CM December DECEMBER 2018




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<strong>CM</strong><br />

<strong>DECEMBER</strong> <strong>2018</strong> £12.00<br />



INSIDE<br />

2019 DESKTOP<br />


Consolidated<br />

Thinking<br />

Is it time for the debt<br />

advice charities to<br />

merge?<br />

Why Crown preference<br />

is causing such a stir.<br />

Page 19<br />

What to do with your<br />

leftover turkey!<br />

Page 52

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4<br />



<strong>DECEMBER</strong> <strong>2018</strong><br />

www.cicm.com<br />


20<br />


LAUREN CARTER FCI<strong>CM</strong><br />

16 – INTERVIEW<br />

Derek Usher discusses the world of debt<br />

purchase, FCA approval and a love of<br />

cricket.<br />

19 – OPINION<br />

A closer look at the restoration of Crown<br />

preference in insolvency.<br />

30 – COUNTRY FOCUS<br />

The finer details of doing business<br />

in Ireland.<br />

34 – FESTIVE APPS<br />

Some handy shortcuts for organising<br />

present shopping.<br />


Credit Managers are earning more than<br />

ever before, especially outside London.<br />

52 – MAKE YOUR CASE<br />

Regular contributors answer the most<br />

pressing of festive dilemmas.<br />

30<br />



CI<strong>CM</strong> GOVERNANCE<br />

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

area, and click on the tab labelled ‘Credit Management magazine’<br />

Credit Management is distributed to the entire UK and international CI<strong>CM</strong><br />

membership, as well as additional subscribers<br />

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

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

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

trade mark of the Chartered Institute of Credit Management.<br />

Any articles published relating to English law will differ from laws in Scotland and Wales.<br />

38<br />



President Stephen Baister FCI<strong>CM</strong> / Chief Executive Philip King FCI<strong>CM</strong> CdipAF MBA<br />

Executive Board Pete Whitmore FCI<strong>CM</strong> – Chair / Debbie Nolan FCI<strong>CM</strong>(Grad) – Vice Chair<br />

Glen Bullivant FCI<strong>CM</strong> – Treasurer / Larry Coltman FCI<strong>CM</strong>, Victoria Herd FCI<strong>CM</strong>(Grad), Bryony Pettifor FCI<strong>CM</strong>(Grad)<br />

Advisory Council Sarah Aldridge FCI<strong>CM</strong>(Grad) / Laurie Beagle FCI<strong>CM</strong> / Kim Delaney-Bowen MCI<strong>CM</strong> / Glen Bullivant FCI<strong>CM</strong><br />

Lauren Carter FCI<strong>CM</strong> / Brendan Clarkson FCI<strong>CM</strong> / Larry Coltman FCI<strong>CM</strong> / Victoria Herd FCI<strong>CM</strong>(Grad) / Philip Holbrough MCI<strong>CM</strong><br />

Laural Jefferies MCI<strong>CM</strong> / Diana Keeling FCI<strong>CM</strong> / Martin Kirby FCI<strong>CM</strong> / Christelle Madie FCI<strong>CM</strong><br />

Julie-Anne Moody-Webster MCI<strong>CM</strong> / Debbie Nolan FCI<strong>CM</strong>(Grad) / Bryony Pettifor FCI<strong>CM</strong>(Grad) /Allan Poole MCI<strong>CM</strong><br />

Phil Rice FCI<strong>CM</strong> / Chris Sanders FCI<strong>CM</strong> / Paul Taylor MCI<strong>CM</strong> / Pete Whitmore FCI<strong>CM</strong><br />


Credit Management <strong>December</strong> 1972<br />

included an article on the computer and<br />

how it could aid best practice.<br />

Publisher<br />

Chartered Institute of Credit Management<br />

The Water Mill, Station Road, South Luffenham<br />

OAKHAM, LE15 8NB<br />

Telephone: 01780 722910<br />

Email: editorial@cicm.com<br />

Website: www.cicm.com<br />

<strong>CM</strong>M: www.creditmanagement.org.uk<br />

Managing Editor<br />

Sean Feast FCI<strong>CM</strong><br />

Deputy Editor<br />

Alex Simmons<br />

Art Editor<br />

Andrew Morris<br />

Telephone: 01780 722910<br />

Email: andrew.morris@cicm.com<br />

Editorial Team<br />

Imogen Hart and Iona Yadallee<br />

Advertising<br />

Grace Ghattas<br />

Telephone: 020 3603 7946<br />

Email: grace@cabbell.co.uk<br />

Printers<br />

Stephens & George Print Group<br />

<strong>2018</strong> subscriptions<br />

UK: £90 per annum<br />

International: £115 per annum<br />

Single copies: £12.00<br />

ISSN 0265-2099<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 3


Overcoming a<br />

herd mentality<br />

Sean Feast FCI<strong>CM</strong><br />

Managing Editor<br />

I<br />

love elephants. Did you know that<br />

an elephant cannot run uphill,<br />

spends up to 18 hours a day eating,<br />

and as a result can generate about<br />

a tonne of manure every week?<br />

The biggest elephants can grow up<br />

to three metres tall and weigh an incredible<br />

7,500kg, making them the world’s largest<br />

land mammal. These guys are big, so big<br />

that if one wandered into the room, I think<br />

you’d notice. Which makes me wonder why<br />

it took so long for the debt advice sector to<br />

spot such a little fella.<br />

The elephant I am referring to in this<br />

case is, of course, the issue of funding.<br />

For some time now, there have been<br />

mumblings off stage from certain creditors<br />

and the collections industry as to the<br />

efficiency of the debt advice sector, and<br />

specifically those firms (both charitable<br />

and otherwise) that benefit from the Fair<br />

Share payments. Peter Wyman too, in his<br />

recent report, made specific mention of the<br />

need for the debt advice sector to achieve<br />

greater efficiencies, and to do so quickly.<br />

Whether Fair Share is ‘fair’ or not, or is<br />

paid by those creditors who truly benefit,<br />

is a separate debate; what those current<br />

contributors want to know, is whether their<br />

contributions are being spent delivering<br />

front-line services, or being lost in an evergrowing<br />

overhead of people and property.<br />

The creditors’ argument is that debt<br />

advisors fundamentally deliver the same<br />

‘product’, and why do we need three or four<br />

major players all doing the same thing? The<br />

debt advisors, on the other hand, argue<br />

with some justification that their services<br />

are different, and complementary rather<br />

than competitive.<br />

Now sadly I can’t tell you StepChange’s<br />

position (my entreaties unfortunately<br />

went unanswered so I assume they must<br />

be busy), but of those organisations that<br />

did respond, it’s clear that future funding<br />

is a major concern, and everyone has a<br />

view on what this could look like. Reading<br />

between the lines, they also seem very<br />

aware of the need to justify why separate<br />

organisations are preferred to one larger,<br />

single entity, as has happened in other<br />

sectors.<br />

For the avoidance of any doubt, I am<br />

not knocking the work that debt advisors<br />

do in what are clearly very difficult and<br />

challenging circumstances. (I have a<br />

friend who probably owes his life to the<br />

support he received from one debt advisor<br />

in particular – ironically the one who<br />

wouldn’t come back to me.) And demand<br />

for their services, as we know, is only<br />

going to increase.<br />

But as I have learned from personal<br />

experience, charities who work in similar<br />

areas tend to jealously guard their right to<br />

be there (think of The British Legion versus<br />

Help for Heroes), and that is not always<br />

in their beneficiaries’ best interests. Ego<br />

can do funny things to people. What I also<br />

know is that there are only so many times<br />

that the pitcher can go to the well, and the<br />

more pitchers there are, the more quickly<br />

that well will dry up.<br />

The elephant I am<br />

referring to in this case<br />

is, of course, the issue of<br />

funding.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 4




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The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 5

<strong>CM</strong>NEWS<br />

A round-up of news stories from the<br />

world of consumer and commercial credit<br />

Written by – Sean Feast and Alex Simmons<br />

Companies House agrees<br />

to act on Short-Firm Fraud<br />

Philip King FCI<strong>CM</strong><br />

Chief Executive of the CI<strong>CM</strong><br />

“At this time of year<br />

we see a number of<br />

fake companies being<br />

set up solely with the<br />

purpose of acquiring<br />

IT and electronics<br />

goods by deception.”<br />

PHILIP King, the Chief Executive of<br />

the CI<strong>CM</strong>, and James Campbell,<br />

Secretary of The European Freight<br />

Transport Association (EFTA)<br />

have succeeded in their representations<br />

to Companies House to challenge the<br />

alarming increase in short-firm fraud.<br />

Companies House will take steps to<br />

display a more prominent warning on its<br />

website regarding the efficacy and accuracy<br />

of the information it holds, confirming that<br />

such information has neither been verified<br />

or validated. Companies House has also<br />

agreed to create a dedicated email through<br />

which businesses can raise concerns over<br />

bogus accounts leintel@companieshouse.<br />

gov.uk.<br />

Philip King says the response from<br />

Companies House executives was both<br />

positive and encouraging: “Credit Managers<br />

often rely on information from Companies<br />

House to make important business<br />

decisions, but need to be aware that such<br />

information can, in fact, be fraudulent.<br />

Credit Reference Agencies, similarly, use<br />

information at Companies House to inform<br />

their decision making, so it is in everyone’s<br />

interest to ensure this information is<br />

accurate.”<br />

Short-firm fraud happens when<br />

criminals set up an apparently legitimate<br />

business intending to defraud its suppliers<br />

and customers. Bogus accounts filed at<br />

Companies House make the business look<br />

substantial.<br />

“Before Christmas, new orders and<br />

new business opportunities tend to<br />

increase. Fraudsters take advantage of<br />

these busy periods, and natural ‘spikes’ in<br />

activity, to commit crime. Only by sticking<br />

to best-practice credit management, sharing<br />

knowledge of risk with your employees in<br />

what to look for, and being sure that you<br />

‘know your customer’, can fraud be avoided.”<br />

Philip says that some sectors are more at<br />

risk than others: “At this time of year we see<br />

a number of fake companies being set up<br />

solely with the purpose of acquiring IT and<br />

electronics goods by deception,” he says.<br />

“Anyone witnessing a sudden and<br />

unexpected increase in orders, or the<br />

emergence of a new customer with whom<br />

they have not previously done business,<br />

should be alive to the potential for fraud,” he<br />

adds.<br />

gov.uk/government/organisations/<br />

companies-house<br />

THE Financial Conduct Authority (FCA)<br />

has confirmed plans to extend access to<br />

the Financial Ombudsman Service (the<br />

Ombudsman Service) to more SMEs.<br />

The changes will mean that SMEs with<br />

an annual turnover below £6.5 million and<br />

fewer than 50 employees, or an annual<br />

balance sheet below £5 million, will now<br />

be able to refer unresolved complaints to<br />

the Ombudsman Service. Under the ‘nearfinal’<br />

rules now published, around 210,000<br />

additional UK SMEs will be eligible to<br />

complain to the Ombudsman Service.<br />

Respondents to the FCA’s January<br />

FCA extends access to FOS for SMEs<br />

<strong>2018</strong> consultation strongly supported the<br />

extension of the Ombudsman Service to<br />

larger SMEs, charities and trusts, and a new<br />

category of personal guarantors.<br />

The changes will allow a wider number<br />

of SMEs to access the service, so they can<br />

seek redress. The criteria for access to the<br />

service have been amended so that SMEs<br />

must only meet the turnover test and one<br />

of either the headcount or balance sheet<br />

total tests, not all three tests as previously<br />

proposed. The FCA made this change in<br />

response to feedback that applying all three<br />

tests would unfairly exclude certain types<br />

of SME, for example those with relatively<br />

low turnover but 50 or more employees.<br />

The FCA has published near-final rules,<br />

so the Ombudsman Service can start<br />

taking practical steps towards putting the<br />

extension of its remit in place, including<br />

starting recruitment of additional staff with<br />

the skills and experience required. The<br />

FCA intends to publish final rules later this<br />

year, following its normal scrutiny of the<br />

Ombudsman Service’s draft business plan<br />

and budget. It expects the final rules on the<br />

SME extension to come into force on 1 April<br />

2019. fca.org.uk<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 6

New team for the digital market<br />

ATRADIUS and Kemiex have launched a<br />

digital trading platform for raw materials in<br />

the pharma, vet, food and feed industries.<br />

Positioned as a new digital market place,<br />

the platform enables buyers and sellers of<br />

Active Pharmaceutical Ingredients (APIs)<br />

and additives to identify reliable trade<br />

partners and to trade safely. Atradius will<br />

offer support by providing credit risk<br />

insight and trade insurance for trade<br />

partners.<br />

The platform has been designed as an<br />

alternative for existing trading procedures<br />

that are often time consuming, prone to<br />

errors and might be limited to personal<br />

networks. Atradius and Kemiex also<br />

anticipate the need in the human and<br />

animal health and nutrition industries to<br />

comply with strict regulations relating to<br />

quality control. Atradius contributes to the<br />

safety and transparency of the platform<br />

by providing trade insurance for single<br />

transactions through one click on the<br />

Kemiex platform.<br />

The organisations claim that the main<br />

benefit is that buyers and sellers can do<br />

business with reliable parties that comply<br />

with relevant regulations and quality<br />

controls and are credit worthy. Kemiex<br />

estimates whether a company on the<br />

platform complies with quality standards,<br />

whereas Atradius analyses the credit<br />

worthiness of those acting on the platform.<br />

Together, they evaluate companies, their<br />

transactions and the behaviour of traders<br />

in order to ensure that transacting on the<br />

platform is as safe as possible.<br />

atradius.co.uk kemiex.com<br />

>NEWS<br />

IN BRIEF<br />

Senior appointment<br />

TWO Fellows of the Chartered Institute<br />

of Credit Management have been<br />

confirmed in senior positions in the<br />

industry. CI<strong>CM</strong> Executive Board member<br />

and Vice Chair Debbie Nolan FCI<strong>CM</strong>(Grad)<br />

has been appointed as Chief Executive<br />

of Arvato Financial Solutions. She joined<br />

the integrated financial services solutions<br />

company seven years ago as Business<br />

Development Director before becoming<br />

Commercial Director. Colleague and<br />

CI<strong>CM</strong> Chair Pete Whitmore FCI<strong>CM</strong>, has<br />

become Head of Credit Services, EMEA<br />

for Westcon Group. He started as Credit<br />

Risk Manager two years ago at the cloud<br />

solutions provider, and then held the<br />

position EMEA Credit Risk Manager.<br />

arvato.com uk.westcon.com<br />

Climb in complaints<br />

COMPLAINTS against FCA regulated<br />

companies continued to increase for the<br />

fourth successive half year, reaching a<br />

new record level of 4.13 million made<br />

to 3,161 firms. This was a ten percent<br />

increase compared with the previous<br />

six-month period; 98 percent of the<br />

complaints were made to 235 firms. PPI<br />

continued to be the most complained<br />

about product, accounting for 42 percent<br />

of all complaints. The next most<br />

complained about products are current<br />

accounts (15 percent), credit cards<br />

(eight percent) and motor and transport<br />

insurance (six percent). fca.org.uk<br />

£20k Exporting grant<br />

FEDEX Express is offering a grand prize<br />

grant of £20,000 and runner-up prize of<br />

£10,000 to UK SMEs that demonstrate<br />

how they plan to grow their business<br />

internationally. To stand a chance of<br />

winning, business owners must be ready<br />

to provide details on what inspired them to<br />

start their company, their ethical standards,<br />

as well as a clear strategic vision of future<br />

international growth. To apply for the Small<br />

Business Grant, business owners should<br />

register online and demonstrate their<br />

ambitions to FedEx’s judging panel. The<br />

winner and runner-up will be announced on<br />

24 January 2019. uk.grant.fedex.com<br />

New authority<br />

THE leading retail payments authority<br />

in the UK – formerly known as the New<br />

Payment System Operator / NPSO – has<br />

been rebranded as Pay.UK. Its remit<br />

includes working in the public interest<br />

to ensure that the systems the country<br />

relies on for its banking transactions are<br />

safe, open, innovative and resilient. In<br />

2017 it processed more than eight billion<br />

transactions worth £6.7 trillion, through<br />

Bacs Direct Credit, Direct Debit, Faster<br />

Payments, cheques and Paym.<br />

wearepay.uk<br />

CI<strong>CM</strong> index<br />

THE CI<strong>CM</strong> is looking at ways of developing<br />

its current Credit Managers’ Index (<strong>CM</strong>I)<br />

programme to embrace all areas of the<br />

commercial and consumer credit industry<br />

and include benchmarking statistics. The<br />

Institute welcomes ideas from members to<br />

governance@cicm.com.<br />

CSA recognised for 'outstanding' levels of service<br />

THE Credit Services Association, the<br />

voice of the UK debt collection and<br />

debt purchases sectors, has registered<br />

‘outstanding’ customer service levels<br />

in its first ever assessment under the<br />

independent Investor in Customers (IIC)<br />

assessment process.<br />

In being granted a Silver Award, the CSA<br />

had to demonstrate a strong understanding<br />

and desire to meet its members’ needs.<br />

It was especially strong in the area of<br />

‘delighting’ its customers in matters of<br />

treating customers fairly, and when it came<br />

to ‘engendering loyalty’ it was recognised<br />

for building quality relationships. In both<br />

of these sub categories it attained the Gold<br />

standard.<br />

Comments from customers included:<br />

“Good service, clear user-friendly<br />

information, great people”;<br />

“The CSA provides excellent advice and<br />

resources. We are kept up-to-date with any<br />

industry changes or new requirements”;<br />

“The CSA is a valuable service that<br />

champions on our behalf at times when<br />

we may not have a voice”; and “I would<br />

have no hesitation in recommending the<br />

Association to others, and have already<br />

done so on a few occasions.”<br />

IIC is an independent assessment<br />

organisation that conducts rigorous<br />

benchmarking exercises. These exercises<br />

determine the quality of customer service<br />

and relationships across a number of<br />

dimensions, including how well a company<br />

understands its customers, how it meets<br />

their needs and how it engenders loyalty.<br />

IIC also compares and contrasts the views<br />

of staff and senior management to identify<br />

how embedded the customer is within the<br />

company’s thinking.<br />

Peter Wallwork, Chief Executive of the<br />

CSA is delighted with the Award: “To be<br />

recognised by the IIC for the way in which<br />

we deliver our service is a great accolade<br />

and a tremendous reflection on the hard<br />

work, dedication and commitment of the<br />

head office team.” csa-uk.com<br />

“Good service,<br />

clear user-friendly<br />

information,<br />

great people”<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 7

NEWS<br />

IN BRIEF<br />

FENCA adopts<br />

GDPR code<br />

THE Federation of European National<br />

Collection Associations (FENCA) has<br />

formally adopted a Code of Conduct to apply<br />

the rules of the General Data Protection<br />

Regulation (GDPR) to the debt collection and<br />

debt purchase sectors. Acknowledged in this<br />

endeavour by European Commissioner for<br />

Justice, Consumers and Gender Equality Věra<br />

Jourová, FENCA is one of the first European<br />

trade bodies to develop a Code of Conduct,<br />

as encouraged by Article 40 of the GDPR. In<br />

close exchange with national Data Protection<br />

Authorities, FENCA will now embark on the<br />

official process of adoption of the GDPR Code<br />

of Conduct by the European Data Protection<br />

Board. fenca.eu<br />

Soggy bottom line<br />

THE total pre-tax profits at the UK’s Top 100<br />

restaurants have plunged 80 percent in the<br />

last year to just £37 million, down from £194<br />

million 12 months ago, research shows by<br />

UHY Hacker Young. The drop means that<br />

pre-tax profits at the UK’s Top 100 restaurant<br />

groups have now fallen 89 percent from £345<br />

million since the first quarter of 2017. UHY<br />

Hacker Young says that the cost of closing<br />

struggling sites has weighed heavily on the<br />

profits of restaurant groups over the past two<br />

years. Household-name groups including<br />

Gaucho, Strada, and Prezzo have all shut a<br />

number of outlets in recent months as the<br />

casual dining sector deals with overcapacity.<br />

uhy-uk.com<br />

Services slowdown<br />

THE UK’s service companies grew by their<br />

slowest pace in seven months in October,<br />

according to IHS Markit's Purchasing<br />

Managers' Index (PMI). The PMI for services<br />

fell from 53.9 to a seven-month low of 52.2,<br />

below City expectations of 53.8. A reading<br />

above 50 indicates growth. Optimism levels<br />

among UK executives also fell to their lowest<br />

point since July 2016.<br />

ihsmarkit.com/products/pmi.html.com/<br />

products/pmi.html<br />

The same cloth<br />

DESPITE Archbishop of Canterbury Justin<br />

Welby saying in 2013 that the Church would<br />

look to compete with payday lenders and<br />

drive them out of existence, figures show that<br />

just 8.8 percent of Anglican churches have<br />

any involvement in social financial projects<br />

or offer debt advice, while only two percent<br />

run advice or lending operations.<br />

CI<strong>CM</strong> and ITN combine<br />

to present 'Credit Experts'<br />

THE Chartered Institute of Credit<br />

Management (CI<strong>CM</strong>) has once again<br />

partnered with ITN Productions to<br />

create a new flagship news-style<br />

programme entitled ‘Credit Experts.’<br />

Presented by national newsreader,<br />

Natasha Kaplinsky, ‘Credit Experts’ will<br />

explore the vital role credit management<br />

plays in keeping businesses in business, will<br />

showcase the latest innovative technologies<br />

and best practices facilitating effective<br />

customer outcomes, and will highlight<br />

industry-leading knowledge and guidance<br />

that is vital for sustaining and growing a<br />

successful business landscape.<br />

The news-style piece will combine key<br />

interviews and reports with sponsored<br />

editorial profiles from leading organisations<br />

and will premiere during Credit Week in<br />

March 2019.<br />

Philip King, Chief Executive, CI<strong>CM</strong> says<br />

now, more than ever, credit professionals<br />

are needed to help guide businesses, large<br />

and small, through unchartered waters and<br />

an uncertain future post-Brexit: “Hearing<br />

from those professionals, learning about<br />

best-practice credit management, and<br />

exploring the increasing role of AI and other<br />

technologies in enhancing the customer<br />

Financial boost for apprenticeships<br />

THE Chancellor has announced the new<br />

rates of National Minimum Wage, National<br />

Living Wage and Apprentice Minimum Wage<br />

from April 2019 as recommended by the Low<br />

Pay Commission (LPC). The LPC estimates<br />

that the increase for the Apprentice<br />

Minimum Wage of 20 pence (5.4 percent) will<br />

benefit up to 36,000 apprentices.<br />

The ten percent fee that small businesses<br />

must pay when they take on apprentices will<br />

also be halved. SMEs will only contribute<br />

five percent to the training, as part of a ‘£695<br />

million package to support apprenticeships’.<br />

Up to £5 million is going to the<br />

Institute for Apprenticeships and National<br />

Apprenticeship Service in 2019-20, to<br />

‘identify gaps in the training provider market<br />

and increase the number of employerdesigned<br />

apprenticeship standards available<br />

to employers’. A figure of £20 million has<br />

been allocated to new ‘skills pilots’ which<br />

will include a £3 million scheme to help<br />

‘employers in Greater Manchester and<br />

surrounding areas to address local digital<br />

skills gaps through short training courses’.<br />

There will also be a £10 million pilot in<br />

Greater Manchester, working with the FSB, to<br />

‘test what forms of government support are<br />

most effective in increasing training levels<br />

for the self-employed’.<br />

A £7 million match funding pilot ‘alongside<br />

employers to provide on-the-job training to<br />

young people not currently in employment,<br />

education or training in Greater Manchester,<br />

and to move them into sustainable career<br />

paths with employers’.<br />

Launch of new Export competition<br />

THE Institute of Export & International<br />

Trade (IOE&IT) has launched the 10th ‘Open<br />

to Export Competition’ – an opportunity for<br />

UK companies to take ownership of their<br />

international strategies and win £3,000<br />

towards implementing them.<br />

Sponsored by Bibby Financial Services<br />

(BFS), ‘Taking UK Plc to the World’ asks<br />

SMEs to create an international strategy<br />

using the online ‘Export Action Plan’ tool<br />

on OpentoExport.com. The tool encourages<br />

companies to take decisions along each step<br />

of their international trade journey – from<br />

journey will make this a compelling<br />

programme.”<br />

Elizabeth Fisher-Robins, Head of Industry<br />

News, ITN Productions, says this programme<br />

builds on the success of ‘Credit Champions’:<br />

“We hope this programme continues to<br />

spotlight the importance of excellent<br />

credit management in supporting business<br />

success and the wider UK economy.”<br />

The programme builds on the success<br />

of ‘Credit Champions,’ a launch initiative<br />

broadcast earlier this year.<br />

For more information, or to participate<br />

in the programme contact James Linden,<br />

Director of UK Programming at ITN<br />

Productions on 0207 430 4228 or<br />

james.linden@itnproductions.com.<br />

selecting a market to delivering products or<br />

services to new customers.<br />

Companies have until 25 January to<br />

enter their ‘Export Action Plans’ into the<br />

competition – giving them all of Christmas<br />

and the key planning month of January. Ten<br />

shortlisted finalists will then be invited to<br />

pitch their businesses at a showcase final at<br />

the end of February. The finalists will pitch<br />

to a panel of expert judges about how they<br />

would use the £3,000 cash prize.<br />

export.org.uk<br />

bibbyfinancialservices.com<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 8

Cedar Rose launches new<br />

late payer warnings app<br />

>NEWS<br />

IN BRIEF<br />

CEDAR Rose has launched a new scoring<br />

system that allows suppliers to rate<br />

business transactions through its ‘Trade<br />

Rate’ system which aims to provide a<br />

more efficient and robust credit reporting<br />

service.<br />

By searching for a company at cedarrose.com,<br />

visitors will see whether<br />

information on the customer is already<br />

available, and the date of any data already<br />

held. By selecting the Trade Rate tab,<br />

users can then rate their customer’s<br />

payment history using a star scoring<br />

system. Companies can be rated from<br />

one to five, depending on whether or not<br />

the client adhered to pre-agreed payment<br />

terms. Once the ratings are verified by the<br />

credit analysts and at least two ratings<br />

are received on the subject from different<br />

sources, the rating will show in the subject<br />

company’s credit report.<br />

Trade Suppliers can also give a full<br />

reference on a company including their<br />

agreed payment terms, maximum credit<br />

limit amount, average invoice amount,<br />

business trend and usual payment<br />

method by completing a simple form.<br />

There is also the opportunity to add<br />

comments, which the user can decide<br />

whether to share with future purchasers<br />

of the credit report, or leave just for<br />

Cedar Rose’s analysts to view. All ratings<br />

subsequently shown in a credit report are<br />

provided anonymously. cedar-rose.com<br />

Once the ratings are<br />

verified by the credit<br />

analysts and at least<br />

two ratings are received<br />

on the subject from<br />

different sources, the<br />

rating will show in the<br />

subject company’s credit<br />

report.<br />

Tech Committee<br />

THE CI<strong>CM</strong> Technical Committee met on<br />

6 November and discussed a number of<br />

important topics including: BEIS Call<br />

for Evidence on Creating a responsible<br />

payment culture; launch of a further<br />

HM Treasury consultation on ‘Breathing<br />

Space’; HMRC returning to the list of<br />

‘Preferential creditors’ from April 2020<br />

and updates on the progress of Pay.UK<br />

and its plans for the payment space. The<br />

Committee also discussed the process,<br />

rules and risk around insolvency<br />

petitions and their advertising; and the<br />

Government announcement on new<br />

measures to boost funding for small<br />

businesses with new laws to arm small<br />

businesses against unfair contracts that<br />

stop them raising money from unpaid<br />

invoices.<br />

Starling murmurs<br />

STARLING Bank has become the first<br />

mobile-only bank to partner with the Post<br />

Office to offer everyday banking services to<br />

its customers. The partnership will allow<br />

Starling current and business account<br />

customers to deposit and withdraw cash<br />

through the Post Office’s 11,500 branches<br />

nationwide. Starling’s business account<br />

customers will be able to see near ‘real<br />

time’ credit into their account from their<br />

cash deposits into Post Offices. It brings<br />

the total number of banks now part of<br />

the Post Office’s Banking Framework<br />

to 28, helping to provide vital access to<br />

banking services, especially in those 1,500<br />

communities across the UK which are<br />

without a bank branch. stateofflux.co.uk<br />


TWO firms that were behind nearly 600,000 nuisance calls attempting to sell home security<br />

systems to people registered with the Telephone Preference Service (TPS), have been fined<br />

a total of £220,000 by the Information Commissioner’s Office (ICO). ACT Response from<br />

Middlesbrough was behind 496,455 live marketing calls to TPS subscribers and has been<br />

fined £140,000. There were 128 complaints made about the company between January<br />

2017 and February <strong>2018</strong>. Secure Home Systems (SHS) of Bilston, has been fined £80,000 for<br />

making calls to 84,347 numbers registered with the TPS between September and <strong>December</strong><br />

2017, using call lists bought from third parties without screening them. People made 268<br />

complaints about the company over a two-year period. ico.org.uk<br />

CI<strong>CM</strong> to chair conference<br />

THE CI<strong>CM</strong> will once again host a Trade<br />

Credit Conference as a key event supporter<br />

of Credit Week 2019 (18-22 March).<br />

CI<strong>CM</strong> Chief Executive Philip King will<br />

chair discussions that examine the credit<br />

management lifecycle, perspectives on<br />

building an effective credit management<br />

team and regulatory updates.<br />

Philip said he was delighted to be<br />

supporting the week-long series of<br />

conferences, meetings and networking<br />

events: “The series of events bring together<br />

leading consumer and commercial credit<br />

professionals from Europe and beyond, and<br />

provides a great opportunity for networking,<br />

learning and sharing of best practice.<br />

“All of these are fundamental to the<br />

objectives of the CI<strong>CM</strong> and this is a great<br />

example of a professional body working with<br />

a commercial organisation for the benefit of<br />

the credit community.”<br />

The CI<strong>CM</strong> Trade Credit Conference, part of<br />

the Credit Summit, will take place at the QEII<br />

Centre in Westminster on 21 March 2019.<br />

Measuring up<br />

BIBBY Financial Services (BFS) has<br />

provided a funding package of £500,000<br />

to Haddow Group, a West Yorkshire based<br />

clothing manufacturer which designs and<br />

supplies lifestyle products for some of the<br />

UK’s top high street retailers. Based in<br />

Bradford and founded in 1986, the familyrun<br />

business produces a variety of interior,<br />

swimwear, nightwear and beauty ranges for<br />

retailers. Haddow Group has experienced<br />

significant growth since its creation and<br />

now employs a team of around 60 people.<br />

bibbyfinancialservices<br />

CI<strong>CM</strong> INBRIEF<br />

THIS month's briefing includes details of the<br />

new programme with ITN Productions called<br />

Credit Experts, a survey re the BEIS Call for<br />

Evidence, a guest blog by Emma Lovell, Chief<br />

Executive of R3, and an article from Karen<br />

Young from Hays on the benefits of having a<br />

career mentor.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 9

HMRC preferred<br />

status to be restored<br />

THE Chancellor’s plan to give HMRC<br />

preferred status in company<br />

insolvencies has led to dismay<br />

from senior members of the<br />

insolvency profession.<br />

Chief Executive of R3, Emma Lovell,<br />

says the proposal would be a retrograde<br />

and damaging step to UK plc if not thought<br />

through carefully.<br />

“It will amount to a tax on creditors,<br />

including small businesses, pension funds,<br />

suppliers, and lenders, and reverses a status<br />

quo that has been encouraging business<br />

rescue since 2002,” she says. “It may also<br />

make borrowing for small businesses<br />

harder to come by.”<br />

R3’s members say that HMRC could do<br />

more to engage actively in insolvency<br />

procedures, and at an earlier stage. HMRC<br />

has a wide-ranging toolkit to help it to<br />

tackle abuse and evasion, which could be<br />

used more fully, instead of forcing its way to<br />

the top of the queue by legislation.<br />

“HMRC considers itself to be an<br />

‘involuntary creditor’ of businesses, because<br />

it cannot choose which companies to<br />

engage with,” Emma continues. “However,<br />

all suppliers to businesses are ‘involuntary<br />

creditors’ and have to take commercial<br />

risks, and this announcement will<br />

hugely increase the risks taken by small<br />

enterprises trying to do business.”<br />

The Government has moved in recent<br />

months to improve and strengthen the<br />

UK’s business rescue framework, which R3<br />

has welcomed. However, Emma feels this<br />

announcement risks throwing away much<br />

of the recent progress that has been made.<br />

“We hope that the Government will<br />

reconsider this move and listen to concerns<br />

of the insolvency and restructuring<br />

profession as it consults on the issue over<br />

the coming months.”<br />

Frances Coulson goes into more detail on<br />

page 19.<br />

gov.uk/government/organisations/hmrevenue-customs<br />

Emma Lovell<br />

Chief Executive Officer at R3<br />

Debt deceit by nearest and dearest<br />

ALMOST one fifth of Brits (19 percent) would<br />

never inform a partner of their debt situation,<br />

according to research by Equifax. The survey<br />

found those aged 65 and over (29 percent)<br />

are almost twice as likely as those aged 18-24<br />

and 35-44 (both 12 percent) not to reveal their<br />

debt to their significant other.<br />

Only a third of respondents (32 percent)<br />

would inform a new partner of their debt<br />

situation within three months of beginning<br />

a new relationship. Of those, men are more<br />

forthcoming than women – 37 percent vs 27<br />

percent respectively.<br />

Furthermore, over a third (35 percent)<br />

of people who are either married or in a<br />

civil partnership do not have a shared<br />

bank account, with the proportion rising<br />

considerably for people earning less than<br />

£20,000 (71 percent).<br />

Meanwhile, similar findings from research<br />

by the Money Advice Service reveals UK<br />

adults are hiding more than £96 billion of<br />

debt from their friends and family, with the<br />

average amount of hidden debt in the UK<br />

standing at £41,643 per person.<br />

Of those in a relationship, almost a third<br />

(29 percent) say their other half does not<br />

know about all the money they owe. And<br />

five percent admit that their partner is<br />

completely in the dark about their debts.<br />

Almost half (47 percent) say their close<br />

friends don’t know they have any debts at all.<br />

Men are less likely than women to open up<br />

about it; half (50 percent) of men admit that<br />

their close friends don’t have a clue about<br />

their debts, which is seven percentage points<br />

higher than women (43 percent).<br />

The research finds that credit cards<br />

account for the largest quantity of hidden<br />

debt (48 percent). Personal loans from a<br />

bank or building society (17 percent), an<br />

overdraft (16 percent), money owed to friends<br />

and family (12 percent) and store cards (11<br />

percent) follow. Meanwhile, eight percent of<br />

all those with debt hide payday loan debt.<br />

equifax.co.uk<br />

>NEWS<br />

IN BRIEF<br />

Bean counting<br />

UK consumers are spending less<br />

on habitual leisure activities such<br />

as drinking coffee and eating out<br />

compared to last year, according to the<br />

latest findings from Deloitte’s ‘Leisure<br />

Consumer Q3 <strong>2018</strong>’ report. The quarterly<br />

survey of 3,105 UK leisure consumers<br />

also revealed that, while overall spending<br />

was flat compared to Q3 2017, consumers<br />

increased their spending in both ‘culture<br />

and entertainment’ and ‘gym and sport’<br />

by two percentage points, with the boost<br />

likely caused by the dry weather over the<br />

summer months. Consumers reported<br />

spending less on drinking in coffee shops<br />

than they did in Q3 2017, falling by three<br />

percentage points. In addition, eating and<br />

drinking out saw a two percentage points<br />

fall in net spending year-on-year.<br />

deloitte.com/uk/en.html<br />

Real-time ID checks<br />

EQUIFAX has teamed up with open<br />

banking technology provider consents.<br />

online to allow it to match customer<br />

data and transactions in real-time.<br />

Users will be able to match identity<br />

information such as the consumer’s<br />

name, address and date of birth with<br />

transaction data provided through<br />

open banking, helping them verify who<br />

someone is faster and help avoid fraud.<br />

It will be used within Equifax’s bank<br />

account verifier system that lets lenders<br />

compare sort codes and account<br />

numbers to its own database.<br />

equifax.co.uk<br />

Service charge<br />

SERVICE exports increased to £72.3<br />

billion in the second quarter of <strong>2018</strong>, up<br />

from £66.9 billion in the first quarter, and<br />

up from £68.6 billion during the same<br />

period in 2017, according to the Office for<br />

National Statistics (ONS). Exports to the EU<br />

increased by more than any other region<br />

between the first and second quarter.<br />

However, the US remained the UK’s largest<br />

single country trade partner, buying £15.2<br />

billion of British services in the second<br />

quarter. ‘Other business services’ –<br />

including legal, accounting and advertising<br />

– was the biggest type of exported services,<br />

followed by financial services. ons.gov.uk<br />

PPI payout<br />

A total of £3.7 billion has been paid out<br />

following PPI claims since the Financial<br />

Conduct Authority (FCA) launched its<br />

campaign to promote consumer action,<br />

with monthly volumes up 40 percent<br />

since the launch. Since 2011 more than<br />

£30 billion in redress has been received<br />

by consumers.<br />

fca.org.uk<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 10

Bailiff research ridiculed as<br />

‘mathematical gymnastics’ by<br />

enforcement leader<br />

A<br />

senior business leader has<br />

slammed research from Citizens<br />

Advice into the use and actions of<br />

bailiffs as ‘clever, mathematical<br />

gymnastics’ after the charity reported a<br />

24 percent rise in bailiff complaints since<br />

2014 and cited more than half a million<br />

examples of where bailiffs have breached<br />

current rules.<br />

Russell Hamblin-Boone, Chief Executive<br />

Officer of the Civil Enforcement Association<br />

(CIVEA), took the charity to task: “Citizens<br />

Advice has used clever, mathematical<br />

gymnastics to come to the figure of a rule<br />

broken by bailiffs every minute,” he says.<br />

“Bailiffs collected 12 million debts over<br />

the years quoted in the report, so it is<br />

wrong to make those sweeping judgement<br />

about bailiffs who operate against tight<br />

regulations.”<br />

The research took the form of a poll by<br />

YouGov involving 277 people. It suggested<br />

that bailiffs are flouting the laws in a<br />

number of cases, by refusing to accept<br />

affordable payments, misrepresenting their<br />

rights of entry, and taking control of goods<br />

inappropriately. The purpose of the report<br />

was to show that 2014 reforms haven't<br />

worked, and new regulation was required.<br />

Gillian Guy, Chief Executive of Citizens<br />

Advice, says too often bailiffs, and the firms<br />

they work for, are a law unto themselves:<br />

“This is inflicting widespread harm on<br />

people and their families and it has to stop.<br />

“The 2014 reforms were well intentioned<br />

but sadly have had little effect on<br />

improving the behaviour of some bailiffs,”<br />

Mrs Guys adds. “Faced with the evidence<br />

we’ve put in front of them, the Ministry of<br />

Justice has no other option but to establish<br />

an independent bailiff regulator.”<br />

Phil Andrew, StepChange Debt Charity<br />

Chief Executive, agrees: “This is completely<br />

unacceptable, especially as the people<br />

on the receiving end are often distressed,<br />

vulnerable and unempowered. Across the<br />

debt advice sector, we are united in the<br />

view that it’s now time for regulation to be<br />

more robust, and for the rules to be properly<br />

enforced. Even some bailiff firms seem<br />

to be realising that the days of informal<br />

regulation need to end.”<br />

But Russell takes a very different stance:<br />

“Some of the things that Citizen’s Advice<br />

are saying is happening are illegal, so why<br />

aren’t they being reported to the Police? We<br />

record our bailiffs – they have video badges<br />

on their jackets and that is reviewed on a<br />

daily basis to make sure they are following<br />

the rules appropriately.<br />

“A visit by an enforcement agent is<br />

always the last resort. In order to receive a<br />

visit you must have ignored final demands,<br />

emails, phone calls and texts. Of course,<br />

agents need to be assertive when chasing<br />

down people who refuse to pay their<br />

council tax or court fines. But if there<br />

is any genuine evidence that agents are<br />

acting illegally then we will investigate<br />

and take the necessary action. But if we<br />

are to continue working together to drive<br />

up industry standards, we must avoid an<br />

emotionally-charged debate and instead<br />

focus on robust facts and strong evidence.”<br />

Citizens Advice has used<br />

clever, mathematical<br />

gymnastics to come to the<br />

figure of a rule broken by<br />

bailiffs every minute.<br />

>NEWS<br />

IN BRIEF<br />

FE<strong>CM</strong>A APPOINTMENT<br />

CHIEF Executive of the CI<strong>CM</strong>, Philip King,<br />

has been elected as Vice President of<br />

Federation of European Credit Managers<br />

(FE<strong>CM</strong>A) during the meeting of its council<br />

in Budapest. He will be serving a second<br />

term as one of the two Vice Presidents.<br />

fecma.eu<br />

Unsustainable<br />

SOME eight in ten organisations are<br />

struggling to include sustainability in their<br />

supply chain management, according to<br />

research by State of Flux. The annual report<br />

surveyed more than 300 organisations<br />

and found only five percent of these can<br />

be classed as ‘leaders’ in supply chain<br />

sustainability. The report also revealed that<br />

47 percent of organisations do very little<br />

or no joint work with suppliers to manage<br />

sustainability. stateofflux.co.uk<br />

Flashing the cash<br />

UK Finance data shows that consumers<br />

spent £10.7 billion using credit cards in<br />

September – the highest monthly total<br />

since records began in 1997. This came<br />

in a month where the amount of money<br />

placed into savings accounts climbed by<br />

0.9 percent, the smallest increase since<br />

2007. Contrastingly, growth in consumer<br />

credit has slowed to its lowest level in<br />

more than three years. Bank of England<br />

data showed that personal borrowing via<br />

loans and credit cards was up 7.7 percent<br />

on an annualised basis in September, the<br />

lowest rate since June 2015. It is also well<br />

below the peak of 10.9 percent recorded in<br />

November 2016. ukfinance.org.uk<br />

Self-employed exhibit debt dilemma<br />

A growing number of small business<br />

owners and self-employed people are<br />

facing high levels of debt as they struggle<br />

to keep their businesses afloat, according<br />

to research from Business Debtline.<br />

Findings show that half (49 percent)<br />

of the people contacting the service last<br />

year had debt totaling £10,000 or more,<br />

with nearly a quarter (23 percent) owing<br />

more than £30,000.<br />

Issues such as late payments, low<br />

and variable incomes and a lack of<br />

essential business management skills are<br />

identified as some of the key challenges<br />

that can lead to financial difficulty and<br />

in some cases business failure. Both<br />

business and personal debts are common<br />

amongst the people helped via Business<br />

Debtline, with the two often intermixed,<br />

further complicating their situation.<br />

While the people helped by Business<br />

Debtline had a wide income range, 39<br />

percent had gross business annual<br />

turnover below £25,000. Low and irregular<br />

income were major challenges and often<br />

prevented small business owners from<br />

saving, investing in the business and<br />

having the financial resilience to deal<br />

with changes in circumstances such<br />

as ill health. More than six in 10 callers<br />

surveyed (61 percent) said they had used<br />

personal credit at some point to pay for<br />

business costs in the past two years.<br />

Nearly half (45 percent) of callers<br />

to Business Debtline surveyed said<br />

they experienced problems with late<br />

payments, where they are uncertain<br />

when the money they have earned<br />

will be paid. The issue was common for<br />

both sole traders and company directors.<br />

Before starting trading, most felt<br />

confident completing a budget (80<br />

percent) but they were less confident<br />

constructing a business plan (59 percent)<br />

and completing tax and VAT returns<br />

(47 percent). After seeking advice from<br />

Business Debtline, 82 percent of callers<br />

reported that they felt more in control<br />

of their finances, with 86 percent saying<br />

they were less likely to find themselves<br />

in a similar situation again.<br />

A significant proportion (69 percent)<br />

considered themselves to be in a<br />

vulnerable situation. Financial difficulty<br />

was the main reason given, with<br />

depression, anxiety and stress commonly<br />

cited. For many, being in a vulnerable<br />

situation caused them to struggle to<br />

trade, further impacting their income.<br />

businessdebtline.org<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 11


Budget <strong>2018</strong><br />

The potential impact on insolvency following<br />

the budget announcement.<br />

AUTHOR – David Kerr MCI<strong>CM</strong><br />

David Kerr<br />

IN among Philip Hammond’s<br />

jokes and the headlines about<br />

the ending of austerity, one of<br />

the main points likely to attract<br />

interest from creditors is the<br />

announcement regarding the<br />

position of HM Revenue & Customs<br />

in insolvencies. In a surprise move,<br />

after dealing with the new digital tax<br />

on corporate giants in his speech, he<br />

switched to a measure that seems to be<br />

characterised as part of a push on tax<br />

avoidance, saying:<br />

‘We must also make sure people play by<br />

the rules. We’ll make HMRC a preferred<br />

creditor in business insolvencies to<br />

ensure that tax which has been collected<br />

on behalf of HMRC is actually paid to<br />

HMRC.’<br />

This is not a criticism of insolvency<br />

practitioners. The Government removed<br />

the Revenue’s preferential status some 15<br />

years ago as part of an initiative to boost<br />

enterprise and allow more money in<br />

insolvency cases to flow through to other<br />

creditors. At the same time it introduced<br />

the prescribed part rules so that the tax<br />

man’s sacrifice wasn’t entirely eaten up by<br />

secured creditors with floating charges.<br />

While some see the return of HMRC’s<br />

preferential status as a backward step,<br />

it might be viewed in conjunction with<br />

an intention to increase the value of<br />

the prescribed part, and perhaps more<br />

widely in the context of other businessfriendly<br />

Budget measures. Irrespective<br />

of the merits of the Chancellor’s move<br />

(and the Treasury’s argument that this<br />

money should go to fund public services<br />

‘as intended’) and bearing in mind that<br />

the Finance Bill has yet to be passed, the<br />

limited information published to date<br />

makes interesting reading.<br />

The taxes at the heart of the measure<br />

are VAT, PAYE/NIC and construction<br />

industry scheme monies collected or<br />

deducted by companies and not passed<br />

over to HMRC at the commencement of<br />

insolvency. Non-payment of such monies<br />

is already a consideration in director<br />

disqualification cases, but that hasn’t<br />

stopped directors using those funds to<br />

finance trading when companies are in<br />

distressed situations. Other tax payable<br />

by the business is not affected.<br />

The proposed change (alongside other<br />

tax avoidance rules targeted at directors)<br />

will come into force on 6 April 2020, so that<br />

in respect of insolvencies commencing<br />

on or after that date the new preferential<br />

status will apply.<br />


A key element of the new proposal is that<br />

in respect of the affected taxes, HMRC’s<br />

preferential status will be secondary to<br />

existing preferential creditors such as<br />

the Redundancy Payment Service. So, the<br />

creditors impacted will be floating charge<br />

holders and ordinary unsecured creditors.<br />

Treasury makes the point that lending<br />

to businesses should not be affected in a<br />

‘material’ way, as fixed charges holders<br />

are unaffected, and the reduced recovery<br />

by floating charge holders represents only<br />

a ‘very small fraction’ of total lending;<br />

some may disagree.<br />

There will of course be a negative<br />

impact on unsecured creditors, but<br />

Treasury argues that most will not be<br />

affected as they are usually unable to<br />

recover their debts in any event (only<br />

four percent of debts owed on average,<br />

it states). Some might argue with these<br />

figures and their assessment of the impact<br />

on unsecured creditors; inevitably, those<br />

cases which produce dividends will<br />

in future be likely to produce smaller<br />

dividends (or none at all) for those at the<br />

bottom of the insolvency pecking order.<br />

It is interesting to be returning to<br />

something that existed for the first half<br />

of the 30-year period since the 1986<br />

Insolvency Act. There is some clue to the<br />

Government’s thinking in the wording<br />

of the HM Treasury statement which<br />

suggests these taxes ‘paid in good faith by<br />

(a business’s) employees and customers’<br />

are ‘held on trust’ by the business. There<br />

has not been any suggestion that they<br />

will be regarded as trust monies in a<br />

way that would create all sorts of legal<br />

complications, merely a hint that HMRC<br />

has a moral case for jumping the queue<br />

and claiming its dues (estimated by<br />

Treasury to be £185 million per annum)<br />

on behalf of the Great British public and<br />

taxpayers.<br />

Finally, there has been no published<br />

information at this stage suggesting a limit<br />

on the new preferential claims, unlike<br />

the position with Revenue preferential<br />

creditor claims pre-2003; also, while<br />

the announcement refers to businesses<br />

and could in theory cover individual<br />

insolvent traders, the focus appears to<br />

be on corporate insolvencies. Further<br />

clarification is awaited on these points.<br />

David Kerr MCI<strong>CM</strong> is an insolvency<br />

practitioner with extensive regulatory<br />

experience.<br />

We must also make<br />

sure people play by the<br />

rules. We’ll make HMRC<br />

a preferred creditor in<br />

business insolvencies to<br />

ensure that tax which has<br />

been collected on behalf<br />

of HMRC is actually paid<br />

to HMRC.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 12


First impressions<br />

Philip King FCI<strong>CM</strong> reflects on a busy and exciting<br />

year for the CI<strong>CM</strong>, and a series of ‘firsts’.<br />

Philip King FCI<strong>CM</strong><br />

THEY say that time flies when<br />

you’re having fun. That may<br />

be the case, and often is,<br />

and it is certainly true that<br />

12 months can go by in a<br />

flash when you are busy,<br />

and the Chartered Institute of Credit<br />

Management has probably had one of<br />

its busiest years since I became Chief<br />

Executive in 2006.<br />

Three key purposes of the CI<strong>CM</strong> are<br />

to raise awareness of the importance of<br />

credit management, drive best practice,<br />

and support credit professionals as their<br />

careers develop.<br />

The launch of our Credit Champions<br />

documentary at the start of the year<br />

ticked all three of those boxes and<br />

more. A collaborative initiative with ITN<br />

Productions, it was launched to wide<br />

acclaim at the Credit Summit in March,<br />

and is a programme we are looking to<br />

revisit in 2019.<br />

Indeed <strong>2018</strong> was a year of significant<br />

‘firsts’: our first venture into television<br />

documentaries; the launch of our<br />

Knowledge Hub, providing members and<br />

subscribers with access to more than 1,000<br />

knowledge resources covering the entire<br />

credit management lifecycle; and the<br />

launch of our CI<strong>CM</strong> Mentor Hub, a simple<br />

yet highly-practical way of matching<br />

suitable mentors and mentees.<br />

We also launched our new CI<strong>CM</strong> branch<br />

in Ireland, (see November <strong>2018</strong> news), and<br />

I have been delighted with the enthusiasm<br />

shown by the newly-appointed officers and<br />

the levels of engagement already being<br />

realised.<br />

The thirst for knowledge around<br />

best-practice in credit management, not<br />

just in the UK but also internationally,<br />

was evidenced by the broad spread of<br />

nationalities represented in recent exams.<br />

Students in no fewer than 17 different<br />

countries, from the UK to the US, chose the<br />

education pathway offered by the CI<strong>CM</strong>,<br />

confirming in my mind the essential<br />

role that the CI<strong>CM</strong> continues to play in<br />

delivering real expertise.<br />

That does not mean we can rest on<br />

our laurels, and as you can read on<br />

page 46, we are continually looking at<br />

how our qualifications can be further<br />

enhanced to meet a new generation of<br />

credit professionals, as well as how we can<br />

support a growing number of apprentices.<br />

Closer to home, we celebrated yet<br />

another successful event with our CI<strong>CM</strong><br />

British Credit Awards and look forward to<br />

announcing our 2019 Awards winners in<br />

February. The Awards continue to grow in<br />

popularity, as does our CI<strong>CM</strong>Q accreditation<br />

scheme that delivers real evidence of bestpractice<br />

credit management in action.<br />

Of course, we have had our challenges<br />

this year too. I do not always find myself<br />

in agreement either with my Peers in other<br />

leading business organisations, or with our<br />

MPs and public servants. I am continually<br />

frustrated by the late payment debate<br />

being hijacked as a point-scoring exercise<br />

without any real understanding of what<br />

can be a very complex issue.<br />

I will say, however, that by debating<br />

the issue, and challenging other people’s<br />

opinions, we are also managing to promote<br />

the importance of credit management, and<br />

I will continue to champion the value that<br />

professional credit managers can add to<br />

building better businesses.<br />

With that in mind, I wish you all a Merry<br />

Christmas and a happy and prosperous<br />

New Year.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 13


Plus Ça<br />

Change?<br />

Is it time for the larger free debt<br />

advice organisations to merge or will<br />

they continue to ignore the elephant in<br />

the room?<br />

AUTHOR – Sean Feast FCI<strong>CM</strong><br />

ASK anyone working in<br />

consumer credit about the<br />

debt advice sector, and you’re<br />

likely to hear a broad range<br />

of views, especially when<br />

it comes to how free debt<br />

advice is funded. Amid the calls for a<br />

more level playing field, and for Fair<br />

Share payments to be – well – fair, there<br />

are also murmurs that the sector should<br />

stop squandering limited resources and<br />

consolidate (see boxed out section).<br />

Certainly they would not be the first to<br />

see consolidation as a logical next step. One<br />

only has to think of the examples of Age<br />

Concern and Help the Aged, pooling their<br />

resources and coming together as Age UK, or<br />

the consolidation that led to the creation of<br />

Cancer Research UK.<br />

There are also examples closer to<br />

home. In July 2017, UK Finance came<br />

into being, bringing together various<br />

disparate financial bodies (including the<br />

British Bankers Association, The Asset-<br />

Based Finance Association, the Council of<br />

Mortgage Lenders, the UK Cards Association<br />

etc) under one roof. Stephen Jones, the UK<br />

Chief Executive said at the time that ‘…the<br />

boundaries between banking services are<br />

blurring, enabling the industry to become<br />

more efficient and customer-focused.’<br />

The argument at the time was that<br />

consolidation would save money, maximise<br />

resources, and bring a single, more powerful<br />

and more unified voice to government in what<br />

are essential services for business growth.<br />

Whether it has succeeded in its mission is<br />

rather difficult to tell, and approaches to the<br />

UK Finance Press Office have yielded little<br />

(or indeed nothing) in the way of supportive<br />

facts. Instinctively, however, it feels like the<br />

right thing to have done, even if some of the<br />

larger directors’ salaries do not seem to have<br />

completely disappeared.<br />

Consolidation in the debt advice sector, it<br />

is argued, could similarly save considerable<br />

amounts of cash, and this is money that<br />

could be better spent in supporting the<br />

customer. A glance at various publicly<br />

available accounts might suggest where<br />

savings could be realised.<br />

The outgoing CEO of StepChange Debt<br />

Charity, for example, reportedly earned<br />

more than £180,000 in 2017 (according to its<br />

annual report), while the total remuneration<br />

to senior staff was just shy of £1.2 million.<br />

The chief executive and two deputy chief<br />

executives at the Money Advice Trust (MAT),<br />

by comparison, earned more than £270,000<br />

between them.<br />

Christians Against Poverty (CAP), meanwhile,<br />

states in its annual report that the<br />

total remuneration paid to its four key<br />

management personnel totalled c£300,000<br />

in 2017. If we add to these numbers the<br />

salary of the highest-paid director of Payplan<br />

(Payplan is not a charity but still receives<br />

industry funding) – a salary it should be<br />

noted that has risen by almost 70 percent in<br />

the last 12 months to more than £190,000 –<br />

then c£2 million is paid out to fewer than 30<br />

people. And that figure does not take into<br />

account pension contributions, dividends<br />

etc.<br />

Good people cost money, and there is<br />

nothing to suggest that these executives don’t<br />

earn every penny and possibly more besides.<br />

(There is arguably something incongruous<br />

about high-earners providing services to<br />

the least well-off, but that’s a story best left<br />

to the Red Tops.) And while salaries will<br />

grab the headlines, the real cost is in the<br />

infrastructure and cost of operations.<br />

StepChange has a dozen or so offices<br />

in the UK and employs c1,500 staff. MAT<br />

employs 190. CAP a further 260 at its head<br />

office. Start adding up the staff costs and<br />

total expenditure, and it doesn’t take long<br />

to see that tens of millions of pounds are<br />

being spent by multiple organisations who<br />

are effectively endeavouring to deliver<br />

fundamentally the same thing – helpful debt<br />

advice to struggling consumers.<br />

Those organisations might themselves<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 14


Sean Feast FCI<strong>CM</strong><br />

Not so Fair<br />

DEBT Buying members of the Credit Services Association (CSA) are on<br />

target to contribute at least £25.5 million in voluntary ‘Fair Share’ payments<br />

in <strong>2018</strong> to help fund free-to-customer debt advisers, according to latest<br />

statistics.<br />

This is an increase on the 2017 total of £23 million which at the time<br />

represented 46 percent of the £50 million the Money Advice Service (MAS)<br />

reports as contributed by the financial services sector in its entirety to<br />

StepChange Debt Charity, PayPlan and Christians Against Poverty.<br />

The contribution, which has risen from c£15 million in 2016, an increase<br />

of 70 percent, has led some senior debt industry executives to question<br />

both the existing funding model and whether the debt advice sector itself<br />

should be re-organised.<br />

“The industry is paying more than its fair share of ‘Fair Share’, and not<br />

shirking its responsibilities,” says John Ricketts, President of the CSA. “In<br />

fact, our members’ voluntary Fair Share contributions, when added to the<br />

recent substantial increase in the Financial Conduct Authority levy on debt<br />

buyers to directly fund the Money Advice Service (MAS), means that debt<br />

buyers are being asked to contribute a total of £30 million to help fund debt<br />

advice in the UK.<br />

“Where we should really be looking is at the effectiveness and efficiency<br />

of a fragmented debt advice sector who all fundamentally deliver the same<br />

thing. There certainly needs to be an ongoing review of how all free-to-use<br />

debt advice is funded in the future – it needs to be fair and proportionate<br />

funding from all sectors that benefit including Utilities, Local Authorities<br />

and Central Government.<br />

“But there also needs to be a root and branch review of how debt advice<br />

is delivered and whether consolidating and therefore simplifying those<br />

activities will deliver a better, more cost-effective and more sustainable<br />

service to the consumer. We remain committed to working with the<br />

regulator, the MAS and the debt advice sector in finding a fair, workable<br />

and sustainable long-term funding solution.”<br />

Additional reporting by Ali Bond.<br />

argue, with some justification, that their<br />

services are different. Joanna Elson OBE,<br />

Chief Executive of MAT, says that each charity<br />

has different models and channels, and that<br />

their services are complementary. “That<br />

said,” she explains, “there is a need for even<br />

closer working, to ensure people receive the<br />

right support they need as early as possible,<br />

and that collectively we use the resources<br />

available as cost-effectively as we can.”<br />

Joanna says that MAT is continuing to<br />

explore further opportunities for working<br />

more closely together to ensure it delivers<br />

services in an efficient and effective way:<br />

“We are grateful to our funders and other<br />

stakeholders for their help in ensuring we<br />

collectively operate in a way that meets the<br />

needs of the thousands of clients who need<br />

our help,” she adds.<br />

Alistair Chisholm of Payplan chimes a<br />

similar message and conciliatory tone: “We<br />

believe in consumer choice and working<br />

together with partners to deliver services<br />

effectively, ensuring that advice funding is<br />

used efficiently and spent in a way that is<br />

measurable. We believe in a collaborative<br />

approach to providing debt advice as<br />

this allows each provider to play to their<br />

strengths.”<br />

Christians Against Poverty, in its<br />

submission to Peter Wyman’s [report], is on a<br />

similar page, citing the nuanced differences<br />

in the services that various organisations<br />

provide: ‘CAP’s model is unique because it<br />

is designed to accommodate and support<br />

people with multi-complex needs. As a<br />

result, it is an expensive model that can only<br />

cater for small numbers. There is a need for a<br />

variety of different channels to cater for all in<br />

need of debt advice, but extending a service<br />

due to its cost-effectiveness should not be the<br />

sole dimension of the decision’.<br />

Consolidation, of course, is only ever a<br />

good thing if it results in an improved service<br />

for the customer. There are doubtless many<br />

examples of mergers within the commercial<br />

space that promised much, but in the end<br />

simply resulted in a small number of top<br />

executives filling their boots without any<br />

discernible improvement in the customer<br />

experience. Indeed, by consolidating the debt<br />

advice charities and associated organisations,<br />

it could be a case of ‘be careful what you wish<br />

for’ if the end result is a bloated, inflexible<br />

organisation that loses sight of its real<br />

purpose. Sometimes niche, focused charities<br />

deliver better outcomes.<br />

That said, it’s clear that the issue needs to<br />

be addressed. At the moment, debt collection<br />

agencies, for example, are obliged to<br />

signpost a dozen or so debt advisors in their<br />

correspondence with customers, but how<br />

such a list is meant to make life easier for the<br />

consumer is difficult to fathom. Channelling<br />

those enquiries through a single entity could<br />

be the answer.<br />

In his own report, Peter Wyman says that<br />

at the very least, debt advice organisations<br />

need to redouble efforts to achieve efficiency<br />

savings, and that the sector had to ‘move with<br />

the times’. He also states that the quality of<br />

advice given ‘is not uniformly high’ which<br />

adds another layer of challenge.<br />

It would take a brave executive to lead on<br />

this debate, and an incredibly brave turkey<br />

who voted for Christmas. It would mean<br />

casting egos aside and the point scoring<br />

that is sometimes evident in their PR and<br />

marketing campaigns. But like any huge<br />

elephant in the room, the issue cannot stay<br />

hidden forever, especially in the context of<br />

ongoing rumblings among creditors with<br />

regards future funding.<br />

Creditors, understandably, want to know<br />

that the money they are contributing is being<br />

properly spent, and going to support the<br />

customers who need it, rather than feeding<br />

an inefficient engine that may be in urgent<br />

need of retuning.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 15


ON THE<br />


Sean Feast FCI<strong>CM</strong> speaks to<br />

Derek Usher about debt purchase,<br />

customer engagement, and the batting<br />

style of Geoffrey Boycott.<br />

LIKE many senior executives<br />

in the credit industry, Derek<br />

Usher never set out to work in<br />

collections. His parents owned<br />

a small general store in Erith,<br />

Kent, and the family lived above<br />

and behind the shop. His father also worked<br />

nights as a lathe operator in a local factory, so<br />

Derek has always understood the concept of<br />

hard work: “If you work hard then good things<br />

come from it and opportunities will come your<br />

way,” he says.<br />

It certainly seems to be true in Derek’s case.<br />

From comparatively humble, working class<br />

origins he is now the Managing Director for<br />

Cabot Credit Management’s UK debt purchase<br />

business, a role he has held since 2016.<br />

Originally schooled at Southfields in<br />

Gravesend (in 1997, Southfields was named as<br />

one of the worst in the country and put under<br />

special measures!), he found happier times<br />

when his parents move to Felixstowe, and<br />

he attended the local Comprehensive. Derek<br />

proved a capable student: “I was in the top<br />

sets,” he says, “but whereas for some it came<br />

easily, I always had to work hard.”<br />


Derek remembers little or nothing in the way<br />

of significant careers advice, but does recall<br />

narrowing his choice between being a quantity<br />

surveyor or an accountant. “I was fixated on<br />

who earned the most,” he laughs, “and in the<br />

end decided that being close to the money was<br />

probably the best route!”<br />

It proved a wise decision. At Brighton<br />

Polytechnic he opted for a one-year foundation<br />

course followed by four years of articles, which<br />

he spent with a small, local practice, Chater<br />

Spain. “I had been interviewed by Touche<br />

Ross,” he explains and got through to the<br />

second interview. “Then they wanted me back<br />

for a third as they said it was between me and<br />

one other, and they couldn’t decide. I made<br />

the decision for them and declined. I’d been<br />

offered a job by Chater Spain, and wanted to<br />

work for a company that wanted me.”<br />

It proved yet another wise decision, and<br />

Derek spent a thoroughly enjoyable four<br />

years at the firm, quickly learning the ropes<br />

and working closely with small businesses,<br />

understanding their operations from the<br />

ground up. It was a learning curve that has<br />

proven invaluable ever since.<br />

From Chater Spain he joined Brighton’s<br />

biggest employer, American Express, initially<br />

in a Finance role for Europe, the Middle East<br />

and Africa (EMEA) and then into operations.<br />

This included, in the latter stages, a focus on<br />

the firm’s collections operations: “My role<br />

was to automate processes that were then still<br />

largely manual,” he says.<br />

“American Express was a great business to<br />

work for,” he continues, “and had a fantastic<br />

culture and customer service ethic. Many of<br />

the people I worked with there are still friends<br />

today.”<br />


Among those friends and colleagues was Ken<br />

Stannard, Derek’s boss today. “Ken said that<br />

I needed to leave before I became part of the<br />

furniture,” he smiles. As it was, Derek received<br />

a call from another former colleague, James<br />

Corcoran (now of New Day), to join him at<br />

Bank One where he was Chief Executive: “I<br />

was initially the Minister without Portfolio,” he<br />

jokes.<br />

That all changed, however, with the sale of<br />

the business to the Halifax: “Coinciding with<br />

my arrival were two profit warnings from the<br />

business in the US, and after the sale our very<br />

small business ended up running Halifax’<br />

credit card business.”<br />

His time at the Halifax was exciting to say<br />

the least. They grew the business quickly and<br />

profitably, at one point adding more than one<br />

million customers in a year. Derek learned<br />

a good many lessons, about what to do and<br />

what not to do! In 2004, however, and although<br />

having been offered a new role in Leeds as Head<br />

of Collections for the Retail Bank, he decided<br />

instead to resign so that he could go travelling<br />

with his wife.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 16

“If you work hard then<br />

good things come from<br />

it and opportunities will<br />

come your way”<br />

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



“I knew that if I didn’t do it then, I<br />

might never get around to it,” he explains.<br />

“As it was, the company did not accept<br />

my resignation, and I was able to take a<br />

sabbatical, travelling across South America,<br />

North America, Australia, New Zealand and<br />

India, and spending several weeks skiing in<br />

France. My fondest memory was in Central<br />

Australia, sleeping out under the stars in<br />

a swag bag. It is only then that you realise<br />

how small you are!”<br />


On his return, Derek once more threw<br />

himself into his role, moving to Leeds and<br />

spending four years with the business until<br />

it was taken over by the Lloyds Banking<br />

Group (LBG), by which time he was the<br />

Chief Operating Officer for its Retail<br />

operations, responsible for more than<br />

14,000 staff at its peak. He was latterly the<br />

Integration Director of LBG, and as such<br />

has some sympathy for the IT traumas<br />

recently experienced by TSB as it looked<br />

to migrate systems: “We had every form of<br />

contingency plan but in the end we were<br />

able to stand the team down after a week<br />

as the programme had been a success,” he<br />

says.<br />

The workload, however, was relentless:<br />

“We were working every day, starting with a<br />

conference call at 7-30 in the morning and<br />

finishing with another at 6-00 at night, for<br />

the better part of 18 months,” he continues.<br />

“I was working for Mark Fisher, the COO<br />

for LBG. Mark had led the RBS/NatWest<br />

integration which was the benchmark<br />

project of its time, so knew what it took to<br />

be successful. He was super smart but very<br />

demanding.”<br />

Moving south once again, Derek was<br />

tempted away from LBG with an offer<br />

from Travelex to become the global CIO:<br />

“We’d come to the end of the integration<br />

programme and all of the jobs I might<br />

have been interested in were filled, so the<br />

opportunity came just at the right time.<br />

Travelex was getting ready for a sale; it<br />

operated in 26 countries that had been<br />

somewhat under-invested in terms of<br />

technology, and so there was a great deal of<br />

work to do. In the time I was there, we were<br />

able to significantly improve service levels<br />

and make some general improvements to<br />

systems and processes, but we never quite<br />

achieved everything we wanted.”<br />

Derek stayed on until after the<br />

business was sold, and shortly afterwards<br />

he agreed to join Ken Stannard at Cabot.<br />

“Ken had spoken to me before to get me<br />

to join him at Marlin, and now that the<br />

business had merged with Cabot, Ken’s<br />

role had expanded to include Europe and<br />

he needed a dedicated managing director<br />

for Cabot’s debt purchase operations.<br />

While I had never bought debt before, I<br />

had sold some.”<br />

Using his accountant’s skill in getting<br />

beneath the skin of a business, Derek<br />

identified where further improvements<br />

could be made, especially in the use of<br />

analytics and improving the customer<br />

journey. The business had just become<br />

one of the first to achieve FCA approval,<br />

and was looking to optimise its position in<br />

the market.<br />

“I felt we’d become something of a ‘tickbox’<br />

company,” he tells me, honestly, “in<br />

the way that we engaged with customers.<br />

In one of the first calls that I listened into,<br />

a woman was making her last payment,<br />

and wanted to give us some feedback. She<br />

said that while we had always been very<br />

helpful and polite, she did not have the<br />

same experience with every creditor. Even<br />

then I thought that we could do more, and<br />

so worked hard with the management<br />

team to further improve our customer<br />

engagement and better understand the<br />

customer’s individual position.”<br />


Since joining the business, Derek has<br />

instigated a regular Friday morning<br />

Boardroom catch up, involving every<br />

department, listening to calls and<br />

discussing how those calls were handled:<br />

“If a customer cannot pay, they cannot<br />

pay,” he adds. “Yes of course as a Debt<br />

Purchaser, the amount we collect and<br />

over what time period is important. What<br />

is more important, however, is achieving<br />

the right outcome for the customer,<br />

because in doing that you can build a<br />

sustainable business.”<br />


As the largest Debt Purchasing business<br />

in the UK, Cabot has the advantage of<br />

size. This has enabled it to invest in new<br />

digital technologies such as ‘Eureka’.<br />

Eureka analyses conversations in real<br />

time, converts them into text and defines<br />

‘rules’ that can prompt the consultant<br />

into asking specific questions based on<br />

what has been said. “Our consultants are<br />

very well trained,” he says, “but Eureka<br />

is an excellent tool in helping them help<br />

their customer to the right outcome. They<br />

really like it.”<br />

Size and scale have also been important<br />

in meeting the additional costs involved<br />

in gaining FCA approval: “The FCA<br />

has been a good thing for the industry<br />

overall, because it has led to a focus on<br />

the customer and demonstrating good<br />

customer standards. Yes it has added an<br />

additional layer of cost but arguably this<br />

was needed.”<br />

Derek says that being the best that you<br />

can in whatever you do, is a good mantra<br />

to live by: “You have to make the most of<br />

any opportunities that come your way,”<br />

he explains, “and throw yourself into<br />

whatever you do. But by the same token,”<br />

he adds, “keep life in perspective.”<br />

A keen sportsman and a self-confessed<br />

evangelical ‘green’, Derek still likes to<br />

keep fit by cycling and has set himself a<br />

number of personal challenges for the<br />

year to run 1,000km, cycle 1,000km, and<br />

perform 12,000 sit ups and 12,000 press<br />

ups. He’s on target, but still has 311K left<br />

to run at the time of writing. But Derek’s<br />

particular passion is for cricket; he<br />

coaches a local Under 11’s team and as a<br />

batsman modelled himself on the great<br />

Geoffrey Boycott: “I could bat all day and<br />

still not score many runs,” he laughs.<br />

You have to make the most of any<br />

opportunities that come your way,<br />

and throw yourself into whatever you<br />

do. But by the same token, keep life in<br />

perspective.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 18


BUDGET<br />


Time to dust off your old manuals?<br />

AUTHOR – Frances Coulson<br />

MANY of the initial reports<br />

of the budget<br />

streaming into your inbox<br />

will have cheered<br />

small businesses, focused<br />

as they were on<br />

income tax, digital commerce tax and business<br />

rates cuts. However in the world of insolvency<br />

and therefore in the wider credit<br />

arena, two areas of the budget sent shockwaves<br />

through the finance and insolvency<br />

professions and will have a radical effect on<br />

credit, business start-ups and rescue as well<br />

as the very concept of limited liability.<br />

First, the big announcement, in respect<br />

of which there was no prior warning<br />

or consultation (even, it seems within<br />

HMRC or BEIS) the resurrection of Crown<br />

preference in insolvency. The view is that<br />

VAT, Employers’ NIC, PAYE and CIS are<br />

all taxes collected on behalf of the Crown<br />

and therefore should not form part of the<br />

available funds for unsecured creditors in<br />

an insolvency. For example, Company A<br />

supplies Company B with widgets for £1,000<br />

plus VAT. Company B pays Company A<br />

£1,200 – £1,000 is for the widgets and £200<br />

is for Company B’s VAT payment which<br />

Company A should pay over to HMRC. So far<br />

so logical. However, in a real-life situation<br />

cash fluctuates and all the VAT, to take one<br />

example, is not sitting in a deposit account<br />

for HMRC but is used in the business of<br />

Company A. So long as Company A pays<br />

that VAT over to HMRC on the due date no<br />

problem, but if Company A is insolvent and<br />

the £200 is no longer there, the administrator<br />

or liquidator of Company A will realise its<br />

assets and, where appropriate, bring claims<br />

against directors to replenish the company<br />

pot for creditors. At present, aside limited<br />

preferential creditors such as employees,<br />

the company pot after payment of secured<br />

creditors is paid to the unsecured creditors<br />

– including HMRC – ‘pari passu’.<br />

In administration the Enterprise Act<br />

2002 which abolished Crown preference<br />

also made provision for a ‘prescribed part’<br />

carved out of floating charge realisations<br />

(as floating charge holders were getting<br />

a Crown windfall in the Crown no longer<br />

being preferential) of up to £600,000 for<br />

unsecured creditor then including the<br />

Crown. From 2020 it seems the prescribed<br />

part will change or go. In insolvent estates<br />

HMRC will rarely have trust money in the<br />

form of carefully preserved tax to recover<br />

so will eat into unsecured creditor returns<br />

generally.<br />

At the time of the Enterprise Act<br />

arguments were made that the abolition of<br />

Crown preference was good for business<br />

and for UK plc. They were right. The old<br />

order meant that HMRC were far too quick<br />

to liquidate and make a grab for their cash<br />

when in fact business rescue was feasible.<br />

This is a shortsighted move even if done in<br />

the name of the good of the taxpayer. What<br />

UK plc needs is a good flow of lending, a<br />

good rescue culture, and an efficient pursuit<br />

of those who trade at the expense of their<br />

creditors and fail. Instead lending and trade<br />

credit will tighten and the Crown might well<br />

find that its take goes down not up. All this<br />

at a time when businesses face the Brexit<br />

challenge. While the changes announced<br />

do not usurp the position of secured lenders<br />

with fixed charges, many of the challenger<br />

lenders who have proved so vital in SME<br />

lending do not have fixed charges and might<br />

look harder at their lending criteria.<br />


As if this wasn’t bad enough the other<br />

HMRC proposals, which were (briefly)<br />

consulted upon-and apparently universally<br />

condemned-in their ‘Tax Abuse in<br />

Insolvency’ paper, have also been adopted<br />

in the budget. These proposals allow<br />

HMRC – as Judge Jury and Executioner – to<br />

determine when a company is guilty of tax<br />

evasion or avoidance, or phoenixism, and<br />

look directly to directors for recovery. Again,<br />

this must tighten lending. The Treasury has<br />

previously been keen to resist any erosion of<br />

limited liability as a barrier to business, but<br />

it seems that this is all forgotten in a shortterm<br />

land grab by HMRC.<br />

Many now successful businesses<br />

have arisen from early failure. Would<br />

entrepreneurs try again so readily if their<br />

family home is on the line? Would a lender<br />

support them trying again or provide a<br />

distressed business with finance under the<br />

post 2020 regime? Less likely. Fewer and<br />

fewer businesses are built on fixed asset<br />

bases in the SME market. Floating charge<br />

and unsecured lending has enabled such<br />

business to thrive.<br />

Time to tighten your credit policies?<br />

These proposals allow<br />

HMRC – as Judge Jury<br />

and Executioner<br />

– to determine<br />

when a company is<br />

guilty of tax evasion<br />

or avoidance, or<br />

phoenixism, and look<br />

directly to directors<br />

for recovery.<br />

Frances Coulson<br />

Head of Insolvency and<br />

Litigation at Moon Beever<br />

Solicitors.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 19


Passport to Export<br />

How can best-practice credit management support<br />

international growth?<br />

AUTHOR – Lauren Carter FCI<strong>CM</strong><br />

WE live in uncertain<br />

times, and the<br />

invention of the<br />

all-seeing crystal<br />

ball is still on Elon<br />

Musk’s ‘to do’ list<br />

(perhaps). Political uncertainty is global:<br />

Brexit, Trump’s trade tariffs and China’s<br />

retaliation mean that politics is impacting<br />

international trade in every region of the<br />

world. Changes in global trade links on<br />

this scale are likely to have an increasingly<br />

disruptive effect in the coming years.<br />

But uncertainty and disruption also<br />

produce opportunity: as patterns of<br />

international trade shift, new doors open.<br />

Companies that are prepared to step into<br />

new markets can maximise their chances<br />

of capitalising on new opportunities and<br />

position themselves for success. While<br />

many companies are currently choosing<br />

to delay decisions in the short-term, this<br />

needs to be balanced against the risk of<br />

missing a window of opportunity that<br />

change on this scale can bring.<br />

Companies thinking of trading in new<br />

countries need to know how to expand<br />

their operations into these areas, and the<br />

credit function has a clear role to play<br />

in managing the risk associated with<br />

this. Here we look at factors that can<br />

help credit managers deliver strategic<br />

and operational advantage in unfamiliar<br />

territories.<br />


Knowledge of political, social and<br />

economic conditions is essential for good<br />

credit management. A country’s sovereign<br />

risk impacts trade at a national level, so it<br />

is important to be aware of the operating<br />

environment. A PESTLE analysis is a<br />

useful tool to aid the understanding of<br />

the factors at play, and staying abreast of<br />

current affairs gives global context to the<br />

trading relationships being set up.<br />

Knowledge of local market conditions<br />

is also important. Not all competitors<br />

operate in all territories, so who are the<br />

local competition? What trading terms<br />

do they offer? How does their offering<br />

compare and what advantages does your<br />

company have? Credit management<br />

always happens within the business<br />

context and so it is essential for credit<br />

managers to understand the strength of<br />

their commercial position on a local basis.<br />


Entering a new territory should trigger<br />

a review of risk strategy, as it needs to<br />

be adjusted to match the new trading<br />

conditions. New countries may have very<br />

different market conditions, requiring a<br />

new approach to commercial risk. Even<br />

if market conditions are similar, the<br />

competitive forces at play in entering<br />

a new market may require a riskier<br />

commercial position, such as loss leaders<br />

and penetration pricing. Take the time<br />

to set your risk appetite and set out the<br />

policies that naturally follow from that.<br />

For example, if local competition means<br />

you have to set your prices lower, then<br />

a reduction in payment terms will help<br />

support profit margins. Alternatively, if<br />

the company needs to accept a greater<br />

level of credit risk in order to support<br />

growth, then ensure that the bad debt<br />

provision is a true reflection of the<br />

commercial position.<br />


The credit policy formalises a company’s<br />

approach to credit and sets out the<br />

processes that will be used, so consider<br />

how this needs to be adapted to include the<br />

needs of trading in the new territory. Set<br />

out what currencies you will accept, and<br />

consider whether a local bank account is<br />

needed. Consider what payment methods<br />

will be accepted, as payment platforms<br />

can have regional prevalence, such as<br />

Alipay in China. Currencies and platforms<br />

may bring a greater risk exposure, but<br />

can be a source of competitive advantage<br />

by making the trading relationship<br />

easier for the customer, so link this into<br />

a commercial strategy. Consider revising<br />

KPIs to ensure they drive performance in<br />

the appropriate way. If payment terms are<br />

reduced, there should be a corresponding<br />

reduction in DSO targets. Bad debt targets<br />

need to be adjusted if the level of risk has<br />

changed.<br />

New territories can require the company<br />

to adopt a different organisational<br />

structure or distribution channel, and<br />

so decisions need to be made to ensure<br />

that roles and responsibilities are clear.<br />

Will the credit team undertake customer<br />

visits, and if so, who will they visit and how<br />

frequently? The policy also needs to set<br />

out who is responsible for accepting the<br />

risk of exceptional transactions for the<br />

territory, who has the authority to put customers<br />

on stop, and who needs to attend<br />

internal risk review meetings.<br />


Contracts need to be adapted when trading<br />

in a new country. The requirements for<br />

executing a contract differ around the<br />

world, with some countries needing only<br />

verbal acceptance and others needing a<br />

signed or double signed agreement. Other<br />

countries require a contract to be stamped<br />

with a company stamp. This is important<br />

because in the event of non-payment, a<br />

debt cannot be legally enforced if it is not<br />

supported by a valid contract.<br />

In some countries, an email is sufficient<br />

to form a valid contract, and in others<br />

email is not considered legally binding.<br />

Electronic signature of agreements is<br />

widely but not universally accepted, so<br />

check local precedents before this method<br />

of contracting is deployed as standard<br />

(docusign.com/how-it-works/legality/<br />

global) is a good resource for this.<br />

If you use personal guarantees,<br />

make sure that you understand the<br />

requirements for how this needs to be<br />

drafted and implemented in order to be<br />

legally enforceable in your new territory.<br />

Jurisdictional clauses also need to<br />

be tailored to international trading.<br />

Prescribing that the company’s ‘home’<br />

law governs a contract gives some degree<br />

of certainty over legal risks, however can<br />

restrict debt recovery options. Specifying<br />

that legal action can be brought in a<br />

customer’s jurisdiction can make recovery<br />

quicker and cheaper, so a non-exclusive<br />

clause can be beneficial. Ensure that<br />

whatever is used supports the company<br />

strategy and consider all of the risks.<br />


Developing a knowledge of a few key facts<br />

about a country can help an organisation<br />

avoid common pitfalls. For example,<br />

an understanding of the legal forms of<br />

companies in each country will help in<br />

assessing risk and determining what<br />

assets can be levied in a non-payment<br />

situation; and knowing the relevant<br />

limitation period enables a collections<br />

approach designed to avoid unnecessary<br />

write-offs. In some countries, debt is time<br />

barred after two years so overdue accounts<br />

need to be escalated in a timely manner.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 20


AUTHOR – Lauren Carter FCI<strong>CM</strong><br />

While many companies are currently choosing to<br />

delay decisions in the short-term, this needs to be<br />

balanced against the risk of missing a window of<br />

opportunity that change on this scale can bring.<br />

Companies selling services need to<br />

be aware that cancellation fees are not<br />

enforceable in some jurisdictions where<br />

there is no provision for a charge where<br />

no service has been rendered. Companies<br />

selling goods need to be aware of local<br />

retention of title (RoT) regulations. Most<br />

countries do acknowledge RoT clauses,<br />

but there are variations in the ease of<br />

implementation and the requirements on<br />

the creditor to notify, so be aware of how<br />

this works.<br />

Finally, a basic understanding of the<br />

local insolvency framework is likely to be<br />

needed, particularly for companies who<br />

tolerate a higher degree of credit risk. An<br />

understanding of the types of insolvency<br />

processes available, and the requirements<br />

and deadlines associated with these<br />

processes will help to maximise the<br />

return to the creditor.<br />

Lauren Carter<br />


Building relationships is a key part of<br />

good credit management and is essential<br />

when entering a new territory. Strong<br />

customer relationships are as important<br />

as ever, but additionally, relationships<br />

with local partners such as distributors<br />

and shippers can be valuable as a<br />

source of information. Discussions with<br />

collections partners at an early stage<br />

give an opportunity to develop SLAs<br />

tailored to suit the local processes in the<br />

new territory, and to learn from their<br />

in-country experiences.<br />

Contacts can also help to develop<br />

an understanding of local culture<br />

and conditions. It is likely that sales<br />

colleagues will have already travelled to<br />

the new country and can provide valuable<br />

information to the credit team. Informal<br />

discussions with people in your network<br />

can also be a good source of advice and<br />

information on local culture and trading<br />

conditions.<br />

These uncertain times can produce<br />

exciting and profitable opportunities to<br />

those who are prepared to venture into<br />

new markets. I hope these ideas will be<br />

useful to credit managers in supporting<br />

businesses in their strategic goals through<br />

these times of change.<br />

Lauren Carter FCI<strong>CM</strong> is Managing<br />

Director of Vantage Credit<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 21

CI<strong>CM</strong>Q<br />

Teamwork at the heart<br />

Equinix<br />

EQUINIX connects the world’s<br />

leading businesses to their<br />

customers, employees and<br />

partners inside the world's most<br />

connected data centres.<br />

More than 7,000 employees work in some<br />

44 markets across five continents, and<br />

have achieved 62 consecutive quarters of<br />

revenue growth. In August <strong>2018</strong> quarterly<br />

revenues had increased 18 percent year-onyear<br />

to $1.262 billion.<br />

“By involving the team to fully participate<br />

and project manage the accreditation<br />

journey, our people are more engaged<br />

and learn new skills along the way,” says<br />

Nick Williams MCI<strong>CM</strong>, Senior Manager<br />

(EMEA), Credit and Collections Equinix.<br />

“The team members were able to give<br />

“AS part of the development of the<br />

apprentices in our credit academy,<br />

we decided that they should take<br />

responsibility for organising the reaccreditation,”<br />

says Phil Rice FCI<strong>CM</strong>, Head<br />

of Credit, Aggregate Industries. “This was<br />

a challenge because they had never done<br />

anything like this before, but we felt it was<br />

good experience and essential as part of<br />

their development. They also went on to<br />

present their experience at a CI<strong>CM</strong>Q best<br />

practice event.”<br />

The company has a full-time<br />

complement of 34 in the credit services<br />

team that handle inbound payments,<br />

their input based around their practical<br />

experience of our operations and that<br />

makes the processes more robust and fit for<br />

purpose.<br />

“I experienced how proud each individual<br />

feels to be part of the process leading up<br />

to the accreditation, and the jubilation it<br />

brings when you are successful. It was my<br />

target to gain the accreditation within two<br />

years of joining Equinix and I am pleased to<br />

say we did it within 16 months.”<br />

Pam Thomas FCI<strong>CM</strong>, CI<strong>CM</strong>Q Assessor,<br />

said in her report: “Good controls<br />

and policies together with strong<br />

communication continue to be a key<br />

activity in the department. This ensures<br />

that disputes and queries are kept to a<br />

minimum and overdue debt is reduced.”<br />

Apprentices lead the charge<br />

Aggregate Industries<br />

allocation, credit risk, cash collection and<br />

legal. A number are undertaking Level 3<br />

and Level 5 CI<strong>CM</strong> qualifications, and each<br />

has to complete 18 hours CPD each year and<br />

attend an industry conference or workshop.<br />

They also actively participate in CI<strong>CM</strong>Q<br />

workshops and exchange staff with other<br />

CI<strong>CM</strong>Q accredited companies so they can<br />

gain experience and share best practice.<br />

“There have been a significant number<br />

of major developments in the team<br />

since Aggregate Industries completed<br />

its first QI<strong>CM</strong>/CI<strong>CM</strong>Q Accreditation in<br />

2010,” says Chris Sanders FCI<strong>CM</strong>, Head of<br />

Accreditation – CI<strong>CM</strong>Q.<br />

The Right Energy<br />

GAZPROM Energy, the award-winning<br />

supplier backed by one of the world’s<br />

largest energy companies, has achieved<br />

CI<strong>CM</strong>Q accreditation following an<br />

impressive assessment performance<br />

in which it delivered an extremely<br />

detailed and high-level evidence file,<br />

accompanied by support from key<br />

stakeholders within the business.<br />

Sharon Noland MCI<strong>CM</strong>, Credit Risk<br />

Manager at Gazprom Energy, says that<br />

education and future training is crucial<br />

to the organisation: “The company<br />

culture places a lot of emphasis on<br />

people, development and recognition,<br />

which has been very successful and<br />

something we will look to continue.”<br />

Gazprom Energy has 350 employees<br />

operating across three countries,<br />

supplying over 30,000 industrial and<br />

commercial customers across the UK.<br />

Their parent company, Gazprom, are<br />

responsible for 13 percent of global gas<br />

production.<br />

Injection of Quality<br />

PIONEERS in the development of blood<br />

glucose monitoring systems, Roche<br />

Diabetes Care, excelled in a number<br />

of areas during CI<strong>CM</strong>Q accreditation,<br />

including outstanding training and<br />

development plans for staff.<br />

Roche Diabetes Care, part of the<br />

Roche group, was created in 2014 for<br />

the import, market and distribution of<br />

diabetes care equipment, associated<br />

consumables and value adding services<br />

to the UK and Irish healthcare markets.<br />

It employs over 150 people across the<br />

UK and Ireland, and last year reported a<br />

turnover circa £79 million.<br />

Christelle Madie, FCI<strong>CM</strong>(Grad), MSc<br />

Credit Solutions Manager at Roche<br />

Diabetes Care says: “Our aim is to keep<br />

the bar high and continually improve;<br />

the opportunity to access a wider bank<br />

of knowledge through the Best Practice<br />

network is a key advantage of CI<strong>CM</strong>Q.<br />

There is also a keen and growing<br />

interest within the team to embark<br />

on CI<strong>CM</strong> training courses and attend<br />

professional forums.”<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 22

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The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 23<br />



Victory for law and<br />

common sense<br />

Payments due in construction contracts can be<br />

very complicated and a cause of disputes – not easy<br />

for credit managers.<br />

AUTHOR – Peter Walker<br />

IF you should see me in London’s<br />

Leicester Square, I am usually<br />

going to the neighbouring<br />

Chinatown for a meal of Chinese<br />

dim sum, but a winding-up petition<br />

relating to the development and<br />

conversion of Victory House in the Square<br />

instead was recently the concern of a High<br />

Court judge. A creditor, the contractor,<br />

had petitioned for the winding-up of the<br />

employer because of non-payment of over<br />

£800,000 awarded by an adjudicator of an<br />

arbitration.<br />

An unusual element of the case was<br />

that the debt was not disputed, but it was<br />

part of a complicated transaction. The<br />

complication was a counter-claim for more<br />

than the outstanding amount.<br />

The dispute itself arose from a<br />

contractor’s application for an interim<br />

payment under a building contract to<br />

develop and convert Victory House into<br />

a hotel. The contract was governed by<br />

the JCT Design and Build Contract 2011,<br />

and the agreement referred to interim<br />

payments and pay-less notices should<br />

there be disputes about the instalments.<br />

There is also legislation such as the Scheme<br />

for Construction Contracts (England and<br />

Wales) Regulations 1998 (SI 1998/649).<br />

These agreements are very complicated:<br />

credit management is very difficult.<br />

The debtor, or employer of the<br />

contractor, therefore challenged the<br />

petition for winding up, and it had made<br />

what is called a Part 8 Application under<br />

the Civil Procedure Rules. A claimant may<br />

use this procedure, where it firstly ‘seeks<br />

the court’s decision on a question which<br />

is unlikely to involve a substantial dispute<br />

of fact’. There may alternatively be a<br />

specified type of proceedings, although this<br />

seemingly did not apply to this situation.<br />

The situation was a building contract<br />

providing for stage payments. The<br />

contractor was to obtain a transformer<br />

or substation from the relevant statutory<br />

authority. Once this had been installed,<br />

work could begin to commission the hotel’s<br />

electrical and mechanical services.<br />


An arbitration and High Court judges<br />

indicate that there were problems. These<br />

included delays and a disagreement<br />

about the entitlement of the contractor<br />

to an interim or stage payment. In<br />

March 2017 the parties to the agreement<br />

tried to resolve the dispute by means<br />

of a Memorandum of Understanding<br />

acknowledging the delays. This included<br />

the information that the contract price<br />

was around £6.6m, but the employer had<br />

paid just over £8 million. The contractor<br />

wanted more funds to complete the job.<br />

The Memorandum allowed for three stage<br />

payments of £200,000 each.<br />

The first two payments were made,<br />

and in June 2017 there was an operating<br />

transformer. The contractor then applied<br />

for a payment under the main contract.<br />

The amount was just over £682,000<br />

plus VAT. The employer objected, and<br />

it asserted that payments were now<br />

governed by the Memorandum.<br />

Time for arbitration! There were<br />

plenty of issues including the allegation<br />

that the third payment required by the<br />

Memorandum had not been made. The<br />

Adjudicator decided that it was legally<br />

binding, but importantly that it did not<br />

supersede the building contract. The<br />

Memorandum suspended the obligation<br />

to make interim payments under that<br />

contract until the transformer had been<br />

installed. The employer should therefore<br />

pay the amount demanded plus of course<br />

interest until the date of payment.<br />


The employer then decided to appeal to<br />

the Technology and Construction Court<br />

in the High Court, where in November<br />

2017 Joanna Smith QC sitting as a deputy<br />

judge reviewed the facts in Victory House<br />

General Partner Ltd v RGB P&C Ltd<br />

[<strong>2018</strong>] EWHC 102 (TCC). The employer<br />

asserted that there had been a breach of<br />

natural justice, and it suggested that the<br />

adjudicator had gone ‘on a frolic of his<br />

own’.<br />

Joanna Smith QC responded by<br />

referring to the judgment in Cantillon<br />

Ltd v Urvasco Ltd [2008 EWHC 282<br />

(TCC), which stated the obvious, that an<br />

adjudicator must be shown to have failed<br />

to apply the rules of natural justice. The<br />

breaches must be material such as where<br />

the adjudicator has failed to bring to the<br />

attention of the parties an important<br />

issue. An adjudicator’s frolic would apply,<br />

for example, if he or she decided on a<br />

factual or legal issue not argued by either<br />

side.<br />

Edwards-Stuart J in Roe Brickwork Ltd<br />

v Wates Construction Ltd [2013] EWHC<br />

3417 (TCC) refined this ruling. It would<br />

be acceptable for an adjudicator to decide<br />

on the information before him or her,<br />

although neither party had contended it.<br />

They must, however, have been aware of<br />

the material.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 24


AUTHOR – Peter Walker<br />

On the facts in front of her Joanna<br />

Smith QC, in her judgment in January<br />

<strong>2018</strong>, rejected the contention that the<br />

arbitrator had failed to apply the rules<br />

of natural justice. The parties had, for<br />

example, made submissions regarding<br />

the Memorandum of Understanding.<br />

There were other considerations, and<br />

the adjudicator had furthermore posed<br />

specific questions to the parties, who<br />

had the opportunity to answer. Part 8<br />

Procedure was not appropriate in a claim<br />

including disputed facts.<br />


The adjudication debt, however, as<br />

ordered by Joanna Smith QC was unpaid<br />

in February <strong>2018</strong>, so the contractor<br />

petitioned to wind up the employer.<br />

The employer applied in the Chancery<br />

Division of the High Court, to strike out<br />

the petition. Morgan J in the resulting<br />

case In re Victory House General Partner<br />

Ltd [<strong>2018</strong>] 3 WLR 1024 noted that there was<br />

other litigation, not about the judgment<br />

debt, but about a liability to make a<br />

further payment under the contract.<br />

The contractor, for example, had made<br />

an application for a further payment of<br />

around £3 million, and the absence of any<br />

payment resulted in another adjudication.<br />

The adjudicator significantly decided that<br />

the value of the work done was around £7<br />

million, but that the contractor had been<br />

paid around £8.5 million, i.e. there had<br />

been an overpayment.<br />

This did not end the dispute, because<br />

the employer, not the contractor, initiated<br />

a third arbitration. It claimed that there<br />

were defects in the work.<br />

Morgan J considered this background<br />

to the contractor’s winding-up petition.<br />

He noted that, if the employer paid<br />

the judgment debt resulting from the<br />

first arbitration, it would have a crossclaim<br />

against the contractor due to the<br />

overpayment found by the adjudicator in<br />

the second arbitration.<br />

He turned for guidance to the decision<br />

of Coulson J in Grove Developments Ltd<br />

v S&T (UK) Ltd [<strong>2018</strong>] EWHC 123 (TCC).<br />

This case concerned the construction<br />

of a new hotel at Heathrow Terminal 4.<br />

There was a completion date of October<br />

2016, but the project was not ready until<br />

March 2017. There were three subsequent<br />

adjudications. The first decided that a<br />

Schedule of Amendments was part of the<br />

contract. The second decided that the<br />

contractor was entitled to an extension<br />

of time, but only until January 2017. The<br />

third arose from the employer’s pay-less<br />

notice in response to the contractor’s<br />

application for a stage payment. This is<br />

important to credit management, because<br />

if an employer does not serve such a notice<br />

on time, it is deemed to have accepted<br />

the valuation. This is known as a smashand-grab<br />

claim, whereby a contractor<br />

claims payment of the sums in their<br />

interim application without regard to the<br />

employer’s assessment as to its validity.<br />

The third arbitration concluded that it was<br />

not entitled to do so with the result that<br />

the contractor was entitled to £14 million.<br />

The employer finally started a Part<br />

8 Application, but Coulson J ruled that<br />

the pay-less notice was effective. It was<br />

accompanied by a spreadsheet detailing<br />

the sum to be paid. Coulson J added<br />

that upon payment the employer could<br />

apply for an adjudication of the true sum<br />

due. It could then make a claim for any<br />

consequent financial adjustment.<br />


There are consequently no short cuts when<br />

the other party has what Nourse LJ in the<br />

Court of Appeal described as ‘a genuine<br />

and serious cross-claim’. He did not have<br />

to deal with a Part 8 Application, but he<br />

was considering an undisputed debt case<br />

In re Bayoil SA [1999] 1 WLR 1471. Bayoil<br />

had chartered a tanker, but there were<br />

problems with the tanker’s engines and<br />

with the voyage generally. There were<br />

disputes resulting in an arbitration, and<br />

the ship’s owner was awarded over $1<br />

million. When there was a subsequent<br />

petition to wind up Bayoil, it did not<br />

dispute the debt, but its counterclaim<br />

exceeded the awarded amount.<br />

Nourse LJ proceeded cautiously, and he<br />

pointed out the potentially serious effects<br />

of a winding-up order. It was ‘draconian’,<br />

and if it was wrongly made, a company<br />

would have little chance of revival.<br />

Morgan J in the Victory House case<br />

followed this reasoning. The amount<br />

awarded by the adjudicator was not<br />

disputed, but the employer had a<br />

substantial bona fide cross-claim based<br />

on the alleged overpayment. The judge<br />

therefore dismissed the winding-up<br />

petition.<br />

A victory for law and common sense!<br />

A Part 8 Application or winding-up<br />

petition can be the correct procedure<br />

after the award of an undisputed and<br />

unpaid judgment debt, but there are no<br />

procedural short cuts if the debtor has a<br />

justifiable cross-claim. Where there are<br />

complicated building and other contracts<br />

involving stage payments, credit managers<br />

must monitor them carefully.<br />

Peter Walker is a freelance business<br />

writer.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 25

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A true collaboration<br />

Working with UK Export Finance to implement the<br />

Government’s Export Strategy.<br />

AUTHOR – Lesley Batchelor OBE FCI<strong>CM</strong><br />

Lesley Batchelor<br />

OVER the summer the<br />

Government announced<br />

its intention to increase<br />

exports as a proportion<br />

of GDP from 30 percent<br />

to 35 percent. Export<br />

volume has started to increase in the last<br />

couple of years and though much more<br />

work needs to be done to increase national<br />

trade confidence among the UK’s SMEs in<br />

particular, a start has been made towards<br />

making the UK a greater exporting nation.<br />

One of the real success stories of<br />

recent years has been the Government’s<br />

broadening of the support provided<br />

by its export credit agency UK Export<br />

Finance (UKEF). In the past UKEF has<br />

been criticised for serving mostly larger<br />

corporates, however, over the last five years<br />

this has changed. Indeed, in the last five<br />

years it’s provided £14 billion of support to<br />

UK exports in partnership with banks and<br />

brokers.<br />

Its mission is ‘to ensure that no viable<br />

UK export fails for lack of finance or<br />

insurance, while operating at no net cost<br />

Its mission is ‘to ensure<br />

that no viable UK export<br />

fails for lack of finance or<br />

insurance, while operating<br />

at no net cost to the<br />

taxpayer’.<br />

to the taxpayer’, and recently it’s been<br />

moving much more efficiently towards<br />

this end-goal.<br />

At the Institute of Export &<br />

International Trade (IOE&IT) we are<br />

proud of the part we’ve played in this<br />

burgeoning national success story. We<br />

have partnered with UKEF on an ‘Award<br />

in Trade Finance’ qualification, which all<br />

UKEF, Foreign & Commonwealth Office<br />

(FCO) and Department for International<br />

Trade (DIT) staff take to ensure thorough<br />

product knowledge. This creates an<br />

understanding of how these financial<br />

products fit within a commercial setting<br />

in all sizes of business.<br />

Once this is completed, staff can move<br />

on to a Level 5 Diploma in International<br />

Trade which ensures they understand the<br />

fuller context of international trade when<br />

advising companies on key international<br />

business tasks such as international<br />

physical distribution, international<br />

marketing strategy, and of course the<br />

financing of international trade. We do so<br />

in such a way that ties in effectively with<br />

UKEF’s core offerings and services.<br />

For instance, in the part of the course<br />

in which we train UKEF advisers in how<br />

to ensure the security of international<br />

payments, as well as covering key areas<br />

like currency risk, open account trading<br />

and documentary letters of credit, we also<br />

explain how UKEF’s Export Insurance<br />

Policy can be applied. When training<br />

UKEF advisers in how international<br />

working capital cycles work and the role<br />

of bonds and guarantees in supporting<br />

export trade, we also address how UKEF’s<br />

Export Working Capital Scheme is used<br />

to support UK exporters. And we also<br />

evaluate how UKEF’s medium and longterm<br />

export finance support services are<br />

applied, including Buyer Credit, Supplier<br />

Credit, and Direct Lending.<br />


Not only do we train UKEF’s advisers, but<br />

all of the UKEF managers are members of<br />

the Institute, meaning they receive daily<br />

bulletins about the key developments<br />

in trade, have access to our Technical<br />

Helpline, and can constantly stay on<br />

top of things through our CPD scheme;<br />

our support network and the access to<br />

knowledge and skills we provide have<br />

proved invaluable.<br />

Elizabeth McCrory, an Export Finance<br />

Manager at UKEF who works in Northern<br />

Ireland, recently told me: “As a local point<br />

of contact for exporters I am helping<br />

them to get a better understanding<br />

of their export finance requirements<br />

and, where possible, I’ll identify an<br />

appropriate solution to support their<br />

export transactions. The Diploma in<br />

International Trade has given me a<br />

broader understanding of International<br />

Trade. Being a graduate member of the<br />

IOE&IT gives me added accreditation<br />

and I’m delighted to use the letters MIEx<br />

(Grad) after my name.”<br />


At our recent World Trade Summit event<br />

in London, we were delighted to be<br />

joined by Louis Taylor, Chief Executive<br />

of UKEF, and Baroness Fairhead CBE, the<br />

Minister of State for Trade and Export<br />

Promotion. Both of these key decisionmakers<br />

made the point that this can only<br />

be the beginning for UKEF, and as the<br />

Department for International Trade looks<br />

to go about producing its second Export<br />

Strategy in as many years, the role of UKEF<br />

looks certain to become even greater.<br />

Our work with UKEF is a great<br />

testament to the importance that<br />

education and training has in any export<br />

strategy as our trade advisers can only do<br />

the job of supporting UK businesses into<br />

international trade if they know how it’s<br />

done themselves. We are always keen to<br />

forge relationships, like the one we have<br />

with UKEF, because it is only through<br />

driving the export skills agenda that any<br />

strategy becomes achievable.<br />

Lesley Batchelor OBE FCI<strong>CM</strong> is Director<br />

General of The Institute of Export and<br />

International Trade.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 27


TRADE<br />

Monthly round-up of the latest stories<br />

in global trade by Andrea Kirkby.<br />

AFTER months of slightly<br />

nervous trading, the stock<br />

market finally gave way to its<br />

jitters at the start of October.<br />

The S&P 500 lost six percent<br />

in a few days, giving up all but two percent<br />

of its gains for the year, with more than one<br />

commentator suggesting that the tenth<br />

anniversary of the 2008 credit crunch could<br />

see an even bigger crisis.<br />

Certainly, the oil price increase together<br />

with increasing interest rates look similar<br />

to the backdrop to the credit crunch. So,<br />

Stock market sell-off<br />

does the increase in real estate prices since<br />

the trough. But it's trade tensions that were<br />

at the forefront of investors' minds as a<br />

reason for the shock mini-crash; a new cold<br />

war with China would have very serious<br />

repercussions for world economies.<br />

How serious? Don’t get too alarmed. I<br />

saw a report that suggested Euler Hermes<br />

had said global trade would fall 50 percent<br />

by 2020. In fact, Euler Hermes says global<br />

trade growth could fall 50 percent from four<br />

percent to two percent; that's not quite the<br />

same. There are also some technical reasons<br />

for the stock market slump. Rising interest<br />

rates have pushed up yields on bonds.<br />

That's resulted in many investors dumping<br />

their equity holdings to invest in bonds<br />

which deliver the same return for less risk.<br />

Meanwhile, a fund manager at BlackRock<br />

says hedge funds are unwinding 'crowded'<br />

positions – which while it's a reminder of<br />

the risks inherent in the financial system,<br />

isn't really a forecast for the world economy.<br />

What to do? I think I saw the best advice<br />

on a tea towel a few days ago. ‘Keep calm<br />

and carry on.’<br />

Dollar reverse…and changing trade patterns<br />

THE dollar had been strengthening for<br />

a good long while, but that's all over<br />

now. The dollar has suddenly taken on<br />

board the negative prospects for world trade<br />

of a Trump-Xi standoff, resulting in a weeklong<br />

slump against other currencies that<br />

even a Fed rate hike couldn’t stop. While it's<br />

a bit early to bet against the US, I wouldn't<br />

mind betting Donald Trump’s trade war will<br />

result in more damage to his own country<br />

than to China.<br />

It's interesting to see other countries<br />

taking advantage of the situation to improve<br />

their own trade with China. Brazil is<br />

exporting more and more soybeans, and the<br />

'stans' as well as Qatar and Kuwait, who are<br />

focusing more attention on China trade.<br />

It’s not a tectonic shift yet, but if the<br />

standoff continues, it could bring China<br />

more and more into the mainstream of<br />

global trade and make it ever more present<br />

in global supply chains. And those are<br />

the kind of changes that aren't easy to<br />

reverse.<br />


THE munificent Jeff Bezos has given Amazon<br />

employees a generous pay rise. An act of pure<br />

generosity? If you’re a cynic, you’d note that<br />

the US labour market is getting very tight; add<br />

two and two together, and you see Amazon<br />

firing a shot across other employers’ bows to<br />

make sure it gets the pick of the crop.<br />

Tight labour markets and rising oil prices,<br />

together with higher interest costs, haven't yet<br />

put the squeeze on consumers or corporates<br />

– but they’re likely to do so over the medium<br />

term. The last couple of months’ inflation<br />

figures from most major economies show<br />

a slight fall in inflation, but don’t be fooled;<br />

inflation is becoming even more of a risk. That<br />

will push central banks to guard against it<br />

by increasing interest rates – and that could<br />

affect currencies, too.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 28

Fallen angels in the making<br />

FIRMS need to watch out for rising interest<br />

rates and inflation. Hikes in interest rates<br />

haven't hurt consumers or corporates yet,<br />

but they will, eventually, put increasing<br />

numbers of companies under pressure.<br />

The damage won't be evenly distributed.<br />

Bond Vigilantes blog identifies some<br />

interesting wrinkles in the ways some<br />

highly indebted companies might be<br />

affected; for instance, some companies<br />

have issued non-investment-grade<br />

bonds with covenants that won't let<br />

them pay dividends unless they have<br />

below a specified leverage ratio, or above<br />

a certain level of interest cover. Quite a<br />

few shareholders run the risk of a major<br />

disappointment in their high-yield<br />

portfolios. Now, you may think that this<br />

is only of interest to finance enthusiasts,<br />

a sector of the population I'll reluctantly<br />

admit I belong to. But actually, there is a<br />

lesson for all credit control departments,<br />

which is not just to rely on the headline<br />

financial information when you're<br />

assessing customers' ability to pay. Do your<br />

research, attach the notes to the accounts,<br />

and make sure you know exactly where you<br />

rank for your pay-out if the worst happens.<br />




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East Africa – booming but risky<br />

EAST African countries are seeing great<br />

GDP growth at the moment; Ethiopia's<br />

growing by eight percent, Kenya by six<br />

percent, and all the East African countries<br />

scoring above the average for sub-Saharan<br />

Africa. Infrastructure development has<br />

been fast and is improving the prospects<br />

for business – once you get reliable 24-hour<br />

electricity, it transforms manufacturing<br />

business's ability to compete – and the<br />

lives of citizens.<br />

But that infrastructure comes at a high<br />

cost; public deficits have been going up all<br />

over the region, and according to Credendo,<br />

what makes matters worse is that these<br />

deficits have been funded by external<br />


IF you were asked for a great export prospect, Russia might not be your first thought –<br />

but it’s not looking that bad. True, expected growth is rather modest at 1.5 percent, and<br />

there’s a high level of business insolvencies, but the country is managing to do reasonably<br />

well despite sanctions. Exports have been diversified, and the manufacturing sector has<br />

strengthened. Russia has also kept an even keel with relatively prudent management of<br />

government finances. Improving oil prices should help this commodity rich country, too.<br />

So far, so good.<br />

debt (though Ethiopia and Tanzania have<br />

managed to attract significant foreign<br />

investment, which reduces their exposure).<br />

Many of the components have to be<br />

imported – there is no local semiconductor<br />

or telecoms manufacturing industry, for<br />

example. And while eventually the export<br />

sector should grow, right now most of<br />

these countries are limited to commodity,<br />

primary exports.<br />

So, there's great potential in these<br />

markets, but also big risks, particularly<br />

in the government sector. Moody's<br />

downgraded Kenya's credit rating earlier<br />

this year, and has Tanzania on a negative<br />

outlook, so mind how you go.<br />



ELGOODS brew some great beers in the middle<br />

of the Fens, which most people will tell you<br />

is pretty much the middle of nowhere. Until<br />

2015, they didn't export. Now, they export<br />

to ten countries, have been on four trade<br />

missions, and are just starting to export to<br />

Argentina, which they expect will double their<br />

international sales. Their next target? Japan.<br />

That's a great success story. But it's<br />

interesting that their biggest problem has<br />

been finding reliable buyers. Not marketing,<br />

not changing the product, or labelling, but<br />

just finding the right partners abroad. Never<br />

forget, when you’re running the slide rule over<br />

customer credit, you're dealing with the future<br />

of your business.<br />


A TONIC?<br />

UK gin manufacturers sold £1.6 billion<br />

worth of gin in the year to June <strong>2018</strong>, and<br />

£532 million of that was exported. British<br />

gin is on a roll right now with a surge of<br />

popularity helping everyone from the biggest<br />

manufacturers to tiny artisan start-ups.<br />

One big lesson from this? Clustering. Once<br />

an industry starts making a name for itself<br />

in export, it’s that much easier for the next<br />

exporter to get into the market. We’ve done it<br />

in gin – can we do it in other sectors too?<br />

Global geography reappraised<br />

SOMETIMES we trust statistics too much,<br />

particularly when it comes to average. For<br />

instance, do you know anyone who actually<br />

earns the average UK salary?<br />

That's why I liked Euler Hermes' latest<br />

analysis of global corporate debt. Average<br />

net gearing across the world is 53 percent –<br />

but that's about as useful as knowing global<br />

average rainfall or average temperatures. If<br />

you're in South Africa, you will get higher<br />

temperatures – but also the world's least<br />

indebted corporates, with only 38 percent<br />

gearing. (Poland and Australia come close<br />

with 43 percent and 41 percent respectively.)<br />

Alternatively, if you're looking for trouble<br />

to steer clear of, Southern Europe looks like<br />

a hotspot of debt. Portugal has an impressive<br />

96 percent average leverage, with Greece at<br />

68 percent and Spain at 69 percent. Turkey,<br />

at 72 percent, doesn't look as exposed as<br />

Portugal until you think about its high<br />

budget deficit and the rising oil price.<br />

The same goes for sectors – some are<br />

horribly indebted, others not. Paper, transport<br />

and textile sectors are the chief trouble<br />

spots, but there is some good news in store<br />

– energy and metals companies are actually<br />

improving, though still with fairly high debt<br />

levels. Of course, these are still only averages.<br />

Even if you're exporting within a highly<br />

indebted sector and to a highly indebted<br />

country, you can at least choose the most<br />

credit-worthy customers and beat the odds.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 29


The mechanics and<br />

legalities of doing<br />

business in Ireland.<br />

AUTHOR – Adam Bernstein<br />

Ireland: Part two<br />



The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 30


AUTHOR – Adam Bernstein<br />

WITH a framework<br />

not too dissimilar<br />

from that of the UK,<br />

little of the process<br />

should be much<br />

of a surprise to<br />

exporters. Ireland allows businesses to<br />

operate through companies (there are ten<br />

variants from private limited companies,<br />

public limited companies and Societas<br />

Europaea). These of course come with the<br />

usual regulatory duties to report and file<br />

on a public register. The duties placed on<br />

directors are similar to those placed on UK<br />

directors under Companies legislation.<br />

Partnerships are also available to those<br />

wanting to carry on business between<br />

two or more people (without the need for<br />

any formal registration). As in the UK,<br />

partners have unlimited personal liability<br />

for business debts. Again, as in the UK,<br />

a hybrid model exists of limited liability<br />

partnerships where partners are only liable<br />

to the limit of their investment.<br />


Businesses that depend upon IP rights<br />

benefit from practical protection under<br />

Irish law. Some consider that the Irish<br />

Trade Marks Act 1996 and the Copyright<br />

and Related Rights Act 2000 to be state<br />

of the art legislation which offer better<br />

protection than that afforded by other<br />

European states.<br />

Irish law meets the requirements of the<br />

Berne Convention, the TRIPS Agreement<br />

and the 1996 Geneva Copyright treaties,<br />

as well as all relevant IP EU directives.<br />

Considering that Ireland is one of the<br />

world’s largest exporters of software it’s<br />

not surprising that appropriate protections<br />

have been enshrined in Irish law to protect<br />

these IP rights. The regime is overseen by<br />

the Irish Patents Office at patentsoffice.ie/.<br />


As in the rest of the EU, employment law<br />

applies to those working in Ireland, no<br />

matter what their nationality.<br />

Employment law is governed by a<br />

multitude of laws – the Constitution of<br />

Ireland 1937; Irish statutes and EU law;<br />

judicial precedents; common law (including<br />

contract law); statutory regulations that<br />

cover health and safety, redundancy<br />

payments, transfers of undertakings,<br />

collective bargaining agreements; as well<br />

as custom and practice in the workplace<br />

and workplace or industry rules.<br />

The primary legislation regulating<br />

employment includes the Unfair Dismissals<br />

Acts 1977 to 2015; Employment Equality<br />

Acts 1998 to 2015; National Minimum Wage<br />

Act 2000 and the Payment of Wages Act<br />

1991; Terms of Employment (Information)<br />

Acts 1994 to 2012; Maternity Protection<br />

Acts 1994 to 2004 and other protective leave<br />

legislation; Minimum Notice and Terms<br />

of Employment Acts 1973 to 2005; Fixed<br />

Term Workers, Part Time Employees and<br />

Agency Workers Protection Legislation;<br />

Organisation of Working Time Act 1997.<br />

Quite a list, but it should outline where<br />

those with queries should look.<br />


Corporation tax – companies that are<br />

resident in Ireland must pay corporation<br />

tax on worldwide profits and chargeable<br />

capital gains (subject to double taxation<br />

treaty relief). The standard rate on Irish<br />

trading profits is 12.5 percent. To benefit<br />

from this rate, companies must derive<br />

income from a trade that is actively<br />

carried on in Ireland.<br />

A rate of 25 percent applies to nontrading<br />

(for example, rental income<br />

and royalty income) and foreign-source<br />

income.<br />

VAT is charged on certain imports<br />

and on goods and services supplied in<br />

Ireland in the course of business. VAT<br />

ranges from zero to 23 percent depending<br />

on the product or service. There is more<br />

detailed information on this at revenue.ie/<br />

en/Home.aspx together with all the other<br />

taxation information an exporter will be<br />

interested in.<br />

As an aside, it’s worth stating that while<br />

taxes are never much fun other than for<br />

accountants and the tax collector, the<br />

Irish Revenue’s website is well designed<br />

and very easy to navigate.<br />

Employment – individuals who are a<br />

tax resident (183 days or more in a year,<br />

or 280 days or more over a year and the<br />

previous tax year taken together) will pay<br />

income tax on their worldwide annual<br />

taxable income at 20 percent on the first<br />

€34,550 to €43,500 (depending marital<br />

status / children) and 40 percent on the<br />

remainder.<br />

As in the UK, there are individual tax<br />

credits, which vary depending on the<br />

employee’s circumstances, and can be set<br />

off against their income tax liability.<br />

The Universal Social Charge (USC)<br />

replaced the health and income levies in<br />

2011, at rates varying from 0.5 percent (up<br />

to €12,012) to eight percent (income up to<br />

€100,000) with a three percent surcharge<br />

for income over €100,000, depending on<br />

income and age. USC is treated as a tax<br />

rather than a social security contribution<br />

for tax purposes.<br />

Most employers and employees (over<br />

16 years of age and under 66) pay social<br />

insurance (PRSI) contributions into the<br />

national Social Insurance Fund. This is<br />

set at four percent for employees.<br />


Lastly, those from non-exempt countries<br />

must obtain an entry visa before travelling<br />

to Ireland; details of exempt and nonexempt<br />

countries can be obtained from<br />

the Department of Foreign Affairs and<br />

Trade (dfa.ie).<br />

Employment permits are required<br />

by all non-EEA/Swiss nationals. The<br />

Employment Permits Acts 2003 to 2014<br />

establish a statutory regime governing<br />

employment permits which is operated by<br />

the Department of Business, Enterprise<br />

and Innovation (dbei.ie). There are three<br />

primary types of permit: Critical Skills<br />

Employment Permits; General Work<br />

Permits and Intra Company Transfer<br />

Permits.<br />

Ireland is a land of opportunity and<br />

an easy gateway into Europe. For a post-<br />

Brexit United Kingdom, Ireland is a<br />

natural place to consider doing business.<br />

Adam Bernstein is a freelance<br />

business writer.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 31


What drives debt in your organisation and<br />

whose responsibility is it?<br />

AUTHOR – Chris Sanders FCI<strong>CM</strong><br />

IT is true that the sales ledger is<br />

the window into an organisation’s<br />

processes. To be more accurate,<br />

it is the window into how good<br />

(or bad!) those processes are.<br />

Any credit management<br />

professional will tell you that 90 percent<br />

of the issues as they appear on the sales<br />

ledger are not of their making, but as<br />

the credit controllers are responsible for<br />

collections, so the expectation is that they<br />

are responsible for resolving the issues.<br />

But while Days Sales Outstanding (DSO) is<br />

seen as a finance measure against which<br />

the success of the credit management<br />

process is measured, credit managers<br />

are rarely measured on their ability to<br />

‘trouble shoot’ and resolve issues that<br />

ultimately impact the debts collected.<br />

Establishing the root causes of debt<br />

should be a fundamental part of the credit<br />

manager’s role, but many seem to just try<br />

to collect the debt as it is presented to<br />

them. Best practice credit management<br />

is more than that; it is about driving the<br />

organisation in the reduction of debt. This<br />

is where Stakeholder Management is a<br />

key requirement of a credit professional<br />

and the reasons why it is one of the six<br />

CI<strong>CM</strong>Q Criteria.<br />

Credit managers rarely have direct<br />

responsibility for the Order to Cash<br />

process so working with stakeholders<br />

becomes important. Identifying who these<br />

stakeholders are is just the beginning.<br />

Stakeholder maps – who these individuals<br />

are, and their level of influence, is the<br />

place to start; stakeholder management<br />

is a constant requirement. The role of the<br />

credit manager here is to find the button<br />

that, when pressed, will change the<br />

behaviour of the business encouraging<br />

them to take action in improving debt.<br />

Looking at the end-to-end Order to Cash<br />

process, there are a number of areas<br />

which drive debt:<br />

Payment Terms – those which are<br />

standard and those which are offered<br />

to customers by sales teams may not<br />

always be the same, but do you as credit<br />

manager have control over this? If not,<br />

how can you get control? Days sales<br />

outstanding is formed of two component<br />

parts Delinquent Days Sales Outstanding<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 32


AUTHOR – Chris Sanders FCI<strong>CM</strong><br />

(DDSO) and Terms DSO. It is the Terms DSO<br />

which your sales can influence.<br />

I recall a client once said to me ‘Sales are<br />

only ever allowed to give payment terms<br />

that are listed in the SAP system.’ When<br />

asked ‘how many payment terms do you<br />

have on the system?’ the answer was an<br />

incredible 238, so this credit team failed to<br />

demonstrate any control over the process<br />

of payment terms and so, unsurprisingly,<br />

DSO was exceptionally high. If you can<br />

understand Terms DSO, working with Sales<br />

to reduce the number of terms offered<br />

would be a start. Putting in place escalation<br />

processes for the approval of non-standard<br />

terms will also help.<br />

New Customer Information – there is a<br />

standard credit mantra that ‘Sales don’t do<br />

admin.’ That may or may not be the case,<br />

but what is essential is that they are good at<br />

the necessary admin. It is the responsibility<br />

of the credit manager to educate the<br />

business on the critical elements of their<br />

role that impact debt and cash. During one<br />

CI<strong>CM</strong>Q client assessment I attended a sales<br />

briefing where the credit manager and one<br />

of her team took the sales team through the<br />

credit application form – one of a series of<br />

presentations they had done. Again, this is<br />

not something that is ‘fire and forget’. This<br />

was something that the credit manager<br />

recognised would have to be an ongoing<br />

process at all sales meetings – educating new<br />

and existing sales people in the importance<br />

of clear and correct customer information.<br />

Billing Accuracy – this is a personal<br />

soapbox of mine and as I have said before<br />

‘the bill is another window into your<br />

processes’. One of the most common<br />

problems with billing is the poor processes<br />

leading up to bill production – pricing<br />

is a frequent root cause. Delays in the<br />

loading of prices and slow rebates for bulk<br />

discounts drive debts. There is a hidden<br />

cost in organisations: billing re-work; the<br />

investigation of disputes; raising of credits;<br />

credit and re-billing etc. If you think about<br />

it, the cost of re-work is more than the cost<br />

of the bill. This is a hidden cost because the<br />

resolution of disputes is spread throughout<br />

the organisation – from receiving the call<br />

to the investigation, raising of the credit,<br />

senior management sign-off and the costs<br />

of credit added to the terms for these delays.<br />

The required ‘segregation of duties’<br />

almost demands that these costs are<br />

distributed so they are difficult to measure.<br />

Start with the measurement of credit notes<br />

to bills as a percentage, and if you struggle<br />

to get traction with finance to create a<br />

‘Billing Assurance’ programme use this<br />

tactic. I once asked a FD of a client what the<br />

billing accuracy was. He said ‘pretty good<br />

actually around 95 percent.’ I said ‘So you<br />

are happy with five percent of your revenue<br />

being billed incorrectly?’ As this was a<br />

major international company, five percent<br />

amounted to a few billion dollars. This was<br />

the button I mentioned earlier that changed<br />

behaviour – two years later that 95 percent<br />

was 99 percent and debt performance<br />

improved dramatically.<br />

Measurement – some years ago I<br />

attended a CI<strong>CM</strong> Masterclass in London<br />

where I first heard the concept of ‘DSO<br />

Drivers’. Essentially, by understanding what<br />

a DSO day is worth you can then attribute<br />

these days to the values of the debts on<br />

your ledger. Presenting this at the senior<br />

managers meeting will enable you to<br />

demonstrate that DSO is not just a finance<br />

measure but one which should be owned by<br />

all of the business. You will also be able to<br />

establish how much is outside the control of<br />

the credit management team.<br />

Organisational Capability – what you<br />

are looking for as a credit manager is an<br />

engaged and motivated team, but a team<br />

that is neither of these things will result in<br />

poor collections performance. There is a<br />

soundbite meme that says ‘think of the cost<br />

if the people we train leave?’ and someone<br />

else says ‘but what is the cost of not training<br />

them and they stay?’ It is very difficult to<br />

quantify a benefit for training in value terms;<br />

it is one of those things that is an enabler.<br />

As one credit manager said at a CI<strong>CM</strong> Best<br />

Practice Event ‘training your staff is like<br />

servicing your car. You are making sure that<br />

it is operating at optimum performance.’<br />

The CI<strong>CM</strong>Q network of organisations invest<br />

in training and as a result it clearly enables<br />

higher performance in cash collection and<br />

debt management.<br />

These elements of the Order to Cash<br />

process are something to consider when<br />

you are seeking to improve the standing and<br />

performance of your credit management<br />

function. These elements also form a part<br />

of the CI<strong>CM</strong>Q programme’s six criteria –<br />

Policy and Compliance, Customer Service,<br />

Performance Monitoring, Personal and<br />

Professional Development and Stakeholder<br />

Management. Putting this together into a<br />

plan of action becomes your roadmap for<br />

improvement. All CI<strong>CM</strong>Q organisations<br />

strive for best practice and share this with<br />

others.<br />

Getting better never stops and, as we<br />

know, the credit manager can never take<br />

their foot off the accelerator, but we need<br />

also to recognise that it is not just the credit<br />

team’s responsibility to manage credit and<br />

debt. Looking at what drives debt in your<br />

organisation and sharing that responsibility<br />

is also part of the credit manager’s role.<br />

For more information please contact<br />

cicmq@cicm.com.<br />

Chris Sanders FCI<strong>CM</strong><br />

Head of Accreditation – CI<strong>CM</strong>Q.<br />

It is true that the sales<br />

ledger is the window<br />

into an organisation’s<br />

processes. To be more<br />

accurate, it is the<br />

window into how good<br />

(or bad!) those processes<br />

are.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 33



Our ongoing series has taken a festive twist. Credit Management takes a look<br />

at the most useful apps for tablets and smartphones to help with financial<br />

planning and gift buying for Christmas.<br />

Got a great app?<br />

Tell us about it at editor@cicm.com<br />


Using Christmas Gift Budget you can add person and gift<br />

budgets, create groups, and it helps to keep track of budget and<br />

gift purchase status as well. One of the best features is a pass<br />

code that keeps your Christmas gift shopping list and budget<br />

secret from others.<br />

AVAILABILITY: Android<br />

COST: FREE<br />


mySupermarket lets you compare food prices across the UK’s<br />

biggest supermarkets. You can create shopping lists, and add<br />

alert notifications if products you enjoy drop below a certain<br />

price. And if you’re not sure where to do your main Christmas<br />

shop, you can find out which supermarkets Which? readers<br />

love, using the supermarkets compared guide.<br />

AVAILABILITY: Android/iOS<br />

COST: FREE<br />

WISH<br />

Wish suggests flash deals in categories of your choice such<br />

as dresses, watches and makeup, and allows you to buy them<br />

directly from the app.<br />

AVAILABILITY: Android/iOS<br />

COST: FREE<br />

ETSY<br />

Etsy is the ideal app for finding handmade and vintage presents. There<br />

are four tabs: For You, which recommends products based on your likes;<br />

Etsy Picks, a curated list from Etsy Editors; Local, showing nearby deals;<br />

and the Holiday Gift Guide. Etsy is the app you need if you want to find a<br />

custom gift with a personal touch.<br />


Christmas is also a time to think of others – StreetLink allows<br />

members of the public to inform local authorities about rough<br />

sleepers in their area and help get them off the streets.<br />

AVAILABILITY:Android/iOS<br />

COST: FREE<br />


This app picks products from the UK’s best small businesses<br />

that are not on the high street. You can choose from an array<br />

of custom-made jewellery and homeware without having to<br />

search around looking for a different gift for that ‘difficult to<br />

buy for’ person any longer! Notonthehighstreet also has a<br />

variety of experiences on offer, such as urban beekeeping or<br />

gin making.<br />


COST: FREE<br />

AVAILABILITY: Android/iOS<br />

COST: FREE<br />


When you open VoucherCodes for the first time you’ll be asked<br />

to list some brands that you like. This determines which offers<br />

appear in the ‘Tailored for you’ section. Many of the codes on<br />

this app are for food, and the Nearby tab is worth taking a look<br />

at if you’re keen to save money on lunch. The VoucherCodes<br />

app also includes advice on the best champagne and the best<br />

Christmas pudding.<br />


COST: FREE<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 34

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 35



The latest monthly business to business payment<br />

performance statistics.<br />

AUTHOR – Jason Braidwood FCI<strong>CM</strong>(Grad)<br />

TIS the season to be jolly, or is it? Last month<br />

saw signs of encouragement as the average<br />

Days Beyond Terms (DBT) figures across<br />

regions and sectors fell back into line<br />

following a blip the month before.<br />

This month, however, things have<br />

fluctuated again, and not in a good way. The average DBT<br />

figures across regions and sectors are on the up again, to<br />

16.0 days and 15.9 days respectively.<br />


The table does not make for particularly pleasant reading<br />

this month, with only five sectors showing improvement.<br />

It has, however, been an encouraging month for the<br />

Energy Supply sector, posting the biggest improvement<br />

across the board with a reduction of 4.0 days and with<br />

that moving off the bottom of the table. Not too far<br />

behind are Wholesale and Retail Trade and Real Estate,<br />

which have reduced their DBT scores by 3.0 and 2.5 days.<br />

It has also been a successful month for Agriculture,<br />

Forestry and Fishing and Public Administration, which<br />

have all reduced their DBT. Hospitality remains at the<br />

top of the table with a DBT of 9.8 days despite a slight<br />

increase.<br />

At the opposite end of the scale, it has been a very<br />

poor month for both International Bodies and Business<br />

from Home, with increases of 6.5 up to 18.6 and 5.9 up<br />

to 19.2 DBT. Meanwhile, Business Admin and Support<br />

continues to slip down the rankings, with DBT now up to<br />

18.7 days. Mining and Quarrying (17.4 DBT), Real Estate<br />

(17.2 DBT) and Financial and Insurance (16.8 DBT) are all<br />

moving in the wrong direction. It has also been another<br />

disappointing month for Professional and Scientific,<br />

now sitting rock bottom with a DBT of 21.6 days.<br />


The regional standings are also a cause for concern,<br />

with Scotland the only region to show improvement,<br />

reducing their DBT to 16.0 days and ending their lengthy<br />

stint at the bottom of the table. Things only get worse for<br />

London however, with their DBT increasing a further 4.5<br />

up to a worrying 20.7 days.<br />

Elsewhere, the South East, which topped the table<br />

last month with a DBT of 9.7, has experienced a sharp<br />

increase up to 14.4 days. Similarly, Yorkshire and<br />

Humberside’s DBT has jumped from 9.8 to 14.2 days,<br />

demonstrating the fluctuation in regional performance<br />

on a month-by-month basis.<br />

Perhaps it is not the time to panic, but it is a concern<br />

to see the majority of sectors and regions moving in<br />

the wrong direction when it comes to late payments,<br />

especially on the back of an encouraging last month.<br />

Ongoing uncertainty looks like it is here to stay for the<br />

foreseeable future, so will we have to wait and see how<br />

things fare as we enter the New Year and edge closer<br />

towards the dreaded Brexit deadline.<br />

Jason Braidwood FCI<strong>CM</strong>(Grad),<br />

Head of Credit and Collections at Creditsafe Business<br />

Solutions.<br />

Getting Better<br />

-4.0 Energy Supply<br />

-3.0 Wholesale & Storage<br />

-2.5 Transportation & Storage<br />

-1.1 Agriculture<br />

-0.7 Public Administration<br />

Getting Worse<br />

6.5 International Bodies<br />

5.9 Business from Home<br />

3.3 Health & Social<br />

3.0 Other Service<br />

2.4 Water & Waste<br />

Top Five Prompter Payers<br />

Top Five Prompter Payers Oct 18 Change from Sep 18<br />

South West 13.8 1.9<br />

Yorkshire and Humberside 14.2 4.4<br />

South East 14.4 4.7<br />

West Midlands 14.7 1.9<br />

East Anglia 14.7 0.3<br />

Top Five Prompter Payers<br />

Region Oct 18 Change from Sep 18<br />

Hospitality 9.8 0.8<br />

Entertainment 11.7 2.0<br />

Education 12.6 1.4<br />

Public Administration 12.9 -0.7<br />

Wholesale and retail trade 13.1 -3.0<br />

Bottom Five Poorest Payers<br />

Bottom Five Poorest Payers Oct 18 Change from Sep 18<br />

London 20.7 4.5<br />

North West 17.6 3.7<br />

Northern Ireland 17.5 1.9<br />

East Midlands 16.5 3.0<br />

Scotland 16.0 -0.3<br />

Bottom Five Poorest Payers<br />

Region Oct 18 Change from Sep 18<br />

Professional and Scientific 21.6 2.6<br />

Business from Home 19.2 5.9<br />

Business Admin & Support 18.7 1.1<br />

International Bodies 18.6 6.5<br />

Mining and Quarrying 17.4 1.0<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 36


AUTHOR – Jason Braidwood FCI<strong>CM</strong>(Grad)<br />

Perhaps it is not the time to panic,<br />

but it is a concern to see the majority<br />

of sectors and regions moving in the<br />

wrong direction when it comes to<br />

late payments.<br />


-0.3 DBT<br />



1.9 DBT<br />

WALES<br />

2.1 DBT<br />

NORTH<br />

WEST<br />

3.7 DBT<br />



4.4 DBT<br />

WEST<br />


1.9 DBT<br />

EAST<br />


3.0 DBT<br />

LONDON<br />

4.5 DBT<br />

EAST<br />

ANGLIA<br />

0.3 DBT<br />

SOUTH<br />

EAST<br />

4.7 DBT<br />

SOUTH<br />

WEST<br />

1.9 DBT<br />

Getting Better – Getting Worse<br />

0.3<br />

3.0<br />

4.5<br />

3.7<br />

1.9<br />

-0.3<br />

4.7<br />

1.9<br />

2.1<br />

1.9<br />

4.4<br />

East Anglia<br />

East Midlands<br />

London<br />

North West<br />

Northern Ireland<br />

Scotland<br />

South East<br />

South West<br />

Wales<br />

West Midlands<br />

Yorkshire and Humberside<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 37


A bright future<br />

Salaries rise faster outside of<br />

London as credit professionals<br />

continue to be in demand.<br />

AUTHOR – Karen Young<br />

THE latest annual Hays Salary<br />

& Recruiting Trends 2019<br />

guide shows that credit<br />

professionals are confident<br />

in their skills and prepared to<br />

move roles as average salaries<br />

rise higher in areas outside of London. As<br />

credit talent continues to be in demand,<br />

salaries have risen steadily again this year<br />

at 2.4 percent, above the UK average of 1.9<br />

percent.<br />

Regionally, the largest increases<br />

witnessed for credit professionals were seen<br />

in Northern Ireland at 7.3 percent, followed<br />

by 6.9 percent in the North West, 6.1 percent<br />

in Scotland and 4.7 percent in the North<br />

East. Credit professionals in these areas<br />

are in particular demand, and as such are<br />

aware of their worth, and this together with<br />

skills shortages, is inflating salaries further.<br />

Encouragingly the steady salary rise seen<br />

over the past few years looks set to continue<br />

as 81 percent of finance employers said<br />

their salaries increased this year, and over<br />

three-quarters (77 percent) hope the same<br />

will happen again next year.<br />

As a result, over half (57 percent) of<br />

credit professionals say they are satisfied<br />

with their salary, an increase from 43<br />

percent last year. Pressure remains however<br />

for employers to continue to keep salaries<br />

above market rate, as close to two thirds (63<br />

percent) of professionals in the industry<br />

expect their salary to increase again in the<br />

year ahead.<br />

Two fifths (40 percent) of credit<br />

professionals said they have moved jobs<br />

in the last 12 months, while a further<br />

37 percent said they had considered<br />

leaving their roles. This figure combined<br />

points towards a large proportion of<br />

professionals who would be tempted<br />

to move for the right offer. With<br />

over two-thirds of employers expecting to<br />

encounter a shortage of suitable applicants<br />

over the next 12 months, organisations<br />

should look to tap into this passive talent<br />

pool.<br />

Looking ahead, over half (54 percent)<br />

of professionals expect to move jobs in<br />

the next 12 months, higher than the year<br />

prior at 49 percent. Over a third (37 percent)<br />

of the 49 percent plan to look for a new job<br />

in the next six months. The top reasons<br />

for professionals wanting to leave their<br />

roles is split equally between salary/and<br />

benefits packages and a lack of future<br />

opportunities – both at 23 percent.<br />

Half of professionals also cited that<br />

an improved salary or benefits package<br />

would tempt them to move jobs indicating<br />

that salary will be an important factor for<br />

employers if they hope to tap into the<br />

talent market in the year ahead.<br />


Alongside an increase in salary<br />

satisfaction, over two-thirds (67 percent)<br />

of professionals working in credit say they<br />

are currently satisfied in their roles and 49<br />

percent feel there is scope for progression<br />

within their organisation, an increase<br />

from 34 percent.<br />

While it’s reassuring employers<br />

have clearly been more transparent in<br />

communicating progression pathways<br />

within their organisations, only 39 percent<br />

of credit professionals feel positive about<br />

their career prospects. Although 94<br />

percent of finance employers expect their<br />

organisation’s activity levels to increase<br />

or stay the same over the next 12 months,<br />

it’s evident employees may be more<br />

concerned about future opportunities as<br />

economic uncertainty continues.<br />


Over half of professionals (55 percent)<br />

rated their work-life balance as good,<br />

above the UK average of 45 percent. 51<br />

percent of professionals said they would<br />

change their working hours, including<br />

flexible working in order to improve this.<br />

Additionally, 29 percent of professionals<br />

said work-life balance was the most<br />

important factor when considering a<br />

new role with flexi-time cited as the most<br />

popular option. Positively, employers<br />

are aware of the importance of this for<br />

professionals. Aside from salaries, finance<br />

employers say work-life balance including<br />

flexible working was the most important<br />

factor towards helping to attract staff.<br />

While employers may be concerned<br />

about the impact of changing working<br />

hours when already struggling with staff<br />

shortages, offering and promoting these<br />

options is a valuable aid to attraction and<br />

retention.<br />


Our research indicates a clear mismatch<br />

between the benefits professionals in the<br />

industry desire and what employers are<br />

currently offering. Only two of the top five<br />

benefits for employees feature within the<br />

top five benefits offered by employers.<br />

The top benefits for 60 percent of<br />

professionals when looking for a new<br />

role were: over 28 days paid annual<br />

leave; pension provision above the legal<br />

minimum (51 percent); health insurance<br />

or private medical care (51 percent); life<br />

insurance (43 percent); and training and/<br />

or professional certification support (38<br />

percent).<br />

Employers, however, believe the top<br />

five benefits for attracting talent are:<br />

childcare voucher schemes (71 percent);<br />

pension provision above the legal<br />

minimum (54 percent); cycle to work<br />

schemes (51 percent); financial support<br />

for professional studies (49 percent); and<br />

health insurance/private medical care (45<br />

percent).<br />

It’s evident that benefits aid worklife<br />

balance such as a generous holiday<br />

entitlement are attractive to employees<br />

and employers who want to attract the<br />

right talent should think about how they<br />

can tailor their benefits to suit a changing<br />

workforce.<br />

Overall, it’s positive that professionals<br />

in the sector have the confidence to move,<br />

encouraging employers to offer increased<br />

and competitive salaries. Employers<br />

looking to hire in the coming year will<br />

need to act decisively as competition<br />

for talent continues to be fierce. Those<br />

looking for the best talent will require a<br />

clear progression map for their teams, as<br />

employees are not scared to move in order<br />

to build a long-lasting career in credit<br />

management.<br />

Karen Young is Director<br />

at Hays Credit Management.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 38



Credit<br />

Controller<br />

Senior<br />

Credit Controller<br />

Credit Risk<br />

Analyst<br />

Credit Control<br />

Supervisor<br />

Credit<br />

Manager<br />

Group Credit Manager<br />

/ Head of Credit<br />

Credit<br />

Director<br />

Region 2019 2019 2019 2019 2019 2019 2019<br />

East Midlands £23,000 £25,000 £40,000 £30,000 £40,000 £58,000 £80,000<br />

East of England £24,500 £28,000 £40,000 £30,000 £38,000 £55,000 £70,000<br />

London £27,000 £32,000 £50,000 £36,000 £55,000 £72,000 £95,000<br />

North East £21,000 £25,000 £32,000 £26,000 £38,000 £60,000 £75,000<br />

North West £23,500 £26,000 £40,000 £30,000 £42,000 £60,000 £80,000<br />

Northern Ireland £23,000 £26,000 £32,000 £30,000 £42,000 £55,000 £70,000<br />

Scotland £22,500 £26,000 £32,000 £30,000 £40,000 £55,000 £65,000<br />

South East £26,500 £30,000 £40,000 £34,000 £45,000 £65,000 £85,000<br />

South West £24,500 £26,000 £42,000 £27,000 £38,000 £55,000 £70,000<br />

Wales £20,000 £23,000 £30,000 £27,000 £36,000 £52,000 £65,000<br />

West Midlands £23,500 £26,000 £40,000 £31,000 £45,000 £65,000 £85,000<br />

Yorkshire and the Humber £23,000 £24,000 £30,000 £27,000 £38,000 £57,000 £70,000<br />

National Average 2019 £23,500 £26,417 £37,333 £29,833 £41,417 £59,083 £75,833<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 39


The European Order<br />

for Payment<br />

How to use an EOP to enforce cross-border debt.<br />

DD +353 1 790 9415<br />

E susan.connolly@dwf.law W www.dwf.law/recover<br />

Susan Connolly –<br />

Senior Associate Commercial<br />

Litigation and Professional Indemnity<br />

THE European Order for<br />

Payment (EOP) is an underused<br />

but highly effective<br />

tool which allows for<br />

enforcement of crossborder<br />

debts. Council<br />

Regulation (EC) 1896/2006 brought about<br />

the EOP process, which allows a creditor<br />

to enforce a debt against a debtor residing<br />

in another European Member State (with<br />

the exception of Denmark). The procedure<br />

is administrative in nature and is faster<br />

and less costly than litigating uncontested<br />

money claims.<br />

For a claim to have a cross border<br />

element, at least one of the parties must<br />

be domiciled or habitually resident in<br />

an EU Member State other than the state<br />

where the Court is dealing with the EOP<br />

application. Article 3(3) of the Regulation<br />

outlines that the appropriate point at which<br />

to determine if a case can be considered<br />

as being of a 'cross-border' nature is the<br />

point at which the application is made as<br />

opposed to the point at which the subject<br />

matter of the claim arose.<br />

The procedure is available for 'civil and<br />

commercial matters in cross border cases<br />

irrespective of the nature of the court<br />

or tribunal'. The Regulation expressly<br />

excludes revenue, customs, administrative<br />

and state liability claims.<br />

Jurisdiction is determined in<br />

accordance with the Brussels I Regulation<br />

except in the cases of disputes arising<br />

from consumer contracts where the<br />

defendant is a consumer. In that instance,<br />

the Brussels I Regulations provides that<br />

the jurisdiction must be the Member State<br />

where the defendant is domiciled.<br />

The EOP procedure is particularly<br />

helpful in money claims for a specific<br />

amount, due and owing at the time the<br />

application is submitted.<br />

The procedure is that the creditor<br />

completes a series of forms in their own<br />

Member State. The initiating document<br />

is a Form A, which sets out the details of<br />

the parties, the amount claimed including<br />

principal, any interest or contractual<br />

penalties, a summary of the claim and<br />

supporting evidence.<br />

The Court first examines the<br />

application but does not consider the<br />

evidence. There is a Form B stage which<br />

affords applicants an opportunity to<br />

rectify applications if the Court deems it<br />

necessary. If the Court rejects the claim, it<br />

will issue a form D. If the Court only finds<br />

that part of the claim should proceed, it<br />

will issue a Form C.<br />

If the Court finds that the claim has<br />

merit, an EOP will issue by means of Form<br />

E. This contains the names and addresses<br />

of the parties and the order to pay the<br />

amount claimed, the interest, contractual<br />

penalties and costs. The debtor is notified<br />

by means of the Form E of the obligation<br />

to (1) pay the amount owed or (2) dispute<br />

the EOP by lodging a statement of<br />

opposition by means of Form F within 30<br />

days. Form E also notifies the debtor that<br />

if a statement of opposition is lodged, the<br />

matter must thereafter be dealt with by<br />

the courts of the Member State of origin.<br />

Form E must be served on the debtor<br />

in accordance with the national law of the<br />

Member State of origin and the method of<br />

service must comply with Articles 13 to 15<br />

of the Regulation.<br />

The procedure to proceed from Form<br />

A to Form E should take no more than<br />

30 days, but this does not include where<br />

a Form B amendment or rectification is<br />

required.<br />

If the debtor wishes to challenge the<br />

EOP a Form F must be lodged. There is<br />

no requirement to state grounds for the<br />

opposition.<br />

If no opposition is lodged, the Court<br />

will issue Form G which is a declaration<br />

of enforceability. Any EOP that has been<br />

declared enforceable in its Member State<br />

of origin is therefore enforceable in other<br />

Member States.<br />

The law of the Member State of<br />

enforcement will determine the means<br />

by which the EOP may be enforced. Any<br />

remedies which are available in relation<br />

to a judgment or order made within a<br />

Member State are also available in relation<br />

to the enforcement of the EOP.<br />

This procedure is well worth<br />

considering as a means to cut through<br />

lengthy and costly procedures when<br />

dealing with debtors outside of your own<br />

jurisdiction. The procedure affords the<br />

opportunity to have an enforceable order<br />

in a very short timeframe. In conventional<br />

civil litigation, the court proceedings can<br />

be lengthy and costly only to be followed<br />

by what can be equally lengthy and<br />

costly enforcement procedures. Where<br />

available, the EOP can have creditors at<br />

enforcement state in the Member State<br />

of enforcement significantly sooner than<br />

they would be if court proceedings were<br />

pursued.<br />

This information is intended as a general<br />

discussion surrounding the topics covered<br />

and is for guidance purposes only. It does<br />

not constitute legal advice and should<br />

not be regarded as a substitute for taking<br />

legal advice. DWF is not responsible for<br />

any activity undertaken based on this<br />

information.<br />

As a CI<strong>CM</strong> member you can receive free legal advice from<br />

DWF. Visit the CI<strong>CM</strong> website and click on the free Advice Line.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 40

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The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 41


RISKY<br />


A global outlook of business performance in Q3.<br />

AUTHOR – Nalanda Matia<br />

THE global economic<br />

upswing that caused an<br />

uptick in global growth<br />

around mid-2016 and early<br />

2017 has largely sustained<br />

itself, with Real GDP<br />

growth rates for most country groups<br />

continuing to expand before stabilising<br />

in the next few years. While the overall<br />

trend seems to be similar in general, the<br />

outlook for emerging markets remains<br />

more positive. On average, the emerging<br />

nations are expected to maintain growth<br />

rates of about 4.5 percent in 2019, while<br />

the global average hovers around a tame<br />

three percent, although managing to<br />

remain above the post-recession average<br />

of two percent. Divergence will occur<br />

among the advanced economies as well,<br />

as Dun & Bradstreet economists expect US<br />

growth to decelerate post-2019 while the<br />

UK is expected to maintain an accelerated<br />

pace, given the nation is able to achieve<br />

the desirable outcome of a negotiated<br />

Brexit. From an economic perspective,<br />

Brexit negotiations aiming at retaining<br />

open trade with and access to the financial<br />

markets of the European Union will prove<br />

to be most beneficial.<br />

However, some global risks continue<br />

to linger. Markets have been rallying<br />

recently on reports that China and the US<br />

are making headway on trade, but tensions<br />

still remain. Another cause for concern<br />

and a possible threat to global growth<br />

prospects is that China seems to be in the<br />

initial phases of an economic slowdown<br />

that primarily emanates from declining<br />

effectiveness of several key factors like<br />

quality of labour, efficient re-allocation of<br />

capital that fuelled the country’s impressive<br />

economic expansion in the past. On the<br />

other hand, matters have eased slightly on<br />

the prospect of a North American trade war<br />

by the new agreement (USMCA) between<br />

the US, Mexico and Canada. Although final<br />

ratification and implementation of USMCA<br />

remain pending, the agreement went a<br />

long way to allay fears of a possible trade<br />

war in the region impacting sustainable<br />

growth within it and spreading globally.<br />

However, none of the above factors nor the<br />

currency crises in Argentina and Turkey<br />

will have a significant bearing on the<br />

outlook for global growth – at least in early<br />

2019.<br />

According to the Office for National<br />

Statistics, overall UK GDP grew by 1.4<br />

percent on a year over year basis in the second<br />

quarter of <strong>2018</strong>. A look into the vertical<br />

specific view shows a wide range of growth<br />

among the key industry segments. The<br />

Services segments, led by the Professional,<br />

Scientific and Technical Activities registered<br />

the most growth (5.3 percent) since Q2 2017,<br />

followed by Manufacturing and Real Estate<br />

which grew 1.3 percent and 0.5 percent<br />

respectively. Other segments like Health and<br />

Social activities, Agriculture and Natural<br />

Resources and the Financial and Insurance<br />

sectors saw some contraction since Q2 2017.<br />

Clearly, imbalances between important<br />

sectors of the British economy as the nation<br />

treads uncertainties surrounding Brexit.<br />

Despite pockets of concern, the UK<br />

labour market fundamentals remain fairly<br />

healthy. Unemployment rate stands at its<br />

post-recession low at four percent. Also,<br />

labour productivity measures by the ONS’<br />

Output per Worker index has continued<br />

to climb since late 2015, with a few dips<br />

along the way. There is some growth seen in<br />

wages (Average weekly earnings), which has<br />

increased by a little over two percent over<br />

the past year – the growth rate being slightly<br />

slower than that seen over the past quarters<br />

and also from what could be expected in the<br />

current job market.<br />

Moving from the fundamentals of the<br />

economy, to that of business health, we take<br />

a detailed look at business liquidations by<br />

industry. Significant variation exists between<br />

sectors, with sectors like Personal Services<br />

and Agriculture showing an increase in the<br />

number of business liquidations over the<br />

past year. Although all these sectors show<br />

an increase in business liquidations during<br />

the current quarter, differences in the trend<br />

exist among them.<br />

A third group of industry segments, led<br />

by Transportation/Comms/Utilities and<br />

Business Services, show a considerable<br />

drop in business liquidations. Although all<br />

these above-named sectors show a certain<br />

outcome (increase/decrease/no change)<br />

from the business liquidations perspective,<br />

during the current quarter, differences in<br />

the trend exist among them and may tell<br />

a more detailed story. For example, for<br />

the Agriculture, Government or the Retail<br />

sector, the number of business liquidations<br />

remain considerably lower than the post-<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 42


AUTHOR – Nalanda Matia<br />

recession (2010-11) era while for sectors like<br />

Personal Services, Construction or Machinery<br />

Manufacturing have not seen any significant<br />

reduction in the number of liquidations since<br />

the post-recession period. These latter group<br />

of industry segments may be suffering on the<br />

stability perspective and it needs to be seen<br />

whether or not policies could be put in place to<br />

help businesses continue on the path of stable<br />

and sustainable growth. Overall, the number of<br />

businesses that closed their doors in the past year<br />

has declined by a little over 20 percent. However,<br />

on the whole, the volatility in change of business<br />

failures has declined considerably, businesses<br />

within the UK economy have slowly gained<br />

stability over time, attaining maximum stability<br />

around late 2015 through mid 2017. Business<br />

liquidations seemed to take an upturn on the<br />

annual basis again in the second half of 2017,<br />

but have been steadily declining, achieving the<br />

highest decline since Q1 2016 during the current<br />

quarter – but there are pockets of concern that<br />

need further attention.<br />

A potent leading indicator of business<br />

stability is a business’ payment performance<br />

– how promptly a business has been paying its<br />

creditors and/or suppliers. The 12-month view<br />

of the percentage of prompt payments made<br />

by UK businesses on an average shows that the<br />

metric has been quite stable over this period of<br />

time. For the past year, the percentage of prompt<br />

payments for these businesses have hovered<br />

approximately around the 30 percent mark,<br />

with small improvements around early <strong>2018</strong> and<br />

stabilising around 31 percent currently after a<br />

slight drop earlier in the quarter. This number<br />

Nalanda Matia<br />

In conclusion,<br />

the overall health<br />

of the business<br />

population in<br />

the UK seems to<br />

be fairly robust,<br />

with pockets of<br />

concern present<br />

in some major<br />

industries.<br />

varies considerably for business segments – and<br />

have a strong correlation with business size.<br />

The smallest businesses (by employee counts)<br />

seem to make the highest percentage of prompt<br />

payments – over 35 percent of their account<br />

payables are paid promptly within terms. This<br />

percentage declines systematically, dropping to<br />

14 percent of prompt payments for mid-sized<br />

businesses with 101-250 employees on their<br />

payroll. The percentage of prompt payments for<br />

the largest businesses in the country with more<br />

than 1,000 people under their employ pay only<br />

about six percent of their accounts payable in a<br />

prompt manner. This trend is not only true for<br />

the current recording period, but holds true for<br />

all historical periods as well and clearly points to<br />

the position of confidence that large businesses<br />

enjoy by virtue of their market power and possibly<br />

brand name in the industry. This also brings<br />

to the forefront the plight of small businesses,<br />

that in spite of their incessant cash-constrained<br />

state, they do not have the bargaining power to<br />

attain more favourable terms for their accounts<br />

payable and are obligated to pay a relatively<br />

higher percentage of these in a prompt manner.<br />

This trend can best be addressed by regional and<br />

local authorities by providing special financing<br />

programs for small businesses in need to help<br />

them maintain better payment terms as well as<br />

gain stability and reduced financial stress.<br />

As for all other metrics reviewed above,<br />

the percentage of prompt payments vary<br />

considerably by industry as well. This variation<br />

is usually attributed to the norms set within<br />

an industry which vary considerably from<br />

industry to industry. As can be seen from the<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 43<br />

continues on page 44 >


AUTHOR – Nalanda Matia<br />

chart, the Agriculture sector pays close<br />

to 55 percent of their accounts payables<br />

in a prompt manner. This is followed by<br />

Construction at approximately 40 percent<br />

and then the Personal Services Sector<br />

by about 33 percent. The above-named<br />

sectors, specifically the Agriculture and<br />

Construction verticals have a seasonality<br />

element in their operations and earning<br />

cycle and possibly not able to bargain<br />

payment terms beyond their operating<br />

periods and have to pay their suppliers<br />

relatively promptly. For all other industries,<br />

the percentage of prompt payments<br />

remains below the national average of 31.2<br />

percent. It seems that the Government is<br />

able to evoke enough confidence among its<br />

suppliers to be able to pay only 20 percent<br />

of their accounts promptly. The industry<br />

payment pattern is something that is<br />

noticed in historical periods as well – not<br />

just the current one and seem to be wellestablished<br />

norms among businesses in<br />

each sector.<br />

The final segmented look at the<br />

percentage of prompt payments is by<br />

regions. Like the last two segmentations,<br />

the time series view of prompt payments<br />

shows that the pattern of percentage of<br />

prompt payments has remained more or<br />

less stable over the past 12 months.<br />

A glance at the regional breakdown<br />

of percentage prompt payments shows<br />

that the East Anglia region registers the<br />

highest percentage of prompt payments<br />

with 38 percent of their accounts payable<br />

promptly. Greater Manchester, which is on<br />

the other side of the spectrum pays 25.1<br />

percent of their accounts payable promptly.<br />

Businesses in the United Kingdom do not<br />

vary widely in payment manner as they do<br />

by business size or by industry segment.<br />

This indicates some consistency in the<br />

nation’s economic profile as far as the<br />

larger regions are concerned, which will<br />

prove to be as a positive as the country<br />

explores the arduous process of Brexit.<br />

Finally, we take a look at UK business<br />

health under the backdrop of Dun &<br />

Bradstreet’s Failure and Delinquency<br />

scores, classifying business into four<br />

categories based on their risk profiles.<br />

The first category are businesses with the<br />

lowest risk profile, by both delinquency and<br />

failure perspectives. Around 82 percent of<br />

all businesses considered for this study fall<br />

into this segment. These are the ideal set<br />

of businesses to engage in commerce and<br />

will prove to be the ideal customers down<br />

the line. The next segment is made up of<br />

businesses that are marked as the riskiest<br />

with high probability of failure in the next<br />

12 months, but with a low risk of severe<br />

delinquency. These are the businesses<br />

that might be able to cover their payables<br />

before closing their doors but need to be<br />

monitored very closely. It might be worth<br />

to cut as many ties with these businesses<br />

as possible.<br />

The UK economy has approximately<br />

one percent of these businesses that might<br />

face insolvency in the next 12 months.<br />

The third risk segment are businesses<br />

that are in a contrasting situation – with<br />

high risk of delinquency in the next 12<br />

months, but not projecting a high risk<br />

from the standpoint of liquidation. These<br />

businesses are ones under severe financial<br />

duress and having severe difficulties<br />

managing their cashflow. About 13 percent<br />

of all businesses fall into this category and<br />

any relationship with them needs to be<br />

handled with utmost caution. The final<br />

segment – about four percent of the UK<br />

business population – are considered to<br />

be under severe risk. These businesses<br />

face the risk of both severe delinquency as<br />

well as insolvency in the next 12 months.<br />

Any commercial relationship entered<br />

into with these set of businesses has a<br />

very high probability of incurring severe<br />

losses.<br />

In conclusion, the overall health of the<br />

business population in the UK seems to<br />

be fairly robust, with pockets of concern<br />

present in some major industries. With<br />

the country’s inflation hovering above<br />

target, and uncertainties looming in<br />

the next few quarters, monetary policy<br />

is expected to normalise gradually. To<br />

help businesses gain stability and move<br />

towards a sustainable growth path in<br />

this environment, internal policies like<br />

strategic investments and adoption<br />

of productivity-augmenting technologies<br />

may prove to be effective.<br />

Nalanda Matia is Senior Director,<br />

Econometrics Solutions at Dun &<br />

Bradstreet.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 44

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Do not worry. If you are part way through your CI<strong>CM</strong><br />

qualification we will move you to the new format<br />

automatically if that is the best path for you.<br />

You can stay on the current qualification route if this<br />

suits you better (if you only have one further unit to<br />

pass) and you will have until 2021 to complete the ‘old’<br />

qualification assignments and exams.<br />


We will be contacting our members soon with more<br />

details about the new qualifications and instructions<br />

on what to do if you are part way through your CI<strong>CM</strong><br />

qualification.<br />



For professionals working at operational level, or<br />

looking for an introduction to credit, collections or<br />

enforcement.<br />

CHOICE OF 7 CI<strong>CM</strong> AWARDS<br />

Choose one as a CPD<br />

award, or build to the Entry<br />

Certificate or Diploma.<br />



2 CI<strong>CM</strong> awards at<br />

Entry-Level<br />

Regulated by the qualifications regulators in England, Wales and Northern Ireland<br />



For professionals working in, or working towards,<br />

senior operational roles in credit, collections or<br />

enforcement.<br />

CHOICE OF 10 CI<strong>CM</strong> AWARDS<br />

Choose 1 as a CPD award,<br />

or build to the CI<strong>CM</strong><br />

Intermediate Diploma.<br />


4 CI<strong>CM</strong> INTERMEDIATE<br />

AWARDS<br />

including at least one<br />

mandatory unit<br />

LEVEL 2<br />



Any 4 CI<strong>CM</strong> awards<br />

at Entry-Level<br />

Regulated by the qualifications regulators in England, Wales and Northern Ireland<br />



For professionals working in, or working towards,<br />

managerial or leadership roles in credit, collections<br />

or enforcement.<br />

CHOICE OF 6 CI<strong>CM</strong> AWARDS<br />

Choose 1 as a CPD award, or<br />

build to the CI<strong>CM</strong> Advanced<br />

Diploma.<br />



Any 4 CI<strong>CM</strong><br />

Advanced awards<br />

LEVEL 3<br />

Diploma leads to<br />


(ACI<strong>CM</strong>)<br />


LEVEL 5<br />

Diploma leads to<br />

MEMBER LEVEL MCI<strong>CM</strong> (GRAD)<br />

(must have Intermediate<br />

Diploma or MCI<strong>CM</strong> Experience<br />

Assessment pass)<br />

Regulated by the qualifications regulators in England, Wales and Northern Ireland<br />

See www.gov.uk to compare qualification levels in different countries.<br />

You can get in touch any time to talk to the CI<strong>CM</strong><br />

qualifications team. They will be able to give you advice on<br />

the next steps. E: professionalqualifications@cicm.com<br />

T: 01780 722909<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 46

CI<strong>CM</strong><br />


your way<br />

CI<strong>CM</strong> qualifications<br />

are changing<br />

In a world where time is your most precious<br />

commodity, we understand that you need flexibility<br />

and different options at different times of your life<br />

and career.<br />

Find out more<br />

T: 01780 722900 W: www.cicm.com<br />

E: qualifications@cicm.com<br />

Where will the new flexible<br />

CI<strong>CM</strong> qualifications take you?<br />

WHAT<br />

ARE YOU<br />


FOR?<br />

Entry Level awards, Certificate and Diploma in Credit & Collections (Level 2)<br />

Intermediate awards and Diploma in Credit & Collections (Level 3, leading to ACI<strong>CM</strong>)<br />

Advanced awards and Diploma in Credit & Collections (Level 5, leading to MCI<strong>CM</strong> (Grad)*<br />

* MCI<strong>CM</strong> (Grad) is awarded to those who meet specific criteria. Please call us for more information.<br />

Your choice, your way: subject, study method, place and time<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 47



TESTS<br />

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PREPARE FOR A CI<strong>CM</strong> AWARD<br />

Equally valuable as a baseline test of your team’s knowledge on CI<strong>CM</strong> Knowledge Hub, these multiple<br />

choice questions support preparation towards CI<strong>CM</strong> Level 2 and 3 awards and credit controller/<br />

collections apprenticeships.<br />

Each test includes advice on the art of answering multiple choice questions, the opportunity to<br />

practice multiple choice exam questions for each syllabus area working at your own pace, feedback<br />

on the correct answer, a final timed mock exam accessed anywhere/anytime, and a mock exam<br />

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The knowledge test course takes around three hours to complete,<br />

including the pre-reading, mock exam at the end, a course evaluation<br />

and CPD reflection. The course could form part of a taught programme<br />

leading towards a CI<strong>CM</strong> award or stand-alone knowledge test.<br />

You can complete multiple choice questions for each module all<br />

at once or over several visits to suit you. The one-hour mock exam<br />

must be completed in one go, however it can be repeated on more<br />

than one occasion.<br />

Course fees apply<br />

CI<strong>CM</strong> members £25 for 12 month licence * Non-members - £83<br />

Learners studying through a CI<strong>CM</strong> Credit Academy virtual class,<br />

evening class or Learning Support will have free access to the related<br />

test as part of their programme.<br />

The Taking Control of Goods test is part of an online course<br />

sponsored by the High Court Enforcement Officers Association and is<br />

therefore offered free to CI<strong>CM</strong> members (Non-member fee - £50*).<br />

CPD<br />

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call 01780 722909 to purchase course<br />

*Fees are subject to VAT

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Your CI<strong>CM</strong> lapel badge<br />

demonstrates your commitment to<br />

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If you haven’t received your badge<br />

cicmmembership@cicm.com<br />

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Unintended Consequences<br />

Giving notice but not resigning, searching an<br />

employee’s mobile phone, and the new parental<br />

bereavement act.<br />

CAN an employee ‘resign’ and<br />

not mean it? It appears that<br />

they can following East Kent<br />

Hospitals University NHS<br />

Foundation Trust v Levy.<br />

The claimant, Mrs Levy,<br />

was employed in the records department<br />

of the trust. She successfully applied for<br />

an internal position in the trust's radiology<br />

department, subject to pre-appointment<br />

checks.<br />

After having been given the conditional<br />

offer and following some form of<br />

altercation with another staff member in<br />

the records department, Levy handed in<br />

a letter stating: ‘Please accept one month's<br />

notice from the above date’.<br />

On receiving this letter Levy's manager<br />

wrote back accepting the ‘notice of<br />

resignation’ and referring to her last<br />

working day in the records department.<br />

AUTHOR – Gareth Edwards<br />

Her manager did not complete a staff<br />

termination form and did not deal with<br />

any other outstanding issues, such as<br />

making a payment for accrued but unused<br />

annual leave.<br />

Following the completion of the<br />

pre-appointment checks, the offer of a<br />

position in the radiology department was<br />

withdrawn, prompting Levy to attempt<br />

to retract her notice. The trust refused<br />

to accept the withdrawal of her notice,<br />

stating that her employment would end at<br />

the end of her notice period. Levy made<br />

an unfair dismissal claim stating that she<br />

had not resigned.<br />

The Employment Tribunal (ET) held<br />

that Levy's letter had been ambiguous as<br />

to whether she was giving notice to leave<br />

the records department or the trust. The<br />

ET went on to find that, from the trust’s<br />

actions, it could be shown that the notice<br />

had been taken by the trust to be notice<br />

of Levy's departure from the records<br />

department and therefore Levy had not<br />

resigned. Her unfair dismissal claim was<br />

successful.<br />

The Employment Appeal Tribunal<br />

(EAT) agreed with the ET, holding that<br />

Levy's letter had been ambiguous despite<br />

the use of the word ‘notice’. On these<br />

particular facts, the EAT held that the ET<br />

had been entitled to find that the words<br />

used in the letter related to Levy's position<br />

in the records department.<br />

The decision highlights that employers<br />

should not be too eager to accept an<br />

employee's apparent resignation without<br />

considering the meaning behind it,<br />

particularly where there could be any<br />

ambiguity as to the employee's intentions.<br />

Changing phone passwords without permission<br />

IN what circumstances can an employer<br />

search an employee’s mobile phone? The<br />

High Court case of Richmond v Selecta<br />

Systems Limited offers guidance in that<br />

it found that a search can be conducted<br />

where a company wants to protect its<br />

interests, has a reasonable suspicion that<br />

an employee has openly taken confidential<br />

information, and the mobile phone has<br />

been provided by the employer.<br />

However, in this case, the managing<br />

director's actions of changing the employee's<br />

passwords in relation to personal accounts<br />

(iTunes, iCloud and WhatsApp) while<br />

searching for information, because some<br />

company data was found, was deemed<br />

a step too far. The court found that<br />

the employer had breached their duty of<br />

care owed to the employee who was deprived<br />

of access to his personal accounts and<br />

was therefore awarded £1,000<br />

compensation.<br />

The employer had been in discussions<br />

with the employee who had worked for<br />

the company for over 20 years, as to the<br />

terms of his departure from the company.<br />

The employer knew that the employee<br />

had previously asked for copies of client<br />

information to be made for him to keep<br />

at home. The employee was involved in<br />

a sales role and worked from home from<br />

time-to-time. The information being sought<br />

included customer contact information<br />

as well as discounted price structures for<br />

the company's products. The latter being<br />

commercially sensitive information.<br />

New Parental Bereavement Act <strong>2018</strong><br />

UNDER the Parental Bereavement (Leave<br />

and Pay) Act <strong>2018</strong>, parents who suffer the<br />

death of a child under the age of 18, or a<br />

stillbirth from 24 weeks of pregnancy, will<br />

be entitled to two weeks paid leave.<br />

The Act, which is expected to come into<br />

force in 2020, will give bereaved parents<br />

a statutory right to two weeks' pay by<br />

inserting new sections (80EA- 80EE) into<br />

the Employment Rights Act 1996. This new<br />

right will be subject to employees meeting<br />

eligibility criteria similar to that of statutory<br />

paternity pay, which includes having had 26<br />

weeks continuous employment. However,<br />

much of the detail is still unknown as it will<br />

be set out in supporting regulations.<br />

The regulations will detail among other<br />

things the definition of ‘bereaved parent’;<br />

how and when parental bereavement leave<br />

and pay can be taken; and the notice and<br />

evidence which will be required.<br />

Gareth Edwards is a partner in<br />

the employment team at<br />

VWV.gedwards@vwv.co.uk.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 50

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MAKE<br />


With the festive season almost upon us,<br />

Credit Management asked some of its contributors for<br />

their top hangover cures and recipes for leftover turkey.<br />

Brendan Clarkson FCI<strong>CM</strong><br />

Chris Sanders FCI<strong>CM</strong><br />

Kevin Reed<br />

HANGOVER – drink between half-apint<br />

to a pint of water before you go to<br />

bed, also ensure you have a large glass<br />

of water next to your bed for thirsty<br />

moments in the night. In the morning<br />

start with a decent breakfast, something<br />

hot and stodgy! If this fails, a can of Stella<br />

around 11.01am.<br />

Turkey leftovers – I love a turkey<br />

toasted sandwich. Not some half-hearted<br />

attempt using a pre-sliced loaf but<br />

instead with some thickly cut soda bread<br />

lightly toasted with some melted brie<br />

done under the grill. Add some sliced<br />

turkey which has been warmed in the<br />

microwave and then top with cranberry<br />

sauce and some rocket leaves or baby<br />

spinach. Season with salt and pepper.<br />

Bon appetit!<br />

PERSONALLY, I have never had a<br />

hangover so I wouldn't know. Obviously,<br />

that is nonsense. The best hangover<br />

cure that I know is a full English. Now<br />

the controversial bit – with brown sauce<br />

as is only proper with a full English.<br />

Tomato Ketchup is only for steak, chips,<br />

burgers and Americans. As far as the<br />

sausages in a full English are concerned<br />

(there should be two) these are best cut<br />

lengthways then spread with Marmite.<br />

Yes, you either love it or hate it, but don't<br />

knock it until you try it. Trust me on this I<br />

am a credit manager!<br />

I have two Chocolate Labradors –<br />

believe me when I say there is never<br />

any leftover turkey. So, what to do with<br />

leftover turkey? Get a Labrador or two.<br />

They will help you walk off Christmas<br />

over-indulgence and the fresh air will<br />

clear your head the morning after.<br />

SO, the life of a journalist – freelance or<br />

otherwise – is pretty hectic at Christmas.<br />

Deadlines don’t take breaks in <strong>December</strong>.<br />

Having said that, advertising<br />

salespeople do like to take a break. So that<br />

means print titles usually drop an issue<br />

over the festive period. So, <strong>December</strong> can<br />

become a bit of a ‘meetings boozefest’.<br />

Hangover cures? Well, in the old days<br />

I simply wouldn’t have stopped drinking<br />

and a Bloody Mary, pint of stout or even<br />

fizzy lager would sort out the headache.<br />

Nowadays, I can’t keep up that pace.<br />

So, my emergency hangover kit normally<br />

includes salt and vinegar crisps and<br />

Ribena as the first line of offence.<br />

As for leftover turkey – I’d go with it<br />

gently reheated and whacked between<br />

two doorsteps of bread with an inch of<br />

butter either side of said meat, along<br />

with salt, ketchup and stuffing. I should<br />

probably go and get my cholesterol level<br />

checked!<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 52


Karen Young Peter Walker Heather Greig-Smith<br />

AS crazy as it might seem, my best cure<br />

for a hangover is to be brave and do some<br />

exercise! You have to go through a bad<br />

patch at the start as it will get worse<br />

before it gets better, but once your pores<br />

open and you are exercising hard you<br />

will drink more water – sweat it out and<br />

re-hydrate all in one cure.<br />

I’ve got to be honest and say in our<br />

house that the leftover turkey from<br />

Christmas Day usually turns into Boxing<br />

Day dinner i.e. the cold meats put out on<br />

a platter with mashed potato and salad.<br />

Although we always cook some fresh<br />

pigs in blankets which go down a storm<br />

every time. Anything that is left over<br />

from that (unlikely) gets put into a curry<br />

for the day after Boxing Day once I have<br />

done duties of running relatives back<br />

home and things go back to ‘normal’.<br />

THE festive season can be a source of<br />

problems including what to do with the<br />

leftover turkey. When my late wife, a<br />

Chinese from Malaysia, cooked turkey<br />

for the first time, she then had to deal<br />

with the remains. She made a soup stock<br />

– ordinary so far – but she had brought<br />

some shark’s fin from Malaysia, so the<br />

result was shark’s fin soup. That was<br />

back in 1970, but don’t do it today! Sharks<br />

need protection, so make something less<br />

adventurous with that stock.<br />

I was once adventurous with wine<br />

during an evening with some barristers<br />

– this time we were all at a different<br />

bar. I telephoned my tenants from the<br />

tube station. They came to the rescue<br />

and poured me back home. No cure for<br />

the subsequent hangover, but at least I<br />

arrived home safely. I will make such<br />

rescues as an obligation in the tenancy<br />

agreement.<br />

THE best hangover cure has to be going<br />

for a run – rain, shine or snow, a winter<br />

run always leaves me rosy-cheeked and<br />

virtuous (smug), even if it’s utter hell at<br />

the time. A two-hour adventure through<br />

snow-coated fields with an equally<br />

crazy friend or a true crime podcast for<br />

company. Followed by a nice rewarding<br />

gin and tonic. Oh, wait...<br />

What to do with leftover turkey?<br />

Obviously, sandwiches – lots of<br />

mayonnaise and salad. There is always<br />

masses left in our house so we box it<br />

up carefully and put it in the freezer for<br />

future meals/curries, only to dig it out<br />

from the back of the freezer and chuck it<br />

away 12 months later. Must do better this<br />

year!<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 53


High Drama<br />

The editor’s love of all things aviation<br />

does not necessarily extend to flying<br />

with the World’s Favourite Airline.<br />


challenge<br />

HAVE any of you, I<br />

wonder, ever taken off<br />

in a passenger aircraft<br />

at the departure time<br />

stated on your ticket?<br />

That, you may argue,<br />

is not a problem as long as you arrive at<br />

your destination on time, and to an extent<br />

I agree. But what really annoys me is the<br />

unnecessary, soap-opera style drama that<br />

we now go through before, during and<br />

after every flight. I shall explain.<br />

Take my recent return from a<br />

business trip to Hamburg. Having been<br />

patronisingly congratulated for boarding<br />

our aircraft on time (‘Cabin crew, boarding<br />

complete’) the Captain then adds that we<br />

will be delayed taking off, cos although<br />

we’re all good to go, there are delays from<br />

Air Traffic Control. There is an audible<br />

groan from the passengers upfront in the<br />

posh seats.<br />

Never fear, we’re told, while the Captain<br />

is speaking to us, the First Officer is busy<br />

on the blower, attempting to negotiate an<br />

earlier slot (yeah, right). Now when I say<br />

‘earlier’, that will of course still be later<br />

than our actual stated departure time, so<br />

let’s not dress it up like he (or she) is doing<br />

us a favour.<br />

Finally, of course, we do get away, 30<br />

or so minutes late, but our Captain Marvel<br />

again comes on the intercom to tell us<br />

that there is a tail wind and he’ll put his<br />

foot down and do his damnedest to get us<br />

there on time, come hell or high water.<br />

Great. Thanks skipper, but you do know<br />

you are just delivering a service we’ve all<br />

paid good money for, don’t you? And it<br />

wasn’t cheap.<br />

Then of course we have the comedy<br />

of approaching London Heathrow, and<br />

being told that we are going to have to<br />

‘hold’ for ten minutes or so to the south.<br />

‘It’s very busy’ our Captain says, ‘but<br />

fingers’ crossed we won’t be delayed too<br />

long.’ Fingers’ crossed? Fingers’ crossed?!<br />

I’ll give you blooming fingers’ crossed old<br />

son. Did you not know it would be busy?<br />

We did, and we knew we’d fly around in<br />

circles ‘cos we always do.<br />

Now of course when we do finally<br />

get the nod from the Gods at Air Traffic<br />

Control (who must be having the time of<br />

their lives down there working out who<br />

they are going to let land and who they’ll<br />

leave up top for a few more minutes),<br />

the skipper announces ‘Cabin crew ten<br />

minutes to landing’ and a collective sigh<br />

of relief can be felt down the aisle.<br />

We land to the news that not only have<br />

we made up the time lost while waiting to<br />

take off, but we are now actually early. It is<br />

trumpeted as though we should be doing<br />

cartwheels with joy and wanting to start<br />

a family with our hero up front. But, of<br />

course, there’s another snag.<br />

Because we’re early, there’s another<br />

aircraft on our stand, and we have to wait<br />

for him to push back. Then the ground<br />

crews are not ready for us, the air wing<br />

isn’t aligned, and the coaches scheduled<br />

to ship us back to the Terminal building<br />

are nowhere in sight. When we do finally<br />

disembark (‘Cabin crew doors to manual<br />

and cross check’), we’re back to being<br />

only a few minutes late again, and the<br />

Captain is out of his cockpit, grinning like<br />

a schoolboy whose Tuck Shop allowance<br />

has just been increased, expecting a high<br />

five for his efforts on our behalf.<br />

Communication, we know, is<br />

important, and it is better for the crew<br />

to say something rather than leave us<br />

guessing, but the speech is the same<br />

speech, every time, regardless of airline.<br />

Indeed, it is wholly unfair of me to single<br />

out British Airways; they are still the best<br />

IMHO (to be down with the kids). Every<br />

airline does it. So, stop the pantomime<br />

fellas; we’re on to you.<br />

Sean Feast FCI<strong>CM</strong> is getting grumpier.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 54

Are you a Leader<br />

or follower?<br />

CI<strong>CM</strong>Q accreditation is a proven model that has consistently delivered<br />

dramatic improvements in cashflow and efficiency<br />

CI<strong>CM</strong>Q is the hallmark of industry leading organisations<br />

The CI<strong>CM</strong> Best Practice Network is where CI<strong>CM</strong>Q accredited organisations<br />

come together to develop, share and celebrate best practice in credit and<br />

collections<br />

Be a leader – Join the CI<strong>CM</strong> Best Practice Network today<br />

To find out more about flexible options to gain CI<strong>CM</strong>Q accreditation<br />

E: cicmq@cicm.com, T: 01780 722900<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 55



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The solutions are delivered as a software-as-a-service<br />

(SaaS) or as SAP-certified Accelerators for SAP<br />

Finance Receivables Management. With a track record<br />

of reducing days sales outstanding (DSO), bad-debt<br />

and increasing operational efficiency, HighRadius<br />

solutions help teams achieve payback within a year.<br />

www.highradius.com<br />

We offer the most powerful comparable data<br />

resource on private companies.<br />

We capture and treat private company<br />

information for better decision making and<br />

increased efficiency, so we’re ideally suited to help<br />

credit professionals.<br />

Orbis, our global company database has<br />

information on 250 million companies, and offers:<br />

Standardised financials<br />

Financial strength metrics<br />

Extensive corporate structures<br />

www.bvdinfo.com<br />

Sanders Consulting is a niche consulting firm<br />

specialising in improving Credit Management<br />

Leadership & Performance for our clients.<br />

We provide people and process focussed<br />

pragmatic solutions, consultancy, strategy days and<br />

performance improvement workshops and we<br />

are proud to manage and develop the CI<strong>CM</strong>Q<br />

Programme and the Best Practice Network on<br />

behalf of the CI<strong>CM</strong>. For more information please<br />

contact: enquiries @chrissandersconsulting.com.<br />

www.chrissandersconsulting.com<br />

Key IVR provide a suite of products to<br />

assist companies across Europe with credit<br />

management. The service gives the end-user<br />

the means to make a payment when and<br />

how they choose. Key IVR also provides a<br />

state-of-the-art outbound platform delivering<br />

automated messages by voice and SMS. In a<br />

credit management environment, these services<br />

are used to cost-effectively contact debtors and<br />

connect them back into a contact centre or<br />

automated payment line.<br />

www.keyivr.co.uk<br />

American Express is a globally recognised provider<br />

of payment solutions to the business sector<br />

offering flexible collection capabilities to meet<br />

company cashflow objectives across a range of<br />

industries. Whether you are looking to accelerate<br />

cashflow, create a competitive advantage to drive<br />

business or looking to support your customers<br />

in their growth American Express can tailor a<br />

solution to support your needs.<br />

www.americanexpress.com<br />

Credica are a UK based developer of specialist<br />

Credit and Dispute Management software. We<br />

have been successfully implementing our software<br />

for over 15 years and have delivered significant<br />

ROI for our diverse portfolio of customers. We<br />

provide a highly configurable system which enables<br />

our clients to gain complete control over their<br />

debtors and to easily communicate disputes with<br />

anyone in their organisation.<br />

www.credica.co.uk<br />

Moore Stephens is a top ten accounting and<br />

advisory network. Our national creditor services<br />

team has expert insights in debt recovery. This,<br />

combined with unparalleled industry and sector<br />

knowledge, enables our team to assist creditors in<br />

recovering outstanding debts.<br />

www.moorestephens.co.uk<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 56

Proud supporters<br />

of CI<strong>CM</strong>Q<br />

With over 90 years’ experience, we have an<br />

in-depth understanding of the importance of<br />

maintaining customer relationships whilst efficiently<br />

and effectively collecting monies owed, we deliver<br />

when it comes to collecting outstanding debts.<br />

Our Client focus is reflected in the customer<br />

relationships. Structuring our service to meet your<br />

specific needs, providing a collection strategy that<br />

echoes your business character, trading patterns<br />

and budget.<br />

www.atradiuscollections.com/uk/<br />

Graydon UK provides its clients with Credit<br />

Risk Management and Intelligence information<br />

on over 100 million entities across more than<br />

190 countries. It provides economic, financial<br />

and commercial insights that help its customers<br />

make better decisions. Leading credit insurance<br />

organisations, Atradius, Coface and Euler Hermes,<br />

own Graydon. It offers its seamless service<br />

through a worldwide network of offices and<br />

partners.<br />

www.graydon.co.uk<br />

Rimilia provides intelligent, finance automation<br />

solutions that enable customers to get paid<br />

on time and control their cashflow and cash<br />

collection in real time. Rimilia’s software solutions<br />

use sophisticated analytics and artificial intelligence<br />

to predict customer payment behaviour and<br />

easily match and reconcile payments, removing<br />

the uncertainty of cash collection. Rimilia’s<br />

software automates the complete accounts<br />

receivable process improving cash allocation, bank<br />

reconciliation and credit management operations.<br />

www.rimilia.com<br />

DWF is a global legal business, transforming legal<br />

services through our people for our clients. Led by<br />

Managing Partner & CEO Andrew Leaitherland,<br />

we have over 26 key locations and 2,800 people<br />

delivering services and solutions that go beyond<br />

expectations. DWF offers a full range of cost<br />

effective debt recovery solutions including pre-legal<br />

collections, debt litigation, enforcement, insolvency<br />

proceedings and ancillary services including tracing,<br />

process serving, debtor profiling and consultancy.<br />

www.dwf.law/recover<br />

Data Interconnect provides integrated e-billing<br />

and collection solutions via its document delivery<br />

web portal, WebSend. By providing improved<br />

Customer Experience and Customer Satisfaction,<br />

with enhanced levels of communication between<br />

both parties, we can substantially speed up your<br />

collection processes.<br />

www.datainterconnect.com<br />

Dun & Bradstreet grows the most valuable<br />

relationships in business. Whether your customer<br />

portfolio spans a city, a country or the globe, Dun<br />

& Bradstreet delivers the data, analytics and insight<br />

to grow your most profitable relationships and<br />

obtain a global, unified view of your customer<br />

relationships across credit and collections.<br />

www.dnb.co.uk<br />

Organisations around the world rely on Company<br />

Watch’s industry-leading financial analytics to drive<br />

their credit risk processes. Our financial risk<br />

modelling and ability to map medium to long-term<br />

risk as well as short-term credit risk set us apart<br />

from other credit reference agencies. With our<br />

unique H-Score® predicting almost 90 percent<br />

of corporate insolvencies in advance, it is the risk<br />

management tool of choice, providing actionable<br />

intelligence in an uncertain world.<br />

www.companywatch.net<br />

Bottomline Technologies (NASDAQ: EPAY) helps<br />

businesses pay and get paid. Businesses and banks<br />

rely on Bottomline for domestic and international<br />

payments, effective cash management tools,<br />

automated workflows for payment processing<br />

and bill review and state of the art fraud<br />

detection, behavioural analytics and regulatory<br />

compliance. Every day, we help our customers by<br />

making complex business payments simple, secure<br />

and seamless.<br />

www.bottomline.com/uk<br />

Tinubu Square is a trusted source of trade<br />

credit intelligence for credit insurers and for<br />

corporate customers. The company’s B2B<br />

Credit Risk Intelligence solutions include the<br />

Tinubu Risk Management Center, a cloud-based<br />

SaaS platform; the Tinubu Credit Intelligence<br />

service and the Tinubu Risk Analyst advisory<br />

service. Over 250 companies rely on Tinubu<br />

Square to protect their greatest assets: customer<br />

receivables.<br />

www.tinubu.com<br />

The Recognised Standard<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 57


FOLLOWING feedback<br />

received last year, the <strong>2018</strong><br />

Turner Lecture broke with<br />

tradition as it was held on<br />

a Wednesday evening for<br />

the first time in its 18-<br />

year history. Once again, the intimate<br />

surroundings of the Strand, Fleet and Bell<br />

Suite at the Law Society, Chancery Lane,<br />

was the venue and around 60 members<br />

and guests were in attendance. In addition,<br />

there was a welcome return for Robert<br />

Turner, who was unable to attend the event<br />

last year.<br />

The format this year was an interactive<br />

debate/question and answer session and<br />

Richard Seadon, Kent Branch Committee<br />

Member, introduced the session and acted<br />

as moderator/time-keeper throughout.<br />

Following a drinks reception at 17.30, the<br />

delegates then filed into their seats and,<br />

Turner Lecture<br />

The Law Society<br />

in turn, were duly captivated, cultivated<br />

and even somewhat concerned by the<br />

illustrations and presentations of the three<br />

panellists/speakers.<br />

First up was Richard Mawrey QC of<br />

Henderson Chambers who gave a wry but<br />

informative insight into the new Pre-Action<br />

Protocols that were introduced in October<br />

2017. The talk covered the processes<br />

which now had to be adopted by creditors<br />

pursuing money from individuals, and<br />

highlighted the increased time involved as<br />

well as potential pitfalls and scenarios that<br />

could arise for creditors.<br />

Ruth Duncan, immediate Past President<br />

of the Insolvency Practitioners’ Association<br />

(IPA) then took to the stage to explain what<br />

her role involved, the current status of the<br />

world of insolvency, and then discussed<br />

the new rules affecting the Insolvency Act<br />

1986.<br />

The final slot was reserved for<br />

Matthew Richardson, Barrister at Law<br />

with Henderson Chambers, and worldacknowledged<br />

expert in the field of<br />

Cyber-Crime. Some of the statistics, losses<br />

of money involved, and security breaches<br />

covered by Matthew (all backed up with<br />

real-life examples), certainly gave the<br />

audience a jolt as to just how vulnerable<br />

we all are to our personal data being<br />

accessed.<br />

A brief question and answer session<br />

followed the talks before several of the<br />

guests then adjourned for a delightful<br />

dinner in an adjoining room at the Law<br />

Society. Thanks again must go to Richard<br />

for his efforts in making the event such a<br />

success.<br />

AUTHOR: Kevin Artlett FCI<strong>CM</strong><br />

New CI<strong>CM</strong> members<br />

The Institute welcomes new members who have recently joined<br />



FELLOW<br />


Anna Maria<br />

Apenit-Mitula<br />

William Nelson<br />

Kirsten Wachs<br />

Daniel Carlton<br />

Katherine Flowers<br />

Matthew Gibson<br />

Lucky Locord<br />

Nelson Rea<br />

Sue Wood<br />

Andrew Birkwood<br />

Sean Feast<br />

Ben Archer<br />

Wayne Damster<br />

Parya Darabi<br />

Philip Elliott<br />

Joycelin Evans<br />

Karen Herron<br />

Massimo Lepri<br />

Sharon Noland<br />

Francine Pearlman<br />

Matthew Radcliffe<br />

Patrick Rawson<br />


Qasam Ali<br />

Carmel Austin<br />

Olabanji Bamiduro<br />

Simona Bengescu<br />

John Buckley<br />

James Burke<br />

Ellie Cheetham-Blake<br />

Joanne Clarke<br />

Mitchel Cooper<br />

Hannah Curtis<br />

Gavin Duxbury<br />

Michael Falzarano<br />

Raffeina Feeney<br />

Nick Glendening<br />

Stuart Gray<br />

Adele Gray<br />

Yvette Grey<br />

Janet Grimm<br />

Lynsey Handley<br />

Donna Hardy<br />

Lianne Hare<br />

Nigel Harris<br />

Rebecca Harris<br />

Michael Hashim<br />

Jess Hill<br />

Charlene Hughes<br />

Emma Hynes<br />

Olivia Ionescu<br />

Francine Jackson<br />

Kirsty Johnson<br />

Eric Kezayo<br />

Eloise Lawrence<br />

Karen McManus<br />

Demitra Michael<br />

Christopher Milner<br />

Christopher Moore<br />

Nicola Newman<br />

Jodie Pratt<br />

Eoghan Rodgers<br />

Edward Sagoe<br />

Carla Scott<br />

Gareth Short<br />

Michael Shubh<br />

Aurelija Sitvenkina<br />

Michala Skuse<br />

Julie Smith<br />

Charlie Smith<br />

George Smith<br />

Karl Smith<br />

Julie Somerville<br />

Tammy Taylor<br />

Annette Thornalley<br />

Jodie Todd<br />

Kelsey Toon<br />

Cristina Turturean<br />

Karolina Vacz Hosszu<br />

Rosie Walker<br />

Claire Watkins<br />

Paul Willard<br />

Chelsey Williecarr<br />

Donna Wilson<br />

Max Young<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 58


A Successful Re-Launch<br />

North West Branch<br />

EMIRATES Old Trafford was<br />

the iconic venue for a highly<br />

successful re-launch event<br />

for the North West Branch.<br />

Almost 60 delegates<br />

were present to hear<br />

presentations from Philip King, Chief<br />

Executive, and Claire Bishop, Head of<br />

Member Administration, who talked<br />

about the CI<strong>CM</strong>, its history, its work, its<br />

future plans and the various study and<br />

membership options available.<br />

Executive Board member Victoria<br />

Herd followed explaining why credit<br />

management is vital to any business,<br />

along with real-life examples of what can<br />

go wrong when a company neglects best<br />

practice. Victoria went on to describe<br />

the characteristics that go into making<br />

a good credit professional. Christopher<br />

Hardman from Bureau Veritas gave an<br />

amusing and well-received account of his<br />

journey as a CI<strong>CM</strong> Apprentice, drawing<br />

on comparisons with ‘The most famous<br />

apprentice of them all’, Luke Skywalker.<br />

The presentations were rounded off<br />

with a summary from Karen Young,<br />

Director of Hays Credit Management, of<br />

salary and recruitment trends in the credit<br />

profession, with particular emphasis on<br />

the North West Region.<br />

After a round up from Branch Chair<br />

Peter Gent, there was an opportunity<br />

for a lively networking session, over an<br />

excellent buffet provided by the staff at<br />

Old Trafford.<br />

The branch committee would like to<br />

express its thanks to all who attended,<br />

along with Hays for their support; our<br />

presenters for their time and effort; and<br />

the staff at Lancashire County Cricket Club<br />

for their hospitality.<br />

The committee are keen to maintain<br />

the momentum the event has provided<br />

and would like to receive feedback from<br />

members in order to compile a calendar<br />

of future events which will hopefully be as<br />

strongly supported.<br />

Author: David R Thornley FCI<strong>CM</strong> MAAT<br />

Full name:<br />

Mark Clowes.<br />

Current job title:<br />

Credit Control Team Leader.<br />

Current company name:<br />

Hays Specialist Recruitment.<br />

Number of years in credit management:<br />

One and a half.<br />

Number of years in current role: My current<br />

role is my first in credit management.<br />

How did you get into credit management?<br />

I previously worked in payroll and really<br />

enjoyed chasing overpayments we had made<br />

to temporary workers. When a job in credit<br />

control came up I applied and was successful<br />

in getting the role.<br />

What is the best thing about where you work?<br />

I really enjoy the people I work with on a daily<br />

basis. We are all like a little family.<br />

What motivates you?<br />

Career progression, doing my job to the best of<br />

my ability and supporting my team.<br />

What skill do you think has helped you most in<br />

your credit career so far?<br />

I would say my firm but fair approach. You<br />

need to be able to empathise with clients but<br />

at the same time ensure you get the result you<br />

require.<br />

Name three people you would invite to a dinner<br />

party and why?<br />

Donald Trump, Kim Jong-Un and Vladimir<br />

Putin. Being involved in a private conversation<br />

with the most powerful leaders in the world<br />

would be interesting to say the least.<br />

What is your favourite pastime/relaxation<br />

activity?<br />

I like to spend time with my children and<br />

family, socialising with friends and going to<br />

watch the football or boxing.<br />

What is the best/worst quality in a leader?<br />

The best quality is taking responsibility and<br />

ownership for yours and your team’s actions.<br />

The worst quality is to be disengaged and<br />

unaware in what your team are doing<br />

Who is your business or personal hero?<br />

My personal hero is Aleksandar Mitrovic for<br />

pretty much single handily getting Fulham FC<br />

back into the Premier League.<br />

What can't you live without?<br />

I’d say food as I have to have at least three<br />

meals a day.<br />

60SECONDS<br />

WITH<br />

WE WANT<br />

YOUR NEWS!<br />

Get in touch with Andrew Morris by emailing<br />

andrew.morris@cicm.com with your branch<br />

news and event reports. Please only send up<br />

to 400 words and any images need to be high<br />

resolution to be printable, so 1MB plus.<br />

What’s been your most rewarding moment in<br />

your credit career?<br />

When I have worked with a client by agreeing<br />

a repayment plan and the client sticks to that<br />

plan and pays off all of their outstanding debt.<br />

On a personal level, it was being recognised by<br />

my team in our circle of excellence reward and<br />

recognition scheme.<br />

What has surprised you the most about<br />

working in credit?<br />

How difficult it is to get invoices paid.<br />

If you weren’t working in credit management,<br />

what would you be doing?<br />

When I was younger I aspired to be a TV<br />

presenter so probably the next Ant or Dec.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 59



CAREER<br />



London, up to £29,000<br />

Due to a backlog of high volume invoices, this<br />

international law firm is seeking an individual to assist<br />

and make a difference through a 3-6 month fixed term<br />

contract. With a strong focus on invoice amendments,<br />

high volume processing and allocation of fees and<br />

disbursements, this role will require billings experience<br />

and good time management skills to meet deadlines.<br />

You will be able to deal with enquiries and conduct<br />

yourself professionally, ensuring you assist with the<br />

running of a department. This is a fantastic opportunity<br />

to enhance your CV and make a huge impact.<br />

Ref: 3460483<br />

Contact Megan Allen on 020 3465 0020<br />

or email megan.allen@hays.com<br />



London, £25,000-£27,000<br />

A well-established and successful media publishing<br />

business is looking for an AR specialist to take full<br />

ownership of the end-to-end Accounts Receivable<br />

function. Managing an ever expanding portfolio of<br />

international accounts, you will responsible for chasing<br />

payment in a proactive manner, with the aim of improving<br />

DSO. Experience dealing with international clients<br />

and multi currencies is essential, and a track record of<br />

implementing controls/processes would be advantageous.<br />

In return, you will work in a modern and happy office<br />

environment with a supportive and friendly team.<br />

Ref: 3450829<br />

Contact Julia Foster on 020 3465 0020<br />

or email julia.foster2@hays.com<br />




London, £28,000 + bonus<br />

This fast-paced, modern and exciting recruitment<br />

company is looking for a credit controller to join its<br />

sociable team. In this role, you will chase the European<br />

ledger and speak to multiple German clients, building<br />

relationships with them. You will also be involved in<br />

allocations and reconciliations with the management of<br />

a £5million plus ledger. To be successful, you will have a<br />

driven and hardworking attitude and be able to fit into<br />

a fun and sociable team. Any finance background will be<br />

suitable but fluency in German is essential.<br />

Ref: 3448464<br />

Contact Holly Parkes on 020 3465 0020<br />

or email holly.parkes@hays.com<br />



Coventry, up to £24,000<br />

An excellent opportunity has arisen at a large retail<br />

company for a credit controller with experience working<br />

in a large complex commercial business handling debts of<br />

£1 million upwards. With a strong emphasis on reviewing<br />

credit worthiness, credit limits, risk categories and stops in<br />

respect of existing accounts, this role focuses on building<br />

relationships with large clients who hold high volume and<br />

high value accounts, ensuring that queries are resolved<br />

promptly. As a confident communicator, you will be able<br />

to prioritise your own work and manage your own diary in<br />

relation to chasing the debt.<br />

Ref: 3460095<br />

Contact Janice White on 024 7690 2024<br />

or email janice.white@hays.com<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 60




Sheffield, £23,000 + benefits<br />

This well-established, market leading company is looking<br />

for a senior credit controller with linguistic capability to<br />

join its finance team. Your duties will include ensuring<br />

cash collection is achieved and payments obtained by<br />

agreed terms through the maintenance and control of<br />

the sales ledger across the entire EMEA region. Previous<br />

credit control experience is essential and you will ideally<br />

be a French or Italian speaker. To be successful, you will<br />

have the ability to work towards and achieve deadlines,<br />

work well as part of a team or on your own initiative,<br />

possess good self-motivational and organisational skills<br />

and excellent Excel skills. Ref: 3178916<br />

Contact Daniel Cherry on 0114 273 8775<br />

or email daniel.cherry@hays.com<br />



Abingdon, £15-£20 per hour<br />

An industry leading manufacturing company requires<br />

a senior credit controller to join its finance team on<br />

a full time temporary basis until February. Reporting<br />

into the Financial Controller, you will be responsible for<br />

maintaining upkeep of the complicated credit ledger<br />

for specified territories, ensuring the company complies<br />

with the group policies on risk management and aged<br />

debt reporting. As an experienced credit controller, you<br />

will have worked at a senior level, dealing with high debt<br />

clients. You will receive a competitive hourly rate in line<br />

with £30,000-40,000, with guaranteed work over the<br />

Christmas period. Ref: 3465957<br />

Contact Imtiaz Khandokar on 01865 727071<br />

or email imtiaz.khandokar@hays.com<br />




Worksop, up to £22,000 + bonus<br />

This national services company requires multiple credit<br />

controllers for a central services office based in Worksop.<br />

This is an excellent opportunity to work alongside a<br />

large finance team and develop your experience as an<br />

outstanding credit controller, working to KPI targets<br />

to retrieve and minimise outstanding debt. You will be<br />

driven and competent, keen to enhance your credit<br />

skills and work for a well-known organisation where<br />

progression opportunities are available for strong<br />

performers. Natural progression into future roles will<br />

likely be available if desired for high performers.<br />

Ref: 3442016<br />

Contact Arthur Blyth on 0114 273 8775<br />

or email arthur.blyth@hays.com<br />



London, up to £19 per hour (PAYE)<br />

This company is a market-leading software developer and<br />

is one of leading tech companies in London. Due to rapid<br />

growth, this company now requires a revenue assistant<br />

to come in and take ownership of the revenue. You will<br />

be responsible for client billing, cash allocations and<br />

bank reconciliations. To be successful, you will have high<br />

volume invoice experience and be a motivated individual<br />

who can take control of the entire function. The company<br />

is located in modern offices with an open-plan breakout<br />

area and multiple perks.<br />

Ref: 3452877<br />

Contact Nathan Cumine on 020 3465 0020<br />

or email nathan.cumine@hays.com<br />

This is just a small selection of the many<br />

opportunities we have available for credit<br />

professionals. To find out more email<br />

hayscicm@hays.com or visit us online.<br />

hays.co.uk/creditcontrol<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 61


The rise and rise of<br />

Peer-to-Peer alternative<br />

finance. Page 13<br />

The story behind the<br />

collapse of Toys R Us.<br />

Page 36<br />



<strong>CM</strong> <strong>December</strong> 2017.indd 1 21/11/2017 13:41<br />

Sean Feast comments<br />

on the Bell Pottinger<br />

saga. Page 4<br />

Are CRAs doing<br />

enough around bogus<br />

accounts. Page 26<br />

THE CI<strong>CM</strong> MAGAZINE FOR<br />



<strong>CM</strong> October 2017.indd 1 21/09/2017 13:47<br />

MARCH <strong>2018</strong> £12.00<br />

People Power<br />

How self-serve is<br />

supporting customer<br />

engagement. Page 14<br />

Taken On Trust<br />

Sean Feast speaks to<br />

Joanna Elson of the Money<br />

Advice Trust. Page 22<br />



Winners of the<br />

CI<strong>CM</strong> British<br />

Credit Awards<br />

<strong>2018</strong><br />

<strong>CM</strong> March <strong>2018</strong>.indd 1 21/02/<strong>2018</strong> 13:56<br />

How AI is challenging<br />

our ethical code.<br />

Page 17<br />

The state of the credit<br />

management nation.<br />

Page 34<br />



<strong>CM</strong> April <strong>2018</strong>.indd 1 21/03/<strong>2018</strong> 11:10<br />

Sean Feast talks to<br />

the new CEO of Hoist<br />

Finance. Page 13<br />

How Bexley Council<br />

is improving supplier<br />

relationships. Page 16<br />



<strong>CM</strong> June <strong>2018</strong>.indd 1 21/05/<strong>2018</strong> 11:04<br />


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

CI<strong>CM</strong> EVENTS<br />

1 <strong>December</strong><br />

CI<strong>CM</strong> Sheffield and District Branch<br />


Tis The Season To Be Networking<br />

Contact : (0114) 2518850 (239) / 0771 3367588<br />

Paula Uttley<br />

VENUE : Genting Casino, St Paul's Place, Arundel<br />

Gate, Sheffield, S1 2PN<br />

4 <strong>December</strong><br />

CI<strong>CM</strong> North East Branch<br />


Christmas Quiz<br />

Contact : Email northeastbranch@cicm.com<br />

by 29 November <strong>2018</strong>.<br />

Please look out for any further updates on<br />

our Branch forthcoming events at http://<br />

www.cicm.com/branches/north-east/ .We are<br />

actively seeking people who are keen to find<br />

out more about the CI<strong>CM</strong>, and always welcome<br />

non-members and members bringing a friend,<br />

colleague or even their whole team!<br />

VENUE : Old George Inn (upstairs bar)<br />

Old George Yard (just off Bigg Market), Newcastle<br />

upon Tyne, NE1 1EE.<br />

5 <strong>December</strong><br />

CI<strong>CM</strong> West Midlands Branch<br />


German Market Winter Warmer<br />

Contact : Kim Delaney-Bowen: 07581 160 521<br />

VENUE : RSM Office, St Philips Point,<br />

Birmingham, B2 5AF<br />

30 January<br />

CI<strong>CM</strong> South Wales Branch<br />


Are The Robots Coming or Are They Here<br />

Already? What will you do?<br />

Contact : To reserve a place please email<br />

southwalesbranch@cicm.com<br />

Diana Keeling (07921) 492348<br />

VENUE : Atradius, 3 Harbour Road, Cardiff, CF10<br />

4WZ<br />


6-7 <strong>December</strong><br />

Forums International – International<br />

Telecoms Risk Forum (ITRF)<br />

LONDON<br />

Contact : For more information email<br />

itrf@forumsinternational.co.uk<br />

11 <strong>December</strong><br />

Experian Credit Forum – FMCG Ireland<br />

DUBLIN<br />

Contact : Please contact Brent.cumming@<br />

experian.com on 07885 675 092 if you would like<br />

further details.<br />

11 <strong>December</strong><br />

Experian Credit Forum –<br />

Oil & Fuelcard Ireland<br />

DUBLIN<br />

Contact : Please contact Brent.cumming@<br />

experian.com on 07885 675 092 if you would like<br />

further details.<br />

12 <strong>December</strong><br />

Forums International – Export/International<br />

Credit Forum (ECF/ICF)<br />

LONDON<br />

Contact : For more information email<br />

ecf@forumsinternational.co.uk<br />

VENUE : Moore Stephens, London<br />

<strong>CM</strong><br />

The magazine for<br />

consumer and<br />

commercial credit<br />

professionals<br />

<strong>CM</strong><br />


<strong>DECEMBER</strong> 2017 £12.00<br />

INSIDE<br />

<strong>2018</strong> DESKTOP<br />

Face to Face<br />

Sean Feast speaks<br />

to Business Minister<br />

Margot James<br />

<strong>CM</strong><br />


OCTOBER 2017 £10.00<br />

Life on the edge<br />

Consumers caught<br />

in the debt trap<br />


Chain Reaction<br />

The cost of being in<br />

– and out – of debt<br />


INSIDE<br />

<strong>CM</strong><br />


APRIL <strong>2018</strong> £12.00<br />

Barrel Role<br />

How the UK wine industry<br />

is finding cash to grow<br />

<strong>CM</strong><br />


JUNE <strong>2018</strong> £12.00<br />

Winds of<br />

change<br />

Headwinds on<br />

the path to<br />

economic<br />

improvement<br />



IN DEPTH<br />


ASK THE<br />


GLOBAL<br />

NEWS<br />


TRADE<br />



HR<br />





TO SUBSCRIBE CONTACT: T: 01780 722903 E: ANGELA.COOPER@CI<strong>CM</strong>.COM<br />

The Recognised Standard / www.cicm.com / July/August June <strong>2018</strong> / PAGE <strong>2018</strong> / 58 PAGE 58<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 62

CI<strong>CM</strong><br />


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The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 63<br />

*Price shown is for Affiliate Grade. Does not include joining fee. Subject to Terms & Conditions.

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />




Atradius Collections Ltd<br />

3 Harbour Drive,<br />

Capital Waterside,<br />

Cardiff Bay, Cardiff, CF10 4WZ<br />

United Kingdom<br />

T: +44 (0)2920 824700<br />

W: www.atradiuscollections.com/uk/<br />

Atradius Collections Ltd is an established specialist in business<br />

to business collections. As the collections division of the Atradius<br />

Crédito y Caución, we have a strong position sharing history,<br />

knowledge and reputation.<br />

Annually handling more than 110,000 cases and recovering over<br />

a billion EUROs in collections at any one time, we deliver when<br />

it comes to collecting outstanding debts. With over 90 years’<br />

experience, we have an in-depth understanding of the importance of<br />

maintaining customer relationships whilst efficiently and effectively<br />

collecting monies owed.<br />

The individual nature of our clients’ customer relationships is<br />

reflected in the customer focus we provide, structuring our service<br />

to meet your specific needs. We work closely with clients to provide<br />

them with a collection strategy that echoes their business character,<br />

trading patterns and budget.<br />

For further information contact: Hans Meijer, UK and Ireland Country<br />

Director (hans.meijer@atradius.com).<br />


Premium Collections Limited<br />

3 Caidan House, Canal Road<br />

Timperley, Cheshire. WA14 1TD<br />

T: +44 (0)161 962 4695<br />

E: paul.daine@premiumcollections.co.uk<br />

W: www.premiumcollections.co.uk<br />

For all your credit management requirements Premium Collections<br />

has the solution to suit you. Operating on a national and international<br />

basis we can tailor a package of products and services to meet your<br />

requirements.<br />

Services include B2B collections, B2C collections, international<br />

collections, absconder tracing, asset repossessions, status reporting<br />

and litigation support.<br />

Managed from our offices in Manchester, Harrogate and Dublin our<br />

network of 55 partners cover the World.<br />

Contact Paul Daine FCI<strong>CM</strong> on +44 (0)161 962 4695 or<br />

paul.daine@premiumcollections.co.uk<br />

www.premiumcollections.co.uk<br />


Blaser Mills Law<br />

40 Oxford Road,<br />

High Wycombe,<br />

Buckinghamshire. HP11 2EE<br />

T: 01494 478660/478661<br />

E: Jackie Ray jar@blasermills.co.uk or<br />

Gary Braathen gpb@blasermills.co.uk<br />

W: www.blasermills.co.uk<br />

A full-service firm, Blaser Mills Law’s experienced Commercial<br />

Recoveries team offer pre-legal collections, debt recovery,<br />

litigation, dispute resolution and insolvency. The team includes<br />

CI<strong>CM</strong> qualified staff, recommended in both Legal 500 and<br />

Chambers & Partners legal directories.<br />

Offices in High Wycombe, Amersham, Rickmansworth, London<br />

and Silverstone<br />

Lovetts Solicitors<br />

Lovetts, Bramley House, The Guildway, Old Portsmouth<br />

Road, Guildford, Surrey GU3 1LR<br />

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

W: www.lovetts.co.uk<br />

Lovetts has been recovering debts for 30 years! When you<br />

want the right expertise to recover overdue debts why not use a<br />

specialist? Lovetts’ only line of business is the recovery of<br />

business debts and any resulting commercial litigation.<br />

We provide:<br />

• Letters Before Action, prompting positive outcomes in more than 80<br />

percent of cases • Overseas Pre-litigation collections with<br />

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

management system ‘CaseManager’<br />

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

“...All our service expectations have been exceeded...”<br />

“...The online system is particularly useful and is extremely easy<br />

to use... “...Lovetts has a recognisable brand that generates<br />

successful results...”<br />


St George’s House, 56 Peter Street, Manchester, M2 3NQ<br />

W: www.stripes-solicitors.co.uk<br />

T: 0161 832 5000<br />

95percent success rate in disputed litigation<br />

cases over several decades<br />

Stripes technical excellence, tenacity and commercial insight has led<br />

to this 95 percent success rate over several decades. We have been<br />

particularly recommended as a leading law firm by the Legal 500 in<br />

the litigious field for representing clients with significant and complex<br />

issues.<br />

Our specialist commercial debt recovery and insolvency team work<br />

with businesses ranging from SMEs to larger PLCs recovering<br />

business debts on a no cost or fixed fee basis and often<br />

recovering debts within days. We aim to understand your business<br />

and tailor our services to suit your requirements. Our online service<br />

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

new debtor cases and to generate new legal instructions.<br />

Yuill + Kyle<br />

Capella, 60 York Street, Glasgow, G2 8JX, Scotland, UK<br />

T: 0141 572 4251<br />

E: scowan@yuill-kyle.co.uk<br />

W: www.debtscotland.com<br />

Do You Have Trouble Collecting Debts in<br />

Scotland? We Don’t<br />

Yuill + Kyle is one of Scotland’s leading debt recovery and credit<br />

control law firms. With over 100 years of experience, we are<br />

specialists in resolving disputed and undisputed debts. Our track<br />

record for successful recoveries means you have just moved one step<br />

closer to getting your money back.<br />

How we can help you:<br />

• Specialist advice for all of your legal matters<br />

• A responsive and straightforward approach<br />

• Providing you with solutions-driven advice<br />

• Delivering cost certainty and value for money<br />

Our services<br />

• Pre-sue<br />

• Fast track collections<br />

• Judgement enforcement<br />

• Insolvency<br />

• Bankruptcy<br />

• Liquidation<br />

Sanders Consulting Associates Ltd<br />

T: +44(0)1525 720226<br />

E: enquiries@chrissandersconsulting.com<br />

W: www.chrissandersconsulting.com<br />

Sanders Consulting is an independent niche consulting firm<br />

specialising in leadership and performance improvement in all aspects<br />

of the order to cash process. Chris Sanders FCI<strong>CM</strong>, the principal, is<br />

well known in the industry with a wealth of experience in operational<br />

credit management, billing, change and business process improvement.<br />

A sought after speaker with cross industry international experience in<br />

the business-to-business and business-to-consumer markets, his<br />

innovative and enthusiastic approach delivers pragmatic people and<br />

process lead solutions and significant working capital improvements to<br />

clients. Sanders Consulting are proud to manage CI<strong>CM</strong>Q on behalf of<br />

and under the supervision of the CI<strong>CM</strong>.<br />


Court Enforcement Services<br />

Wayne Whitford – Director<br />

M: +44 (0)7834 748 183 T : +44 (0)1992 663 399<br />

E : wayne@courtenforcementservices.co.uk<br />

W: www.courtenforcementservices.co.uk<br />

High Court Enforcement that will Empower You!<br />

We help law firms and in-house debt recovery and legal teams to<br />

enforce CCJs by transferring them up to the High Court. Setting us<br />

apart in the industry, our unique and Award Winning Field Agent App<br />

helps to provide information in real time and transparency, empowering<br />

our clients when they work with us.<br />

• Free Transfer up process of CCJ’s to High Court<br />

• Exceptional Recovery Rates<br />

• Individual Client Attention and Tailored Solutions<br />

• Real Time Client Access to Cases<br />



Northburgh House, 10 Northburgh Street, London, EC1V 0PP<br />

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

W: www.bvdinfo.com<br />

We offer the most powerful comparable data resource on private<br />

companies. We capture and treat private company information for<br />

better decision making and increased efficiency, so we’re ideally suited<br />

to help credit professionals. Orbis, our global company database has<br />

information on 250 million companies, and offers:<br />

• Standardised financials so you can assess companies globally<br />

• Financial strength metrics using a range of models and including a<br />

qualitative score for when detailed financials aren’t available<br />

• Projected financials<br />

• Extensive corporate structures so you can assess the complete group<br />

– or take the financial stability of the parent into account<br />

Credit Catalyst is a platform where you can combine information from<br />

Orbis with you own knowledge of your customers and get dashboard<br />

views of your portfolio.<br />

Register for your free trial at bvdinfo.com.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 64




grace@cabbell.co.uk<br />




Company Watch<br />

Centurion House, 37 Jewry Street,<br />

LONDON. EC3N 2ER<br />

T: +44 (0)20 7043 3300<br />

E: info@companywatch.net<br />

W: www.companywatch.net<br />

Organisations around the world rely on Company Watch’s industryleading<br />

financial analytics to drive their credit risk processes. Our<br />

financial risk modelling and ability to map medium to long-term risk as<br />

well as short-term credit risk set us apart from other credit reference<br />

agencies.<br />

Quality and rigour run through everything we do, from our unique<br />

method of assessing corporate financial health via our H-Score®, to<br />

developing analytics on our customers’ in-house data.<br />

With the H-Score® predicting almost 90 percent of corporate<br />

insolvencies in advance, it is the risk management tool of choice,<br />

providing actionable intelligence in an uncertain world.<br />

Graydon UK<br />

66 College Road, 2nd Floor, Hygeia Building, Harrow,<br />

Middlesex, HA1 1BE<br />

T: +44 (0)208 515 1400<br />

E: customerservices@graydon.co.uk<br />

W: www.graydon.co.uk<br />

Graydon UK is a specialist in Credit Risk Management and Intelligence,<br />

providing access to business information on over 100 million entities<br />

across more than 190 countries. Its mission is to convert vast amounts<br />

of data from diverse data sources into invaluable information. Based<br />

on this, it generates economic, financial and commercial insights that<br />

help its customers make better business decisions and ultimately<br />

gain competitive advantage. Graydon is owned by Atradius, Coface<br />

and Euler Hermes, Europe's leading credit insurance organisations. It<br />

offers a comprehensive network of offices and partners worldwide to<br />

ensure a seamless service.<br />

Credica Ltd<br />

Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT<br />

T: 01235 856400E: info@credica.co.uk<br />

W: www.credica.co.uk<br />

Our highly configurable and extremely cost effective Collections and<br />

Query Management System has been designed with 3 goals in mind:<br />

• To improve your cashflow • To reduce your cost to collect<br />

• To provide meaningful analysis of your business<br />

Evolving over 15 years and driven by the input of 1000s of Credit<br />

Professionals across the UK and Europe, our system is successfully<br />

providing significant and measurable benefits for our diverse portfolio<br />

of clients.<br />

We would love to hear from you if you feel you would benefit from our<br />

‘no nonsense’ and human approach to computer software.<br />


CoCredo<br />

Missenden Abbey, Great Missenden, Bucks, HP16 0BD<br />

T: 01494 790600<br />

E: customerservice@cocredo.com<br />

W: www.cocredo.co.uk<br />

CoCredo’s award winning credit reporting and monitoring systems have<br />

helped to protect over £27 billion of turnover on behalf of our customers.<br />

Our company data is updated continually throughout the day and access<br />

to the online portal is available 365 days a year 24/7.<br />

At CoCredo we aggregate data from a range of leading providers in<br />

the UK and across the globe so that our customers can view the best<br />

available data in an easy to read report. We offer customers XML<br />

Integration and D.N.A Portfolio Management as well as an industry-first<br />

Dual Report, comparing two leading providers opinions in one report.<br />

Top Service Ltd<br />

2&3 Regents Court, Farmoor Lane, Redditch,<br />

Worcestershire, B98 0SD<br />

T: 0152 750 3990.<br />

E: enquiries@top-service.co.uk<br />

W: www.top-service.co.uk<br />

Top Service is the only credit reference and debt recovery<br />

agency to specialise in the UK construction sector. Top Service<br />

customers benefit from sector specific information, detailed<br />

payment history intelligence and realtime trade references in<br />

addition to standard credit information. There are currently<br />

3,000 construction sector companies subscribing to the service,<br />

ranging from multi-national organisations to small family firms.<br />

The company prides itself on high levels of customer service<br />

and does not tie its customers into restrictive contracts. Top<br />

Service offers a 25 percent discount to all CI<strong>CM</strong> Members as<br />

well as four free credit checks of your choice.<br />


Experian<br />

The Sir John Peace Building<br />

Experian Way<br />

NG2 Business Park<br />

Nottingham NG80 1ZZ<br />

T: 0844 481 9920<br />

W: www.experian.co.uk/business-information/<br />

For over 30 years Experian have been processing, matching and deriving<br />

insights to provide accurate, up-to-date information that helps B2B<br />

organisations to make more effective, fact based decisions, reduce<br />

risks and meet regulatory standards. We turn complex data into clear<br />

insights that help manage UK and international businesses to maximise<br />

opportunities for growth and identify and minimise the associated risks.<br />

Blending our business and consumer data we can offer a truly blended<br />

score for sole traders and enhanced scoring on SME’s to tell you more<br />

about the business and the people behind the business. Experian can<br />

support with new business, acquisition through to collections while<br />

managing KYC requirements online or via our suite of APIs.<br />

Innovation Software<br />

Innovation Software, Innovation House,<br />

New Road, Rochester, Kent, ME1 1BG.<br />

T: +44 (0)1634 812300<br />

E: jay.inamdar@innovationsoftware.uk.com<br />

W: www.creditforceglobal.com<br />

Innovation Software are the authors of CreditForce, the leading<br />

Collections and Working Capital Management Systems. Our solutions are<br />

used in over 26 countries and by over 20 percent of the Top 100 Global<br />

Law Firms.<br />

Our solutions have optimised Accounts Receivables processes for over<br />

20 years and power Business Intelligence, with functionality to:<br />

• improve cash flow • reduce DSO • control risk<br />

• automate cash allocation • speed up query resolution<br />

• improve customer relationship management<br />

• automatically generate intelligent workflows and tasks<br />

• manage the entire end-to-end collections cycle.<br />

Fully integrated with over 40 leading ERP and Accounting systems,<br />

including SAP, Oracle, Microsoft Dynamics and product partners with<br />

Thomson Reuters Elite we can deliver on either your own computing<br />

infrastructure or through Microsoft Azure’s award winning and secure<br />

cloud service.CreditForce remains the choice solution for world class<br />

businesses.<br />

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

www.creditforceglobal.com for more information.<br />


STA International<br />

3rd Floor, Colman House, King Street Maidstone , ME14 1DN<br />

T: +44(0)844 324 0660.<br />

E: enquiries@staonline.com<br />

W: www.stainternational.com<br />


STA is an award winning B2B and B2C debt collection, confidential<br />

credit control and tracing supplier. ISO9001 quality accredited, and<br />

with the CSAs Collector Accreditation Initiative, duty-of-care is as<br />

important to us as it is to you. Specialising in international debt, in the<br />

past 12 months we’ve collected from 146 countries worldwide. “Your<br />

Debts Online” gives you transparent access to our collection success<br />

and detailed management information, keeping you in control of your<br />

account. We look forward to getting your business paid.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 65 continues on page 66 >

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />




grace@cabbell.co.uk<br />


Tinubu Square UK<br />

Holland House,<br />

4 Bury Street, London .<br />

EC3A 5AW<br />

T: +44 (0)207 469 2577 /<br />

E: uksales@tinubu.com<br />

W: www.tinubu.com<br />

Tinubu Square offers companies across the world the appropriate<br />

SaaS platform solutions and services to significantly reduce their<br />

exposure to risk, and their financial, operational and technical<br />

costs. Easy to implement, our solutions provide an accurate<br />

picture of a customers’ financial health through the entire<br />

order-to-cash cycle, improve cash flow, and facilitate control<br />

of risk across the organization whether group-wide or locally.<br />

Founded in 2000, Tinubu Square is an award winning expert in<br />

the trade credit insurance industry, with offices in Paris, London,<br />

New York, Montreal and Singapore. Some of the largest multinational<br />

corporations, credit insurers and receivables financing organizations<br />

depend on Tinubu to provide them with the means to drive greater<br />

trade credit risk efficiency.<br />


Data Interconnect Ltd<br />

Unit 7, Radcot Estate, 7 Park Rd, Faringdon,<br />

Oxfordshire. SN7 7BP<br />

T: +44 (0) 1367 245777 F: +44 (0) 1367 240011<br />

E: sales@datainterconnect.co.uk<br />

W: www.datainterconnect.com<br />

Data Interconnect provides integrated e-billing and collection<br />

solutions via its document delivery web portal, WebSend.<br />

By providing improved Customer Experience and Customer<br />

Satisfaction, with enhanced levels of communication between both<br />

parties, we can substantially speed up your collection processes.<br />

Proud supporters<br />

of CI<strong>CM</strong>Q<br />

Rimilia<br />

Corbett House, Westonhall Road, Bromsgrove, B60 4AL<br />

T: +44 (0)1527 872123 E: enquiries@rimilia.com<br />

W: www.rimilia.com<br />

Operating globally across any sector, Rimilia provides intelligent,<br />

finance automation solutions that enable customers to get paid on time<br />

and control their cashflow and cash collection in real time. Rimilia’s<br />

software solutions use sophisticated analytics and artificial intelligence<br />

(AI) to predict customer payment behaviour and easily match and<br />

reconcile payments, removing the uncertainty of cash collection. The<br />

Rimilia software automates the complete accounts receivable process<br />

and eliminates unallocated cash, reducing manual activity by an<br />

average 70% and achieving best in class matching rates recognised<br />

by industry specialists such as The Hackett Group.<br />



Dun & Bradstreet<br />

Marlow International, Parkway Marlow<br />

Buckinghamshire SL7 1AJ<br />

Telephone: (0800) 001-234 Website: www.dnb.co.uk<br />

Dun & Bradstreet grows the most valuable relationships in business.<br />

By uncovering truth and meaning from data, we connect our<br />

customers with the prospects, suppliers, clients and partners that<br />

matter most, and have since 1841. Whether your customer portfolio<br />

spans a city, a country or the globe, Dun & Bradstreet delivers the<br />

data, analytics and insight to grow your most profitable relationships<br />

and navigate credit risk. By combining your insights with our own,<br />

Dun & Bradstreet facilitates a global, unified view of your customer<br />

relationships across credit and collections.<br />


Gravity London<br />

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

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

W: www.gravitylondon.com<br />

Gravity is an award winning full service PR and advertising<br />

business that is regularly benchmarked as being one of the best<br />

in its field. It has a particular expertise in the credit sector, building<br />

long-term relationships with some of the industry’s best-known<br />

brands working on often challenging briefs. As the partner agency for<br />

the Credit Services Association (CSA) for the past 13 years, and the<br />

Chartered Institute of Credit Management since 2006, it understands<br />

the key issues affecting the credit industry and what works and what<br />

doesn’t in supporting its clients in the media and beyond.<br />


Moore Stephens<br />

Moore Stephens LLP, 150 Aldersgate Street,<br />

London EC1A 4AB<br />

T: +44 (0) 20 7334 9191<br />

E: Brendan.clarkson@moorestephens.com<br />

W: www.moorestephens.co.uk<br />

Moore Stephens is a top ten accounting and advisory network,<br />

with offices throughout the UK. Our clients range from individuals<br />

and entrepreneurs, through to large organisations and complex<br />

international businesses. We partner with them, supporting their<br />

aspirations and helping them to thrive in a challenging world.<br />

Our national creditor services team has expert insights in debt<br />

recovery which, combined with their unparalleled industry and<br />

sector knowledge, enables them to assist creditors in recovering<br />

outstanding debts.<br />



American Express<br />

76 Buckingham Palace Road,<br />

London. SW1W 9TQ<br />

T: +44 (0)1273 696933<br />

W: www.americanexpress.com<br />

American Express is working in partnership with the CI<strong>CM</strong> and is<br />

a globally recognised provider of payment solutions to businesses.<br />

Specialising in providing flexible collection capabilities to drive a<br />

number of company objectives including:<br />

•Accelerate cashflow •Improved DSO •Reduce risk<br />

•Offer extended terms to customers<br />

•Provide an additional line of bank independent credit to drive<br />

growth •Create competitive advantage with your customers<br />

As experts in the field of payments and with a global reach,<br />

American Express is working with credit managers to drive growth<br />

within businesses of all sectors. By creating an additional lever<br />

to help support supplier/client relationships American Express is<br />

proud to be an innovator in the business payments space.<br />


Bottomline Technologies<br />

115 Chatham Street, Reading<br />

Berks RG1 7JX | UK<br />

T: 0870 081 8250 E: emea-info@bottomline.com<br />

W: www.bottomline.com/uk<br />

Bottomline Technologies (NASDAQ: EPAY) helps businesses<br />

pay and get paid. Businesses and banks rely on Bottomline for<br />

domestic and international payments, effective cash management<br />

tools, automated workflows for payment processing and bill<br />

review and state of the art fraud detection, behavioural analytics<br />

and regulatory compliance. Businesses around the world depend<br />

on Bottomline solutions to help them pay and get paid, including<br />

some of the world’s largest systemic banks, private and publicly<br />

traded companies and Insurers. Every day, we help our customers<br />

by making complex business payments simple, secure and seamless.<br />




Portfolio Credit Control<br />

1 Finsbury Square, London. EC2A 1AE<br />

T: 0207 650 3199<br />

E: recruitment@portfoliocreditcontrol.com<br />

W: www.portfoliocreditcontrol.com<br />

Portfolio Credit Control, solely specialises in the recruitment of<br />

permanent, temporary and contract Credit Control, Accounts<br />

Receivable and Collections staff. Part of an award winning recruiter<br />

we speak to and meet credit controllers all day everyday understanding<br />

their skills and backgrounds to provide you with tried and tested credit<br />

control professionals. We have achieved enormous growth because we<br />

offer a uniquely specialist approach to our clients, with a commitment<br />

to service delivery that exceeds your expectations every single time.<br />

HighRadius<br />

T: +44 7399 406889<br />

E: gwyn.roberts@highradius.com<br />

W: www.highradius.com<br />

HighRadius is the leading provider of Integrated Receivables<br />

solutions for automating receivables and payment functions such<br />

as credit, collections, cash allocation, deductions and eBilling.<br />

The Integrated Receivables suite is delivered as a software-as-aservice<br />

(SaaS). HighRadius also offers SAP-certified Accelerators<br />

for SAP S/4HANA Finance Receivables Management, enabling<br />

large enterprises to maximize the value of their SAP investments.<br />

HighRadius Integrated Receivables solutions have a proven track<br />

record of reducing days sales outstanding (DSO), bad-debt and<br />

increasing operation efficiency, enabling companies to achieve an<br />

ROI in less than a year.<br />

DWF LLP<br />

David Scottow Senior Director<br />

D +44 113 261 6169 M +44 7833 092628<br />

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

DWF is a global legal business, transforming legal services through<br />

our people for our clients. Led by Managing Partner & CEO Andrew<br />

Leaitherland, we have over 26 key locations and 2,800 people<br />

delivering services and solutions that go beyond expectations. We<br />

have received recognition for our work by The Financial Times who<br />

named us as one of Europe's most innovative legal advisers, and we<br />

have a range of stand-alone consultative services, technology and<br />

products in addition to the traditional legal offering.<br />

Hays Credit Management<br />

107 Cheapside, London, EC2V 6DN<br />

T: 07834 260029<br />

E: karen.young@hays.com<br />

W: www.hays.co.uk/creditcontrol<br />

Hays Credit Management is working in partnership with the CI<strong>CM</strong><br />

and specialise in placing experts into credit control jobs and credit<br />

management jobs. Hays understands the demands of this challenging<br />

environment and the skills required to thrive within it. Whatever<br />

your needs, we have temporary, permanent and contract based<br />

opportunities to find your ideal role. Our candidate registration process<br />

is unrivalled, including face-to-face screening interviews and a credit<br />

control skills test developed exclusively for Hays by the CI<strong>CM</strong>. We offer<br />

CI<strong>CM</strong> members a priority service and can provide advice across a wide<br />

spectrum of job search and recruitment issues.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 66

FROM THE<br />


Credit Management<br />

magazine from 46 years ago.19<br />

72<br />

In November 1972 Republican Richard Nixon defeated Democrat<br />

George McGovern in a landslide, although the election has<br />

the lowest voter turnout since 1948 with only 55 percent of the<br />

electorate voting. The last executions took place in Paris – the<br />

President Georges Pompidou upheld both death sentences despite<br />

public opinion. Atari released the arcade version of Pong which<br />

became the first generation of video game to achieve commercial<br />

success. In <strong>December</strong> 1972 Apollo 17 became the last manned<br />

moon mission when the ‘Blue Marble’ picture of Earth was taken.<br />



Robert Head, Financial Correspondent<br />

for the Daily Mirror entertained the<br />

crowd at the Crypt of the Guildhall<br />

as one of the guest speakers.<br />

Chairman of Council, Owen Mayo<br />

summarised the year’s progress with<br />

representations to the Department<br />

of Trade and Industry, and a meeting<br />

with the Conservative Credit and<br />

Insurance Trade Committee.<br />


Following the Annual Conference of the Institute of Credit Management at the Royal<br />

Garden Hotel on 25 October 1972, AJ Thomas outlines where a computer could assist<br />

credit managers perform tasks such as reviewing credit limits and debt collecting.<br />

The Recognised Standard / www.cicm.com / <strong>December</strong> <strong>2018</strong> / PAGE 67



CI<strong>CM</strong> British Credit Awards 2019<br />

7 February 2019<br />

Royal Lancaster, London<br />

The shortlist has just been announced. Book your table today!<br />

The entries are in... and the shortlist has just been<br />

announced! To see who made the shortlist for the 2019<br />

awards, please visit: www.cicmbritishcreditawards.com<br />

Don’t miss this fantastic evening of networking and celebration<br />

of all of the incredible achievements across the credit and<br />

collections community. With a fabulous line up of entertainment,<br />

it’s the one event in the credit calendar not to be missed!<br />

The CI<strong>CM</strong> British Credit Awards is central to our ethos, rewarding<br />

outstanding achievement and innovation shown by individuals<br />

and organisations.<br />





cicmbritishcreditawards.com<br />

Table bookings<br />

Please contact Natasha Witter on:<br />

T: 020 7484 9876<br />

E: natasha.witter@incisivemedia.com<br />




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