Credit Management Jan:Feb 2018

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Letter to the Editor MONEY Advice Trust response to Credit Management article ‘MAT’s bailiffs figures disputed by Enforcement body’. Our ‘Stop The Knock research’ which looks at councils’ use of enforcement agents, was referenced in an article published on page nine of the December issue of Credit Management. In the piece, the Civil Enforcement Association (CIVEA) described the figures in the report as ‘misleading’ due to the fact that ‘many authorities re-issue previous years’ debts when issuing a debt for the current year’. All the data published in the report is taken from the figures we have received from the councils who responded to our Freedom of Information request. We make it clear, in the report and on our stoptheknock. org website, that the figures relate to the number of times councils referred debts to bailiffs/enforcement agents in a year period, which may indeed include re-issued debt from previous years. The report, and the figures provided by the councils themselves, are the starting point for conversations about what certain local authorities can do to improve their collection practice. I am pleased to say these conversations are well under way. After writing to over 300 council leaders about the findings, we have already received 60 responses, with a large number now considering our tailored recommendations. We know that there is good practice out there from many local authorities, and we’re keen to highlight this in our research. In the coming months, we will be looking at ways to work with local government to build on and spread this best practice as far as possible. Joanna Elson OBE, Chief Executive of the Money Advice Trust. MAT warns of the New Year hangover AN estimated 7.9 million people are expecting to fall behind with their finances this month, as a result of Christmas costs, according to new research published by National Debtline, run by the charity, Money Advice Trust. The free debt advice charity has joined with the Association of British Credit Unions (ABCUL) to issue a call for households to ‘make a plan’ for Christmas 2018. The poll of more than 2,000 British adults, conducted by YouGov for National Debtline, found that 16 percent of Britons say they are likely to fall behind in January as a result of Christmas spending, an increase from 11 percent last year and equivalent to an estimated 7.9 million people. The findings come after 37 percent of Britons said they were putting Christmas presents on credit. More than half of Britons (55 percent) said they had not saved for Christmas before December arrived, with only 14 percent reporting they had started saving up for the extra costs of Christmas before last summer. Nearly a quarter (23 percent) say they are likely to start saving for Christmas earlier than they did last year – a figure that National Debtline and credit unions say should be much higher. Mark Lyonette, Chief Executive of ABCUL, Association of British Credit Unions Limited, says credit unions across the country help their members to save towards the costs of Christmas with dedicated Christmas savings accounts which lock funds away and make them available as the festivities approach: “Even if you’re not in a position to start saving straight away, credit union borrowers are encouraged to save a small amount while they repay their loans – called Save as you Borrow – and recent research by the Fairbanking Foundation shows that 71 percent of borrowers become regular savers thanks to this approach.” moneyadvicetrust.org Record volumes for invoice finance DATA released by UK Finance shows that the invoice finance and asset-based lending sector is providing more finance to UK businesses than ever before. Matthew Davies, Director, Invoice Finance and Asset-Based Lending at UK Finance, says 2016 was a record year for the invoice finance and asset-based lending sector, with the industry supporting client turnover of £280 billion for the year: “More funding could and should be provided through invoice finance,” he says. “To unlock this, the Government should bring forward long-awaited legislation to give more smaller firms, in particular, access to much-needed capital.” So-called ‘ban on assignment’ clauses are sometimes imposed by larger businesses on their smaller suppliers and can restrict the finance options available to those supplier businesses. To address this, the UK Government is expected to bring forward revised Business Contract Terms (Assignment of Receivables) Regulations in the new year. ukfinance.org.uk >NEWS IN BRIEF BENEVOLENT HAND THE CICM is continuing to promote and champion its Benevolent Fund, available to CICM members experiencing financial hardship due to redundancy, ill health or any other change in circumstances. The assistance is not limited to membership fees; the committee would also consider applications for a wide range of support – mobility scooters, recliner chairs, disability aids and educational needs – each application will be assessed by the approving committee. There is an application form to complete which is currently being reviewed. Two educational scholarships providing CICM educational services are available each year (up to a value of £1,000) to support learners who are struggling to fund CICM qualifications due to personal hardship. The deadline for applications is July 31, and should include a letter setting out the reasons for the application. For the education scholarship, contact education@ cicm.com. Members who have been made redundant and are suffering financial hardship, can also apply for support to maintain their CICM membership for another 12 months. In these circumstances, contact cicmbenevolentfund@cicm.com. FINAL CALL THE final last few seats are going fast for the CICM British Credit Awards, the industry-leading evening to recognise the best in the credit industry. For more details contact Natasha Witter on 020 7484 9876 or email natasha.witter@ incisivemedia.com. cicmbritishcreditawards.com THIN END OF THE WEDGE OVER 100 business leaders and finance professionals gathered at the National Space Centre in Leicester for the rebrand launch of alternative finance specialists, ThinCats. Damon Walford, CDO, shared the stage with John Mould, CEO of ThinCats and parent company ESF Capital, and Ravi Anand, Managing Director of ESF Capital. “We’ve got a proven track record and institutional backing with access to diverse pools of funding with more than £200 million of committed capital ready to deploy,” John said. thincats.com CICM In Brief THIS month's briefing includes details of the CICM British Credit Awards, the Trade Credit Conference at Credit Week, how to nominate someone for the Meritorious Service Award, and the new CICM Knowledge Hub. The Recognised Standard / www.cicm.com / January-February 2018 / PAGE 8
Report claims SMEs are turning to friends for cash MORE than one in five business owners (22 percent) have said that getting funding was their biggest challenge, according to the Esme SME Study 2017, and some are turning to their friends and families for cash. The study by the online SME loan provider also revealed that almost half of business owners (47 percent) relied on their personal savings to get their business off the ground, and over a third (35 percent) dipped into their savings for additional funding. More than one in ten of business owners (12 percent) approached their family, relatives and friends for funding, with one in five (18 percent) returning for additional funding. Nearly one in six (14 percent) took 1st Credit launches suicide prevention partnership 1ST Credit is to partner suicide prevention charity Grassroots in 2018 in a bid to improve the experiences of vulnerable customers. The Brighton-based charity has trained over 8,000 people in suicide prevention and mental health. As well as training it offers a free ‘StayAlive’ app, which provides help and support to people contemplating suicide and those supporting them. With Grassroots as its chosen charity for 2018, 1st Credit will train its own staff in suicide prevention as well as raising money and helping the charity increase its reach across the financial services sector. The training is designed to ensure 1st Credit’s customer support representatives have the skills and confidence to handle calls with customers contemplating suicide. The charity uses the ASIST (Applied Suicide Intervention Skills Training) model that teaches participants how to recognise when someone is having thoughts of suicide out a business loan from their existing bank to get their business started, and a quarter (24 percent) used personal credit to receive additional funding for their business. More than two-fifths (42 percent) took out a business loan for additional funding, once they got their business off the ground. A quarter of business owners (25 percent) stated they were concerned about being rejected for a business loan, while more than one in five (22 percent) said they were worried about the cost of repaying back the loan. Finally, almost two-fifths (17 percent) claimed they were worried about getting the right amount of funding or their ability to repay the loan. esmeloans.com/ and work with them to create a plan for their immediate safety. Studies show that the method helps reduce suicidal feelings in those at risk. 1st Credit will also promote the StayAlive app to customers and their carers. The app is a free to download tool to help people who are suffering with thoughts of suicide and is a reminder to people for their own reasons for living. It also offers access to crisis support lines and a mini-safety plan for the individual. Eddie Nott, UK Managing Director for 1st Credit, says the taboo subject of suicide is too often overlooked when it comes to helping vulnerable customers. “Research suggests there is an awareness and skills gap in the debt collection industry when it comes to speaking to people who may be contemplating suicide.” 1stcredit.com prevent-suicide.org.uk Last orders for pubs and bars A growing number of pubs and bars are struggling to make ends meet, with even the biggest companies issuing profit warnings over the last few weeks, according to Ortus’ research. Recent data has shown that there has been a nine percent increase in the number of insolvencies of pub and bar companies in the last year to 482 in 2016/17, up from 444 in 2015/16. This is the first time in four years that the number of pub and bar insolvencies has risen. Credit Management believes the data is significant and shows that widely reported headwinds faced by the sector – such as slower consumer spending and higher import costs – are starting to erode the margins of even the largest companies. Some pub and bar companies are fighting back by borrowing to invest in their facilities or developing their offering to pull in more punters and boost slowing sales. Pubs and bars are increasingly using alternative finance as a suitable source of funding to fit their business needs. This will become even more critical as pubs prepare to have their £1,000 annual discount on the tax removed next year. ortussecuredfinance.co.uk Pubs and bars are increasingly using alternative finance as a suitable source of funding to fit their business needs >NEWS IN BRIEF BAG IT UP PAPER bag manufacturer, Badalov, has secured a £480,000 invoice finance facility with Bibby Financial Services. Founded in 2006, Badalov operates from a plant in Larkfield, Kent, and offers a variety of bio-degradable paper bag products with and without branding, for clients such as Pasta Remoli and Virgin Active. Vasif Badalov, Managing Director, Badalov says as it continued to gain new contracts, its previous funding partner became unable to help support the business needs: “With this flexible funding in place, we can continue to expand our product range and meet the growing demands of our customers.” bibbyfinancialservices.com DEMYSTIFYING DEBT DEBENHAMS Ottaway has launched a fixed and capped fee debt recovery product, DebtFast, with a dedicated website which contains information for creditors and aims to demystify the debt recovery process. Inspired by the theme of predictable and fixed costs advocated by Lord Justice Jackson, DebtFast is said to not only fix the costs of undisputed debt claims, but also provides costs certainty for insolvency petitions and disputes within the small claims and Fast Track. The company claims it also enhances creditor recovery prospects in debtor insolvency via its network of forensic insolvency practitioners. debenhamsottaway.co.uk RISING ANGELS UK Angel Investors are investing more, with 41 percent reporting that they invested more in 2016 than in 2015, according to new research from the British Business Bank and the UK Business Angels Association (UKBAA). The new research shows that the UK’s regional equity gap is persistent. This underlines the findings of the Bank’s Equity Tracker, which showed London continuing to experience greater levels of equity investment compared to other UK regions, with the capital accounting for 47 percent of UK deals in 2016. british-business-bank.co.uk The Recognised Standard / www.cicm.com / January-February 2018 / PAGE 9
Page 1 and 2: CREDIT MANAGEMENT CM JANUARY/FEBRUA
Page 3 and 4: JANUARY FEBRUARY 2018 www.cicm.com
Page 5 and 6: CMNEWS A round-up of news stories f
Page 7: Citizens Advice warns fitness fanat
Page 11 and 12: OBITUARY The right cuppa TATA Globa
Page 13 and 14: INSOLVENCY In debt? - then breathe!
Page 15 and 16: The Recognised Standard / www.cicm.
Page 17 and 18: INTERVIEW AUTHOR - SEAN FEAST been
Page 19 and 20: OPINION AUTHOR - Mike Hutchinson, B
Page 21 and 22: THE RECOGNISED STANDARD CICM Britis
Page 23 and 24: OPINION AUTHOR - Katy Walker THE re
Page 25 and 26: Skills Builder Special business and
Page 27 and 28: The next evolution in credit manage
Page 29 and 30: CURRENCY UK PLANES, TRAINS AND PERA
Page 31 and 32: OPINION AUTHOR - Chris Sanders Chri
Page 33 and 34: OPINION Level 1; Level 5 (Senior) a
Page 35 and 36: For more information call 01206 322
Page 37 and 38: THE CREDIT CONTROL RECRUITMENT SPEC
Page 39 and 40: PAYMENT TRENDS Sector Scotland 13.9
Page 41 and 42: View our digital version online at
Page 43 and 44: OPINION AUTHOR - Sean Feast not app
Page 45 and 46: LET’S DO CREDIT WEEK! Here’s ho
Page 47 and 48: IN BRIEF: Health and Social Care Bu
Page 49 and 50: Leader or follower? CICMQ accredita
Page 51 and 52: Supported by Headline partner EUROP
Page 53 and 54: ITSWISETOSTAYALERT! SANCTION &PEP D
Page 55 and 56: Proud supporters of CICMQ With over
Page 57 and 58: New CICM members The Institute welc
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BRANCH NEWS From the Mary Rose to B
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SENIOR CREDIT CONTROLLER MANAGE A L
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Cr£ditWho? CICM Directory of Servi
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Cr£ditWho? CICM Directory of Servi
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Credit Management Jan:Feb 2018

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