Credit Management March 2018


The CICM magazine for consumer and commercial credit professionals




MARCH 2018 £12.00


Winners of the

CICM British

Credit Awards


Chain Reaction

The cost of being in

– and out – of debt

People Power

How self-serve is

supporting customer

engagement. Page 14

Taken On Trust

Sean Feast speaks to

Joanna Elson of the Money

Advice Trust. Page 22




With over 2,400 qualifications awarded in the last

three years, CICM is the recognised standard.

Find out more about flexible options to suit your

role and lifestyle.


MARCH 2018






David Kerr looks at the Official

Receiver’s and special manager’s roles

in the liquidation of Carillion.


John Ricketts takes a look back to the

beginning of the century and the Clink

prison and ponders what has changed.


The tactics used by DCAs to ease the

pressure on customers to repay their



The challenge from supermarkets

against card companies and the delays

and extra fees charged to process



Joanna Elson shares stories of her time

as a House of Commons Researcher and

her love of the great outdoors.


In the latest in the series of country

profiles, Adam Bernstein turns his

attention to Austria.





CICM has started an exciting

programme to introduce a new

generation of CICM qualifications.



Chartered Institute of Credit Management

The Water Mill, Station Road, South Luffenham



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 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




Managing Editor

Sean Feast

Deputy Editor

Alex Simmons

Art Editor

Andrew Morris

Telephone: 01780 722910


Editorial Team

Imogen Hart and Iona Yadallee


Anthony Cave

Telephone: 0203 603 7934



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The Recognised Standard / / March 2018 / PAGE 3


We never used to have that

nonsense with carbon paper

Sean Feast

Managing Editor

DOUGLAS Adams, he of

Hitchhikers fame, once

famously said ‘we are

stuck with technology

when what we really want

is just stuff that works’.

Ask anyone in my office about my view on

technology and they will tell you I am not

its biggest fan. Computer kit that is billed as

an ‘enabler’ to make my life easier, appears

to be constantly conspiring against me to

make even the simplest of tasks difficult

and painful.

Whereas I am as happy as Larry writing

about sophisticated weapons systems

and sensing and control technologies

(in a life outside of credit) that I have no

right to understand, I still only use my

Mac as a glorified typewriter and am

continually irritated by the reluctance of

our high-tech wireless HP printer to print

when I command it to. We never had that

nonsense with carbon paper. And as for the

psychedelic ‘wheel of death’ that appears

with alarming regulatory on my screen,

what more can I say?

But while I am not especially technology

savvy, neither do I like to think of myself

as a luddite. (Others may disagree. That is

their right.) I can see how technology has

benefited people and society in the past,

and will continue to do so in the future.

I look at how technology helps people

to live in their homes for longer, with

the advent of telecare; I think of how

precision engineering has transformed

our manufacturing capabilities; I marvel

at the ability for surgeons to perform

operations by watching a television


Within the credit industry too,

technology is helping to make us better

at what we do, driving greater efficiencies

and supporting our decision making. In

the world of consumer debt collection, it

is helping a new generation of customer

to ‘self-serve’, and better engage and

interact with their creditor in ways that

are familiar and productive (see article on

page 14). Artificial Intelligence (AI) and

Virtual Reality (VR) are now increasingly

commonplace, and no longer just a

future imagined by a Tomorrow’s World


But while we should celebrate and

embrace new technology, and I include

myself in that sentiment, we should never

lose sight of just how remarkable we can

be as individuals. For those who think

robots will replace humans in virtually

every walk of life, I’ll leave you with this

thought from writer and philosopher

Elbert Hubbard: ‘One machine can do the

work of fifty ordinary men. No machine

can do the work of one extraordinary


The Recognised Standard / / March 2018 / PAGE 4

For more information call 01206 322 575

The Recognised Standard / / March 2018 / PAGE 5


A round-up of news stories from the

world of consumer and commercial credit

Written by – Sean Feast and Alex Simmons

CICM members take

long-term view on Brexit

Philip King FCICM

Chief Executive of the CICM

It is undoubtedly affecting

business confidence, and

while our members are

clearly taking a pragmatic

‘wait and see’ approach to

their credit risk policies, it

is similarly clear that their

skills are going to be much

in demand in the future.

MEMBERS of the Chartered

Institute of Credit Management

(CICM) appear untroubled by the

impact of Brexit on their credit

risk policies in the short term, but are more

anxious about the effect it may have on new

business opportunities.

In the preliminary findings of an

exclusive report by Sheffield Hallam

University for the CICM, 70 percent said that

Brexit would have ‘marginal’ or no impact at

all on their credit risk policies over the next

12 – 24 months. Beyond this period, they

would review their terms and familiarise

themselves with the post-Brexit plans of

their customers. They also believe that the

credit manager’s role will continue to evolve

to have an even greater ‘risk’ focus.

In terms of new business opportunities,

however, a similar percentage (70 percent)

said that new business would be affected

‘significantly’ or ‘marginally’ in the next

two years, and feared an increase in tariffs

and other barriers to trade. Almost half (47

percent) believe that export markets will be

affected, that the cost of raw materials will

rise and companies may have to lower their


Philip King, Chief Executive of the CICM,

believes that the uncertainty of Brexit is still

looming large: “It is undoubtedly affecting

business confidence,” he says, “and while

our members are clearly taking a pragmatic

‘wait and see’ approach to their credit risk

policies, it is similarly clear that their skills

are going to be much in demand in the


As well as Brexit, the research also

looked at the impact of the new General

Data Protection Regulation (GDPR). Only a

quarter (27 percent) said that it will be of

benefit, and many felt that it would simply

make their jobs more difficult. Gaining

access to data will be more time consuming

and complex, and could actually affect

new business. Only 62 percent believed the

changes would benefit the consumer, but

that companies would be working harder to

protect the data they held.

The role of technology was also explored,

with nearly all of those questioned agreeing

that new technology had significantly

impacted their business processes, people,

and opportunities over the last three years.

The single biggest benefit was seen to be an

improvement in operational efficiency.

The qualitative research was undertaken

by four University students studying in

their final year for a BA in Accounting and

Finance. The results were presented at the

CICM Think Tank in February, and will be

reported in full in a later edition of Credit

Management. The research will also be

available to members to view on line.


ONLY a quarter (26 percent) of small-and

medium-sized enterprises (SMEs) think their

high street bank is able to meet their funding

needs, research shows.

Close Brothers Group surveyed 900 SMEs in

the UK and said the findings suggest high street

banks are lacking the specialist knowledge

needed to support small businesses.

Many SMEs are unaware of all the finance

options available to them and will therefore

go to the biggest banks as the first port of call

when looking for finance. The high street bank

rejection rate for first time borrowers is 50

percent, and a third of SMEs give up after their

first rejection for funding.

Those SMEs who do access finance often

opt for the wrong type of products, which could

put them at risk and hinder their growth, Close

Brothers warned.

For example, an SME may choose an

overdraft to finance new equipment or

technology and run the risk of the bank being

able to withdraw the facility at any time, leaving

little or no time to repay the money.

Credit card use is also prevalent among

SMEs, with 47 percent using a personal card

for business purposes. Meanwhile, one in eight

SMEs use their personal savings for finance.

Just 17 percent of SMEs said they feel their

high street bank fully understands the specific

challenges of their business.


EXPORTS of British gin have broken records again

this year, with sales overseas breaking the half a

billion-pound mark for the first time, according to the

latest figures from HMRC. Some £530 million worth

of British gin was sold abroad in 2017, the equivalent

of around 189 million (70cl) bottles of British gin

exported last year up from around 177 million

bottles in 2016. Thanks to a surge in popularity in

the juniper-based spirit, which has been dubbed the

‘ginaissance’ British gin exports have more than

doubled since 2008 when sales overseas were worth

£258 million. Britain sends more gin around the

world than it does beef, and exports of the spirit have

increased 12 percent by value and seven percent

by volume, in the last year.


The Recognised Standard / / March 2018 / PAGE 6

First supplier member joins CSA

Styles&Wood has become a Supplier

Member of the Credit Services Association

(CSA), the first to join the extended category

of membership since it was announced in

November last year.

Arctick, an award-winning enterprise

Governance, Risk and Compliance (GRC)

management software solution, has been

developed by Styles&Wood to support CSA

members and others within the credit

industry with regulatory compliance.

Peter Wallwork, Chief Executive of the

CSA, says that Supplier Member status

will provide Styles&Wood with a range of

benefits: “It will afford them even greater

visibility of the collections, debt sale and

purchase market and in turn gives the

CSA’s 300-strong membership greater

visibility of a company and solution that

can help support their operations and

regulatory compliance.”

Arctick’s Managing Executive, Ian

Wilson is excited by the opportunities

that Supplier Member status will bring:

“We look forward to developing a close

working relationship with the Association

and its members,” he explains. “Our

Arctick GRC RegTech solution enables

firms to implement and evidence robust

governance controls, aligned with the

stringent expectations of the FCA under the

latest senior management arrangements,

systems and controls.”

As a CSA Supplier Member, the Arctick

team will be able to attend member-only

meetings and other CSA events such as

compliance meetings, roundtables, forums

that offer sponsorship and profile building

opportunities. “It also provides access to

high quality discounted accredited training,

compliance support and updates, a Supplier

Directory listing, and we’d encourage any

supplier that is actively engaged within the

credit industry to seriously consider the

advantages that Supplier Membership can





METRO Bank claims it will create 900

new jobs in 2018, increasing the number

of employees to almost 4,000. A key

area of investment is its apprenticeship

scheme, with the bank last year becoming

a certified employer provider, meaning

that as well as hiring apprentices, it says

it is also able to deliver apprenticeship

training through its dedicated in-house

facility, Metro Bank University. Elsewhere,

TSB says it will create 15 new relationship

manager roles to help support small

businesses and entrepreneurs – on

the ground in their local communities,

delivering the kind of banking experience

TSB believes small businesses need.

The bank is now hiring in Manchester,

Birmingham, Leicester and Edinburgh –

and this is just the start of things to come.



The organisation behind the Current Account Switch Service, Bacs Payment Schemes

(Bacs), has welcomed the announcement by UK Finance that the account opening process

has been made simpler for small business owners. Account providers will now require

the same basic set of information from new small business customers looking to open or

switch an account.

LLOYDS Banking Group plans to raise

the proportion of staff from black, Asian

or minority ethnic (BAME) backgrounds

to eight percent of senior management

by 2020. The bank is the first FTSE 100

company to set a formal target to improve

ethnic diversity among its top executives.

It also aims to increase the proportion

of non-white staff to ten percent of its

total workforce by the end of the decade.

Lloyds said 8.3 percent of its 75,000 staff

and 5.6 percent of its 7,500 senior managers

currently come from a BAME background,

compared to 12 percent of the

UK labour force, and 14 percent of the UK

population. The bank, which owns Halifax

and Scottish Widows, estimates one in

ten of its customers are from a non-white


P2P analyst first to break cover on risks of losing cash

PEER-to-peer analysis firm 4th Way is

urging investors to diversify after it claims

stress testing revealed the odds of losing

money in a severe recession can be 10

times higher when lending to just one

borrower on a P2P platform.

The research applied international

banking stress tests to P2P platforms such

as Zopa, Funding Circle and RateSetter,

and found when lending to 100 borrowers,

investors have just a 0.1 percent chance of

losing 20 percent or more of their original


The research added that all the losses on

bad loans are either partly or completely

offset by interest earned over the years

on good loans, and by any additional

protection in place, such as reserve funds

to cover expected bad debts. Re-lending in

the years prior to and after the recession

further lowers the risk, 4th Way said.

The research also found that those

lending to prime buy-to-let mortgage

borrowers had a less than one percent

chance of losing money. In contrast,

investors lending to either a single prime

borrower for a personal loan or to one

super-prime business borrower could see

the odds of losing most of their money rise

to three percent.

However, when lending to 100 prime

individuals or super-prime business

borrowers, the risk of losing 10 percent or

more of their total loans was no more than

0.1 percent.

4th Way also assessed five of the biggest

lenders – Zopa, Funding Circle, RateSetter,

Assetz Capital and FundingSecure – and

found this group has collectively paid out

more than £600 million of interest versus

under £200 million in bad debts.

“Lending money to creditworthy

business, personal and property borrowers

in straightforward loans is an asset class

that can be just as stable and reliable

for individual investors as it has been

for institutional money lenders since at

least the invention of credit scores,” Neil

Faulkner, Managing Director of 4thWay,


“This is not to say that lenders will only

lose money by not diversifying. There will

be times when some lenders will do worse

despite doing so, especially where they

choose to take higher risks.

“But not all investors are taking simple

steps to diversify and this is something

that the platforms themselves have to take

more responsibility for. Information about

minimum loans should be made clearer

so investors can work out for themselves

where to spread their money.”

The Recognised Standard / / March 2018 / PAGE 7




THE CICM’s Technical Committee held

its latest meeting on 6 February 2018,

where it discussed and debated various

key issues including: A response to The

Ministry of Justice consultation on Default

County Court Judgements; The launch of

an industry-wide Credit Reference Agency

Information Notice (CRAIN) in readiness

for the implementation of the new General

Data Protection Regulation (GDPR) on

25 May 2018; The announcement by The

Insolvency Service that an assessment

of the impact of the voluntary industry

measures introduced in November 2015

to improve the transparency of connected

party pre-pack sales in administration is

to be undertaken; a response to The HM

Treasury consultation on Breathing Space;

a response to The BEIS consultation on

retention payments in the construction


Support packages to prop up

Carillion suppliers

A further package of support for the

businesses and workers affected by

Carillion’s liquidation has been welcomed

by Business Secretary, Greg Clark.

Through delivery partners that include

all the major high street lenders, the British

Business Bank will provide support to make

available up to £100 million of lending to

small businesses who may not have the

security otherwise needed for conventional

bank lending using its Enterprise Finance

Guarantee programme.

This will be of benefit to small

businesses including the chain of

subcontractors to Carillion who may not

have sufficient assets as security to access

conventional loans. These guarantees can

be used to support overdraft borrowing and

refinancing of existing debt.

The UK’s leading banks have also

furthered their commitment to provide

support to those affected with UK

Finance confirming additional support for

personal banking customers concerned

about overdraft, mortgage or credit card

repayments, as well as further financial

support for small businesses to provide

short-term relief to help keep them afloat.

Greg Clark says the Government will

support SMEs that are owed money by

Carillion so they can continue trading:

“The banks have responded to my request

by agreeing to support businesses and

individuals affected. This further guarantee

will help those businesses who may not be

able to provide the usual security for a loan.”

Keith Morgan, British Business Bank

CEO, says the Enterprise Finance Guarantee

(EFG) is an important option for smaller

businesses who need access to finance,

but may not be able to meet a provider’s

normal security requirements: “To help in

these exceptional circumstances, we have

designed additional flexibility into EFG that

could be particularly suitable for firms in the

Carillion supply chain. We would encourage

lenders to work with their customers to use

these new flexibilities to meet their needs.”

This package is in addition to the more

than £200 million announced by Lloyds

Banking Group, HSBC and RBS.

This will be of benefit to small businesses including

the chain of subcontractors to Carillion who may

not have sufficient assets as security to access

conventional loans.


THE 2018 CICM British Credit Awards was

held at the Lancaster Hotel on February

8 to celebrate the best of the best in the

industry. To read all about the winners

and see a selection of photos from the

glittering ceremony turn to the supplement

on page 35.


ILLEGAL money lender, Dharam Prakash

Gopee has been sentenced to three and

a half years imprisonment by a Judge

in Southwark Crown Court after guilty

verdicts for offences under the Consumer

Credit Act 1974 and the Financial Services

and Markets Act 2000. Between 2012

and 2016, Mr Gopee acted as an illegal

lender despite being refused a consumer

credit licence by the OFT or securing

any authorisation from the FCA. He

loaned money to vulnerable consumers

at high rates, securing the loans against

their property, and then sought to take

possession if they failed to pay. Over

the four-year period, his own loan books

showed that he issued approximately £1

million of new loans and took in at least

£2 million in payments from old and new

consumers, none of whom were aware that

did not have a licence.

Q1 D2R data shows large firms

still paying invoices late

Almost a third of all invoices are being paid

late, according to new official statistics,

starving small business and the supply

chain of vital cash.

The average reported time to pay was

39.73 days with just less than half (49.45

percent) paid within 30 days. More than a

third (34.84 pwercent) were paid between 31

and 60 days, and 15.71 percent were paid

later than 60 days. The most troubling

statistic, however, is that almost a third

(31.22 percent) were paid beyond the agreed


The figures, produced exclusively for the

Chartered Institute of Credit Management

(CICM) by Graydon, the credit information

and data intelligence business, stem from

the new Payment Practices Reporting

Regulations that oblige larger firms with

a ‘Duty to Report’ their payment

performance. To date some 540 companies

have reported.

Philip King, Chief Executive of the CICM,

says that the first Quarter results confirm

the initial snapshot findings in January, and

that there are alarming trends: “If almost a

third of invoices are being paid late then the

suppliers are seeing a hole in their cashflow

which is a major concern. For many small

businesses, it’s about more than just the

balance sitting in the current account.”

Mr King repeated his warning, however, to

look deeper into the figures when assessing

risk: “One company, for example, reports

that zero invoices are paid late – which

looks good – yet the average time to pay is

69 days, and only seven percent of invoices

are paid within 30 days, and that’s far less

encouraging. Its maximum contractual

payment terms are 75 days.

“Contrast that with another company that

reports paying 57 percent of invoices outside

the agreed terms, yet 52 percent within 30

days, 28 percent between 31 and 60, and 20

percent over 60 days. Its average time to pay

is 56 days. Which company is the better bet?

It is easy to draw conclusions that might be

misleading – both good and bad. Sometimes

you need to read between the lines.”

The Payment Practices Reporting

Regulations came into effect on 1 April 2017.

Eventually, all of the approximately 15,000

large companies will be obliged to report on

a half-yearly basis.

The Recognised Standard / / March 2018 / PAGE 8

BoE warns of new threat to SMEs

SMEs that use their own commercial

property as loan collateral could be hit in

the event of a market adjustment, the Bank

of England (BoE) has warned.

Three quarters of SMEs in Britain use

their own commercial property as collateral

to secure bank loans, according to figures

from the central bank. But Alex Brazier,

Executive Director for Financial Stability

Strategy and Risk, warned that if SMEs

secure these loans at stretched commercial

property values, they can be exposed to any


“That channel can be pernicious if

companies investing in commercial

property at the top of the cycle are forced

to reduce debt as prices fall and they break

their loan covenants,” he says.

“They can be forced into sales of property,

driving prices down even further and

making life even more difficult for those

companies in the wider economy that have

secured their debts on their property.”

In a speech to the Brevan Howard

Centre for Financial Analysis, Brazier

reiterated the BoE’s warning last year

that commercial property prices in the

UK are stretched and are vulnerable to

repricing – either through an increase in

long-term interest rates or an adjustment

Protecting the


CITIZENS Advice has welcomed the

announcement by the Department for

Business, Energy and Industrial Strategy

(BEIS) of a consultation on data sharing

between energy companies and the

Department for Work and Pensions to

better identify energy customers who

should be covered by the Ofgem’s safeguard


Gillian Guy, Chief Executive at Citizens

Advice, says identifying vulnerable energy

customers not currently covered by the

safeguard tariff is essential to better

protect people from sky high bills: “This

consultation takes us closer to ensuring

that millions more vulnerable energy

customers get the protections that are so

sorely needed.

“These proposed data matching powers

must be brought into force as soon as

possible to ensure lasting protection for

this wider group of vulnerable customers

as any delay leaves them exposed to

unjustifiably high energy costs.

“To make this scheme work it is essential

that there are robust protections of people’s

information and that companies are clear

with consumers about how it is being used.”

That channel can be

pernicious if companies

investing in commercial

property at the top of

the cycle are forced to

reduce debt as prices

fall and they break their

loan covenants

of growth expectations. “At the UK-wide

level, commercial property prices rest on

persistently low interest rates but at the

same time, they’re factoring in typical

rental growth prospects and a degree of

uncertainty around them,” Brazier said.

“It seems unlikely that rates can be so

persistently low without either weaker

growth prospects or more uncertainty.”

He warned that even if the ‘magic

combination’ of persistently low rates

and historically typical rental prospects

comes true, valuation methodologies

point to prices ten percent below today’s


This consultation takes us closer to ensuring that

millions more vulnerable energy customers get the

protections that are so sorely needed.



Nausicaa Delfas


THE Financial Conduct Authority (FCA) has

appointed Nausicaa Delfas as the Executive

Director of International. Nausicaa will

be responsible for setting and growing

the FCA’s strategy for international

engagement, and leading its delivery. This

will involve leading relationships with

foreign regulators, governments and

other stakeholders, and facilitating the

FCA’s work to shape the global regulatory

agenda and international policy.


LINGERIE tycoon Baroness Michelle Mone

has teamed up with her billionaire venture

capitalist partner Doug Barrowman to

launch a peer-to-peer platform powered

by its own dedicated cryptocurrency. The

pair have launched an initial coin offering

(ICO), with a pre-sale going live on 1 March,

to develop a venture capital investment

platform called EQUI. Investors will be

able to use EQUItokens to acquire stakes

in venture capital projects identified by

Barrowman and his team. Mone, who

founded the lingerie company Ultimo,

and Barrowman are founders of the

platform and are supported by an advisory

board of entrepreneurs including Mark

Pearson, the founder of MyVoucherCodes

and experts within the fields of

investment, cryptocurrency and law.


THE latest Aldermore Future Attitudes

report reveals that just under three quarters

(73 percent) of SMEs, some 4.16 million

bosses, are planning to work past the

current state retirement age, with more

than a third (35 percent) intending to

work well into their 70s. The report, which

surveyed over a 1,000 business decisionmakers

across the UK, found that almost

two thirds (63 percent) say they would like

to be retired by the time they are 65, with

nearly half (47 percent) saying they would

ideally like to give up work between the

ages of 56 and 65. However, less than two

fifths (37 percent) of respondents believe

they will be able to do so, and more than

one in ten (11 percent) maintain that they

will never be able to retire.

The Recognised Standard / / March 2018 / PAGE 9




The CICM Advisory Council elections

have now started and members are being

encouraged to consider standing for one of

the 23 vacancies available. Those elected

will provide guidance and help steer the

direction of the Institute.

Visit: or email to find out more.



EQUIFAX has launched technology to

support Commercial Credit Data Sharing

(CCDS), part of a scheme implemented

by the last Government to give lenders a

comprehensive picture of the financial

health of companies with a turnover of up

to £25 million.

The CCDS uses data from nine banks

and will be able to provide lenders with

information on a company’s cash flow,

debit and credit turnover, alongside

minimum and maximum balances.

The firm says this will be of particular

benefit to SMEs that rarely apply for

finance and have not built up a traditional

credit score. It should also make it easier

for smaller firms to access funding. The

CCDS comes ahead of new EU General

Data Protection Regulation, which is due to

come into force from May.



The CICM is looking for an experienced

Business Development professional to

manage and develop commercial activity

for the Institute. An understanding

of credit management would be an

advantage but is not essential.


for further details.

CICM In Brief

This month’s briefing includes details of

the new CICM Mentor Hub, the CICM Trade

Credit Conference at the Credit Summit on

15 March, new Duty to Report data, and free

webinars as part of the Shared Services

Forum’s Big Share Week.

Businesses are not saving

for a rainy day

BUSINESSES are failing to put enough cash

into savings to cover unforeseen events,

research from Aldermore has claimed.

The research found self-employed and

small businesses are holding inadequate

amounts of savings, leaving them

unprepared for times where they may not

be able to work such as through illness.

One fifth of businesses said they have no

cash savings, while four in 10 hold less than

£1,000. Fewer than one in 10 of those firms

with a turnover of less than £10,000 held

more than £1,000 in savings.

Despite the low level of savings, more

than half, 54 percent, said they have had

periods where they have been unable to


earn money because of ill-health.

Aldermore has been calling for the

establishment of an entrepreneur ISA

that could follow a similar model to the

help-to-buy ISA (HISA) but rather than

allowing money to be put aside tax free

for a property deposit, it could be used to

launch a business. Similar to the HISA,

the Government would pay a 25 percent

matched bonus on contributions worth

up to £3,000. Aldermore is also calling for

a small business savings allowance that

would let sole traders, limited companies

and partnerships earn up to £4,000 of

income from savings, tax-free per year.

Alan Watson –

An Appreciation by Nigel Price

ALAN Watson, a long-time member and

ardent supporter of the CICM, died recently

after a sudden and rapid deterioration

in his health, at the age of 78.

Alan began his career in credit management

with the Mathew Hall business,

moving to Briggs Amasco and then on to

Tarmac, before crossing over to the world

of insolvency in 1981, with a move to Cork

Gully. This gave Alan a role, to which he

was admirably suited, in advising and assisting

credit professionals, particularly

within the construction industry, when

they were faced with the prospect of bad

debts due to the potential, or actual, insolvencies

of customers.

As well as giving support on specific

customer problems, Alan also spent a

great deal of time in giving talks and passing

on his extensive knowledge, and compendium

of ‘war stories’, to gatherings of

Institute members and his vast array of

commercial client contacts, which must

number in their hundreds.

After admiring his professionalism as

a competitor, in the world of insolvency

work, for many years, I was lucky enough

to have the privilege of working alongside

him for 15 years or so, when, after retiring

from Cork Gully, in 1999, Alan came

to work with me at Moore Stephens and,

later, at Begbies Traynor. Unsurprisingly,

Alan’s loyal and extensive group of credit

manager contacts, which he referred

to as ‘the friends’, followed him and we

then jointly hosted their industry credit

forum, affectionately known as ‘the Bath

meeting’, which Alan had run for many


That forum still meets today and his

memory will live on within it. We were

all delighted that Alan was able to join

us at our November meeting, last year,

little knowing that it would be the last

time that he would grace us with his presence.

One member of that forum, Brian

Lewis of Hanson summed him up very

well, when he said: “I was lucky enough

to know Alan Watson for almost 30 years

and worked with him for a short time at

PwC, where we shared the same cell. He

always referred to me thereafter as his excell


“Throughout his life, Alan treated

everyone he met with the same dignity,

respect and thoughtfulness and no small

amount of humour. Alan was a wealth of

knowledge regarding all things insolvency.

No question was too daft, he responded

just the same, then took the mickey

out of you! Alan was great company, a

great mate and a great man.”

As well as possessing, and willingly

passing on, his encyclopaedic knowledge

of credit management and insolvency,

Alan was also one of the very best people

you could ever be lucky enough to meet

and he possessed a keen sense of humour.

He loved mixing with friends, colleagues

and meeting new people, and had a wonderful

talent for making acquaintances,

both old and new, feel incredibly valued

and totally at ease.

All in all, Alan was an exemplary professional,

a loyal and very able colleague,

a true gentleman, in every way, but also

great fun to be with. He was an all-round

‘good bloke’.

The Recognised Standard / / March 2018 / PAGE 10


The special manager

The curious case of Carillion’s collapse and the

unusual government intervention.


David Kerr

LEAVING aside any claims

made by those in the football

world, the title special

manager has cropped up in

recent reporting of one of the

very significant insolvency

cases. Those following the coverage of the

Carillion collapse in January (with its £1.5

billion of debt) will have noted perhaps that

the usual references to administrators have

disappeared, to be replaced by mention

of the Official Receiver (OR) and special


So, what is a special manager, how does

that role differ from that of an administrator

or liquidator, and why is there one in this

case? There was talk in the media of an

administrator being appointed at one

point, but in the end the company went into

compulsory liquidation – in other words it

was wound-up by the court.

A number of factors have to be present to

facilitate an administration in a case where

some ongoing trading is essential, and not

least among those is a source of funding.

Whatever the reasons in this particular case,

the result was a petition to the court for a

liquidation. As with any such petition, once

the court has made a winding-up order, or

as in this case an order for a provisional

liquidation, the company’s affairs fall into

the hands of the Official Receiver.

Compulsory liquidations are relatively

rare, compared to the more common

voluntary liquidation. The recentlyreleased

figures for 2017 show there were

under 2,800 compulsory liquidations in the

year, compared to approximately 12,000

creditors’ voluntary liquidations; and

compulsory liquidations are in decline. The

provisional figure for Q4 is down nearly 25

percent on the same period in 2016.


Surprising then to see this procedure used

in such a high-profile case, especially as

in most compulsory liquidations the OR is

dealing with companies that have closed

or are being shut down, trading having

ceased. In the Carillion case, there were

rather special circumstances and the

need for special measures. The company

was involved in many very substantial

contracts – a number of those where it had

been engaged by the Government to run

building projects for the public sector, such

as hospitals. It was the UK’s second-largest

construction company, so an overnight

shut-down and complete cessation was

clearly not a sensible option. Its complex

supply chain was also a factor, with the

Government wanting to support continued

trading amongst creditors.

The OR’s role is to take charge of the

company’s assets and ensure that essential

matters are dealt with; it is largely a

holding role, often in a case like this with

a view to appointing a liquidator in due

course. Indeed, in this case, the OR is

provisional liquidator – a mechanism

by which a liquidator can be appointed

at short notice. The OR is part of the

Government machinery – the liquidator of

last resort in some senses, and part of the

Insolvency Service – an executive agency

of the Department for Business, Energy &

Industrial Strategy.

So in one sense at the moment the

company is in state hands, but the OR’s

offices do not have the resources to run

a company the size and complexity of

Carillion. This is where the private sector

comes in (ironically perhaps given some

of the debate triggered by the Carillion

collapse). The special manager is a looselydefined

role, but one provided for in statute

– essentially, an appointment of a specialist,

accountable to the OR, to help deal with the

issues on the ground, and help the OR map

a way forward. The court sets the terms

of the special manager’s remit. PwC has

been appointed to carry out this function –

ensuring essential contract works continue

and key staff are retained and paid. In

due course, the provisional liquidator will

be replaced by a (permanent) liquidator,

who will take over the OR’s and special

manager’s responsibilities.

One aspect will remain with the OR.

In its role as investigator, the OR will look

at the conduct of the directors and report

to colleagues in BEIS on whether any

disqualification proceedings should be

commenced. That is not to comment on

the directors’ conduct in this case – it is a

requirement in every liquidation.

So, we have seen the rare appointment

of a ‘special one’, but (perhaps as in other

walks of life) it is a short-lived appointment!

David Kerr MCICM is the Chief Executive

of the Insolvency Practitioners Association


The Recognised Standard / / March 2018 / PAGE 11



AUTHOR – John Ricketts FCICM

The Recognised Standard / / March 2018 / PAGE 12


John Ricketts considers the true ‘cost’ of debt to the

individual, and whether government should be looking

closer to home for the solution.

WHEN the government

called recently

for evidence to

gain further insight

about how best to

design, implement,

administer and monitor a statutory debt

management plan (DMP) and a six-week

breathing space scheme, it set me thinking.

It made me wonder just how far, as a

nation, we have come in the treatment of

fellow citizens who have the misfortune

of being in debt.

There is a quotation on the wall of our

business’ reception area, that we call ‘an

ode to treating customers fairly’ (TCF). It

reads: ‘How far you go in life depends on

you being tender with the young, compassionate

with the aged, sympathetic

with the striving and tolerant of the weak

and strong, because someday in life you

will have been all of these’. It was originally

written by George Washington Carver

(1864-1943), a man born into slavery

who eventually reached high office and


So as a society, how compassionate

and tolerant are we, and how far have

we progressed in our management and

responses to those in debt?


Historically, it was commonplace to be

imprisoned for being unable to pay one’s

debts. And it came at a cost. During the

18th and early 19th centuries, more than

half of all prisoners were debtors, and a

few years into their sentence, they could

actually be more in debt than they were

when they first arrived. This is because

while having no money put them in

prison in the first place, once there they

had to pay for their keep. This put them

further in debt, without the possibility of

release until they had paid their creditors

in full.

When the Credit Services Association

(CSA) was formed in 1906, there were still

11,500 people in debtors’ prisons in the

UK for the sole offence of being in debt.

The most famous was the Clink prison,

which had a debtors’ entrance in Stoney

Street. This gave rise to the British slang

term for being in prison or ‘in the clink’.

Its location also led to the term ‘stoney

broke’ for someone who is financially


I’d like to think that such days are long

behind us, but are they? It is still possible

to be put in prison for some priority debts

such as council tax or business rates, but

only as a last resort and we certainly do

not throw people into prison any more,

simply for not having any cash or assets.

But ironically, and perhaps a little

worryingly, there is still a ‘cost’ to being

in debt, although not by paying for your

own keep in jail. Putting to one side the

fee-charging Debt Management Companies

(DMCs), nearly all of the modern day

‘formal’ options for managing debt come

at a cost and with terms and conditions attached

that some would argue are close to

denying an individual their liberty.

Consider, for example, the Individual

Voluntary Arrangement (IVA). Depending

on who your creditors are, and the

amount of your monthly contribution,

the ‘cost’ of an IVA to you could amount

to either the first five payments into the

IVA, or £2,000.

A Debt Relief Order (DRO), on the other

hand, will cost you £90 – the amount

the Insolvency Service charges to process

a DRO application. You can't get any discounts

or exemptions like you can with

bankruptcy fees, so crucially the full £90

needs to be paid before your application

can be submitted.

Want to make yourself bankrupt? If

you apply for your own bankruptcy, you'll

need to pay an adjudicator fee of £130 and

a deposit of £550. This means you'll need

to be able to pay £680 just to start the process

(amid reports from the debt advice

sector suggesting that some customers

are saving for more than a year just to be

able to declare themselves bankrupt!).

Odd, when you consider that the reason

for declaring yourself bankrupt is that

you have no money to pay for anything!


So, is there an alternative? I believe the

answer lies within the debt collection industry

itself. Although recently a headline

unfairly described it as a ‘plague’, professional

debt collection agencies have, in

fact, long been a solution to debt, rather

than making matters worse.

The government, for example, has

been consulting on a six-week breathing

space scheme as though this is something

new and dramatic. It isn’t. It is already

part of the CSA’s Code of Practice, and has

been for many years. The relevant clause

states that our members will …’suspend

any debt collection where a customer

demonstrates they are seeking financial

assistance and provide the customer

breathing space of at least 30 days. Additional

forbearance should be considered

where appropriate.’

The most famous was the

Clink prison, which had

a debtors’ entrance in

Stoney Street. This gave

rise to the British slang

term for being in prison

or ‘in the clink’.

The government has also been

consulting on a statutory DMP. With a

debt collection industry already adhering

to either the Financial Conduct Authority’s

rule book, the CSA Code of Practice,

or both, forbearance, affordability and

fair outcomes are bye-words of our modern-day

debt collection profession.

There is unfortunately a habit among

successive governments and their advisors

to seek new answers to old problems,

when the solution is already there. This

is true of the most recent call for evidence.

We appreciate there are some organisations

that do not offer customers a

breathing space at all, never mind as

effectively as we do, and we agree that

needs to change. We would therefore

urge Ministers to take a closer look and

learn from the positives that already

exist in the debt collection industry

and more specifically the CSA Code of


John Ricketts FCICM is President of the

Credit Services Association and Managing

Director of Ardent Credit Services.

The Recognised Standard / / March 2018 / PAGE 13


AUTHOR – Heather Greig-Smith



How are DCAs engaging with customers in this

social media and smartphone era to make repaying

debts easier?

The Recognised Standard / / March 2018 / PAGE 14


MODERN collection

agencies have long

since abandoned the

term ‘debtor’ – a word

that comes loaded with

stigma and judgement.

Instead, they refer to those in debt as their

customers, chasing high net promoter

scores and aiming to offer positive

experiences and financial empowerment.

“As an industry, the term ‘debtor’ is

hardly used now, and we’ve referred to our

account holders as customers for many

years to develop rapport and avoid any

negative connotations of the word ‘debtor’,”

says Leigh Berkley, Director of External

Affairs and Development at Arrow Global.

Julian Winfield, UK Country Manager

for Hoist Finance takes a similar stance,

but says that if the industry is serious

about treating customers fairly, and

treating debtors as customers, then it

has to look at the customer journey, and

improve their experience: “We have to

look at the ‘traditional’ means of

engagement – through letters, phone calls

and texts – and challenge when and how

these are appropriate, and whether there

are better ways of communicating. And, if

we are really serious about the experience,

then we need to look at how customers are

currently interacting, and adapt our own

strategies accordingly.”

An essential ingredient in transforming

this experience for individuals in debt is

the introduction of ‘self-serve’ and digital

options, choices that have often previously

been closed to those with problem debts.

Phil McGilvray, Cabot Credit

Management’s Operations and Digital

Director, says self-serve helps the

company reach and support customers

more effectively. It has been 18 months

since the firm began implementing its

digital approach. In that time, it has seen

digital customer interactions become a

significant part of the business.

While the wider financial services

arena may see automation as the key to

cost reduction, those in collections are

wary of pushing digital too far.

“In the broader financial services

industry, the number one objective is

efficiency and cost reduction,” he says.

“In the credit management space, the

primary goal is customer engagement and


Julian agrees: “Self-serve is a natural

evolution. It is being driven by the

customer. Few of us today want to deal

with issues by post or on the phone, at

least when it is not appropriate to do so.

We want convenience, and that invariably

means dealing with an issue online. It

also means managing that issue in our

own time, when it suits us. As consumers,

we get frustrated if we can only contact a

business within certain times, or days of

the week, when their call centre happens

to be open. We want accessibility 24/7, and

we often want to avoid human contact,

unless it is absolutely necessary.”

The watchword, he believes, is

flexibility: “We have to reflect the needs

of a new demographic, and a Millennial

generation who have probably never

written or received a letter in the last ten


Companies like Hoist and Cabot

are wary of rushing to replace human

interaction with technology, preferring to

augment traditional channels.

“We have a person behind all of our

web chats, not a chat bot or artificial

intelligence,” says Phil McGilvray. He adds

that it is vital that customer data from all

channels are available to staff in case an

individual wants to switch to a telephone


“In theory, some customers will selfserve,

set up a plan online and never need

a conversation with us. However, the vast

majority will use a number of channels

and we need to have the information

available if a customer chooses to call.”

Cabot also has a mobile app, something

it says consumers are coming to expect –

offering similar convenience to mobile

banking. Many customers will have long

relationships with a collections firm, so an

app or an easy online option that can push

notifications enhances their experience.

“Registering with the app takes the

grief out of the process as the customer

can use their thumbprint to access

their information instead of having to

remember a password,” says Phil.

He adds that customers tend to

have had a digital relationship with the

originating creditor – removing that is

part of the stripping of customer care that

has happened to ‘debtors’ in the past.

“In the past creditors would cancel

online accounts at 90 days overdue so the

person had to use paper or telephone,”

he says. “There shouldn’t be a digital


While the use of self-serve frees call

centre teams to help vulnerable customers

or deal with complex cases, Phil stresses

this is not a straightforward division. All

customers are different.

“Digital channels can actually create

a better experience for vulnerable

customers,” he explains. “We get feedback

that digital interactions make their lives

easier, for example receiving information

via email and allowing them to work

through it at their own pace and come

back to us rather than being put on the

spot on a phone call.”

Leigh agrees that choice is the answer.

“We’re keen to allow our customers to

contact us by whichever channel suits

them best, and at any time,” he says.

“Online access to customer account

information via smartphone is fast

becoming the norm, and as a sector

we must stay at the forefront of new

developments such as Artificial

Intelligence and Open Banking, GDPR

and Blockchain.

“This way, we will be able to react to

the ever-changing needs of our customer

base, providing simple and safe contact

methods for every customer, while never

forgetting that customers in vulnerable

circumstances will always have the option

to talk to a helpful, sympathetic human


The change in customer behaviour is

staggering. David Sheridan, Operations

Director at ARC Europe, says the

proportion of customers engaging

digitally has risen from less than five

percent five years ago to over 40 percent

today of all customer interactions. These

numbers are constantly increasing.

He adds that 70 percent of users are

smartphone users, making mobile-led

web design and navigation essential.

“Many people don’t want to have

a conversation, they make regular

The Recognised Standard / / March 2018 / PAGE 15 continues on page 16 >


AUTHOR – Heather Greig-Smith

Digital channels

can actually create

a better experience

for vulnerable

customers, we get

feedback that digital

interactions make

their lives easier.

payments without ever speaking to us. They

aren’t on payment plans but are choosing to

do it their own way,” he says.

“They want to pay but don’t want to have

detailed conversations about the whys and

wherefores and do income and expenditures.

We need to be flexible.”

Part of truly being a customer instead

of a debtor means being able to choose.

Web demographics show that around half

of those using ARC’s site are millennials.

“Online, digital, convenient access is their

preference,” says David. “People in debt don’t

necessarily like to talk about it as they feel

judged. On the website it’s more of a process

of account management.”

He adds that this is not without its

challenges. “When you have a conversation

with someone the team is trained to identify

triggers and assess circumstances – the web

will never have human empathy. It’s about


Debbie Nolan, Commercial Director,

Arvato Financial Solutions, agrees. “Given

the hype around automation and artificial

intelligence, there may be a discrepancy

between expectation and reality, especially

around whether you can automate everything

and how much human input is still required.

We would maintain that while automation

can do a lot – it’s not a silver bullet.”

Arvato is using machine learning

to determine the best channels for

communication with customers, but is

introducing other initiatives over time.

“There are still a lot of judgement-intensive

tasks that require a person,” she says. “We

have to move at the speed consumers move


This may be different in different

locations. Arvato has a self-serve portal in

Germany, which it intends to bring to the

UK soon. Meanwhile, in Brazil, the culture

requires What’sApp and Facebook Messenger


Ultimately, self-serve and digital choice is

part of the wider industry recognition that

customer service should be at the heart of

the business.

Eddie Nott, UK Managing Director of 1st

Credit, says listening to customers highlights

the desire many have to take control of their

financial situation.

“In face-to-face feedback sessions,

customers tell us that they are proud to get

their finances in control,” he says.

“Checking their balance and actively

managing their account is an important

part of that empowerment, for example the

ability to log on and quickly make a payment

if they have extra cash because they have

worked extra shifts. It’s important that we

give customers the ability to manage their

own accounts if they want to.”

The digital approach also gets a cautious

‘thumbs up’ from the advice sector. Jane Tully,

Director of External Affairs at the Money

Advice Trust, says the work of creditors and

collectors in this area is encouraging.

“We are pleased to be working with

organisations on improving their digital

services to ensure they take account of

people in vulnerable situations,” she says.

However, she adds: “While channels, such

as online portals and webchat, are accessible

for many people, they may not be suitable for


“It is important to remember those who are

digitally excluded or in particular vulnerable

situations must still be able to speak to

someone and have access to additional

support. Signposting to free debt advice,

whatever the channel of communication,

is also crucial as it may be challenging for

people to make a repayment offer they can

afford without first receiving debt advice.”

Julian Winfield says there is an

understandable nervousness among clients

towards digital strategies. They need to be

assured that their customers are being given

the appropriate support to make the right

decision: “We have a duty of care to ensure

the most vulnerable are identified and

supported. Vulnerability can be, after all,

a transient state, and needs to be carefully

monitored, so while putting customers in

control of their own finances is desirable,

we need to strike a balance to ensure that

in trying to do the right thing, we are not

making a difficult situation worse.

There is clearly further to go, with many

firms emphasising they are only at the

beginning of their self-serve and digital

journey. However, today’s 24-hour, online,

‘always on’ culture is helping further banish

the word debtor from the collections lexicon.

Empowerment? A worthy replacement.

Heather Greig-Smith is a freelance business


The Recognised Standard / / March 2018 / PAGE 16


Are you Risk Ready?

Tom Danson, the new face of Atradius in the Midlands, brings a

wealth of experience to his new role and all of it learned on the

front line working to find the right solutions to match clients’

needs in the London market. Tom considers what risk really

means to different businesses and shares his passion for a

proactive approach to credit risk management.

Tom Danson

Regional Manager Atradius

Midlands Hub

WHEN I talk to credit

managers and financial

directors the question of

risk is always on their

agenda. Some fear that they are too

risk averse – “would my sales improve

if I pushed the envelope further?” and

others worry that their drive to stay

ahead of the competition sometimes

prompts them to take one risk to many.

So, what is the perfect risk profile

for a successful business – or is there

even such a thing? `

We know that risk varies by sector

and market and so knowing the

dynamics that are appropriate to

your industry is what counts. What

might seem normal for sector A would

probably keep sector B up at night

worrying about the risk. However,

whatever sector you are in and

whether you are a risk taker or not

being proactive is vital.

Credit managers understand that

managing a company’s ongoing

exposure to credit risks and conditions

demands constant attention. Access

to reliable and up to date information

is critical to enable the right decisions.

No matter where in the world you

trade and what type of businesses

you deal with, having the right level of

detail about the trading conditions, the

economic environment, the payment

behaviours and strength of your

chosen buyer is essential and access

to a risk expert based on the ground in

that market is a real advantage.

Using the resources of your Trade

Credit Insurer to complement your

own industry knowledge is one way

to access the depth and breadth of

business intelligence you need to make

an informed decision on whether to

expose your business to a risk – or

not. At Atradius our risk specialists are

based across the globe, the eyes and

ears on the ground in over 50 countries

worldwide. With real-time information

on more than 240 million companies

our risk managers enable you to make

the right choices for your business.

All good credit managers take care

to match their strategy to the market,

after all that is the expertise that

they bring to their business. However,

what is much harder to plan for is

the unexpected – an unforeseen risk

that all too often results in a sudden

default and a significant bad debt.

The consequences for the bottom line

can be significant too, just one large

default can punch a sizable hole in

the portfolio that is difficult to recover


We have seen a rising trend

in unexpected insolvencies and

in particular, a rise in high value

insolvencies. Everyone will remember

Phones4U for example, ‘too big to fail’

is no longer a reliable protection from

Prudent credit management

will steer you away from the

risks you shouldn’t take but

in today’s volatile economic

environment managing

uncertainty is just as


risk and we only need to look at recent

headlines to remind us that there are

plenty of risks in the marketplace.

Prudent credit management will steer

you away from the risks you shouldn’t

take but in today’s volatile economic

environment managing uncertainty is

just as important.

Trade Credit Insurance can help

improve your credit risk management

and protect your bottom line against

the impacts of unexpected default.

Specialist brokers and credit insurers

can provide detailed information on

trading behaviours and practices in

markets around the world as well as

give access to business intelligence on

specific potential customers. In other

words quantifying and understanding

the risks as well as providing

protection against the impacts.

But back to the questions we started

with – is it better to be a risk taker

or risk averse – what is the perfect

risk profile for your business? To help

you measure how ‘risk ready’ your

business is we have worked with CICM

to prepare a short Risk-Ready Survey,


risk-ready-survey.html to find out how

you shape up - just answer our risk

questions and then look out for our

survey results in the next edition.


ID Medical sets pulses racing

FORMED in 2002, ID Medical is

the UK’s leading multi-disciplinary

healthcare recruiter,

partnered with over 90 percent

of NHS Trusts as well as

private medical organisations


From its headquarters in Milton Keynes,

it supports healthcare organisations in supplying

the most professional and dedicated

Doctors, Nurses and Allied Health Professionals

to provide its premier level of patient

care. With a critical mass of over 500

employees, and a turnover of more than

£140 million per annum, it is serviced with

a credit team capacity of 17 staff.

The company started on the CICMQ

journey to give its team the knowledge and

satisfaction of understanding their function

is critical to business success.

Neil Chick MCICM, Head of Collections

and Fleet Management says that the CICM

is the leader in the world of credit control:

“Having the CICMQ Accreditation aligns

our business with other big brand organisations

honoured to be placed within the

Best Practice Network.

“The individual members of the team

now hold the unrivalled belief that they

can achieve what was perhaps perceived

by some, initially, as a mission impossible.

Maintaining the communications across

the business to keep the focus streamlined

and consistent has been key in the process,

thereby ensuring that everyone remained

on board throughout.”

CICMQ Assessor, Pam Thomas commented

on the high level of respect for Neil

and the credit team within ID Medical from

stakeholders: “CICMQ Accreditation will

reinforce this profile, bringing recognition

and even greater motivation. The Credit

Roadmap can be developed to provide a

comprehensive plan for the future, putting

Credit firmly in the driving seat.”

CICMQ is the perfect cup of tea for TATA Global

TATA Global Beverages (TGB) has evolved

from a predominantly domestic Indian

tea farming entity to the second largest

tea company in the world, with over

300 million servings of its brands such

as Tata Tea and Tetley consumed every

day. It recently achieved the prestigious

CICMQ accreditation for the first time.

The credit team is based in Greenford

and headed up by Naaz Chouglay, Head

of EMEA Transaction Processing. Her

team of six manage the complete credit

management, credit control and accounts

payable process. The TGB customer base

is made up of supermarkets, discounters,

cash and carry, independent wholesalers

and catering companies. TGB exports to

EMEA through a distribution channel to

countries like Spain, France, Switzerland,

Portugal and Middle East.

“The journey towards the accreditation

was an advantage. Preparing for the

Accreditation helped us to prioritise

and focus on the alignment of the Sales

and Finance Teams, which resulted in

an improved reporting pack, tailoring it

to the needs of the business, this in turn,

has resulted in improved KPIs,” Naaz


CICMQ Assessor, Jenny Oakley says

despite this being a small team, with

several long-serving members, all are

very skilled and competent in their

roles: “There is an air of quiet efficiency

and professionalism around the


The Recognised Standard / / March 2018 / PAGE 18

Continual improvement at the Credit Centre

“The opportunity to invite an industry

expert into The Credit Centre to review,

assess and offer recommendation for our

ongoing development and improvement

was the main driver for our seeking the

CICMQ accreditation,” says David Harrison,

Credit Manager.

The Credit Centre provides a full credit

management function to a number of

privately-owned businesses including,

among others, Aalco Metals, the UK's largest

independent multi-metals stockholder and

distributor. The 22 strong Bolton-based

credit team are currently tasked with

looking after 35 UK and Ireland based

service centres, with a combined annual

turnover in excess of £500 million.

“The most significant issue we had

to address while obtaining the CICMQ

accreditation was establishing an

enhanced identity that fully reflected

the vigorous and professional service we

provide to our service centre customers,”

David adds. “With the guidance of CICMQ

Assessor, Sharon Adams, we have created a

distinctive logo for The Credit Centre that

has been successfully and prominently

incorporated into a re-branding of many of

our working procedures.”

Sharon said in her report: ‘The Credit

Centre had the full support in their

application for external recognition of Best

Practice and the successful achievement of

CICMQ accreditation from their Finance

Director, Andy Roberts. This was evident

when he outlined his own perception of

The Credit Centre and commended them

on their performance and achievements so


Writing’s on the blackboard for Pearson

ESTABLISHED some 173 years ago in

London by Samuel Pearson, Pearson

has grown to become a top 100 blue

chip company that recently achieved the

prestigious CICMQ accreditation.

With expertise in educational

courseware and assessment, and a

range of teaching and learning services

powered by technology, its products and

services are used by millions of teachers

and learners around the world every day.

Pearson has 35,000 employees across

70 countries worldwide, and with annual

revenue exceeding $6.17 billion, its credit

team consists of three CICM members

who work in Harlow, three in Belfast and

around 30 in India that form the Sales

Ledger team, credit control and cash and

bank team.

Matthew Walters (MCICM), UK Head

of Credit at Pearson says the company

has gone through significant change

over the last two years since its initial

accreditation, so working with the CICMQ

team was more important than ever:

“The process has helped us overcome

some of the challenges that we have

been faced with, since the integration of

our ERP system as well as the structural

changes that have occurred. Personally,

it's a great feeling to know I have led my

teams through this important process.”

CICMQ Head of Accreditation, Chris

Sanders says the team cope with a number

of challenges on a daily basis, but work

with the entire business to resolve them:

“During the Discovery Session,

the team said they used CICMQ as a

framework to ensure that the migration

to India, Belfast and the new Oracle

system was structured; this is exactly

what CICMQ was designed for – to bring a

structured framework to the methods and

procedures of a credit function.”

The Recognised Standard / / March 2018 / PAGE 19




Multilateral Interchange Fees

are commercially justifiable.

AUTHOR – Peter Walker

DEBIT cards are a means by

which you may transfer some

numbers from your bank account

to the bank account of a

seller, such as a supermarket.

That is the simple perception,

although credit card transactions involve a

more complicated journey. The numbers, however,

take a more complex electronic journey

from your bank to that of the recipient. There is

therefore a cost, and some supermarkets have

protested, resulting in litigation about alleged

unlawful agreements restricting competition.

Judges have unfortunately made conflicting

decisions, which have been reviewed recently

by a judge, Phillips J, in the Commercial Court,

but, although you may agree with the result,

it is questionable whether his reasoning is


In Sainsbury’s Supermarkets Ltd v Visa Europe

Services LLC [2017] EWHC 3047 (Comm)

he started by explaining that Sainsbury’s and

other merchants accepted payments, those

transfers of numbers, by means of debit and

credit cards, such as those issued by Visa

through a bank or other financial institution

‘an Issuer’. This was part of a scheme involving

an Acquirer, also a bank or other financial

institution. The Acquirer charged those merchants

their fees for their part in the transactions.

That is known as a Merchant Service

Charge ‘MSC’, which covers, for example, the

fee paid by the Acquirer in this instance to

Visa. Other charges covered by the MSC are the

Interchange Fees payable by the Acquirers to

the Issuers, and there were the Acquirers’ own

fees ‘the Acquirer Margin’ negotiable between

the Acquirers and the Merchants.

In the UK the Interchange Fee is generally

what is known as the Multilateral Interchange

Fee set by Visa, rather than an alternative Bilateral

Interchange Fee negotiated separately by

two parties.

The Multilateral Interchange Fee accounted

for 90 percent of the MSC that Sainsbury’s

had to pay. It challenged the Fee by reference

to competition law, particularly Article 101 of

the Treaty of the Functioning of the European

Union 2012/C326/01, which directly affects

the laws of the UK. Although Brexit could well

change that, there is the equivalent section 2

of the Competition Act 1998 affecting the UK.

The judge, however, concentrated on Article

101 of the Treaty.


It prohibits certain agreements as being

incompatible with the internal market. They

include those which ‘have as their object or

effect the prevention, restriction or distortion

of competition within the internal market.’

The price fixing of purchasing or selling

prices or the fixing of other trading conditions

is therefore banned. Undertakings must not

‘limit or control production, markets, technical

developments, or investments’. They may not

‘share markets or sources of supply’ so undertakings

may not place anyone at a disadvantage

by the application of dissimilar conditions ‘to

equivalent transactions with other trading parties’.

The conclusion of contracts must not ‘be

subject to supplementary usage’ which ‘have

no connection with the subject matter…’. Any

agreements prohibited by the Article ‘shall be

automatically void’.

There are differences between Article 101

of the Treaty and section 2 of the Competition

Act 1998. The Treaty refers to the internal

market, but the Act is limited to the UK. The

accomplishment of Brexit should not in consequence

affect the general principles prohibiting,

for example, ‘the prevention, restriction

or distortion of competition within the United


These principles in the context of Multilateral

Interchange Fees ‘MIF’ were part of an

earlier case initiated by Sainsbury’s. They were

considered in the Competition Appeal Tribunal

(Sainsbury’s Supermarkets Ltd v Mastercard

Inc [2016] Case No 1241/5/7/15 (T)). The

Tribunal judges had to decide whether those

fees had been set at an artificially high level.

They were 90 percent of the Merchant Service

Charge ‘MSC’ chargeable to Sainsbury’s. The

judges also had to rule whether the MIF was a

restriction on competition.

There is, however, a possible exemption under

Article 101(3). This includes an agreement,

The Recognised Standard / / March 2018 / PAGE 20


AUTHOR – Peter Walker

concerted practice, and the like contributing

‘to improving the production or distribution

of goods or to promoting technical progress,

while allowing consumers a fair share of

the resulting benefit.’ The agreement must

not ‘impose on the undertakings concerned

restrictions which are not indispensable to the

attainment of these objectives. It must furthermore

afford such undertakings ‘the possibility

of eliminating competition in respect of a substantial

part of the products in question.’

There was another complication because

the claimant was related to Sainsbury’s Bank

plc, a participant in the Mastercard scheme.

The claimant through this relationship could

be regarded as a party to the alleged infringement,

so the claim should then be barred because

of illegality, i.e. ‘ex turpi causa non oritur

actio’. That Latin phrase means that no right of

action arises from a base cause. The Tribunal

rejected this defence for various reasons

including that, ‘Sainsbury’s Bank (and Sainsbury’s)

does not bear ‘significant responsibility’

for an infringement of Article 101 TFEU by

MasterCard in relation to the setting of the UK


That was just part of the report of the case,

which is around 300 pages long. The members

of the Tribunal concluded that the agreement

for Multilateral Interchange Fees was a restriction

of competition under Article 101, and

was not one of the allowed exceptions. There

should instead have been a negotiated agreement

between the two parties for a Bilateral

Interchange Fee. Sainsbury’s was therefore

awarded over £68 million.


That would surely resolve Sainsbury’s case

against Visa, but some other retailers challenged

Mastercard, so Popplewell J had to

consider that dispute in Asda Stores Ltd v

Mastercard Inc. [2017] EWHC 93 (Comm). The

retailers again questioned that Multilateral Interchange

Fees charged by Mastercard were

anti-competitive in breach of Article 101 of the

Treaty. This was important to them, because

since 2006 they had paid some £437 million in

those Fees.

Popplewell J consequently reviewed the

decision of the Tribunal members in Sainsbury’s

Supermarkets Ltd v Mastercard Inc. They had

adopted what is called a counterfactual, a

logical expression meaning in this context that

a judge or judges should consider what would

happen if the parties instead had made a

voluntary bilateral exchange agreement, i.e.

a contract negotiated between two of them

rather than the multilateral interchange fees

imposed by the Card company. This was

unrealistic, because there would have to be a

sufficient volume of retailers wishing to do so,

and there was no evidence of there was such

a volume. There was furthermore competition

from the Visa scheme.

Popplewell J ruled that, although the

Multilateral Interchange Fees breached

Article 101, the agreement benefited from

the exemptions in Article 101(3). Participants,

such as supermarkets, in such schemes

benefited, because they had a commercial

advantage over those competitors who

would not accept payment cards. There

was still room for disagreement for

Phillips J in Sainsbury’s Supermarkets Ltd

v Visa Europe Services LLC, but he should

follow the decision in the Asda High Court case

rather than the Tribunal Members’ ruling in

Sainsbury’s v Mastercard.


Phillips J noted that there were some differences

in the card schemes. Mastercard similarly

to Visa operated an open four-party scheme.

Issuers offered both debit and credit cards and

Mastercard stipulated the rules for the Multilateral

Interchange Fees. Unlike Visa it offered

a range of premium credit cards. American

Express, Diners Club and some others operated

three-party schemes, where, for example,

American Express issued the cards and settled

transactions with Merchants direct.

After this explanation, Phillips J analysed

the competitive aspect of Interchange Fees in

the four-party scheme. Issuers of cards competed

against each other, but so did Acquirers

who were competing for the business of the

Merchants. He noted that academics differed

in their views about Interchange Fees.

The European Commission furthermore

had intervened to require Visa to reduce its

levels of Multilateral Interchange Fees (24 July

2002 (OJ L 318/17)). This exemption expired at

the end of 2007. Visa later reached other agreements

with the Commission. There was another

development in Regulation (EU) 2015/75

on Interchange Fees for card-based payment


Whatever the regulations, Phillips J pointed

out that he had to consider whether the Fees

were anti-competitive and in breach of Article

101. An agreement caught by the Article would

reduce competitive intensity in the relevant


He consequently rejected the reasoning in

Asda v Mastercard concerning the anti-competitive

nature of the agreement for Multilateral

Interchange Fees. In any event, an agreement

having the effect of restricting competition

does not infringe Article 101 if it is objectively

necessary for the main operation, i.e. in this

case the entire scheme. The main operation

itself must not infringe Article 101. This time

Sainsbury’s lost the case.

It is very complicated whether or not

you agree with the decision of Phillips J – his

conclusion that Multilateral Interchange

Fees, in principle acceptable, seem to be

commercially justifiable subject to safeguards.

The judges of the Court of Appeal will have

their say on this topic, and I appeal for a

clarification of the reasoning.

The Recognised Standard / / March 2018 / PAGE 21



Sean Feast spoke to Joanna Elson OBE

Cdir, Chief Executive of the Money

Advice Trust (MAT), about life as a House

of Commons Researcher, the debt advice

sector, and the great outdoors.

OSCAR Wilde once famously

wrote that ‘everybody who

is incapable of learning has

taken to teaching’. Wilde

clearly never met people like

Joanna Elson, whose constant

quest for learning has contributed to a career

that has taken her from primary school teacher

to Chief Executive of the Money Advice Trust.

It has also led to the recognition of an OBE

for her work in protecting some of the most

vulnerable in society.

Joanna’s journey to her current role has

certainly been interesting. Her father, a civil

servant with a specialist knowledge of farming,

was continually on the move, taking his family

with him. As such, Joanna’s early years were

somewhat nomadic: “His work took him all

over the country,” she explains, “until finally

we moved from Newcastle to Nottingham,

where we settled for ten years.”

Educated at the local Comprehensive School

– a vast establishment that had only recently

merged the local grammar with two Secondary

Moderns – she recalls little or nothing by way

of career’s advice. A love of language, however,

led her to university in Cardiff to read Modern

English Studies: “It combined language with

literature, and included a study of media and

communications which I particularly enjoyed,

and proved useful in my subsequent career.”


While studying, she took on a number of casual

jobs to help pay the bills and fund a university

life. One was in a Post Office, putting mail into

pigeon holes marked alphabetically, during

which time they were visited by the then Prime

Minister, Jim Callaghan.

She also took on a number of temporary jobs

in a wide range of workplaces: “No-one ever

notices the ‘Temp’,” she continues, “but you

notice everything, and being a fly on the wall

you learn a great deal. I’d encourage anyone to

get as much work and office experience as they

can, especially when they’re young.”

From University Joanna moved to London

(“I never moved home again,” she laughs),

where she spent time as a paid volunteer for

the Community Service Volunteers, as well as

some unpaid work in a play centre, working

with disabled children. Attracted to the idea of

teaching, she underwent Teacher Training as

a post-Grad at Birmingham, before taking her

first job as a Primary School teacher in Tower


After two years Joanna realised that teaching

was not for her: “I found the responsibility

for those individual 30 children somewhat

overwhelming,” she says, honestly. “The

best teachers are those that can leave school

problems at the front door, but I couldn’t quite

do that.”

She applied for and succeeded in gaining

a job as a researcher for Joan Lestor MP (the

late Baroness Lestor of Eccles, who for a time

had been a Minister in the Wilson Cabinet)

– her first introduction to Parliament and

the workings of government. Further roles

followed, working for a number of different

MPs including Barbara Roche who held a

series of briefs in the Home Office, the (then)

Department of Trade and Industry (DTI) and

the Cabinet Office. Joanna drafted speeches,

researched issues and answered media queries,

and perhaps her most exciting time came in

1997 when she was seconded to the Labour

Press Office in Millbank, under the watchful

presence of Peter Mandelson (now Baron

Mandelson PC). It was the day of the election

that saw Tony Blair sweep to power:

“It became clear that Labour was going

to win, and that a large number of new and

therefore relatively unknown politicians were

going to be elected. It meant researching their

backgrounds, interests and skills, and we

worked all through the night.

After the election, and having worked on

a wide range of policy areas, Joanna joined

the British Bankers’ Association (BBA) as an

Executive Director eventually running its policy

department for personal and small business

customers. Her previous experience meant she

was naturally inclined to matters of Corporate

Social Responsibility (CSR), and her duties

eventually included fundraising for the Money

Advice Trust (MAT). After nine years with the

BBA, and upon the departure of Robert Skinner

The Recognised Standard / / March 2018 / PAGE 22

It became clear that Labour was

going to win, and that a large number

of new and therefore relatively

unknown politicians were going to

be elected. It meant researching their

backgrounds, interests and skills,

and we worked all through the night.

The Recognised Standard / / March 2018 / PAGE 23

continues on page 24 >



(to be Chief Executive of the Banking

Code Standards Board - now the Lending

Standards Board), she moved to the Money

Advice Trust as Chief Executive.

“I had just had my third child, so the

timing was not ideal.” she says, “but after

being interviewed and offered the job, I

simply threw myself into it. It combines

two things that are important to me:

tremendous job satisfaction and the

opportunity to make a real and positive

difference to peoples’ lives.”


Joanna describes her role at the Money

Advice Trust as being much like the

conductor in an orchestra, making sure

everything is happening in tune and at

the right time. The Money Advice Trust’s

vision is to help people tackle their debts

and manage their money with confidence.

It does so directly, through services

like National Debtline (and its business

equivalent, Business Debtline) and

through the training and support of

businesses and charities (including the

free debt advice sector) that come into

contact with people in debt or in financial


“National Debtline is an ‘assisted selfhelp’

service,” Joanna explains, “giving

customers the help and support to manage

their debts with confidence; we work

closely with other charities like Citizens

Advice and StepChange to get people in

need to the help they need as quickly and

effectively as possible.”

The figures are certainly impressive.

Statistics for 2017 showed that National

Debtline and Business Debtline provided

help to more than 220,000 people by phone

or webchat, with around 1.4 million visits

to its sites. It also provided training to

more than 160 creditor organisations on

identifying and supporting customers in

vulnerable circumstances.

Joanna is very aware, however, that

there is still much to be done. She sees

real advantage in working collaboratively

with other organisations and associations,

across a range of sectors to find common

ground and influence for good (“Good

people make things happen,” she adds),

and she is encouraged by how far such

organisations and their members have

come in recent years, particularly in the

area of vulnerability.


She would certainly like to see the

Government doing more: “Consumers need

to be able to get help and find help when

they need it, and that is often a factor of

resource. Demand is not the issue; there is

not enough supply. We saw a 14 percent rise

in the number of calls to National Debtline

in 2017 compared to 2016. Customers

need to be able to seek help early, and

Government needs to ensure that such

help is available.

“Government – including local government

- also needs to get its own house in

order. We have seen the increased and, in

my view, over use of bailiffs by Local Authorities

(see report December 2017 issue

of Credit Management page nine). It does

not take much for an individual who is

struggling to then fall into debt, and the

public sector needs to catch up with the

private sector, and learn from them as

to the best ways of managing vulnerable

people in debt.

We need to look

at regulation. The

Financial Conduct

Authority (FCA) regulates

debt collection, but not

enforcement and in

certain areas, regulation

needs to be better.

“Also,” she continues, “we need to look

at regulation. The Financial Conduct

Authority (FCA) regulates debt collection,

but not enforcement and in certain areas,

regulation needs to be better.”

Joanna says this includes looking at

how commercially-based debt advice

providers present themselves online: “If

you type ‘National Debtline’ into Google,

we are not necessarily the first name

to appear, and this causes confusion

for the public with other names that

look similar, but are actually private

sector organisations masquerading as


The Money Advice Trust was founded in 1991

as an independent charity with the support

of the Government, creditors and the advice

sector more widely. One of its original

aims was to work with partners to channel

financial contributions from the creditor

sector towards the funding of debt advice.

By setting common standards and creating

materials and courses, the Money Advice

Trust and its partners have been at the

forefront of ensuring quality and consistency

of advice to people with debt problems.

The Trust went on to run National Debtline,

Business Debtline and to coordinate training

across the sector through Wiseradviser.

With demand for money advice consistently

outstripping supply, finding more efficient


So what will success look like for Joanna

and her team? “Like many charities, we

should be aiming to put ourselves out of

business,” she confides.

What it looks like in the short term,

however, is to help more people in the most

effective way, making steady, incremental

improvements, stopping the wholesale

use of bailiffs by Local Authorities, and

giving consumers breathing space so that

debt is not something to fear, as help is

always available.

The Money Advice Trust’s services

have never been more in demand and,

not surprisingly, Joanna’s energy and

experience is also in demand. As well

as being Chief Executive of the Money

Advice Trust she is also on the Board of

UK Finance as the consumer representative,

a member of the advisory panel

of the Commission for Financial Inclusion,

the ABCUL/Lloyds Banking Group

Grants Committee, H M Treasury’s Home

Finance Forum, the Advisory Board at Birmingham

University's Centre on Household

Assets and Savings Management and

served as the Chair of the BBA’s Financial

Services Vulnerability Taskforce. She is

also a Vice-Chair of the Friends Provident

Foundation and a Chartered Director.

With so much on, it is a surprise that

Joanna has any time for a life outside of

work, but since her days as a teacher, she

has learned to leave most (though perhaps

not all) of her worries at the front door.

She is a keen walker, runner and cyclist,

and likes nothing better than to be out

with her husband, a head teacher, and

their three children: “I guess I am an

outdoors sort of person living a largely

indoors sort of life,” she smiles.

“Being outside keeps me on track.”

ways of helping people with debt

problems is core to the Trust’s work, such

as the development of sector tools such

as the Standard Financial Statement,

CASHflow and free self-help packs for the

advice sector to use with its clients.

At the heart of the Trust’s approach

is a belief that the best way to help

people in debt is to empower them to

help themselves. This assisted self-help

approach allows people to control their

own debt situation, resulting in better

long–term financial health. The Trust’s

head office is in Garlick Hill, London and

its advice services are run from Tricorn

House in Birmingham.

The Trust employs c200 staff.

The Recognised Standard / / March 2018 / PAGE 24

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The construction industry can be

a tricky sector for credit managers,

but these issues are nothing new.

AUTHOR – Derek Scott FCICM


have found all the media coverage The contract still needed to be completed, but

on the collapse of Carillion very payments for the scaffold were made direct to

interesting, but unless you have us by the council at a more favourable rate.

worked in construction, particularly Over the years I encountered many more

in sub-contracting, then you cannot notoriously slow payers, but with quality

possibly understand the real credit now in place. A combination of


Firstly, the awarding of contracts without

any due diligence into the financial position

of the nominated contractor goes back almost

to the relief of Mafeking!

There appears to have been no checks

in relation to its balance sheet, last profit

and loss accounts, or its ability to pay

sub-contractors? Often the lowest tender

is awarded the contract. This applies to

government, councils, public utilities and

major businesses.

The problem does not always end with

the main contractor, it’s possible you have a

chain. There could be a managing contractor

and sub-contractors who will need to use

risk assessment and external credit circle

intelligence meant these companies could be

identified before any business was entered


After initially considering guarantees, and

finding these unsatisfactory, my payment

agreements were born. These have been

covered with some scorn over the years, but

out of dozens I put in place, they were never

the subject of any disputes.

If in trade credit you have a totally black

and white credit policy, it may make you

look very efficient, but in truth, you could be

stifling the growth of your company. A true

professional trade credit manager must ‘think

outside the box’ of basic credit management

other sub-contractors. I know first-hand how rules. Of course, there are risks, but

dangerous these types of chains can be.

I entered the world of construction at

the beginning of 1970, recruited to clear

numerous debts, some going back several

years, and to dramatically reduce a Days Sales

Outstanding (DSO), which stretched back to

the horizon.

One substantial debt was in relation to

scaffolding supplied for a refurbishment

contract given to a contractor by a large city

in Scotland. The contractor had an impressive

name, and what appeared to be an equally

impressive head office address. The branch

claimed there were no major issues and that

the delay in settlement was entirely down to

slow payment by the council.

Having failed to obtain payment I flew to

Scotland to meet him. His head office address

was a room above a sweet shop next door to

a garage. Our meeting took place on a park

bench in the middle of a field. His share

capital was £100, two shares issued.

I did manage to recover the majority of

the outstanding money, but as he soon went

out of business we still incurred a bad debt.

taking them is what you really earn your

money for.

There were instances where our customers

were good payers, and we enjoyed excellent

relationships with them, but higher up

the chain was a ‘bad apple’. This required

some real PR, voicing our concerns to

clients and in most cases we were able to

get round the problem. There were few real

‘no go’ companies, mostly major contractors

with very slow payment policies using the

sub-contractors as free bank loans.

I would never claim that we wouldn’t

have lost any money following the collapse

of Carillion, but I doubt our debt would

have stretched as far back as many of the

substantial sums involved. There would

also have been some serious concern coming

through from our credit circle members.

I’m keen to know if those with Carillion

service contracts contacted the Government

regarding late payments? I certainly would

have and suggested that unless some action

was taken, we would pull the plug on our


The Recognised Standard / / March 2018 / PAGE 26

One MP has tabled a private members

bill on retention as it appears there could

be a substantial sum of retention in the

outstanding debts of Carillion. Members

of my circle were discussing the problem

of slow release of retentions 40 years

ago. However, like many other doubtful

aspects of the construction industry,

nothing changes.

When I joined the scaffolding company,

my main energies were naturally

focused on the very old debts and DSO.

However, when these were sorted retention

was one area I really started to look at

in more detail.

There was no flagging system in place

to identify when retentions were due

for payment. I found several amounts

that were long overdue for payment. We

started to clear the due retentions, which

did begin to reduce the balance. But,

as we cleared each amount, a new one

replaced it.

A true professional

trade credit manager

must ‘think outside

the box’ of basic credit

management rules. Of

course, there are risks,

but taking them is what

you really earn your

money for.

I began to negotiate reducing the

retention periods, as I didn’t see why they

should be in place for scaffolding. If the

building falls down after a year, I refuse

to believe that it could be down to the

fault of our equipment. But, in view of

some of the very poor workmanship and

shortcuts that are now coming to light,

I can understand why some contractors

consider taking a retention as necessary.

If we led the field in one area it was

discounts. Some of which you may be

aware of, but others I feel, are unique to

construction. So why could there not be

a retention discount? Simply, what is the

cost of money not being in our bank for

anything up to 12 months plus?

One question raised by both MPs and

the media, is why were the huge financial

problems of Carillion not spotted before?

They possibly do not realise how easy it is

in construction to hide your true financial

position using ‘creative accounting’.

I have the seen the ‘wool pulled over the

eyes’ of many auditors, bank audit teams

and credit agencies over the years. Some

of these ‘wool pulling’ tactics include the

valuation of your various assets and stock,

leaving balances on the books relating to

already finalised contracts, un-invoiced

income, provisions, and my all-time

favourite ‘work in progress’.

I am doubtful that any real lessons will

be learned from the collapse of Carillion,

and in due course we’ll more than likely

be back here again.

The Recognised Standard / / March 2018 / PAGE 27





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permanent, contract and temporary recruitment.

Our highly experienced recruitment consultants match

the highest calibre individuals 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.

An award winning recruitment agency, having won places on

The Sunday Times 100 Best Small Companies to Work For,

The Sunday Times Fast Track 100 and The Recruiter Hot 100.











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

We look forward toworking with you.

020 7650 3199

The Recognised Standard / / March 2018 / PAGE 28

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Nominations open

The Advisory Council influences the future direction of the Chartered Institute of Credit

Management. Its members reflect the diverse range of skills, roles and experience amongst

the Institute’s membership, and bring valuable expertise and knowledge.

Being a member of the CICM Advisory Council is your opportunity to:

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

‣ Participate in the Institute’s governance

‣ Assist in raising the profile of the largest recognised professional

body in the world for the credit management community

There are 23 Advisory Council positions open for nomination representing our

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

Your Institute needs you

Please visit or

email to find out more.

The Recognised Standard / / March 2018 / PAGE 29


Is theft just a

retail problem?

Looking at debt that often goes unreported

and unrecovered

DD 0113 261 6158 E W

Kevin Feehan

Director of the Recoveries team

SHOPLIFTING – there’s a term

most people are familiar with

and it is recognised that major

retailers, many of whom we

act for, are the victim of this

criminal behaviour.

What is less recognised is that theft

often occurs by those we trust most,

those we employ and those we work with.

This takes many forms such as expense

fraud, stealing cash or goods that you

have within your business or defrauding

your IT systems. In fact, statistics show

when theft is carried out by colleagues,

the values are significantly higher than

the type of incident we associate with

shoplifting, with an average colleague theft

accounting for a loss of £1,031 (per British

Retail Consortium Crime Survey published

2015). That is before you take into account

the cost to your business in respect of the

time and resource spent investigating the

incident, and the time spent dealing with

the HR disciplinary process.

What also isn’t recognised or admitted,

is that theft isn’t just a retail problem, it

happens in every industry and in every

sector of the economy, from transport and

logistics, to manufacturing, banking, local/

central government and professional

services (if you are reading this and

aren’t on that list, I'm afraid to say you

aren’t exempt). It might be more

visible in the retail sector, given it

employs 2.9 million people, but similar

numbers of people are employed in the

manufacturing sector, the construction

sector and almost seven million people

are employed in the public sector. In the

retail sector it is estimated that customer

and colleague theft costs £660 million per

annum, and that is despite an average

spend per retailer of £6.7 million per

annum on crime and loss prevention.

Imagine how high those numbers might

be in industries where they don't focus on

identifying, pursuing and deterring this

type of criminal behaviour!

In today's economic climate, it

isn’t uncommon for my team to see

instructions to recover a loss suffered by

a client as the result of theft that exceeds

£30,000. Your business will have defined

processes for dealing with debts owing

to you (except the very smallest ones)

and this may well include your credit

control team pursuing payment and

the use of an external company, such

as DWF, to provide escalation and legal

action if necessary. I imagine it’s safe to

say that where the ‘debt’ relates to a loss

suffered as the result of theft or fraud,

you probably don't have a similar defined

process, which means you probably don't

look to recover the value that has been

stolen from you.

Beyond the obvious reason for seeking

to recover the value that has been stolen

from you (would you let a customer off

£1,000 let alone £30,000 without trying

to recover it), there are other very good

reasons to seek to recover your loss. The

most important is the deterrent factor. It

is commonly said that there is a 10-80-10

rule in relation to propensity to steal; ten

percent never will, ten percent always will

and 80 percent might if they thought the

chances of getting away with it were great

enough, or the reward high enough. You

deter the 80 percent who ‘might’ by taking

away the potential reward (getting your

loss back) and by making it known that

you do this.

In fact, statistics show

when theft is carried

out by colleagues, the

values are significantly

higher than the type of

incident we associate

with shoplifting

Where DWF is instructed to recover loss

resulting from theft, it is often also asked

to recover monies owed as the result of

an overpayment of salary (overpayments

due to late notice changes to payroll,

excess holidays taken, non-repayment

of loans and non-return of property

etc.) as well. These can occur during

the course of employment or following

termination of employment (either in the

type of scenario discussed above where

you've been the victim of theft, or in the

more straightforward situation where

an employee leaves). Recovery of these

overpayments is not always a simple

process, but failure to seek to recover

these debts is like throwing money away.

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


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 / / March 2018 / PAGE 30




would like to congratulate all the

nominees and winners at the CICM

Credit Management Awards 2018

We are proud to be the only, truly specialist credit control

recruitment agency in the UK. Solely recruiting for credit

controllers and credit professionals, our market knowledge

and industry experience has remained steadfast at the

forefront of the sector since 2008.

Recognised as an award-winning recruiter, we have been placed

in The Sunday Times 10 Best Companies to Work For, The Sunday

Times Fast Track 100 and the Recruiter Hot 100. We are also an

audited and compliant member of the REC. Our unique attributes

enable us to fill your next credit control vacancy simply and swiftly.

We understand the hard and soft skills of a credit controller

and we pride ourselves on finding you the perfect match.

All our temporary candidates are fully referenced and come

with a first day free trial – so, if you aren’t happy you don’t

pay a penny to ensure your full confidence.

We have immediately available multi-lingual credit

controllers to deliver effective debt management

across the globe.

Unparalleled market knowledge of our sector with

immediately available specialists in the areas

of Corporate, Consumer, International,

Credit Control and Collections.

Give us a call on 020 7650 3199

or email

The Recognised Standard / / March 2018 / PAGE 31


Adam Bernstein

focuses on Austria,

looking at the people,

economy and trading


Part one




Hallstatt lakeside town in the Alps, Austria


AUTHOR – Adam Bernstein

LANDLOCKED and steeped

in history, the largely

mountainous nation that is

Austria, famous for composers

Mozart and JS Strauss,

psychoanalyst Sigmund Freud,

automotive engineer Ferdinand Porsche,

the Alps and the Rothschild family of

bankers and investors, is underestimated

as an export destination.

Formed post World War I from the

remnants of the Austro-Hungarian

Habsburg dynasty that itself was

hammered into existence following a

number of military encounters between

European nations, the country has played

a pivotal role in modern European history.

Both the assassination of Archduke Franz

Ferdinand of Austria in June 1914 and the

rise to power of fellow countryman, Adolf

Hitler, are inexorably tied to the Europe we

see today.

Today, Austria is a parliamentary democracy

that comprises nine federal states.

It’s stable politically and economically and

has become an attractive location for the

headquarters of many foreign firms.


A mixed population, just under 25 percent

(1.8 million out of an estimated 8.7

million), live in the one city – the capital

Vienna. There are, however, a number of

other urban areas to note that include Graz

(265,000), Linz (191,000), Salzburg (145,000)

and Innsbruck (122,000). The country has

been a member of the United Nations

since 1955 and the European Union since

1995 (and is in the borderless zone that was

created by the Schengen Agreement). It is

not a member of NATO, although it does

have ties to the organisation. That said, the

Organization for Security and Co-operation

in Europe, Comprehensive Nuclear Test

Ban Treaty Organization, and Organization

of the Petroleum Exporting Countries are

all homed in Austria.

It’s interesting to note, but not surprising

considering Austria’s geographical

position, that the country has a relatively

high number of foreign born inhabitants

numbering 1.27 million, they make up

15.2 percent of the total population. Of

these, 764,000 were born outside of the EU.

Statistik Austria, the country’s statistical

office, believes that 415,000 are the

descendants of foreign born immigrants

that originally came from Germany, Turkey,

Serbia, Croatia, Bosnia and Slovenia.

Despite having a rich culture, it’s worth

noting that the Financial Times reported

(in October 2015) that despite spending

€4.5 billion in 2013 on tertiary education,

Austria has one of the lowest graduation

rates. It also found that ‘literacy skills are

poor compared with other industrialised

countries.’ Partly this is the result of

education only being compulsory to age 15,

and partly because the educational system

separates students into one of three school

types that generally determine their future.

Highly motivated, articulate children

move on to a Gymnasium (school – not

fitness club), which feeds universities. The

majority attend middle school and move

on to trade school. The FT found that the

‘unlucky bottom nine percent attend high

schools that prepare them for little more

than low-skilled, low-paid jobs’.

Nevertheless, Austria is, according to the

World Bank, a ‘high income’ country with

a GNI per capita of $45,239 and Trading

Economics reckons that Austria’s economy

is growing at 2.6 percent. Austria was in

the first wave of countries who, in 1999,

introduced the euro.

There’s a strong

industrial base that

makes up 29 percent

of the economy and a

well-developed service

sector that represents

around 69 percent.

Importantly, until

Brexit at least, the UK

faces no import tariffs.

It’s telling that of Austria’s trading

partners, Germany is its biggest (29 percent

of exports and 37 percent of imports) and

as of 2015, it’s other main import partners

are Italy, China, Switzerland and the Czech

Republic. Exports, on the other hand,

go mainly to the USA, Italy, Switzerland,

France and Slovakia.

Imported goods are machinery and

equipment, motor vehicles, chemicals,

metal goods, oil and oil products; and

foodstuffs. Exports are machinery and

equipment, motor vehicles and parts, paper

and paperboard, metal goods, chemicals,

iron and steel, textiles, foodstuffs.


The UK Government, in a 2015 export

document, considers Austria to offer much

potential to exporters, notwithstanding

the effects of Brexit. There are in excess

of 400,000 SMEs that make up 99 percent

of all Austrian companies, there’s a strong

industrial base that makes up 29 percent of

the economy and a well-developed service

sector that represents around 69 percent.

Importantly, until Brexit at least, the UK

faces no import tariffs.

While selling to commerce means

finding innovative solutions that are well

priced – after all, no firm is going to move

to a new supplier unless there’s good cause

– public bodies find and select suppliers

through a public tendering process. Details

of tenders are published in a number of

locations including the Wiener Zeitung

and other newspapers, as well as on an

official site run by the Bundesbeschaffung

GmbH (BBG). Created in June 2001, the

BBG acts as a central procurement agency

for the federal Government of Austria in

compliance with EU legislation. The agency

is run as a limited liability company but is

owned by the Austrian Ministry of Finance.

More information is available at (


Procurements worth less than €100,000

are not subject to tendering regulations

and can be purchased directly by the given

body. The purchase of items that cost more

than €100,000 and less than €414,000 are

subject to Austrian regulations. Tenders

that are below the EU threshold are listed

on the official BBG website (


Purchases of goods or services worth

more than €414,000 must be tendered

through the EU. These are published on the

TED database (

In terms of business sectors, Austria

has interests in advanced manufacturing,

especially in automotive – both traditional

and electric. Healthcare is also a strong

target for exporters because the country’s

health system is very extensive which

means opportunities for specialist,

premium quality and price-competitive


Those seeking to gain a foothold in the

environmental sector should be aware that

innovation is the key to success. Standard

products and services will not do well and

indeed, the Austrian market focuses on

energy production and new manufacturing


And with regard to services, there are

strong opportunities in cyber-defence

and cyber-security for those wanting to

approach financial services, corporates

and SMEs. Allied to this are opportunities

in financial services, franchising,

e-commerce and high-value luxury goods.

Adam Bernstein is a freelance business


The Recognised Standard / / March 2018 / PAGE 33


FECMA Country Profile

Sean Feast speaks to Rudolf Keßler at the

Bundesverband Credit Management Österreich.

AUSTRIA is officially the

Republic of Austria, a federal

republic and a landlocked

country with a population of

more than 8.7 million people.

Austria covers 32,386 sq mi

and the majority of the population speaks

local Bavarian dialects of German as their

native language, and German in its standard

form is the country's official language. Other

local official languages are Hungarian,

Burgenland Croatian, and Slovene.

Austria is the 12th richest country in

the world in terms of GDP per capita, has

a well-developed social market economy,

and a high standard of living. Until the 80s,

many of Austria's largest industry firms

were nationalised; in recent years, however,

privatisation has reduced state holdings

to a level comparable to other European


Germany has historically been the main

trading partner with Austria. At least 67

percent of Austria's imports come from

other European Union member states.

Tourism accounts for almost nine

percent of Austrian GDP. In 2007, Austria

ranked ninth worldwide in international

tourism receipts, with $18.9 billion. In terms

of international tourist arrivals, Austria was

12th with 20.8 million people.

The Financial crisis of 2007–2008 dented

the Austrian economy causing the Hypo Alpe-

Adria-Bank International to be purchased in

December 2009 by the Government for one

euro owing to credit difficulties, thus wiping

out the €1.63 billion of BayernLB.

Between 1995 and 2010, there were

4,868 mergers and acquisitions involving

Austrian companies worth 163 billion euros:

Bank Austria by Bayerische Hypo- und

Vereinsbank for 7.8 billion EUR in 2000,

Porsche Holding Salzburg by Volkswagen

Group for 3.6 billion euros in 2009, and

Banca Comercială Română by Erste Group

for 3.7 billion euros in 2005.

Rudolf Keßler

How many members do you have?

We currently have 49 members

Where are you based?

Lugeck 1-2, 1010 Vienna

What training do you provide?

We have a training course in modern

claims management that is run

over two weekends. We also provide

excellent networking opportunities.

How would you describe the country’s

attitude to late payment?

Payment behaviour can be described as

‘very good’ in Austria. According to 2017

figures, companies are typically paid

within 29 days (a fall of one day since

2016). The other categories are ‘Private’

(17 days), ‘Communities’ (30 days) and

‘Countries’ (36 days).

Are there any specific laws/regulation

regarding late payment?

A Late Payment law was launched in

March 2013. This was a new statutory

provision for payments made in a

contractual relationship. The debtor

has the choice between transferring the

amount of money to the creditor (cash

payment or transfer), or a bank transfer

to a bank account of the creditor.

In the event of subsequent changes

to the creditor's domicile or its bank

details, the creditor must bear the

increase in risk and expense that is

caused as a result. If the debt is paid by

bank transfer, the debtor must grant the

transfer order in good time so that the

amount due is credited to the creditor's

account when due. If the due date is not

determined in advance, the debtor must

issue the transfer order without undue

delay after the occurrence of the event

relevant for the due date. The debtor

bears the risk of delay or failure to

credit the creditor's account (unless

the bank is at fault

There is also special regulation

for the entrepreneur/consumer

relationships. If cash is not the

customary method of payment

within the contractual relationship,

the entrepreneur must inform the

consumer of their bank details such

that the account can be settled. This

does not apply to other methods

of payment such as credit cards. If

the debt owed by a consumer to a

business owner is settled by bank

transfer, the timeliness of fulfillment

means that the consumer issues the

transfer order on the due date.

In terms of arrears, the statutory

late payment interest rate is 9.2

percent above the base rate. The base

interest rate, which is valid on the

first calendar day of a half year, is

fixed for the respective half year. If the

debtor is not at fault for the payment

delay, interest of four percent per

annum is payable.

The duration of a statutory or

contractual acceptance or review

procedure is limited to 30 calendar

days from the date of receipt of

the goods or services. Contractual

agreements are permissible over a

period of acceptance or inspection

lasting more than 30 days, but subject

to the proviso that such an agreement

is not grossly unfair to the creditor.

In the event of delay in the

payment of monetary claims,

the creditor is entitled to claim a

lump sum of €40 from the debtor

as compensation for any costs of


Contractual provisions on the date

of payment, the term of payment,

the interest on arrears or the

compensation for operating costs

shall be null and void if they entail a

serious disadvantage for the creditor.

Contacts for further information:

Lisa Mahr (Assistant)

+43 720 982 970

The Recognised Standard / / March 2018 / PAGE 34

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The Recognised Standard / / March 2018 / PAGE 35

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American Express Services Europe Limited is authorised and regulated by the Financial Conduct Authority.

Recognising the best

in credit management

MANAGING cashflow, and

challenging the ongoing

scourge of late payment,

continues to be a key theme

for the Chartered Institute of Credit

Management (CICM) and other professional

business organisations, who are determined

to use their skills and influence to support

British businesses in a post-Brexit world. We

are determined, too, to share our knowledge

and experience to help build an economy

that is the platform for future growth and


Creating a community of like-minded

professionals is part of what we do. We

are committed to making a difference, to

develop and share best practice, and work

with Government to bring about change.

We are committed, too, in developing a

new generation of credit management

professionals, while never losing sight of

the needs of our existing members, and

supporting them at every stage of their

professional development.

Government certainly recognises the

vital role that our members play. Ministers

are similarly alive to the need for better

payment practices, as evidenced by the

recent introduction of the Duty to Report

regulations, and the appointment of the

Small Business Commissioner. Professional

credit management – and qualified credit

managers – have never been more in


The CICM UK British Credit Awards seek

to recognise individuals and companies that

demonstrate the very highest standards

of excellence and were voted for by a

distinguished panel of judges. So whether

you were a winner, highly commended, or

simply made the short-list, you can be proud

of what you have achieved.

Philip King FCICM

Chief Executive

Philip King, FCICM

Chief Executive of the CICM

Judging Panel 2018:

Stephen Baister FCICM, (President) Chartered Institute of Credit Management

Sean Feast MCIPR MPRCA, Director, Gravity London,

Managing Editor of Credit Management magazine

Amir Ali, Chairman, Civil Court Users Association (CCUA)

Lesley Batchelor OBE, Director General of the Institute of Export and

International Trade (IOE)

Glenn Collins, Head of Technical Advisory at ACCA

Matthew Davies, Director of Communication and Government Affairs, UK Finance

Adrian Hyde, President of R3

Debbie Nolan FCICM, Arvato UK and Ireland

Charles Wilson FCICM, Chairman at Lovetts Solicitors

Karen Young, Director, Hays Accountancy & Finance

Brenda Linger FCICM, Vice President, CICM


Headline sponsor:


Hosted by:




To view more photographs of the event visit:


British Credit

Awards 2018

Credit Information Provider of the Year


Dun & Bradstreet

Sponsored by

Judges' comment: “Very strong entry with

clear results, evidenced by impressive

customer testimonials. An innovative

product that should bring clear benefit to

the credit function.”


CoCredo, Credit Assist,

Graydon UK, PurplePatch

Presenter: Josef Busuttil FCICM Federation of European Credit Management Associations

Collector of award: Tim Vine, Head of European Trade Credit

Credit Insurance Specialist of the Year


Credit and

Business Finance

Sponsored by

Judges' comment: “Since winning the

award in 2017, this company has continued

to innovate and push the boundaries of

insurance broking.”


Nexus CIFS

Presenter: Jo Kettner, CEO

Collector of award: Matthew Green, Sales Director

The Recognised Standard / / March 2018 / PAGE 38


British Credit

Awards 2018

Risk Management Achievement of the Year


Company Watch

Sponsored by

Judges' comment: “Company Watch has

developed an algorithm to analyse key

phrases from corporate reporting that

enables it to better forecast corporate


Finalists: Aggregate Industries UK

Alphabet GB, Graydon UK,

Invictus Risk Solutions

Presenter: Brian Morgan, Product Director

Collector of award: Adam Tucker, Chief Data Scientist

Consumer Credit Team of the Year


Lending Stream

Sponsored by

Judges' comment: “An exciting business

doing exciting things, developing a new

and innovative product (‘Drafty’) in a

competitive sector.”


Cardiff University

Presenter: Dr Stephen Baister FCICM President of the CICM

Collector of award: Tushar Dar

The Recognised Standard / / March 2018 / PAGE 40

Commercial Credit Team of the Year



Sponsored by


Judges' comment: “A high performing

team focused on continuous improvement.

Clear goals and objectives, clearly met.”

Finalists: Adecco UK & Ireland

Aggregate Industries UK, Allied Bakeries

Atradius Collections, Ian Williams

European Metal Recycling, TXM Group, Veolia

Environmental Services (UK), Xoservce

Presenter: George Miles, Managing Director

Collector of award: Martin Kirby, Head of Order to Cash

Commercial Collections Team of the Year


HM Revenue and

Customs Debt


Telephone Centre,


Sponsored by

Finalists: Accenture GCP Ireland

Aggregate Industries, BT, JLL

HM Revenue & Customs - Debt Management

Telephone Centre, Cumbernauld, Liverpool,

Sthree, HM Revenue & Customs - Field Force

HM Revenue & Customers - Large Business Unit

Presenter: Laurie Beagle FCICM, Chair of the CICM

Collector of award: Ronnie Peters and Derek Bryce

Judges' comment: “HMRC showed a clear focus on people and engagement,

with specific initiatives such as the use of Digital ambassadors and

champions of health and wellbeing to further improve the business culture. A

great team led by a great leader.”

The Recognised Standard / / March 2018 / PAGE 41


British Credit

Awards 2018

Third Party Debt Collection Team of the Year



Collection Services

Sponsored by


Judges' comment: “A strong entry from a

good business clearly doing good work,

with excellent client testimonials and good

evidence of customer satisfaction.”

Finalists: Atradius Collections

Flint Bishop, Grosvenor Services Group

(a part of Echo Managed Services)

HLW Keeble Hawson, Themis Global

Presenter: Sean Feast, Managing Editor Credit Management magazine

Collector of award: Alex Hilton-Baird, Managing Director

Legal Team of the Year



Sponsored by

Judges' comment: “A clear winner;

impressive entry from a stand-out

company with tangible business results.”

Finalists: Blaser Mills, DWF

HLW Keeble Hawson, Flint Bishop

Shakespeare Martineau, Shulmans

Stevensdrake Solicitors

Presenter: Wayne Whitford, Director

Collector of award: Karen Savage, Partner & Head of Commercial Recoveries

The Recognised Standard / / March 2018 / PAGE 42



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The Recognised Standard / / March 2018 / PAGE 43

TO FIND OUT MORE or instruct us, call 08450 999 666 or visit


British Credit

Awards 2018

Project of the Year


Adler and Allan

Sponsored by

Judges' comment: “In a most impressive

project, Adler and Allan took prompt and

effective action to deliver real world impact

in incredibly difficult circumstances.”

Finalists: Flint Bishop, Aggregate Industries UK,

Medway Council, QA, United Utilities

Ascent Performance Group, DWF

Business Services Organisation - Accounts

Receivable, Hitachi Capital Invoice Finance

Presenter: Luke Broadhurst, Credit Strategy

Collector of award: Darren Allardyce, Group Credit Manager

Best use of Credit Technology


Court Enforcement Services

Sponsored by

Presenter: Barry Seamons, Director | Collector of award: Daron Robinson, Operations Director

Finalists: Ascent Performance Group, Acenture GCP Ireland,

Credit Assist, Iwoca, Loomis, Aggregate Industries UK,

Nimbla UCAS, Impellam Group,

Judges' comment: “The results speak for themselves – a hugely

impressive entry detailing a bespoke technology developed

in-house, with strong commendations from its clients.”

The Recognised Standard / / March 2018 / PAGE 44

Employer of the Year


Aggregate Industries UK

Sponsored by

Presenter: Karen Young, Director | Collector of award: Phil Rice, Head of Credit

Finalists: Adecco UK & Ireland, CoCredo, HM Revenue & Customs - Field Force

Lending Stream, QA, Sodexo U&I

Judges' comment: “A story of genuine

engagement, putting people at the heart of

the business.”

Learning and Development Impact Award


High Court



Sponsored by

Finalists: ABB, Aggregate Industries UK

Credit Management, Trust Ford, QA

Credit Management Training

European Metal Recycling

Hays Specialist Recruitment

Saint Gobain Building Distribution

Presenter: Dr Debbie Tuckwood, Head of Education & Professional Development CICM

Collector of award: David Grimes, Head of Training and Development & Alan J Smith, Director of

Corporate Governance.

Judges' comment: “In another very competitive category, HCEG showed

strong evidence of a real commitment to training, contributing to a high

employee retention rate and increased productivity.”

The Recognised Standard / / March 2018 / PAGE 45


British Credit

Awards 2018

Customer Service Hero award


Preet Garcha –


Industries UK

Sponsored by

Finalists: Callum Skears - Commsave

Laura Patterson - Business Services Organisation

(Accounts Receivable)

Lauren Rogers - Adecco UK & Ireland

Lauren Royle - Veolia

Mustapha Mellali - AECOM Middle East

Selina Purdy - Business Services Organisation

(Accounts Receivable)

Sinead McNamee - Business Services

Organisation (Accounts Receivable)

Presenter: Charlotte Turner, Director | Collector of award: Preet Garcha, Senior Specialist

Judges' comment: “In another closely fought category, Preet stuck out as being

dedicated to her employer her profession and her personal development. She

is a credit to her company, the CICM and the industry.”

Rising Star of the Year


Maxine Montgomery

– HM Revenue and


Sponsored by

Finalists: Amanda Willis - Adecco UK & Ireland

Amy Dykes - HM Revenue & Customs

Carolyn Mackay - Contract Scotland

David Macgregor - HM Revenue & Customs

Helen Felstead - Trust Ford

Manying Liu - Veolia

Paige Smith - Aggregate Industries UK

Sarah Jordan - Business Services Organisation

Sarah Hardacre - Sodexo UK&I

Sharon Kelly - HM Revenue & Customs

Presenter: Edward Thorne, Managing Director | Collector of award: Maxine Montgomery

Judges' comment: “Described as being ‘head and shoulders above her peers’,

Maxine demonstrates a flexibility and willingness to go the extra mile.”

The Recognised Standard / / March 2018 / PAGE 46


to the 2018 winners.

Delighted to have been shortlisted this year for these categories:

Credit Information Provider of the Year, Risk Management Achievement of the Year,

and Alan Norton as the Credit Professional of the Year.

Proud award winner:

Credit Information Provider of the Year 2016

Risk Management Achievement of the Year 2016 and 2017!

The Recognised Standard / / March 2018 / PAGE 47


British Credit

Awards 2018

Credit Professional of the Year


Phil Rice –

Aggregate Industries

Sponsored by

Finalists: Alan Norton - Graydon UK

Brendan Clarkson - Moore Stephens

Derek Bryce - HM Revenue and Customs

Diana Keeling - Ian Williams

Elisabeth Doppelhofer - Adecco UK & Ireland

Isaac Mireku - Harley-Davidson Europe

Joanna Carnell - Trust Ford, David Scottow - DWF

John Ricketts - Ardent Credit Services

Lanslord Asumakah - Maglans Micro-Credit

Lynette Fegan - Business Services Organisation

Nancy Cameron - HM Revenue & Customs

Steve Charter - TXM Group

Presenter: Richard Marriage, Managing Director | Collector of award: Phil Rice, Head of Credit

Judges' comment: “In a hugely competitive category, with a number of

outstanding entries, Phil is highly respected among his peers and considered

a beacon in the credit industry.”

Responsible Approach to Consumers award


United Utilites

Judges' comment:

“Interesting initiative in

a challenging and highly

competitive industry.”

Sponsored by

Presenter: Lesley Batchelor OBE Director General, Institute of Export and International Trade | Collector of award: Michelle Atkinson, Head of Income

This award is open to any organisation supporting consumers, and particularly those who are vulnerable, through any aspect of the credit

life cycle. Entries might come from the advice sector, lenders, collection agencies, the enforcement sector, or organisations granting credit to

consumers. The judges will be looking for evidence of an exemplary ‘treating customers fairly’ approach or measures to manage and support

consumers suffering financial difficulty.

The Recognised Standard / / March 2018 / PAGE 48

Presenter: Brenda Linger FCICM, CICM Vice President

Collector of award: Claire Seaton ACICM




Claire Seaton ACICM

Presenter: Simon Blackwell, Managing Director

Collector of award: Darren Allardyce, Group Credit Manager




Adler and Allan

Sponsored by

Sponsored by

An annual award presented to the

candidate who achieved the highest

aggregate CICM examination pass-marks

within the calendar year 2017.

Presented to the winning entry that most

impressed the judges.

The Recognised Standard / / March 2018 / PAGE 49

The Recognised Standard / / March 2018 / PAGE 50

The Recognised Standard / / March 2018 / PAGE 51




We believe a job well done should be celebrated.

That’s why we’re pleased to have sponsored the

award for ‘Employer of the Year’ at the recent

CICM British Credit Awards.

We are proud to have been involved in an event that

raises the profile of the industry, recognises and rewards

credit professionals for their hard work and commitment

and promotes credit management as an exciting career.

Whether you are looking for a credit risk analyst, team

leader or credit control administrator, we can find the

best talent to help meet your requirements, across the

public and private sectors.

We work exclusively in corporate partnership with the

CICM, providing invaluable careers advice and support

to our candidates and clients.

Congratulations to all the winners and all those

shortlisted for the awards.

Whether you’re looking to recruit or considering your

next career move, we have the expertise to help you.

Contact your recruitment expert on 020 3465 0017 or visit

Proud sponsors of the

CICM British Credit Awards 2018

The Recognised Standard / / March 2018 / PAGE 52


VAT in the GCC

What you need to know about the introduction

of the tax in the Middle East.

AUTHOR – Lesley Batchelor

Lesley Batchelor

THE recent imposition of

Value Added Tax (VAT) in

the United Arab Emirates

and the Kingdom of Saudi

Arabia (KSA), as part of the

Gulf Cooperation Council’s

(GCC) overall move towards introducing

it throughout the region by the end of

2019, is already impacting significantly on

businesses trading into the Middle East.

With China also reforming its own VAT

regime in recent years, the GCC’s adoption

of VAT could spark more emerging markets

around the world into adopting the indirect

tax for the first time.

So how can businesses account for

this new form of taxation in the GCC and

prepare for its possible continual spread

around the world?


The OECD describes VAT as a tax on ‘final

consumption that is broadly neutral towards

the production process and international

trade’. Though many ‘developed’ countries

have been using it since the 70s and

80s, it is in the last two decades that

‘developing’ countries have introduced

VAT. This has largely been done in order

to replace lost revenues from trade taxes

as countries have opened up their trading

borders as part of the move towards a

globalised economy.

A common VAT framework in Europe

was a key facilitator in the creation of

the common market in the EU, removing

unequal indirect taxes from markets

within the union that were designed

to protect member country’s domestic

industries. Indeed, whether the UK

continues its membership of the EU VAT

union post-Brexit will have a significant

impact on the nature of its future trading

relationship with the EU.

China’s VAT reform of 2016 – in which

VAT was implemented as the country’s

only indirect tax, rather than operating in

conjunction with the Business Tax which

had applied for a number of industries –

also made many headlines. The reform

was a key tactic in Beijing’s efforts to

restructure the Chinese economy toward

becoming more service-oriented and

toward having a greater focus on valueadded

manufacturing, rather than the

labour-intensive low-end manufacturing

it had been renowned for before.


The GCC is now set to adopt VAT for the

first time, with the KSA and UAE adopting

it since the start of 2017. It was introduced

at a standard rate of five percent – one of

the lowest rates of VAT charged globally.

This followed the signing of ‘The

Unified Agreement for Value Added Tax

of the Cooperation Council for the Arab

States of the Gulf’ by all six GCC states in

2017 – including Kuwait, Qatar, Bahrain

and Oman as well. This committed all of

the GCC nations to launch a harmonised

VAT regime within two years – a move that

will surely signal more open trade with

and within the region.


There are, however, going to be some

differences in the application of the rules

across the states as the agreement sets

some requirements as compulsory and

others as optional for consideration at

a local level. This means that national

and local economic and political

circumstances may affect the exact

implementation of VAT across the region.

Unlike with direct taxes, when a VATregistered

business sells to a goods or

service business in the KSA and UAE,

they will generally need to both charge

an extra five percent on top of the sales

from the customers of each eligible sale

‘Output VAT’ and pay five percent VAT on

top of the goods or services purchased

from other taxable businesses ‘Input VAT’.

Businesses need to account for

five percent from all eligible sales

separately from their revenue in order

to later remit a portion of it to the KSA

or UAE governments. Businesses need

to note how much VAT they collect from

customers and subtract from it the total

VAT it paid in that same period.

Businesses operating in both countries

need to register for VAT and comply with

VAT obligations including issuing tax

invoices, filling periodical VAT returns,

and so on. All resident businesses with

taxable sales in the past 12 months – or

expected sales in the next 12 months –

that exceed a certain threshold will be

required to register for, collect, and remit


Note that some limited goods and

services – like financial services or

residential real estate – are exempted

from VAT. There are also ‘zero-rated’

goods and services that are legally taxable

but taxed at a VAT rate of zero percent.


If you’re uncertain about your VAT

obligations when selling into the gulf

region – or any other region for that

matter – feel free to get in touch with us at

the Institute of Export and International


Lesley Batchelor OBE FCICM is Director

General of The Institute of Export and International


The reform was a key

tactic in Beijing’s

efforts to restructure

the Chinese economy

toward becoming more

service-oriented and

toward having a greater

focus on value-added


The Recognised Standard / / March 2018 / PAGE 53



Monthly round-up of the latest stories

in global trade by Andrea Kirkby.


JAPAN'S firm economic expansion

is continuing, and consumption

is picking up – and in the funny

world we live in now, a pick-up

in inflation is considered good

news (albeit only from zero to 0.3

percent a year). Of course, the country is

best known as an exporter, but is it a good

import market for British goods?

The answer seems to be yes. The UK's

biggest single export to Japan is financial

services, and Japan is also the UK's

second largest market for royalty income

and a good market for media sales

(apparently Doctor Who has a particularly

fervent following). Machinery, power

generation, chemicals and pharma also

do well, but we should be doing much

more in new technologies (particularly lowcarbon)

and in high end consumer brands.

The demand is there – and for companies

at the bleeding edge, they may find

interesting projects, for instance in hybrid

transport. Consumer goods manufacturers

should look at the huge Japanese

e-commerce sector, including giant

Rakuten, as a way into the market. Building

relationships is important anywhere, but

it's the key to getting into the Japanese

market. Finding a good distributor, or a

good collaboration, may take time but will

pay off in the long term. But you'll want to

check out their financial standing as well

as their business cards!




Trade insurers are currently putting

the boot into the UK retail sector,

discontinuing cover for Maplins,

New Look, and Poundland. You might

remember that the last time we saw this

kind of headline news was in 2008-9 when

the economy was in the doldrums after

the credit crunch, and Woolworths went

bust shortly after it lost its cover.

Now, as an exporter, you might not care

about half the British high street going

bust. But the likelihood is that insurers

who are taking the pain are going to look

to make up their losses elsewhere, and

that means higher premiums on all kinds

of trade insurance. Rycroft Associates

expects a 'substantial' increase in trade

credit insurance premiums in 2018, after

two decades during which the cost of

insurance effectively halved.

I have a nasty feeling that even if the

problems are mainly UK-based (with

insolvencies including Palmer & Harvey

last year, and now Carillion), increased

pain together with an upwards move in

interest rates will eventually start pushing

up prices for exporters, too. Make sure

you're on top of what you're paying, and

have alternative sourcing in place if your

insurers get a bit too ambitious.


It’s all change in Angola, with new president

Joao Lourenço moving more quickly

than expected to reform the economy.

He's abandoned the dollar peg which had

devoured the country’s foreign exchange

reserves as low oil prices hit the economy,

as well as replacing management at many

state-owned enterprises. The bond markets

love him – Angolan debt was the best

performing emerging market paper in the

last quarter of 2017.

The upshot has been a 12 percent

depreciation of the kwanza – and there’s

likely to be further derating. That will put

pressure on the country’s foreign exchange

reserves and on government debt.

However, Angola still looks like a good

bet for exporters. It has high economic

growth, with a young population, and the

UK is already a large investor in the country.

British firms do well in capital goods such

as industrial machinery and chemicals,

and there are great opportunities in the

infrastructure and agriculture sectors - but

education could be the real goldmine, as

there are plans to make English compulsory

in schools, and that should prime the

pumps for private and advanced language

training. Just make sure you’re not getting

paid in kwanza - or get properly hedged.

The Recognised Standard / / March 2018 / PAGE 54




CALL 020 7738 0777

Currency UK is authorised and regulated

by the Financial Conduct Authority (FCA).


Atradius has been picking its favourite

emerging markets for 2018, and it’s an

interesting list, which includes only one

of the four 'BRICs', India. There’s a strong

Central American focus, with Costa Rica,

Panama, and Colombia on the list, while

Africa and Asia score two each – Morocco

and Senegal, Indonesia and Vietnam.

Emerging Europe has a single pick: the

Czech Republic.

It's a wide spread as far as sectors go.

The auto sector will do well in Czechia and

Morocco, both orientated towards the EU

markets, as well as Vietnam with its zerotariff

access to ASEAN states; construction

and heavy machinery exporters can take

advantage of huge infrastructure projects

in Senegal, Costa Rica, Panama, and

India, by far the largest market. There are

opportunities in healthcare in Costa Rica

and Panama, while private consumption is

driving the consumer sector and retail in

Senegal, Vietnam, Indonesia and India.

Costa Rica is a small market – just

5m population - and the economy is

very US-dependent, but so far, Trump

hasn't targeted the country. Manageable

foreign debt, with a relatively high rate of

dollarisation, make the economy pretty

While Bitcoin soars and e-commerce

expands, trade finance remains resolutely

wedded to paper as a means of getting

things done. That has a high cost – one

bank reckons its trade finance staff spend

50 percent of their time on checking and

compliance, and checking paper-based

documentation is time-consuming and

can't easily be automated. Letters of

Credit have taken a long time to

dematerialise – despite huge advantages.

Banco Bilbao Vizcaya Argenteria (BBVA)

has used blockchain technology to reduce

the time needed to authorise a Spain/

Mexico deal from ten days to a couple of

hours, but other banks are still not putting

their toes in the water.

Shippers still depend on paper, too.

Unbelievably, CargoDocs didn’t really get

started till 2010, issuing its first electronic

Bill of Lading on January 25 that year. But

while with 4,500 customers it's changing

life in agricultural commodities, minerals,


resilient. There are opportunities in the

services sector, as well as in infrastructure

- particularly green tech (Costa Rica aims

to be carbon neutral by 2021) - but perhaps

most interesting to note, the Costa Rican

consumer loves a wee dram of whisky!

Meanwhile Mexico, which has got

on the wrong side of President Trump,

is still chugging along at two percent

economic growth. Though there’s some

political uncertainty with elections ahead,

government finances are good, with four

months’ foreign exchange reserves, and

that should give the country time to refocus

its exports on Mercosur and the Pacific

Alliance. Watch out for the weak peso, but

don't write Mexico off as an export market.

Meanwhile Mexico,

which has got on the

wrong side of President

Trump, is still chugging

along at two percent

economic growth.

and the energy sector, other sectors are still

using dead trees to communicate with each

other – with all the costs that involves.

If you’re still using paper, it’s time you

started looking for alternatives. And if your

bank tells you that you’ve got to use paper,

it might be time to look for an alternative

bank as well!

BBVA has used

blockchain technology

to reduce the time needed

to authorise a Spain/

Mexico deal from ten days

to a couple of hours, but

other banks are still not

putting their toes in the



GBP/EUR 1.149 1.225 Up

GBP/USD 1.430 1.372 Down

GBP/CHF 1.348 1.292 Down

GBP/AUD 1.798 1.728 Up

GBP/CAD 1.765 1.708 Up

GBP/JPY 156.578

149.125 Down


It’s nice to see Colas UK winning a major

contract for Hoima International Airport, in

Uganda backed by UK Export Finance. Uganda

is a great country for British exporters –

rapidly urbanising, with good demographics

and a lot of infrastructure projects as well

as the oil and gas developments which are

helping transform its economy.

This deal makes history – at £215 million

it's UKEF's largest ever loan to an African

Government. But Colas isn't stopping there

– the company has targeted East Africa

as an area for strategic expansion, and as

well as visiting Uganda with a UK trade

delegation, spent time in Ethiopia, another

booming market for construction and project



I try to limit the number of stories I write

about whisky, but the industry is so full of

great business ideas it’s difficult to do so.

The latest great idea is collaboration

blending. Fusion Whisky blends whiskies

made in Scotland with great whiskies from

elsewhere. It's already known for The Glover,

which marries Longmorn and Glen Garioch

with the famed Hanyu from Japan, and

it's just announced a blend of Amrut, from

Bangalore, India, with The Macallan and Glen

Elgin. Around 80 percent of this whisky will

probably be exported.

That underlines the global nature of today’s

markets. In craft beer, too, collaborative

brewing across national borders has become

popular – Wetherspoons regularly invites

foreign brewers to come and work with

British breweries.

I hate to think of the amount of paperwork

Fusion Whisky has to do, though.

The Recognised Standard / / March 2018 / PAGE 55



CICM membership gives you access

to all of these benefits

Credit Management


National and

regional events




and training

Professional letters

after your name

Branches around

the country











technical brief

Networking and collaboration

including social media

Legal, insolvency and

business advice lines

Continuing Professional

Development (CPD)

Benefits that keep you informed, help you in your

work and support your professional development

For details visit,

call us on 01780 722900, or email

The Recognised Standard / / March 2018 / PAGE 56





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Here’s how you and your team can get involved

Share your activities with us

by emailing


A bottle of


Create a limerick

Try your hand at writing a short limerick

or poem about Credit Week or Credit

Management. Don’t forget to share it

with us and we will send a bottle of

champagne to our two favourites.

Treat your team

Whether you take them out for lunch

or buy in a round of ice creams, let your

team know their hard work hasn’t gone


Frame your poster

Download the ‘I Love Credit’ poster

from our website, frame it in your

office and take a photo to share with

us. Bonus points will be given for those

who get creative with the frames.

Check for updates

Be sure to keep checking our website

throughout the week as we will be

adding updates, competitions and


Set challenges

Take the opportunity to create a little

competitive spirit among your team

with a few achievable challenges –

from hitting a KPI to having an

employee of the week award.

Get noticed

Generate awareness in your company

or your team by wearing fancy dress

or hosting a bake-off competition

between departments.

Credit Week | 12-16 March 2018

We hope that you will be able to join us throughout the week but even if you are

unable to attend, we hope you will join us by participating in any of the above activities.

Remember to share the things your are doing at

and check back for updates at

The Recognised Standard / / March 2018 / PAGE 58



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internationally. We now have the flexibility

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and it makes servicing of the solution much

easier to carry out. It can be easily adapted

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cover that can be applied in that territory

based on local, real-time intelligence.

Frankly, we couldn’t do this without Tinubu


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The Recognised Standard / / March 2018 / PAGE 59


Spinning Around

The latest monthly business to business payment

performance statistics.

AUTHOR – Jason Braidwood FCICM(Grad)

DOUBLE standards is a

criticism that could be

levelled at the culture

of late payments in the

UK. Businesses will be

meticulous, and indeed

relentless when it comes to chasing

payment from their suppliers, but will

adopt a far more relaxed approach to

paying their own supplier invoices.

The question is whether that approach

is intentional or should be blamed on

ineffective invoice processes within

a business that make late or delayed

payment an inevitability. On the basis that

I’m a half-glass-full kind of person and

giving the benefit of doubt, let us assume it

is more likely down to failing processes or

ineffectual technology.

According to research by Sapio, one in

three UK businesses cite invoice processing

timescales as the primary reason for late

payment. Frustratingly, this is the link

in the chain that can be quite quickly

improved. Invoicing processes do not

need to be laborious – newer automation

technologies take away the stress and can

ensure that suppliers are paid instantly

or well within agreed terms. This is

particularly important and well received

by smaller businesses, or any business that

needs to keep a tight grip on cashflow.

It is also a matter of reputation and

responsibility; the foundations of any good

business along with fair business conduct,

but this can all be easily eroded through

late payment. Avoiding any reputational

shortcoming is paramount, but particularly

when it can be a relatively ‘quick win’ such

as prompt payment.


Spinning around is a very apt description

for patterns of payment we have seen

across many of the sectors in the last

month. Not in a Kylie Minogue ‘spinning

around’ sense, but in a back-to-front,

upside-down sense, where we’ve seen

sectors do a complete 180 on their

payment performance.

Take the Public Administration sector,

which has spun out in completely the

wrong direction. The sector stood at the

top of the leader board last month having

dropped its days beyond terms (DBT)

down by nearly eight days. Fortunes have

reversed and the sector has piled on the

pounds again, adding eight days back

on to its total DBT. Interestingly, this is a

trend we saw at the same time last year,

so we could be seeing a seasonal slip in

payment efficiencies for the sector.

It is a similar story for the Energy

sector, which last month managed to

shed nearly four days from its DBT, only

to add a whole week. That sees the sector

pushing its average DBT to over 20 days – a

staggering uplift and the first time we’ve

seen a sector cross the 20-day threshold in

the last 12 months. For a sector that has its

own code of practice for accurate billing –

it is debatable if they’re taking their own


Spinning in the right direction is the

Mining sector that went from last place

adding nearly three days to its DBT, to

this month dropping back down again by

nearly four days. The sector still stands at

an average of 12.8 DBT, far higher than it

should be but still positions it in the lower

50 percent of the list of sectors.

The same is also true of the Hospitality

sector, which dropped the three days it

had added at the start of 2018. We heard

recently that the sector is the ‘most sleep

deprived profession in the UK’, but they’re

certainly not sleeping on the job this

month when it comes to efficiently paying

its suppliers.

According to research

by Sapio, one in three UK

businesses cite invoice

processing timescales

as the primary reason

for late payment.

Frustratingly, this is the

link in the chain that

can be quite quickly


Improved performance is always

welcome news, but inconsistent

performance is not. It leads to questions

over responsible business practices,

which in turn leads to reputational



It was recently reported that fewer than

20 big Scottish companies have complied

with legislation aimed at tackling

late payment to their suppliers. New

regulations such as The Payment Practices

and Performance Reporting (PPPR) mean

that larger businesses (with revenues

over £36 million or 250+ employees)

should produce reports every six months

outlining their payment practices and


This is pertinent news in light of the

fact that our monthly tracking highlights

that this month, Scotland is the worst

performing region in terms of its payment

practices, with DBT rising by over three

days to reach 17 DBT, the worst performing

region in over a year. It is also the second

month in a row that Scotland has found

itself in the ‘worst performing’ list – a sign

the uptake of adhering to a better code of

payment conduct is slow.

To end on a brighter note, East Anglia

has returned to its ‘best performing’ status

having knocked nearly four days off its

monthly DBT. This is the lowest DBT score

for the region in the last quarter.

Jason Braidwood FCICM(Grad),

Head of Credit and Collections at

Creditsafe Business Solutions

The Recognised Standard / / March 2018 / PAGE 60




17.2 DBT

Getting Better

Getting Worse

Mining and








Energy Supply


Real Estate


IT & Comms



Forestry &



Water &










11.9 DBT








Getting Worse


North West

12.8 DBT


West Midlands

East Midlands

Northern Ireland

Top Five Prompter Payers

Yorkshire & Humberside

Top Five Prompter Payers January 18 Change from December 17

Education 8.3 0.0

Agriculture, Forestry & Fishing 8.9 -0.3

Yorkshire &

Entertainment 9.2 0.0


Hospitality 10.1 -3.6

12.5 DBT

Real Estate 10.2 -1.6

The Recognised Standard / / March 2018 / PAGE 61

Bottom Five Poorest Payers

The same is also true of the

Sector Hospitality sector, which

dropped the three days it


had added at the start of

2018. We heard recently that

Bottom Five Poorest Payers January 18 Change from

Energy Supply 20.1 7.8

Professional and Scientific 17.3 0.2

Public Administration 16.6 8.0

Business Admin & Support 16.2 0.4

Manufacturing 15.8 0.9



12.8 DBT

Mining and

the sector is the Getting ‘most Better




Quarrying Hospitality Real Estate


East Anglia

Getting Better

deprived East Anglia profession -3.8 -3.6 -3.6 in the -1.6

Wales 13.6 DBT

13.4 DBT

15.0 DBT

UK’, but South they’re East -0.7

Getting Worse



Administration Energy Supply



not sleeping

North West


-0.1the job this


+8.0 +7.8


0.2 South West

South East month


Mining and

Forestry &

South West Quarrying Hospitality 12.1 Real DBTEstate


Education 0.2 Wales

Getting Better

Getting Better 11.6 -3.8


DBT -3.6 -1.6 -0.3 0.0

Top Five Prompter



East Anglia -3.6

Getting Worse

Top Five Prompter Payers 0.8 West January 18 Midlands

Change from December 17


Water & International

South East -0.7

Administration Energy Supply IT & Comms Education Waste

Bodies 8.3 Scotland 0.0


+8.0 +7.8

Agriculture, Forestry & Fishing East 8.9 Midlands 17.2 DBT

+6.5 +2.3


North West -0.1


Entertainment 9.2 0.0

2.2 Northern Ireland

ottom Five Poorest Payers

0.2 South West

Hospitality 10.1 -3.6

Real Estate 2.3 Yorkshire 10.2 -1.6 & Humberside

Getting Better 0.2 Wales Sector

Region January 18 Top Change Five Prompter from December Payers 17

Bottom Five Poorest 3.3Payers


0.4 London

Scotland East 17.2 Anglia -3.6 Top 3.3 Five Prompter Payers January 18 Change from December 17 Bottom Five Poorest Payers Northern

Getting Worse January 18 Change from December 17


Education 0.8 West 8.3 Midlands 0.0

Energy Supply 20.1 7.8

London 15.2 0.4

11.9 DBT

North West

Agriculture, Forestry & Fishing 8.9 -0.3

Professional and Scientific 17.3 0.2

South East -0.7

Wales 15.0 Entertainment 0.2

9.2 0.0

Public Administration 16.6 Scotland

12.8 DBT

2.2 East Midlands


Hospitality 10.1 -3.6

Business Admin & Support 16.2 17.2 0.4 DBT

West Midlands North 13.6 West -0.1 Real





10.2 -1.6


Manufacturing 15.8 0.9

East Anglia 13.4 -3.6

2.3 Yorkshire & Humberside

0.2 South West





Top Five Prompter Payers

13.6 DBT

Getting Worse

Top Five Prompter Payers

Region January 18 Change from December 17

South West 11.6 0.2

Northern Ireland 11.9 2.2

South East 12.1 -0.7

Yorkshire Scotland

Humberside 12.5 2.3

East Midlands 12.8 2.2



15.0 DBT

IT & Comms


Yorkshire &


12.5 DBT



12.8 DBT

Region January 18 Change from December 17 London Region

15.2 DBT

South West 11.6 0.2


South East

Northern Ireland Northern 11.9 2.2 South West

London 12.1 DBT

South East Ireland 12.1 -0.7 11.6 DBT


Yorkshire and Humberside 11.9 12.5 2.3

West Midl


North West Yorkshire &

East Midlands 12.8 2.2

East Angli

12.8 Humberside


12.5 DBT

Bottom Five Poorest Payers

Region January 18 Change from December 17

Scotland 17.2 3.3

London 15.2 0.4

Wales 15.0 0.2


West Midlands 13.6 0.8


East Anglia 13.4 -3.6


15.0 DBT

13.6 DBT

South West

11.6 DBT


Forestry &




Bottom F


Bottom Five P

Energy Sup


Public Adm

Business Ad



East Angl

13.4 DBT





15.2 DBT



CICM qualifications

CICM has started an exciting programme to introduce a

new generation of CICM qualifications. With a simpler

structure clearly linked to credit and collections roles.

Do you love your role and are looking to develop your career in credit and collections? Where

better to start than a programme of study leading to internationally recognised qualifications.

CICM qualifications are regulated by the qualifications regulators in England, Wales and Northern

Ireland and delivered globally to give trusted credentials wherever your career takes you.


Combined qualifications –

One for each level

No matter what your area of work

or level of job role, there are CICM

qualifications to work towards. Later

this year, CICM will phase out separate

qualifications in debt collection and

credit management and introduce a

new Certificate and Diploma in Credit

and Collections.



The new qualifications will have a

simpler structure which means that

you need just two awards for a CICM

Certificate or four for a CICM Diploma.

You will earn a certificated CICM

award for each assessment you pass,

and internationally recognised digital

badges with regulated certificates on

completion of each qualification.

Taking Control

of Goods



Level 2 Certificate in Credit and


The Level 2 Certificate in Credit and

Collections is the new CICM qualification

expectation for professionals working

at operations level. Closely linked

to the Credit Controller/Collector

Apprenticeship, you can choose from

seven awards covering credit control,

debt collection and enforcement areas.

You will earn a certificated CICM award

for each assessment you pass and you

need two awards for the CICM Level 2

Certificate in Credit and Collections

Level 2 is likely to be the starting point

if you are new to the profession or have

limited business education. If you would

like to develop further, you could add a

further two awards to achieve a Level

2 Diploma in Credit and Collections, or

start working directly towards CICM

Level 3 awards.


The Recognised Standard / / March 2018 / PAGE 62




Level 3 Diploma in Credit Collections


The Level 3 Diploma in Credit and

Collections is the new CICM benchmark

for advanced credit, collections and

enforcement practioners or team

leaders; holders will be eligible for

Associate Membership of the Chartered

Institute of Management. Closely linked

to the Advanced Credit Controller/Debt

Collections Specialist apprenticeship,

the qualification covers in-depth

business and more advanced, rolespecific

knowledge and skills. Also, you

will have the opportunity to specialise in

credit risk, collections or recoveries and

enforcement work. Credit professionals

may start at this level, especially if they

are well qualified or are involved in more

complex work.

You will earn a certificated CICM

award for each assessment you pass

and the Level 3 Diploma in Credit and

Collections when you pass four awards,

including either one of the Credit

Management Awards (Trade, Consumer,

Export or the combined award) or the

new CICM Debt Collections Award. This

qualification gives you eligibility to

Associate Membership and professional

letters ACICM.

All assessment will be at Level 3 and

therefore you will no longer be able to

transfer credit from Level 2 to the Level

3 Diploma. As a result, if you would like

recognition of any Level 2 Credit you

have already achieved, you will need to

complete your Level 3 Diploma in Credit

Management before this qualification is

withdrawn after January 2020.


Level 5 Diploma in Credit Management MCICM(Grad)

CICM does not propose any major changes to the current Level 5

Diploma because the standard is pitched at the right level for

senior roles and is the perfect step for those looking to study at

degree level.

However, CICM recognises the current Diploma is significantly

larger than previous versions which makes completing it difficult

given the demanding roles of many managers. Also, depending on

area of work, some modules are more relevant than others.

As a result, CICM will require completion of only four out of six

awards for the Level 5 Diploma in Credit Management from October

2018. Going forward you can still study all areas and will receive

CICM certificated awards for any additional Level 5 modules

completed. In this way, CICM retains the current, highly valued

modules, gives choice, and establishes opportunities for further

study for those who perhaps are not looking immediately to take

the next step to a MBA Degree.

The Recognised Standard / / March 2018 / PAGE 63

What if you are part-way through a

CICM qualification?

CICM will continue to certificate awards up

until and including January 2020 to give time

for completion of qualifications under current

arrangements. However, CICM will gradually

replace old assignments with assessments

linked to the new qualifications. Also, CICM

will arrange exemption arrangements at no

additional cost to you, so that where possible

you can transfer to the new qualifications

directly if you prefer.

What to do next

Look out for further advice in future

communications. If you have any

queries, please do not hesitate to email CICM

will email all learners about the changes and

so if you are not currently receiving emails

from CICM, please send your current contact

details to

How is Brexit likely

to impact your export


CICM export payments, procedures

and Brexit implications


Open training being held in central London on

23 May and 11 October 2018.

£390+vat non-members: £310+vat members


A tailored programme can be delivered at your offices at a

time convenient for your team


The current global financial situation

poses many challenges for traders

of all sizes who look to the export

market to maintain, or improve,

their profitability especially given

uncertainty around Brexit. It is

now more important than ever for

exporters to understand export

contract terms and the implications

of the various terms of payment to

their business. Careful selection of

payment methods will avoid the need

for costly downstream debt collection

processes. New letter of credit rules,

UCP 600 were introduced in 2007

and International Standard Banking

Practice was updated in 2013. You

will be briefed on these protocols and

recent rulings by the ICC leading to

reduction in discrepant documents.

Incoterms is currently under review

and a new version, Incoterms 2020 is

being prepared. You will be appraised

of the current state of that review.

This is a key opportunity for credit

managers to update themselves on

the latest processes and procedures to

ensure that payments for their exports

are made on time and export credit

risk is minimised. You will be alerted to

sensible preparation for Brexit.


The training is designed for all

managers and team members involved

in the export process, credit control,

finance, sales, documentation and

shipping. It is suitable for those with

no, or limited, experience and also as a

comprehensive update for those with

previous knowledge.

Contact E: or T: 01780 722907 to

book your place and discuss your training requirements

The Recognised Standard / / March 2018 / PAGE 64

6 years at the top

of the game

It’s not luck!

Nexus Cifs Ltd, a member of the Nexus Group, has a proven track

record of consistent performance and reliability as one of the most

prolific credit insurance providers in the UK and Europe.

Six consecutive years as finalists in the British Credit Awards is a

testament to their continued success and growth in the industry.

Visit or contact

Ian Selby - Commercial Director

DD: 020 3011 5623 M: 07917 540 307


The Recognised Standard / / March 2018 / PAGE 65

Nexus CIFS Ltd

52-56 Leadenhall Street

London EC3A 2EB

T: +44 (0) 20 3011 5700





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

Hays Credit Management is the award winning national specialist

division of Hays Recruitment, dedicated exclusively to the recruitment

of credit management professionals in the public and private

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

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

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

HighRadius is the leading provider of Integrated

Receivables solutions for automating credit, collections,

cash allocation, deductions and eBilling operations.

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

(SaaS) or as SAP-certified Accelerators for SAP

Finance Receivables Management. With a track record

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

and increasing operational efficiency, HighRadius

solutions help teams achieve payback within a year.

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

Financial strength metrics

Extensive corporate structures

Sanders Consulting is a niche consulting firm

specialising in improving Credit Management

Leadership & Performance for our clients.

We provide people and process focussed

pragmatic solutions, consultancy, strategy days and

performance improvement workshops and we

are proud to manage and develop the CICMQ

Programme and the Best Practice Network on

behalf of the CICM. For more information please

contact: enquiries

Key IVR provide a suite of products to

assist companies across Europe with credit

management. The service gives the end-user

the means to make a payment when and

how they choose. Key IVR also provides a

state-of-the-art outbound platform delivering

automated messages by voice and SMS. In a

credit management environment, these services

are used to cost-effectively contact debtors and

connect them back into a contact centre or

automated payment line.

CreditForce by Innovation Software is the leading

Collections and Working Capital Management

Systems used globally in over 26 countries and by

over 20 percent of the Top 100 Global Law Firms.

Our systems improve cash flow, reduce DSO,

automate cash allocation, control risk, automatically

generate intelligent workflows and tasks, speed up

query resolution and manage the entire end-toend

collections cycle. Fully integrated with over 40

leading ERP and Accounting systems and delivered

locally or through Microsoft-Azure’s secure cloud


American Express is a globally recognised provider

of payment solutions to the business sector

offering flexible collection capabilities to meet

company cashflow objectives across a range of

industries. Whether you are looking to accelerate

cashflow, create a competitive advantage to drive

business or looking to support your customers

in their growth American Express can tailor a

solution to support your needs.

Credica are a UK based developer of specialist

Credit and Dispute Management software. We

have been successfully implementing our software

for over 15 years and have delivered significant

ROI for our diverse portfolio of customers. We

provide a highly configurable system which enables

our clients to gain complete control over their

debtors and to easily communicate disputes with

anyone in their organisation.

The Recognised Standard / / March 2018 / PAGE 66

Proud supporters


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, we deliver

when it comes to collecting outstanding debts.

Our Client focus is reflected in the customer

relationships. Structuring our service to meet your

specific needs, providing a collection strategy that

echoes your business character, trading patterns

and budget.

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. Graydon is owned by

Atradius, a leading European credit insurance

organisation. It offers its seamless service

through a worldwide network of offices and


Rimilia provides award winning Cash Application

& Cash Allocation software products that deliver

industry leading tangible benefits like no other.

Having products that really do what they say

is paramount – add to that a responsive and

friendly team that are focused on new and

ongoing benefit realisation and you have the

foundations for successful long term business


Safe’s Credit Control module manages the entire

credit lifecycle, from credit checking through to

cash collection and beyond, providing detailed

analysis of performance. Safe’s single, intuitive and

easy-to-use application seamlessly brings together

the necessary data and tools you require to

achieve your objective of creating a profit centre

culture within your credit control function.

Dun & Bradstreet grows the most valuable

relationships in business. Whether your customer

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

& Bradstreet delivers the data, analytics and insight

to grow your most profitable relationships and

obtain a global, unified view of your customer

relationships across credit and collections.

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. Every day, we help our customers by

making complex business payments simple, secure

and seamless.

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.

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.

Tinubu Square is a trusted source of trade

credit intelligence for credit insurers and for

corporate customers. The company’s B2B

Credit Risk Intelligence solutions include the

Tinubu Risk Management Center, a cloud-based

SaaS platform; the Tinubu Credit Intelligence

service and the Tinubu Risk Analyst advisory

service. Over 250 companies rely on Tinubu

Square to protect their greatest assets: customer


Moore Stephens is a top ten accounting and

advisory network. Our national creditor services

team has expert insights in debt recovery. This,

combined with unparalleled industry and sector

knowledge, enables our team to assist creditors in

recovering outstanding debts.

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. With our

unique 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.

The Recognised Standard

The Recognised Standard / / March 2018 / PAGE 67


Take it or leave it

Gareth Edwards gives some insight into

new holiday pay case law

THE Working Time Regulations

1998 set out workers’ rights

to paid annual leave and in

a landmark ruling by the

European Court of Justice (ECJ)

late last year, UK law has been

found to be incompatible with EU legislation.

In essence, the ECJ has confirmed that where

a worker is refused their paid annual holiday,

their entitlement to paid annual leave will carry

over to the next holiday year.

The case, King v The Sash Windows

Workshop Limited, was brought by Conley

King, who was engaged by The Sash Window

Workshop Limited (SSW) from June 1999 until

October 2012 as a self-employed commission

only salesman. Mr King’s contract made no

reference to the issue of annual leave and

throughout his time at SSW Mr King had not

taken any paid holiday. Over the period that he

was engaged by SSW to provide it with services,

he was offered an employment contract

however he turned this down, choosing instead

to remain self-employed. Following the end

of the relationship, Mr King brought a claim

for unpaid holiday pay in the Employment

Tribunal (ET) pursuing 24.15 weeks’ pay. SSW

opposed this claim, arguing that the Working

Time Regulations 1998 state that if paid holiday

is not taken in a leave year, then it is lost and

cannot be carried over.

The ET found that Mr King was a ‘worker’

which entitled him to paid annual leave. A

number of appeals then followed the initial

decision with the case making its way to the

Court of Appeal (CA) before being referred to

the ECJ regarding the question of holiday pay



The ECJ noted that SSW had benefitted from

Mr King not taking the annual leave that he,

as a worker, had been entitled to and went

on to say that denying workers their holiday

pay effectively prevents them from exercising

their right to paid annual leave. In addition,

the ECJ said that a claim for accrued annual

leave entitlement cannot be prevented because

another holiday year has started, and that this

principle was incompatible with EU law.

Crucially, the ECJ said that the normal time

limits concerning how much holiday can be

carried over do not apply when an organisation

has failed to grant paid annual leave to their

workers. This means that a worker could be

AUTHOR – Gareth Edwards

entitled to claim the accrued, but unused,

holiday entitlement when their appointment

ends. Further, they can claim compensation for

the leave that they decided not to take because

that leave would be unpaid.


This decision has potentially far reaching

consequences for businesses who engage

workers – particularly when read alongside the

recent decisions in the so called ‘gig economy’

involving the likes of Uber, CitySprint and

Addison Lee. It is clear that the decision in

this case could result in significant liabilities

for organisations operating in the gig economy.

While the ruling only applies to the first four

weeks of annual leave entitlement required

under the relevant EU legislation, rather than

all 5.6 weeks of UK holiday, businesses could

face substantial bills if they need to pay several

workers for several years of unpaid annual

leave on the termination of their engagement.

In the meantime, the case has been

referred back to the Court of Appeal who will

need to determine how UK legislation is to be

interpreted in line with this recent decision.

For the moment, firms should remain alert to

this decision and keep track of its progression.

It was made clear by the ECJ that it is the

responsibility of the organisation to understand

its obligations and that it is irrelevant if it

wrongly considers a worker not to be entitled to

annual leave because of a misunderstanding of

their status. Significantly, where an organisation

does not allow workers to exercise their right to

paid annual leave then it is for that business to

bear the consequences, and potential costs, of

accrued but unused holiday pay.

In light of this decision, this means looking

carefully at those individuals engaged on a

self-employed basis such as those individuals

who provide their services through the gig

economy. The direction of travel in some of

the cases above creates a risk that individuals

engaged on a contractor basis can argue that

they were actually workers; they could argue

that they should receive back holiday pay in

respect to holiday that they were unable to take.

This gives the risk of an individual being found

to be a worker’s real teeth; Conley King was able

to recover 13 years’ worth of untaken annual

leave entitlement.

Gareth Edwards is a partner in the employment

team at Veale Wasbrough Vizards. gedwards@

The Recognised Standard / / March 2018 / PAGE 68

The Recognised Standard / / March 2018 / PAGE 69

New CICM members

The Institute welcomes new members

who have recently joined







Lydia Catterall

Stephen Darkin

Mark Durant

Teresa Jones

Penelope Calvarese

Julie Dootson

Geraldine Malone

John Martin

Hilti (Gt Britain) Ltd

Pearson Group

Andrews Sykes Hire Ltd

Resourcing Solutions Ltd

Weightmans LLP

Neil Skinner

Susan Wells

HMCTS - Her Majesty's Courts and

Tribunal Service

Pendennis Shipyards







Kelly Anderson

Declan Burke

Wai Leung Cheung

Sameh Elghazzawy

Emma Parsons

Jane Morrey

Carsten Muessig

Nadia Piemontese

Ford & Slater

ID Medical

Rhenus Logistics

Flowserve GB Ltd

BNP Paribas Leasing Solutions

Weightmans LLP

Hertz Europe Service Centre Ltd

John O'Sullivan

Shay Waldron

Magnet Networks Ltd



Kelly Bailey

Chantal Banton

Ross Barden

Jennifer Barron

Sarah Basham

Shawn Bell

Louise Bent

Rebecca Bonser

James Brock

Shona Brumpton

Emma Campbell

Julia Carr

Stephanie Casse

Alessandro Catalli

Dawn Chambers

Caroline Chapman

Fay Cunningham

Ashish Dhokia

Christopher Dixon

Jordan Doherty

Steven Duly

Aleksey Esakov-Tijonov

Iain Fishlock

Dave Forster

James Fraser

Emma Galinski

Mark Griffiths

Katherine Harris

Amy Hatton

Robyn Hill

Van Tam Ho

Simon Hodge

Michelle Hoyte-Morgan

Rachel Jackson

Andrew Jellett

Liam Johnson

Louis Johnson

Megan Johnston

Christopher Jones

Dimitris Kamberis

Khaled Kammoun

Saras Kanungo

Stephanie Kelly

Kadery Kibria

Patrick Knight

Badr Lahbi

Vinsum Leung

Hannah Lightfoot

Eela Lucas

Emma Lyons

Hannah Lyon-Wall

Jennifer MacDonald

Jean Paul Manichino Lamboley

Wesley Maye-Edwards

Carlsberg UK


One Step Solutions

Kerry Logistics UK Limited

Gallowglass Ltd

Premier Foods Group Ltd


Southwark Council

Frontier Agriculture Ltd

Frontier Agriculture Ltd

Sidey Solutions Ltd

Carlsberg UK

Les Mills Fitness UK Ltd

Siderise Holdings Ltd

Serco Grup plc

Carlsberg UK


UK Fuels Limited

Britvic Soft Drinks Ltd

Chandlers Limited

Forest Environmental Limited

Informa UK Ltd

Worldpay UK Limited

Oodle Finance

Frontier Agriculture Ltd


Herbert Smith

Dukes Bailiffs Ltd

SEC Recruitment Ltd

One Step Solutions

Twenty 3 Six Ltd

Kingsway Tyres (Stamford) Ltd

Nisa Retail Limited

Carlsberg UK

Kerry Logistics UK Limited


Sergas Group

Your Support Line

Worldpay UK Limited

Gullivers Travel Agency

Medway Council

Kerry Logistics UK Limited

Carlsberg UK

Carlsberg UK

Brighton & Hove City Council

Carlsberg UK

Financial & Credit Insurance Services Ltd

PP O'Connor Ltd

Nuxe Laboratory

Bristow & Sutor

David McAlinden

Sylvia McGill

Ashley Mcnally

Nela Mencner

John Milner

Lewis Mitchell

Philip Morgan

James Morris

David Morrison

Katherine Murray

Mark Nathan

Abraham Nkrumah-Baah

Robert Parsonage

Thomas Peacock

Leanne Pirie

Peter Rhodes

Elizabeth Ripley

Deepak Robinson

Clifford Rowe

Kelly Rushmore

Peter Sacre

Victoria Salter

Samantha Samsonroy

Emir Sertbay

Emma Skinner

Dipesh Soma

Alessandro Stagnaro

Victoria Stephen

Samuel Swain

Sarah Tabor-Thickett

Neal Taylor

Rohan Tracey

Paula Trotter

Wendy Truesdale

Robert Walker

Samantha Walsh

James Warren

Grace Weston

Jeffrey Wild

Charmaine Witter

Frauke Wolff

Craig Wyatt

Steven Barr

Lisa Bottiglieri

Veronica Collins

Chantelle Harvey

Berna Joseph

Ross Main

Louise Martin

Mark Speight

Timothy Turner

Stephen Wadham

Daniel Wicks

Adele Williams


NHBC National House Building Council

Barbon Insurance Group Limited

Premier Farnell

Andrew Wilson & Co

Bristow & Sutor

Andrew James Enforcement Limited

Hays Accountancy Personnel

Bristow & Sutor

Ipos MORI UK Ltd

Chandlers Limited

CDH Savings and Loans Company Limited

Worldpay UK Limited

Worldpay UK Limited

UK Fuels Limited

Christie Digital Systems Inc. UK

Informa UK Ltd

Barclays Bank

Sheffield City Council

Morson International


Close Brothers Motor Finance

McArthurGlen UK Ltd

MAE Construction

Carlsberg UK

Bristow & Sutor

Brighton & Hove City Council


Britvic Soft Drinks Ltd

Total Debt Relief Ltd

One Step Solutions

Flow Energy

Carlsberg UK

Kerry Logistics UK Limited



Frontier Agriculture Ltd

Bridgewater Support Solutions Ltd

Carlsberg UK

Kerry Logistics UK Limited

Worldpay UK Limited

Nike UK Ltd

Safenet Uk Ltd

NHBC National House Building Council

Myunidays Limited

LeasePlan UK Ltd

BAUM Management Sarl

Assure Services (NI) Ltd

Shawbrook Bank

Legal Recoveries and Collections Ltd

Adler and Allan Ltd

Anixter Ltd

Border Holdings (UK) Ltd

The Recognised Standard / / March 2018 / PAGE 70





(an understanding of credit management will be an

advantage but is not essential)

The Chartered Institute of Credit Management (CICM)

is looking for an experienced Business Development

professional to manage and develop commercial activity

for the Institute.

The over-arching goal will be to ensure all revenue streams

are maximised and support the business in achieving its

strategic objectives. The role reports directly to the Chief


To view the full job description and apply, visit

Closing date 18 March 2018

CICM events not to be missed


Credit Reports – a beginner’s guide.

Hosted by Company Watch

Thursday, 22 March 2018 @ 1:30pm

Personal Skills Workshop;

All Change! A survival guide

Change is an impact on all of us. This workshop will give us

the tools need to not only cope with change but to rise to the


London – Wednesday, 18 April 2018 – Hays Offices,

107 Cheapside, London, EC2V 6DN

Manchester - Thursday, 3 May 2018 – DWF LLP.

2 Hardman St, Manchester M3 3AA

Industry Workshop; Let’s Build a Rocket, Guys!

Learn about High Performing Working Practices and how

to use the Best Practice approach to launch you and your

organisation into the stratosphere.

London – Wednesday, 3 October 2018 - Hays Offices,

107 Cheapside, London, EC2V 6DN

Leeds – Wednesday, 10 October 2018 DWF, Bridgewater Place,

Water Lane, Leeds, LS11 5DY

Fellows Lunch – House of Commons

One of the most iconic buildings in the world, no other venue

is more instantly recognized than the Palace of Westminster.

It is impossible to walk through its corridors or dine in its

imposing function rooms without a deep sense of awe.

House of Commons, London – Friday, 8 June 2018

Please email for further details.

Law Conference, hosted by DWF LLP

London, Wednesday, 28 November 2018

The Walkie Talkie Building, 20 Fenchurch St, London,


CICM Best Practice Events

Manchester – Tuesday, 20 February

Hosted by Hilti (GB) Ltd

Belfast – Wednesday, 23 May

To book your place at any of these events, please

contact Becki at or register online


Insolvency Conference, hosted by Moore Stephens

London – Thursday, 17 May 2018 - 150 Aldersgate Street,

London, EC1A 4AB

The Recognised Standard / / March 2018 / PAGE 71


Preparing for success

The first interview went well and you’ve been called back

for the all-important second interview. What’s next?

AUTHOR – Karen Young, Director at Hays

Karen Young

The objectives of the

interviewer at this stage

will differ from the first

time round as they delve

further into your motivation

for the job, your skills,

whether you’re a good fit for

the company culture and

addressing any reservations

they may hold from the first


YOU’VE made a good first

impression at the first

interview and have been

asked back for a second

interview. The company

is now seriously considering

hiring you and as a result you’ll be

feeling more confident as you take a step

closer to securing the job. However, you

may still be wondering what to expect as a

second interview can differ from the first

in a number of ways.

A more senior figure will most likely

be conducting the second interview depending

on the size of the company. Confirm

this with your recruiter beforehand

so you can do some research into the person,

either on LinkedIn or via the company

website. Check the format of the interview

beforehand as well, you don’t want to

find yourself preparing for a one-on-one

interview to then be faced with a panel of

stakeholders or delivering a presentation.

You’ll feel more confident knowing who

will be on the other side of the table.

The objectives of the interviewer at

this stage will differ from the first time

round as they delve further into your motivation

for the job, your skills, whether

you’re a good fit for the company culture

and addressing any reservations they may

hold from the first interview.

Your level of interest in the opportunity:

People are often turned down at

interview because employers just don’t

believe they are highly motivated or want

the job enough. Don’t underestimate the

effectiveness of vocalising your interest.

The interviewer will be looking to determine

whether you’re still interested in

the opportunity after having learnt more

about the company and role in the initial

interview stages and through your research.

Speak about what you found interesting

from the first interview and use the

opportunity to ask any questions you may

have. This will give the interviewer an indication

of how well you would perform if

offered the job, so make sure this comes


Communicating your skills and experience:

The interviewer will want to explore

your skills further and hear detailed

evidence of your competencies. ‘Describe

a time you have used effective management

skills’ or ‘how would you approach

a difficult situation’ are likely questions

at this stage. Credit management professionals

often need to explain complex financial

topics to colleagues who may not

be as familiar with the world of credit or

finance, so be sure to answer questions

clearly and succinctly to demonstrate this


Are you the right ‘fit’? They will also

want to establish whether you’ll be a good

fit for the culture of the organisation and

you may be taken around the office to meet

potential colleagues. Be yourself throughout

this exercise, as assessing cultural fit

is essential for you to be confident it is the

right role for you. With this in mind, perhaps

prepare your own questions such as

asking what the team is like, or what your

interviewer enjoys about working there.

Address any doubts the interviewer

may have: It’s possible that the interviewer

may be holding some reservations from

the first interview that they’ll be looking

to address in the second. Recall any questions

that you were asked multiple times,

or anything you struggled to answer and

ask your recruiter for feedback to help

you address these second-time round. If

there are any gaps between your skills and

the job requirements consider addressing

these with your recruiter, or commit to

learning them in the future. Emphasise

that you’re a fast learner and are keen to

develop yourself, showing the interviewer

that you’ll be worth any investment the organisation

will put into your training and


Salary expectations: Salary and notice

period are often a topic of conversation

at this stage. Have this information ready

beforehand. If you’re unsure of how to

negotiate your salary discuss with your recruiter

or consult a tool such as our online

salary checker which can help you understand

what your potential earnings could


Remember, good lasting impressions

count. Thank your interviewer for their

time and contact your recruiter as quickly

as possible after the interview to reiterate

your interest in the role.

Understanding the purpose of second

interviews can help you to improve your

preparation strategy and show an interviewer

exactly why they should hire you

above everyone else.

The Recognised Standard / / March 2018 / PAGE 72

Supported by

Headline partner



Where the UK and European credit industry attends a

week of conferences, meetings and networking events

Headline partner

Headline partner








Hosted by



Platinum partner



Call: 020 7940 4835

Credit Week headline partner

Credit Summit headline partner

Credit Awareness week partner

Platinum partners

Gold partners

Silver partners


Bronze partners


Helping customers connect

Category sponsor

Event partners

Event supporters

Hitachi Capital (UK) PLC

The Recognised Standard / / March 2018 / PAGE 73


Full list of events can be found on our website:


1 March

CICM South Wales Branch (2 CPD hours)


Annual General Meeting and Debt Protocols

Start: 18:00 for members for AGM. 18:30 for Guests

Finish: 21:00

Contact : Diana Keeling Email:

VENUE : Holiday Inn Cardiff, Merthyr Road,

Tongwynlais, Cardiff, CF15 7LH

7 March

CICM West Midlands Branch


Invitation to CICM West Midlands Awards Night

Contact : E: or T: 01902 673672

VENUE : Crowne Plaza, Holiday Street,

Birmingham, B1 1HH

8 March

CICM Bristol and West Branch


Annual General Meeting and Wine Tasting


Contact : Marcus Knocker (01934) 523976 / 07974


VENUE : Avery’s Wine Cellars, 9 Culver Street,

Bristol, BS1 5LD

12-16 March

CICM Supporting Credit Week 2018


CICM is proud to be official supporters of ‘Credit

Week’, embracing the largest gathering of credit

industry professionals across the continent.

​To secure the special pricing, CICM members

should call 020 7940 4835 quoting their CICM

membership number.

Contact :

14 March

CICM Wessex Branch


Annual General Meeting and Networking

Contact : Paul Davies (01489) 550480 / 07787


VENUE : Debtcol Offices, Eagle Point, Little Park,

Farm Road, Segensworth, PO15 5TD

15 March

CICM Sheffield and District Branch


GDPR ‘Are You Ready?’ (2 CPD hours)

Contact : Myron Fedak T: 07973770632

VENUE : Mercure Sheffield Parkway Hotel

Britannia Way, Catcliffe, Sheffield, S60 5BD

15 March

CICM North West / Merseyside & North.

Wales Branches


Networking and Annual General Meeting

Contact : David Thornley T: (01282) 687117 /


VENUE : Aimia Foods Penny Lane, Haydock,

WA11 0QZ

19 March

CICM North East Branch


AGM and ‘The Art of Listening’ Presentation

Contact : (Further details will be communicated

via the CICM website (Branch events)

imminently – visit

north-east . Email

VENUE : Muckle LLP, Time Central, 32

Gallowgate, Newcastle upon Tyne NE1 4BF

20 March

CICM Northern Ireland Branch


Here, Now and The Future of Credit in Northern

Ireland. Focusing on the challenges facing the

Credit Profession in NI today and how we can

secure our future by developing an effective,

proactive and commercial approach

Contact : Members E: northernirelandbranch@ to book.

Non-members book online at:

VENUE : Titanic Belfast, Queen Quay, Belfast,

Londonderry BT3 9EP United Kingdom

20 March

CICM East of England Branch


AGM, Insolvency Update and CICM HQ Update

Contact : (01277) 201554 / 07710 392934 Carol Baker,

Branch Secretary,

VENUE : FRP Advisory, Jupiter House, Warley Hill

Business Park, The Drive, Brentwood, CM13 3BE

22 March

CICM London Branch


Annual General Meeting and Presentation.

Edward Judge of Irwin Mitchell will be giving a

presentation upon “Recent Legal Issues affecting

Credit Managers”.

Contact : Kabir Gulabkhan T: 07738242320

VENUE : Hays Recruitment 107 Cheapside,

London, EC2V 6DN

22 March

Corporate Partner Company Watch Webinar :

Credit Reports – a beginner’s guide


In this presentation we will examine the different

elements contained in credit reports .

Contact :

22 March

CICM Kent Branch – AGM


Annual General Meeting. Booking deadline:

28 March 2018

Contact : Kevin Artlett T: 07905 611186

VENUE : St George Hotel, 8 New Road Avenue,

Chatham, ME4 6BB

22 March

CICM Thames Valley Branch


Curry Night - Details to follow

Contact : Heidi Pocock T: 07540929150

VENUE : Yew Tree The Indian Courtyard

Collinswood Road, Farnham Common, Slough,


The Recognised Standard / / March 2018 / PAGE 74

22 March

CICM Sussex and Surrey Branch


Annual General Meeting

Contact : Natascha Whitehead T: (01483) 564692 /

0777 078 6433

VENUE : Thales UK, Manor Royal, Crawley, RH10 9HA



14 March


VENUE : London

16 March



VENUE : London

16 March



20 March


VENUE : London

20 March


VENUE : London

28 March


VENUE : London


1 March

Hays Credit Network Event


We are delighted to invite you to our networking

seminar in High Wycombe with our expert

speakers from the CICM and Blaser Mills LLP.

Contact : Refister your place: https://

VENUE : Blaser Mills LLP, 40 Oxford Road, High

Wycombe, HP11 2EE

5 March

Regulatory Strategies


GDPR – Are you ready?

Contact :

VENUE : Queens Hotel, City Square, Leeds, LS1 1PJ

6/7 March

ICTF – 2-day Webinar: Incoterms 2010 –

what every credit professional should know!


During this 2-day webcast, you will learn

everything you need to know about Incoterms and

why they are so important in international trade.

Contact :

7 March

Experian Credit Forum – BPF Polymers and



Contact : Please contact Brent.cumming@ on 07885 675 092

VENUE : Cardinal Place, Experian London


Credit Risk


Profitable Growth

© Dun & Bradstreet, Inc. 2018

The D&B Credit line of products delivers Dun & Bradstreet’s industry-leading data and analytics in a

modern, user-friendly platform to help you manage business credit risk, drive profitable growth, and

integrate analytics across your business.

To learn more about D&B Credit, visit or give us a call on +44 (0)800 001234.

In the UK Dun & Bradstreet Limited is certified to ISO 27001 and is authorised & regulated by the

Financial Conduct Authority in relation to providing credit The references Recognised on Standard non-limited / companies. / March 2018 / PAGE 75

© Dun & Bradstreet, Inc. 2018






Stockton-on-Tees, £50,941-£62,260 + bonus

+ flexible working hours

A global shared centre requires a highly experienced

accounts receivable manager. With strong emphasis

on the Accounts Receivable function, this role will focus

on implementing and developing changes in order to

improve the efficiency of the function’s procedures as

well as considering the impact of these changes for the

whole company. You will monitor records of amounts

owed to the company and assure prompt collection

of payments, working with credit managers to ensure

appropriate cash management. To be successful, you

will have strong experience managing and encouraging

a team within accounts. Ref: 3219043

Contact Elizabeth Enright on 01642 226716

or email



Walton-on-Thames, up to £34,000

An ambitious and motivated credit control supervisor

is required at an international luxury retail brand. With a

strong emphasis on maintaining customer relationships,

this newly created role has two direct reports and requires

a hands on approach. You will be responsible for all debtor

reporting and deputise in the Credit Control Manager’s

absence, who is soon looking to retire. To be successful, you

will have a flexible and adaptable attitude to change whilst

contributing to the continuous improvement of the credit

control function. This is a fantastic opportunity for a smooth

handover into a credit management position. Ref: 3183985

Contact Chelya Katende on 020 8247 4042

or email



Southampton, up to £35,000

A fantastic credit manager job has become available at

a leading business that is growing at a fast pace. In this

role, you will work closely with the Financial Controller,

overseeing a team of 5-6 staff. You will manage the

team responsible for chasing overdue payments, credit

checks, cash allocation, billing and query management.

Other duties will include weekly and monthly reporting,

reviewing aged debt and developing controls and

processes to improve efficiency. In return, you will receive

a competitive salary with an excellent pension scheme and

free parking.

Ref: 3203999

Contact Emily Oakes on 07872 158536

or email



Bournemouth, up to £30,000

An exciting opportunity in Bournemouth has arisen at this

expanding UK market leader as it continues to achieve

its growth plans. You will be responsible for all billing

and credit control requirements and oversee a team of

five assistants. Previous billing, direct debt and existing

supervisory experience are essential. This role would

suit an individual who enjoys coaching and motivating

a team. In return, you will receive a competitive salary,

non-contractual bonus, an excellent pension scheme

and life assurance as well as scope for career progression

as the business continues to expand. Ref: 3213192

Contact Emily Oakes on 07872 158536

or email

The Recognised Standard / / March 2018 / PAGE 76



Braintree, £29,000 + pension + parking

+ subsidised canteen

Due to an internal promotion, a US owned business

with a small finance team is looking for a credit controller

to join its team. You will be responsible for collections

via telephone and email, credit checking, inter-company

reconciliations, liaising with the sales team for non-payers,

self-billing, invoicing, analysis and debtor reporting.

Working to strict deadlines, this role would suit an

individual who likes to improve processes and get

involved with the business to make a difference. You will

have worked in a similar role and be confident in credit.

With a high volume of Excel work, knowledge of pivot

tables and V look ups would be beneficial. Ref: 3221535

Contact Gemma Booty on 01245 782131

or email



Bedford, £23,000

A motivated credit controller is required at this

family-owned, leading toy manufacturer. Reporting into

the Finance Manager, you will join a small finance team

and be solely in charge of the Credit function for the

business. Looking after 250 accounts, you will set credit

limits and liaise with credit insurers. In return, the role

offers variety and a very friendly culture. If you are an

individual who enjoys problem solving and a role where

no two days are the same, this is the job for you.

Ref: 3223225

Contact Emma Ruttle on 01908 870254

or email



London, £25,000-£27,000 + targeted bonus

A market-leading UK media advertising company

is looking for an accomplished credit controller to join

its finance team. Duties will include chasing payment,

cash application, account reconciliation and reporting.

This role will suit someone who is looking to take on

extra responsibility. You will need to be personable as you

will have the opportunity to not only build relationships

over the phone but also to lead face-to-face meetings

with large media agencies. To be successful, you will be

confident with a can-do attitude.

Ref: 3185214

Contact Julia Foster on 020 3465 0020

or email



Nottingham, up to £22,000

An outstanding opportunity has become available to

work as part of a global, widely recognised logistics

business. You will be targeted with collecting overdue

debts, reduction of debtor days and setting up payment

plans where required. You will be charged with analysing

potential debt risk, resolving customer queries, and liaising

with internal and external stakeholders where needed.

A focus on developing client relationships, and account

management will also be required. This role will suit an

experienced credit controller who is familiar working on

high value key accounts and enjoys working in a fast-paced

environment, dedicated to achieving results. Ref: 3182335

Contact Matt Leech on 0115 947 7500

or email

This is just a small selection of the many

opportunities we have available for credit

professionals. To find out more email or visit us online.

The Recognised Standard / / March 2018 / PAGE 77

Paladin Commercial would like to congratulate

Kier Group

as winners of

Commercial Credit Team of the Year 2018

At the CICM British Credit Awards 2018


The Recognised Standard / / March 2018 / PAGE 78


CICM Directory of Services









Harman House, Station Road,

Guiseley, Leeds, LS20 8BX

T: 01132387660

F: 0113 238 7669



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.


Controlaccount PLC

Compass House, Waterside

Hanbury Road, Bromsgrove

B60 4FD

T: 01527 549522 (Sales dept)


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


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 (

Blaser Mills LLP

Rapid House

40 Oxford Road, High Wycombe,

Buckinghamshire. HP11 2EE

T: 01494 478660/478661

E: Jackie Ray or Gary Braathen


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:


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...”


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


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



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

Wayne Whitford – Director

M: +44 (0)7834 748 183

T : +44 (0)1992 663 399

E :


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


Creditsafe Business Solutions

Bryn House, Caerphilly Business Park, Van Rd,

Caerphilly, CF83 3GG

T: 0292 088 6500.



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 80 >

The Recognised Standard / / March 2018 / PAGE 79


CICM Directory of Services





CoCredo Limited

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790 600



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



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, a leading

European credit insurance organisation. It offers a comprehensive

network of offices and partners worldwide to ensure a seamless


Credica Ltd

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

T: 01235 856400E:


Our highly configurable and extremely cost effective Collections and

Query Management System has been designed with three goals in


• 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,


T: +44 (0)20 7043 3300



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.


Northburgh House, 10 Northburgh Street, London, EC1V 0PP

T: +44 (0)20 7549 5000E:


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


Prof. Schumann GmbH

innovative information systems

Weender Landstr. 23, 37130 Göttingen, Germany

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

E: W:

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.



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



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


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

The Recognised Standard / / March 2018 / PAGE 80


CICM Directory of Services





Safe Computing Limited

20, Freeschool Lane, Leicester, LE1 4FY

T: 0844 583 2134



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.




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: W:

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



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



Corbett House, Westonhall Road, Bromsgrove, B60 4AL

T: +44 (0)1527 872123 E:


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.


T: +44 7399 406889



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.


Dun & Bradstreet

Marlow International, Parkway Marlow

Buckinghamshire SL7 1AJ

Telephone: (0800) 001-234 Website:

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:


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



Moore Stephens

Moore Stephens LLP,

150 Aldersgate Street,

London EC1A 4AB

T: +44 (0) 20 7334 9191



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.



Neil Jinks FCICM – Director

M: +44 (0)7740 179 515 T: +44 (0)121 516 7462

E: W:

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.

continues on page 82 >

The Recognised Standard / / March 2018 / PAGE 81


CICM Directory of Services





American Express

76 Buckingham Palace Road,



T: +44 (0)1273 696933


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


•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


Berks RG1 7JX | UK

T: 0870 081 8250



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.


Chartered Institute of

Credit Management (CICM)

The Water Mill, Station Road, South Luffenham,


T: 01780 722910 E:


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

( as well as services and advice for the

wider business community (

CICMos (CICM Online Services) WWW.CICM.COM

T: 01780 722 907. E:


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.




Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029



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.





You can connect with them

all now by having a listing in



£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.



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



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 / / March 2018 / PAGE 82

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


For all email entries for the crossword please email:

If you subsequently decide that you do not wish to

receive such notifications please email the Institute at 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.





1. Shame

6. Hairdo

10. Not hard

14. Hyrax

15. Caribou

16. River of Spain

17. From the inside

19. Period

20. A Japanese feudal baron

21. 59 in Roman numerals

22. Labyrinth

23. Master of ceremonies

25. Doorkeeper

26. Go on horseback

30. Coming

32. Relating to urine

35. Competitor

39. Casual eatery


1. Corrosive

2. ___ fide

3. Against

4. Appear

5. Lofty nest

6. American Dental Association

7. Cut down

8. Remedy

9. African antelope

10. Dressmaker

11. A religion based on sorcery

12. Immobilized

13. Laser printer powder

18. French for "Name"

24. Islet

25. Loosen, as laces

26. Country bumpkin

27. Colored part of an eye

28. Platter

CLOSING DATE: 14 March 2018

40. Spectator

41. A reversion to the state

43. Blight

44. Unfurl

46. Blackthorn

47. Vice ___

50. Spats

53. Decorative case

54. A Buddhist temple

55. Narcotic

60. Big party

61. In all

63. Mimics

64. Sleigh

65. Fruit of the oak tree

66. Where a bird lives

67. Combustible pile

68. Verse

29. Fanatic

31. Covetousness

33. Sporting venue

34. Lion sound

36. Absent Without Leave

37. Roman emperor

38. Tall woody plant

42. Completely

43. Santa's helper

45. Rubbish

47. A strict vegetarian

48. French for "Storehouse"

49. Governs

51. Mist

52. Lance

54. Stinging insect

56. Skin irritation

57. Greeting at sea

58. School session

59. Sea eagle

62. Lyric poem



Frank Carroll MCICM, David Feder FCICM and Steve Rawlings 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.

The Recognised Standard / / March 2018 / PAGE 83




Rimilia at the British

Credit Awards

Rimilia are delighted to support the CICM

British Credit Awards, recognising

achievements over the last 12 months. Well

done to all the nominees and winners, in

particular our Rimilia customers.


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