Credit Management June 2018

credit

The CICM magazine for consumer and commercial credit professionals

CREDIT MANAGEMENT

CM

JUNE 2018 £12.00

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

Winds of

change

Headwinds on

the path to

economic

improvement

Sean Feast talks to

the new CEO of Hoist

Finance. Page 13

How Bexley Council

is improving supplier

relationships. Page 16


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JUNE 2018

www.cicm.com

32

COUNTRY FOCUS –

ADAM BERNSTEIN

26 CONTENTS

13 – INTERVIEW

TOWN AND COUNTRY –

COCREDO

Sean Feast talks to the new CEO of

Hoist Finance and discovers more

about the future of debt sale in Europe.

16 – OPINION

How Bexley Council is rewarding its

supply chain with rebates for early

payment and the effects it is having on

its suppliers.

20 – LATE PAYMENT

Nalanda Matia of Dun & Bradstreet

gives her take on the state of the UK

economy.

26 – TOWN AND COUNTRY

Sean Feast meets Dan Hancocks from

CoCredo to discuss the importance of

‘dual’ reports.

34 – A GUIDING HAND

Alex Simmons looks at the role and

team behind the CICM Technical

Committee.

46 – A DAY IN THE LIFE OF

A typical day of a CICM Graduate who

has now taken his first steps into the

world of credit management.

53 – SOAPBOX CHALLENGE

Glen Bullivant on the English psyche

and the predetermination to downplay

our country’s achievements.

@Credit_Magazine

Publisher

Chartered Institute of Credit Management

The Water Mill, Station Road, South Luffenham

OAKHAM, LE15 8NB

CICM GOVERNANCE

President Stephen Baister FCICM / Chief Executive Philip King FCICM CdipAF MBA

Executive Board Laurie Beagle FCICM – Chair / Glen Bullivant FCICM / Sue Chapple FCICM

Larry Coltman FCICM / David Thornley FCICM(Grad) – Treasurer / Pete Whitmore FCICM – Vice Chair

Advisory Council Laurie Beagle FCICM / Jason Braidwood FCICM(Grad) / Glen Bullivant FCICM / Sue Chapple FCICM

Larry Coltman FCICM / Kim Delaney-Bowen MCICM / Victoria Herd FCICM(Grad) / Edward Judge FCICM

Christelle Madie MCICM(Grad) / Robert Marr MCICM / Debbie Nolan FCICM / Bryony Pettifor FCICM(Grad) / Allan Poole MCICM

Phil Rice FCICM / Charlie Robertson FCICM / Chris Sanders FCICM / Richard Seadon FCICM. / David Thornley FCICM(Grad)

Debra Weston FCICM Pete Whitmore FCICM

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

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

Credit Management is distributed to the entire UK and international CICM

membership, as well as additional subscribers

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

not, unless stated, reflect those of the Chartered Institute of Credit Management. The Editor reserves the right to

abbreviate letters if necessary. The Institute is registered as a charity. The mark ‘Credit Management’ is a registered

trade mark of the Chartered Institute of Credit Management.

Telephone: 01780 722910

Fax: 01780 721333

Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor

Sean Feast

Deputy Editor

Alex Simmons

Art Editor

Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Imogen Hart and Iona Yadallee

Advertising

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Telephone: 0203 603 7934

Email: anthony.cave@cabbell.co.uk

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The Recognised Standard / www.cicm.com / June 2018 / PAGE 3


EDITOR’S COLUMN

Sean Feast

Managing Editor

Big businesses are not

always the bad guys

I

was alerted to an interesting press

release recently from a merchant

services provider Paymentsense.

More than four in ten Small and

Medium-Sized Enterprises (SMEs)

in the UK admit to having no

financial buffer to keep the wolves from

the door, despite average monthly debts of

almost four thousand pounds.

With interest rates expected to rise

during 2018, that means more than two

million SMEs appear to have no financial

back-up plan if it all turns the shape of a

pear.

This ‘financial confidence gap’ between

what business owners need to feel secure,

and what they actually have, comes after

the British Business Bank published

a report revealing that small business

confidence and demand for finance are

declining.

The Government-owned development

agency found the proportion of businesses

confident of loan approval fell recently

from 58 percent to 43 percent. The report

also highlighted that lending was flat to

small businesses in 2017. These findings

arrive at a time of uncertainty over

European trade negotiation outcomes,

and reports of an expected medium-term

interest rate increase.

For those businesses that do have

something in reserve, Paymentsense found

that the most popular backup is cash savings

– held by nearly six in 10 (59 percent) of

prepared businesses. A third (34 percent)

said their buffer included property and

nearly a quarter listed an overdraft (23

percent). Plant and machinery featured

for a fifth (20 percent), with 17 percent

using business credit cards.

This is all fascinating stuff, as is the

fact that almost two thirds of SME owners

are in debt. But what really struck me

was a snippet of information buried deep

in the story that to me should have been

the lead. According to the research, more

than half (55 percent) of all SMEs admit to

deliberately paying suppliers and partners

late to ease cash flow problems, and more

than a fifth (21 percent) said they do this

at least once a month.

We are constantly told by various

interest groups, media commentators

and politicians that poor payment

practice is the reserve of big businesses.

They are the pariahs; small businesses

the downtrodden heroes. This research

perhaps confirms what many of us

know to be the truth: that the challenge

is much greater than that, and that

small businesses are as guilty (or not

– depending on your point of view) of

wanting to hold onto their cash for as long

as possible as the rest.

To every business there is a supply

chain. To have a grown-up conversation

about solving the late payment challenge

we first need to ditch the tired and

stereotypical views of big businesses as

being the only baddies.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 4


POWERED

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2018

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CMNEWS

A round-up of news stories from the

world of consumer and commercial credit

Written by – Sean Feast and Alex Simmons

Services back on track as overall

credit picture remains mixed

Philip King FCICM

Chief Executive of the CICM

Although marginal, we

have seen a positive

overall improvement in

the Index. The confidence

in both Manufacturing

and Services appears to

have increased steadily

in the last quarter.

THE Services sector continues to

show signs of improvement in

business confidence according to

the latest results (Q1 2018) from

the UK’s Credit Managers’ Index (CMI), the

quarterly barometer from the Chartered

Institute of Credit Management (CICM).

The 1.5-point increase in Services sees the

index close at 54.6, a 0.3 percent climb on Q4

2017. Manufacturing also continues to rise,

up 1.0 on Q4 to 57.2. The CMI’s headline figure

is also on the rise, increasing by 1.4 points to

55.4, which is currently more optimistic than

the market as the FTSE All Share dropped by

eight percent.

The index of favourable factors all

performed well in the first Quarter with

increases across the board: Credit Sales rose

by 4.4 to 70.6; Order Book was +2.8 higher

(69.8); and New Credit Applications climbed

an impressive 7.4 to close on 66.4.

Results from the index of unfavourable

factors, however, were mixed, with four of the

seven measures dropping points. However,

the remaining three did show signs of

improvement: Days Sales Outstanding (DSO)

was +0.9 higher (56.1); Bad Debt Provision

increased by 4.6 to close on 48.9; and

Overdues climbed 6.1 points to 52.3.

Philip King, Chief Executive of the CICM,

says the latest results show steady progress:

“Although marginal, we have seen a positive

overall improvement in the Index. The

confidence in both Manufacturing and

Services appears to have increased steadily

in the last quarter. This progress is positive

but it is important to remain cautious as

things can change quickly with various

potential pitfalls on the horizon.”

The CMI’s results show a shift in regional

confidence, with Wales, East Midlands,

Northern Ireland, North West and North

East all falling below the 50-point threshold.

Scotland, London and South East continue to

lead the way with over 60 points.

The CMI’s sector-specific results show

all but three of the 19 sectors meeting or

exceeding the positive threshold. The three

sectors that are struggling are Insurance

(42.0), Basic Resources (48.0) and Chemicals

(40.0). Oil and Gas and Personal and

Household Goods are setting the pace, both

on 70 points.

The CMI is a diffusion Index, producing

scores of between one and 100 (typically in

a range of 40 – 60). Ten equally weighted

factors are included – three favourable

and seven unfavourable and the Index is

calculated on a simple average of 10 factors.

cicm.com

>CSA ACTS TO HELP THOSE WITH MENTAL HEALTH ISSUES

THE Credit Services Association (CSA) has

proactively revised its Code of Practice to

make it easier for customers to evidence

mental health problems that affect their

ability to manage their money without having

to revert to the Debt and Mental Health

Evidence Form (DMHEF) for which GP’s often

levy a substantial charge.

John Ricketts, President of the CSA, says

that individuals should not have to pay for

medical evidence, where such evidence

may be used to help improve their financial,

physical and mental well-being: “Those who

are most vulnerable should not have to take on

more debt to prove it,” he says.

The revised Code advises members

not to ask customers to approach health

professionals for evidence in the first instance,

but rather to engage with the customer to

better understand their position, consider

what evidence of their health problem is

appropriate, and to seek other forms of

supporting evidence (such as a prescription or

appointment letter) if necessary.

Only as a last resort, or if the evidence

is directly required by the original creditor,

should the Debt and Mental Health Evidence

Form be requested – and even then, the cost

should not be borne by the individual in debt.

The change follows a series of meetings

last year, championed by the Prime Minister,

Theresa May, the Minister for Mental

Health, Jackie Doyle-Price, and the Money &

Mental Health Policy Unit, in which various

organisations (including the CSA), charities

and clinicians (including the BMA), discussed

how the Form is used and paid for.

Jackie Doyle-Price MP, praised the move

by the CSA describing it as a significant step:

“Around half of those with a debt problem also

have mental ill health and many of those with

a mental health condition cite concerns about

money as a contributing factor,” she said.

“Everyone with a mental health condition

deserves to be treated compassionately and

I encourage other groups to follow the CSA’s

lead to ensure their customers’ mental health

is both respected and protected.” csa-uk.com

The Recognised Standard / www.cicm.com / June 2018 / PAGE 6


Transfer ensures continuity of

UK’s main payment systems

>NEWS

IN BRIEF

OPERATIONAL responsibility for the Bacs

and Faster Payments systems, which

process a combined £6.3 trillion worth of

payments annually, has transferred to the

New Payment System Operator (NPSO).

The move is said to ensure the continuity

of operations of the UK’s main payment

systems, which are relied upon every

day for thousands of salaries, benefits,

bills, mortgage and other internet and

mobile banking payments. Users of these

payment systems will not have to do

anything differently; all payments are being

processed as usual.

The transfer of the operational

responsibility and control for the Bacs

and Faster Payments products and

managed services occurs simultaneously

with Bacs and Faster Payments schemes

becoming subsidiary companies of the

NPSO. Bringing the retail payment systems

together is a key step in establishing a

single voice for retail payments in the

NPSO and it is hoped it will enable a vibrant

economy, reduce complexity and risk and

provide a platform for future competition

and innovation.

Paul Horlock, Chief Executive of the

New Payment System Operator, says this

is the opportunity to create the future of

retail payments in the UK: “We will be the

leading payments authority that will create

a best in class payment infrastructure,

and standards in the UK for the benefit of

people everywhere.”

The Cheque & Credit Clearing Company

Limited (C&CCC), that manages the paper

processing system for cheques and

incorporates the Image Clearing System

(ICS), is also due to join the NPSO in the

coming months along with UK Payments

Administration Limited (UKPA), the

company that provides people, facilities

and business services to the payment

ecosystem.

newpso.uk

Strategic support

SUE Chapple FCICM, a familiar face in the

credit management profession and active

contributor to the CICM Think Tank, is

joining the CICM as Strategic Relationship

Manager. Commenting on her appointment,

Philip King FCICM Chief Executive said: “Sue

will be known to many at the Institute in

her roles as an Executive Board Trustee and

member of the Advisory Council, which she

has now resigned. She brings a wealth of

experience, is passionate about the Institute

and is looking forward to using both her

credit management and relationship skills

to the benefit of the CICM.”

MatchPlace launches new invoice platform

A new peer-to-peer invoice finance platform has been launched, billed as offering cash

advances of up to 85 percent of the value of an unpaid bill. MatchPlace IF is said to enable

private and institutional investors, as well as banks, to fund invoices, thus releasing capital

for SMEs. Businesses can submit their invoices through the MatchPlace IF platform for

verification and receive up to 85 percent of their face value from registered investors.

MatchPlace was founded by Tusk Capital Chief Executive, Andrew Irvine, former Global

Head of Forex at Credit Agricole, Benjamin Gedeon and IT expert Christophe Monget.

The company also offers a foreign exchange service for SMEs called MatchPlace FX.

matchplace.com

Encore encore

ENCORE has reached an agreement to

purchase the remaining interest in Cabot

held by existing shareholders, including J.

C. Flowers and Co, for five million shares of

Encore common stock and £175.5 million

(approximately $238.2 million) which will

result in Cabot becoming a wholly owned

subsidiary of Encore. In 2013, Encore made

an initial investment in Cabot representing

an approximate 43 percent ownership

interest. Encore’s decision to acquire

the remaining interest is said to reflect

Cabot’s strong performance since Everest’s

initial investment nearly five years ago.

The transaction is subject to regulatory

approvals and other customary closing

conditions. encorecapital.com

New CFO at Hoist finance

HOIST Finance has appointed Christer

Johansson as its new Chief Financial Officer.

Christer has been working at Hoist Finance

since 2014 and has held the positions of

Head of Business Control and Head of Group

Finance, and since the end of March 2018 he

has served as acting CFO.

“We have conducted a thorough

recruitment process, and we are very pleased

that we were able to find the best candidate

internally. Christer has extensive industry

expertise and the right professional and

personal qualities to support Hoist Finance

when we now are about to take the next

steps in terms of growth and operational

efficiency,” says Klaus-Anders Nysteen, CEO

of Hoist Finance.

Christer has experience from the

banking industry with several positions

within business development, advisory

and front office management at SEB. He

also has experience in strategic planning

and business development from his role

as Management consultant at McKinsey &

Company.

“Having been with the company for nearly

four years, I know the company well and

feel strongly committed to our mission. I look

forward to work together with the finance

department and our whole management

team to execute on our strategy and vision,”

Christer adds. hoistfinance.com

“We have conducted a

thorough recruitment

process, and we are very

pleased that we were

able to find the best

candidate internally’’

Christer Johansson

Chief Financial Officer

The Recognised Standard / www.cicm.com / June 2018 / PAGE 7


NEWS

IN BRIEF

New Director of High

Court Compliance

COURT Enforcement Services has appointed

the experienced and authorised High Court

Enforcement Officer, Alan Smith, as Director

of High Court Compliance. He will report

directly to the Board on all compliance

aspects of High Court Enforcement.

Alan has significant industry knowledge

with over 30 years’ high level management

and operational experience within High

Court Enforcement. He was previously High

Court Enforcement Operations Director and

Head of High Court Enforcement for two

other major enforcement companies.

A former Board Director of the High Court

Officers Association, Alan played a key role

in the design, implementation and delivery

of an educational pathway for Authorisation,

by creating a degree level course in High

Court Enforcement. This was in conjunction

with the professional body ICM (now the

Chartered Institute of Credit Management).

Alan joined the enforcement industry in

1984 where he was a Sheriffs Officer for

West Midlands County, Warwickshire,

Leicestershire, Herefordshire and Kent.

courtenforcementservices.co.uk

Feeling the pinch

UK consumers spent less on leisure

activities in Q1 2018 and adjusted their

discretionary spending in order to prioritise

essentials, according to the latest findings

from the ‘Leisure Consumer Q1 2018’ report

by Deloitte.

Despite improving consumer confidence

in the first quarter of 2018, the quarterly

survey of more than 3,000 UK adults

revealed the extent to which leisure

spending is under pressure.

Consumers reported reducing their leisure

spending in seven out of 11 categories

compared to the same period in 2017.

Culture and entertainment spending fell

by four percentage points year-on-year,

while drinking in pubs/bars and in-home

leisure both saw spending fall by three

percentage points. Of those who spent less

on going out in Q1 2018, almost half (45 per

cent) said they did so because they could

not afford it, suggesting that consumers

were consciously downshifting their

discretionary spending.

The prolonged cold winter and impact

of the ‘Beast from the East’ prompted

consumers to boost their spending on

holidays, with spending on long stay

increasing by three percentage points, while

short break spending rose by two percentage

points year-on-year. deloitte.com/uk

CIFAS reports high

levels of ID fraud

A

new report from Cifas, the UK’s

fraud prevention service, reveals

that identity fraud is on the rise,

and that new ‘products’ including

telecoms and insurance are being targeted.

The report identifies and details the

fraud trends from over 300,000 cases of

fraudulent conduct recorded in 2017. The

data, from 306 organisations, including

many major UK brands, is one of the most

comprehensive pictures of fraud and

fraudulent attempts in the UK.

Although there has been an overall drop

of six percent in cases recorded by Cifas

members, the new figures show concerning

increases in a number of areas.

The number of identity frauds increased

once again in 2017, with almost 175,000

cases recorded. Although this was only a

one percent increase compared with 2016,

it’s a 125 percent increase compared with

ten years ago. The difference this year,

over previous years, is that the increase

is not down to increases in fraudulent

applications for plastic cards and bank

accounts, which are the products most

frequently targeted by identity fraudster,

but due to targeting of other sectors such

as telecoms, online retail and insurance.

This ‘retargeting’ by identity fraudsters

can be seen as a shift towards more

accessible products, such as mobile phone

contracts, online retail accounts, retail

credit loans and short-term loans.

Also increasing last year was the

number of money mules – individuals

who allow their bank account to be used

to facilitate the movement of illegal funds

– a form of money laundering. Individuals

are being targeted online by criminals

promising ‘easy cash’ or encouraged by an

acquaintance to transfer funds for them in

exchange for a payment.

In 2017, Cifas members identified almost

11 percent more bank accounts that bear

the hallmarks of money mule activity

than they did in 2016 – over 32,000 cases.

Criminals are continuing to target younger

people – there was a 27 percent growth in

the number of people aged 14-24 that have

been identified as carrying out this type of

fraud. The findings also reveal that more

than a third of victims of bank account

takeovers were over 60, so age is a key

consideration for facility hijackers when

selecting who they target.

Cifas Deputy Chief Executive, Mike

Haley says the absolute volume of fraud is

still frighteningly high: “Much more still

needs to be done to reduce its prevalence,

including greater collaboration and sharing

of fraud risk data between industry,

government, and law enforcement. Working

together, organisations who are members

of Cifas prevented over £1 billion worth of

fraud last year and Cifas will continue to

lead the way in the fight against fraud and

financial crime.”

In response to increasing numbers

of young people affected by fraud, last

month Cifas and the PSHE Association

launched four anti-fraud education lesson

plans (targeted at 11-16 year-olds) to raise

awareness of this issue in schools.

Elsewhere, a new team of fraudfighters

has already frozen £1 million

from fraudsters trying to trick people into

receiving and transferring cash, according

to the Lloyds Banking Group.

The ‘mule-hunting team’ was formed to

stop the movement of money from scams,

shutting down fraudsters’ attempts to

shift money using cutting-edge defences

developed by specialists from across the

bank. For all of the frozen funds, Lloyds

Banking Group is contacting the sending

banks in order to help them get the money

back to the victims. cifas.org.uk

Much still needs to be done

to reduce its prevalence,

including greater

collaboration and sharing

of fraud risk data between

industry, government, and

law enforcement.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 8


NEWS

IN BRIEF

Government urged to re-think

support for small businesses

THE Government is being urged to re-think

its approach to supporting SMEs after a

new survey revealed the vast majority of

entrepreneurs do not think enough is being

done to back small businesses.

Just one in five (21 percent) business

owners who responded to the survey by

Aldermore think there is enough support

from the Government, with four in ten

(43 percent) calling for better enterprise

education and training.

When entrepreneurs do try to make

use of government support services, the

results appear to be equally disappointing;

less than a quarter (24 percent) found it

easy to find information about government

schemes and only just over a fifth (22

percent) found it easy to find out who to

contact for help; less than one-fifth (19

percent) found it easy to access schemes

that were relevant to their business.

The research also highlights concerns

around existing initiatives that are in

place to help small businesses and

entrepreneurs. Four-in-ten (40 percent)

small businesses said they were aware of

government funded start-up loans, but only

six percent said they had used them. Some

36 percent said they knew about grants for

taking on apprentices, but only four percent

said they had used them. And just over

a quarter (27 percent) of those surveyed

said they were aware of capital allowances

for installing energy saving equipment,

but only five percent had made use of the

scheme.

When asked what kind of support

they would like the vast majority of

entrepreneurs responded with suggestions

that revolve around finance. More than half

(53 percent) said a cash bonus to help start

a business would be useful, four in ten (42

percent) said better tax incentives would

help and 39 percent said they would like

improved rates on business loans.

There was also support for the

creation of an Entrepreneur ISA, targeted

specifically at those looking to start their

own business and the idea of a Small

Business Savings Allowance that benefits

the self-employed.

The research also reveals why such

support is much needed: over half (54

percent) of businesses surveyed hold

less than £1,000 in cashflow while 1-in-7

(15 percent) are experiencing cashflow

problems. This suggests over 750,000

self-employed business owners across

the UK are experiencing financial

difficulty. aldermore.co.uk

Vulnerability and SMEs

top of LSB agenda

THE Lending Standards Board (LSB) has

strengthened its Board and executive team

with the appointments of Dave Pickering,

now permanently appointed as CEO, and

Martin Coppack as Deputy CEO. The LSB

says these appointments signal that it

intends to help restore trust in the sector,

with a clear focus on vulnerable consumers

and small businesses.

Martin was Head of Partnerships at the

Financial Conduct Authority (FCA) where

he created its consumer vulnerability and

financial inclusion programmes, as well as

its model for engaging with consumer and

civil society organisations.

The LSB has also appointed two new

independent non-executive directors to

the Board. Liz Barclay, Broadcaster and

Consumer Champion and Elaine Kempson,

Emeritus Professor at Bristol University,

bring experience in consumer and small

business affairs and are looking forward

to helping develop the LSB’s consumer

agenda. lendingstandardsboard.org.uk

CoCredo launches

new DUAL service

CoCredo has launched a new DUAL

Reporting Service, helping customers

to make a more informed decision by

comparing dual data sources, opinions and

insight in a single report.

Managing Director, Dan Hancocks says

the new service has been more than a year

in the making: “From our research we have

found that a growing number of people

use multiple reports when credit checking

companies to gain a wider understanding

of a business and to give them more peace

of mind,” he explains.

“However, it can become very costly and

time-consuming logging into different

systems and comparing credit reports that

are in different formats. Our DUAL Report

aims to take away this stress and expense

and will save you time by only needing to

look at one report. You will also have the

benefit of having our Customer Services

Team on hand to discuss queries on both

sets of data in one phone call.”

cocredo.co.uk See our interview on page 26.

New UK Finance

appointment

UK Finance has appointed Charlotte

Duerden to its Board. Charlotte has been

with American Express for 17 years and

has extensive experience across product,

marketing and acquisition.

During her time with the company she

has held various senior leadership roles

in the UK, Australia and New Zealand,

including Head of Product, Pricing and

Portfolio Management for Europe, with

responsibility for consumer and business

to business product across the region.

Her expertise in the cards and monoline

industry will further contribute to the UK

Finance Board’s knowledge in the consumer

and retail space.

The Board, which is led by UK Finance

Chair Bob Wigley, has been developed

to ensure senior and fair representation

across the industry. It focuses on issues of

importance to retail, SME and wholesale

customers including ethics, financial

inclusion, financial fraud, crime, access

to markets and diversity. The consumer

voice is also represented on the board via

the inclusion of an independent consumer

champion. ukfinance.org.uk

The Recognised Standard / www.cicm.com / June 2018 / PAGE 9


NEWS

IN BRIEF

David Kerr steps down

AFTER ten years at the helm of the

Insolvency Practitioner’s Association

(IPA’s) secretariat team, David Kerr FIPA

MCICM is stepping down as CEO to explore

new challenges and opportunities in the

profession and beyond.

During David’s tenure, the IPA has grown

considerably at a time when the insolvency

market generally has been shrinking. The

Association now regulates more than 550

licensed appointment-takers, including

those of the Association of Chartered

Certified Accountants (ACCA) under the

terms of a collaboration agreement entered

into in 2016, and has seen its regulated IP

population increase by 50 percent over the

period.

David, a regular contributor to Credit

Management, has overseen the development

of the IPA into one of the two main

insolvency regulators in England and Wales

and leaves the organisation in a strong

position as the professional body recognised

as the specialist in this sector.

“The IPA is now firmly established as

a professional body with a reputation as

a regulator that is second to none, but

importantly also as an organisation that

understands the insolvency profession and

those who choose to make their careers in

this specialist field,” David says. “It has a

great team at its core, many of whom are

insolvency people through and through,

and it has been my privilege to serve the

Association and its members for the last

ten years and help strengthen its standing

in the insolvency community and among

stakeholders.” insolvency-practitioners.org.uk

Knowledge Hub

The CICM Knowledge Hub is now officially

open, giving members access to more than

1,000 resources covering the entire credit

management lifecycle, anytime, anywhere.

Key articles, research papers from industry

experts, webinars, and best-practice

guidance can be found in an easy to search

format. Stay up-to-date with new and topical

resources added each month. Members can

also access tailored e-learning courses on a

wide range of subjects, and certificates make

learning visible as you track your progress.

cicm.com/cicm-knowledge-hub

Oh Lord! King’s

dismay at

poor research

PHILIP King, Chief Executive of the

CICM, has expressed dismay at the

quality of debate taking place in the

House of Lords and the Commons

surrounding the issue of late payment.

In a blog posting in May, Philip referred

to a specific debate in the House of Lords

to ask Her Majesty’s Government of their

assessment of the effectiveness of the

Prompt Payment Code. “My gripe here,” he

says, “is not the criticism voiced but the

quality of research and debate.”

The debate didn’t get off to a good start:

“In her opening statement, Baroness Burt

referred to the Payment Practices Reporting

Regulations under which, from this April,

large businesses must provide details every

six months of their standard payment

terms, how they resolve payment disputes

and the percentage of payments they make

within 30 and 60 days. “The Regulations

actually came into effect in April 2017,

not April 2018, and companies have been

reporting terms since October 2017, and

well over 1,000 have so far done so.

“Should the Baroness’s researcher not

have known this, or at least been able to

find out since the data is available on a

public portal?” Philip writes.

‘A number of Lords contributed to the

debate and much was said. Did any of

the Lords or their researchers speak to

the CICM, which manages the Code for

government, and ask for facts or data? No.

Did any of them speak to the CICM to verify

their assertions in the House? No. Would

the CICM have been willing to answer their

questions or queries? Yes, of course. Would

the debate have been improved if it had

been better informed? Yes.

“Sometimes,” he concluded, “I think we

deserve better.”

“Should the Baroness’s

researcher not have

known this, or at

least been able to find

out since the data is

available on a public

portal?”

Call to cap the cost of doorstep loans

THE MP for Horsham, Jeremy Quin, has

called for the Financial Conduct Authority

(FCA) to extend the payday loan cap to

doorstep lending.

In response, the Prime Minister,

Theresa May, said that the Government ‘is

committed to ensuring that consumers are

protected from unfair lending practices’

and has ‘given the FCA new powers to cap

the cost of credit and they'll do so if they

believe it's necessary to protect consumers’.

Citizens Advice Chief Executive, Gillian

Guy, believes there's a need for a cap on the

cost of rent-to-own and doorstep loans: “As

the Prime Minister says, the FCA has the

powers to cap the cost of these forms of

credit and better protect those consumers

who are falling victim to their high costs.

"We know the easy refinancing of

doorstep loans can lead to problem debt.

Our figures show that one in two of the

people we helped with rent-to-own debts

borrowed again in order to meet their

repayments."People should never have

to pay back more than twice what they

borrow, which is why we're calling for the

FCA to use their high-cost credit review to

put in place a cap in these markets.”

Ms Guy says that the Government's

payday loan cap more than halved the

number of people with unmanageable

payday loan debts: “By extending this cap

to doorstep lending and rent-to-own, our

research shows the FCA could protect

consumers from paying up to £165 million

a year." fca.org.uk citizensadvice.org.uk

The Recognised Standard / www.cicm.com / June 2018 / PAGE 10


FCA alerts public to rising

number of loan fee scams

The Financial Conduct Authority (FCA)

is urging the public to be alert to the

growing threat of loan fee scams targeting

borrowers. Last year more than £3.5 million

was lost to loan fee fraud and reports to the

FCA consumer helpline almost doubled.

Victims of loan fee fraud are often

targeted while searching for loans online

and are then contacted by fraudsters

offering a loan. The scammer tells the

victim they have to pay an upfront fee

for the loan which they ultimately never

receive. Once the first payment is made

victims are often persuaded to make

multiple payments; last year the average

loss was £740.

In 2017 there were more than 4,700

reports of loan fee scams made to Action

Fraud. It has now overtaken investment

fraud as the most common scam reported

to the FCA. Scammers target the most

financially vulnerable in society, people on

lower incomes and with low credit ratings,

ANGEL OF

THE NORTH

A new partnership has been formed to provide

commercial finance to entrepreneurs who want to

launch or grow businesses across the Yorkshire region.

The Business Catalyst Club has agreed a deal with ABL

Business to create Business Catalyst Finance. The

partnership will complement the equity and venture

capital activities of the Business Catalyst Club by

providing access to a broad range of funding options

such as commercial property finance, business loans

and venture capital along with alternative finance

opportunities like asset-based lending and

peer-to-peer lending. businesscatalystclub.co.uk

who have limited access to mainstream

credit.

New FCA research shows that 34

percent of those surveyed admitted they

weren’t confident they knew how to

check if a loan provider was legitimate.

Additionally, 36 percent of those who

took out a loan product in the last three

years didn’t do any checks to ensure the

legitimacy of their loan provider.

Research shows that over a third of

people (36 percent) usually just accept what

financial firms tell them. Fraudsters take

advantage of this attitude and have a range

of genuine sounding reasons for asking for

a fee – including claiming it’s a deposit,

admin fee or insurance for those with low

credit ratings. Other warning signs include:

being asked to pay in an unusual way e.g.

by iTunes vouchers or a money transfer

service; being put under pressure to pay the

fee quickly; and being asked to pay multiple

fees. fca.org.uk

Intrum takes out time for a chat

INTRUM UK, the has become one of the

first debt collection agencies to deploy a

collections ‘chatbot’ – a consumer enquiry

service powered by artificial intelligence.

The chatbot enables customers to

receive answers to their questions 24 hours

a day, seven days a week. The technology is

being piloted in Intrum’s UK and Norwegian

businesses before it is deployed globally.

The intelligent system was created

by Norwegian Fintech firm Boost AI. The

developers claim it can answer more than

730 different questions posed by customers

as well as signposting debt advice, mental

health support, self-service payment

options and human customer support.

In the first three months of use in

Norway, the chatbot conducted 15,900 live

chats and the company claimed it was

able to answer 90 percent of the 47,500

questions received. All chatbot activities

are monitored through Intrum’s dashboard,

which will be used to adjust and further

develop the technology to meet customer

needs. In future, the chatbot will be able

to answer customer-specific questions

on accounts, such as current balance and

next payment date as well as integrating

seamlessly with human chat.

The technology offers customers the

ability to manage their accounts and seek

help at any time. As well as extending

service, Inturm says the development

means customer support representatives

can focus on complex cases such as

those involving customers in vulnerable

circumstances.

Hannah Cook, Intrum Group

Digitalisation Program Director, says

the ambition is to be the leading player

in the industry: “We want to be setting

the standard for how new technology

can be used to better serve our clients

and customers. The introduction of this

debt collection chatbot in the UK takes

customer service to the next level and is an

important step on this journey”.

intrum.com

>NEWS

IN BRIEF

2019 AWARDS

The date for the CICM British Credit

Awards has been set for 7 February

2019 and will once again be held

at the impressive Royal Lancaster,

London. For details of the awards visit:

cicmbritishcreditawards.com.

Northern steel

THE Northern Powerhouse Investment

Fund (NPIF) has invested more than £50

million across the Northern Powerhouse

region, supporting over 260 small and

medium growing companies. The significant

achievement was announced by Ken Cooper,

Managing Director, Venture Solutions at

the British Business Bank as he spoke to

investee businesses, key stakeholders,

partners and fund managers at NPIF’s oneyear

anniversary event in Leeds.

The £400 million Fund, which is

supported by the European Regional

Development Fund, HM Government, and the

European Investment Bank, was launched

by the British Business Bank as a key part

of the government’s ‘Northern Powerhouse’

vision, which aims to create economic

prosperity in the North of England. npif.co.uk

An audience with...

FOLLOWING the announcement that the

Civil Court Users Association (CCUA) has

secured Susan Acland-Hood CEO of Her

Majesty’s Courts & Tribunal Service as its

Keynote Speaker for this year’s Annual

Conference in Birmingham on 16 October,

Chair Amir Ali, met and briefed Prime

Minister Theresa May about the work of the

CCUA. “She seemed genuinely interested in

what the CCUA stood for and our collective

concerns about the Court Service in general,”

Amir says. “And indeed the vital work that

we do on behalf of our members.”

ccua.org.uk

CICM

IN BRIEF

This month’s briefing includes details of

the Education Conference on 26 June, dates

for Level 3 and Level 5 Classes, the CICM

Virtual Summer School, how to become a

CICM Mentor, and the opening of the booking

window for June 2018 online exams.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 11


INSOLVENCY

Regulation – the natural

tensions

Will current reviews bring about change?

AUTHOR – David Kerr MCICM

David Kerr

REGULATORS fight a constant

battle in which

the warring factions are

combinations of independence,

accountability,

effectiveness and

perceptions of all three. The hearts and

minds they are trying to win are usually

the regulated population, overseers and

the public to varying degrees.

The UK insolvency regime is closely

aligned with the accountancy profession,

and the current review of regulatory

arrangements in that arena has the

potential to have some impact on what

happens in the insolvency world. The

Business Secretary of State called for

a review of the Financial Reporting

Council (FRC), the accountants' overseer,

following the Carillion collapse. It is

interesting to note that a high profile

insolvency case has triggered what could

become a chain reaction and rebound on

insolvency regulation.

INDEPENDENCE DAY

Some MPs have criticised FRC's perceived

ineffectiveness in certain cases, seeming

to attribute this to a lack of independence.

This appears to hinge on the participation

in the decision-making process of

individuals who have a background with

the large accountancy firms.

There are parallels in the way

insolvency work is regulated. There is

always likely to be what some perceive to

be a conflict of interests when those in the

profession become involved in regulating

it, and yet to be effective the regulator

needs that input. What it does create is

some natural tension, which has to be

carefully managed.

Insolvency regulators have moved to

increase lay input into the process. The

Association of Chartered Accountants

(ACCA) was one of the first to make its

committees and tribunals independent,

and the IPA recently appointed a lay chair

of its Investigation Committee which

reviews complaints against Insolvency

Practitioners. But are these real gamechangers

or cosmetic adjustments to

create an appearance of independent

gloss on processes dominated by the

people who make up an element of the

regulated population?

The trick is to find a balance that

can deliver effective regulation through

independent decision-making – free of

any direct conflicts and inappropriate

influence, while retaining necessary

expertise without which it would be

difficult to challenge poor practice. The

best lay minds will acknowledge that they

need professional help. The Insolvency

Service oversees the processes of the

recognised professional bodies in the

UK and has passed their systems fit for

purpose on more than one occasion, but

the review functions of the oversight

regulator are ongoing – it is a rolling

review, but with an important milestone

coming up. In 2015 the Service took a

back-stop enabling power (which expires

in 2022) to set up a single regulator for the

insolvency profession if it concludes that

the present regime is not effective.

The changes made by the insolvency

regulators are real enough, and the

integrity of their processes are not

seriously in doubt, but a recurring question

is whether they deliver sufficiently robust

outcomes. Perceptions around this can

be influenced by delay, and/or merely by

decisions that may cause raised eyebrows

among informed bystanders. Those

observers would perhaps be the first

to acknowledge that they haven't seen

all the evidence; however, perceptions

count and putting into the public domain

sufficient information to explain what has

happened, and why, is a challenge. It is

particularly difficult for regulators when

the decision is to make no adverse finding

and/or not to act. In those circumstances

the balance of responsibilities usually

lies with the regulator's obligations

to the regulated person in terms of

confidentiality.

ALL CHANGE?

When interested parties – whether

regulated entities, overseers or the public

– make sufficient noise about their

perceptions of the (in)/effectiveness of

regulators, ministers are likely to want

to see something change. There is a

temptation for overseers to intervene,

and for things to be shaken up. The

question that should be asked is whether

alternative structures would produce

'better' results. Would a single insolvency

regulator in England and Wales be more

effective than the two main professional

bodies in keeping IPs in check? Or would

the creation of a shiny new organisation

merely satiate the critics for a while until

the next decision raises those eyebrows?

The outcome of the FRC review

may have some bearing on where the

Insolvency Service goes with its own

assessment of the case for a single regulator

or some more modest changes to increase

independence and transparency. The

natural tensions referred to above must

be policed by the regulators themselves

and by the oversight bodies. The privilege

of self-regulation, or at least the delegated

statutory model enjoyed in insolvency,

is highly valued by practitioners, and

generally works in creditors’ interests

as well, even if they are only indirect

beneficiaries.

But even if insolvency has its house in

order, is there a risk that the findings of

the FRC review will bring consequences

for insolvency regulation? And would

change be beneficial to creditors? The 2022

deadline is nearer than at first appears, as

any case for change has to be assessed in

good time to activate the provision before

its expiry. The FRC review, expected to

be concluded by the end of this year,

will be timely, and any curtailment of

professional input in the regulation

process could have implications in other

areas.

David Kerr MCICM is an insolvency

practitioner with extensive regulatory

experience.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 12


INTERVIEW

CLASS ACT

Sean Feast speaks to Klaus-Anders

Nysteen, the new CEO of Hoist Finance,

about the pan-European market for debt

purchase, new asset classes and the

Royal Navy’s tradition for sticky buns

and tea.

KLAUS-Anders Nysteen is a

man on a mission. As the new

Chief Executive Officer (CEO)

of Hoist Finance, he already

knows what success looks

like: “I see more mergers and

acquisitions in the coming years and further

consolidation, resulting in a smaller number

of much larger players. Our mission is to be

one of those players.”

It seems appropriate, given his comments,

that we meet in Milton Keynes at the former

offices of Compello, one of Hoist Finance’s

acquisitions. “There are perhaps 15 ‘names’

who can deliver a truly pan-European service,”

he continues, “and I expect that in five years’

time there will only be five or six of us in the

market. Alongside the major transactions I

also expect to see a continuation of ‘bolt on’

deals as businesses look to build scale.”

One thing that is immediately apparent

about Klaus-Anders Nysteen is that he is

entirely transparent. He says what he thinks,

but what he thinks has been meticulously

thought out. It is not about shooting from the

hip; everything has a logic and a purpose.

EARLY CAREER

A Norwegian by birth, his father was an

engineer and fancied that his son might one

day do something in the engineering field.

Klaus-Anders, however, had different ideas,

having always been attracted to the concept

of business and finance. His early career,

however, took off in an entirely different

direction when he turned the obligation of

National Service to his advantage:

“At the time you had to wait until your time

came around but I decided to jump the queue

and volunteer for the Royal Norwegian Naval

Officer training programme. It was at the time

of the Cold War and felt very ‘real’,” he explains,

“but it was a tremendous time in my life when

I learned a great deal about companionship

and leadership, and the importance of teams.

You were given considerable responsibility at a

comparatively young age, and although I never

intended for it to be a long-term appointment, I

ended up staying in the Navy for 11 years!”

Klaus-Anders’ time at sea was spent

mainly in fast patrol boats and frigates and

included a secondment to the Royal Navy on

the assault ship, HMS Intrepid. “It was steam

powered,” he recalls, “and below decks it was

all rather old and rusty, like the submarine in

Das Boot!”

He smiles now to remember the culture

shock of stopping every day for sticky buns

and tea, and the obligatory visit to the bar

before lunch. He also laughs when he thinks of

the huge terrines of soup that preceded every

dinner, and the enormous silver spoons with

which they ate.

But although the Navy was an important

part of his formative years, he is keen not to

be thought of as a naval man. Certainly there

is nothing ‘military’ about his character; he is

much warmer and more approachable than

some typical ex-servicemen in the UK, and while

he has the title of CEO he is not hierarchical in

either his culture or his manner. That’s not to

say that the navy did not teach him lessons that

he now uses in later life. It also enabled him

to study for an MBA at the Norwegian School

of Management that ultimately took him down

the path to where he is today.

SEAFOOD STARTER

His first shot at real business came when he

applied for and was appointed to the role as

Chief Financial Officer (CFO) at Hydro Seafood

GSP and was appointed Country Manager for

Scotland: “I was based in Stirling,” he recalls,

“and had to travel all around Scotland and the

Highlands to Fort William, the Outer Hebrides,

the Shetland Isles and all over the country. It

was such a beautiful place to work, and even

though I still own a bottle of 21-year old Oban

(it’s probably now 42, he jokes) I never really got

the taste for Whisky!”

The Recognised Standard / www.cicm.com / June 2018 / PAGE 13

continues on page 14 >


Being part of the Norsk Hydro Group meant belonging to a

business likened to being the GE of Norway with a vision of

‘harvesting the sea’: “It was fascinating to be part of a global

industry,” he says, “and the management had a culture that

nothing was too complicated.”

Klaus-Anders played an important part in restructuring

and turning the Scottish subsidiary around after a successful

exit from Norsk Hydro, implementing new processes and

reporting systems and integrating new businesses as they were

acquired. Tempted away to Norway Post, he spent six years as

CFO (and later acting CEO) helping to manage a business at a

critical point of industrial and social change: “Use of letters and

the ‘traditional’ post was on the decline and we went from a

workforce of 25,000 to 13,000 in only two and half years,” he

explains.

“It was at the same time that the Royal Mail went through

its disastrous rebranding to Consignia but we were more swift

and decisive in our actions, replacing old revenues with new

revenues, and launching new logistics and express delivery

services that reflected the consumers’ increasing use of online

shopping.”

CORE COMPETENCIES

His strategy to redefine its business idea and enter new markets,

coupled with a renewed focus on core competencies, had the

desired effect. Quality improved, as did levels of customer

satisfaction. The numbers also improved: in 2005, Norway

Post delivered the best annual figures ever in the history of the

company.

Tempted away again, Klaus-Anders joined Storebrand

Bank for his first foray into the world of banking and credit:

“I thought it was easy,” he smiles, “and for a time it was. Then

came the financial crash and I had to learn about counter-party

risk, short funding and non-performing loans the hard way!”

Happily, Storebrand Bank survived when others didn’t, again

thanks to decisive action: “We brought our costs down partly by

shifting our employees to lower cost environments and we got

through it. It was a case of ‘all hands’ on deck’!”

Happy in his role as the bank’s CEO he had no intention

of reverting to his previous duties as CFO, until Statoil came

knocking: “When Statoil calls you listen,” he laughs. “It is an

iconic name in Norway and it had an interesting proposition

to IPO its fuel and retail business on the Oslo Stock Exchange.

My role was to manage the IPO process and I was given until

October (I had started in June) to achieve it. I was told that delay

was not an option, and by 22 October the listing was complete.”

Klaus-Anders says this was a particularly rewarding time:

“We had to work around the clock to make it happen,” he recalls,

“but it was great fun. We were pioneers in taking a business that

was non-core to the oil and gas industry and making it ‘core’ –

in effect creating an industry to run on its own merit.”

Never one to shy away from a challenge, Klaus-Anders

joined Entra, a government-owned real-estate business, in 2013

as CEO, once again leading the business to an IPO before taking

the post as CEO of Lindorff Group, part of Nordic Capital which

later merged with Intrum Justitia: “The timing was awkward,”

he remembers, “because I had only just IPO’d Entra and there

was still work to do. We had a new team on board, however, and

the investors are happy since the value of their investment has

doubled in four years.”

RED THREAD

The ‘red thread’, as Klaus-Anders calls it, that runs through his

senior management career is that he is drawn to particular

challenges rather than industries: it might be a turnaround

situation; a strategy shift; consolidation; growth; survival; or

taking a company public. In joining Lindorff he was faced with

very complex issues around culture and leadership: “As a valuesbased

leader I was intrigued by the challenge,” he admits, “and

“Without credit, growth stops and

transactions don’t take place. If

credit defaults and creditors are

not paid, then trust in the system

breaks down, so while our clients

are important, the relationship

with our customers is perhaps

even more so.”

The Recognised Standard / www.cicm.com / June 2018 / PAGE 14


INTERVIEW

AUTHOR – SEAN FEAST

attracted by the international challenge

and bringing the business together.”

It was a similar intrigue that ultimately

led to his joining Hoist Finance: “I had

met Jorgen (the previous CEO) on several

occasions and it was clear that we shared

similar thoughts on the importance of

culture, values, ethics, compliance and

regulation. He was very visionary and entrepreneurial.

My challenge now is continuing

to grow the business and ensure

we have the processes and structure to accommodate

future growth without losing

momentum. Growth is our number one

ambition, so we need to focus on operational

excellence and ensure our strategies

are aligned throughout the business.”

Klaus-Anders has been quick to put

his personal stamp on the business,

explaining his vision to the team across

Europe in a series of ‘town hall’ meetings

and canteen lunches. His views on credit

are refreshing: “What we do is important,”

he explains. “Without credit, growth stops

and transactions don’t take place. If credit

defaults and creditors are not paid, then

trust in the system breaks down, so while

our clients are important, the relationship

with our customers is perhaps even more

so.”

PAN-EUROPEAN COMPARISONS

Being pan-European, Klaus-Anders is able

to compare and contrast the experiences

of different consumer types and their

attitudes towards credit: “Whether you

are talking to a consumer in Duisburg

or Milton Keynes, most people want

to repay their debts and honour their

commitments. Our role is to help them

and motivate them to achieve that and

return to financial health.”

In terms of how he intends to deliver

on his vision, the new CEO tells me of a

story recently published in the Guardian

newspaper about the success of the

Norwegian Alpine Skiing team and its

‘no jerks’ policy: “One reason they are

so successful is that although it is an

individual sport, they help each other, and

try and learn from each other, working

as a team. They won’t tolerate jerks, and

that’s why they win!”

Klaus-Anders is keen to see the same

concept of ‘sharing’ knowledge and

experience throughout the group as a

key ingredient to success. A good idea in

Germany, he believes, will be a good idea

in the UK or Spain. “The challenge is in

knowing what we know,” he explains, “and

then documenting it so that everyone can

benefit.”

His views on the pan-European market

for debt sale and purchase are especially

interesting. While the UK is a mature

market, he sees this as an advantage: “The

UK is mature, professional, sophisticated

and highly regulated, and I expect the

other markets to follow which will be

a good thing,” he explains. “I welcome

regulation as a friend; it raises the bar and

means that the thresholds for entering the

market are higher.

“I like mature markets,” he continues.

“They are rational and competitive, and

the risk/reward is positive. We are also

looking at new and less mature markets

like Italy (Intrum recently completed a

large deal in Italy), Spain and Greece.

In Spain, the unemployment numbers

are coming down, but at 16 percent,

Spain is still a laggard. At the peak of

the crisis, 40 percent of those under 30

were unemployed. Although things are

improving, the crisis is not resolved. In

Greece, too, they are enjoying a recovery

and we are early to the market through a

partnership and now our own platform,

so that too is exciting.”

In terms of portfolio types, Klaus-

Anders quashes previous discussions that

may have been aired about diversifying

into different markets. “Our core strength

is the banks and being a bank ourselves

we have a better understanding of how

the banks’ agendas can move, and what

we need to do to add value. A specialist

will beat a generalist every time; focus is

good. Focusing on a few markets and one

customer group is our mission – to have

wider products and deeper penetration.”

ASSET CLASSES

While Klaus-Anders rules out acquiring

non-banking portfolios, he does not rule

out extending the asset-classes of interest.

Whereas traditionally Hoist Finance

has focused on non-performing loans,

it recently acquired its first portfolio of

commercial mortgage loans and is looking

at what he describes as ‘adjacent’ asset

classes such as SMEs, secured loans and

other paying/performing assets. Servicing

also remains key: “We like our business

model,” he laughs, “and have access to

very efficient funding. It is good to be

regulated to the same level as the banks

and investors are happy with our healthy

balance sheet.”

The new CEO is perhaps conscious that

previous roles have not lasted as long as

he originally envisaged. It is with some

hesitation, therefore, that I ask him where

he sees the business in three years’ time

and what success will look like: “Success

will be when we are one of the big five and

have a reputation as a reliable, innovative

partner with a culture, values and beliefs

that stand out. Success will also come by

being a leader in the digital space, not just

in how we interact with our customers,

but also in how we use data.

“All of us talk about the volume of data

we hold, but actually what is important is

using that data to gain knowledge, from

knowledge we gain insight, and from

insight we deliver action.”

Given his naval background, it is

perhaps unsurprising that he owns a boat

and a second home on the coast which he

shares with his spouse Maria – when they

are together: “She is the CEO of DEA AG,

an oil and gas major based in Hamburg,

so we FaceTime during the week and see

each other at weekends,” he says.

As well as four grown-up children

between them, they also have joint

custody of a 14-year old Norwegian Forest

Cat called Nemi. “Everybody asks about

the cat,” he laughs. “It is very much part

of the family.”

The Recognised Standard / www.cicm.com / June 2018 / PAGE 15


OPINION

WISE COUNCIL

Credit Management spoke to Bexley Council to find

out more about its early payment drive that’s supporting

its supply chain.

AUTHOR – Alex Simmons

THE will to tackle late payment

culture in the UK has intensified

in recent months, with the topic

leading the headlines in the

Chancellor’s Spring Statement and

underlining how significant this

problem – and the determination to address it – has

become. The consultation, announced by Philip

Hammond and due for publication any day, will

aim to identify the most effective way of changing

long-ingrained behaviours.

For too long, it has become the norm to see

large buying organisations holding on to their

cash (despite earning minimal returns), while their

suppliers that need cash find it very hard to secure

finance and often, very expensive. As a result,

many SMEs are forced to increase their prices to

offset the delayed payment, but sometimes the

consequences can be more severe. It is estimated

that late payment is responsible for the failure of as

many as 50,000 businesses each year, at a cost to the

economy of £2.5 billion.

The public sector has a better record of paying

suppliers in a timely manner than private sector

organisations. In 2017, the Time for Change report,

compiled using information obtained under the

Freedom of Information Act, revealed how the

majority of invoices (90 percent) sent to local

authorities are paid on time, but also detailed how

the administrative weight of the payment process,

which is further exacerbated by aging accounting

infrastructure and a lack of digitisation, makes

payment performance a challenging area for

councils to address.

Undeterred by the scale of the challenge, the

London Borough of Bexley has really grasped

the nettle when it comes to tackling its payment

practices. With an annual spend of more than

£160 million, the Council introduced its Supplier

Incentive Programme (SIP) in January 2016 to

support suppliers, many of whom are small

local businesses, by making wholesale changes

to its payment function. The programme offers

the Council’s suppliers early settlement of their

invoices in exchange for a discount directly related

to how quickly the payment is made.

Having partnered with Oxygen Finance to deliver

the scheme, the council is now paying suppliers

who have joined the programme within an average

of seven days, with thousands of invoices having

been processed early to date, injecting millions of

pounds of liquidity into the economy.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 16


OPINION

Marc Colman from RC Services in Bexley, which

provides maintenance and emergency repair services

for the council’s outdoor recreation facilities, is one

such supplier who is enjoying the benefits of the new

scheme, as he explains: “We’re a family-run business

and have been working with Bexley, which is our

biggest client, for more than twenty years. Labour costs

are our biggest outlay and being paid faster means we

have the peace of mind that we can pay our contractors

on time. Since the SIP was introduced, we’ve seen

a difference in how quickly we are paid. If I send an

invoice on a Monday, it is usually paid by Thursday and

that’s enormously helpful when you’re running a small

business with high labour costs.”

Andrew Hubbard, Managing Director of Bexleybased

property management company, Under My

Roof, one of the largest suppliers of temporary

accommodation to the council, also welcomes the

benefits: “Cashflow is the lifeblood of a business and

having access to swift payment, especially from major

clients, is hugely reassuring – we can be confident that

we’ll get paid as quickly as we can submit an invoice.

Using the SIP has enabled us to grow our business in,

what can only be considered, a very difficult time in

the housing market.”

“In our experience, once an

organisation recognises the

benefits of a more strategic

approach to its payment

practices it doesn’t need the

threat of a penalty. It just makes

good business sense all round.”

The Recognised Standard / www.cicm.com / June 2018 / PAGE 17 continues on page 18 >


OPINION

“Cashflow is the

lifeblood of a business

and having access

to swift payment,

especially from major

clients, is hugely

reassuring – we can be

confident that we’ll get

paid as quickly as we can

submit an invoice.

Mick Sullivan

The Council attributes the success

of the programme to the effective

collaboration of several teams, as well as

the robust technology and on-the-ground

support provided by Oxygen Finance to

transform processes. Mick Sullivan, Head

of Procurement at the London Borough

of Bexley, says: “There was genuine

commitment among staff from a number

of departments to work together to improve

our processes – both the Council and our

suppliers are now reaping the rewards.

Today, we believe our internal processes

are second to none, with our ‘no PO, no

pay policy’ being particularly significant in

improving efficiencies.”

Leigh Whitehouse

The revenue generated from the

Supplier Incentive Programme, is being

channelled into frontline services for the

benefit of local residents and the council

is on track to raise £740,000 during the next

five years. Leigh Whitehouse, Director of

Finance for the Council, described the

programme as a “win-win”, highlighting

the fact that “businesses get paid quicker

and the council generates an income

stream that helps us protect the delivery of

frontline services to residents.” The Council

chose to work with Oxygen Finance

because the model means there are no

upfront costs – all of the implementation

investment is made by it and its payment

model is based on performance. If the

programme doesn’t work, it doesn’t get

paid. “That kind of guarantee is essential

when funding is so stretched,” Leigh adds.

Ben Jackson

The challenge facing the Government is

to create an environment in which prompt

payment, and even better, early payment

is recognised as normal business practice

across the board. Ben Jackson, CEO at

Oxygen Finance, is hopeful this is not too

distant a possibility: “In our experience,

once an organisation recognises the

benefits of a more strategic approach to

its payment practices it doesn’t need the

threat of a penalty. It just makes good

business sense all round.”

If you are supplier to the London

Borough of Bexley and want to find out

more, please visit response.oxygenfinance.com/LBBSIP

to register your

interest.


The Recognised Standard / www.cicm.com / June 2018 / PAGE 19


EXCLUSIVE REPORT

State of the Nation

An in-depth analysis of the health of the UK economy.

AUTHOR – Nalanda Matia

AMONG fears that Brexit

could damage the United

Kingdom’s economic

growth, the past few

quarters did show rising

global concerns regarding

the country’s overall credit health.

Although there remains a general pattern

of imbalance within the growth structure,

the UK economy has shown pockets of

growth, despite the disquiet.

For example, according to the Office

for National Statistics, overall UK GDP

grew by 0.4 percent in the third quarter

of 2017, followed by 0.5 percent in the

final quarter of the year, slightly topping

consensus estimates. A look into the

vertical specific view shows a wide range

of growth by vertical with Manufacturing

and Professional, Scientific and Technical

activities staying on one end of the spectrum

registering quarterly growth rates of one

percent and above in the final quarter of

2017. The growth in Manufacturing could

be driven by accelerated global growth

that improved UK exports. Agriculture

and Other Natural Resources (including

Mining) and Construction remain on the

other side of the spectrum with these

verticals registering negative growth.

Clearly there remain some headwinds for

the British economy to contend with in

order to correct the imbalance among the

major verticals.

Moving from economic growth

towards business deterioration metrics

provides a similar account. A look at

business liquidations over time shows

a turbulent environment over several

quarters following the 2008-09 recession,

with stabilisation and improvement

commencing mid-2013. The last few

quarters highlight a deterioration in

business liquidations, signalling some

stability in the business environment

compared to the last year. Looking at

the same metric by vertical displays

some pockets of weakness on this

front – the Utilities and Transportation

sector shows the highest increase in

business liquidations. On the other

hand, the Government, Agriculture and

Manufacturing sectors demonstrate the

highest levels of deterioration in business

liquidations. It seems that although the

Agricultural sector did not register an

impressive growth in terms of GDP, the

underlying environment for business

stability in the sector may have improved

over the past year.

For a view into the Delinquency and

Failure Risk perspectives, we refer to

Dun & Bradstreet’s UK Failure Risk and

UK Delinquency scores. These scores

represent the probability that a business

will experience significant risk of

operational stress or severe delinquency

within the next 12 months and classifies

them into low and high-risk segments.

The chart shows the percentage of

businesses for each major sector that

fall into the high-risk categories of both

the Delinquency and the Failure Risk

scores. These businesses are identified as

facing extreme risk in the next 12 months

from both operational stress and severe


EXCLUSIVE REPORT

delinquency perspectives. The Materials

Processing/Mining, Transportation and

Utilities and Eating/Drinking Places

sectors have the highest percentage of

businesses at highest risk, and Agriculture

(excluding Mining) has the lowest of one

percent.

Considering the verticals in this

disaggregated manner shows that the

Materials Processing/Mining subsector

may be the one where performance

has been suffering. Specifically, the last

several years have been quite turbulent for

the Mining sector, with commodity prices

reaching both historic highs and lows.

Faced with digital innovations, established

rules of operation within the sector

have also shifted considerably, causing

several businesses some financial distress

recently.

This is also reflected in the payment

performance of the businesses within the

two sectors. We consider the percentage

of trade credit payments that are paid

promptly within the terms of the

transaction by industry. The UK average

for this metric is 31.9 percent, and the

industries provide a similar picture of

being distributed along a significantly

broad range. The Agriculture sector seems

to have the strongest payment health with

over 50 percent of payments being made

promptly, followed closely by Construction

with 42 percent of prompt payments.

Despite slowing growth over the final

quarter of 2017, businesses within the

Construction sector seem to be maintaining

good payment health, possibly indicating

an optimistic outlook in the near-term. The

seasonal nature of this sector on which the

winter weather prevailing within UK and

the Euro area may have some bearing on

this performance and following outlook.

Materials Processing/Mining looms

below the UK average level with an average

26 percent of prompt payments; a contrast

with Agriculture. However, Government

and Machinery Manufacturing remain the

sectors with the lowest percent of prompt

payments, with each paying only 22.1

percent and 24.8 percent (respectively) of

their suppliers promptly within the terms

of the transaction.

Although prompt payments are very

good indicators of the general health of

businesses within an industry sector,

it also remains true that each industry

vertical follows their own norms around

payment of suppliers, so a study of prompt

payments within an industry over time

will provide more insight into the health

of the industry. The chart provides this

temporal comparison of prompt payments

by industry.

A closer look at the metrics over time

shows that almost all verticals have made

some improvement in the percent of

transactions for which they make prompt

payments over the past 12 months. The only

exception being the Eating/Drinking Places

sub-segment, where prompt payment

declined by two percent. The Government

sector, which registers the lowest percent

of prompt payments across verticals, also

shows the least improvement (1.4 percent)

over the past year. The Construction sector

topped the list with a considerably large

improvement in prompt payments – a little

over 14 percent. The two Manufacturing

sub-segments – Consumer and Machinery

– follow closely, registering 10.5 percent

and 10.2 percent hike in prompt payments

over the past year.

Although the primary industry

they belong to has a strong bearing on

businesses’ organisation, conduct and

performance, the area in which they

are located and their size are often

quite significant. Locations often offer

advantages to businesses like local

regulations, local government aid

programs, proximity to other relevant

businesses, and business performance can

differ substantially on location choice. This

is evident in the distribution of prompt

The Recognised Standard / www.cicm.com / June 2018 / PAGE 21

continues on page 22 >


EXCLUSIVE REPORT

payments by businesses in the regions

within the UK. Businesses located in East

Anglia and the South-Western regions pay

their suppliers most efficiently, with nearly

40 percent of payments being prompt in

both areas, with the country’s average

lingering around 32 percent. On the other

hand, the Greater Manchester and Greater

London regions are paying only about

respectively, 25 percent and 26 percent of

accounts promptly. This range, although

on a slightly lower degree than the range

seen within industry distributions, is still

quite wide and the imbalance is seen to

persist on the regional distribution of

payment health as well.

Looking into the improvement in

the percent of payments over the past

year, East Anglia and South West remain

on the top five regions with 14 percent

and 13 percent gain in prompt payment

rate. Northern Ireland tops this list with

a 15 percent increase in promptly paid

accounts. This disparity in gains may be

driven by location specific circumstances

that all businesses are subject to.

Another interesting study is how

business performance – particularly

payment performances – differ with

business size. The size determines critical

business specifics like credit availability,

access to advanced technologies and

resilience after disruptive events like a

natural disaster. Small businesses usually

remain on the adverse side of the scale for

these particularities and often find them

a menace to their stability, while large

businesses usually come out as the most

This clearly brings to the forefront the predicament for

small businesses, which due to their credit and cash

constrained status, do not receive very favourable

terms from their suppliers. These businesses are

required to pay very promptly on most of their accounts

in order to maintain their supply side relationships and

a steady flow of their input merchandise.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 22


EXCLUSIVE REPORT

AUTHOR – Nalanda Matia

resilient ones. We categorise businesses

into various size groups based on their

number of employees, where businesses

with less than five employees belong to the

smallest size band, while businesses with

over 1,000 employees make up the largest

one.

Both the distribution of prompt

payments by business size and their

advancement over the past year present

dramatic narratives. There is a very high

correlation between the size of a business

and the number of people it employs. The

smallest businesses, pay their supplier

most promptly – registering 37.8 percent

prompt payments.

This metric deteriorates systematically

by business size, with the largest

businesses (over 1000 employees) show the

least percentage (5.8) of prompt payments.

The temporal view shows deterioration

in the rate of prompt payments among the

businesses on the larger side – with 101

employees and over. The businesses on

the smaller side of the band, businesses

with 100 employees and less, continued

to diligently improve the percentage of

accounts they paid promptly over the past

year.

This clearly brings to the forefront the

predicament for small businesses, which

due to their credit and cash constrained

status, do not receive very favourable terms

from their suppliers. These businesses are

required to pay very promptly on most of

their accounts in order to maintain their

supply side relationships and a steady

flow of their input merchandise. On the

other hand, large businesses by virtue of

their higher resiliency and in most cases,

established brand are able to acquire very

favourable terms from their suppliers.

Often, these suppliers of large businesses

are on the smaller side of the spectrum and

do not have sufficient bargaining power

over payment terms from their large-sized

customer. Reform of regulation or other

aids to small businesses by federal or local

agencies, needs to be accelerated in order

to rectify this imbalance that works against

these businesses.

The major segments within the

UK economy – by sectoral, regional or

size dimensions – show some scattered

sluggishness mixed in with pockets of

growth. While the overall commercial

environment still faces some headwinds

on the path to sustained improvement, the

fundamentals of the business community,

which manifest themselves primarily in

payment performance and credit quality,

seem to be progressing.

Nalanda Matia is Senior Director,

Econometrics Practice, Dun & Bradstreet.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 23


VIEW FROM THE SEAFRONT

A Diabolical Liberty

Giving money away at the expense of others is not

the answer to our current problems.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 24


VIEW FROM THE SEAFRONT

AUTHOR – David Andrews

I

wonder what the legendarily mean J under 25 idea – despite having been the recipient of

Paul Getty Snr would have made of the an extremely generous gift, albeit from his own family,

Resolution Foundation’s recent (May 2018) over 100 years ago.

recommendation that all young people in the If such an idea did get a green light, how would it

UK should receive a cash gift of £10,000 when be funded? Principally by a change to inheritance tax.

they reach their 25th birthday.

As inheritance is currently taxed at 40 percent above

The payment, described as a ‘citizen’s inheritance”, a threshold of £1 million for many, it is proposed that

is designed to redistribute wealth at a time when the current system would be replaced with a new 20

young people need it most to find housing, return to percent tax on all gifts or inheritances throughout one’s

education or start a business.

life up to £500,000, and then at 30 percent above that.

It is also intended to reduce resentment towards Inheritance tax in the UK clearly needs to be

the so-called silver surfer generation, baby boomers overhauled. As we have seen time and again, crafty

(born 1946-65) who have typically done better out of and judicious estate planning by the extremely wealthy

the housing market and pensions than any subsequent – such as the late Duke of Westminster, who passed

generation.

away last year but whose estate has been ring-fenced

The idea has emerged from the imperious Resolution by clever family trust planning – will always prove

Foundation’s intergenerational commission, which has divisive and unpopular in the extreme.

been labouring on the issue for two years and has just But it is also grossly unfair, with many ordinary

published its final report.

citizens obliged to pay 40 percent tax on their estates

I was casually pondering the Getty scenario apropos once beyond the personal allowance – even though

the Resolution Foundation as I researched JP’s early they have already for the most part been punitively

life. There are connections.

taxed while earning the money in the first place.

As a 22-year-old in 1914, the young, hugely With enormous divisions in the wealth of the

ambitious JP was handed a gift of $10,000 by his dad, country there are bound to be resentments from all

George, who had handily made a fortune by drilling for quarters regarding the bright idea of gifting £10,000

oil in Oklahoma in the early 1900’s.

to those weighed down with substantial student debt

At a time when the average American worker was and faced with the prospect of having to save tens of

lucky to earn $600 a year, $10,000 was a mind-boggling thousands of pounds for a deposit just to get a foot onto

amount of money for a young man to be handed on a the property ladder – assuming they will then be able

plate.

to jump through endless hoops to secure a mortgage.

As a kid in the 1960s – with pocket money of three Inheritance tax laws in the UK are both archaic and

shillings (30p) a week and a four-hour Saturday milk cynical, and there is no real place for them in 2018.

round securing a further two shillings and sixpence Giving money away at the expense of others is also not

(25p) – I recall being fascinated by the mythology the answer. But there is a genuine need for the gaping

surrounding Getty and his billions of dollars, all divisions of wealth in our country to be properly

ultimately stemming from that $10k ‘gift’.

examined.

The notion that one person could accumulate It is not just the young who may hope for a £10k

such staggering wealth was hard to get one’s head bung. The food banks I regularly see sprouting up

around. Very, very rich people with more money than around my home town of Brighton are by all accounts

they knew what to do with (Getty reckoned that if used most frequently by breadline families where the

you could count your money you were not seriously parents are aged 40 plus and cannot cope. In 2018, at

loaded) were few and far between. More commonly, a time when the country is haemorrhaging money

the crazily rich were more likely to be encountered on an NHS obesity crisis, this strikes me as an absurd

on the big screen. Fictional nut jobs, like Ernst Stavro paradox.

Blofeld – or Auric Goldfinger, compellingly played by Thankfully, however, this is not Venezuela, where

the generously proportioned Gert Frobe – who drove a astonishing 400 percent inflation levels effectively

solid gold vintage Rolls Royce and would think nothing mean that millions of ordinary families currently do

of building a lethal rocket or two inside a hollowed out not have enough to eat in the face of a horrendous

South Pacific island while examining ways to plunder economic crisis triggered by a collapse in the price of

the world’s cash reserves.

oil on which the country is so implicitly dependant.

But, as ever, life is stranger than fiction, and Getty As is the case in so many parts of the world today,

was the real ticket, a money fixated workaholic who, mismanagement of economies by incompetent or

according to legend, exhibited miserly ways that were avaricious administrations has directly led to a collapse

surreally disproportionate to his means.

in the living standards of entire populations. This is

Of the many stories alluding to the oil tycoon’s clearly not evident in the UK, one of the world’s richest

parsimony, one of my favourites is the occasion when and most successful economies. But give away £10,000

Getty allegedly invited a group of friends to accompany to all under the age of 25? That’s a big ask.

him to a dog show in London (see Wikipedia), only to As Phil Ancell, one of my tennis club mates, said

have them walk around the block for 10 minutes until the other day (in between glaring at me following my

the tickets became half-priced at 5pm, because he superb backhand return of serve) – a move such as this

didn't want to pay the full five shillings per head (about would be seen by many of a certain age as a diabolical

£12/$17 in 2018).

liberty. I daresay J Paul Getty would have a view.

I suspect I know what J Paul Getty’s view would

be on the Resolution Foundation’s £10,000 to all those David Andrews is a freelance business journalist.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 25


TOWN AND COUNTRY

COUNTRY LIFE

Sean Feast caught up with CICM Think Tank member

Dan Hancocks MCICM of CoCredo to find out more

about the importance of dual opinion reports and

working in the Buckinghamshire countryside.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 26


THERE are worse places

to go in the world for a

meeting than Missenden

Abbey, a former 12th

Century Abbey converted

into an 18th Century pile.

Nestling in the picturesque town of

Great Missenden in Buckinghamshire,

it’s now not only a wedding venue and

conference centre, but also home to a

number of entrepreneurial businesses,

among them CoCredo, a credit checking

and business information provider

owned and managed by CICM Think

Tank member Dan Hancocks.

After University and an early career

in mobile phones, Dan’s entry into the

world of credit generally, and business

information specifically, came with

Dun & Bradstreet in 1998. “I became

what they called a Risk Management

Consultant,” he explains, “at a time

when D&B was beginning to see that

business information was not just about

mitigating risk but also maximizing

opportunity. There were four of us in

the team to cover the country in a hybrid

role that was somewhere in-between

Field Sales and Telesales.”

RISK MANAGEMENT

As a Risk Management Consultant

Dan excelled, and describes his time

at D&B as being amongst the happiest

in his working career: “I had always

been interested in buying and selling

and treated my customers in the way

that I’d wanted to be treated myself.

My approach was to offer the inch and

deliver rather than promising the mile

and falling short of expectation. By

focusing on doing that little bit extra for

your clients, in ways that are achievable,

we grew ‘small’ clients into significant

accounts, and everyone benefited.”

After five years with D&B, and with

a strong desire to move into Field Sales,

he joined a division of BT but found

the work both monotonous and lonely.

“Having been used to working closely

with colleagues I was out on the road,

making seven appointments a day, and

never really having the opportunity of

building a relationship with the client.”

This ‘transactional’ nature of the

relationship prompted Dan to consider

other options, until he received a call

out of the blue from Jeremy Hall, a

well-known local entrepreneur and the

name behind Wyse Leasing Plc. He was

interested in setting up a broker credit

reference agency to add value to the

leasing offer, and Dan took on the role

of Business Development Manager: “It

was a mix of Field Sales and Telesales,”

he says, “and I admit I was attracted by

the BMW Convertible!”

The business became an Experian

reseller, but the relationship did not go

entirely to plan: “We found that we were

using a legacy system with a different

scorecard, so when our reports were

compared with Experian reports directly

they differed, and that impacted our

credibility.”

They turned instead to support from

D&B in 2007: “D&B had not historically

been interested in resellers but we came

to an agreement where we focused on

the smaller customers and D&B focused

on the larger customers. It worked very

well, and most of the customers we

acquired then are still our customers

today.”

CHANGING BUSINESS

A change in the business ownership

came in 2009 when Dan and the Finance

Director completed an MBO, and the

company re-branded as CoCredo. A

move to Great Missenden was followed

by a more recent MBO in 2015,

with Dan now owning the business

outright. Throughout the changes,

D&B remained supportive and the two

businesses worked well together until

mid 2017. Dan and his team invested

significantly in new IT and systems to

support their expanding operation and

began exploring new ways of creating

company reports with greater added

value.

“One of the simplest ideas,” Dan

explains, “was to include online news

(such as Google News and later other

Newsfeeds) so that the reports were not

just about credit risk but more about

due diligence. We also incorporated

other elements, checking ethical

trading records, Advertising Standards

Authority records, The Living Wage

register and other sources to give

customers the fullest picture possible.

This was all based on customer

feedback about what they wanted to see,

presenting personalised and bespoke

information to a level of detail and in a

format of their choosing.”

In developing their offer, CoCredo

also chose to expand its panel of

providers beyond D&B: “We asked

customers where they were trading and

where they found it difficult to come by

business information, and then chose

different providers accordingly. We did

this principally by ‘blind testing’ the

data and looking at historic failures (e.g

the recent collapse of Toys R Us) and

retrospectively looking at what each of

the providers was saying at the time and

how early this was predicted accurately.”

CoCredo now works with a panel

of around ten premium business

information providers including

Experian, Creditsafe and Graydon, all of

whom have their particular advantages,

either in the breadth of companies they

cover, or in their geographic reach.

Further customer research, and testing

their proposition at various Forums,

has since led to the launch of the most

recent innovation, a dual report:

Credit managers often want and

see more than one opinion but that

often means logging onto two different

systems with different preferences

and passwords and it can all be rather

inflexible,” he says. “Bringing two

opinions together into a single report

is the obvious conclusion; although

it may seem disruptive to some, to

others disruption is good if it’s in the

best interests of the customer.” Dan

acknowledges that the latest move may

not be well received by everyone in

the business information world, since

it will highlight the differences in the

respective providers’ data. He argues,

however, that it will allow his analysts to

explain the context for the differences,

and as such, protect the providers’

reputation: “As an example, a CCJ

was appearing on one data set but not

another, and we thought me may have

missed something. Then it became clear

that one provider keeps CCJ data for six

years, and another for longer, which

immediately explained the discrepancy

and put minds at rest.”

FUTURE CHALLENGE

The biggest challenge in the future,

Dan believes, is how he can take

the dual report concept beyond

limited companies and include nonlimited

companies and those trading

internationally: “That is a huge IT

challenge,” he admits, “but we will get

there by continuing to map and test what

we have and learn from experience.”

With more than 6,500 customers in

the UK, alongside a small but growing

number of international clients,

CoCredo has an ethos of putting its

customers first, a fact reflected in a

customer retention rate last year of 99.3

percent. It also likes to look after its

staff: “We have created a very familyoriented

environment,” Dan says, “and

are putting the foundations in place for

a business that future generations can

take on and grow.”

The company has already been

acknowledged for its work in raising the

bar. A winner of the CICM British Credit

Award in 2014, for the past seven years

the business has never failed to make

the shortlist: “It is more important to me

that we are consistently benchmarked

against the best,” he says.

Dan is also an active supporter of

the CICM Think Tank: “It is an excellent

opportunity to network with likeminded

professionals not just from our

own area of business information, but

also the wider credit community,” he

says.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 27


TRADE TALK

Sticky wicket

The next stage of Brexit discussions around trade are

proving to be tricky.

AUTHOR – Lesley Batchelor

Lesley Batchelor

THE Brexit negotiations have

of course moved onto the

topic of trade and as has been

predicted by many in world

trade the exact nature of our

future customs relationship

with the EU is proving to be quite a sticking

point. The UK Government position in May

2018 appeared to rule out a ‘Customs Union’

but nonetheless looked to preserve barrier

and tariff free trade between the UK and

the other EU member states. At the time of

writing, the options being suggested are a

loose ‘Customs Partnership’ that somehow

avoids a customs border on the one hand,

and a ‘Streamlined Customs Arrangement’

acknowledging checks and controls on the

other.

The ‘Customs Partnership’ indicates

that the UK and the EU would consider

‘innovative approaches’ that could

facilitate trade outside of a Customs

Union arrangement while removing the

need for border checks and controls. This

would likely resemble a Customs Union

but without the politically sensitive name,

allowing the UK to set up its own tariffs,

but requiring a complex system for goods

imported into the UK to then be sold onto

the EU in a way that would equalise the

tariff at the EU rate. This could be a difficult

system for UK businesses to comply with

given the potentially complicated nature of

the tariff equalising process.

The ‘Streamlined Customs Arrangement’

or Max Fac (short for facilitation) would

admit that some form of customs clearance

would be inevitable, regardless of duties

charged on goods. There are a few options

for facilitating this in a way that would

reduce the delays and costs anticipated

from a hard border. These include

various technological solutions and

data sharing arrangements with the EU,

simplifications of the customs procedure

to move it away from the border, and a

mutual recognition and benchmarking

of Authorised Economic Operator (AEO)

status.

It appears likely that some sort of

customs controls and checks will be

brought in should the UK continue to look

for an arrangement outside of a Customs

Union. Even if the two negotiating parties

were to arrange a form of new ‘Customs

Partnership’, there would nonetheless be

new compliance and tariff requirements

for businesses looking to move goods

between the UK and the EU.

HMRC is currently estimating that

this could lead to a significant increase

in the numbers of customs declarations

submitted by businesses – some figures

predict this will jump from 60 million

per year to over 250 million. HMRC

also predicts that 180,000 businesses

currently trading with the EU would need

to submit customs declarations for the

first time.

It is paramount that we don’t end up

with the dreaded situation whereby a

sudden new influx of declarations and

exports leads to significant delays and

chaos at our ports. The UK Government is

understandably anxious to find a solution

that moves customs interventions away

from the border. Authorised Economic

Operator (AEO) – which allows for some

traders to become ‘trusted traders’ who

can move goods under customs control

to an inland destination (such as their

premises), with their declarations to be

completed or resolved at a later date – is

an interesting suggestion.

Only around 700 UK businesses are

currently accredited with AEO status,

of which over 50 percent are freight

forwarders and logistics companies.

HMRC is preparing for a substantial

increase in applications leading up

to Brexit but whether companies are

sufficiently prepared to apply successfully

is an interesting point.

Businesses must be able to

demonstrate high standards in customs

and security procedures in order to

attain AEO. Customs competency –

something that UK businesses currently

just selling into the EU haven’t really

had to think about in decades – is a key

requirement. Businesses will need their

individuals involved in customs to be

able to demonstrate their competency in

customs matters. To demonstrate this, the

individual is required to have ‘successfully

completed training covering customs

legislation consistent with and relevant

to the extent...involvement in customs

related activities’.

At the Institute we provide this training

through our Diploma in World Customs

Compliance and Regulations or our oneday

training sessions. It’s fair to say that we

haven’t had individuals from all 180,000

businesses signing on to take the course

since Brexit, but those who have taken

it have gained a greater understanding

of how international customs works and

have been much better able to prepare

their businesses for the potential changes

ahead in the customs environment,

including but not limited to Brexit.

Whatever the solution to the UK’s

customs conundrum, businesses will

undoubtedly be faced with greater

customs requirements than they’ve been

used to within the EU. It’s only by learning

about the complexities of international

trade and gaining greater customs

competency through courses like our

Diploma that they will be able to prepare

for the future.

Lesley Batchelor OBE FCICM is Director

General of The Institute of Export and

International Trade.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 28


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The Recognised Standard / www.cicm.com / June 2018 / PAGE 29


INTERNATIONAL

TRADE

Monthly round-up of the latest stories

in global trade by Andrea Kirkby.

THE BEGINNING OF THE END?

COFACE isn't predicting

doom, but its latest 'State of

the Global Economy' paper

suggests we're sitting on the

top of the wave and it might

all be downhill from here.

According to Coface, low unemployment

is now the biggest constraint on most firms'

output. In Japan, it's the lowest it has been

for 25 years; in the EU, unemployment is

below the level at which economists expect

CHINA: RISK EXACERBATED

WHEN fund managers have anxiety dreams,

a hard landing for the Chinese economy

tops the list – ahead of 'going into the office

without my trousers on' or 'pursued by giant

spiders'.

So far, China has managed a decade of

avoiding a hard landing while moderating

some of the speculative excesses in its

economy. But have we become complacent?

A couple of stats from Atradius had me

wondering. Apparently, 40 percent of

Chinese companies surveyed use no credit

insurance at all. So, there's nothing to

EULER Hermes upgraded Chile this month,

and it's an interesting story. The country is

a huge copper exporter, and it's suffered in

the past couple of years from low copper

prices and a strike at its big Escondida

mine; but there's a lot more to the country

than that.

It's invested time and effort in striking

over 20 free trade agreements covering a

vast number of other countries, as well as a

scarce employment resource will start

pushing wage inflation up.

There's another worrying sign. At this

stage of the cycle you'd expect most people

to be feeling pretty happy with the economy;

the persistence of discontent, and the

prevalence of protectionist discourse as

well as election of way off-centre parties,

suggest this isn't the case – and things

could blow up badly if the economy starts

to falter.

stop a domino effect of insolvencies if one

company goes bust.

Add to that the fact that over a fifth

of companies now report that ultra-long

payment delays represent more than ten

percent of their turnover (and since 80

percent of that will probably never get

paid, basically they're running on turnover

that's eight percent less than the financial

statements say), and that anxiety dream

could become a full-on nightmare.

As always, be very careful when dealing

with the Middle Kingdom!

COME ON IN THE WATER'S…CHILE

sound democratic system and a businessfriendly

environment – perhaps unusual

for the region. The country has a solid fiscal

base, with public debt less than a quarter of

GDP, and it's seeing three percent growth.

With commodity prices now recovering,

this could be time to do a bit more business

in Chile.

Britain already exports machinery,

vehicles, and pharmaceuticals, and is

Add to all this an uptrend in commodity

prices with oil at $65 a barrel, higher interest

rates, and the fact that many business

confidence measures are beginning to

decline across the globe – and things look

mighty risky.

So, is this the beginning of the end? I

wouldn’t bet on things turning suddenly

south – but you might want to tighten up

your credit policies and batten down the

hatches, just in case.

increasingly selling consumer products

into the retail sector. But there are huge

education and consulting opportunities

as well. And perhaps the best news of all,

not only does Chile have all those FTAs,

but it has a well-developed banking sector,

particularly when it comes to foreign trade

finance – a huge advantage over the rest of

South America if you're looking for a local

trade hub.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 30


CUSTOMS UNION… 'A' OR 'THE'?

AN interesting new spanner has been

thrown into Brexit works with the House

of Lords' insistence that ministers should

seek to negotiate a new customs union

with the EU.

The vote may not succeed in keeping

Britain in a customs union, but it's certainly

shown the Government which way the

wind is now blowing – particularly as a

large number of Tories have joined the

rebel peers. The Government appears so far

to be sticking to its guns – but given the

way it backed down over citizens' rights

and then fudged the Irish border issue, I

wouldn't mind betting we'll see some kind

of move to conveniently rebrand customs

union in Brexit-friendly terms. Labour, with

its talk about not 'the' customs union but

'a' customs union, is certainly going that

route.

What does this mean for British

exporters? They certainly cannot relax.

The bomb is still ticking, and it hasn't been

defused – and the closer we get to B-day,

the greater the chance that it will explode

while David Davis and Theresa May are still

holding it. Keep working on your strategies

for dealing in a WTO environment, for the

time being; prepare for the worst, and hope

it doesn't happen.

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GBP/CAD 1.8147 1.7242 Up

GBP/JPY 153.733

147.271 Up

THE LONGER YOU DO IT THE BETTER IT GETS

Another nerdy blog turned up some food for thought this month. A post from a Bank

of England economist analysed export relationships in terms of country/product pairs.

It found that over 60 percent of the total value of 2014 exports came from were in product-country

relationships that had been in place since the 1960s. New exports, it seems,

take a long time to build to significant levels. Losing an existing trade hurts much worse

than not getting a new one. Or to look at it more optimistically: it’s a long haul, but the

rewards are likely to be exponential.

CURRENCY VOLATILITY ON THE RISE

THE prospect of full scale trade wars

has got forex traders going. Result: more

volatility in the currency markets. Normally

immune currencies like the rouble and

Kazakh tenge, as well as the Hong Kong

dollar, have seen big price movements in

recent weeks.

There's also an interesting shift in

views on the dollar. Central banks are now

apparently looking to other currencies in

building their reserves – a change from

policy over the last few years; the euro, in

particular, is benefiting, as the eurozone

sees the fastest growth in a decade and

banks that have so far been euro-light start

rethinking their strategies.

At the same time, China seems to be

thinking about whether the renminbi could

eventually take the dollar's place as reserve

currency. A recent launch of renminbi

denominated and foreign-tradable oil

futures revives the liberalisation trend.

Certainly, nothing's going to happen

overnight, but like the early moves in any

chess game, it will be interesting to see

what's going to happen. Meanwhile keep a

close eye on your currency rates, and hedge

appropriately.

SEA ROAD NOT SILK ROAD

I was fascinated by Coface's think on

trade in the Mediterranean. In contrast to

South-East Asia, where intra-regional trade

has rocketed, the Med hasn't managed to

establish strong trade links.

Now, Coface says, trade routes are

finally beginning to grow – but along the

south and east, not the EU-dominated

northern shore. Morocco and Turkey have

joined global value chains, particularly in

the automotive sector, while Egypt and

Cyprus are becoming major

regional chemicals players, and Tunisia

and Morocco have started exporting

ICT products and services within the

region.

Coface believes a rise in protectionism

could force the southern and eastern

Mediterranean countries into more reliance

on each other – in which case, having

a hub in a relevant country might be a

prudent strategy for exporters.

MORE FREE TRADE

ACCORDING to Atradius, 2018 will be the year

of the Free Trade Agreement – or at least,

it will be the year the EU actually gets its

latest batch of FTAs signed off. As Trump's

protectionist stance becomes more and more

evident, getting the deals finalised becomes

more urgent. But it's also the EU's best way of

making its products more competitive - if US

trade stutters, Europe could benefit.

Currently queued are deals with Japan

(the world's third largest economy), Mercosur

(combined, the world's seventh largest, and

the EU's tenth largest export market), Mexico,

Singapore, and Vietnam. It's worth noting

that the Singapore deal will include services

as well as goods – opening up one of Asia's

biggest finance markets to EU players.

It's a pity the UK won't benefit. If you want

to gain the advantage of these deals, though,

you could always open an EU base; something

Easyjet, insurer XL Group, and fancy-dress

supplier Smiffys have already done.

LEBANESE CREDIT

INSURER

LOCAL trade and finance hubs could

become increasingly important in a more

protectionist climate, and Lebanon shows

signs of becoming quite handy in that regard.

LCI has just expanded its debt collection

service to 11 African markets, including

Mauretania, Senegal, Gambia, Kenya, and

Nigeria, as well as offering

trade credit insurance

across the middle

east and Africa. Given

payment behaviour is not

impeccable across the

region, it's providing a

welcome service.

But how creditworthy

is LCI itself? Reassuringly,

it gets a BBB+ rating -

investment grade. Not

triple-A perhaps…but then

nor is the UK these days.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 31


COUNTRY FOCUS

Adam Bernstein

looks at how to do

business in Italy and

the implications

of tax.

Italy: Part two

MARKET

FORCES

The Recognised Standard / www.cicm.com / June 2018 / PAGE 32


COUNTRY FOCUS

DATA from the UK Government

from 2014 notes that the

biggest markets for UK

exporters to Italy were in:

crude petroleum; natural gas;

chemicals, fertilisers, nitrogen

compounds, plastics and synthetic rubber;

vehicles; and pharmaceuticals. On top of this

comes travel, transport and financial services.

That said, opportunities also lie in aerospace

which is rated as being the third largest in

Europe and the seventh worldwide – there are,

the UK Government believes, more than 100

firms serving this sector.

Not to be forgotten is the Italian automotive

sector which, in 2017, the US Government

reported as the fourth largest market in Europe

with 1.82 million vehicles sold in 2016. Half of

the manufacturing is undertaken by 1,300 firms

in and around Turin. While oil-based engines are

clearly popular, also relevant is the alternative

fuel market which was worth around $3.8 billion

in 2016. But while manufacturing is of interest,

so is the supply of componentry, which in 2016

was valued at $14.2 billion.

Opportunities also exist in defence and

security in relation to countering terrorism,

organised crime, cybersecurity, as well as

disaster relief and immigration – the latter a

function of Italy’s preponderance to earthquakes

and proximity to countries with emigrating

refugees.

Education has recently seen reform with

a focus being placed on foreign languages,

digital skills; further training for teachers;

and investment in school broadband and

Wi-Fi. Similarly, the Italian Health Service is

having to cope with an aging population, a

focus on prevention, and more outpatient

care. Those supplying medical devices and

diagnostic systems could find a market to

crack.

Italians are well known for their fashion

sense and have one of the highest spends

on these types of goods anywhere in the

world; fashion, accessories, shoes, cosmetics,

perfumes, furniture and interior design are

all of interest. A 2017 Deloitte report, ‘Global

Power of Luxury Goods’, says 16 percent of the

$212 billion revenue generated by global luxury

brands went to Italian firms. Allied to this are a

number of large shopping centre developments

that have opened (in Milan, Verona, Torino and

elsewhere) which no doubt will be followed by

others.

Carrying on the luxury theme, the Italian

marine sector produces 40 percent of the world’s

superyachts. Sub-sectors linked to this should

be of interest.

Lastly, UK firms shouldn’t lose sight of

the drive towards smart cities – cars, homes

and cities themselves. Milan is leading this

charge and there are opportunities for energy

efficient buildings, public lighting and waste

management.

While some consider that selling to Italy is

often best achieved by appointing an agent

or a distributor, Italian law allows firms to

set up forms of partnerships (standard and

limited), corporations, sole traderships, branch

or representative offices. For those taking

the corporate route, the most common types

of companies are Società per Azioni (S.p.A)

– companies with liability limited by shares

and Società a responsabilità limitata (S.r.l) –

companies with liability limited by quotas.

There are variations on each here which will

need specialist advice. To set up a company in

Italy the necessary procedures can be completed

through business assistance organisations

known as Sportello Unico Attività Produttive

(SUAPs). But before a company can trade, it must

deposit 25 percent of its share capital in a bank

account and then register with the Italian Trade

Register.

BUSINESS REGISTER

Companies in Italy need to be registered in the

Business Register. The company must then apply

for a VAT number. The current rate of VAT (locally

known as IVA) is 22 percent. A reduced rate of

four percent is applied to basic food products,

some social services, some publications, and

some seeds and fertilisers. Some ten percent is

charged on tourist services and some other food

products. The corporate tax (IRES) rate in Italy

is 24 percent. This fixed rate must be paid by all

resident companies on income from any source,

whether earned in Italy or abroad. There is also

a regional tax on business activities (IRAP) of 3.9

percent, which varies from region to region.

Personal income tax (IRPEF) is levied

on resident individuals on their worldwide

income. Non-resident individuals are only

subject to tax on their Italian source income.

There are five income bands with rates from

23 percent (for taxable incomes up to €15,000)

to 43 percent (for those earning over €75,000).

Social security contributions (INPS) apply to all

workers. Employers withhold 9.19 percent of the

employee's wage and the employer contributes

34.08 percent of gross pay. These rates are high

because of widespread tax evasion which in 2015

was estimated at €180 billion.

Firms will undoubtedly want to protect their

trademarks, designs, patents and copyright.

Italy, offers protection to companies and

individuals. However, the law here, especially

for patent protection, is not totally harmonised

within the EU. Applications for IP protection

should be done through the Italian Patent Office

of the Ministry for Economic Development.

Italy is clearly a substantial market that

will need time and effort to break into. But the

results and rewards may well make the effort

worth the investment. With the Brexit transition

agreement now on the way to being finalised,

exporters should feel confident for the short to

medium term at least.

Adam Bernstein is a freelance business writer.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 33


INTERVIEW

FECMA Country Profile – Italy

Sean Feast asks the questions of Alberto Cotti of the

ASSOCIAZIONE CREDIT MANAGER ITALIA.

Alberto Cotti

How many members do you have?

We currently have 500 members

Where are you based and what events

do you hold?

We have two main events – the ACMI

Day and the Annual Congress - and

some additional events focused on

specific matters (e.g Electronic billing,

Factoring tools, Credit Limits etc). Our

headquarters is in Milan and we have

two small branches in Veneto and in the

Centre/South of Italy.

What training do you provide?

We are in the process of creating a

certificate for the role of the Credit

Manager. We also deliver qualified

training at different levels and on

various disciplines and skills.

How would you describe the country’s

attitude to late payment?

Italy has shown along the years a

constant attitude to delaying payments.

Many small companies believe that

paying late is an intelligent approach -

until somebody pays them late!

Are there any specific laws/regulation

regarding late payment?

EU rules about payment terms are

becoming more respected than in

the past, especially between bigger

companies. Even in Italy a Prompt

Payment Code was delivered two years

ago, but there is much still to do.

What support do you provide to fellow

FECMA members?

We support FECMA granting access

under request to our associates and will

answer any questions related to the

world of Credit Management.

Contact for further information:

Alberto Cotti – acotti@dkny.com

The Recognised Standard / www.cicm.com / June 2018 / PAGE 34


CICM Southern Branches

Inaugural Credit Day

21 June 2018

HG Wells Conference Centre, Woking, Surrey, GU21 6HJ

Start: 08:30 for Registration/Refreshments. Finish: 16:00

This is a free event.

CPD

6

Care about

your career?

Care about your

business?

Want to ‘stay

relevant’?

Hear from over ten speakers, including: Paralympic athlete

Tim Lodge plus Paul Bohill and Steve Pinner from TV’s CAN’T PAY?

WE’LL TAKE IT AWAY! , on topics such as latest developments in

credit checking, collections, debt recovery, litigation, high court

enforcement and more.

Sponsored by:

Herrington Carmichael Solicitors & ARC EUROPE LTD

More Information / Reserve your place,

E: thamesvalleybranch@cicm.com

ANNUAL

GENERAL MEETING

The fourth Annual General Meeting of the

Chartered Institute of Credit Management will be

held on Thursday 7, June 2018 at the offices of

Moore Stephens, 150 Aldersgate Street, London,

EC1A 4AB at 13:00 (or at the rising of Advisory

Council from its preceding meeting, whichever is

later).

By order of the Executive Board

Philip King FCICM

Chief Executive

To read the Notice, visit:

http://www.cicm.com/about-cicm/governance/

As a CICM member you have

access to a wide range of

FREE advice and guidance

from industry experts

Credit management and specialist business advice –

our team of industry specialists are waiting to give

you free advice.

Legal Advice – CICM Corporate Legal Partner, DWF LLP

will give you 30 minutes free advice on legal issues.

Insolvency Advice – CICM Corporate Partner, Moore

Stephens, a top ten accounting and advisory network,

will give you free advice.

Simply complete the form at:

https://www.cicm.com/member-helpline/ and we’ll put

you in touch with one of our team of specialists right

away.

Some feedback from members includes:

“The guidance had a really positive impact.”

“Some great advice as anticipated, which will really

help me in my role.”

“The advice will aid us in our business model.”

“Great timescales for response and very efficient

service.”

Advice and guidance

As a CICM member you have access to a wide range of

FREE advice and guidance from industry specialists

The Recognised Standard / www.cicm.com / June 2018 / PAGE 35


TECHNICAL COMMITTEE

A GUIDING HAND

The work and people behind the CICM’s

Technical Committee.

AUTHOR – Alex Simmons

THE CICM Technical Committee

consists of 28 industry experts who

meet three times a year to review and

formulate responses to Government

consultations, white papers and new

legislation.

Consultations that are relevant to members

are advertised on the CICM website, promoted on

social media channels and sent to the Committee

and/or individual experts from the CICM Technical

Panel, which consists of a further 84 individuals, for

comment and engagement. All technical updates

and consultations are also sent out to members in

the monthly member Technical Briefings, which are

also accessible via the CICM website.

Members of the Committee are also on hand to

answer any questions that members have posed via

the CICM Advice Line. The Advice Line is accessed

via the homepage of the CICM website and is a free

member benefit. CICM Technical experts aim to

respond within 24 hours and some of the most recent

topics have included: banning credit card charges;

pre-action protocol for Partnerships; legalities

around contract clauses; dealing with vulnerable

customers when collecting debt; benchmarking

payment practices with competitors; gaining entry

to property advice; advice on drafting guarantee

letters; and fraud avoidance. The areas of specialism

are wide and varied – with questions in the

Insolvency field being covered by Corporate Partner

Moore Stephens, and Legal questions dealt with by

Corporate Partner, DWF LLP.

New members joined the Committee in February:

Kevin Shakespeare, from The Institute of Export;

Alistair Chisholm, of PayPlan; David Sheridan

MCICM, of ARC (Europe); Hans Meijer FCICM, from

Atradius Collections; and from the Conviviality

Group, Andrew MacDonald FCICM.

In recent months, the Committee has considered

more in-depth consultation responses such as: HM

Treasury – Breathing Space Call for Evidence; BEIS

– Retention payments in the Construction Industry;

Ministry of Justice – County Court Judgments; and

Independent review of the funding of Debt Advice in

England, Wales, Scotland and Northern Ireland. The

FCA’s ‘Assessing creditworthiness in consumer credit’

and BEIS ‘Late Payment Inquiry’ were particularly

important consultations for the panel.

Advice and guidance

As a CICM member you have access to a wide range of

FREE advice and guidance from industry specialists

The Recognised Standard / www.cicm.com / June 2018 / PAGE 36


TECHNICAL COMMITTEE

AUTHOR – Alex Simmons

the CICM to comment on white papers

or formulate responses to proposals and

consultations.

“From a personal point of view, it is

a fantastic opportunity to network with

experts from other fields within the world

of credit.”

“I write many papers and articles and

lecture on debt recovery so to have access

to this panel of experts is invaluable as all

the sessions are productive, convivial and

very interesting. The CICM is at the sharp

end of credit and wider business issues

and thanks to the Technical Committee

it remains informed in what is an everchanging

environment.”

CONSUMER EXPERTS

Debbie Nolan FCICM(Grad) advises the

panel on everything related to Consumer

Debt: “There was a historical perception

that the CICM had a larger focus on

business-to-business credit, when in fact

it looks at all areas of credit no matter

which phase of activity it relates to. The

world of consumer credit is very different

in terms of regulation with many

changes implemented since the FCA was

established – so having its finger on the

pulse is very important.

“As it’s such an enormous subject,

the CICM needs experts in the various

fields so they can advise what’s

happening. I attend countless meetings of

organisations including the Money Advice

Trust, Consumer Forums, Christians

Against Poverty and filter through what is

most important to the committee so it can

be communicated to members.

“I would like to encourage members

to use the advice line more often. They

should get in touch with any question no

matter how trivial they feel it is – we are

here to help.”

TWO-WAY BENEFITS

Mike Sargeant MCICM specialises in

Insolvency and feels the benefits are

two-way: “By being on the Committee my

knowledge is broadened which means

I can pass it on to clients and contacts

further up the line. The Committee is

an incredibly valued resource that helps

guide the CICM’s thinking and inform the

Government and other associations how

business should be done.

“It’s a real privilege to be involved and

back up the important advisory work

the CICM does. I think the gravitas of

the CICM has been improved by having

all these sector experts on board, which

in turn has enhanced its professional

standing and reputation.”

Steve Mayos MCICM looks after

International Trade and has 20 years’

experience: “The large proportion of

my work focuses on the international

markets and especially the EMEA

region and Africa. I recently attended

the International Credit Professionals

Symposium in Budapest to ensure I

have all the most current knowledge

at my disposal to pass on to members

of the Committee. The role we play is

fundamental to maintaining the CICM’s

position as a mouthpiece for the credit

profession.

“Any CICM member with any level

of experience should feel comfortable

getting in touch with the Advice Line

– even if we don’t know the question

immediately – we will know someone that

does and will be able to help.”

Lauren Carter FCICM (B2B Debt

Collection) feels the Committee is

key in helping the CICM to deliver its

strategies by being a mouthpiece for the

industry and collating information and

disseminating it to members.

“We all have a crucial, informative

role to play. I have attended meetings

with Payments UK among other bodies to

represent the CICM to gather information

and relay it to members of the Committee.

This helps us to stay informed and enables

Stephen Cowan FCICM helps

to keep the panel informed of

activities in Scotland: “My role

involves keeping members upto-speed

with the political mood

and any legislative changes that

could impact on credit control

issues in the UK, for instance

the Debt Arrangement Scheme

which has been lauded as a great

success and is regularly updated by the

Accountant in Bankruptcy.

Members are asked to

complete a short survey after

they have received a response

from the Advice Line. Feedback

has included:

“The guidance had a really

positive impact.”

“Some great advice as anticipated,

which will really help me in my role.”

“The advice will aid us in our

business model.”

“Great timescales for

response and very efficient

service.”

The Recognised Standard / www.cicm.com / June 2018 / PAGE 37


PAYMENT TRENDS

The Silent Treatment

The latest monthly business to business payment

performance statistics.

AUTHOR – Jason Braidwood FCICM(Grad)

ACCORDING to the Federation

of Small Businesses (FSB),

50,000 companies cease

trading each year as a result

of late payments, which

costs the UK economy

approximately £2.4billion in lost output.

The culture of keeping quiet on late

payment is still rife, particularly among

SMEs. Smaller suppliers fear that they will

be dropped by big company clients if they

complain and often draw on their own

finances in order to plug payment deficits.

There was hope that the appointment of a

Small Business Commissioner last year would

lead to a more rigorous attitude toward late

payment, but in reality, SMEs are raising very

few complaints so the issue goes untreated.

From our own data, which tracks payment

performance across 20 different business

sectors and 11 UK regions, we can clearly see

that the picture of payment performance is

in constant flux. In the last month, we have

seen how long a business takes to pay its

invoices beyond the agreed payment terms,

ranging from a figure of ten Days Beyond

Terms (DBT) at best and over 19 DBT at worst.

For the year to date, we have an average DBT

figure of nearly 14.

Prompt payment is often discussed as

an ‘ethical’ business issue. Whether you

view this language as hyperbole or not, the

premise is entirely fair. The business case for

prompt payment is clear and unquestionable,

and the fear of speaking out should no longer

be the status quo.

SECTOR SPOTLIGHT

To shift to a slightly more positive note, there

are some sectors this month that have shown

significant improvement when it comes to

reducing DBT. The Energy sector needs a

particularly loud shout out this month, after

decreasing its DBT score by over a third to

fall just under the 15-day mark after a threemonth

hiatus up in the low 20s.

We have also seen significant

improvements for the International Bodies

sector, Home Businesses and IT sectors this

month. The IT sector in particular has been

on something of a DBT rollercoaster this year,

with a score as low as 7.8 DBT at the end of

2017 and as high as 17.8 DBT last month.

Let’s hope this trend matches the continued

growth of the UK digital tech economy we

have seen despite Brexit uncertainty.

In spite of these much improved scores,

the main swathe of sectors we track

monthly have edged toward worsening

payment performance, albeit very

marginally. 75 percent of the sectors

increased their DBT scores in the last

month, but only two sectors by two days

or more – Manufacturing and the Mining

sectors.

The Mining sector, alongside the

Business Administration and Finance

sectors all sit at 18 days or more this

month beyond agreed payment terms.

While it’s good news to report that no

sector has reached 20 days or more DBT

this month, the trend suggests we may see

this return in next month’s summary.

REGIONAL SPOTLIGHT

The average DBT score across the

country this month is 15.2 days – slightly

higher than the industry average of 14.6

days. This broader picture also shows

that like the sectors, nearly a third of

regions have either improved or kept their

payment practices the same this month

and two thirds have shown a loosening

grip on late payments.

Northern Ireland wins our best

payment performer award (there is no

actual award, fyi) for the month and

Wales delivered the greatest drop in DBT,

after shaving nearly a day off its score.

On the flipside, East Anglia gets the

worst performance label, with a rise in

DBT of over two days to reach 17 days in

total. This returns the region back to the

level of late payment it had reached at the

end of 2017, which is always a worrying

sign in such close proximity.

It is the West Midlands, however, that

increased the number of days it pays

suppliers the most, rising from 11.6 days

last month to 15.4 days this month.

To end on a positive, there are a few

regions that have maintained a steady DBT

for the year to date. London in particular,

while still averaging at a high score of 15.1

DBT for 2018, has stuck fairly tightly to

this figure. In a melting pot of constantly

changing DBT scores, consistency is

always worth celebrating.

Jason Braidwood FCICM(Grad),

Head of Credit and Collections at

Creditsafe Business Solutions.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 38


n

1.5 q East Midlands

0.8 q London

1.8 q North West

-0.4 p Northern Ireland

0 u Scotland

0.6 q South East

Top 2.5Five q Prompter South Payers West

-0.8 Wales

p

Education 10.1 0.2

West Midlands

Public Administration 10.7 0.5

Entertainment 10.8 -0.6

International Bodies 11.2 -3.6

Hospitality 12.0 0.6

Top Five Prompter Payers April 18 Change from March 18

q

Region

3.8

2 q

Sector

Bottom 2.1 q Five Poorest East Anglia Payers

Getting Better

1.5 q East Midlands

Mining & Quarrying 19.2 2.2

Top Business 0.8 Five Prompter Admin q 7.5& London

Support Energy Payers 18.7 Supply 0.1

Financial & Insurance 18.3 1.6

3.6 International Bodies

Water

1.8

& Waste q North West

17.4 1.5

Northern Manufacturing -0.4

Ireland p 2.3Northern Business

12.3 16.0 Ireland from

-0.4

Home 2.1

South East 14.0 0.6

Wales 0 u 2.1Scotland

IT & Comms

14.1 -0.8

Yorkshire & Humberside 15.4 2

0.6 q

West Midlands 0.6South Entertainment

East

15.4 3.8

2.5 q South West

-0.8 p Wales

Bottom Five Poorest Payers

3.8 q West Midlands

2 q Yorkshire & Humberside

Bottom Five Poorest Payers April 18 Change from March 18

Region April 18 Change from March 18

Region April 18 Change from March 18

East Anglia 17.0 2.1

Scotland 16.7 0

London 15.9 0.8

East Midlands 15.7 1.5

tter - Getting Worse

North West 15.6 1.8

East Anglia

Top Five Prompter Payers

East Midlands

Top Five Prompter Payers

London

Northern Ireland 12.3 -0.4

North

South East

West

14.0 0.6

Education 10.1 0.2

Wales 14.1 -0.8

Public Administration 10.7 0.5

Northern Yorkshire & Humberside Ireland 15.4 2

Entertainment

Region

West Midlands 10.815.4 -0.6 3.8

International Scotland Bodies 11.2 -3.6

Hospitality 12.0 0.6

South East

Bottom Getting Five Better Poorest - Getting Payers Worse

Bottom South Five West Poorest Payers

2.1 q East Anglia

Wales East Anglia 17.0 2.1

Mining &

1.5

Quarrying

q East

19.2

Midlands

2.2

Scotland 16.7 0

Business West Admin Midlands

& Support 18.7 0.1

London

0.8 q London15.9 0.8

Financial & Insurance 18.3 1.6

East Midlands 15.7 1.5

Water Yorkshire & Waste

1.8 q

& Humberside

North West North

17.4

West 15.6

1.5

1.8

Manufacturing 16.0 2.1

-0.4 p Northern Ireland

0 u Scotland

0.6 q South East

2.5 q South West

rompter -0.8 Payers p Wales

3.8 q West Midlands

April 18 Change from March 18

2 q Yorkshire & Humberside

Top Five Prompter Payers April 18 Change from March 18

Region April 18 Change from March 18

Bottom Five Poorest Payers April 18 Change from March 18

land 12.3 -0.4

14.0 0.6

14.1 -0.8

Humberside 15.4 2

ds 15.4 3.8

Yorkshire & Humberside

Getting Better - Getting Worse

Region April 18 Change from March 18

PAYMENT TRENDS

Region

Top Five Prompter Payers

Getting Worse

2.2

2.1

1.9

1.9

1.8

Northern

Ireland

12.3 DBT

The Recognised Standard / www.cicm.com / June 2018 / PAGE 39

Top Five Prompter Payers April 18 Change from March 18

Education 10.1 0.2

Public Administration 10.7 0.5

Entertainment 10.8 -0.6

International Bodies 11.2 -3.6

Hospitality 12.0 0.6

Bottom Five Poorest Payers

Mining & Quarrying 19.2 2.2

Business Admin & Support 18.7 0.1

Financial & Insurance 18.3 1.6

West

Water & Waste 17.4 1.5

Midlands

Manufacturing 16.0Wales

15.4 2.1DBT

14.1 DBT

Scotland

Mining & Quarrying

15.5 DBT

16.7 DBT

Manufacturing

Health & Social

Professional & Scientific

Northern

Agriculture, Forestry & Fishing

Northern

Ireland

12.3 DBT

Scotland

16.7 DBT

Northern

Ireland

12.3 DBT

North West Yorkshire &

Humberside

15.6 DBT

Bottom Five Poorest Payers April 18 Change 15.4 from DBT March 18

Ireland

12.3 DBT

Wales

14.1 DBT

Scotland

16.7 DBT

Wales

14.1 DBT

North West

15.6 DBT

Scotland

16.7 DBT

South North West

15.5

15.6 DBT

DBT

Wales

14.1 DBT

South West

North West

15.6 DBT

South West

15.5 DBT

Yorkshire &

Humberside

15.4 DBT

West

Midlands

15.4 DBT

London

15.9 DBT

East

Midlands

15.7 DBT

London

15.9 DBT

Yorkshire &

Humberside

15.4 DBT

West

Midlands

15.4 DBT

East

Midlands

15.7 DBT

Yorkshire &

Humberside

15.4 DBT

West

Midlands

15.4 DBT

London

15.9 DBT

Sector

East

Midlands

15.7 DBT

East

Midlands

15.7 DBT

London

15.9 DBT

East Anglia

17.0 DBT

South East

14.0 DBT

East Anglia

17.0 DBT

South East

14.0 DBT

East Anglia

17.0 DBT

South East

14.0 DBT

East Anglia

17.0 DBT

South East


LEGAL MATTERS

Tools of the trade

Using construction legislation to unlock debt and

get some cash in.

DD +44 113 261 6180 E andrew.symms@dwf.law W www.dwf.law/recover

Andrew Symms

Construction & Infrastructure

MORE than 20 years ago

Parliament identified

the problem of deliberately

delayed payment

in the construction

industry.

The result was the Housing Grants

Construction and Regeneration Act 1996 (the

Act). This legislation provides the potential

to release debts quickly and for very

limited cost. Equally it provides traps for

the unwary who have legitimate reasons

not to pay.

For anyone involved in ‘construction

operations’, it is worth investigating

the application of these processes and

seeing whether they can be used to your

advantage.

THE HGCRA APPROACH

The Act adopts two parallel paths to achieve

its objectives:

• a payment regime– if the contract does not

include a compliant one, then the Act will

imply one

• a fast track dispute resolution regime (adjudication)

which allows parties to get an

enforceable decision within 28 days and

without exposure to the other side's legal

costs. Again, if the parties do not include

a compliant procedure, the Act will imply

one.

THE PAYMENT PROCEDURE

The Act puts the onus on the paying party

to respond to any application for payment.

It is not open to the paying party to do

nothing without seriously risking that it

must pay the amount applied for.

In order to avoid paying the amount

applied for, the payer must do one or both

of the following:

• within five days of the application,

certify the amount that the payer is

prepared to pay; and/or

• prior to the date when payment is to be

made, inform the payee, by a document

called a ‘pay less notice’, that the payer

does not intend to pay the amount due

to be paid. In the absence of an agreed

period, it must be at least seven days

beforehand.

Failure to follow either of these

procedures will usually mean that the

amount applied for will need to be paid.

Even if the payer has valid reasons not to

pay, the message behind the legislation

is that the payer has lost its immediate

right to raise these arguments. It does not

lose them entirely, but it shifts the onus

on to the payer to prove his entitlement to

recoup the money paid over.

Coupled with fast-track dispute

resolution, the payee is in a powerful

position to threaten to put the payer's

failure to follow the procedure in front of

an adjudicator. The adjudicator's award is

enforceable in front of the courts.

DO YOUR HOMEWORK

Each case will examine the following:

• was there a valid application

• was a payment certificate issued in the

right form and within the timescales

• was a valid pay less notice issued within

the timescales

• was there a final date for a payment and

has that date passed

The key for payer and payee is to follow

the procedures in substance, form and

intent, and be free from ambiguity.

However, if you are looking for

payment you will need to pick your

claims. What you do not want to do is go

to the trouble of an adjudication to then

have the courts refuse to enforce. Often

this will be because the courts will see

certain contractors looking to ambush

innocent payers who have inadvertently

failed to follow the correct procedures.

DANGERS

The recent cases illustrate the key

message: where there is a clear payment

application and a failure to issue a

payment notice and/or pay less notice,

adjudicators will make awards and the

courts will enforce.

However, you do need to be aware of

the potential counter-arguments. These

are: a challenge to the procedure; or the

running of a counter-adjudication.

CHALLENGE TO THE PROCEDURE

The courts view is that, given the

potentially draconian impact of these

provisions, if a payee wishes to rely on

a ‘technical knockout’ it must submit its

applications with proper clarity.

COUNTER-ADJUDICATION

There are various disincentives to a

payer taking this step, so it is unusual.

However, the typical reason is where

the first adjudication has resulted in a

windfall to the payee, purely because of

simple failure to follow procedure. The

payer then runs a counter-adjudication to

get his own decision to set off against the

payee's.

CONCLUSIONS

For those chasing payment, not all

applications will be appropriate for

adjudication. However, even a quick

analysis of compliance with the

procedures and the payer's motives for

not paying, should give a sense of which

applications are worth pursuing.

There will be many, many examples

where reluctant payers have received

valid bona fide claims and have no reason

to challenge, but have simply refused to

pay and have not issued a certificate or

a pay less notice. These are the ones to

identify.

As a CICM member you can receive free legal advice from

DWF visit the cicm website and click on the free advice line.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 40


THE PERFECT VENUE FOR THIS YEAR’S

CICM Fellows’

Lunch 2018

This year, we are inviting you to one of the most iconic buildings in the world, no

other venue is more instantly recognised 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. Their reputation for outstanding events makes the

House of Commons the ideal venue for this year’s Fellows’ Lunch.

FRIDAY 8 JUNE 2018

Arrival drinks served at 11:30am

Tickets £135.00+VAT per person, which includes a tour after the lunch.

Please email fellowslunch@cicm.com to book

(please note that spaces are limited)

House of Commons, London, SW1A 0AA


Leader or follower?

CICMQ accreditation is a proven model that has consistently delivered

dramatic improvements in cashflow and efficiency

CICMQ is the hallmark of industry leading organisations

The CICM Best Practice Network is where CICMQ accredited organisations

come together to develop, share and celebrate best practice in credit and

collections

Be a leader – Join the CICM Best Practice Network today

To find out more about flexible options to gain CICMQ accreditation

E: cicmq@cicm.com, T: 01780 722900

The Recognised Standard / www.cicm.com / June 2018 / PAGE 42


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Membership

Benefits

CICM membership gives you access

to all of these benefits

Credit Management

magazine

National and

regional events

Knowledge

Hub

Qualifications

and training

Professional letters

after your name

Branches around

the country

Industry

resources

Monthly

e-newsletter

Webinars

Mentor

Hub

Recruitment

Hub

Monthly

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 www.cicm.com,

call us on 01780 722900, or email

cicmmembership@cicm.com

The Recognised Standard / www.cicm.com / June 2018 / PAGE 44


CICM VIRTUAL

SUMMER SCHOOL

IS BACK

Places are filling up fast, so if you would like to study over the summer for the

October assessments, please book now to avoid disappointment.

Classes are led by an experienced teacher and are interactive, and there are plenty

of opportunities to ask questions and test your knowledge.

You will hear your teacher and fellow learners over the telephone and see interactive

PowerPoint slides on your PC.

Classes start in June for Level 3 examined units in Credit Management, Business

Environment and Business Law and for Level 5 units in Strategic Planning and

Compliance all leading to October 2018 assessments.

To find out more contact CICM Credit Academy to book a place.

T: +44 (0)1780 722907 or E: creditacademy@cicm.com.

Level 3 Classes

Credit Management (Trade, Consumer,

Export) w/c 11 June (almost full)

Business Law w/c Thursday, 21 June

Business Environment w/c Monday, 25 June

Level 5 Classes

Compliance w/c Wednesday, 20 June

Strategic Planning w/c Tuesday, 26 June

Check out the CICM

website for more details of

CICM Qualifications and

study options



It’s been almost a year now

at Anixter and studying

for my L3 CICM Credit

Management Diploma, I

am still very committed to

succeeding in a career

in credit.

A Graduate’s pathway

to Credit Risk Analysis

Dan talks about his career since graduating at

Sheffield Hallam University and a typical day in his

current role at Anixter.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 46


EDUCATION

DAN is part of a twoman

team that make up

New Accounts UK and

New Accounts EMEA at

Anixter.

Anixter is a leading

global distributor of network and security

solutions, electrical and electronic

solutions and utility power solutions. It

helps to build, connect, protect and power

valuable assets and critical infrastructures.

WHAT IS YOUR BACKGROUND?

Originally from Nottingham, I chose to

move to Sheffield and seek a degree level

education at university. I graduated from

Sheffield Hallam University with a BA

Honors degree in Business Economics in

2015.

Like most people at university, I was

unsure which career path to take after I had

finished my studies. With the economics

degree, I realised from very early on that

this would be a vital tool to opening many

doors within the business world.

After a few months of working for the

Royal Mail in a steady accounts receivable

job, I started to slowly realise that life

was a bit too short to jump straight into

a career as I wanted to see the world (a

cliché I know).

This led me to travel to Australia for the

next two years, while most of my friends

were working in bars or other jobs as a

stop gap. I realised that time was a valuable

asset and wanted to enjoy travelling but

also have meaning towards my future

possible career.

HOW DID YOU GET INTO CREDIT

RISK MANAGEMENT?

After completing the standard farm work

picking watermelons (which was needed to

apply for a second-year visa), I then moved

to Sydney where I was lucky enough to

get a job interview for Hays Recruitment,

based in the central business district.

Credit control was a career path I had not

previously considered.

After a few months of working as a

credit controller, I enjoyed the prospect

of working my ledger and building

up relationships with customers.

Unfortunately, you can only stay working

for a company in Australia for six months

at a time on a working visa. The time had

come to move on and travel Indonesia.

After returning to the UK in 2017

it was time to start thinking about a

career that would take me to the top.

With a background working in a credit

department already, I wanted to know

what other roles would suit me. After

reading about the position credit risk

analyst, I started to realise this was the

right path for me. With my economics

degree I was used to looking at data and

recognising trends in the economy and

looking at influencing factors.

This led me to apply for a role at Anixter.

Bryony was very kind to offer me a role but

also had her preconceptions that I may

fly off and travel again. It’s been almost a

year now at Anixter and studying for my

L3 CICM Credit Management Diploma, I

am still very committed to succeeding in a

career in credit.

WHAT DO YOU ENJOY ABOUT

YOUR ROLE?

Variation is the main factor that makes

my job enjoyable – ‘no day is the same’.

Although I liked working as a credit

controller, the credit risk side involves

more data analysis and a greater sense of

achievement. Having more power to make

decisions has made me feel more a more

valued member of the team. The day-today

fundamental jobs that I undertake

help maintain the continual monitoring

of a customer’s risk and credit worthiness.

Looking at the detail within financials and

recognising common trends has helped

to develop my perception and diligence

to identify key risk areas that can lead

to the prevention of possible bad debt.

The relationship you build with not just

customers, but also sales within the

company is another aspect of the role that

makes it like no other.

HAS IT MET EXPECTATIONS?

It has more than met my expectations. I

know that there is more advanced learning

to be completed in the future, not just

understanding credit but the methods

used to manipulate data and coming up

with new ideas to help take the company

towards its corporate goals. Efficiency and

time saving is a must within the credit

team as colleagues’ ledgers grow, the

risk team look at ways to help minimise

troublesome customers and create macros

to automate day-to-day tasks.

WHAT ARE YOUR PLANS FOR THE

FUTURE?

I am currently near the end of L3 CICM

qualification. The future looks bright,

I know where I want to be and I know

what needs to be done to achieve this.

Although this is the start of my ‘adult

career’, I still have a passion to travel

and see the world. This can hopefully be

achieved by becoming more educated and

experienced, which in-turn would allow

me to travel to countless destinations.

My manager Bryony stands out as a role

model within this field. She currently

covers the Nordics, Europe and the

Middle East. Although it’s very tiring

for her to be travelling from place to

place, it’s something I strive towards. The

sense of achievement from a managerial

perspective would be the next goal within

my career in credit.

A typical day

Morning reporting

• Running AMEX payments, creating

remittance for previous days

Worldpays

• Receive a monitoring list from our

credit platform, CoCredo, which

identifies key changes such as

financials, directors leaving, a

change in risk scores, change

in limits). I check accounts via

these updates and look at overdue,

payment patterns – any factors

that may give us reason to decrease

limits or put credit on hold/stop

orders

• Run the cash trackers daily (involves

inserting previous days cash into

an excel macro). This helps keep

track of what has come in against

expected. Also gives a running

monthly target

Emails

• Limit increase request for order

releases

• Change of profile request for

customers

Credit checks on potential customers

(projects expected and orders)

• Extended terms requests

Annual Reviews

• Checking customers per year –

looking to see if the limit is still

needed, trade levels, payment

performance, financial trends

• Making a decision to see if we need

to increase or decrease the limit,

thus decreasing credit exposure

New customer accounts

• Setting up new customers, VAT

check, export checks, financial

checks, making sure a customer

is legitimate and giving them a

proposed limit

Edelivery

Maintaining email version database –

setting customers up on email invoice

delivery as per request.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 49


CICM EDUCATION

CONFERENCE 2018

Tuesday, 26 June 10:00 – 16:00

Cultivating an agile Credit and Collections team

EDUCATION, Education, Education! Book

now for the unmissable annual CICM

Education Conference being held in

Birmingham on Tuesday, 26 June.

Reserve your place at this popular event

to discover from education specialists and

senior credit and collections managers

about ‘Cultivating an agile Credit and

Collections team’. With a programme

packed with forward-thinking and

inspirational speakers, the conference

will quickly bring you up-to-date with

latest developments and help progress

you and your team’s professional

development. A focus this year is on

creating a culture of self-led learning.

Learn about new CICM standards and the

host of new membership resources to

support your learning goals. Find out more

about the Credit Champions initiative

and how apprenticeships are building

the profile of credit as a career. Book

an appointment with an an Education

Adviser and Member Assessor to facilitate

your application to the next CICM

membership grade. A range of workshop

sessions will suit you and new learners,

and give plenty of opportunities to ask

questions and meet like-minded credit

professionals.

Find out about new CICM qualifications and how to progress

Gain ideas about creating a growth mind-set and building team performance

Get started with the CICM Knowledge Hub and Mentor Hub

Learn about best practice blended learning for multi-site global teams

Meet the first apprentices and find out more about end-point assessment.

We expect this event to be very popular and places are

limited so to avoid disappointment, email CICM to book.

educationconference@cicm.com or call +44(0)1780 722902


Track your continuing

professional development with

CICM Knowledge Hub

FREE

CICM

MEMBER

BENEFIT

Find the CICM standards for

CPD below and how to get started.

It’s never been easier.

1. Access Knowledge Hub via the CICM website.

Simply click the ‘member login’ button on the top right of the screen to gain access:

2. Under the ‘My Learning’ drop

down menu on the top blue

bar, select ‘my CPD’:

3. Your personalised CPD

programme will be

displayed:

4. The ‘Requirements’ tab

shows a CPD programme

suggested by CICM, although

you or your organisation can

devise a bespoke one:

The ‘Activity’ tab displays all recorded

CPD for the last 12 months. Every time

you undertake an activity in Knowledge

Hub and complete the reflective feedback,

your CPD time will automatically update

here.

You can also add any CPD undertaken

outside of Knowledge Hub. Simply click

on the ‘Add new external CPD activity’

button and follow the steps.

Activities are broken down into ‘technical’, ‘personal skills’ and ‘career

development’ areas to allow you to build an appropriate range of skills.

Learning can be informal (e.g. reading a credit journal) or more formal (e.g.

completing an online training topic).

Your CPD record will be a useful tool for you and your line manager. And

remember that by achieving and submitting the required number of hours

under CICM’s own CPD programme, you will be able to gain CICM certification

for your CPD too.

Why not take a moment to check out your CPD right now?

If you would like to find out more about CICM’s CPD

programme or Knowledge Hub Contact:

T: 01780 722909 E: learningsupport@cicm.com


HR MATTERS ROUNDUP

PREGNANT WORKERS

AND REDUNDANCY

What does the law state about pregnant

workers and redundancy?

AUTHOR – Gareth Edwards

ARE pregnant workers

entitled to special treatment

when redundancy is

being considered? This

was answered in Porras

Guisado v Bankia SA and

others (Case C-103/16) by the European

Court of Justice (ECJ). It ruled that they are

not.

The Pregnant Workers Directive affords

protection against dismissal to pregnant

workers, and those on maternity leave,

during a protected period which starts at

the beginning of pregnancy and ends when

the employee returns to work. In the UK it

is generally accepted that a woman will

COULD an expectation that a disabled

person work long hours be discriminatory?

The Court of Appeal recently ruled on

this in United First Partners Research v

Carreras.

Under the Equality Act 2010, employers

have a duty to make reasonable adjustments

when a disabled employee is placed at a

substantial disadvantage compared with

a non-disabled person as a result of a

provision criterion or practice (PCP). In

discrimination cases, a PCP is construed

widely to include formal and informal

practices, policies and arrangements.

Mr Carreras was employed as an analyst

for United First Partners Research, a firm of

brokers. He typically worked from around

8am or 9am until between 9pm and 11pm.

HMRC has published clarification

regarding the commencement of tax

treatment for payments in lieu of notice

(PILON) and the tax treatment of nonstatutory

redundancy payments.

From 6 April 2018, all PILON will be

taxable as earnings, regardless of whether

there is a PILON clause within a contract

of employment or not. Previously, in the

absence of a contractual right to make a

not benefit from the statutory protection

until her employer is made aware that she

is pregnant.

The directive provides that member

states should take all necessary steps

to safeguard pregnant workers from

dismissal during the protected period. If

a pregnant worker is dismissed, it must

be in exceptional cases only and the

employer must cite the reason for the

dismissal in writing.

It is automatically unfair to dismiss

a woman or select her for redundancy

when the principal reason for doing so is

connected to her pregnancy or statutory

maternity leave. But in Porras, the court

Long working hours

In July 2012, Carreras was involved

in a bicycle accident which left him

with serious physical and emotional

injuries, including dizziness, fatigue and

headaches. He also experienced difficulty

concentrating. The tribunal subsequently

determined that this amounted to a

disability under the Equality Act 2010.

As a result of his symptoms, on his

return to work Carreras began to leave

the office between 6.30pm and 7pm each

day. After a few months, his line manager

began to request that he work later in

the evenings and when he agreed, this

became an expectation that he would

do so. Carreras subsequently objected

to working late in the evenings. His line

Upcoming changes

held that collective redundancy can

be considered an exceptional case for

dismissal.

In the UK, under regulation ten of

the Maternity and Parental Leave etc.

Regulations 1999, priority treatment

must be given to women who are at risk

of redundancy whilst on maternity leave.

Female employees on maternity leave

during a redundancy process are entitled

to be given first refusal on suitable

alternative vacancies. If the employer

does not comply, the employee will have a

claim for automatically unfair dismissal.

This is a rare example of lawful positive

discrimination.

manager in response reprimanded him in

front of his colleagues and told him that if

he didn't like it he could leave. As a result,

Carreras resigned and brought claims of

constructive unfair dismissal and failure

to make reasonable adjustments.

Carreras’ claims were unsuccessful at

first instance and this case went all the way

to the Court of Appeal, which upheld the

Employment Appeals Tribunal's decision

that an expectation on an employee to

work late did amount to a PCP.

A tribunal will now need to consider

the nature and effect of the disadvantage

suffered by Mr Carreras as a result of

the PCP and to address the question of

reasonable adjustments.

PILON, employers could pay employees

such a payment without deduction

of income tax or National Insurance

contributions.

The relevant legislation introducing

the change states that the changes have

effect for the tax year 2018-2019 where

termination also takes place in tax year

2018-19 and subsequent tax years.

HMRC has also stated that all nonstatutory

redundancy payments can

continue to be charged to tax under section

401-416 of the Income Tax (Earnings and

Pensions) Act 2003, where the first £30,000

can be paid free from deductions.

Gareth Edwards is a partner in the

employment team at Veale Wasbrough

Vizards. gedwards@vwv.co.uk

The Recognised Standard / www.cicm.com / June 2018 / PAGE 50


CAREER’S ADVICE

Making a good impression

First impressions count, especially when starting

out in a new job.

AUTHOR – Karen Young

Karen Young

WELL done – you’ve

successfully passed the

interview stages and

have secured your great

new job. Making a great

impression on your first

day is key and you’ll want to present yourself

to your new colleagues as professional,

personable and knowledgeable.

Waiting to start a new role can feel like

you’re in a bit of a limbo period. It may be

useful to use this time to reach out to your

future employer to ask what you can do to

prepare for your first day. It’s also worth

keeping in touch with your recruiter when

you are working with one so they can keep

you informed too and help with any queries

you may not want to directly ask your new

employer.

FIRST DAY SUCCESS STRATEGY

Your new employer will of course already

have an idea of what you can bring to the team

based on your performance at interview. Your

first few days should begin to confirm their

initial thoughts and can have a strong bearing

on how they perceive you.

Your new team will likely be prepared

for your arrival and do everything they

can to create a welcoming and supportive

atmosphere, but there are also things you can

do to make sure everything goes smoothly:

1. IF YOU ARE EARLY, YOU ARE ON TIME.

IF YOU ARE ON TIME, YOU ARE LATE

Ensure you plan your journey to work the

evening before and aim to arrive around half

an hour to 15 minutes early to show your

eagerness to get started. This may also make

introductions easier as you can greet new

colleagues one by one as they arrive. However,

don’t arrive too much earlier than that as it

can also throw your new manager into panic

mode if they are not quite ready themselves!

2. MAKE AN EFFORT TO REMEMBER NAMES

As you greet your new colleagues, make sure

to use their names throughout conversations

as this can help you retain the information. A

good tactic is to repeat their names when they

introduce themselves. Even though it can be

daunting to meet new faces – remember that

everyone has been in this position before.

3. GET TO KNOW YOUR NEW ROLE

Take advantage of your first day and ask as

many questions as you need to in order to gain

an efficient understanding of your new job and

organisation. The first few days are when your

managers will be most receptive to your needs

so use the opportunity to ask broad questions

such as: ‘what is the focus of the team?’; ‘what

are the business’s current objectives?’ ‘how

can my role help us progress towards them?’.

Keep questions to your manager business

related and you can then start to initiate

more informal and friendly, rapport-building

conversations with your other new colleagues.

4. LISTEN

Listen more than talk in these early stages so

that you absorb and learn more. Take notes

whenever you can as you’ll be absorbing a

great deal of new information and you don’t

want to forget anything. I always find it

encouraging when someone attempts to find

the answer from their notes before they ask

the same question a second, or even third

time as it shows a proactive nature.

5. GIVE IT A CHANCE

If you feel that you’ve made a mistake or haven’t

immediately gelled well with some colleagues,

don’t panic as it often takes time to settle into a

new organisation. Stay positive and work hard

and if you still feel uncomfortable after a few

months sit down with your manager who can

listen to any concerns and hopefully provide

some advice on how best to proceed.

Once you’ve finished your first day if you

have been working with a recruiter, make

sure to give them a call to let them know how

it went. It’s important to share any questions

with them at this stage as they are best placed

to find out information on your behalf and

can usually ask questions you may not want to

ask your new employer.

Follow the tips above to help your first

day go as smoothly as possible, but don’t put

too much pressure on yourself. Your new

employer will believe in you and will want you

to succeed, which is why they hired you, so be

confident and embrace your new challenge.

Most of all, enjoy it!

Karen Young is Director at Hays.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 51


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THE RECOGNISED STANDARD IN CREDIT MANAGEMENT

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


SOAPBOX CHALLENGE

THE CURATE’S EGG

The case for more national pride and

optimism in a country all-too-often prone

to self-deprecation.

AUTHOR – Glen Bullivant FCICM

I

read recently that all 750 passenger

information screens at an

international airport are in need of

replacement. They were installed in

2012, underwent a period of testing

and have remained switched on to

this day. Not that anyone has seen them, and

even if they had done, they would be none the

wiser, because they have had no passenger

information to display. The terminal building,

budgeted to cost about €2 billion should

have opened in 2011, but a few gremlins

caused a delay. I use the words ‘gremlins’

and ‘delay’ with some trepidation, because

much depends on what you consider to be

a gremlin and indeed how you accurately

define a delay. The official opening in

October 2011 was postponed because of

rather serious safety issues – the fire alarms

and the smoke suppression systems did

not work properly, automatic doors were

incorrectly fitted and it appeared that there

was a considerable amount of faulty wiring.

Oh, and the escalators did not go all the way,

as it were. Fairly big gremlins then. They are

now talking about opening in 2020, perhaps,

and costs have soared to more like €6 billion.

The passenger display screens are not really a

priority right now, I would say.

Now before we get ourselves into a mood

of doom and gloom and ‘here we go again’

regarding major infrastructure projects, I am

not talking about London Heathrow, London

Gatwick or indeed any other airport in our

green and pleasant land. The monumental

calamity is in fact Berlin Brandenburg – yes,

Berlin, which is in Germany as if you did not

know. In many ways, this fact alone makes

the whole sorry saga all that more unreal in

our eyes, because we expect better of them

and less of ourselves. If Crossrail was running

eight years late and three times over budget,

we would no doubt all be shaking our heads,

not in disbelief, more in expectation. Bad

weather causes our trains to stop and planes

to be grounded. But not Germany, surely? I

was in Kassel in Hess last October, and gales

that weekend caused every IC train to be

cancelled and a runway at Frankfurt Airport

to be closed, and the Beast from the East in

March caused as much chaos on mainland

Europe as it did here.

We are good at many things in the UK,

but top of our list of accomplishments is

the ability to talk ourselves down and look

enviously at everybody else. Low growth, poor

productivity, skill shortages, we can make the

list as long as we like. Add to that, we have

been inundated of late with the prospects

of the dire consequences of Brexit. It is not

my intention here to debate Brexit pros and

cons, nor to pass judgement on the wisdom or

otherwise of being in the EU or out of it. Far

from it – all I am trying to say is that whatever

problems we might have, others have them

as well and we forget that in truth there are

many things we are very good at, not least of

which, by the way, is the credit management

profession. I am often asked if I am a glass half

full or a glass half empty person – optimist

or pessimist, I suppose – and my response

is always the same. Half full or half empty

is immaterial because the glass is always

refillable. Anything in life is like the curate’s

egg, part good, part not so good but if we take

a positive view of our capabilities and what

we can achieve, it soon becomes clear that

we are very often much better than we think

we are. The CICMQ Accreditation focuses on

the good, leads to the elimination of the not

so good and raises the credit function to the

level it deserves.

It is not rocket science, nor is it beyond us.

Just think what our Victorian engineers and

builders achieved – they wanted to do it, and

they did it. So can we. Crossrail will happen,

more or less on time and more or less on

budget and so will countless other projects up

and down the land. Berlin Brandenburg will

open and will be a success, but the next time

someone tells you that ‘they’ can, shaking

heads in a sanguine manner, just remind

them that we can too, and we do.

Glen Bullivant FCICM has an interesting

selection of bow ties.

SOAPBOX

challenge

The Recognised Standard / www.cicm.com / June 2018 / PAGE 53


MEET THE PARTNERS

THEY'RE WAITING TO TALK TO YOU...

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

Corporate Partnership with the CICM, contact Marketing on 01780 727273.

Hays Credit Management is the award winning national specialist

division of Hays Recruitment, dedicated exclusively to the recruitment

of credit management professionals in the public and private

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

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

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

www.hays.co.uk

HighRadius is the leading provider of Integrated

Receivables solutions for automating credit, collections,

cash allocation, deductions and eBilling operations.

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

(SaaS) or as SAP-certified Accelerators for SAP

Finance Receivables Management. With a track record

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

and increasing operational efficiency, HighRadius

solutions help teams achieve payback within a year.

www.highradius.com

We 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

www.bvdinfo.com

Sanders Consulting is a niche consulting firm

specialising in improving Credit Management

Leadership & Performance for our clients.

We provide people and process focussed

pragmatic solutions, consultancy, strategy days and

performance improvement workshops and we

are proud to manage and develop the CICMQ

Programme and the Best Practice Network on

behalf of the CICM. For more information please

contact: enquiries @chrissandersconsulting.com.

www.chrissandersconsulting.com

Key IVR provide a suite of products to

assist companies across Europe with credit

management. The service gives the end-user

the means to make a payment when and

how they choose. Key IVR also provides a

state-of-the-art outbound platform delivering

automated messages by voice and SMS. In a

credit management environment, these services

are used to cost-effectively contact debtors and

connect them back into a contact centre or

automated payment line.

www.keyivr.co.uk

American Express is a globally recognised provider

of payment solutions to the business sector

offering flexible collection capabilities to meet

company cashflow objectives across a range of

industries. Whether you are looking to accelerate

cashflow, create a competitive advantage to drive

business or looking to support your customers

in their growth American Express can tailor a

solution to support your needs.

www.americanexpress.com

Credica are a UK based developer of specialist

Credit and Dispute Management software. We

have been successfully implementing our software

for over 15 years and have delivered significant

ROI for our diverse portfolio of customers. We

provide a highly configurable system which enables

our clients to gain complete control over their

debtors and to easily communicate disputes with

anyone in their organisation.

www.credica.co.uk

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.

www.companywatch.net

The Recognised Standard / www.cicm.com / June 2018 / PAGE 54


Proud supporters

of CICMQ

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.

www.atradiuscollections.com/uk/

Graydon UK provides its clients with Credit

Risk Management and Intelligence information

on over 100 million entities across more than

190 countries. It provides economic, financial and

commercial insights that help its customers

make better decisions. Graydon is owned by

Atradius, a leading European credit insurance

organisation. It offers its seamless service

through a worldwide network of offices and

partners.

www.graydon.co.uk

Rimilia provides award winning Cash Application

& Cash Allocation software products that deliver

industry leading tangible benefits like no other.

Having products that really do what they say

is paramount – add to that a responsive and

friendly team that are focused on new and

ongoing benefit realisation and you have the

foundations for successful long term business

relationships.

www.rimilia.com

Safe’s Credit Control module manages the entire

credit lifecycle, from credit checking through to

cash collection and beyond, providing detailed

analysis of performance. Safe’s single, intuitive and

easy-to-use application seamlessly brings together

the necessary data and tools you require to

achieve your objective of creating a profit centre

culture within your credit control function.

www.safe-financials.co.uk

Dun & Bradstreet grows the most valuable

relationships in business. Whether your customer

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

& Bradstreet delivers the data, analytics and insight

to grow your most profitable relationships and

obtain a global, unified view of your customer

relationships across credit and collections.

www.dnb.co.uk

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.

www.bottomline.com/uk

Data Interconnect provides integrated e-billing

and collection solutions via its document delivery

web portal, WebSend. By providing improved

Customer Experience and Customer Satisfaction,

with enhanced levels of communication between

both parties, we can substantially speed up your

collection processes.

www.datainterconnect.com

DWF is one of the UK’s largest legal businesses

with an award-winning reputation for client service

excellence and effective operational management.

Named by the Financial Times as one of Europe’s

most innovative law firms and independently

ranked first of all top 20 law firms for quality of

legal advice and joint first of all national law firms

for service delivery and responsiveness.

www.dwf.law/recover

Tinubu Square is a trusted source of trade

credit intelligence for credit insurers and for

corporate customers. The company’s B2B

Credit Risk Intelligence solutions include the

Tinubu Risk Management Center, a cloud-based

SaaS platform; the Tinubu Credit Intelligence

service and the Tinubu Risk Analyst advisory

service. Over 250 companies rely on Tinubu

Square to protect their greatest assets: customer

receivables.

www.tinubu.com

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.

www.moorestephens.co.uk

The Recognised Standard

The Recognised Standard / www.cicm.com / June 2018 / PAGE 55


FORTHCOMING EVENTS

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

CICM

EVENTS

7 June

CICM West Midlands Branch

BIRMINGHAM

Annual BBQ

Contact : email westmidlandsbranch@cicm.

com or Kim Delaney-Bowen on T: +44 (0)7581

160 521.

VENUE : The Studio, 7 Cannon Street,

Birmingham, B2 5EP

7 June

CICM West of Scotland and East Scotland

Branches

GLASGOW

Gin Tasting

Contact: Jean Jack: 07985031425 / 0345 213 5325

VENUE: The Good Spirits Company, 23 Bath

Street, Glasgow, G2 1HW

8 June

Branch

LONDON

Fellows' Lunch

Contact: To book, email fellowslunch@cicm.

com

VENUE: House of Commons, Houses of

Parliament, Westminster, London, SW1A 0A

11 June

CICM Northern Ireland Branch

IRELAND

Improve Your Skills In Credit Control (4 CPD )

Contact: Email northernirelandbranch@cicm.

com to secure your place.

VENUE : Ulster American Folk Park, 2 Mellon

Road, Omagh, Co. Tyrone, BT78 5QU

13 June

CICM North East Branch

NEWCASTLE UPON TYNE

Process Automation in Credit

Contact : E: northeastbranch@cicm.com

VENUE : The Corner, Dance City, Temple Street,

Newcastle upon Tyne, NE1 4BR

21 June

CICM Southern Branches

WOKING

Inaugural Credit Day (6 CPD hours)

Contact : To reserve your place, please email

thamesvalleybranch@cicm.com

VENUE : HG Wells Conference & Events Centre

Church Street East, Woking, GU21 6HJ

26 June

CICM Education Conference 2018

BIRMINGHAM

Cultivating an agile Credit and Collections

team

Contact : Becki Sharpe: events@cicm.com

VENUE : Birmingham Chamber of Commerce

75 Harborne Road, Birmingham, B15 3DH

30 June

CICM Sheffield Branch

WHERE

History Tour of Kelham Island, Start: 12 noon

Finish: about 15:00

Contact : sheffieldanddistrictbranch@cicm.com

VENUE : Shalesmoor Tram Stop, Hillsborough

route (2 stops past University), Sheffield, S3 8UL

TRAINING

DAYS

14 June

INVOICING AND RECEIPTING

VENUE : London

12 July

INSOLVENCY AND BANKRUPTCY

VENUE : London

OTHER EVENTS

5 June

Forums International –

STRATFORD UPON AVON

Senior Management Credit Forum (SMF)

Contact : For more information email

smf@forumsinternational.co.uk

VENUE : Stratford Manor, Stratford Upon Avon

5 June

ICTF Webinar

ONLINE

How to Measure, Improve and Optimize Credit

Department Performance

Contact : Email: info@ictfworld.org

6 June

Experian Credit Forum

LONDON

BPF Polymers & Comp

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

6 June

Experian Credit Forum

STRATFORD UPON AVON

Senior Management Forum (SMF)

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Stratford Manor, Stratford Upon Avon

8 June

Experian Credit Forum

LONDON

BPF Polymers & Comp.

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Cardinal Place, Experian London

8 June

Experian Credit Forum

LONDON

Recruitment (APSCo)

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Cardinal Place, Experian London

12 June

Forums International

STRATFORD UPON AVON

Pharmaceuticals & Medical Devices Credit Forum

(PMF)

Contact : For more information email

pmf@forumsinternational.co.uk

VENUE : Stratford Manor, Stratford Upon Avon

13 June

Experian Credit Forum

STRATFORD UPON AVON

Pharmaceuticals Forum

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Stratford Manor, Stratford Upon Avon

14/15 June

Forums International

PORTUGAL

International Telecoms Risk Forum (ITRF)

Contact : For more information email:

itrf@forumsinternational.co.uk

VENUE : Tivoli, Lisbon, Portugal

14 June

Experian Credit Forum

DUBLIN

FMCG & Oil/Fuelcard Ireland

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Experian Dublin,

14 June

ICTF Webinar:

ONLINE

Credit Insurance: the Good, the Bad and the Ugly

Contact : Email: info@ictfworld.org

15 June

Experian Credit Forum

DUBLIN

FMCG Ireland

Contact : Please contact Brent.cumming@

experian.com on 07885 675 092 if you would like

further details.

VENUE : Newenham House, Northern Cross,

Malahide Road, Dublin 17, Ireland

26 June

CTF Webinar:

ONLINE

IBest Practices in Business to Business Debt

Collections

Contact : Email: info@ictfworld.org

The Recognised Standard / www.cicm.com / June 2018 / PAGE 56


View our digital version online at www.cicm.com

Log on to the Members’ area, and click on the tab labelled

Credit Management magazine’

Just another great reason to be a member

Credit Management is distributed to the entire UK and international

CICM membership, as well as additional subscribers

The Recognised Standard

www.cicm.com The | Recognised +44 (0)1780 Standard / www.cicm.com 722901 / June 2018 | / editorial@cicm.com

PAGE 57


CALENDAR

The rise and rise of

Peer-to-Peer alternative

finance. Page 13

The story behind the

collapse of Toys R Us.

Page 36

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

CM December 2017.indd 1 21/11/2017 13:41

Sean Feast speaks to Lesley

Batchelor OBE, Director

General of the Institute of

Export Page 14

Are commercial collectors

disadvantaged through the

lack of a single regulator?

Page 42

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

MANAGERS'

INDEX

2011-2016

CM Jan/Feb 2018.indd 1 22/01/2018 12:03

MARCH 2018 £12.00

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

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

Winners of the

CICM British

Credit Awards

2018

CM March 2018.indd 1 21/02/2018 13:56

How AI is challenging

our ethical code.

Page 17

The state of the credit

management nation.

Page 34

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

CM April 2018.indd 1 21/03/2018 11:10

The role of the new

Data Protection Bill.

Page 13

Why is Supply Chain

Finance so popular?

Page 14

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

CM May 2018.indd 1 24/04/2018 11:21

New CICM members

The Institute welcomes new members who have recently joined

MEMBER

ASSOCIATE

Miguel De Torres Escudero

Matthew Hirst

Bernard Kennedy

Kieron Mcgrath

John Mckenna

Paul Rowland

Richard Banister

Sharon Craven

Jason Edens

Aisling Millar

Kenny Sampson-Hendy

AFFILIATE

Gary Auckland

David Barker

Karen Begley

Fay Bowie

Amy Carlton

Vimal Chauhan

Colin Churchward

Hollie Davies

Bonnie Fowler

Jill Galbraith

Matthew Goddard

Zelda Hargreaves

Jill King

Nicola Mathew

Nicola Mitchell

Lesley Richardson

Neil Woollacott

STUDYING MEMBERS

Sameera Akthar

Joshua Albright

Samuel Austin

Oliver Baddeley

Adam Bebbington

Sondeep Bedi

Gregory Boynton

Lee Burn

Stuart Butcher

Holly Chugg Jones

Claudia Clements

Laurie Cooper

Katherine Cornell

David Dearden

Joseph Dennis

Carole Derbyshire

Shirley Exton

Annunziata Flaminio

Joe Fowler

John Gill

Amanda Glover

Kayleigh Gray

Samuel Griffin

Amanda Habberfield

Mark Holland

Emma Hughes

Liam Jarrett

Bethany Jennings

Jake Jeremy

Rebecca Jones

Sarah Kane

Gayatri Kanwal

William Knights

Kwasi Koram

Kim Lasbury

Steve Lawton

David Lemon

Zahid Malik

Samantha Mander

Jacqueline Maya

Nick Michael

Henna Naushahi

Magda Nwamuo

Ben O'Donnell

Ayoola Odume

David Owen

Kiah Phillips

Alison Ramsey

Annika Rittershaus

Nan Roberts

Sanjeev Saini

Josephine Sambula

Gary Sanderson

Anup Sangha

Kate Scott

Jagjit Sidhu

Patrick Stanley

Olaf Suden

Marina Sulik

Natalie Suter

Paul Tompkins

Ana Vieira De Sousa Martins

April Watson

Donna Williams

Catherine Wood

Azhar Zaman

CM

The magazine for

consumer and

commercial credit

professionals

CM

CREDIT MANAGEMENT

DECEMBER 2017 £12.00

INSIDE

2018 DESKTOP

Face to Face

Sean Feast speaks

to Business Minister

Margot James

CM

CREDIT MANAGEMENT

JANUARY/FEBRUARY 2018 £12.00

Tough Call

A day in the life of

a debt collector

INSIDE

CREDIT

CREDIT MANAGEMENT

Chain Reaction

The cost of being in

– and out – of debt

THE CICM'S HIGHLY ACCLAIMED MAGAZINE

INSIDE

CM

CREDIT MANAGEMENT

APRIL 2018 £12.00

Barrel Role

How the UK wine industry

is finding cash to grow

CM

CREDIT MANAGEMENT

MAY 2018 £12.00

Best Foot Forward

The importance of

volunteering and CSR

SPECIAL

FEATURES

IN DEPTH

INTERVIEWS

ASK THE

EXPERTS

GLOBAL

NEWS

INTERNATIONAL

TRADE

CURRENCY

EXCHANGE

HR

MATTERS

MOBILE DIGITAL

EDITION

THE LEADING JOURNAL FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS

TO SUBSCRIBE CONTACT: T: 01780 722903 E: ANGELA.COOPER@CICM.COM

The Recognised Standard / www.cicm.com / June 2018 / PAGE 58


BRANCH NEWS

GDPR Readiness

CICM Sheffield Branch

THERE was a full house of

members and guests at

the Sheffield branch event

‘GDPR Are You Ready?’

held at the Mercure Hotel

Sheffield Parkway.

After networking and refreshments,

Vice Chair, Simon Johnson welcomed Kate

Robbins, Solicitor with the Data Protection,

Political and Regulatory Affairs team at

EON Energy Solutions, who took us through

an essential awareness update on the new

Regulation which although made in 2016

came into force on 25 May.

After a brief understanding of the

background to the new regulation and a

New Word/Old World comparison of key

changes, it was time to look at some of

the existing ‘Old World’ reported cases to

illustrate how breaches had been dealt

with under the current legislation, and

what this could mean under the ‘New’. The

audience were soon in separate teams for

an interactive round of ‘Match the Crime

with the Fine!’

Kate next addressed how the new

Regulation would impact the role of the

credit manager and that it wasn’t just

about strict reporting of loss and theft of

data, but also unauthorised access and the

availability of data you keep.

The meeting was closed by Kate

explaining how large businesses such as

EON had prepared for the changes as well

as pointing members and guests to some

useful resources beyond the ICO website,

such as the European Union Agency

for Network and Information Security

(ENISA). After a short question and answer

session there was a quick overview of the

forthcoming branch meetings, before

the meeting was closed with a show of

appreciation for our guest presenter, Kate

Robbins.

WE WANT

YOUR NEWS!

Get in touch with Andrew Morris by emailing

andrew.morris@cicm.com with your branch

news and event reports. Please only send up

to 400 words and any images need to be high

resolution to be printable, so 1MB plus.

60SECONDS

WITH

Full name: Sean Kelly.

Current job title: DX Group, Credit Manager.

Current company name: DX Network Services Ltd.

Number of years in credit management: 20.

Number of years in current role: Seven.

How did you get into credit management?

I was given an opportunity by Howden Joinery

to be a credit controller and it was the best

decision I ever made.

What is the best thing about where you work?

The services we offer to customers. We offer

products and services that actually make

our customers’ lives easier. We’ve had clients

who have struggled to find a logistics partner

that can meet their, often complex, needs. For

example, if a business needs to deliver private

and confidential documents such as contracts,

the normal mail services aren’t suitable and can

put the client at risk. However, our DX Secure

service is the perfect answer. Documents reach

their destination on time and with our extra

security layers to avert unnecessary risks.

When you are genuinely able to work alongside

a partner or client and give them a service

they’re really in need of, the sense of fulfilment

is huge.

What motivates you?

My team. I love having the opportunity to help

individuals grow within the credit management

environment and to build a successful team at

DX.

What skill do you think has helped you most in

your credit career so far?

Having the ability to listen and understand

what a customer really needs is essential.

Name three people you would invite to a dinner

party and why?

1. My wife as she is very supportive

2. Richard Branson as I have a whole load of

questions I would love to ask him

3. Mark Cavendish as he’s a real character and

I’m a huge cycling fan.

What is your favourite pastime/relaxation

activity?

Whilst it isn’t exactly relaxing, I love running

and cycling. I’ve done 13 marathons and an

Ironman – with more on the horizon.

What is the best/worst quality in a leader?

The best quality in a leader is one that can keep

a team focused on the objective.

Who is your business or personal hero?

Richard Branson.

What can't you live without?

My wife and my daughter…and ketchup.

What’s been your most rewarding moment in

your credit career?

I recently won an internal DX award for best

contribution to cash performance. My team did

a fantastic job in reducing our cash collection

time from 40 days to 23 days – an amazing

achievement.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 59


TAKE CONTROL

OF YOUR CREDIT

CAREER

HEAD OF COLLECTIONS

LEAD, TRANSITION AND DELIVER

Belfast, up to £65,000

A head of collections is required to lead a team of

experienced credit professionals within a global law firm

and be tasked with delivering a high quality collections

service to local office CFOs. You will work closely with

senior management to scope and transition further

collections work to the Belfast centre and work with

global partners and clients on a regular basis. As a

manager, you will provide clear and engaging strategies

to your team to ensure delivery of collections targets and

KPIs on an ongoing basis.

Ref: 3310714

Contact Nicola McCallum on 028 9044 6911

or email nicola.mccallum@hays.com

STAND ALONE CREDIT CONTROLLER

LEAD THE CREDIT FUNCTION

Birmingham, £25,000-£30,000 + 10% bonus

A marketing and media company based in Birmingham

city centre requires a stand alone credit controller to

join its team. Reporting directly into the Group Financial

Director, you will be fully responsible for the Credit

function and sales ledger. This is a fantastic organisation

that truly believe in a work hard play hard mentality and

is a great opportunity for an aspiring credit professional.

In return, you will work in a trendy office that includes a

pool table and fully stocked bar.

Ref: 3311685

Contact Peter Kidd on 0121 212 3301

or email peter.kidd@hays.com

DEBT RECOVERY OFFICER

IMPROVE DELIVERY AND PROCESSES

London, up to £36,000

An exciting opportunity has arisen for a debt recovery

officer to recover client contributions due towards the

cost of adult social care, provided by the council at home

and in a residential setting. You will assist the Income

Collection Manager in increasing collection of arrears and

current charges, improving collection rate and providing

administrative and practical support in the debt recovery

process. Good knowledge of income collection and debt

recovery within local authorities are essential. Experience

in the use of debt recovery systems and previous use of

document management system are highly desirable.

Ref: 3300992

Contact Soulyn Marouf on 020 7259 8744

or email soulyn.marouf@hays.com

ACCOUNTS RECEIVABLE CLERK

TAKE CONTROL OF PROCESSES

London, up to £28,000

Servicing customers all over the world and a stable

company domestically, a rare opportunity has arisen

at a leading retailer for a highly motivated individual.

With a strong emphasis on the entire accounts receivable

function, you will look after concession-store based

collection. This role focuses on maximising the profitability

of collections and minimising exposure to risk. Introducing

new processes and procedures, you will encompass

debt collection, query management, invoicing and other

duties in relation to accounts receivable. This is a fantastic

opportunity where you can achieve results and be

rewarded accordingly. Ref: 3296758

Contact Akshay Caussy on 020 3465 0020

or email akshay.caussy@hays.com

The Recognised Standard / www.cicm.com / June 2018 / PAGE 60


CREDIT CONTROLLER

MANAGE YOUR OWN LEDGER

High Wycombe, £23,000-£25,000

A globally renowned retailer is looking for a highly driven

credit controller to join its expanding team. Reporting

into the Credit Manager, you will play a key part in the

efficient running of the Credit Control function. You will

be responsible for your own ledger, from assessing new

applications, to chasing payments and processing through

to final demand letters and legal action. You will be target

motivated, eager to learn and have experience within

credit control.

Ref: 3297962

Contact Emma Ruttle on 01494 419740

or email emma.ruttle@hays.com

SENIOR CREDIT CONTROLLER

JOIN A GLOBAL FIRM

Sheffield, £23,000 + benefits

A great opportunity has arisen for a senior credit

controller to join a well-established, market-leading

company. Your responsibilities will include ensuring

cash collection is achieved and payments obtained

by agreed terms through the maintenance and control

of the sales ledger across the entire EMEA region.

This is an integral role within the team which will have

a detailed development plan in place. Previous credit

control experience and the ability to work towards and

achieve goals are essential. Ideally, you will have linguistic

capability and be a French or Italian speaker with good

self-motivational, organisation and Excel skills.

Ref: 3178916

Contact Daniel Cherry on 0114 273 8775

or email daniel.cherry@hays.com

CREDIT CONTROLLER

SUCCESS THROUGH EXPERTISE

Huntingdon, up to £24,000

This global organisation has experience developing

leading health and fitness professionals with a ledger

of roughly £6 million. This role is vital to the business

and you will look after around 7,000 live accounts. You

will have extensive credit control experience, excellent

attention to detail as well as be a team player looking to

work in a fast-paced, pressured environment. Business to

consumer experience is essential. Excellent opportunities

to develop your skills and progress your career are on

offer at this global organisation. Ref: 3278849

Contact Zara Newman on 01223 361507

or email zara.newman@hays.com

CREDIT CONTROLLER

MAKE A DIFFERENCE

London, £30,000 equivalent

Serving and delivering the finest foods to London’s top

tier restaurants and hotels, a rare temporary opportunity

has become available to join a fast-paced credit team

at year end. With a strong emphasis on aged debt

reduction, this role focuses on maximising returns and

profitability of collections within a short, temporary

contract. With the opportunity for extension, the role

requires an analytical mind preferably within an FMCG

environment. This is a fantastic role to get your teeth

stuck into and make a difference.

Ref: 3273795

Contact Kabir Gulabkhan on 020 3465 0020

or email kabir.gulabkhan@hays.com

This is just a small selection of the many

opportunities we have available for credit

professionals. To find out more email

hayscicm@hays.com or visit us online.

hays.co.uk/creditcontrol

The Recognised Standard / www.cicm.com / June 2018 / PAGE 61


ENFORCEMENT AGENTS

TIME TO PROVE YOUR CONTINUOUS

PROFESSIONAL DEVELOPMENT

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

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

Access the definitive TCG Guidance, fully updated and

endorsed by CICM, HCEOA, LACEF and CEAA to ensure you

cover all important areas. Test yourself anytime, anywhere

and produce a CPD Certificate to prove to a judge that you

have kept up to date when you renew your certificate to

act as an enforcement agent. £53 + VAT. The 60 multiple

choice questions are also perfect if you are preparing for

the TCG qualification required for your first certificate.

CICM runs a one-hour monthly online exam for the Level

2 Award in Taking Control of Goods in many towns and

cities throughout the UK to reduce work downtime. Find a

convenient time before or after work. Results on the day.

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

This is the definitive guide for CPD and to

passing the exam.

Barrie Minney. Chair, Local Authority Civil Enforcement

Forum. Senior Enforcement Agent, Brighton and Hove

City Council

HCEOA are proud to have developed this Best Practice

Guidance for the industry and robust qualifying exam which

can be easily accessed near home or work.

Andrew Wilson. Chair, High Court Enforcement Officer Association & Solicitor

With HCEOA, CEAA and LACEF input, this CPD package provides perfectly balanced guidance and the CICM

Award will be seen as the qualification to study for if you want to become an Enforcement Agent.

James Bond. General Secretary, Civil Enforcement Agents Association

High Court Enforcement

Officers Association

The Recognised Standard / www.cicm.com / June 2018 / PAGE 62

LACEF

The Local Authority

Civil Enforcement Forum


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

ANTI MONEY LAUNDERING

COLLECTIONS LEGAL

CONSULTANCY

THE ONLY AML RESOURCE YOU NEED

SmartSearch

Harman House, Station Road,

Guiseley, Leeds, LS20 8BX

T: 01132387660

F: 0113 238 7669

E: info@smartsearchuk.com

W: www.smartsearchuk.com

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

broad coverage, highly automated flexible technology with an

innovative and intuitive customer interface. Key features include

automatic Worldwide Sanction & PEP checking, Daily Monitoring,

Automated Enhanced Due Diligence and pro-active customer

management. Choose SmartSearch as your benchmark.

COLLECTIONS

Controlaccount PLC

Compass House, Waterside

Hanbury Road, Bromsgrove

B60 4FD

T: 01527 549522 (Sales dept)

E: sales@controlaccount.com

W:www.controlaccount.com

Controlaccount has over 30 years of Credit Management and

Debt Recovery experience, helping National and International

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

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

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

utilising the late payment act to fund collection procedures. Our

trained collectors take into account your need to recover debts,

whilst maintaining your reputation and preserving customer relationships.

If we can’t recover your outstanding debts through our

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

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

credit reporting and corporate monitoring services we are ready

to help you every step of the way.

Atradius Collections Ltd

3 Harbour Drive,

Capital Waterside,

Cardiff Bay, Cardiff, CF10 4WZ

United Kingdom

T: +44 (0)2920 824700

W: www.atradiuscollections.com/uk/

Atradius Collections Ltd is an established specialist in business

to business collections. As the collections division of the Atradius

Crédito y Caución, we have a strong position sharing history,

knowledge and reputation.

Annually handling more than 110,000 cases and recovering

over a billion EUROs in collections at any one time, we deliver

when it comes to collecting outstanding debts. With over 90

years’ experience, we have an in-depth understanding of

the importance of maintaining customer relationships whilst

efficiently and effectively collecting monies owed.

The individual nature of our clients’ customer relationships is

reflected in the customer focus we provide, structuring our

service to meet your specific needs. We work closely with clients

to provide them with a collection strategy that echoes their

business character, trading patterns and budget.

For further information contact: Hans Meijer, UK and Ireland

Country Director (hans.meijer@atradius.com).

Blaser Mills LLP

Rapid House

40 Oxford Road, High Wycombe,

Buckinghamshire. HP11 2EE

T: 01494 478660/478661

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

gpb@blasermills.co.uk

W: www.blasermills.co.uk

Established in 1888, leading multi-disciplinary law firm Blaser

Mills specialises in services for businesses and individuals.

The Firm has particular expertise in Dispute Resolution and

Debt Recovery working with experienced credit managers and

finance directors providing solutions to both contested and

uncontested claims.

Blaser Mills provides an experienced team including CICM

qualified legal representatives and the Firm is cited in the

Legal 500 law directory based on quality of work and strong

client feedback.

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

Amersham, Rickmansworth, Staines-on-Thames.

Lovetts Solicitors

Lovetts, Bramley House, The Guildway, Old Portsmouth

Road, Guildford, Surrey GU3 1LR

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

W: www.lovetts.co.uk

Lovetts has been recovering debts for 30 years! When you

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

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

business debts and any resulting commercial litigation.

We provide:

• Letters Before Action, prompting positive outcomes in more than

80 percent of cases • Overseas Pre-litigation collections with

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

management system ‘CaseManager’

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

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

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

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

successful results...”

STRIPES SOLICITORS LIMITED

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

W: www.stripes-solicitors.co.uk

T: 0161 832 5000

95percent success rate in disputed

litigation cases over several decades

Stripes technical excellence, tenacity and commercial insight has

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

been particularly recommended as a leading law firm by the Legal

500 in the litigious field for representing clients with significant and

complex issues.

Our specialist commercial debt recovery and insolvency team work

with businesses ranging from SMEs to larger PLCs recovering

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

recovering debts within days. We aim to understand your business

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

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

new debtor cases and to generate new legal instructions.

Sanders Consulting Associates Ltd

T: +44(0)1525 720226

E: enquiries@chrissandersconsulting.com

W: www.chrissandersconsulting.com

Sanders Consulting is an independent niche consulting firm

specialising in leadership and performance improvement in all

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

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

in operational credit management, billing, change and business

process improvement. A sought after speaker with cross industry

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

markets, his innovative and enthusiastic approach

delivers pragmatic people and process lead solutions and significant

working capital improvements to clients. Sanders Consulting are

proud to manage CICMQ on behalf of and under the supervision

of the CICM.

COURT ENFORCEMENT SERVICES

Court Enforcement Services

Wayne Whitford – Director

M: +44 (0)7834 748 183

T : +44 (0)1992 663 399

E : wayne@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

High Court Enforcement that will Empower You!

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

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

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

App helps to provide information in real time and transparency,

empowering our clients when they work with us.

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

• Exceptional Recovery Rates

• Individual Client Attention and Tailored Solutions

• Real Time Client Access to Cases

CREDIT INFORMATION

Creditsafe Business Solutions

Bryn House, Caerphilly Business Park, Van Rd,

Caerphilly, CF83 3GG

T: 0292 088 6500.

E: ukinfo@creditsafeuk.com

W: www.creditsafeuk.com

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

intelligence. Creditsafe have helped over 60,000 customers

across Europe and the USA with a range of products which

includes our UK, European and International Company Credit

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

customer and supplier Risk Tracker and our 3D Ledger product

which has captured over 35 million Trade Payment Data

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

companies manage their exposure to risk, make informed

decisions in relation to credit limits whilst looking at how you

can identify gaps within your sales ledger to prioritise collections

and leverage sales.

continues on page 64 >

The Recognised Standard / www.cicm.com / June 2018 / PAGE 63


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

CREDIT INFORMATION

CoCredo Limited

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790 600

E: customerservice@cocredo.com

W: www.cocredo.co.uk

Celebrating 15 years in business, CoCredo’s award winning credit

reporting and monitoring systems have helped to protect and secure

over £27 billion of turnover on behalf of our customers. Our company

data is updated 500,000 per day and ensures customers have the

most current information in the market place. Access to the online

portal is available 365 days a year 24/7 from anywhere in the world.

At CoCredo we aggregate data from a range of leading providers

across the globe so that our customers can view the best available

data in one easy to use report. We also offer customers XML

Integration and D.N.A. Portfolio Management.

From simply looking at a prospect through to acquisition, to

monitoring, we pride ourselves on helping our customers every step of

the way. CICM members receive their first five credit reports for free.

Graydon UK

66 College Road, 2nd Floor,

Hygeia Building, Harrow,

Middlesex, HA1 1BE

T: +44 (0)208 515 1400

E: customerservices@graydon.co.uk

W: www.graydon.co.uk

Graydon UK is a specialist in Credit Risk Management and Intelligence,

providing access to business information on over 100 million entities

across more than 190 countries. Its mission is to convert vast amounts

of data from diverse data sources into invaluable information. Based

on this, it generates economic, financial and commercial insights that

help its customers make better business decisions and ultimately

gain competitive advantage. Graydon is owned by Atradius, a leading

European credit insurance organisation. It offers a comprehensive

network of offices and partners worldwide to ensure a seamless

service.

Credica Ltd

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

T: +44(0)1235 856400

E: info@credica.co.uk

W: www.credica.co.uk

Our highly configurable and extremely cost effective Collections and

Query Management System has been designed with three goals in

mind:

• To improve your cashflow

• To reduce your cost to collect

• To provide meaningful analysis of your business

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

Professionals across the UK and Europe, our system is successfully

providing significant and measurable benefits for our diverse portfolio

of clients. We would love to hear from you if you feel you would benefit

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

Company Watch

Centurion House, 37 Jewry Street,

LONDON. EC3N 2ER

T: +44 (0)20 7043 3300

E: info@companywatch.net

W: www.companywatch.net

Organisations around the world rely on Company Watch’s

industry-leading financial analytics to drive their credit risk

processes. Our financial risk modelling and ability to map medium

to long-term risk as well as short-term credit risk set us apart

from other credit reference agencies.

Quality and rigour run through everything we do, from our unique

method of assessing corporate financial health via our H-Score®,

to developing analytics on our customers’ in-house data.

With the H-Score® predicting almost 90 percent of corporate

insolvencies in advance, it is the risk management tool of choice,

providing actionable intelligence in an uncertain world.

BUREAU VAN DIJK

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

T: +44 (0)20 7549 5000E: bvd@bvdinfo.com

W: www.bvdinfo.com

We offer the most powerful comparable data resource on private

companies. We capture and treat private company information for

better decision making and increased efficiency, so we’re ideally suited

to help credit professionals. Orbis, our global company database has

information on 250 million companies, and offers:

• Standardised financials so you can assess companies globally

• Financial strength metrics using a range of models and including a

qualitative score for when detailed financials aren’t available

• Projected financials

• Extensive corporate structures so you can assess the complete group

– or take the financial stability of the parent into account

Credit Catalyst is a platform where you can combine information from

Orbis with you own knowledge of your customers and get dashboard

views of your portfolio.

Register for your free trial at bvdinfo.com.

CREDIT MANAGEMENT SOFTWARE

Prof. Schumann GmbH

innovative information systems

Weender Landstr. 23, 37130 Göttingen, Germany

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

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

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

management solution for major corporations, as well as insurance,

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

credit and sales managers to call up all the available information

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

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

whose payment behaviour stands out or who have overdue invoices!

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

Additionally, CAM has automated interfaces for connecting to

leading suppliers of company credit data, payment record pools and

commercial credit insurers. The system is characterised by its great

flexibility. We have years of experience in consulting and software

support for accounts receivable management.

Top Service Ltd

2&3 Regents Court, Farmoor Lane, Redditch,

Worcestershire, B98 0SD

T: 0152 750 3990.

E: enquiries@top-service.co.uk

W: www.top-service.co.uk

Top Service is the only credit reference and debt recovery

agency to specialise in the UK construction sector. Top Service

customers benefit from sector specific information, detailed

payment history intelligence and realtime trade references in

addition to standard credit information. There are currently

3,000 construction sector companies subscribing to the service,

ranging from multi-national organisations to small family firms.

The company prides itself on high levels of customer service

and does not tie its customers into restrictive contracts. Top

Service offers a 25 percent discount to all CICM Members as

well as four free credit checks of your choice.

Innovation Software

Innovation Software, Innovation House,

New Road, Rochester, Kent, ME1 1BG.

T: +44 (0)1634 812300

E: jay.inamdar@innovationsoftware.uk.com

W: www.creditforceglobal.com

Innovation Software are the authors of CreditForce, the leading

Collections and Working Capital Management Systems. Our solutions are

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

Law Firms.

Our solutions have optimised Accounts Receivables processes for over

20 years and power Business Intelligence, with functionality to:

• improve cash flow • reduce DSO • control risk

• automate cash allocation • speed up query resolution

• improve customer relationship management

• automatically generate intelligent workflows and tasks

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

Fully integrated with over 40 leading ERP and Accounting systems,

including SAP, Oracle, Microsoft Dynamics and product partners with

Thomson Reuters Elite we can deliver on either your own computing

infrastructure or through Microsoft Azure’s award winning and secure

cloud service.CreditForce remains the choice solution for world class

businesses.

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

www.creditforceglobal.com for more information.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 64


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

FINANCIAL PR

Safe Computing Limited

20, Freeschool Lane, Leicester, LE1 4FY

T: 0844 583 2134

E: info@safecomputing.co.uk

W: www.safe-financials.co.uk

Designed to manage your customer credit accounts effectively,

Safe Credit Control enables your credit management team to:

• Improve cash flow

• Reduce debtor days

• Increase customer service

• Cut the cost of cash collection

• Eliminate manual processes

• Speed up the query resolution process

Safe’s unique approach is centred on changing the perception

of the credit control function from a series of reactive processes

to proactive ones. Credit controllers are traditionally regarded

as an essential element in business to chase late payments

and respond to customer queries. Safe Credit Control has taken

the concepts of customer relationship management (CRM) and

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

service orientated team of customer service representatives.

STA International

3rd Floor, Colman House, King Street Maidstone , ME14 1DN

T: +44(0)844 324 0660.

E: enquiries@staonline.com

W: www.stainternational.com

GETTING BUSINESS PAID

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

credit control and tracing supplier. ISO9001 quality accredited, and

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

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

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

Debts Online” gives you transparent access to our collection success

and detailed management information, keeping you in control of your

account. We look forward to getting your business paid.

Tinubu Square UK

Holland House,

4 Bury Street, London . EC3A 5AW

T: +44 (0)207 469 2577 /

E: uksales@tinubu.com W: www.tinubu.com

Tinubu Square offers companies across the world the appropriate

SaaS platform solutions and services to significantly reduce their

exposure to risk, and their financial, operational and technical

costs. Easy to implement, our solutions provide an accurate

picture of a customers’ financial health through the entire

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

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

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

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

New York, Montreal and Singapore. Some of the largest

multinational corporations, credit insurers and receivables

financing organizations depend on Tinubu to provide them with the

means to drive greater trade credit risk efficiency.

Data Interconnect Ltd

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

Oxfordshire. SN7 7BP

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

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

Data Interconnect provides integrated e-billing and collection

solutions via its document delivery web portal, WebSend. By

providing improved Customer Experience and Customer Satisfaction,

with enhanced levels of communication between both parties, we

can substantially speed up your collection processes.

Proud supporters

of CICMQ

Rimilia

Corbett House, Westonhall Road, Bromsgrove, B60 4AL

T: +44 (0)1527 872123 E: enquiries@rimilia.com

W: www.rimilia.com

Rimilia excels in the design, development and implementation of

Intelligent Finance Solutions that drive value from existing manually

intensive finance processes associated with accounts receivable,

cash allocation, credit management, bank reconciliation and cash

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

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

accounting, our approach to business revolves around integrity

and enabling organisations to unlock their full potential though

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

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

it supplies.

HighRadius

T: +44 7399 406889

E: gwyn.roberts@highradius.com

W: www.highradius.com

HighRadius is the leading provider of Integrated Receivables

solutions for automating receivables and payment functions such

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

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

(SaaS). HighRadius also offers SAP-certified Accelerators

for SAP S/4HANA Finance Receivables Management, enabling

large enterprises to maximize the value of their SAP investments.

HighRadius Integrated Receivables solutions have a proven track

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

increasing operation efficiency, enabling companies to achieve an

ROI in less than a year.

DATA AND ANALYTICS

Dun & Bradstreet

Marlow International, Parkway Marlow

Buckinghamshire SL7 1AJ

Telephone: (0800) 001-234 Website: www.dnb.co.uk

Dun & Bradstreet grows the most valuable relationships in business.

By uncovering truth and meaning from data, we connect our

customers with the prospects, suppliers, clients and partners that

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

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

data, analytics and insight to grow your most profitable relationships

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

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

relationships across credit and collections.

Gravity London

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

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

W: www.gravitylondon.com

Gravity is an award winning full service PR and advertising

business that is regularly benchmarked as being one of the best

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

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

brands working on often challenging briefs. As the partner agency

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

and the Chartered Institute of Credit Management since 2006, it

understands the key issues affecting the credit industry and what

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

beyond.

INSOLVENCY

Moore Stephens

Moore Stephens LLP,

150 Aldersgate Street,

London EC1A 4AB

T: +44 (0) 20 7334 9191

E: Brendan.clarkson@moorestephens.com

W: www.moorestephens.co.uk

Moore Stephens is a top ten accounting and advisory network, with

offices throughout the UK.

Our clients range from individuals and entrepreneurs, through

to large organisations and complex international businesses. We

partner with them, supporting their aspirations and helping them

to thrive in a challenging world.

Our national creditor services team has expert insights in debt

recovery which, combined with their unparalleled industry and

sector knowledge, enables them to assist creditors in recovering

outstanding debts.

LEGAL MATTERS

DWF LLP

David Scottow Senior Director

D +44 113 261 6169 M +44 7833 092628

E: David.Scottow@dwf.law W: www.dwf.law/recover

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

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

for client service excellence and effective operational management.

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

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

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

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

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

enforcement, insolvency proceedings and ancillary services including

tracing, process serving, debtor profiling and consultancy.

continues on page 66 >

The Recognised Standard / www.cicm.com / June 2018 / PAGE 65


Cr£ditWho?

CICM Directory of Services

FOR INFORMATION,

OPTIONS AND PRICING

PLEASE EMAIL:

anthony.cave@cabbell.co.uk

PAYMENT SOLUTIONS

American Express

76 Buckingham Palace Road,

London

SW1W 9TQ

T: +44 (0)1273 696933

W: www.americanexpress.com

American Express is working in partnership with the CICM and is

a globally recognised provider of payment solutions to businesses.

Specialising in providing flexible collection capabilities to drive a

number of company objectives including:

•Accelerate cashflow

•Improved DSO

•Offer extended terms to customers

•Provide an additional line of bank independent credit to drive

growth

•Reduce risk

•Create competitive advantage with your customers

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

American Express is working with credit managers to drive growth

within businesses of all sectors. By creating an additional lever

to help support supplier/client relationships American Express is

proud to be an innovator in the business payments space.

Bottomline Technologies

115 Chatham Street

Reading

Berks RG1 7JX | UK

T: 0870 081 8250

E: emea-info@bottomline.com

W: www.bottomline.com/uk

Bottomline Technologies (NASDAQ: EPAY) helps businesses pay

and get paid. Businesses and banks rely on Bottomline for domestic

and international payments, effective cash management tools,

automated workflows for payment processing and bill review and

state of the art fraud detection, behavioural analytics and regulatory

compliance. Businesses around the world depend on Bottomline

solutions to help them pay and get paid, including some

of the world’s largest systemic banks, private and publicly traded

companies and Insurers. Every day, we help our customers by

making complex business payments simple, secure and seamless.

PROFESSIONAL BODIES

Chartered Institute of

Credit Management (CICM)

The Water Mill, Station Road, South Luffenham,

OAKHAM, LE15 8NB

T: 01780 722910 E: info@cicm.com

W: www.cicm.com

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

largest credit management organisation. The trusted leader

in expertise for all credit matters, it represents the profession

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

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

accredited by Ofqual and it offers a comprehensive

range of services and bespoke solutions for the credit professional

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

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

CICMos (CICM Online Services) WWW.CICM.COM

T: 01780 722 907. E: training@cicm.com

W: www.cicmos.com

CICMOS has been designed to help busy credit managers by

providing them with a suite of online tools to support and

quickly develop their teams. The virtual learning centre is an

open platform system, accessed via the website, which is

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

which means the system can be tailored to suit specific

requirements and time constraints. This wide ranging system

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

and can be accessed securely via the CICMOS website for a

low annual subscription.

RECRUITMENT

PORTFOLIO

CREDIT CONTROL

Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Hays Credit Management is working in partnership with the CICM

and specialise in placing experts into credit control jobs and

credit management jobs. Hays understands the demands of this

challenging environment and the skills required to thrive within

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

contract based opportunities to find your ideal role. Our candidate

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

interviews and a credit control skills test developed exclusively

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

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

recruitment issues.

ATTENTION

PRODUCT

& SERVICE

PROVIDERS

You can connect with them

all now by having a listing in

CreditWho.

FOR JUST

£1,247 + VAT per annum:

- your business will be listed in

Credit Management magazine,

which goes out to all our

members and subscribers and

has an estimated readership of

over 25,000.

TO BOOK YOUR

LISTING IN CREDITWHO CONTACT:

ANTHONY CAVE ON: 020 3603 7934

Portfolio Credit Control

Portfolio Credit Control, New Liverpool House,

15 Eldon Street, London, EC2M 7LD

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

Portfolio Credit Control, solely specialises in the recruitment of

permanent, temporary and contract Credit Control, Accounts

Receivable and Collections staff. Part of an award winning

recruiter we speak to and meet credit controllers all day everyday

understanding their skills and backgrounds to provide you with tried

and tested credit control professionals. We have achieved enormous

growth because we offer a uniquely specialist approach to our

clients, with a commitment to service delivery that exceeds your

expectations every single time.

The Recognised Standard / www.cicm.com / June 2018 / PAGE 66


FROM THE

ARCHIVE

Credit Management

magazine from exactly

30 years ago.

88

19

In March of 1988 the SDP and the Liberals combined to form

the Liberal Democrats. Margaret Thatcher became the longest

serving Prime Minister of the century, and Rowan Atkinson

launched the Comic Relief charity appeal. Some 80,000 people

attended a concert at Wembley Stadium in honour of Nelson

Mandela, the South African anti-apartheid campaigner who

turned 70 that day and had been imprisoned since 1964.

THE ETHICS OF MODERN DEBT

Tactics deployed by debt collectors have

often been challenged – and continue today

under the watchful eye of the Financial

Conduct Authority.

HALTING THE TIDE

Even 30 years ago the work of credit

reference agencies was being hampered

by legislation, and this is still true now

including restrictions on access to the

Electoral Register.

THE ROLE OF THE MONOPOLIES

AND MERGERS COMMISSION

Monopolies and mergers are a major

ethical consideration in the business world,

especially now with the likes of Asda and

Sainsbury’s and Kraft and Cadbury.


Our mission - Your trust

No jargon,

we give you

our word.

Hoist Finance is a European

leader in the acquisition

and management of

non- performing loans.

We take a simple approach

to business, stripping out

the jargon to provide

payment plans that are

realistic, appropriate and

fair, and bringing our

customers one step closer

to becoming debt free.

UKSales@Hoistfinance.com

Hoistfinance.com

Authorised and regulated by the Financial Conduct Authority for matters governed by the Consumer Credit Act 1974 (amended 2006).

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