity of the current
trading environment.
In itself, the company’s
failure does not indicate
a problem in the US or
even with the strength of
the retail market.
OOB & Business Failure By Year
The favourable out of business rate increased in
2016 from the previous year. In 2017 the out of
business rate remains at the same level as in the
previous year. The business failures remain stable
over the last three years. Although the percentage
of business failures went up from 2016 to 2017, the
volume is not significant.
Business Size
Some 85 percent of the businesses are micro.
Only a small percentage of businesses (five
percent) are large.
Financial Information
The number of business with financials is
approximately 600 (35 percent), based on the most
recent financial information. Total Assets, on
average, have experienced an increase in the last
three years as well as the total debt. The increase
in total debt has been lower than that of the total
assets.
The current ratio indicates that the industry
has sufficient short term assets to cover its
short term debts. However over the last three
years the current ratio has been decreasing.
The indebtedness has been reducing over
the time period analysed. The portion of the
companies' assets that are financed by debt has
been reducing. The debt to equity ratio shows a
decreasing trend over the last three years.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 37

PAYMENT TRENDS
Better than average
The latest monthly business to business payment
performance statistics.
AUTHOR – Jason Braidwood FCICM(Grad), Head of Credit and Collections at Creditsafe Business Solutions
WE do not learn from
experience…we learn
from reflecting on experience,”
said John
Dewey, the American
philosopher, psychologist
and educational reformer. It’s a
hard statement to challenge and there is
no doubt that reflecting on previous efforts
can often generate the most improvement
in our problem-solving capacities and ability
to achieve desired goals. Under cold
bright lights, however, reflection can also
mean we realise that little has changed or
improved over time.
My apologies for kicking-off this month’s
payment performance figures on quite
such a glum note, but unfortunately this is
true of where we currently stand in terms
of the UK’s payment practices. Reflecting
on this time 12 months ago, we can see that
the average number of days beyond terms
(DBT) has increased by 11 percent to over
13 days, which is also the highest average
monthly DBT since January 2017.
We’re at somewhat of a standstill
compared to a year ago, which is not
entirely surprising when you reflect on the
business uncertainty that has shaped the
UK economy in 2017.
On a happier note, payment performance
figures year-on-year are showing signs of
improvement. We have been tracking this
data since 2014, when the average DBT
across all sectors stood at 19.6 days. In
2015, this dropped to 17.6 days, and again
a decrease in 2016 to 14.9 days. We’ll hold
back from revealing the 2017 average until
we reach the end of the year, but I think you
can take an educated guess based on the
trend we’ve seen over the last few years.
Sometimes, reflecting on the bigger
picture brings about a more satisfying
outcome than looking at the detail, but it
is the detail that this column must focus
on, so here’s a closer look at the sector and
geographical trends in the UK’s payment
performance and practices.
INDUSTRY SPOTLIGHT
Some 85 percent of the industries we
monitor saw an increase in their monthly
DBT, which is up significantly from
last month when 60 percent of sectors
increased their DBT by some margin. The
worst offending industry is the Transport
and Storage sector, which saw a jump
from a DBT score of 8.7 last month to 13.6.
Interestingly, this sector saw the largest
percentage increase (up 6.7 percent) in
employment figures, according to the UK
Business Register and Employment Survey,
so the sector isn’t experiencing a squeeze on
staff recruitment. Here’s hoping a squeeze
on poor payment follows suit next month.
After two consecutive months of an
improving DBT score, the Financial and
Insurance industry has slipped back to old
habits and returned to a DBT of 13.6, a 46
percent increase. It will be interesting to see
how the rise in inflation and interest rates
impact not only the financial sector, but
all of the 20 sectors that we monitor. Late
commercial payments will be hit by the rise
in statutory interest rates, meaning that
prompter payments and recovering debt in
business to business transactions will be
even more critical. The interest rate rise will
also give SMEs more leverage when chasing
late payments, but there is still some way to
go and efforts need to be improved to tackle
late payment more aggressively.
It is an about-turn for the Professional
and Scientific sector – the industry had
performed poorly with a DBT score that
had risen by over nine days to 17.7. The
drop is still some way off the sector’s best
for the year of 8.3 days, but a drop to 14.3
days in comparison is still a significant
achievement, and puts it at the top of the
getting better list.
In line with our mood for reflection, it’s
interesting to see that seven sectors match
their DBT score with the corresponding
month in 2016. In some respects, and
given the market volatility, it’s some sort of
achievement to see like-for-like scores. On
the flip side, this lack of change indicates
an endemic response to poor payment
practices, which is concerning.
REGIONAL SPOTLIGHT
In a strange twist, London is the only
region to see an improvement in payment
performance – a very marginal 0.6 decrease,
but a fall in the right direction nonetheless.
Every other region saw an increase – for
some, such as Scotland and the South East,
the rise in DBT was minor, for others, it is
quite a staggering change.
Wales and the East Midlands both
saw days before payment rise by over five
days, placing their DBT at 16 and 15 days
respectively. For both regions, this is their
worst performance of the year to date.
It is difficult to assess the reason behind
this sudden change – both regions are
comparatively smaller than say, the London
market, with potentially more fragmented
business sectors. This may mean that
delayed or late payment relatively higher,
and the ability to demand timely payment
is relatively limited. These are assumptions,
but what we do know is that based on
past trends, neither of these regions has a
history of late payment as poor as it is – so
we could be looking at an anomaly.
Perhaps a little early, but it’s interesting
to reflect on which regions have performed
the best overall for the year to date. The
competition is fierce between the South
West, with an annual average DBT of 10.6,
and East Anglia with an average DBT of
10.9. It’s all to play for!
The Recognised Standard / www.cicm.com / December 2017 / PAGE 38

South West
PAYMENT TRENDS
Sector
Scotland
11.7 DBT
Getting Better
Getting Worse
Professsional &
Scientific
-3.4
Transportation
& Storage
+4.9
Public
Administration
-2.3
Business Admin
& Support
+4.4
Hospitality
-1.6
Financial &
Insurance
+4.3
Manufacturing
+0.7
Business
from Home
+3.9
Mining &
Quarrying
+0.8
International
Bodies
+3.9
Northern
Ireland
15.7 DBT
+1.8 North West
+5.2 Wales
Top Five Prompter Payers
+2.5 Yorkshire & Humberside
+3.3 East Anglia
+3.4
+4.3
Sector
Wales
16.7 DBT
North West
13.5 DBT
Northern Ireland
South West
Top Five Prompter Payers October 17 Change from September 17
Agriculture, Forestry & Fishing 9.5 1.0
Education 10.4 1.7
Yorkshire Wholesale & & Retail Trade 11.3 1.9
Humberside
Entertainment 11.4 2.5
13.1 Water DBT & Waste 12.1 3.1
West
Midlands
11.9 DBT
East
Midlands
15.2 DBT
East Anglia
11.7 DBT
Bottom Five Poorest Payers
Sector In line with our mood for
reflection, it’s interesting
Region
to see that seven sectors
match their DBT score with
the corresponding Professsional & Public month in
Scientific Administration Hospitality
2016. Getting Better In some -3.4
Getting
respects, -2.3
Better
and -1.6
London -0.6
given the market Transportation volatility,
Business Admin
Getting Worse
Bottom Five Poorest Payers October 17 Change from
Business from Home 15.9 3.9
Energy Supply 15.9 2.2
Business Admin & Support 15.7 4.4
Health & Social 14.3 2.1
Professional and Scientific 14.3 -3.4
& Storage & Support
+0.2 Scotland
it’s some sort of +4.9 achievement
+4.4 +4.3
London
+0.8 South East
Region
14.6 to see like-for-like scores.
DBT
+1.2 West Midlands
Professsional & Public South East
Mining &
Scientific Administration Hospitality Manufacturing Quarrying
South West
13.4
12.8
Region
DBT
+1.8 North West
Getting Better -3.4 -2.3 -1.6 +0.7 +0.8
DBT
Top Five Prompter Payers +2.5 Bottom F
Getting Better
Yorkshire & Humberside
Transportation Business Admin Financial Top & Five Prompter Business Payers International
Getting Worse
October 17 Change from September 17 Bottom Five P
& Storage & Support
Insurance from Home
Bodies
London -0.6
+3.3 East Anglia
Agriculture, Forestry & Fishing 9.5 1.0
Business fro
+4.9 +4.4 +4.3Education +3.9 +3.9
10.4 1.7
Energy Sup
+0.2 Scotland
+3.4 Northern Ireland
Wholesale & Retail Trade 11.3 1.9
Business Ad
Scotland
Change on
+0.8
September 17
Entertainment 11.4 2.5
Health & So
ottom Five Poorest Payers
South East
+4.3 South
11.7
West
DBT
Water & Waste 12.1 3.1
Professiona
Getting Better +1.2 West Midlands
+5.2 Wales
Sector
Region October 17 Top Change Five Prompter from September Payers +1.8 North 17 West
Bottom Five Poorest +5.3 PayersEast Midlands
London Top Five -0.6 Prompter Payers October 17 Change from September 17 Bottom Five Poorest Payers Getting Worse October 17 Change from September 17
Wales 16.7 5.2
+2.5 Yorkshire & Humberside
Agriculture, Forestry & Fishing 9.5 1.0
Business from Home 15.9 3.9
Northern Ireland 15.7 Education
+0.2 3.4
10.4 1.7
Energy Supply 15.9 2.2
Scotland
+3.3 East Anglia
Northern
Ireland
Wholesale & Retail Trade 11.3 1.9
Business Admin & Support 15.7 15.7 4.4
DBT
East Midlands 15.2 Entertainment 5.3
+3.4 11.4 Northern 2.5Ireland
North West Yorkshire &
Health & Social 14.3 2.1 Scotland
13.5 Humberside
DBT
London 14.6 +0.8Water -0.6 South & Waste East 12.1 3.1
Professional and Scientific 14.3 -3.4 11.713.1 DBT
DBT
+4.3 South West
North West 13.5 1.8
+5.2 Wales
East
+1.2 West Midlands
Midlands
15.2 DBT
+5.3 East Midlands
Top Five Prompter Payers
Bottom
Getting Worse
East Anglia
Top Five Prompter Payers
Region October 17 Change from September 17
East Anglia 11.7 3.3
Scotland 11.7 0.2
West Midlands 11.9 1.2
+5.3
South East West Midlands12.8 4.3
Yorkshire and Humberside
Getting Worse
13.1 2.5
Region
West
Midlands
11.9 DBT
Financial &
Insurance
Manufacturing
+0.7
16.7 DBT
11.7 DBT
Region October 17 Change from September 17 Region
London
East Anglia 11.7 3.3
14.6 DBT
Wales
Scotland 11.7 0.2
South Northern
East
South West
13.4 DBT
West Midlands Northern 11.9 1.2
East Midla
12.8 DBT
South West Ireland 12.8 4.3
London
Yorkshire and Humberside 15.7 13.1 DBT 2.5
North West
North
Yorks
We
13.5 Humbe
Change on September DBT 17
13.1
Bottom Five Poorest Payers
Wales
Region October 17 Change from September 17
Wales 16.7 5.2
Northern Ireland 15.7 3.4
East Midlands 15.2 5.3
London 14.6 -0.6
North West 13.5 1.8
Wales
16.7 DBT
West
Midlands
11.9 DBT
B
fro
+
The Recognised Standard / www.cicm.com / December 2017 / PAGE 39
1

LEGAL MATTERS
Back to the drawing board
James Perry examines Lord Justice Jackson's
fixed-costs proposals and how they might be avoided for
debt recovery claims.
DD +44 113 261 6533 E james.perry@dwf.law W www.dwf.law/recover
James Perry
Director – Technical Recoveries
AS Vice-Chair of the Civil
Litigation Committee of the
Law Society I was fortunate
enough to ask Lord Justice
Jackson a question at our
Autumn Conference. As
you may be aware, Lord Justice Jackson has
been the architect of many Court reforms
in recent years and is currently proposing
a system of fixed-fees for certain types of
claim. One of those are defended debt
claims, therefore credit managers need to
keep a close eye on these reforms should
they eventually be adopted. I wrote about
this previously, and since then, I have been
scrutinising the proposals. The question I
asked Lord Justice Jackson has attracted
media attention.
My question was as follows: ‘A very
high percentage of the claims that fall into
your fixed-fee regime will be debt recovery
or contractual money claims. In your
report, you pay regard to this and confirm
where there is a contractual entitlement
to cover your costs whatever the claim
value your fixed-fee regime will not apply.
Consequently, how can you convince me
today that, because many businesses are
likely to change their terms to avoid your
fixed-fee regime, your proposals will not
lessen the judiciary's grip on the question
of proportionality, and your proposals will
not unintentionally exacerbate the very
problem you are trying to resolve?’
Some 80 percent plus of all claims
encompassed by this proposed fixedcosts
extension will be debt recovery or
contractual money claims. This means
that 80 percent plus of Jackson's proposals
could be sidestepped by businesses
having a simple clause in their contracts
for the recovery of their legal costs.
For credit managers, an indemnity
clause for costs in your contracts gives
you a greater chance of making a better
recovery. It also raises the point that if
there's a better way for credit managers
to recover their legal costs, then failing
to take that opportunity would be foolish.
At DWF LLP we offer a fixed-fee service
where we provide you with a suitable
clause for your contracts. For further
details email Neil Jinks neil.jinks@dwf.
law.
Jackson explained primary legislation
would be required to change the law
so that contractual clauses could not
sidestep his proposals. Importantly, he
stated that this would involve nothing less
than a Law Commission report. He also
didn't think Parliament will allocate time
to civil justice reform of this nature. So, it
seems businesses that provide credit will
be able to take the benefit of an indemnity
clause for a long time to come.
Jackson also continued that though
the problem of having a contractual term
to recover costs is not widespread; if it
were there would be a strong case for
legislation.
I disagree. Firstly, I don't believe
we know exactly how widespread the
‘problem’ is. I do know it should already
be widespread though because Credit
Managers should be taking the benefit of
this clause.
Secondly, I don't agree it's actually a
‘problem’ at all. Save for limited situations
concerning consumers, the actual value
of the bargain parties enter into is not
usually of any concern to a judge for good
reason – and it certainly shouldn't be
changed just to suit a system of arbitrary
fixed-costs. A fundamental change of
contract law, at any point, would seriously
damage our economy and push access to
justice further away from claimants.
Ultimately, if the reforms are adopted,
Jackson's fixed-costs will drive lawyers
and businesses to change their terms and
I cannot see anything wrong with this. In
over 80 percent of claims, the very thing
Jackson has been trying to avoid would
then be exacerbated because there would
be more time spent considering bills of
costs; but at least you would recover more
than you will under a fixed-fee regime.
Under a fixed-fee regime it's likely there
will be a shortfall on costs or you will be
overcharged if a stage fee is triggered, and
the case is settled quickly.
The key aim of Jackson's proposals is
to reduce the cost of litigation, which will
take the pressure of dealing with costs
away from the courts. He aims to also
simplify the costs process, improve access
to justice and improve proportionality.
However, these reforms could actually
increase the amount of court time spent
dealing with costs – meaning the status
quo regarding access to justice and the
question of proportionality prevails for
this type of case. If indemnity cost clauses
become the norm for contract claims,
then the judiciary could find itself back at
square one.
Without a cork to plug this leak in
Jackson's fixed-costs dam, his proposals
for contractual claims might never have
to be applied.
James Perry is a Director at DWF LLP
and Vice-Chair of the Law Society's Civil
Litigation Committee. A version of this
article first appeared in the Law Gazette
(lawgazette.co.uk) on 26 October 2017.
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 / December 2017 / PAGE 40

THE RECOGNISED
STANDARD
CICM British Credit Awards 2018
8 February 2018
Royal Lancaster, London
The shortlist has just been announced
Book your table today!
The entries are in... and the shortlist has just
been announced! To see who made the shortlist
for the 2018 awards, please visit:
www.cicmbritishcreditawards.com
Don’t miss this fantastic evening of networking and
celebration of all of the incredible achievements
across the credit and collections community, and
with a fabulous line up of entertainment it’s the one
event in the credit calendar that’s not to be missed!
The CICM British Credit Awards is central to our
ethos, rewarding outstanding achievement and
innovation shown by individuals and organisations.
BOOK YOUR TABLES TODAY AND
JOIN US ON THE NIGHT WHERE ALL
WINNERS WILL BE REVEALED
www.cicmbritishcreditawards.com
Table bookings
Please contact Natasha Witter on:
T: 020 7484 9876
E: natasha.witter@incisivemedia.com
HEADLINE SPONSOR:
SPONSORS:
The Recognised Standard / www.cicm.com / December 2017 / PAGE 41

OPINION
Making the
magic happen
New trends in cash allocation and finance, and the
impact they can have on a business’ performance.
AUTHOR – Chris Sanders FCICM is Head of Accreditation – CICMQ
ELEMENTS of the ‘Order to
Cash’ process are a mystery
to many people. Generally,
people understand the
concept of credit control,
but tend to simplify this
into ‘you guys are the debt collectors
right?’ But things like billing are never
truly understood ; it is as though orders
enter a big cloud with ‘then magic
happens’ written on it, and hey-presto,
out pops an invoice.
Other areas of mystery include the
elements that sit at the end of the process,
for example cash allocation, and some
of the more interesting new finance
arrangements that organisations use
to manage net working capital. These
things may seem unrelated, but if the
processes that you have as a business are
not managed properly the effects can be
catastrophic.
A couple of years ago I was running
a workshop with a large cross-functional
team from a UK business. This group
was essentially a shared service centre
with team members involved in order
management, customer service, billing,
credit control, collections and cash
allocation. The workshop was to find
ways to improve cashflow, and after about
30 minutes the cash allocators asked why
they were there, given that this was a
‘collections issue’ and nothing to do with
them.
So, I asked what they think happens
if they stop allocating cash? Surprisingly,
not many of the cash allocators
could answer. It was the collectors and
the credit controllers who understood
their importance to the overall process.
They thought after about three days
cash collection activity would have to
stop. At this point in the discussions, the
cash allocators became more engaged.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 42

OPINION
AUTHOR – CHRIS SANDERS
Chris Sanders
If any proof were needed that this was the
case, one multinational collections function
was brought to its knees a few years ago for
that reason – taking months to recover not
only equilibrium in its sales ledger, but also
the reputational damage caused with customers.
Trust, or lack of it, in credit management
can take a long while to recover.
Cash allocation is so much more than
a transactional process that can just be offshored
or outsourced without too much
thought, and unless you are an operational
credit manager, it is often difficult to comprehend.
It is usually the ‘finance’ people that
do the defining of what can and cannot, or
should and should not, be offshored and outsourced,
and as credit managers – how many
poor decisions do we see? It is therefore very
good to know that such critical processes are
now gaining even greater recognition, not
least in the level of effort organisations are
putting into developing new and innovative
software solutions. As the average Enterprise
Resource Planning (ERP) system only has a 54
percent auto allocation rate, it doesn’t take a
rocket scientist to figure out what a 90 percent
auto allocation rate will do to a business.
To reach those levels takes a credit manager!
PAYMENT HABITS
Capturing data on payment habits is becoming
critical; as I have mentioned before, ‘you
can automate anything where there is a predictable
outcome’, but you only know what
the outcomes are if you are gathering the
data in the first place. Again, this information
is becoming recognised as the driver for
collections activity. This sort of automation
percentage now makes us question whether
the accountants made the right decision to
migrate this activity offshore, other than to
make it someone else’s problem. These offshore/outsourcers
are now looking for ways
to combat this shift in thinking by creating
teams or implementing new ways to deliver
automated solutions. Trust me, when these
guys do this, you know that there is something
they are concerned about.
Ultimately of course, everything is
about the customer and their experience,
and this is what we should really be considering.
Too much offshoring is about reducing
cost, not improving the experience of the
customer or effectiveness of the process. Being
a professional organisation is about how
you treat all other organisations you interact
with.
In the work that I do I meet many organisations
with brilliant credit management
teams, yet their accounts payable seem to
have in-built processes designed to delay
payments not necessarily deliberately, but
because they are done to a cost not a quality
standard, and this impacts reputation. Why
spend huge sums on new collections and
credit management software, and not consider
what happens when the cash is paid? With
new specialist systems, the ‘transactional’
cash allocation process has come of age and
is helping drive the upstream processes of
collections and risk assessment.
FIRE AND FORGET
The ‘fire and forget’ approach to financing
from years ago has also thankfully
changed. Back in the day, invoice financing
‘factoring’ was not something
that many organisations wanted to discuss
or admit too, since it was associated
with organisations in difficulty or without
the skills or resources to manage
their cash collection effectively. Additionally,
the ‘factors’ had a poor service reputation
largely because they were not too concerned
with an ongoing business relationship with
the debtor as they saw them. This is very different
today.
There is significantly more due diligence
carried out when financing, the impact of the
2008 credit crunch has provided more rigour
in this regard, and financing is being seen
as a real opportunity for improving working
capital, especially at times of seasonal increases
in revenue. Better to have the money
in the bank than on the sales ledger. Financing
arrangements are fast becoming more
commonplace and customer focused, providing
the company with the money and the
customer with extended terms. With more
acceptance comes innovation.
One organisation in the building trade
facilitates finance arrangements like this for
their customers, the builders, to help them
with short-term financing. By doing this, not
only are they getting paid quicker but the customer
experience is also such that they are
less likely to change suppliers. This service
is offered with a suite of other ‘products’ like
assistance with collections, credit insurance,
risk assessments. This particular organisation
started offering these services two years
ago.
Here are two activities at the back end of
the order to cash process – cash allocation
and financing – that are at last gaining greater
recognition and understanding for their
importance to a business’ cashflow. Neither
of which were glamourous, but both considered
mysterious and unwanted by most of the
business, and are now being de-mystified as a
result. Organisations that are managing these
processes well are really benefiting both the
business and their customers – proof that a
more holistic approach to credit management
is now needed.
For more information about the CICM
Best Practice Network please contact or visit
the CICMQ page on the CICM’s website cicm.
com.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 43

ASK THE EXPERTS
What is the best way to get
Board buy in to investment
in credit department
development training and
accreditation?
AUTHOR – Phil Rice, Head of Credit at Aggregate Industries UK is this month’s expert.
Phil Rice
SIX years ago, I started on a
journey to get the Board to buy
in to invest in our department.
I initially embarked on the
process on obtaining the CICMQ
accreditation. It demonstrated
our capabilities, achievements and with
the road map and stakeholder involvement,
showed the business what we could achieve
– with the appropriate levels of investment
in training and development – in terms of
improvement in KPI’s customer service and
interaction and support for the business.
There was no budget for this initial
accreditation, but I knew that the end result
in terms of engaging our business and the
awareness and prestige that it would bring
for the department and company simply
outweighed the initial cost, so was worth
the risk. As a manager, I needed to take that
important first step as I saw this as a way of
getting more investment. This really did open
the door for a larger budget.
It is also important to make sure that the
business is aware of your achievements and
capabilities and being able to demonstrate
that with a budget for training, this investment
can be returned many times over in terms of
improved performance. Really the business
is investing in its core asset, which is people,
and with the right training and support
these people can make a huge impact on
the performance. Investing in training and
process raised our level of professionalism
and this reflected in improved results.
It is also important to discuss your
investment plans and requirements
individually with each Board member and
explain your rationale. You need to explain
where you want to be, why you need the
funding, and what this will bring to the
business. This way, when it comes to the
important budget meeting, all the groundwork
has been done and there is hopefully less of a
debate as most of Board members are already
convinced that the request for investment
is worthwhile. Oddly, another way is to
take your CFO and CEO to the CICM British
Credit Awards; they then can see first-hand
what their investment can produce and how
rewarding it can be!
Accreditation also differentiated us from
our competitors, so being able to be CICMQ
accredited is highly desirable to our business.
It also demonstrates our abilities to our
customers. This desirability for differentiation
brings along a training budget so the
investment starts to be self-perpetuating.
Any buy-in or investment won’t bring
instant results of course. Our journey took
over five years in which we transformed into
a world class Order to Cash (O2C) function.
Along the way there was a failure or two, and
we learned from these and we must not be
afraid to deal with failure. Failure can be a good
thing and is an important part of the process,
so you can understand when going forwards
how to ensure success. However, I wouldn’t
suggest here that you fail at everything as this
may have career implications for you. If you
haven’t failed at anything then you haven’t
done anything, and I guess you won’t be
needing a budget or investment!
There was no budget for
this initial accreditation,
but I knew that the end
result in terms of engaging
our business and the
awareness and prestige
that it would bring for the
department and company
simply outweighed the
initial cost, so was worth
the risk.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 44

THE
CREDIT CONTROL
RECRUITMENT
SPECIALISTS
www.portfoliocreditcontrol.com
As a market leading credit control recruitment
specialist, we are proud to have supported the
credit control sector since 2008, providing unrivalled
market knowledge and expertise. We provide a
comprehensive and highly tailored service across
permanent, contract and temporary recruitment.
Our highly experienced recruitment consultants match
the highest calibreindividuals with the most progressive
opportunities across the credit control profession.
We recruit into all industry sectors, with clients ranging
from FTSE100 to SMEs, as well as providing coverage
to the whole of the UK.
WE ARE
AN AWARD WINNING
RECRUITMENT AGENCY
An award winning recruitment agency, having won
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to Work For,The Sunday Times Fast Track 100 and The
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ROLES WE RECRUIT FOR:
CREDIT CONTROLLER
PROVIDING SALARY
BENCHMARKING FOR THE
INDUSTRY SINCE 2008
SENIOR CREDIT CONTROLLER
CREDIT MANAGER
HEAD OF CREDIT CONTROL
CREDIT AND BILLING MANAGER
COLLECTIONS ASSISTANT
COLLECTIONS MANAGER
PERFECTLY PLACED TO
SUPPORTYOUR NEXT
RECRUITMENT PROCESS
SALES LEDGER/ACCOUNTS RECEIVABLE
CREDIT ANALYST
If you are planning to recruit or looking for the next step
in your career please get in touch with the Credit Control
recruitment specialists on 020 7650 3199 or contact us at
recruitment@portfoliocreditcontrol.com.
We look forward toworking with you.
020 7650 3199
www.portfoliocreditcontrol.com
The Recognised Standard / www.cicm.com / December 2017 / PAGE 45

EDUCATION – SAINT-GOBAIN BUILDING DISTRIBUTION UK
Corporate Membership
Building Skills
Saint-Gobain includes some of the best-known
and respected companies in the construction sector.
HOW do you build greater
credit knowledge and
understanding when
your team is based
across numerous sites?
This was the challenge
facing Paul Cahill, the National Credit
Services Manager for SGBD UK and three
of his senior Credit Managers: Ben Wade
(Huddersfield); Claire Daniel (Coventry);
and Julie Bitters (Glasgow). The ambition
to train, support and nurture staff with
varying educational experiences led the
company to the CICM and more specifically,
Corporate Membership.
THE SOLUTION
With its inclusive ethos, CICM Corporate
Membership provided a flexible route of
training and qualifications to inspire the
team. The programme was launched with
a hugely successful one day Telephone
Collections training course held in
Glasgow, Huddersfield and Coventry.
Attendees’ feedback showed an immediate
positive impact, with comments such as: ‘I
have learnt the importance of every single
step of a phone call and the effect it has
on cash collection.’
Not surprisingly, this taster led to
enthusiastic uptake of the two year CICM
Level 3 Diploma in Credit Management
qualification programme which includes
both assignments and exams to suit the
personal circumstances and educational
ambitions of the learners.
As a company which strongly promotes
personal development, SGBD UK has made
full use of the various study methods
on offer to help students through the
programme. Larger groups have attended
face-to-face or virtual classes whilst small
groups have benefitted from coaching
through the CICM Learning Support
service or have chosen distance learning.
The results speak for themselves.
THE OUTCOME
In the last two-years, the SGBD UK
credit teams have shown an outstanding
commitment to the CICM qualification
programme which has had an immediate
positive impact on skills, confidence and
performance.
Additional benefits also include greater
interaction across teams within the department
and an increased awareness of how
the credit team impacts the wider business.
The exceptional success of the programme
is due to the continued encouragement
of the managers, underpinned by the
Corporate Membership arrangement.
THE FACTS:
• 49 people have achieved one or more
CICM awards.
• 30 learners now have the CICM
Certificate in Credit Management
• 17 students have achieved the CICM
Diploma at Level 3 and earned the
prestigious professional letters,
ACICM.
• The company is one of CICM’s topperforming
corporate clients and
(out of 14 companies) is currently
the CICM Corporate Member with
the most Diplomas at Level 3 and
has examination pass rates above the
national average.
• Team Managers have fast-tracked
through college courses to achieve
the Diploma and their gateway to
the CICM Level 5 Diploma in Credit
Management.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 46

EDUCATION – SAINT-GOBAIN BUILDING DISTRIBUTION UK
“The breadth and success
of the programme has
significantly improved
engagement and has led
to employees working in
non-credit roles applying
to move into jobs within
credit control.”
IN BRIEF:
Saint-Gobain in the UK includes
some of the best-known and
respected companies in the
construction sector including:
Jewson, Graham, Gibbs & Dandy
and Minster.
THE CHALLENGE:
To train, support and nurture
staff with varying educational
experiences across numerous
sites.
THE SOLUTION:
To develop a consistent
programme of training across the
group linked to qualifications and
CICM corporate membership.
THE OUTCOME:
Immediate impact on skills,
confidence and performance.
Excellent qualification
achievement with consistently
high results.
“The key to our success was ensuring engagement and
involvement at all levels across all sites. The site champions
encouraged a collaborative team effort in which everyone
wanted to succeed both on a personal but also group level.”
The Recognised Standard / www.cicm.com / December 2017 / PAGE 47

Would you like to be CICM qualified?
Plan now to start studying in January
Now is the time to think about starting your studies in January and speaking to your
employer. Our education advisers can give advice on how to get started and the options
available. Partly qualified? Find out which units you could complete to gain a CICM
qualification. You could replace an exam with an assignment for example, telephone
collections. Study options are explained below.
EVENING CLASSES
CICM Teaching Centres offer classroom-based learning in
Credit Management (Trade, Export and Consumer), Accounting
Principles, Business Law and Business Environment towards
the CICM Level 3 Diploma in Credit Management and some offer
study towards the CICM Level 5 Diploma in Credit Management.
VIRTUAL CLASSROOM
The CICM Credit Academy offers the opportunity to study in a
virtual classroom through the web for the Level 3 Diploma in
Credit Management examined units Credit Management (Trade,
Export and Consumer), Accounting Principles, Business Law and
Business Environment and Level 5 Diploma subjects. Classes are
led by an experienced tutor, are interactive and you have plenty
of opportunity to ask questions and test your knowledge.
IN-COMPANY CLASSES
Some Teaching Centres and the CICM Credit Academy offer
in-company classes for CICM qualifications. Contact CICM
Learning and Development for further details. Fees depend on
location, length of course and are generally cost effective for
groups of ten learners or more.
SUPPORTED HOME STUDY
Supported home study suits those who wish to receive
tutorial support, but would like some flexibility. A practical
option if you are unable to attend college on a regular basis
for the Level 3 Diploma in Credit Management examined
units or CICM Level 5 Diploma in Credit Management
Supported home study providers:
CICM Credit Academy Learning Support Service
OLC (Europe)
Haddoum Training, Milton Keynes (including three Saturday
classes)
UNSUPPORTED HOME STUDY
This provides the cheapest and most flexible option to study for
Level 3 Diploma examined units and Level 5 Diploma units. As
a minimum requirement, you would need to purchase relevant
study texts and guides prepared by the CICM for these units and
specialist text books. This is not a correspondence course and in
using this method you work alone.
CICM TRAINING
CICM offer open and in-company training days, linked to CICM
assignments. (see CICM website for details). Works well for all
CICM qualifications (Credit Management, Debt Collections and
Money and Debt Advice). In some cases, the Institute can link
organisations own training to CICM awards and CICM would be
pleased to advise on this.
CONTACT DETAILS FOR
EVENING AND VIRTUAL CLASSES
Basingstoke
brenda.linger@btconnect.com
Birmingham
Deborah.filgate@blueyonder.co.uk
Avnet, Bracknell
Brenda.linger@btconnect.com
Pecunia (2016) Ltd, Kent
courses@pecunia2016.co.uk
Leeds City College
Karen.odgers@leedscitycollege.ac.uk
South Leicestershire College
info@slcollege.ac.uk
Scorpion, Wolverhampton
petercartwright@debtman.freeserve.co.uk
London Metropolitan University
professionalcourses@londonmet.ac.uk
Haddoum Training, Milton Keynes:
Haddoum.training@yahoo.co.uk
Malta Association of Credit Management
info@macm.org.uk
Pecunia (2016) Ltd, Kent
courses@pecunia2016.co.uk
Portsmouth
brenda.linger@btconnect.com
Southampton
brenda.linger@btconnect.com
Stoke-on-Trent College
Mdodd1sc@stokecoll.ac.uk
CICM Virtual Class
creditacademy@cicm.com
The Organisational Learning Centre, (OLC Europe) CICM
Credit Academy, Manchester
greg@olceurope.com
For further details contact
professionalqualfications@cicm.com
or telephone: 01780 722909
The Recognised Standard / www.cicm.com / December 2017 / PAGE 48

THE CICM MAGAZINE FOR CONSUMER AND
COMMERCIAL CREDIT PROFESSIONALS
CM April 2016.indd 1 22/03/2016 11:42
JAN / FEB 2017 £10.00
THE CICM MAGAZINE FOR CONSUMER AND
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CM Jan/Feb 2017.indd 1 20/01/2017 11:51
THE CICM MAGAZINE FOR CONSUMER AND
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CM September 2016.indd 1 23/08/2016 14:30
NOVEMBER 2016 £10.00
THE CICM MAGAZINE FOR CONSUMER AND
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CM November 2016.indd 1 21/10/2016 12:56
THE CICM MAGAZINE FOR CONSUMER AND
COMMERCIAL CREDIT PROFESSIONALS
CM MAY 2017.indd 1 21/04/2017 11:37
w
CM
Credit Management magazine for consumer
and commercial credit professionals
CREDIT MANAGEMENT
CM
APRIL 2016 £10.00
FALLING STAR
THE INDUSTRY SPEAKS OUT
ON THE EU REFERENDUM
www.cicm.com
CREDIT MANAGEMENT
POWERING
AHEAD
ROLLS-ROYCE AND THE
IMPORTANCE OF CICMQ
CREDIT MANAGEMENT
CM
SEPTEMBER 2016 £10.00
DESERT STORM
THE CHALLENGE OF DOING
BUSINESS IN SAUDI
www.cicm.com
CREDIT MANAGEMENT
ROCK
STEADY
CREW
MEETING THE CREDIT TEAM
AT AGGREGATE INDUSTRIES
www.cicm.com
CREDIT MANAGEMENT
CM
MAY 2017 £10.00
BROADCAST
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The Recognised Standard / www.cicm.com / December 2017 / PAGE 49

HR MATTERS
Employee snooping
A recent decision by the Grand Chamber of the European
Court of Human Rights has brought the question of
employee monitoring to the forefront of employers'
minds once again. Gareth Edwards reports.
AUTHOR – Gareth Edwards is a partner in the employment team at Veale Wasbrough Vizards. gedwards@vwv.co.uk
THE decision in Barbulescu v
Romania highlights the fine
balance between an employee's
reasonable expectation
of privacy and an employer's
right to check the activities
of those working for them. It was not sufficient
for the employer to simply inform
the employee that there was an internet usage
policy in place but instead, the Grand
Chamber found, the employee should also
have been made aware of the extent and
nature of the monitoring activities that the
employer was putting in place.
In the UK, the monitoring of employees
is heavily regulated by existing legislation,
which places limitations on the powers
of employers to monitor their employees'
private communications, including the
Data Protection Act 1998. The decision
reinforced that employers must provide a
legitimate reason to justify the monitoring
of an employee's communications. This
requires some form of assessment to be in
place in order to decide whether legitimate
reasons are in place.
Ultimately employers must be satisfied
that they have achieved the correct balance
between protecting workers' privacy and
the interests of the business. Carrying
out an impact assessment in relation to
communications monitoring is one way
in which employers can demonstrate that
they have achieved this. Employers should
also ensure they have a communications
monitoring policy in place and where
possible this should be backed up with
specific training on the use of IT and email
systems.
DRUG AND ALCOHOL MISUSE
The extent to which employers will need to
monitor their employees' use of alcohol or
indeed drugs, will depend on the particular
environment in which the business is based.
For instance, in some circumstances it may
be appropriate for employees to consume
alcohol while entertaining clients. In other
sectors, however, employers will need
to be much more cautious about their
employees' use of alcohol or drugs. Those
whose staff use vehicles as part of their
jobs, for instance, will need to maintain a
higher level of vigilance in this respect.
Employers may want to consider
whether it is necessary to carry out drug
screening or alcohol testing. This will
of course only be relevant in particular
industries, however, for those where this
is likely to be an issue then employers
should ensure that reference to screening
or testing is included in a policy given to all
staff.
Even with a drug screening or alcohol
testing policy in place, employers will
not be able to require staff to submit to
testing without their specific consent to do
so. One option is to draft the monitoring
policy to say that withholding consent is a
misconduct offence in itself.
TRACKING
Employers whose staff work 'off-site' –
for instance when driving – may find it
particularly difficult to know the exact
movements of their employees during
their working hours. Improvements in
technology have, however, made employee
accountability in the workplace much
easier in recent years. Again, industries
which rely on employees driving may find
this kind of technology particularly useful.
GPS, for instance, will highlight if drivers
are diverting from their planned routes
or if there is traffic preventing them from
reaching their destination.
If employers do intend to monitor
vehicles they should ensure that they
provide a policy which sets out the nature
and extent of the monitoring. Employers
should satisfy themselves that their
employees are aware of the policy that is
in place, what information is recorded and
the purpose for that recording. Where the
vehicle is used for both private and business
use employers should be particularly
wary, as monitoring movements when the
vehicle is being used privately will rarely (if
ever) be justified.
CONCLUSION
Monitoring employees can take place
in a variety of ways and employers
should carefully consider which form of
monitoring is necessary for their business,
without being unnecessarily intrusive to
the privacy of staff. Carrying out impact
assessments is often a useful way of
determining whether the monitoring is
truly justifiable.
Case law such as Barbulescu v Romania
clearly demonstrates that the courts take
the privacy of staff in the workplace very
seriously. In order to reduce the risk of
employee complaints, employers should
try to be transparent and honest with
employees about monitoring which they
may be subject to.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 50

OPINION
BLACK OR WHITE
The economy could be heading for another 90s
style blip, but it’s not cut and dried.
AUTHOR – Kevin Reed is a freelance journalist and former editor of both Accountancy Age and Financial Director.
Kevin Reed
There certainly isn’t a
clear-cut direction for
the future. Or, as Michael
Jackson sang in 1991, it’s
not Black or White.
ARE we finally heading
back to the future? There
are certainly some in the
credit industry who have
been pining for the days of
shellsuits and some bad,
bad music. That’s right folks, 1991 might be
just around the corner.
First kicking off in mid-1990s, the
UK recession ran through to Q3 1991,
with factors including high interest
rates, high inflation and subsequently
negative equity on properties (and soaring
mortgage repayments) leading to personal
bankruptcies.
Overstretched businesses collapsed
at a rate of knots during the period,
and it all kept the insolvency profession
(‘professionalised’ and role as ‘rescuer’
clarified post-1986 Insolvency Act)
extremely busy.
So, where are we now? I’m certainly no
economist (as seems to be the case with
many who claim to be an economist), but
let’s consider some of the factors that may
impact on IPs’ future ‘prosperity’.
Interest rates have finally ticked up –
but we’re not exactly threatening double
figures here. Then again, house prices,
particularly in the south-east and London,
are still piping hot. Salaries have not kept
pace with inflation, and I still get that gut
feeling there’s a ‘spend in haste, repent at
leisure’ attitude among many of our good
citizens.
And then there’s the banks. Rightly
vilified for atrocious risk management
and governance leading up to and beyond
the credit crisis, they certainly talk the
game around more vigorously testing the
financial situation of people looking to take
out a credit card or take on a mortgage.
However, politically and reputationally, one
wonders if they’d want to be seen managing
large portfolios of properties falling into
their hands from distressed debtors.
Of course, on the corporate side many
advisers have bemoaned the availability of
finance for their clients from the traditional
ports of call. Yet many businesses have
secured long-term financing, while
insolvency practitioners are now in the
10th year of waiting for a slew of zombie
businesses – those paying off interest and
loans, but not expanding or progressing - to
keel over. Clearly, a 25 basis-point increase
isn’t going to push them into their graves.
There businesses are other factors that
could see some business perform better in
the short-term, such as sterling’s weakness
and therefore better exporting conditions.
But recent stats from the National Institute
of Economic and Social Research (NIESR)
show just a gentle pickup in exports, and
imports growing. And that’s all one Brexit
away from seeing trade barriers that will
dwarf sterling’s weakness.
I then look at the hardy, never-saydie
Brits that are setting up their own
businesses, particularly using e-commerce
and e-marketing to great effect and utilising
new funding platforms and models – but
we have a Government that seems set on
hitting the self-employed and business
owners with tax rules and regulation that
will likely stifle, rather encourage.
And that stubborn inflation figure is
still there, in the background, making the
pennies go less far than they did the day
before.
It’s difficult to not see more insolvencies,
personal or corporate, around the corner.
But it’s equally difficult to make a case that
it will lead to a boomtime for the insolvency
profession.
There certainly isn’t a clear-cut direction
for the future. Or, as Michael Jackson sang
in 1991, it’s not Black or White.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 51

LEGAL MATTERS
CONTRACTS
AND ALE
The tale of a meeting in the Horse and Groom pub,
when a judge then had to decide whether it resulted in
a binding agreement to pay £15 million.
AUTHOR – Peter Walker
LET’S go down to the pub, have
a few beers, make a multimillion-pound
agreement,
and let the courts sort out the
mess later. But, watch out,
you boozing business people!
There are the cautionary words of film
tycoon Sam Goldwyn, ‘a verbal contract
isn’t worth the paper it is written on.’ That
is a satire on the way business could be
done, * but a High Court judge recently had
to resolve a colourful dispute arising from
some happenings in a boozer.
The judge was the Hon. Mr Justice
Leggatt in the Commercial Court, and
the case was Blue v Ashley [2017] EWHC
1928 (Comm). Some people might also
regard the Defendant as being colourful
too, because he was the founder of Sports
Direct International Plc (‘Sports Direct’).
Behind all this colourfulness were some
sober contract-law principles.
A contractual background to the case
was a Management Services Agreement,
whereby the company of Jeffrey Blue, the
Claimant in the case, provided consultancy
services to Sports Direct. He was to look
at strategic acquisitions in the UK and in
Europe, but in the event, did other work. He
was involved in the search for a corporate
broker for Sports Direct, and an Investment
Bank was interested.
In this context, on 24 January 2013 three
representatives of the Investment Bank,
the Claimant, and the Defendant all met
at the Sports Direct London Office. The
Defendant is founder of Sports Direct, and
owned most (60 percent) of the shares in
the company.
This was the formal start to an evening
as a prelude to an intended chat of half an
hour or so in a pub. They all walked around
the corner to the Horse and Groom in Great
Portland Street, and started an evening of
drinking. The Claimant said that he drank
two or three pints of lager before he went
home at around 8.30pm. About half an
hour later the others left for a pub in Soho,
and at midnight some of the them went to
another bar. One of the party thought that
he had drunk eight to ten pints of beer
throughout the evening, and according
to Leggatt J, the judge in the case, it was
‘likely’ that the Defendant ‘drank a similar
amount of alcohol’ – I don’t know how they
managed it!
Everyone had a good time, and football
played a large part of the conversation.
The Defendant owns Newcastle United
Football Club, so it seemed to have been a
laddish evening. The Defendant also spoke
enthusiastically about the Claimant. One
of the investment bank representatives
thought that his intention was to make
the Defendant the main point of contact
between Sports Direct and the Bank.
BEER AND FOOTBALL
The conversation therefore was not all
about football, because, shortly after the
party had arrived at the Horse and Groom,
there was a discussion about the share
price of Sports Direct. They talked about
the effect on the value of the Defendant’s
shares according to various levels of the
share price. The Defendant pointed out that
if that price was to double, Sports Direct
would have the same capitalisation as that
of Marks and Spencer.
The Claimant then alleged that the
Defendant asked rhetorically what he
could do to incentivise him. If the Claimant
could double the share price in the next
three years, the Defendant would pay him
£10m. There was further discussion and
a suggestion that the figure should be
£20 million. The Claimant asserted that
the Defendant responded that he would
split the difference to £15 million. The
Defendant is supposed to have added, ‘yes,
that sounds fair.’
The Defendant did not recall any
suggestion of paying money to the
Claimant. He said that there was ‘general
banter’, and that they must have had four or
five pints in the first hour. Leggatt J did not
accept all the claims – ‘flights of fancy’ – but
he accepted that the drinks were flowing
freely. It would have been difficult to make
notes of the meeting, and none were made.
In the weeks that followed, the Claimant
on a few occasions mentioned to one of
the investment bank representatives the
prospect of an incentive payment. During
this time, the share price in Sports Direct
began to rise, until in February 2014 it was
£8.01.
MONEY TALKS
It was the moment to raise the topic of
money with the Defendant, who had
several conversations with the Claimant.
The Defendant paid over £1 million,
which he said was a reward for all that
the Claimant had done, but after a while
the Claimant resigned. During his threemonth
notice period, he wrote to explain
his point of view about various events, and
about his claim for £15 million. When there
The Recognised Standard / www.cicm.com / December 2017 / PAGE 52

LEGAL MATTERS
AUTHOR – Peter Walker
was no response, he appointed solicitors,
and this time there was plenty of paper,
including attendance notes of telephone
conversations. Now Leggatt J had to work
out whether there was an enforceable
contract, albeit not evidenced in writing.
He started with the basic requirements
for a contract. There must be an
agreement intended to be binding in law.
It must be supported by consideration,
and it must be sufficiently certain and
complete to be enforceable.
It suggests a case familiar to students
starting to study the law of contract, Carlill
v Carbolic Smoke Ball Co [1892] 1 QB 256.
A company advertised that it would pay
£100 to anyone who contracted influenza.
To make a claim that unfortunate person
must have used the smoke ball for two
weeks in accordance with the printed
instructions. The company refused to
pay the claimant, who had fulfilled all
those instructions yet who had caught the
‘flu. The company had, however, paid a
deposit of £1,000 into a bank as proof of
its sincerity, so the court ordered it to pay
the £100. The deposit was evidence of the
formation of a binding contract.
There are other points in Blue v Ashley,
such as consideration, and the need for
certainty and completeness of terms.
That was the difficulty in RTS Flexible
Systems Ltd v Molkerei Alois Mueller
GmbH & Co KG [2010] 1 WLR 753. There
was a Letter of Intent for the supply and
installation of equipment for £1,682,000
subject to a detailed final contract. Work
began anyway, although there was no
formal agreement. There was a draft that
was never signed.
This apparent lack of a complete
agreement was a difficulty, when there was
a dispute about the work done. The judges
of the Supreme Court resolved the dispute
by considering the communication, by
words and conduct, between the parties.
They decided on an objective test that the
draft amounted to an agreement. Legatt
J suggested that in some circumstances,
the subjective understanding of the
parties may be a good guide. That
subjective understanding was admissible
evidence in Carmichael v National Power
plc [1999] 1 WLR 204 in the decision as to
what obligations were established by an
oral agreement.
FALLIBLE MEMORY
In Blue v Ashley there was another factor
as evidence, the testimony of witnesses
based on their respective memories.
Leggatt J was wary and referred to a
published paper by Howe and Knott, ‘The
fallibility of memory in judicial processes:
Lessons from the past and their modern
A legally binding
contract without
wishful thinking can
be made in a pub,
but there must be
plenty of evidence to
substantiate what has
been agreed. These can
include notes of the
meeting and made by a
sober person.
consequences’ [2015] Memory, 23, p
633. He reviewed the testimony of the
witnesses, and ruled that the substance
of the supposed agreement was that the
Defendant would pay £15 million, if the
Claimant would get the share price to £8.
There was more to making a
binding agreement, although Leggatt J
commented that the pub setting would
not by itself prevent a contract from
being made. It was, however, an unlikely
setting in which to negotiate such an
agreement. The meeting was furthermore
unstructured and ‘the conversation was
largely social or general chat…’. The offer
was vague, and there were many other
indications against the view that there
was a binding agreement. Leggatt J did
not accept that the subsequent work by
the Claimant was the result of any such
agreement.
Leggatt J furthermore was sure that
the subsequent payment of £1 million
had nothing to do with any obligation to
pay £15 million. The alleged agreement
furthermore lacked an essential term, the
period within which the share price was
expected to increase to £8.
There had been what Leggatt J referred
to as ‘a jocular’ conversation in the pub,
when everyone laughed at the suggestion
of a payment of £15 million. ‘They all
thought it was a joke.’ Leggatt J concluded
that the Claimant had later convinced
himself that there was a legally binding
contract. He commented that it ‘shows
that the human capacity for wishful
thinking knows no bounds.’
A legally binding contract without
wishful thinking can be made in a pub,
but there must be plenty of evidence to
substantiate what has been agreed. These
can include notes of the meeting and
made by a sober person. Credit managers
should be wary of supposed contracts
made by people, who have lubricated
their minds with several, perhaps too
many, pints of beer.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 53

MEET THE PARTNERS
THEY'RE WAITING TO TALK TO YOU...
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
Hays Credit Management is the award winning national specialist
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HighRadius is the leading provider of Integrated
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The solutions are delivered as a software-as-a-service
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We offer the most powerful comparable data
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We capture and treat private company
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Orbis, our global company database has
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Sanders Consulting is a niche consulting firm
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We provide people and process focussed
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Key IVR provide a suite of products to
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The Recognised Standard / www.cicm.com / December 2017 / PAGE 54

Proud supporters
of CICMQ
With over 90 years’ experience, we have an
in-depth understanding of the importance of
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when it comes to collecting outstanding debts.
Our Client focus is reflected in the customer
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specific needs, providing a collection strategy that
echoes your business character, trading patterns
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www.atradiuscollections.com/uk/
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
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
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friendly team that are focused on new and
ongoing benefit realisation and you have the
foundations for successful long term business
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Safe’s Credit Control module manages the entire
credit lifecycle, from credit checking through to
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Dun & Bradstreet grows the most valuable
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obtain a global, unified view of your customer
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Tinubu Square is a trusted source of trade
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The Recognised Standard
The Recognised Standard / www.cicm.com / December 2017 / PAGE 55

FORTHCOMING EVENTS
Full list of events can be found on our website: www.cicm.com/events
CICM
EVENTS
1 December
CICM Sheffield and District Branch –
End of year Christmas social
SHEFFIELD
Fantastic party evening * Free Prosecco on arrival
Extensive Set Tapas Menu (Vegetarian Options
Available) * Drink and dance till late in the Salsa
bar
Contact : Emails and Enquiries:
sheffieldanddistrictbranch@cicm.com
VENUE : Cubana Unit 4, Leopold S, Sheffield, S1
2JG
5 December
CICM Thames Valley Branch – Data
Analytics and GDPR Breakfast Briefing
(2 CPD hours)
MARLOW
Hear from SAS as they give insights into the
importance of reporting, big data, analytics and
how to make the most of your data
Herring Carmichael will then provide an update
on GDPR including what it means to you and
your business. There will be an opportunity
for open discussion as well as a Q & A session
Details to follow. Speakers: Iain Brown – SAS UK
Alistair McArthur & Matthew Lea – Herrington
Carmichael. This is a free event and food and
refreshments will be provided.
Contact : E: thamesvalleybranch@cicm.com.
VENUE : SAS UK Wittington House, Marlow,
SL7 2EB
6 December
CICM South Wales Branch – Bowl your way
towards Christmas
CARDIFF
Our pre-Christmas party and bowl at the
Hollywood Bowl, Cardiff Bay at 19:00. Come and
enjoy some Welsh fun as we party the night away.
Numbers are limited for this event so book early
Contact : southwalesbranch@cicm.com
VENUE : Hollywood Bowl Red Dragon Centre,
Cardiff Bay, CF10 4JY
6 December
CICM Wessex Branch – General Data
Protection Regulation (GDPR) – Is your
business ready? (2 CPD hours)
SOUTHAMPTON
The biggest changes in data protection for 20
years are coming into force on 25 May 2018, in the
form of the General Data Protection Regulation
(GDPR). The GDPR will affect how you gain the
consent of your customers and employees to
process and store their personal data. It will also
affect how you store this data.
Contact : To book your free place please email
wessexbranch@cicm.com.
VENUE : PWC Savannah House, Southampton,
SO14 3TJ
7 December
CICM North East Branch –
Christmas Quiz 2017
NEWCASTLE
Teams of up to six welcome (in the interests of
fairness please do not exceed this number – you
can always submit two smaller teams). Book early
to avoid disappointment!
Contact : Email northeastbranch@cicm.com by
Thursday 30 November 2017.
VENUE : The Old George Inn Old George Yard,
Newcastle, NE1 1EE United Kingdom
17 January
CICM Yorkshire Ridings Branch – AGM and
Annual Conference 2018
LEEDS
Credit 18 -Yorkshire Ridings CICM Branch Annual
Conference and AGM
Conference 09:30 – 12:30
AGM 13:30 – 15:30
Contact : E: yorkshireridingsbranch@cicm.com
VENUE : DWF Leeds Bridgewater Place, Water
Lane, Leeds, LS11 5DY
TRAINING
DAYS
6 December
DEBT RECOVERY THROUGH THE COURTS
VENUE : London
6 December
WORKING WITH COMPANY ACCOUNTS
VENUE : London
7 December
COLLECTING WITH CONFIDENCE
VENUE : London
12 December
CICM WEBINAR –
CREDIT MANAGEMENT IN A NUTSHEL
VENUE : ONLINE
12 December
CICM WEBINAR –
TELEPHONE COLLECTIONS
VENUE : ONLINE
18 January
GETTING STARTED IN CREDIT CONTROL AND
COLLECTIONS
VENUE : London
OTHER
EVENTS
7 & 8 December
Forums International – International
Telecoms Risk Forum (ITRF)
LONDON
Contact : For more information email
itrf@forumsinternational.co.uk
VENUE : Vodafone, London
12 December
Forums International – Export/International
Credit Forum (ECF & ICF)
LONDON
Contact : For more information email
ecf@forumsinternational.co.uk
VENUE : Moore Stephens London
The Recognised Standard / www.cicm.com / December 2017 / PAGE 56

New CICM members
The Institute welcomes new members
who have recently joined
MEMBER
NAME
COMPANY
MEMBER BY EXAM
NAME
COMPANY
Lawrence Chambers
Adrian Dante
Sophie Eden
Michael Hoare
Geraldine Irwin
Simon Merrett
Caterpillar Financial Services (UK) Ltd
MHA MacIntyre Hudson
TLT LLP
RateSetter
Northern Ireland Water
Cerberus Receivables Management Ltd
Elizabeth Ash
Carol Fraser
Helene Johnston
Airclaims Ltd
Honeywell Control Systems Ltd
ASSOCIATE
NAME
COMPANY
Patricia Brooks
Emma Keddy
Lucy-Anne Messer
Eva Olave Martinez
Pure Contribution limited
NFT Distribution Ltd
Vale of Glamorgan Council
Fujichem Sonneborn Ltd
AFFILIATE
NAME COMPANY NAME COMPANY
Achillea Achilleos
Liska Allen
Kevin Avery
Jane Badger
Nicola Billingham
Adam Booth
Susan Brayshaw
Angela Carolan
James Cartwright
Dagmara Chrzastek
People Ltd
Julie Coghlan
Joanne Corbett
Louisa Cover
Abbigail Creed
Marie-Clara Dacosta
Najma Dadar
Emmanuel Di Noia
Paul Douglas
Reece Dupres-Ferrigi
Sandra Dworkin
Alina Ene
Donna Fredriksen
Karen French
Kelly Gibson
Gary Goy
Leigh Ellen Griffiths
Wendy Hall
Jill Hannah
Sarah Hardacre
Daisy Harvey
Jonathan Hayter
Ian Hooper
Rebecca Hotchkiss
Danielle Howson
Ian Jamison
Rachel Jones
University of Liverpool
Marston Holdings Limited
Big K Products UK Ltd
Rightmove Group Limited
FSS Canine Patrol Ltd
DWF LLP
Northern Ireland Water
Prime Time Recruitment Ltd T/A Cordant
Heart of England NHS Foundation Trust
Ingram Micro UK Ltd
Axol Bioscience
Bristow & Sutor
Tecfoods
Veri-Credit Trade Exchange
Bio - Rad
Carpin Capers
Chandlers Limited
xoserve Ltd
DB Schenke
RSK Plc
Castle Point Borough Council
Hills Group Ltd
24hr Bailiffs
Brake Bros. Ltd
Biocomposites Ltd
Cloudreach Europe Ltd
Sodexo Services Group Ltd
0-Two Maintenance
HSBC Bank Plc
Rational UK Ltd
Turner & Townsend
Magnet Limited
Northern Ireland Water
Brakes
James Jose
Sannah Khan
Kieran Lambert
Maria Lawlor
Geraldine Lawrence-McFee
Danielle Lewis
Xiao Liu
Natalie McManus
Malachy McVeigh
Michela Molinari
Laura Morgan
Thomas Nicol
Lauren Oswell
Sean Palfrey
Concepcion Perucha Ramos
Samantha Poil
Mark Prescott
Mark Richings
Georgina Robinson
Stephanie Schneider
Angela Seeland
Salma Shah
Emma Springhall
Laura Squibb
Peter Stevenson
Romina Tartan
Tracey Tighe
Kirsty Tippett
Mark Turner
Joseph Walker
Adam Walker
Coral Williams
Bryn Williams
Susan Wood
Matthew Wynn
Stanislav Zvonov
We Fight Any Claim
Magnet Limited
Andrew Wilson & Co
Sambro International
Berry Brothers & Rudd
Long Harbour Ltd
The Enterprise Fund Ltd
Chestertons
NIE Energy Ltd
Safenet Uk Ltd
Hertz Accident Support
Northumberland County Council
KP Snacks Limited
ARP Enforcement Agency
Clere Care Services
Brakes
Grosvenor Services Group Ltd
Stroud District Council
R S Clare & Co Ltd
Electronic Arts Ltd
Hilti (Gt Britain) Ltd
Paradigm Housing Group
Rightmove Group Limited
DAC Beachcroft
Court Enforcement Services Ltd
Zonin UK Ltd
Kerry Logistics UK Limited
Brakes
Andrew Wilson & Co
Bristow & Sutor
Nobia UK
Castle Point Borough Council
Phoenix Healthcare Distribution Ltd
Naylors Timber Recovery Ltd
South Cambridgeshire Distict Council
Pfizer Pharmaceuticals
The Recognised Standard / www.cicm.com / December 2017 / PAGE 57

For more information call 01206 322 575
info@safecomputing.co.uk
www.safe-financials.co.uk
The Recognised Standard / www.cicm.com / December 2017 / PAGE 58

BRANCH NEWS
THE North East Branch
recently collaborated
with its Association of
Accounting Technician
(AAT) counterparts and
shared a thought-provoking
evening, welcoming both FRP Advisory
and Muckle LLP to deliver an ‘Insolvency
Insights’ presentation. Martyn Pullin
and Iain Townsend from FRP Advisory,
presented an introduction to insolvency,
informed members of how to spot early
warning signs and how to protect sales,
as well as an update to recent changes
surrounding insolvency.
Kelly Jordan and Bev Oliver from
Muckle LLP, consolidated the evening’s
learning with an overview of the types of
debt recovery tactics that can be employed
and the relative merits. The presentations
were well received and armed both the
credit and accounting professionals with
a deeper understanding of the powers and
discretion available, particularly around
Retention of Title when supplying goods,
and the use of Equitable Lien as a bargain
Fraud, risk and cybercrime conference
East of England Branch
BRANCH Chairman Richard Brown and
Karen Young from Hays welcomed 68
credit professionals to the free conference,
including CICM members from seven
different branches, that was chaired by
CICM President Stephen Baister, at Hays’
London office.
Jeffery Davidson of Honeycomb
Forensic Accounting, gave a fascinating
talk about dawn raids, who can carry
them out, and how to react when they
happen.
We learned about risk management
and protecting the bottom line from David
Clark of Smart Currency Business.
Rory Cleland, CH2M talked about
his experiences in the military using
biometrics, and detecting patterns of
behaviour to identify fraud.
Combating the fraud challenges in
the card payment industry was outlined
by Martin Warwick, FICO, who later
presented a bottle of wine to Advanced
Collection Systems’ Robert Anthony,
winner of the Business Card draw.
Branch Committee member Katherine
Bailey from Valor Hospitality, described
the work of the 2017 Branch Charity
‘Unlock a Life for Lockey’, and accepted
Insolvency Insights
North East Branch
tool when you’re an unsecured creditor,
especially when the Administrators come
calling to recover their assets.
The evening culminated with food,
drinks and networking between the 40
guests in attendance, forging new and
Photo, L to R: Martyn Pullin and Iain
Townsend, FRP Advisory and Kelly
Jordan and Bev Oliver, Muckle LLP.
useful relationships. We look forward to
joining the AAT again in the New Year and
working with FRP Advisory and Muckle
LLP again in the future.
Author:
Paul Card
the generous Smart Currency Business
donation handed over by David Clark on
its behalf.
After a splendid buffet lunch, Barry
Clark of Centrify, took us through best
practice in credit management to avoid
cybercrime, and the impact of a data
breach.
Tara Owens of The Metropolitan Police
FALCON unit gave a fascinating and
informative presentation on how to spot
and avoid computer scams, including the
dangers of putting too much information
on social networks, and just how quickly
passwords can be broken.
The lively Q&A Speakers and Expert
panel were joined by Stephen Cowan of
Yuill & Kyle, and Jill Trebilcock of IISP.
Stephen Baister thanked hosts Hays
for kindly sponsoring the day; the
speakers for giving their time voluntarily;
Smart Currency Business and FICO for
their donations; conference organisers
Carol Baker and Richard Brown; and
everyone for attending and participating
in this highly enjoyable and successful
conference.
Author:
Richard Brown.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 59

TAKE CONTROL
OF YOUR CREDIT
CAREER
EUROPEAN CREDIT AND COLLECTIONS
MANAGER
SUPPORT BUSINESS CHANGE
Crewe, £45,000-£50,000 + benefits
This leading global manufacturing business was
founded over 140 years ago and now operates in over
200 production sites in more than 40 countries. Due to
continued growth and success, it is seeking a European
credit and collections manager. You will be responsible
for minimising the exposure to credit risk and improving
working capital through the continuous reduction in
customer overdue. You will be a proven credit and
collections manager with experience within a finance
department of a multinational company, as well as
a commercial business acumen. Ref: 3159585
Contact Rachel Woolliscroft on 01782 958910
or email rachel.woolliscroft@hays.com
CREDIT MANAGER
BECOME A SUBJECT MATTER EXPERT
Birmingham, up to £40,000
An exciting opportunity has arisen at a growing
and evolving software company that is moving its
headquarters to Birmingham city centre. As a subject
matter expert, you will provide guidance, support and
expertise to the clients, understanding and consulting
on their end-to-end AR processes. To be successful,
you will need extensive experience in credit, as well as
a management or supervisory post. CICM qualification
is highly desired but not essential. In return, you will
receive fantastic training and development.
Ref: 3151598
Contact Peter Kidd on 0121 212 3301
or email peter.kidd@hays.com
CREDIT MANAGER
MAKE AN IMPACT
St Helens, £35,000-£40,000 + benefits
An experienced credit manager is required to make a real
impact into a market-leading construction manufacturing
organisation. You will assess processes and streamline
current procedures in order to gain the best out of the
credit team which includes three credit controllers,
to reduce the overall aged debt of the business and to
develop key relationships. You will need to be extremely
organised and structured for this role and diplomacy is
a key factor for this candidate to be successful within the
business. Benefits include pension, 28 days holiday and
time off at Christmas.
Ref: 3130083
Contact Thomas Powell on 01925 654305
or email thomas.powell@hays.com
ASSISTANT CREDIT SERVICES MANAGER
DEVELOP YOUR CAREER
Sheffield, £26,000-£29,000 + CICM study support
This leading provider in its field is looking for an assistant
credit services manager to join its team and develop
their career. The company is easily accessible and
invests strongly in its employees. Reporting to the Credit
Manager, you will take a pivotal role within the Credit
team and work with the wider business that will ultimately
see you develop through your career and potentially your
chosen qualification. You will develop the team to deliver
a responsive service to internal and external customers,
couple with processing new account credit requests and
assessing credit limits. Ref: 3162054
Contact Jack Curtis on 0114 273 8775
or email jack.curtis@hays.com
hays.co.uk/creditcontrol
The Recognised Standard / www.cicm.com / December 2017 / PAGE 60

STANDLONE CREDIT CONTROLLER
LEAD YOUR EXPERT FUNCTION
Leeds, £26,000 + CICM study support
A professional services company located in the Leeds
city centre is looking for a standalone credit controller
to head up its credit function. Answering directly into
the Financial Controller, you will be solely responsible
for the maintenance of various ledgers, handling client
queries and pre-legal assistance to partners. This provides
an exciting opportunity with real scope for personal
growth and development. The company is looking for an
individual currently studying towards CICM qualifications,
where it will provide support to becoming fully qualified.
Ref: 3156380
Contact Jonathon Brand on 0113 200 3735
or email jonathon.brand@hays.com
CREDIT CONTROLLER
ACHIEVE YOUR FULL POTENTIAL
Leeds, £22,000
Due to a period of extensive growth, an innovative
professional services business based in the Leeds
city centre is looking for a credit controller to join its
expanding transactional finance team. Working within
a team of credit controllers, you will be responsible for
reducing the aged debt within their insurance division
through the effective liaison with partners and clients
to ensure prompt collection or resolution of aged
receivables. This is an exciting opportunity to join a Top
5 professional services business looking to nurture and
develop you, helping to achieve your full potential.
Ref: 3135950
Contact Jonathon Brand on 0113 200 3735
or email jonathon.brand@hays.com
SENIOR CREDIT CONTROLLER
WORK FOR A LEADING RETAIL BRAND
Manchester, up to £24,000
A fantastic opportunity has arisen at one of the most
recognisable retail brands in the UK at its international
head office in Manchester. Working in this busy team,
you will support the Credit Supervisor and work with
key accounts, resolving escalated queries from the
wider team. You will develop relationships with key
stakeholders both internally and externally to ensure you
maintain a low DSO and improve the accuracy of cash
flow projections. You will have a real passion to progress
your credit career and be driven to improve both your
own performance and processes in place.
Ref: 3148688
Contact David Busfield on 0161 236 7272
or email david.busfield@hays.com
JUNIOR ACCOUNTS RECEIVABLE CLERK
TAKE THE NEXT STEP
London, £18,000-£20,000
A market-leading international travel business is seeking
a junior AR clerk to join its finance team. This entrylevel
role will involve weekly invoicing, processing
debit and credit card transactions and the creation of
various reports. You will be responsible, enthusiastic and
motivated to learn. Strong Excel skills are also essential.
In return, you will be fully supported with training
and work with friendly colleagues in a vibrant office
with a work hard/play hard culture. This is an exciting
opportunity if you are taking a first step into the world of
work, or have office or admin experience with the desire
for a career in finance. Ref: 3160610
Contact Julia Foster on 020 3465 0020
or email julia.foster2@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 / December 2017 / PAGE 61

DO YOUKNOWTHE TRUE
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Call us now to book afree demonstration on:
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Or visit us online:
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SmartSearch delivers UK and International Business checks in the UK and International
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The Recognised Standard / www.cicm.com / December 2017 / PAGE 62

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION,
OPTIONS AND PRICING
PLEASE EMAIL:
anthony.cave@cabbell.co.uk
ANTI MONEY LAUNDERING
COLLECTIONS LEGAL
CONSULTANCY
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.
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.
Atradius Collections Ltd
3 Harbour Drive,
Capital Waterside,
Cardiff Bay, Cardiff, CF10 4WZ
United Kingdom
T: +44 (0)2920 824700
W: www.atradiuscollections.com/uk/
Atradius Collections Ltd is an established specialist in business
to business collections. As the collections division of the Atradius
Crédito y Caución, we have a strong position sharing history,
knowledge and reputation.
Annually handling more than 110,000 cases and recovering
over a billion EUROs in collections at any one time, we deliver
when it comes to collecting outstanding debts. With over 90
years’ experience, we have an in-depth understanding of
the importance of maintaining customer relationships whilst
efficiently and effectively collecting monies owed.
The individual nature of our clients’ customer relationships is
reflected in the customer focus we provide, structuring our
service to meet your specific needs. We work closely with clients
to provide them with a collection strategy that echoes their
business character, trading patterns and budget.
For further information contact: Hans Meijer, UK and Ireland
Country Director (hans.meijer@atradius.com).
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.
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...”
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.
Sanders Consulting Associates Ltd
T: +44(0)1525 720226
E: enquiries@chrissandersconsulting.com
W: www.chrissandersconsulting.com
Sanders Consulting is an independent niche consulting firm
specialising in leadership and performance improvement in all
aspects of the order to cash process. Chris Sanders FCICM, the
principal, is well known in the industry with a wealth of experience
in operational credit management, billing, change and business
process improvement. A sought after speaker with cross industry
international experience in the business-to-business and businessto-consumer
markets, his innovative and enthusiastic approach
delivers pragmatic people and process lead solutions and significant
working capital improvements to clients. Sanders Consulting are
proud to manage CICMQ on behalf of and under the supervision
of the CICM.
COURT ENFORCEMENT SERVICES
Court Enforcement Services
Wayne Whitford – Director
M: +44 (0)7834 748 183
T : +44 (0)1992 663 399
E : wayne@courtenforcementservices.co.uk
W: www.courtenforcementservices.co.uk
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
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.
continues on page 64 >
The Recognised Standard / www.cicm.com / December 2017 / PAGE 63

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION,
OPTIONS AND PRICING
PLEASE EMAIL:
anthony.cave@cabbell.co.uk
CREDIT INFORMATION
CoCredo Limited
Missenden Abbey, Great Missenden, Bucks, HP16 0BD
T: 01494 790 600
E: customerservice@cocredo.com
W: www.cocredo.co.uk
Celebrating 15 years in business, CoCredo’s award winning credit
reporting and monitoring systems have helped to protect and secure
over £27 billion of turnover on behalf of our customers. Our company
data is updated 500,000 per day and ensures customers have the
most current information in the market place. Access to the online
portal is available 365 days a year 24/7 from anywhere in the world.
At CoCredo we aggregate data from a range of leading providers
across the globe so that our customers can view the best available
data in one easy to use report. We also offer customers XML
Integration and D.N.A. Portfolio Management.
From simply looking at a prospect through to acquisition, to
monitoring, we pride ourselves on helping our customers every step of
the way. CICM members receive their first five credit reports for free.
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.
Credica Ltd
Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT
T: 01235 856400E: info@credica.co.uk
W: www.credica.co.uk
Our highly configurable and extremely cost effective Collections and
Query Management System has been designed with 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.
Company Watch
Centurion House, 37 Jewry Street,
LONDON. EC3N 2ER
T: +44 (0)20 7043 3300
E: info@companywatch.net
W: www.companywatch.net
Organisations around the world rely on Company Watch’s
industry-leading financial analytics to drive their credit risk
processes. Our financial risk modelling and ability to map medium
to long-term risk as well as short-term credit risk set us apart
from other credit reference agencies.
Quality and rigour run through everything we do, from our unique
method of assessing corporate financial health via our H-Score®,
to developing analytics on our customers’ in-house data.
With the H-Score® predicting almost 90 percent of corporate
insolvencies in advance, it is the risk management tool of choice,
providing actionable intelligence in an uncertain world.
BUREAU VAN DIJK
Northburgh House, 10 Northburgh Street, London, EC1V 0PP
T: +44 (0)20 7549 5000E: bvd@bvdinfo.com
W: www.bvdinfo.com
We offer the most powerful comparable data resource on private
companies. We capture and treat private company information for
better decision making and increased efficiency, so we’re ideally suited
to help credit professionals. Orbis, our global company database has
information on 250 million companies, and offers:
• Standardised financials so you can assess companies globally
• Financial strength metrics using a range of models and including a
qualitative score for when detailed financials aren’t available
• Projected financials
• Extensive corporate structures so you can assess the complete group
– or take the financial stability of the parent into account
Credit Catalyst is a platform where you can combine information from
Orbis with you own knowledge of your customers and get dashboard
views of your portfolio.
Register for your free trial at bvdinfo.com.
CREDIT MANAGEMENT SOFTWARE
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.
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.
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.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 64

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION,
OPTIONS AND PRICING
PLEASE EMAIL:
anthony.cave@cabbell.co.uk
FINANCIAL PR
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.
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.
Proud supporters
of CICMQ
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.
Gravity London
Floor 6/7, Gravity London, 69 Wilson St, London, EC21 2BB
T: +44(0)207 330 8888. E: sfeast@gravitylondon.com
W: www.gravitylondon.com
Gravity is an award winning full service PR and advertising
business that is regularly benchmarked as being one of the best
in its field. It has a particular expertise in the credit sector, building
long-term relationships with some of the industry’s best-known
brands working on often challenging briefs. As the partner agency
for the Credit Services Association (CSA) for the past 13 years,
and the Chartered Institute of Credit Management since 2006, it
understands the key issues affecting the credit industry and what
works and what doesn’t in supporting its clients in the media and
beyond.
INSOLVENCY
Moore Stephens
Moore Stephens LLP,
150 Aldersgate Street,
London EC1A 4AB
T: +44 (0) 20 7334 9191
E: Brendan.clarkson@moorestephens.com
W: www.moorestephens.co.uk
Moore Stephens is a top ten accounting and advisory network, with
offices throughout the UK.
Our clients range from individuals and entrepreneurs, through
to large organisations and complex international businesses. We
partner with them, supporting their aspirations and helping them
to thrive in a challenging world.
Our national creditor services team has expert insights in debt
recovery which, combined with their unparalleled industry and
sector knowledge, enables them to assist creditors in recovering
outstanding debts.
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.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 65

Cr£ditWho?
CICM Directory of Services
FOR INFORMATION,
OPTIONS AND PRICING
PLEASE EMAIL:
anthony.cave@cabbell.co.uk
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.
Bottomline Technologies
115 Chatham Street
Reading
Berks RG1 7JX | UK
T: 0870 081 8250
E: emea-info@bottomline.com
W: www.bottomline.com/uk
Bottomline Technologies (NASDAQ: EPAY) helps businesses pay
and get paid. Businesses and banks rely on Bottomline for domestic
and international payments, effective cash management tools,
automated workflows for payment processing and bill review and
state of the art fraud detection, behavioural analytics and regulatory
compliance. Businesses around the world depend on Bottomline
solutions to help them pay and get paid, including some
of the world’s largest systemic banks, private and publicly traded
companies and Insurers. Every day, we help our customers by
making complex business payments simple, secure and seamless.
PROFESSIONAL BODIES
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).
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
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.
ATTENTION
PRODUCT
& 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
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.
The Recognised Standard / www.cicm.com / December 2017 / PAGE 66

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
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
THREE PRIZES OF £20 DRAWN EVERY MONTH
YOU NEED TO BE A MEMBER TO ENTER
ACROSS:
1. Scour
6. Cypher
10. Parts of aprons
14. Delete
15. Cain's brother
16. Wings
17. Notes
18. ___ fide
19. Give as an example
20. Apathetic
22. Sounds of reproof
23. Female sheep
24. Abounds
26. Deep blue
30. Anagram of "Peril"
32. Wavelike design
33. Sometimes found in gravy
DOWN:
1. Collections
2. Prune
3. Hindu princess
4. End ___
5. Beleaguer
6. A steel wire rope
7. Double-reed woodwind
8. Lairs
9. Rubber bands
10. Germs in the blood
11. Site of the Trojan War
12. Pieces of insulation
13. Views
21. Pair
25. Startled cry
26. Rapscallions
27. Person, place or thing
28. Calamitous
37. Happy cat sound
38. Aquatic mammals
39. Quick note
40. Stealthiest
42. Fuzzy fruits
43. Anxious
44. Frothy
45. Small boat
47. Charge
48. Drunkard
49. Unchallenged
56. Biblical garden
57. Forsaken
58. Accustom
59. Urgent request
60. 57 in Roman numerals
61. Wealthy man
62. Express in words
63. Blabs
64. Visitor
29. Illogical
30. Stage
31. A jaunty rhythm
33. T T T T
34. Recent events
35. Send forth
36. Optimistic
38. Wickedly
41. Hemp
42. Retaining
44. Aye
45. Move furtively
46. Drop to one's knees
47. French for "The end"
48. Cried
50. Exploded star
51. Trickle
52. Two-toed sloth
53. Pipe
54. God of love
55. Money owed
CLOSING DATE: 13 January 2018 for December's crossword
LAST MONTH'S
CROSSWORD WINNERS
Zena Maher, Colin Fyles MCICM and Lynne Von Der Recke ACICM
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.
U
W
The Recognised Standard / www.cicm.com / December 2017 / PAGE 67

There was once a Credit Controller named Jane Smith.
She worked for The Big Recruitment Co. One day Jane
made the small mistake of emailing an invoice to
Roger White at The Small Bank. It was intended for
Roger Whythe at The Big Bank, and included the
Never one to miss an opportunity to negotiate,
Roger White forced The Big Recruitment Co. to lower
their rates immediately and match those of The Big Bank.
Jane’s small mistake had big repercussions. A big result
for The Small Bank but The Big Recruitment Co. lost a lot
If only The Big Recruitment Co. had Email Guardian.
to the wrong people. And the big news is — it’s free.
Prevent small mistakes from turning big.
Get the full story and download your free copy today!
www.e-mailguardian.com
tel. +44 1634 812 300
info@e-mailguardian.com
e-mailguardian.com