CREDIT MANAGEMENT JULY and August 2022

CREDIT MANAGEMENT

CM

JULY & AUGUST 2022 £12.50

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

DREAM

CATCHER

Exclusive interview

with the Small Business

Commissioner

Why investing in Accounts

Receivable is essential for

survival. Page 12

The importance of

intergenerational collaboration.

Page 46

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12

SHADOW BOXER

Andy Lilley

CONTENTS

8 – NEWS SPECIAL

UK businesses feeling the payment

squeeze.

12 – SHADOW BOXER

Andy Lilley of BlackLine considers why

investing in Accounts Receivable is

essential for survival.

16– DREAM CATCHER

Sean Feast FCICM speaks to Liz Barclay

about her passion for small businesses,

the Prompt Payment Code and a dream

of life on the stage.

20 – THE ROAD TO MOROCCO

Adam Bernstein looks at a country

whose economy is on an upward trend.

26 – CLEAN BANDIT

The world is taking a tougher stance

on fraud.

34 – DRIVING CHANGE

Lucy McCormick considers the future

impact of autonomous vehicles.

44 – SOCIALLY ACTIVE

Shoosmiths discusses the steps it is

taking as an organisation to increase

diversity.

46

GENERATION GAME

Aniela Unguresan

CICM GOVERNANCE

President Stephen Baister FCICM / Chief Executive Sue Chapple FCICM

Executive Board: Chair Debbie Nolan FCICM(Grad) / Vice Chair Phil Rice FCICM / Treasurer Glen Bullivant FCICM

Larry Coltman FCICM / Victoria Herd FCICM(Grad) / Philip Holbrough MCICM

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

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

Credit Management is distributed to the entire UK and international CICM

membership, as well as additional subscribers

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

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

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

trade mark of the Chartered Institute of Credit Management.

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

16

DREAM CATCHER

Sean Feast FCICM

Advisory Council: Caroline Asquith-Turnbull FCICM / Laurie Beagle FCICM / Glen Bullivant FCICM /Brendan Clarkson FCICM

Larry Coltman FCICM / Peter Gent FCICM(Grad) / Victoria Herd FCICM(Grad) / Dave Hindle FCICM / Laural Jefferies FCICM

Neil Jinks FCICM / Martin Kirby FCICM / Charles Mayhew FCICM / Hans Meijer FCICM / Debbie Nolan FCICM(Grad)

Anna O’Reilly FCICM / Amanda Phelan MCICM(Grad) / Allan Poole MCICM / Phil Rice FCICM / Chris Sanders FCICM

Paula Swain FCICM / Atul Vadher FCICM(Grad)

46 – GENERATION GAME

The importance of intergenerational

collaboration.

49 – TALENT POOL

How to attract new talent in a

competitive market.

Publisher

Chartered Institute of Credit Management

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Peterborough PE2 6XS

Telephone: 01780 722900

Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor

Sean Feast FCICM

Deputy Editor

Iona Yadallee

Art Editor

Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Imogen Hart, Rob Howard, Natalie Makin,

Laura Rhodes, Sam Wilson and Mona Yazdanparast

Advertising

Paul Heitzman

Telephone: 01727 739 196

Email: paul@centuryone.uk

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ISSN 0265-2099

Brave | Curious | Resilient / www.cicm.com / July & August 2022 / PAGE 3

EDITOR’S COLUMN

Find me the heads

and I’ll bang them together

Sean Feast FCICM

Managing Editor

LATE payment is either the gift

that keeps giving, if you’re

a journalist, or the problem

that just won’t go away, if

you’re a small business.

Certainly, in more than 30

years of writing about business and credit

management issues, I can’t recall late

payment as ever being something that has

not featured in the news. I particularly

remember carrying articles from the

Better Payment Practice Group (do you

remember them?) which I am quite sure if

I ran again now, would be highlighting the

exact same issues today as we did then.

And this is despite certain small business

groups continuing to assert they have the

problem solved. They don’t. None of us

have. Yet.

A new report from Intrum shows the

full extent of the challenge (see news

page 8). And it also demonstrates how

complicated the issue has become. The

old adage about treating others how

you would like to be treated yourself

appears not to apply when it comes

to payments. More than half of UK

businesses (51 percent) admit that they

pay their suppliers later than they would

ever accept from their own customers,

much higher than the European average

of 33 percent. It bears out something the

Institute has often highlighted; small

companies also pay their own suppliers

late, so let’s not pretend small businesses

are saints, and all large businesses are

sinners.

But what interested me most about the

findings is that businesses believe that

paying on time – or more specifically

paying smaller suppliers on time – is an

ethical responsibility that helps build

a better society. To that end, it should

be an integral part of an organisation’s

Environmental, Social and Governance

(ESG) agenda. Hallelujah.

I have long held the belief that the

narrow interpretation of sustainability –

reducing carbon emissions and planting

a few trees – does not a sustainability

strategy make. That sustainability is as

much about building and maintaining

sustainable supply chains, as it is

about understanding global Sustainability

Development Goals (if anyone does truly

understand them!).

But surely this all comes back to

treating businesses – and the people you

work with – with dignity and respect, and

that means paying a fair price for a fair

day’s work, and doing so within a fair,

agreed period of time.

I have no idea whose heads we need

to bang together to make this finally

understood, but if you can find them for

me, I will happily do the banging.


CMNEWS

A round-up of news stories from the

world of consumer and commercial credit.

Credit card spending

returns to pre-COVID levels

CREDIT card spending and

personal loan borrowing

both increased in the first

quarter of 2022, returning to

pre-COVID trends as the last

restrictions were ended.

Total credit card spending was

£50.4bn, with March seeing the second

highest spending since the pandemic.

There was a significant increase in

credit card spending on travel as

international holiday bookings took off.

Following sharp falls during the

pandemic, outstanding credit card

balances were broadly static over the

quarter at £56bn. There were £4.7bn

of new personal loans made by high

street banks in the first quarter.

The data, published in June by

UK Finance, also suggests that the

growth in savings eased, following

substantial rises through 2020 and

2021. In total, there is £1.1trn held in

savings accounts, of which 84 percent

Written by – Sean Feast FCICM

is in instant access accounts. Overdraft

usage rose during the first quarter but

remains below pre-pandemic norms.

Total overdraft debt of c.£5.5bn is

around 15 percent below the amount

seen in 2019.

Eric Leenders, Managing Director

of Personal Finance at UK Finance,

believes that some people, particularly

those on lower incomes, will already be

feeling the strain: “There are significant

additional pressures on household

finances in the second quarter, most

notably from energy price rises and tax

changes. Our analysis shows that this

year there will be a three percent fall

in disposable incomes for the average

mortgaged household, which may

result in more subdued spending and

borrowing.

“Any customers worried about

meeting their loan payments should

speak to their lender early to discuss

the tailored support available to them.

Leenders won't put customers on a

plan that they can’t afford.”

The report was compiled in

collaboration with Accenture.

Krishnapriya Banerjee, Managing

Director in Accenture’s UK banking

practice, says that the first quarter

painted a fairly stable picture of the

UK’s household finances: “Further

potential interest rate hikes and energy

price booms mean the full effects

of the soaring cost of living have

yet to bite into household budgets:

“Although many banks have started

making provisions to support their

most vulnerable customers, they also

need to focus on communicating their

empathy for consumers affected by

this crisis,” she says.

“Banks need to strike the perfect

balance of delivering digital services

and human-centric banking to help

customers navigate this challenging

situation.”

“There are significant additional pressures on household finances

in the second quarter, most notably from energy price rises and tax changes.’’

BNPL lending looks set to double in 2022

THE growth in Consumer Credit

lending is being rapidly outpaced by the

Buy Now Pay Later market according

to Freedom Finance, one of the UK’s

leading digital lending marketplaces.

BNPL lending is estimated to increase

by 52 percent to well over £20bn in 2022

compared to the previous year. The FCA

estimated that the industry was worth

£2.7bn in 2020 but it has seen rapid

expansion since.

Overall, consumer credit which

includes personal loans and products

like car finance has seen a 12-month

growth rate of 5.7 percent. However,

this does not account for BNPL lending

which has caused concern among

industry participants and the regulator,

as reports about its everyday use rise.

Michael Davidson, Chief Revenue

Officer at Freedom Finance, one

of the UK’s leading digital lending

marketplaces, believes there is a clear

behavioural shift being driven by

the growth in online shopping and

increasing trust in digital lending:

“That is why the industry and regulator

are reacting to the rise in this type

of lending, as consumer demand

accelerates innovation in the embedded

finance sector,” he says.

“While BNPL is clearly the most

well-known product, embedded finance

has many more credit opportunities

– that retail and other sectors are

beginning to take advantage of – as

credit and financial services are

integrated into a broad range of online

users experiences. Many retailers and

businesses in other sectors are rapidly

expanding the range of embedded credit

options they can provide to help their

customers with genuine lifestyle finance

needs.

“There is a danger that the focus of

BNPL as part of the recent embedded

finance movement combined with a

cost-of-living squeeze could leave other

viable credit options in the shadows.

Product choice in this space is essential

to ensure customers get the right credit

for their needs rather than the quickest,

easiest option that may not necessarily

be the best.”


NEWS SPECIAL - EXCLUSIVE

Stranger Tides

The uncertainties, pressures and risks

of the economic landscape across Europe.

AUTHOR – Tommaso Aquilante

SET to be the year of normalisation,

2022 has turned into a year of

growth deceleration, elevated

inflation, and more supply chain

bottlenecks. In Europe, wartriggered

pressures on food and energy

prices have eroded spending power and

are leading businesses to rethink their

competitive strategies. Unfortunately, the

outlook is likely to get worse before it might

get better.

Of the top 10 risks identified by Dun &

Bradstreet’s Country Intelligence Group for

the second quarter of 2022, supply-chain

disruption is the most pertinent for the

global risk environment, with the Russia-

Ukraine war and China’s COVID-19 strategy

adding pressure on already strained

production chains. Global inflation, a top

concern before the beginning of 2022, is

becoming increasingly entrenched, with

major central banks facing a somewhat

forgotten enemy, galloping inflation, after

years of price stability.

AN UNPREDICTABLE LANDSCAPE

To contain inflation, the Bank of England

inaugurated a tightening era at the end of

2021; the Federal Reserve Bank followed

suit in early 2022 with a rate hike cycle

which is now well underway. Interestingly,

the European Central Bank has so far left

the rates unchanged, despite signaling a

more hawkish policy stance for the second

half of 2022. However, there is a sense that

major central banks are behind the curve,

and the corridor for a soft landing of the

economy is increasingly narrower.

The most recent data indicates that

GDP in major Euro-area economies, such

as Germany, France or Italy, has barely

grown in the first quarter of 2022. In the

UK, growth has been higher than in other

large European economies (0.8 percent),

but core inflation is higher too, constantly

exceeding expectations and forecasts. This

higher pressure on prices is in part likely

due to Brexit, which might have acted as

a shock amplifier via larger trade barriers

(the Trade and Cooperation Agreement

was no substitute for free trade or the EU

agreement), reduced labour supply and

greater uncertainty.

If, as it now seems likely, the current

crisis triggers mild recessions in some

European countries, COVID-style fiscal

support seems unlikely to materialise. On

the contrary, since many economies exited

the pandemic with WWII-levels of debt to

GDP, Governments will likely try to ‘balance

the books’ much more than in the recent

past. At the same time, central banks are

at a delicate juncture, with their credibility

hinging on their ability to keep inflation

expectations of firms and households

anchored via tighter monetary policy.

THE BUSINESS IMPACT

Moving forward, ultra-low interest rates

are set to make room for tighter financial

conditions at a time when de-globalisation

forces seem to be gaining momentum.

Both these trends pose risks to businesses,

especially now that the war in Ukraine is

lasting longer than expected. On the one

hand, expansionary monetary (and fiscal)

policy contributed to keeping business

failures artificially low in the last two

years. A more restrictive monetary policy

stance will, all things being equal, have

the opposite effect, possibly pushing

those firms at the brink of survival out of

business.

On the other hand, a politically driven

reconfiguration of trade patterns would

require a substantial reallocation of

resources. Re-directing trade flows would

be costly for firms, especially for small and

medium sized businesses, as they invest

in learning about new markets and new

potential business partners (this would

require additional desk work and field work

for example).

A reorganisation of supply chains on a

global scale would also add inflationary

pressure. While the ifs and the whens

of this reorientation of exchanges are


NEWS SPECIAL - EXCLUSIVE

uncertain, in the short run, firms exposed

to international markets are likely to see

an increase in the risk of non-payment due

to the challenges posed by the conflict in

Ukraine.

DIVERSIFYING RISKS

Scrutinising domestic and international

business partners and diversifying risk is

therefore more important now than ever.

While there is no ‘one size fits all’ approach

to diversification, there are some best

practices firms can adopt.

They can start by combining a supplier

database with other proprietary information.

Then, through the power of advanced

analytics, businesses can gain an enhanced

view of this data, to deliver the necessary

analytics and insights into their supply

Tommaso Aquilante

– Dun & Bradstreet.

Ultimately, businesses

need to be able to

understand and

monitor the risks,

including the current

financial health of

potential and existing

partners.

chains and the health of those they are doing

business with and how they might impact

their own business operations. With these

insights, supplier diversification strategies

could more easily factor in risks such as

border disruption, political unrest, regional

sanctions, or natural disasters.

Ultimately, businesses need to be able to

understand and monitor the risks, including

the current financial health of potential and

existing partners. This will enable them to

assess any potential impact and identify

new opportunities – ensuring business

continuity as Europe weathers this present

economic storm.

Tommaso Aquilante is Associate Director

of Economic Research at Dun & Bradstreet.

>NEWS

IN BRIEF

New partnership

gives visibility to

customer cashflow

YOLT, Europe’s leading independent

and data-driven open banking

provider, has launched a partnership

with Creditsafe that will see Yolt’s

recently launched Cashflow Analyser

added to Creditsafe’s business

information platform for business

and credit professionals.

Using Cashflow Analyser powered

by open banking, Creditsafe will

be able to instantly offer its clients

access to a customer’s cashflow data

to better assess its risk profile.

Historically, credit assessments

involved a complex chain of data

access from multiple suppliers,

which organisations such as

Creditsafe have transformed into

swift and straightforward credit

checks. With the availability of new

and alternative data sources, it is

critical that the complexity or length

of credit application processing is not

increased once again.

Powered by open banking, Yolt’s

Cashflow Analyser automates the

process of retrieving a customer’s

banking data, allowing Creditsafe

to deliver superior and real-time

affordability data for creditors and

businesses lenders.

Nicolas Weng Kan, CEO of Yolt

claims his technology can reduce

processing times on borrowing

applications by 85 percent, saving

lenders up to 18,000 hours per year:

“Our partnership with Creditsafe

enables them to add a valuable,

reliable, and accurate data source to

help their clients optimise their risk

profile assessments” he says. “And

we look forward to helping more

businesses in the UK and across

Europe to benefit from open banking.

Chris Long, Head of Global

Partnerships at Creditsafe, is

excited by the new partnership: “The

availability of open banking data has

been a positive move for the industry,

driving confidence and maintaining

the availability of credit lending

through these highly volatile and

uncertain times. Our partnership

with Yolt means we can seamlessly

integrate this data into our existing

solutions, delivering valuable

new insight whilst maintaining

streamlined credit decision

processes.”


NEWS FOCUS - EXCLUSIVE

UK businesses still

squeezing suppliers

UK businesses are feeling the payment squeeze.

BUSINESSES are paying their

suppliers even later, despite

admitting that they have a

responsibility to smaller firms,

according to early findings

from the 2022 European

Payment Report.

The annual report by credit management

services company Intrum surveyed more

than 11,000 businesses in 29 countries.

It found the business landscape under

pressure from new uncertainty, while still

struggling to recover from the impact of the

COVID years.

In the UK, 68 percent of respondents

said paying on time is critical to maintain

trust with suppliers, and seven out of 10

(69 percent) believe that large businesses

have a responsibility to society to ensure

that they make their payments to smaller

suppliers on time.

However, this acknowledgement of the

importance of timely payments is not

backed up in practice. An increasing share

(67 percent compared to 58 percent in 2021)

say that large multinationals/corporates

are asking them for longer payment terms

than they feel comfortable with.

More than half (53 percent) said the

payment terms they currently offer are

too generous and are harming them as a

business, while 55 percent said they have

accepted longer payment terms than they

are comfortable with as they did not want

to damage client relationships. Many

businesses feel they have no choice, with

45 percent accepting longer terms to avoid

the risk of bankruptcy.

Macroeconomic uncertainty will only

exacerbate this issue – six in ten (58

percent) said they have extended their

payment terms for this reason and 60

percent are finding it hard to pay their

suppliers on time because of inflation.

Worryingly, more than half of the

businesses surveyed (54 percent) said

they don’t have the expertise in-house

to successfully manage the impact of

inflation on the business.

STRENGTHENED CODE

The squeeze on payments continues

despite the fact that Government last

year strengthened the Prompt Payment

Code, which is adhered to by almost 4,000

companies. From July 2021, signatories

were required to pay 95 percent of invoices

to small businesses within 30 days, down

from 60 days.

According to the European Payment

Report, more than half of UK businesses

(51 percent) admit that they pay their

suppliers later than they would ever accept

from their own customers, much higher

than the European average of 33 percent.

“A code of ethics would

be a good start for

businesses, however, 70

percent of the business

surveyed don’t have

one in place, though 45

percent say they intend to

implement one. We expect

to see organisations

looking deeper into these

issues in the coming

years.’’

This is despite the fact that a majority,

six out of 10 businesses, believe that

payment times are so central to sustainable

business behaviour that they should form

part of businesses’ required sustainability

reporting. “Late payments are a perennial

problem, but in the current environment

it is worrying to see larger businesses

increasing their demands on smaller

suppliers,” says Eddie Nott, Managing

Director for Intrum UK & Ireland.

“Many of these businesses have been

weakened by COVID and are unable to hire

employees and develop their products and

services in the way their otherwise would.”

POORLY EQUIPPED

The report found that UK companies do not

necessarily feel equipped to deal with the

payments challenge and the worsening

economy. Almost half (48 percent) say their

finance and administration systems are

seriously outdated and prevent them from

being as agile as they need to be. The same

proportion say they would like to improve

their management of late payments but

find it difficult due to a lack of skills and

resources in-house.

So, what are businesses doing to tackle

the issue? Increasingly, companies are

insisting on pre-payment – the number

doing so has risen to 48 percent from 26

percent in 2020.

Where businesses lack the expertise inhouse

to resolve late payments, accessing

third-party support could give them access

to specialist knowledge and guidance.

However, while more than half (51 percent)

say they take legal action against late or

non-paying customers, only 18 percent say

they work with external debt collection

agencies to resolve their payment issues

first.

Unsurprisingly, three quarters of

respondents say improving their debt

management is a strategic priority this

year. Focusing on early arrears is a target

area for 76 percent and a third are looking

to work with debt collection agencies to

help them.

MOVING AGENDAS

There are causes for optimism. Businesses

are putting sustainability high on the

agenda, with 65 percent saying they have

accelerated their efforts to be sustainable

in the last year.

Alongside climate risk, customer

pressure is a key factor – in the UK

59 percent say they will rapidly lose

customers if they aren’t seen to be taking

their environmental responsibilities

seriously. Faster payments could be the key

to unlocking investment in these crucial

areas. The report’s findings indicate that

faster payments could lead to a boost in

sustainability efforts: 66 percent say that

it would enable them to improve their

sustainability performance.


NEWS FOCUS - EXCLUSIVE

“While the Prompt Payment Code reforms are a

welcome acknowledgement of the importance

of timely payments, businesses are still suffering

from poor payment behaviour.”

“Many of these businesses have been weakened

by COVID and are unable to hire employees and

develop their products and services in the way

their otherwise would.”

In addition, 67 percent of companies

say that prompt payments would make it

possible to pay their own suppliers faster

and 46 percent believe that they would be

able to hire more employees.

“It is heartening to see that businesses

are focusing on sustainability,” says

Eddie. “It is important to realise that faster

payments and good business practices

around payments enable businesses to

take the action they need across a range

of areas. “While the Prompt Payment Code

reforms are a welcome acknowledgement

of the importance of timely payments,

businesses are still suffering from poor

payment behaviour.”

GOVERNANCE CHALLENGE

These aren’t the only sustainability issues

that businesses have in their sights. When

it comes to governance, 50 percent expect

to see more scrutiny around customer

discrimination in the years ahead.

The same proportion, however, admit

they don’t know for sure whether their

own sales teams are treating customers in

a way that could be considered unethical,

such as racial or social profiling.

“A code of ethics would be a good start

for businesses,” says Eddie. “However, 70

percent of the business surveyed don’t

have one in place, though 45 percent say

they intend to implement one. We expect to

see organisations looking deeper into these

issues in the coming years. Late payment

is one of a key set of environmental, social

and governance issues that will demand

their attention.”

For a full copy of the report, visit

www.intrum.co.uk/business-solutions/

analytics-insights/


OPINION

Innovative thoughts

Buy Now, Pay Later might be the posterchild

for innovation in retail finance.

AUTHOR – Phillip Dransfield

BUY Now Pay Later (BNPL)

sits in a class of agreements

between parties that is quite

vast such as invoicing and

gym memberships. As such

it is largely unregulated

and has been deliberately exempt from

consumer credit laws and regulations. The

decision to exempt it, some 50 years ago,

was sensible at the time as the majority

of these types of arrangement posed little

risk. But unlike most of those traditional

arrangements, BNPL is plain and simple,

lending. It may appear to only separate the

timing of purchasing goods or services

from repayment, but it is a contractual

agreement to make repayments, and it can

lead to interest, and fees being charged.

BNPL has the potential to overcommit

the customer, however, and cause harm

if not conducted well. Being unregulated

seems a little at odds with what most

people might expect today, against

a backdrop of increased consumer

protections that focus on reducing

detriment and harm from lending. Looking

at how BNPL has evolved over these last

few years, it feels regulation and coverage

by law is necessary and timely.

But change is afoot. The industry is

bracing itself, even pre-empting what

might happen with BNPL, in order to

get in front of it. The Financial Conduct

Authority (FCA) led a detailed review

of practices in unsecured credit – the

Woolard Review. This review identified

BNPL as being different from other forms

of arrangements, exempt from consumer

credit laws and regulated activity, and

as presenting a high risk of consumer

detriment. Key areas of concern are around

how it is used, promoted, understood, and

whether good practices are in place to

manage the risks and harm to customers.

The FCA recommended it be brought

within its perimeter of conduct rules, and

the Treasury is consulting on making

statutory changes that will remove current

exemptions.

Providers are pretty savvy though. It

seems clear where this will likely end up

– not too dissimilar from other forms of

lending. Many providers are revising terms,

providing new options for payment at the

point of sale and creating more prominent

messaging and options. Their internal

practices are also sharpening up. Providers

are strengthening their credit risk controls

– adopting good practices in line with more

traditional lending products (and providers)

in assessing customer indebtedness and

ability to afford repayments, as well as

better overall management of their credit

risks."

However, it is important to note

the requirements are not certain. The

questions, as the Treasury put it, are – what

is to be included within the scope (that is,

what is no longer to be exempt) and what

controls need to be in place to manage this.

Their conundrum, remembering that BNPL

looks and feels a lot like other types of

arrangements, is - cast the statutory net too

wide and they risk including arrangements

that do not require such attention and may

have unintentional ramifications on a wide

range of practices; cast it too narrowly,

and it is easy for providers to avoid any

requirements by slightly tweaking their

products and practices.

It is also clear that unregulated BNPL

is becoming significant. Short-term

interest free credit used to purchase

more substantial items (as labelled by

the Treasury and FCA) is not what the

law makers and regulators are concerned

with – it is not what is growing rapidly

or causing detriment to consumers. The

focus of their attention is what they call

unregulated BNPL agreements, which

typically target lower value items, often

non-essential and fast consumable items

like clothing. This is big and growing

with estimates of over £5b last year, and

projections into the tens of billions by some

analysts.

There is potential for BNPL to become

much bigger that it is currently. If the

wider market foray into BNPL continues,

it will likely cannibalise existing lending,

particularly of credit cards, but it may

also increase spend levels overall. Should

BNPL purchases shift upward in value,

this will see total exposures grow quickly.

Individual online retail shopping amounts

for BNPL are relatively low. But aggregating

spend over multiple purchases for a

customer mounts up. If purchases shift to

more substantive goods – the territory of

short-term interest free items mentioned

previously - it will account for a sizeable

chunk of the quarter trillion-pound

unsecured market. Having the largest

BNPL providers sit outside the regulatory

perimeter, or inconsistent practices

between lenders undermines the whole

unsecured market.

In terms of future outlook, analysis by

Redburn suggests BNPL providers that

only offer this product are unlikely to be

sustainable in the long run. Whilst they

look attractive today, they will soon be

outgunned by incumbent lenders. Some of

the largest and most capable companies

are looking at this. Only very recently

Apple launched its foray into BNPL.

Incumbent banks have keenly watched

the development of this market and are

readying to offer the best elements of this

to their customers.

It is not an easy move though. BNPL is

different to traditional lending and the

service element and way providers interact

with and manage their customers and the

business model, need careful consideration

to ensure these subtleties are understood.

Of the current providers, those able to

deepen their offerings and relationships

with a broader suite of products and

services will see sustainable value,

leveraging BNPL as an effective acquisition

generator for new business.

BNPL may be a positive for greater

financial inclusion, but it also points to a

possible vulnerable customer group who

are less aware, less financially astute,

less resilient, and so more susceptible

to harmful practices. Providers should

therefore aim to build on that foundation

with a very clear long-term perspective. A

view that covers decades, not just the next

few years. This is the only way that BNPL

can become the backbone of how people

spend on low to moderate purchases when

requiring credit.

Phillip Dransfield is a Partner at credit risk

analytics firm, 4most

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OPINION

SHADOW

BOXER

Why investing in Accounts Receivable

is essential for survival.

AUTHOR – Andy Lilley

HISTORICALLY, accounts

receivable (AR) has been

the victim of a serious

lack of investment from a

technological perspective.

Primarily, this lack of investment

has been the result of something simple: a

serious misunderstanding.

AR is largely in the shadows, regarded as a

necessary but transactional back-office function

and not something that creates ‘value-add’ for

the business. Unlike the core accounting of

bookkeeping, AR’s reputation is that of a kind

of conveyor belt. Necessary, but low impact in

the grand scheme of things. As a result, AR is

the victim of fundamental misunderstandings

regarding how it can be optimised – and the

business impact that the right optimization can

have.

When finance professionals think about how

to streamline or optimise AR, typically it has

been viewed as something that may be better

offshored or that the ERP already handles.

This is due to it being largely manual, time

consuming and often transactional. But this

simply moves the problem elsewhere, rather

than solving the underlying issue.

Investing in technology that automates the

accounts receivable function on the other hand

grants you complete visibility over the flow of

cash into your business, in real time. The data,

intelligence and real-time oversight of working

capital that optimised AR offers to businesses

are invaluable, for several key reasons, which I

will outline below.

WORKING CAPITAL

Applying customer payments to customer

accounts quickly and accurately is the cornerstone

of successful AR. However, manual processes

lead to significant delays in unlocking

crucial cashflow.

Money owed by customers is one of the

largest assets on any balance sheet. A recent

report by PwC estimated that the amount of

working capital held hostage in this way at an

enormous €1.2trn globally. According to PwC,

releasing this cash would be enough for global

companies to boost their capital investment by

55 percent, without the need to look externally

for funding or put their cashflow under

unnecessary pressure. With interest rates as they

are right now – never mind what might be on the

horizon – looking internally to find opportunities

Investing in

technology that

automates the

accounts receivable

function on the other

hand grants you

complete visibility

over the flow of cash

into your business, in

real time.

to streamline cashflow and payment processes

is a no brainer.

Let me give you an example: on average,

organisations are paid on day 50-55. For a

business with $500m revenue, each day is worth

$2m. By automating and optimising payment

processes, businesses can potentially release a

significant amount of cash into the bottom line,

with certainty that can then be put to work in

the business.

Releasing cash from receivables is the

quickest and cheapest way to more working

capital, yet organisations continue to rely on

manual processes which don’t provide proper

visibility and tie up cash for far longer than

necessary. Investing in AR frees up more

working capital, which means stronger business

resilience and enables more effective decision

making. Put simply, it puts much more power

in your hands and leaves much less up to

guesswork.

CUSTOMER RELATIONSHIPS

Credit controllers used to be much more

persistent. This was clear in the terminology

they used. They looked at customers as ‘debtors’.

This sounds more akin to something you’d read

in a Dickens novel than the way a business

refers to its trusted partners.

The way you treat your customers not only

reflects your efficiency internally, but crucially

shapes perceptions, both for potential new

customers, and those who might be on the fence

about jumping ship. Chasing a customer for a

payment that was made days before, simply

because you’re reliant on manual processes that

don’t give you proper visibility, could reflect

poorly on your organisation. Aside from the

wasted time and effort, receiving an erroneous

demand for payment on a bad day could be the

difference between a continued relationship

and a swift parting of ways.

Customers provide the value for our

organisations. It’s our customers that are

going to support us through the tough times.

A mindset shift is required here at all levels

of business, including the C-suite. Customers

should be treated with the same respect when

they owe money as when they don’t. Investing in

AR creates the visibility over customer payment

behaviours that is essential to this.

The right solution can unlock decision

intelligence by removing time-consuming and

error-prone processes involved in preparing,


OPINION


Investment is no

longer a nice-to-have,

it is now a must-have

for survival


continues on page 14 >

OPINION


transforming, and visualising data, so your

teams can make more informed decisions

around credit risk policies, collection

strategies, or credit limit increases to create

greater value for the business. It can help

you gain visibility into customer behaviour

changes, which could unlock opportunities

for you to work with customers to solve

payment challenges, before they become

a major problem or increase their line of

credit and in turn your revenue. This in

turn can improve profitability by reducing

the financial risks posed by write-offs and

late payments.

Creating greater visibility over realtime

payments allows you to leave the war

of attrition over unpaid invoices behind.

This in turn leads to a more customercentric

approach to credit, collections and

complaints that can help you to maintain

good customer relationships.

RETAINING TALENT

In an increasingly competitive business

environment, the ability to attract and

retain top talent is crucial to business

success. A recent survey commissioned

by BlackLine suggests that one of the first

steps finance and accounting needs to take

to retain their best workers is to eliminate

transactional, mundane work. More than a

quarter (28 percent) of F&A professionals

surveyed said there weren’t opportunities

to learn new skills because transactional

work takes up so much time, while a similar

number (26 percent) claimed that they had

become bored of the mundane, repetitive

nature of their jobs. What’s more, a quarter

(26 percent) also claimed not to have time to

focus on future career development.

It’s clear that your talent wants to

spend their time adding value, regardless

of function. Completing a long list of

manual tasks, which could be automated,

is not adding value. If 80 percent of your

time is spent on routine tasks that can

be automated, that’s 80 percent of your

value gone before any major or strategic

tasks arise. This wasted energy wastes your

employees, which passes on up the chain.

Automation frees up F&A team members

to focus on strategic, more career-focused

goals, ensuring all of their motivation and

energy is spent bringing value to your

business (and not someone else’s).

MANUAL PROCESSES

Many organisations have now automated

processes such as accounts payable, but the

prevalence of manual processes in accounts

receivable continues to pose serious health

issues for businesses. The problem is that

automating some processes and not others

could ultimately cost you more than you

bargained for. If the budget only stretches

so far, it’s essential to upgrade the process

that will have the biggest impact. Let me

explain by way of an analogy.

Imagine you need to dig a hole

somewhere in your back garden. You could

do it with a shovel, but it needs to be a very

large hole, so doing it that way would take a

huge amount of time and exhausting effort.

So, you hire a JCB. This gets the job done

much faster and with much less effort. The

problem is, you didn’t know where exactly

to dig the hole to begin with and you’ve dug

it in the wrong place. Now, not only do you

still need to dig the hole, but you need to

repair the large area of back garden that is

now a building site.

Automating some F&A processes but

leaving AR up to manual processes creates

a similarly traumatic scenario. Choosing

to invest in accounts receivable opens

up a treasure trove of intelligence and

profitability that could make the difference

between success or failure. When it comes

to accounts receivable, investment is no

longer a nice-to-have, it is now a must-have

for survival.

Automating some F&A

processes but leaving AR

up to manual processes

creates a similarly

traumatic scenario.

Choosing to invest in

accounts receivable

opens up a treasure

trove of intelligence and

profitability that could

make the difference

between success or failure.

Andy Lilley is

Managing Director –

Global AR, BlackLine


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DREAM CATCHER

Sean Feast FCICM speaks to Liz Barclay about

her passion for small businesses, the Prompt

Payment Code and a dream of life on the stage.


INTERVIEW

AUTHOR – Sean Feast FCICM

AS a passionate supporter of

the small business economy

and with a small business

mindset, Liz Barclay – the Small

Business Commissioner – is

arguably in her dream job. At

school in Northern Ireland, however, she had

aspirations of becoming an actress: “I think

it is the attention seeker in me,” she laughs.

“I loved staging performances as a child and

having an audience. It was all about the round

of applause!”

Aside from taking part in school plays and

end of term concerts, Liz realised very quickly

that just wanting the attention was not going to

take her into the realms of a successful career.

Neither, however, did she pay much attention to

the advice of her careers’ advisor: “Our maths

teacher was also our careers’ advisor, and we

were all told we were going to university.

“None of us were directed to consider any

particular career, but rather we were channelled

towards university, which looking back was

probably not the wisest choice for some people

in the class who probably felt inadequate if they

didn’t get the offers they were looking for. The

teacher never spoke about career possibilities

other than being told that IT was the future, and

I don’t think any of us heeded that really good

advice!”

CITIZENS ADVICE

After University, Liz joined Citizens Advice,

having been trained as a counsellor while still

studying. She’d been offered a job in the Foreign

Office but decided against it: “My parents had

worked very hard in the voluntary sector all

their lives, so it was something I had grown up

with in the background,” she explains.

“I have always wanted to work with people

and make a difference to their lives. I don’t want

to ‘help’ people or do things ‘for’ or ‘to’ people,

but I do want to empower people to make things

better for themselves. That’s where Citizens

Advice seemed to be a good sector to move into.

It’s the toughest job I’ve ever done in my life and

I loved it. It brought me into the whole world of

case work and working with people over longer

periods of time to support them while they

sorted out their situations such as debt, benefits

and unemployment and family issues.

“It also moved me into management as I set

up three CABs and then went to the BBC to set

up something similar, which eventually became

the BBC Action Line.”

Liz Barclay

Small Business Commissioner

“I have always

wanted to work with

people and make a

difference to their

lives. I don’t want to

‘help’ people or do

things ‘for’ or ‘to’

people, but I do want

to empower people

to make things better

for themselves.’’

Liz dealt with a good many small businesses

while at Citizens Advice, understanding the

inextricable link between business bills and

household bills for the very smallest businesses:

“Many small businesses still operate their

business accounts through their personal

accounts, and when businesses went down,

it meant taking their households down too.

And when your household is struggling it puts

pressure on the business, like a vicious circle.

The two overlapped in Citizens Advice and it’s

where my obsession with small businesses

started.”

TOUGH RECESSION

This was back in the days of recession in

the early 1990s: “It was terribly tough,” she

continues. “We were losing about 1,000 small

businesses every week and as a result there was

something like 76,000 home repossessions every

year for a couple of years. It was utterly dire and

the last place we ever want to be going back to.”

Ever the opportunist, Liz’s move to the BBC

to work on the new ‘Sound Advice for the

BBC’ took her into reporting, research and

production, and then into presentation and

editing, making more than 60 small business

programmes for BBC2. She then moved to You

and Yours for ten years, retaining her freelance

status. This has enabled her to write articles on

small business, consumer and personal finance

issues for newspapers, magazines and websites,

and deliver training in communications and

media skills.

It has also allowed her to take on various

Board and consultancy roles as vice chair of

the Financial Service Compensation Scheme,

a Member of the Financial Services Consumer

Panel, Chair of the Money Advice Liaison Group

(MALG), Chair of Citizens Advice Camden, Chair

of the Credit Union Foundation, the Equity

Release Council and Fundraising Regulator

Standards Boards, and as an Ambassador for

the Money Advice Trust. She has also written

a number of business management titles,

including ‘Starting and Running a Business all

in one for Dummies’.

POOR PAYMENT CRACKDOWN

When a permanent Small Business Commissioner

was being sought to take over from

Philip King FCICM, Liz jumped at the chance,

and took over the reins in the summer of 2021.

The official press release at the time announced

that she would be spearheading the national



“If small businesses sitting in their

local communities get paid quickly,

they are much more likely to have the

certainty to invest in those communities.

They are best placed at understanding

local needs, so it’s vital in terms of

levelling up that the importance of those

small suppliers is being recognised.”

effort to crackdown on poor payment

practices, so how is it going so far?

‘Slowly,” she admits with a smile, “but

I’m optimistic. The pandemic made some

organisations realise they could pay faster

and that their small business suppliers in

their supply chain were vitally important

and needed looking after if they didn’t

want to lose them to their rivals. We saw

improvements in certain sectors and that

led others to look at their processes and

improve their own payment performance.”

Liz says that ethics is now playing a key

part in the payment debate: “Conversations

around ethics and the desire of smaller

businesses and freelancers to only work

with ethical companies is having an

impact on the payment landscape,” she

continues. “There is a much-publicised

skills shortage at the moment and that

in itself is driving change – if you want

skilled freelance workers you have to

pay them on time. You wouldn’t not pay

your salaried employees on the day their

money was due so why would you do that

to your freelance staff?

“The conversations are also getting

louder around ESG and whether payment

practices and payment performance

could sit on the Governance agenda and

not simply on the Operational agenda.”

Liz says that in talking to Boards and

Non-Executive Directors, she feels they

are not always asking the right questions:

“They’re saying they don’t ask questions

around payment performance as it’s

an operational issue,” she continues.

“I’m pushing back on that and saying

it’s a strategic issue as it’s about ethics


INTERVIEW

AUTHOR – Sean Feast FCICM

and being seen to be an ethical company. It’s

about investors wanting to invest in ethical

companies; suppliers wanting to work with

ethical customers; and future employees with

the best skills coming out of university or

training looking to work with the most ethical

employers.

“The Institute of Internal Auditors gave

guidance to their internal auditors recently to

say ‘here is how you might audit against the

Prompt Payment Code (PPC)’. That’s something

I am delighted to see as it’s a clear signal that

the conversation is opening up.”

SOCIAL BENEFITS

Liz believes that payment practices also

support the ‘Social’ in an organisation’s

Environmental, Social and Governance (ESG)

strategy: “If small businesses sitting in their

local communities get paid quickly, they are

much more likely to have the certainty to invest

in those communities. They are best placed at

understanding local needs, so it’s vital in terms

of levelling up that the importance of those

small suppliers is being recognised.”

The certainty of payment is also critical to

supporting small businesses in their drive for

net zero: “If we don’t get small businesses to

net zero then the whole country won’t get to

net zero, but small businesses won’t invest

unless they have the certainty they are going

to have the money on time,” Liz explains. “So

if we want them to digitise, to make tax digital,

and achieve net zero etc we need to ensure the

smallest companies get paid.”

While changing payment culture is never

going to be achieved overnight (as Liz says it

took 30 years to make seat belts mandatory),

she is encouraged by the level of dialogue

now taking place. This enthusiasm, however,

is tempered with a note of caution: “We need

consistent clear messages,” she says. “There

are 5.6 million small businesses and plenty of

noise, but no-one is hearing a sound at either

end of the debate.

“At the top end we need to think how we

get the message across to big companies to

pay their suppliers on time. But at the other

end we also need to get smaller companies

to understand that they are the talent driving

their bigger customers’ success and that they

therefore have skin in the game – I know they

are fearful they will lose the work – but if you’re

not going to get paid for 120 days you may

be better walking away and finding another

customer who will treat you with more respect.

“There’s plenty of tech out there supporting

smaller businesses,” she adds, “but not all of

those businesses are using tech to its full extent,

for example to chase up invoices without

having to have the human intervention that

they dread for fear it will damage the working

relationship.” Liz is looking to encourage

partnerships working in stewardship: “If bigger

businesses provided induction packs with

smaller suppliers at the point of onboarding,

that would be really helpful. When they state

‘standard terms’, what does that actually mean?

If standard terms are 90 days, then as a small

business you need to understand whether your

cashflow can take it, or how you are going to

fill the gap while you wait to be paid.”

PROMPT PAYMENT CODE

Getting larger organisations to sign up to the

PPC, Liz believes, is very important, for it

obliges those organisations to look at their

processes and consider whether they are fit

for purpose. Liz says that payment processes

are often fine for the organisation that has

created them but seldom take the supplier into

account.

“How many people in a payments department

of a large organisation run their own business

or have been a freelancer?” she wonders. “So

how can we expect them to understand that an

invoice for £300 to a smaller company may be

vital and absolutely has to be paid that Friday

in preference to paying a £30,000 invoice to a

larger company with much deeper pockets that

can survive until Monday? We expect because

we all work in ‘business’ that we all understand

what that means. It doesn’t and we don’t.”

Liz is currently thinking about how the

PPC can be made more attractive to potential

signatories. She sees it as adding further weight

to an organisation’s ethical stance: “It will be

interesting to see how the PPC might be used

as a tool by companies to demonstrate how

ethical they are in the treatment of suppliers

and how it is to their reputational advantage

to be a signatory,” she adds. “I want it to be

something that people aspire to belong to, and

where best practice examples can be shared,

including promoting the benefits of paying

suppliers early and nurturing small businesses

in the supply chain.”

In terms of the Small Business

Commissioner’s relationship with the

Chartered Institute of Credit Management,

Liz has been delighted with the support of

the Chief Executive, Sue Chapple: “The CICM

is very open to the messages we are trying

to communicate and helping us get our

messages out there,” she says. “I see the CICM

as having a vital role to play (in helping to

change payment culture), albeit sometimes

in a different part of the forest, but we will

work with any organisation who can help us in

making the business landscape much clearer

for everybody.”

So does Liz have any intention of pursuing

her childhood dream of a life on the stage?

“Broadcasting is the same thing,” she jokes.

“You are performing. And that was probably a

better place for me to be.

“Give me a platform,” she concludes, “and I’ll

talk about small businesses to anyone.”

“I see the CICM

as having a vital

role to play (in

helping to change

payment culture),

albeit sometimes in

a different part of

the forest, but we

will work with any

organisation who can

help us in making the

business landscape

much clearer for

everybody.”


COUNTRY FOCUS

Morocco is

much more than

any stereotype

The road

to Morocco

MENTION Morocco and

those of a certain age

might possibly think

of Humphrey Bogart

and Ingrid Bergman’s

1942 romantic drama,

Casablanca, or alternatively, Rock the

Casbah – a 1982 song from the Clash.

But of course, as these country profiles

have illustrated over the last few years,

Morocco is much more than any stereotype.

It has the Atlas Mountains, the Sahara,

Phoenician and Roman architecture,

Moroccan cats, great food and, this

will surprise some, the University of al-

Qarawiyyin, the world’s first university

originally founded as a mosque in 857.

AUTHOR – Adam Bernstein

GEOGRAPHIC LOCATION

Officially the Kingdom of Morocco, it’s

located on the north western tip of Africa

and is bounded by Algeria to the east and

south, and Mauritania, also to the south.

With a long coastline on the Atlantic and

the Mediterranean it shares sea borders

with Portugal and Spain to the north.

Morocco was, in 1912, divided into

protectorates run by both France and

Spain. It only unified on independence in

1956.

Morocco is, says ENSAfrica, a signatory

to numerous international organisations

including the African Continental Free

Trade Area Agreement, African Union,

Arab League, Arab Maghreb Union, Bank

for International Settlements, International

Monetary Fund, Organisation of Islamic

Cooperation, United Nations, World Bank

Group, World Customs Organization, and

the World Trade Organization.

The country comprises of Morocco,

which lies directly opposite Gibraltar, and

the Western Sahara (formerly, from 1884

until 1975, the Spanish Sahara – a colony

and then a province), which is mostly

desert and whose sovereignty is disputed.

Of the latter part, 20 percent – mainly

along the border with Mauritania – is

under the control of the Sahrawi Arab

Democratic Republic (SADR), run by the

The souks of Marrakech are the largest in Morocco and famous globally as some of the most exotic

marketplaces to shop in the world. For first-time visitors it can be a bewildering experience. We are here

to make it a little easier. Here is our guide to the souks of Marrakech.

UN–recognised Polisario Front which

claims the whole territory. SADR terms its

20 percent as Liberated Territories and the

rest as occupied territories. Morocco, on

the other hand, claims SADR lands are a

buffer zone.

In terms of landmass, the total area

claimed by Morocco is 716,550 sq. km:

Morocco itself is 446,550 sq. km while the

Western Sahara is 270,000 sq.km.

It should be stated at this point that it’s

not always obvious whether research data

relates to Morocco including the Western

Sahara, or Morocco on its own.

POPULATION DENSITY

Morocco itself has a population of around

36.6m according to a CIA World Factbook

estimate in July 2021. In comparison,

Western Sahara has close to 567,000

souls says a United Nations Department

of Economic and Social Affairs estimate

in 2019. Population density sits at 82.7

people/sq.km for Morocco and just 2.5

people/ sq. km for Western Sahara (World

data).

As for population distribution, the

majority live close to the coastline. The

largest city is Casablanca with 3.3m people


COUNTRY FOCUS


(2014 census data). This is followed by

Fez with 1.1m, Tangier with 947,000,

Marrakesh with 929,000 and Sale with

890,000. Rabat, the capital has just under

578,000 inhabitants. There are a further 27

towns and cities with more than 100,000

residents. Another 33 towns have between

50,000 and 100,000 inhabitants.

Now look at Western Sahara; it’s so

much smaller. Again, based on 2014

census data, the ‘capital’ Laayoun has

217,000 people, Ad-Dakhla 106,000, Smara

57,000, Cape Bojador 42,000, and El Marsa

has just under 18,000. Beyond that are 29

settlements that need little more than an

abacus to count their residents.

The Moroccan population is young with

a median age of 29.3 years; 43.59 percent

is under 25 years old. It is 98 percent

Muslim.

ECONOMY

Morocco’s economic growth is on an

upward trend, albeit with some instability.

GDP in 2000 sat at $41bn, $93.22bn in 2010,

$110bn in 2014, $101bn in 2015, $119bn

2019, but $112bn 2020.

The Middle East Institute takes the view

that over the past decade, Morocco made

great progress in climbing up the global

Doing Business Index (DBI), jumping

from the rank of 130 in 2009 to 53 in

2020. And it’s notable that in 2010 the

Government established the Comité

National de l'Environnement des Affaires

to offer recommendations and coordinate

efforts to improve the country's DBI

ranking.

However, the Institute reckons that a

high and improving DBI ranking has not

translated into economic growth. In fact,

the average economic growth between

2010 and 2020 was just 3.3 percent and

in 2016, Morocco achieved an economic

growth rate of only 1.06 percent, even

though in the same year its DBI ranking

rose from 87 to 71.

Part of the problem seems to be a

dysfunctional judicial system that stunts

private investment. Globes, an Israeli

daily, wrote in May 2021, that Morocco

has ‘one of the less effective legal systems

in the region… (it uses a combination of)

the French civil code, which is considered

rigid and encourages enforcement… and

the informal and traditional methods of

the North African tribes...’

A 2022 document from Thomson

Reuters paints a slightly rosier picture. It

quotes the IMF as expecting GDP growth

to have reached 4.5 percent in 2021 and

will be 3.9 percent in 2022. Not world

beating but considering that COVID

pushed the country into a severe

recession, a positive.

INDUSTRIES AND SECTORS

There are a number of key sectors in

Morocco.

AEROSPACE

Morocco has 24 airports and Ecomnews

Med reported that the National Airports

Office plans to invest $595m developing

them – especially those in and around

Casablanca and Tangier. In terms of

projects, Rabat-Sale airport is to be

expanded and a third terminal added to

Casablanca International. There’s also a

project worth an estimated $520m for a

second airport in Marrakech.


Royal Air Maroc operates 52 aircraft and

as for the armed forces, they primarily fly

US and French aircraft.

Either way, opportunities exist in

maintenance, services, training, parts, air

navigation and radio systems, and security

devices. The US Trade Department notes

that over 140 aerospace companies are

represented in the country.

AGRICULTURE

In 2015 this sector was worth around

14 percent of Morocco’s GDP according

to the Oxford Business Group (OBG),

but 11.7 percent according to Statista

Morocco


COUNTRY FOCUS


(2019). Nevertheless, it employs a large

proportion of the population – 34.1

percent (2020 Statista).

There are three key sectors – modern,

private, irrigated, export-oriented farms

producing mostly fruits and vegetables;

agriculture within large scale damirrigated

perimeters producing dairy,

sugar, seeds, fruits, and vegetables

primarily for the local market; and rainfed

agriculture with a north (favourable)

and south (less favourable) split.

Often typified by traditional techniques,

in 2020 the Government published a new

strategic plan for agriculture – Generation

Green – through to 2030. It seeks to

develop a new agricultural middle class of

between 350,000 and 400,000 households

by supporting young entrepreneurs.

Morocco is a net importer of

agricultural and related products. That

said, Generation Green could open up

opportunities for technology.

EDUCATION

This is a priority for the Moroccan

Government. With a 2015–2030 education

vision plan, the 2021 budget allocated

$7.16bn to the sector. Morocco World

News said in 2021 that the Government

plans to open 21 new higher education

institutions by 2023. There are currently

147 universities in Morocco.

Structurally, pupils have nine years of

pre-secondary school education followed

by three years in secondary education.

University education moved, in 2022, to

a four-year course structure with growing

interest in Masters and MBAs. Morocco

wants to become the hub for higher

education in North Africa.

Opportunities lie in English language

programmes and R&D partnerships.

ENERGY

Morocco imports around 90 percent of its

energy needs. While energy consumption

has increased by about five percent per

year since 2004, the Government aims to

decrease consumption through energy

efficiency measures.

In 2019, the state-owned power utility,

ONEE, generated electricity using coal

(38 percent), hydroelectricity (16 percent),

fuel oil (eight percent), natural gas (18

percent), wind (11 percent), and solar

(seven percent), others (two percent) –

according to the US Government.

Understandably the Government wants

to be more self-sufficient and less reliant

on imports, thus renewables are high up

on the agenda. The goal is for 52 percent

of electricity to come from renewables

by 2030. The Moroccan Agency for

Sustainable Energy seeks to bring

together developers, land acquisition and

financing under one roof.

Opportunities include componentry,

construction, solar, batteries, wind, and

training.

HEALTHCARE

Data here is a little hazy. The US

Trade department believes that the 85

percent of healthcare is provided by the

state through five university hospital

centres in Rabat, Casablanca, Fez, Oujda

and Marrakech, 149 other public hospitals

and a separate military healthcare

system with six hospitals and a

medical centre. However, Businesswire

counts facilities to number 534. The

difference may be down to scale

recorded.

The OBG states that the Ministry of

Economy and Finance, in 2020, had an

operating budget of $1.6bn. Beyond

that, the OBG said that the private sector

accounts for the majority of health care

spending in the kingdom (52.5 percent of

the total) in 2016.

More recently, the Moroccan

Government signed, says a November

2020 report from Projectstoday.com,

multiple deals to build or refurbish 11

hospitals with a spend of $155m.

There are openings in terms of

ventilators, ICU, MRI and scanners, X-Ray,

cancer treatment, infrastructure, and

other diagnostic equipment. The National

Healthcare Plan 2025 has a budget of

about $2.5bn.

INFRASTRUCTURE

Despite having one of the best road

networks in Africa – some 1100 miles of

roads have been built in the last 20 years

– World Highways says that another 3400

miles are planned for delivery by 2030 at a

cost of $9.6bn.

But apart from roads, ports, airports,

and rail links are a priority for the

Government. World Finance considers

that Morocco needs to spend $37bn to

upgrade its infrastructure.

On rail, Plan Rail Maroc 2040 offers a

long-term strategy for the development of

the national rail network and its various

components by 2040.

For ports, there seems to be a number

of ways to count them. MEYS suggests 38,

while the US Trade Department says that

the country has 27 commercial ports -

that handle over 90m tons of cargo a year.


COUNTRY FOCUS


Regardless, the 2030 port strategy aims to

upgrade and expand these ports to cope

with large vessels as the country seeks to

be a gateway to Africa.

SECURITY

Being located where it is, Morocco is

exposed to many threats including drugs

and illegal immigration; it has committed

to implementing major upgrades to

security and seeks to maintain strict

standards at its airports, seaports, and

border crossings.

The armed forces are large but in

need of modernisation. Some 88 percent

of the 215,000 active members and

150,000 reservists are in the army. A

2030 modernisation plan aims to make

its forces interoperable with NATO. The

annual budget is $6.17bn. However, the

Defense Post reckons that Morocco plans

to spend $12.8bn on new equipment

including new frigates and enhanced

coastal surveillance.

TELECOMS

There are three mobile operators which

offer both fixed and mobile connections

in a country that is one of the most

established on the continent. Notably,

there are more than 49m connections

held by a population of more than 36m.

New LTE licences in 2015 sought to cover

65 percent of the country with high-speed

mobile data supported by the National

Broadband Plan 2022 and the Maroc

Digital 2020 strategy; 5G is close to being

deployed.

Morocco wants foreign direct investment

to help it accelerate digital transformation,

promote new technologies, and

generally develop telecommunications

services. Opportunities lie in virtualisation

technology, cloud computing, cyber

security, software, and big data.

WATER

In a region with deserts – including

the Western Sahara – water security is

critical. Annual rain deficits causing

low supply to dams and lower resupplying

of groundwater is a concern. A 2022

report on IntechOpen.com, Water Scarcity

Management in the Maghreb Region,

specifically states that the region is ‘one

of the most water-stressed' as a result of

‘population growth, climate change and

anthropogenic contamination’.

A National Water Plan and the

National Priority Program for Drinking

Water and Irrigation covering the

period of 2020-2027 has a budget of

$11bn. Some 20 dams are planned along

with a search for more groundwater

and three new desalination plants.

There’s also a plan to reuse wastewater.

INTELLECTUAL PROPERTY

Morocco is party to the World Intellectual

Property Organisation and protects

intellectual property rights.

With regard to patents, once registered,

a patent owner can bring actions before

a commercial court and before a criminal

court. Patent infringement is punishable

by two to six months of imprisonment and/

or a fine ranging from 50,000 to 500,000

Moroccan Dirham (MAD). If the offence is

repeated, the minimums and maximums

fines and imprisonment lengths are

doubled. It's similar for trademarks except

that criminal punishments range from

two months to one year of imprisonment

or fines ranging from 50,000 to MAD 1m

MAD. Again, if the offence is repeated,

the minimum and maximum fines are

doubled.

And for copyright breaches, the owner

can seek damages and injunctions against

the infringer. Infringers also face two to

six months of imprisonment and/or a

fine between 10,000 and 100,000 MAD.

Likewise, if the offence is repeated, the

sanctions are increased. (Note: 1m MAD

is around £80,000.)

TAXATION

As for corporate taxation, there are three

bands – 0 to 300,000 MAD charged at 10

percent, 300,001 to 1,000,000 charged at 20

percent, and above that tax is charged at

31 percent.

But there are complications. A rate of 20

percent is also applicable to the portion

of the taxable profit above 1,000,000 MAD

for exporters, miners, and those carrying

out service outsourcing activities. Also,

the top rate of 31 percent is reduced to 28

percent for industrial activity companies

with a net profit of less than 100m MAD.

And then there’s the higher rate of 37

percent on credit institutions, insurance

and re-insurance companies, and

Takafoul insurance firms.

There are no local or regional taxes

levied. VAT is, however, charged at

20 percent with lower rates of seven

percent, 10 percent, and 14 percent on

specifically designated operations. Credit

products are exempted from VAT. A

zero rate applies to exported goods and

services; certain agricultural equipment;

investment in fixed assets; activities

related to hydrocarbon exploration, etc;

certain foods; and newspapers, books,

and documentaries.

Personal taxation is banded with

the first 30,000 MAD being exempted.

Thereafter the bands are 10 percent on

income between 30,001 and 50,000 MAD,

20 percent on income between 50,001

and 60,000 MAD, 30 percent on income

between 60,001 and 80,000 MAD, 34

percent on income between 80,001 and

180,000 MAD, and 38 percent on income

over 180,000 MAD.

The only mandatory social security

regime in Morocco is the one managed

by the Caisse Nationale de Sécurité

Sociale fund. Employees pay 6.74 percent

while employers pay 21.09 percent.

TO CONCLUDE

It’s patently clear, but not necessarily

obvious, that Morocco has much

to offer exporters. Sure, there’s a

culture to navigate, but it’s worth it to

dislodge American and other European

operators.


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FRAUD

Clean Bandit

An increasing number of nations are now

taking a tougher stance on money laundering.

AUTHOR – Syed Rahman

MONEY laundering is

the disguising of the

origins of the proceeds

of crime – it’s the

‘cleansing’ of wealth

that has been obtained

from illegal activity. It can be committed

by someone with their own proceeds or by

someone handling another’s proceeds.

Schemes differ in their complexity.

They may involve varying numbers of

individuals or chains of companies; or

they may be based in just one country or

be cross-border and utilise a system of

offshore accounts. However, they all aim

to make it difficult for anyone to identify

and prove that the wealth in question has

been gained from crime.

In the UK, the Crown Prosecution

Service views money laundering as

involving one of three processes: the

process of getting criminal money into

the financial system – placement; moving

money in the financial system through

complex webs of transactions – layering;

or the process by which criminal money

is absorbed into the economy through

activities such as investment in real estate

– integration.

THE PROCEEDS OF CRIME

In the UK, money laundering is covered

by the Proceeds of Crime Act 2002 (POCA),

specifically, sections 327-329. There are

three main offences created by POCA

which carry penalties of up to 14 years’

imprisonment.

•Section 327: Concealing, disguising,

converting, or transferring criminal

property or removing it from the

jurisdiction. This is the section that

prosecutor’s favour when seeking a

conviction of an individual for selflaundering.

• Section 328: Entering, or becoming

concerned in, an arrangement to facilitate

the acquisition, retention, use or control

by or on behalf of another person of

criminal property knowing or suspecting

that the property is criminal property.

This is likely to be used where the alleged

launderer is not said to be the principal

offender in the criminal conduct.

• Section 329: Acquiring, using, or having

possession of criminal property. Often

used to prosecute an 'end user' - the

person who buys a major item such as a

car or house from a criminal.

The Act is clear that businesses in

the regulated sector are under a duty to

inform the police of any customer they

believe is laundering criminal proceeds

through their business. Failing to meet

this obligation can lead to prosecution.

At the core of all three POCA offences

is the notion of 'criminal property'.

The prosecution must prove that the

property - whether it is cash, a house,

a car, or any other asset - is 'criminal

property'. This is defined at s340(3) of the

Act. The prosecution also must show that

the launderer committed the relevant act

knowing or suspecting that the property

derived from criminal conduct.

Whatever business sector or country

an organisation operates in, taking steps

to prevent money laundering is essential.

In its simplest terms, this involves

assessing the risk of criminal behaviour;

introducing the most appropriate

measures to prevent it; making sure

those measures are properly enforced;

and reviewing the effectiveness of such

measures and, when necessary, revising

them. Failure will make any organisation

more vulnerable to money laundering.

It will also leave it with less scope for

challenging allegations.

INTERNATIONAL ACTION

Money laundering is not an issue unique

to certain countries. An increasing

number of nations are now taking a

tougher stance.

Consider the Fourth EU Money

Laundering Directive that came

into force in 2017. This placed more

obligations on banks and other financial

institutions, removed certain customers’

exemption from due diligence checks,

demanded greater scrutiny of people and

organisations from ‘high risk’’ countries

and required increased transparency on

beneficial ownership.

The Fifth EU Money Laundering

Directive reduced risks associated with

virtual currencies, improved safeguards

for financial transactions between

countries deemed to be high risk

and boosted EU member states’ access to

bank account registers and financial data.

The Sixth EU Money Laundering

Directive came into effect for member

states on 3 December 2020 and had to be

implemented by financial institutions

by 3 June 2021. It standardised the

definition of money laundering across

the EU and was the first directive to cover

cybercrime. Under it, the aiding, abetting,

inciting, and attempting to commit

money laundering are all now classed as

money laundering and criminal liability

for money laundering has been extended

to allow for the prosecution of companies

and partnerships. This directive also

introduced a minimum prison sentence of

four years for money laundering offences,

compared to the previous minimum of

one year.

SUSPICIOUS ACTIVITY

Those regulated by the directives and UK

law are under a legal obligation to identify

any activity linked to money laundering or

terrorist financing. Suspicions of any such

activity should be notified to the National

Crime Agency (NCA) via a Suspicious

Activity Report (SAR).

The NCA receives and analyses SARs to

identify the proceeds of crime. It counters

money laundering and terrorism by

passing on important information to law

enforcement agencies.

The requirement to send a SAR may

initially seem straightforward, but it can

produce circumstances where advice

is required. For example, a financial

institution will have to consider whether

it needs the permission of the NCA to

proceed with a suspicious transaction.

Going ahead with that transaction without

the required NCA consent could lead to

legal repercussions.

Organisations covered by the legislation

must appoint a nominated officer.

This officer must be notified whenever

someone within the organisation has a

suspicion about a transaction or other

activity. The nominated officer must then

decide whether the incident is worthy of

sending a SAR to the NCA.

If the nominated officer suspects

money laundering or terrorist financing,

they should (in most circumstances)

suspend the transaction. But if it is either

impractical or unsafe to suspend, they

should allow it to go ahead and then make

the SAR as soon as possible afterwards.

Under the SAR regime, an organisation

must consider whether it needs a defence

against money laundering charges

from the NCA before it proceeds with a

suspicious transaction or activity. It will

learn if it has been granted a defence by

the NCA when the agency replies to the

SAR.


FRAUD

AUTHOR – Syed Rahman

NO RESPONSE

If the organisation receives no reply from

the NCA within seven working days –

and it believes it has correctly reported

the activity – it can assume a defence is

granted and it can let the transaction go

ahead. If it receives a reply that says it

does not have permission to proceed,

the NCA then has a further 31 calendar

days to act. If the organisation has not

heard from the NCA after the 31 days, it

can proceed with the transaction – it will

not be committing an offence. Since 31

October 2017, an application can be made

to Crown Court by the NCA to increase

the 31-day period by a further 31 days at a

time, up to a maximum period of 217 days.

The 31-day period does not apply to

terrorist financing cases; an organisation

will not have a defence until its request

is granted by the NCA. It is in such

situations that organisations may require

legal advice.

The SAR regime is an effective tool

against money laundering. But those

covered by the law must ensure they

meet their legal obligations. Equally

importantly, they must ensure that their

working practices are fit for purpose

when it comes to making SARs. Staff

must be trained in the relevant legislation

and to know what signs may indicate a

suspicious transaction. There should be

proper reporting channels so that the

nominated officer is quickly alerted to

all suspicions. And the officer must know

precisely who to report to and how to

conduct discussions with the NCA.

It should be remembered that the

directives and UK law are mandatory.

FURTHER INFORMATION ORDERS

If the NCA receives a SAR and needs to

know more to establish whether money

laundering has been committed it can

apply to a magistrates’ court for a Further

Information Order (FIO).

FIOs were established by Section 12

of the Criminal Finances Act 2017. A FIO

requires the subject of it to supply specific

information that is relevant to the inquiry.

The FIO specifies how and within what

time limit the information should be

provided. Failure to comply with the order

can result in a £5,000 fine.

In granting a FIO, the court must be

satisfied that the information would

assist in investigating whether a person

is engaged in money laundering or in

determining whether an investigation of

that kind should be started.

Notably, statements made by a person

in response to a FIO cannot be used against

them in criminal proceedings. Legally

professionally privileged information

cannot be the subject of a FIO.

INFORMATION SHARING

In 2016, the Joint Money Laundering

Intelligence Taskforce (JMLIT) was

set up between UK law enforcement

agencies and vetted staff from major

financial institutions. Its aim was to

share information and encourage greater

understanding of the threat posed by

money laundering. The Criminal Finances

Act 2017, Section 11, enables a person

working in the regulated sector to request

information from and share information

with others in the sector. Section 11

also enables the NCA to request that a

regulated person shares information with

another regulated person.

JMLIT and Section 11 make it more

likely that information on suspected

money laundering will now be exchanged

more frequently - and possibly faster -

between law enforcement agencies and

those in the regulated sector. Those who

give and receive such information may

use it to make a joint SAR. A joint SAR

must be submitted within 84 days of

the NCA being notified of the regulated

persons’ sharing of information.

When information sharing is conducted

between regulated persons, the NCA must

be notified about disclosure requests

being made; the person to whom the

request was made; the identity (if known)

of any person suspected of being involved

in money laundering that is the subject

of the information sharing request; and

any information that the person giving

the notification would be obliged to give

if making a disclosure for the purposes of

Section 330 POCA 2002.

IN SUMMARY

Money laundering is a major issue for

law enforcement agencies both in the UK

and abroad. As has been explained, there

are different types of money laundering

and an investigation can involve several

agencies and various countries.

Its prevention must be considered

a priority by those who have a legal

obligation to do so. Those facing money

laundering allegations must respond in

the most intelligent and appropriate way.

A money laundering investigation

can touch on many other areas of law

and involve many different parties and

authorities. Good advice in what is a very

challenging and multi-faceted area of the

law is, by definition, essential.

Syed Rahman is a partner at

Rahman Ravelli.


PAYMENT TRENDS

That's entertainment

The UK entertainment and hospitality sectors provide

positive spark in the latest late payment figures.

AUTHOR – Rob Howard

LAST month’s late payment figures lacked

positives, with rises across the board.

The latest figures are mixed with a few

further increases, but also some signs of

improvement, particularly UK regions

and sectors. The average Days Beyond

Terms (DBT) across regions and sectors in the UK

decreased by 0.5 and 2.2 days respectively. In Ireland,

the figures rose by 2.7 and 5.3 days respectively.

Average DBT across the four provinces of Ireland

increased by 5.1 days.

SECTOR SPOTLIGHT

In the UK, the sector figures show mostly positive

signs, with 14 of the 22 sectors making reductions

to DBT. The Education sector saw the biggest

improvement (-9.7 days), but it’s reductions for the

Entertainment (-7.2 days) and Hospitality (-8.4 days)

sectors which means that they have surged to the top

of the standings with an overall DBT of 5.5 and 8.1

days respectively. Given how both sectors were badly

affected by the pandemic, with tough restrictions and

nationwide closures of venues, it’s a welcome sight to

see them continuing to bounce back.

Over in Ireland, there were more increases than

decreases to DBT. Of the nine sectors going the wrong

way, the Water & Waste sector saw the biggest leap, with

a steep increase of 30.0 days taking its overall DBT to

a huge 120 days. Elsewhere, the IT and Comms (+27.5

days), Other Service, which includes Hairdressers,

Dry Cleaners, and Beauty Services, (+25.9 days), and

Wholesale and Retail Trade sectors (+17.9 days) also

saw sharp increases. On a more positive note, the

Entertainment sector made the biggest improvement,

reducing its DBT by 11.2 days.

REGIONAL SPOTLIGHT

As with sectors, the regional standings in the UK

are encouraging on the whole, with seven of the 11

regions making steady reductions to DBT. East Anglia

saw the biggest improvement, cutting its DBT by 2.1

days. Meanwhile, a reduction of 1.4 days means that

Yorkshire and Humberside has replaced the South

West as the best performing region with an overall

DBT of nine days.

Across Ireland, it remains a tale of two extremes.

A number of counties, nine to be exact, including

Wexford (-80.6 days), Kildare (-30.3 days) and Cork (-18

days), made sizeable reductions to their DBT. At the

other end of the scale, however, nine counties saw

increases to DBT, significantly Longford (+47.1 days),

Kilkenny (+46.1 days) and Louth (+43.6 days). The

remaining eight counties saw no change.

Of the four provinces of Ireland, only Munster

is moving in the right direction, thanks to a muchneeded

reduction of 13.0 days to its DBT. Leinster

(+21.1 days), Connacht (+7.1 days) and Ulster (+5.2

days) all move in the opposite direction.


STATISTICS

Data supplied by the Creditsafe Group

Top Five Prompter Payers

Region May 22 Change from April 22

Yorkshire and Humberside 9 -1.4

South West 10.4 0.4

East Midlands 12.4 -0.6

North West 12.5 -1.2

West Midlands 13 -1.6

Bottom Five Poorest Payers


Northern Ireland 17 0.5

London 14.3 -1.2

Scotland 14.2 -0.1

East Anglia 14.1 -2.1

South East 14 1

Getting worse

Real Estate 6.2

Business from Home 5.6

Dormant 3.2

Business Admin & Support 1.9

Agriculture, Forestry and Fishing 1.4

Water & Waste 0.7

Manufacturing 0.3

Energy Supply 0.1

Top Five Prompter Payers

Sector May 22 Change from April 22

Entertainment 5.5 -7.2

Hospitality 8.1 -8.4

Real Estate 9.6 6.2

Public Administration 9.8 -5.7

Financial and Insurance 10.9 -4.4

Bottom Five Poorest Payers


Entertainment 5.5 -7.2

Hospitality 8.1 -8.4

Real Estate 9.6 6.2

Public Administration 9.8 -5.7

Financial and Insurance 10.9 -4.4

Getting better

Education -9.7

Hospitality -8.4

Entertainment -7.2

Other Service -7.2

IT and Comms -6.1

Mining and Quarrying -5.9

Public Administration -5.7

Financial and Insurance -4.4

Health & Social -4.2

International Bodies -2.9

Professional and Scientific -2.9

SCOTLAND

-0.2 DBT

Transportation and Storage -2.9

Wholesale and retail trade -1.5

NORTHERN

IRELAND

0.5 DBT

SOUTH

WEST

0.4 DBT

WALES

1.4 DBT

NORTH

WEST

-1.2 DBT

WEST

MIDLANDS

-1.6 DBT

YORKSHIRE &

HUMBERSIDE

-1.4 DBT

EAST

MIDLANDS

-0.6 DBT

LONDON

-1.2 DBT

SOUTH

EAST

1 DBT

EAST

ANGLIA

-2.1 DBT

Construction -0.1

Region

Getting Better – Getting Worse

-2.1

-1.6

-1.4

-1.2

-1.2

-0.6

-0.2

1.4

1

0.5

0.4

East Anglia

West Midlands

Yorkshire and Humberside

London

North West

East Midlands

Scotland

Wales

South East

Northern Ireland

South West


PAYMENT TRENDS

Getting worse

MUNSTER

-13 DBT

SLIGO

0 DBT

CONNACHT

7.1 DBT

GALWAY

0 DBT

CLARE

0 DBT LIMERICK

0 DBT

DONEGAL

0 DBT

LEITRIM

0 DBT

LONGFORD

0 DBT

CARLOW

0 DBT

ULSTER

5.2 DBT

LEINSTER

21.1 DBT

WESTMEATH

0 DBT

WEXFORD

53.5 DBT

DUBLIN

15.6 DBT

Water & Waste 30

IT and Comms 27.5

Other Service 25.9

Wholesale and retail trade 17

Business Admin & Support 15.1

Manufacturing 9.4

Financial and Insurance 6.3

Construction 3.8

Transportation and Storage 3.5

Top Five Prompter Payers – Ireland


Clare 0 -9

Donegal 0 0

Leitrim 0 0

Limerick 0 0

Sligo 0 0

Bottom Five Poorest Payers – Ireland

Getting better

Entertainment -11.2

Professional and Scientific -8.4

Real Estate -6.9

Health & Social -5.8

Agriculture, Forestry and Fishing -0.2


Kilkenny 70.1 46.1

Laois 67.5 0

Carlow 65 0

Louth 62.6 43.6

Kildare 51.1 -30.3

Top Four Prompter Payers – Northern Ireland


Connacht 18.7 7.1

Ulster 18.8 5.2

Munster 19 -13

Leinster 35.7 21.1

Top Five Prompter Payers – Ireland


Health & Social 0 -5.8

International Bodies 0 0

Hospitality 2 0

Transportation and Storage 3.6 3.5

Agriculture, Forestry and Fishing 3.8 -0.2

Bottom Five Poorest Payers – Ireland


Water & Waste 120 30

Business Admin & Support 60.8 15.1

Wholesale and retail trade 38.1 17

IT and Comms 36.5 27.5

Real Estate 28.8 -6.9

Over in Ireland, there

were more increases than

decreases to DBT. Of the

nine sectors going the

wrong way, the Water

& Waste sector saw the

biggest leap, with a steep

increase of 30.0 days

taking its overall DBT to a

huge 120 days.


UK & INTERNATIONAL

DEBT COLLECTION

SPECIALISTS

A NO COLLECTION-NO FEE SERVICE

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International Trade

Monthly round-up of the latest stories

in global trade by Andrea Kirkby.

EU announces new carbon

tax on shipping

THOSE moving goods around the world

have had a difficult time of it recently.

COVID-related lockdowns, goods stuck

in transit, and stratospheric increases in

shipping costs have all made life more

expensive for firms and ultimately, the

consumer.

But – and the EU’s timing on this is

spectacularly good or poor depending on

your perspective – matters are about to be

compounded.

From the beginning of 2023 a new EU

carbon tax on shipping is brought into

play through the EU’s emissions trading

scheme (ETS). All ships transporting

goods to and from the EU, regardless of

the flag they fly, will be taxed on their

emissions. Ships will have to buy carbon

allowances to cover all emissions during

voyages in the EU and half of those

generated by international voyages that

start or finish at an EU port. On top of that,

the regulation will further increase the

price of marine fuel, which is already at a

record high due to the impact of the war

in Ukraine on supply chains.

With the shipping industry consuming

an estimated 300m tonnes of fuel each

year and 10 percent of that wasted, firms

will either have to price in higher costs or

find those companies operating efficient

ships.

INDONESIA PUNCHING

BELOW ITS WEIGHT

INDONESIA, reckons Bloomberg, is

‘punching notably below its weight’.

It has the world’s fourth-biggest

population and sits on key trade

routes between the Pacific and Indian

oceans. Yet growth has lagged that of

neighbours such as the Philippines and

Vietnam over the last ten years, while

its per capita GDP is close to that of

Thailand.

However, rising commodity prices

may change all of that as the country is

running large trade surpluses in palm

oil, natural gas, coal, copper, rubber,

iron, and steel. Further, higher export

earnings have boosted the rupiah – it’s

now the best performing currency in

the region against the dollar.

The country’s long-standing

infrastructure problems have been

partly dealt with through 6240km of

new roads and 15 new airports rolled

out during President Joko Widodo’s

first six years in office. The Government

is now restricting the export of

unprocessed minerals, including

nickel, tin, bauxite, gold, and copper

to encourage foreign companies to

invest in more manufacturing capacity

domestically.

This strategy means red carpet

treatment for international investors.

A May report from The National, based

in the UAE, believes that global trade

will have increased by 2.1 percent

in April despite Russia’s invasion of

Ukraine and the impact of China’s

COVID restrictions. The comment is

based on data compiled by the Kiel

Institute for the World Economy’s Trade

Indicator.

The site also commented that global

Shipping congestion remains high

container ship congestion remains

high with about 11 percent of all goods

shipped worldwide stuck. Overall, the

Kiel Trade Indicator found that US

exports were up five percent month-onmonth

in April, while its imports were

expected to fall slightly by 1.4 percent;

the EU saw growth in both exports, up

0.7 percent, and imports, up 1.1 percent

in April. Meanwhile, in China, exports

and imports are expected to have

stayed static.

The Institute thinks that Russia is

starting to substitute imports from

Europe with imports from Asia. It

noted heightened levels of container

ship activity at the Black Sea port of

Novorossiysk in the Black Sea while the

port of St Petersburg, which is involved

in European trade, is quieter.


Debt crisis in emerging markets

ACCORDING to MoneyWeek, ‘slowing

global growth, surging inflation and rising

interest rates are squeezing emerging

economies harder than most’.

The IMF (International Monetary Fund)

is one organisation that is concerned. It

thinks that these issues, when combined,

will hit poorer and highly indebted

countries harder as inward investment is

cut and their currencies are battered.

These emerging markets will not only

face debt crises but could suffer from

broader economic and social strife which

will be worsened by Government belt

tightening. In turn this will lead to what

Sri Lanka is facing – food and power

KNOW YOUR END-CUSTOMER

BRITISH exporters have been warned by the Government about the importance of

conducting due diligence on customers and suppliers following reports that British-made

components have been found in Russian weapons used in the war in Ukraine.

Services Institute, Operation Z: The Death Throes of an Imperial Delusion, noted

a ‘consistent pattern’ of western parts being found in abandoned Russian kit. The

Government is now investigating how British products have been found in Russian weapon

systems.

The problem for exporters is that some parts have dual use – they have civilian and

military uses. Firms ought to be aware that export licences for dual use items destined for

Russia were suspended at the start of March and an arms embargo on exports to Russia

was introduced following the annexation of Crimea in 2014.

Of course, it doesn’t help that product may have been sent to a customer who then reexports

them to Russia. Even so, UK control regulations requires British firms to do due

diligence on the sales and onward sales of their goods to ensure they do not end up being

used by banned users. Exporters must be aware of where their goods end up.

SAUDIS WANTS MORE

TOURISM

WITH oil a finite resource, Saudi Arabia

is looking to grow its economy in other

ways and tourism is one sector being

targeted; the country is hoping for more

than 70m tourists this year – up from

62m in 2021.

Saudi Arabia is lucky to be a major

religious destination with millions

visiting Islam's two holy cities of Mecca

and Medina annually to perform the hajj

and umrah pilgrimages.

But beyond that Saudi Arabia has, in

recent years, been promoting leisure

travel as part of a strategy aimed at

diversifying the economy away from oil.

The Saudi Tourism Authority reckons

that tourism is now at 130 percent of

pre-pandemic levels.

If you’ve a play in the tourism sector,

now’s your time to make yourself known.

shortages, social unrest, and political

meltdown.

According to the Institute of

International Finance, emerging-market

bonds and loans maturing by the end of

next year total around $9trn of which

over $1trn is directly exposed to rising US

rates. Debt servicing is manageable when

interest rates are virtually zero. But rising

rates could impoverish emerging markets.

The IMF thinks that the number of

low-income countries at or near debt

distressed levels has doubled from 30

percent in 2015 to 60 percent now.

So, if you’re trading in an emerging

market, take care to protect your position.

GERMANY FACES POSSIBLE

DEEP RECESSION

ONE thing on the mind of Germany’s

Government is how deep a recession

might be if Russia cuts gas supplies.

For Achim Truger, a member of

Germany’s Council of Economic Experts,

German industry could suffer serious

damage in the long term if a cut is put

in place. He thinks – and was quoted

in the Rheinische Post – that ‘by most

calculations, an end to gas supplies from

Russia would trigger a deep recession. Half

a million jobs could be lost.’ He also thinks

inflation will stay high well into 2023.

The precedent was set in April when

Russia’s Gazprom cut off Poland and

Bulgaria after they refused to pay in

roubles. With German inflation at its

highest level in more than four decades,

those exporting there will have to price

goods carefully.

India becomes a ‘go to’

destination for European leaders

INDIA is not only a huge country with a

population of nearly 1.4bn people, but the

war in Ukraine has put it firmly in the

sights of many countries. The West is very

keen to supply weapons; it has been buying

discounted oil and other commodities from

Russia desperate for hard currency; and it’s

also been talking to China.

Now both Germany and the UK have

made it a go to destination. Boris Johnson

visited in April. More recently, at the

start of May, German chancellor Scholz

described India as a “central partner for

Germany in Asia in terms of the economy,

defence and climate policy” and invited

prime minister Modi as a special guest to

the G7 leaders’ summit in June.

With European Commission president

Ursula von der Leyen visiting too, these

trips are apparently being seen as a

coordinated campaign to encourage

India to take a less neutral position over

Ukraine. It also means that there may be

potential for more international business

to be done.

Pakistan bans imports of all

non-essential luxury goods

JUST as Nepal recently limited imports,

so Pakistan has done the same; its foreign

exchange reserves have fallen while the

Pakistani rupee has dropped to historic

lows against the US dollar.

Effectively, all non-essential luxury

items that are not used by the wider

public can no longer be imported. The

goal is to address fiscal instability, which

the Government blames on the previous

Government of Imran Khan.

Among the imports to be banned are

cars, cellular phones, home appliances and

cosmetics. It is not clear how long the ban

will be in place. Fuel and edible oil and

pulses remain unaffected.

CURRENCY UK

EXCHANGE RATES VISIT CURRENCYUK.CO.UK

OR CALL 020 7738 0777

Currency UK is authorised and regulated

by the Financial Conduct Authority (FCA).

HIGH LOW TREND

GBP/EUR 1.18591 1.14705 Down

GBP/USD 1.26630 1.19825 Down

GBP/CHF 1.22811 1.17834 Down

GBP/AUD 1.78015 1.73018 Flat

GBP/CAD 1.61799 1.55160 Flat

GBP/JPY 168.583 158.418 UP

This data was taken on 21 June and refers to the month

previous to/leading up to 20 June 2022.0


THINK TANK

DRIVING CHANGE

The rise of autonomous vehicles.

AUTHOR – Lucy McCormick

recent report by the Connected Places

Catapult forecasts that the market for

connected and autonomous vehicles

in the UK (specifically, for road

A.

vehicles with CAV technologies) will

be worth £41.7bn by 2035, capturing

6.4 percent of the £650bn global market.

Because of the value of this market, many countries

are jostling for a slice of the pie. An aspect of this is

competition between jurisdictions to put in place

laws which are attractive to developers. This does

not necessarily involve having the most relaxed laws;

rather developers are looking for legal certainty, that

is to say some certainty as to how a particular piece of

tech is likely to be treated in law. This has given rise to

a race to legislate.

Through a quirk of history, the UK had a head start as

a centre for autonomous vehicle development. As early

as 2015, the Government conducted a detailed review

of existing legislation, concluding that ‘Real-world

testing of automated technologies is possible in the

UK today, providing a test driver is present and takes

responsibility for the safe operation of the vehicle;

and that the vehicle can be used compatibly with road

traffic law’. This was unusual, as most countries would

have to enact primary legislation to ‘legalise’ such

testing.

The UK was quick to capitalise on this, setting up the

Centre for Connected and Autonomous Vehicles (CCAV),

and offering generous funding to developers. The same

year the UK issued a pioneering code of practice for

testing autonomous vehicles on public roads, which has

been widely copied in other jurisdictions. Impressively,

all this took place well before the very first autonomous

vehicle crash, which occurred in 2016.

INSURANCE LAW REFORM

Meanwhile, it was perceived that the most urgent legal

issue was insurance law reform. In 2016 the Modern

Transport Bill was announced and described as ‘the

world's first driverless car insurance legislation’. The

Bill eventually became law under a new name, the

Automated and Electric Vehicles Act 2018. The aim of

the legislation was to ensure that for the victim of a

road traffic accident, it does not matter whether they

have been run into by a vehicle in a ‘normal’ mode

or in an ‘automated’ mode. Broadly speaking the

Act places initial liability on the insurer in the first

instance, leaving the insurer to go on to recover from

the developer or manufacturer (if appropriate) under

existing product liability law. The Act will apply to a

pre-determined list of ‘self-driving’ vehicles; as yet there

are no vehicles on that list, but this is anticipated to

change in the near future.

With the most urgent hole plugged, the Law

Commission was asked to make more detailed

recommendations for a legislative scheme for

autonomous vehicles. Their three-year project came

to an end in January 2022, with key recommendations

including:

• A clear legal distinction between ‘driver assistance’

features and ‘self-driving’ features.

• A new authorisation scheme to decide whether any

given feature is or is not ‘self-driving’ as a matter of

law.

• Once a vehicle is (i) authorised as having ‘self-driving’

features, and (i) that feature is engaged, the system of

legal accountability would change. In particular, the

person in the driving seat would no longer be a driver

but would become a ‘user-in-charge’. They would have

immunity from a wide range of offences related to the

way the vehicle drives. However, the user-in-charge

would retain other driver duties, such as arranging

insurance and checking loads.

• The vehicle would be backed by an Authorised Self-

Driving Entity (or ASDE). If a vehicle, say, goes through

the red lights, this will be dealt with as a regulatory

matter.

• The Law Commission was concerned about misleading

marketing adding to the current confusion about the

boundary between ‘driver assistance’ and ‘self-driving’

technologies. To combat this, the report proposes

new offences restricting use of the terms ‘self-drive’,

‘self-driving’, ‘drive itself’, ‘driverless’ and ‘automated

vehicle’.

HIGHWAYS CODE

It was clear from the briefings which accompanied the

Queen’s Speech in May 2022 that we can expect to see

most of these recommendations brought in. The first

tangible change will be the changes to the Highway

Code this autumn, allowing drivers to watch TV on

their car’s infotainment system as long as the vehicle is

in a recognised ‘self-driving’ mode.

It is widely anticipated that the first such ‘selfdriving’

tech to be approved will be Automated Lane

Keeping Systems (ALKS), which allow the vehicle to

drive itself on motorways at speeds of up to 60kmph

and so allow the driver to opt out of tiresome driving in

heavy traffic. It has been reported that ALKS could be

approved as ‘self-driving’ by the end of this year.

This is an area characterised by swift change, and it

has been impressive to see the efforts that have been

made in the UK to keep the legislation ahead of the

technology rather than behind it. It is to be hoped that

the UK automotive sector continues to adapt to change

and capitalises on the opportunities presented by this

market.

Lucy McCormick is a commercial barrister at

Henderson Chambers and recently presented

her review of the autonomous vehicles sector at the

CICM Think Tank.


THINK TANK

The first tangible change will be the

changes to the Highway Code this autumn,

allowing drivers to watch TV on their car’s

infotainment system as long as the vehicle is

in a recognised ‘self-driving’ mode.

Brave | Curious | Resilient / www.cicm.com /July & August 2022 / PAGE 35

Introducing our

CORPORATE PARTNERS

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

Corporate Partnership with the CICM, please contact corporatepartners@cicm.com

VISMA | Onguard is a specialist in credit management

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Our Creditor Services team can advise on the best

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Key IVR provide a suite of products to assist companies

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With 130+ years of experience, Graydon is a leading

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with their commercial relationships. Graydon

uses 130+ international databases and the information

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Graydon has been part of Atradius, one of the world’s

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Tinubu Square is a trusted source of trade credit

intelligence for credit insurers and for corporate

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Building on our mature and hugely successful

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T: 01235 856400

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Each of our Corporate Partners is carefully selected for

their commitment to the profession, best practice in the

Credit Industry and the quality of services they provide.

We are delighted to showcase them here.

They're waiting to talk to you...

Hays Credit Management is a national specialist

division dedicated exclusively to the recruitment of

credit management and receivables professionals,

at all levels, in the public and private sectors. As

the CICM’s only Premium Corporate Partner, we

are best placed to help all clients’ and candidates’

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E: karen.young@hays.com

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Court Enforcement Services is the market

leading and fastest growing High Court Enforcement

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E: a.whitehurst@courtenforcementservices.co.uk

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Shoosmiths’ highly experienced team will work

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We have an in depth knowledge of all areas of debt

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Forums International has been running Credit and

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are not just meetings but communities which

aim to prepare our members for the challenges

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Data Interconnect provides corporate Credit Control

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It integrates with all ERP systems and buyer AP

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Serrala optimizes the Universe of Payments for

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Esker’s Accounts Receivable (AR) solution removes

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allocation, Esker automates each step of the orderto-cash

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get the post-sale experience they deserve and your

team gets the tools they need.

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E: sam.townsend@esker.co.uk

W: www.esker.co.uk


Introducing our

CORPORATE PARTNERS

Each of our Corporate Partners is carefully selected for their commitment

to the profession, best practice in the Credit Industry and the quality of

services they provide. We are delighted to showcase them here.

Chris Sanders Consulting – we are a different sort of

consulting firm, made up of a network of independent

experienced operational credit and collections

management and invoicing professionals, with

specialisms in cross industry best practice advisory,

assessment, interim management, leadership,

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and collections management. We are proud to be

Corporate Partners of the Chartered Institute of Credit

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enquiries@chrissandersconsulting.com

T: +44(0)7747 761641

E: enquiries@chrissandersconsulting.com

W: www.chrissandersconsulting.com

For further information and to

discuss the opportunities of entering

into a Corporate Partnership

with the CICM, please contact:

corporatepartners@cicm.com

The CICM Benevolent Fund is

here to support members of

the CICM in times of need.

Some examples of how CICM have helped our members are:

• Financed the purchase of a mobility scooter for a disabled member.

• Helped finance the studies of the daughter of a member who

became unexpectedly ill.

• Financed the purchase of computer equipment to assist an

unemployed member set up a business.

• Contributed towards the purchase of an orthopaedic bed for one

member whose condition was thereby greatly eased.

• Helped with payment for a drug, not available on the NHS, for

medical treatment of another member.

If you or any dependants are in need or in distress, please apply today – we are here to

help. (Your application will then be reviewed by the CICM Benevolent Fund committee and

you will be advised of their decision as quickly as possible)


HR MATTERS

CONDUCT UNBECOMING

Was a test discriminatory and is redundancy

a fair reason for dismissal?

AUTHOR – Gareth Edwards

recent Employment

Appeal Tribunal (EAT)

decision demonstrates

a claimant's perception

alone is not enough to turn

A. conduct into harassment.

In the case of Ali v Heathrow Express

and Redline Assured Security Limited, Mr

Ali is a security guard at Heathrow Airport,

employed by Heathrow Express. Redline

Assured Security (Redline) is responsible

for carrying out security checks both

at the airport and at Heathrow Express

stations. Redline’s checks include creating

and leaving suspicious objects visible

to test how security officers respond to

them.

Ali complained after Redline carried out

an exercise involving a box, some electric

cabling, and a piece of paper with the

words ‘Allahu Akbar’ written in Arabic. Ali

was not involved in the exercise but was

included on an email reporting the results

of the test and containing images of the

bag and note.

Ali complained Redline's exercise

amounted to either direct discrimination

against him or harassment under the

Equality Act 2010. Both claims were

rejected by the Tribunal and Ali appealed

to the EAT over the Tribunal's findings on

the harassment claim only.

Under the Act, harassment occurs

when a person engages in unwanted

conduct relating to a relevant protected

characteristic – in this case, religion. The

conduct must have the 'purpose or effect'

of violating the other person's dignity

or creating an intimidating, hostile,

degrading, humiliating or offensive

environment.

Ali claimed Redline's conduct had

violated his dignity. To reach a decision on

whether conduct constitutes harassment

by effect, the Act requires the Tribunal

to take into account the claimant's

perception; other circumstances of the

case; and whether it is reasonable for the

conduct to have the effect complained of.

The EAT agreed with the Tribunal before

it, that it was not reasonable for Ali to

perceive Redline's conduct as harassment.

He should have understood Redline was

not seeking to associate the whole of

Islam with terrorism but was referring to

the context of recent incidents in which

that phrase had been used by terrorists.

Whilst Ali's perception of the incident was

relevant to his claim, it was only one of the

factors the Tribunal needed to consider to

reach a decision on whether the conduct

complained of amounted to harassment.

The claimant's perception of an incident

will always be of importance, but the

wider circumstances and reasonableness

of their position will also be considered.

Unfair dismissal after volunteering for redundancy

THE Employment Appeal Tribunal has

found that a Tribunal was wrong to

strike out a claim for unfair dismissal

because the claimant had volunteered for

redundancy.

In the case of White v HC-One Oval Ltd,

Ms White was a part-time receptionist at a

care home run by HC-One Oval Ltd. HC-

One proposed to reduce the number of

receptionist and administrative staff in the

care home and White was provisionally

selected for redundancy; she ultimately

volunteered for redundancy.

After the end of her employment

White lodged a claim for unfair dismissal

alleging that the redundancy process had

not been genuine. She relied on various

procedural failures and the fact that she

had lodged a grievance prior to the start

of the process. HC-One denied these

allegations.

The Employment Tribunal (ET) held

that her claim had no reasonable prospect

of success because she had volunteered

for redundancy, so her employer could

automatically establish the reason and

reasonableness of the dismissal. The ET

made no findings of fact on the matters in

dispute. White appealed on the basis that

the ET had erred in law in its decision.

Redundancy is a potentially fair reason

for dismissal, but the employer still needs

to follow a reasonable process to dismiss

fairly on the grounds of redundancy.

These steps include consultation

with employees, a fair selection pool,

locating alternative employment within

the company and offering alternatives

to compulsory redundancy, such as

voluntary redundancy. If an employee

agrees to take voluntary redundancy,

they are voluntarily dismissed by way of

redundancy – they have not resigned.

The EAT allowed White's appeal. The

ET's conclusion appeared to assume

that every voluntary redundancy is

automatically fair and the EAT determined

that this was incorrect as a matter of law.

In this case, there was a dispute between

the parties as to history predating the

dismissal and the ET heard no evidence

and made no findings regarding that

history; the EAT therefore remitted the

case to the Tribunal for consideration.

It is important for employers to

understand that even where an employee

volunteers for redundancy, they retain all

their usual employment rights and can

bring a claim for unfair dismissal.

Gareth Edwards is a partner in the

employment team at VWV.

Redundancy is a potentially fair reason for dismissal, but the employer still needs

to follow a reasonable process to dismiss fairly on the grounds of redundancy.


LEGAL MATTERS

PERMISSION DENIED

The Financial Conduct Authority issued a

warning against a company in administration,

and was surprised it needed the permission of

a law court to proceed.

AUTHOR – Peter Walker

THE largest ever trading liquidation

in the UK’ was how the Official

Receiver described the situation

affecting the Carillion Group in

August 2018. A lot had happened,

or had been discovered, since

January 2018 when the BBC reported that

Carillion was to go into compulsory liquidation

rather than the originally announced

administration. There would of course be

litigation such as the case Financial Conduct

Authority v Carillion plc (2022) 2 WLR 367.

Michael Green J in the Chancery Division of

the High Court had to consider just one aspect

arising from the financial mess. That mess is

illustrated by the fact that various Carillion

member companies of the group had gone into

liquidation, and there were others in Jersey,

Guernsey and Qatar. As early as April 2018

the Official Receiver estimated that the total

liabilities of the UK companies at that time

was £6.9bn, over three times higher than was

disclosed in the accounts for 2016.

A SIMPLE START

It had started very simply, in that Carillon

was demerged from Tarmac at the end of the

last century. Its business originally included

the former Tarmac Construction contracting

business and the Tarmac Professional Services

Group of businesses. Its name is supposed to be

a corruption of the spelling of carillon, a ring of

bells on which tunes may be played by means of

a keyboard.

Its business began playing a different tune,

because it expanded through various takeovers,

acquisitions of stakes in other businesses, and

so on. It was in the business of being a facilities

management and construction company. All

this activity needed careful management,

but there were financial difficulties. There

were debts and some loss-making contracts.

There was a pension fund deficit. Towards

the end Carillion was running out of cash,

and negotiations to save the business had

failed. A proposed administration tuned into a

compulsory liquidation.

WARNING NOTICE

Among the many ensuing complications, the

Financial Conduct Authority (the FCA) wanted

to act under sections 91 and 123 of the Financial

Services and Markets Act 2000. The FCA was

The FCA was

making allegations

concerning market

abuses and breaches

of listing rules. It

wanted to serve a

warning notice.

making allegations concerning market abuses

and breaches of listing rules. It wanted to serve

a warning notice.

There was a potential obstacle, section 130 of

the Insolvency Act 1986. Section 130(2) provides,

‘When a winding-up order has been made or

a provisional liquidator has been appointed,

no action or proceeding shall be proceeded or

commenced against the company or its property,

except by leave of the court and subject to

such terms as the court may impose.’ Michael

Green J said that he was concerned only with

the ‘legal threshold issue’. This was whether

the FCA needed the permission of the court to

proceed with its proposed regulatory action’

under the Financial Services and Markets Act.

The FCA argued that this was the first time that

anyone had suggested that such permission was

needed.

Michael Green J pointed out that in the

Warning Notice the FCA did not propose a

financial penalty, but it wanted public censure

instead. The Official Receiver pointed out the

seriousness of Carillion’s finances, and Michael

Green J observed, the cost to the public purse

will be considerable.’ He added that the situation

should not influence the interpretation of

section 130 of the Insolvency Act.

The FCA argued, however, that the section

was limited to court actions and proceedings, or

similar actions such as arbitration. Regulatory

actions such as that proposed by the FCA were

therefore excluded.

Michael Green J, like the judge at first

instance, would have to analyse the FCA’s

jurisdiction or powers under the Financial

Services and Markets Act. This includes the

requirement that those companies listed on the

London Stock Exchange should comply with

the listing rules of the FCA under the Act. The

FCA has to ensure that the relevant markets

function well, and it has the job of ‘protecting

and enhancing the integrity of the UK financial

system. Section 91 empowers the FCA to bring

enforcement actions.

Warning notices are issued under the

authority of section 387 of the Act, and they

must state the action proposed by the FCA,

and the reasons for it. The person issued with

the notice has 14 days to make representations

to the FCA, which may than issue a decision

notice under the authority of section 388. The

recipient of the notice may take the matter up


LEGAL MATTERS

AUTHOR – Peter Walker

with the Upper Tribunal to consider it afresh,

i.e. it is strictly not an appeal. The FCA’s

internal decision-making is conducted by the

Regulatory Decisions Committee, but it is a

committee and accountable to the FCA’s board.

STAY IN PROCEEDINGS

Michael Green J added then returned to section

130 of the Insolvency Act 1986, but he added

that section 126 gives a court ‘power to stay or

restrain proceedings’ against a company. This

relates to an ‘action or proceeding’ in the High

Court or in the Court of Appeal.

Michael Green J then considered the

meaning of proceeding in section 130. The

judges of the Court of Appeal provided some

guidance in Bristol Airport plc v Plowdrill

[1990] Ch 744. Four creditors of an airline in

administration agreed that they would not

exercise any power of detention over any of the

aircraft operated by the airline under leasing

agreements until after a creditors’ meeting.

The administrators were hoping to sell the

airline on advantageous terms.

Before that meeting one of the parties

applied for leave to detain two aircraft, and this

was granted subject to a hearing. It became

interesting, when one of the other parties

parked a lorry in front another aircraft operated

by the airline, and it served what is called a lien

notice on its captain.

Although section 88 of the Civil Aviation

Act 1982 ostensibly gave them power to

detain aircraft operated by an airline in

administration, the High Court judge exercised

his discretion to refuse leave for them to act

in this way. The judges of the Court of Appeal

later agreed that the trial judge had correctly

exercised his discretion. The airports, for

example, were not secured creditors, so they

should not be allowed to gain an advantage

over the other creditors by their seizure of the

aircraft.

In the Carillion case Michael Green J

noted Sir Nicolas Browne-Wilkinson V-C’s

observation, ‘In my judgment the natural

meaning of the words “no other proceedings

… may be commenced or continued” is that

the proceedings in question are either legal

proceedings or quasi-legal proceedings such as

arbitration’.

In the case In re Frankice (Golders

Green) Ltd [2010] Bus LR 1608 the Gambling

Commission, a statutory regulator, brought

proceedings against a group of companies in

administration. That group had a deficiency of

£84m, of which a substantial amount was PAYE,

NI, and Amusement Machine Licence Duty.

If the companies were liquidated, 100 trading

premises would be closed and 600 people

would lose their jobs, so the administration

was an attempt to avoid these results. The

Group therefore continued to trade because the

administrators had hoped for a higher price.

NON-CONFORMING

It became apparent that the directors had

not been conducting the business strictly in

conformity with its licence conditions, so the

Gambling Commission was investigating. The

number of gambling facilities provided did

not conform with what the companies were

permitted to provide. The administrators were,

however, conducting a compliant business.

There was yet another complication, because

a prospective purchaser failed to apply for an

operator’s licence, so the sale would not be

completed by the contracted date.

Norris J in the High Court was more

concerned about the Gambling Commission’s

forthcoming review hearing. He decided to

refuse permission for the holding of that

hearing before the completion of the contract

with the prospective purchaser.

If the companies were liquidated, 100 trading premises

would be closed and 600 people would lose their jobs, so the

administration was an attempt to avoid these results.

The Group therefore continued to trade because the

administrators had hoped for a higher price.

In the Carillion case Michael Green J

decided that the Frankice case could be

distinguished from the present situation.

Norris J was concerned not with section 130 but

with paragraph 43(6) of Schedule B1 (governing

administration) of the Insolvency Act 1986.

‘Legal process including legal proceedings,

execution, distress and diligence’ may not be

instituted, etc., against the company without

the consent of the administrator or the court.

Michael Green J was left with section 130,

and he ruled that this must be interpreted

restrictively. In this context ‘action or

proceeding’ meant a legal proceeding or quasilegal

proceeding. The FCA’s warning did not

amount to such action, so he did not have

to issue a stay of proceedings. He added his

opinion that he did not think that parliament

could have intended that the comprehensive

statutory regime of the Financial Services and

Markets Act 2000 ‘operated by the FCA acting

in the public interest should be overlain with

the requirement to seek the permission of the

court to proceed if the company in question has

gone into compulsory liquidation.’

This may not make life easy for administrators

if a regulatory body is contemplating action

against a company in administration. Creditors

may not welcome the possible resulting further

complications during an administration,

although the actions of the regulatory body

should lead to a clarification of what happened

to cause the company’s downfall.

Peter Walker is a freelance Journalist.


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ESG – CASE STUDY

Socially active

Actions to increase diversity and opportunity

at Shoosmiths and in the legal profession.

AUTHOR – Paula Swain FCICM

SHOOSMITHS is committed to

attracting, and progressing, talent

from all backgrounds and over

many years has naturally developed

a commitment to social mobility.

This includes the introduction

of ‘blind CVs’ more than 15 years ago (at

graduate recruitment level) and offering a

range of apprenticeships and work experience

placements for young people. It also includes

working hard to ensure our recruitment

processes are as transparent and accessible as

possible (for example by removing unexplained

acronyms/industry terms, giving clear guidance

on what the firm is looking for and examples

of every task in the assessment process) and

making efforts to ensure our workplace culture

is genuinely inclusive.

SCHOOL PARTNERSHIPS

Partnering with schools and colleges to

provide early careers advice and mentoring/

coaching sessions is a significant aspect of

our work to increase diversity not only within

our own organisation, but also within the

legal profession generally. We aim to carry out

in-person and virtual activities with young

people and schools without existing

relationships with employers like us, in areas of

the country which are social mobility ‘coldspots’,

and with young people close to our national

offices. It is really important for us to keep in

touch with the young people we meet through

these outreach activities. We encourage them

to keep connected with us online, through our

website and social media channels.

At university level we encourage candidates

to meet us at events/insight evenings to

learn more about our people, the firm and

the process for applying. However, from a

social mobility perspective we are aware that

this will not be practical for everyone, so we

ensure that all material shared with prospective

candidates at such events is also made available

online.

Our graduate recruitment team utilise a

wide number of online channels (YouTube,

Facebook, Twitter, Instagram) to ensure we can

connect with all potential candidates interested

in a career in law. This online presence, with

an expansive reach, is particularly important

for those who may not have the time, means

or opportunity to connect with the legal

profession in other ways. Content is focused

on delivering specific, in-depth information

about a career in law, setting expectations, and

providing a real-job profile for working within

our organisation.

Our graduate

recruitment team

utilise a wide number

of online channels

(YouTube, Facebook,

Twitter, Instagram) to

ensure we can connect

with all potential

candidates interested

in a career in law.

SOCIAL MOBILITY

In 2018 Shoosmiths signed the Social Mobility

Pledge (an initiative launched by Rt Hon Justine

Greening) and as a part of this the firm was asked

to consider three measures – partnerships,

access and recruitment – which have all been

identified as being able to dramatically improve

social mobility. Given the passion within the

business we were determined to take our

commitment to the next level and ensure our

support of the Pledge would be borne out in

actions, not just words.

As such, we formalised our commitment

with the development of Shoosmiths Social

Mobility Action Plan – with a vision to increase

social mobility in the legal profession, across

the UK, and in the firm. The Plan was officially

launched in October 2020 and combines existing

efforts, socio-economic data across our national

office network and 14 goals aligned to our office

geography.

Coordinated activity is now taking place to

work towards all of the Plan goals. In some areas

this is now very well established.

Our Leeds office is collaborating with the

University of Leeds Pathways to Law programme

(a widening participation scheme for year 12/13

students from under-represented backgrounds

who are interested in a career in law). A series of

five interactive virtual sessions were designed to

assist the young students in developing essential

skills for a future career and providing an insight

into what it is like working in the legal sector.

The sessions were so successful that Pathways to

Law asked the Leeds office to support again for

future academic terms and we are now looking

into expanding this relationship further.

In the Thames Valley we are connecting with

secondary school pupils identified through

the Education Business Partnership to raise

aspirations and prepare them to enter into the

world of work – for example improving work

related skills by sharing video recordings on

being a lawyer, the legal sector, and Shoosmiths.

Following the launch of our Social Mobility

Action Plan we again joined Justine Greening to

participate in the development of the Purpose

Coalition – made up of the UK’s most innovative

leaders and organisations determined to plot

a new course and set new standards around

responsible business. This has included taking

part in sector roundtables (involving law firms

and universities) focusing on widening access

to the legal profession. Alongside meaningful

discussion we have made new connections with

several universities and have been able to share

our early careers content with a wider range of

students.


ESG – CASE STUDY

AUTHOR – Paula Swain FCICM

OUR CULTURE

Recently a panel of colleagues (including members

of the Senior Leadership Team, Partners and

Associates) took part in an honest and open internal

webinar sharing why social mobility is important to

them. In addition to sharing their personal stories

they discussed the activities they are involved in

to progress the firm’s social mobility efforts even

further. To follow this webinar, further personal

social mobility stories (in written and recorded

format) are being shared from colleagues across the

firm through our internal channels.

We find personal stories really resonate and

an increasing number of our people are coming

forward to share experiences and encourage others

that they can be themselves at work, which is also

a key element of our Social Mobility Action Plan.

We’re proactively seeking to improve our data

analysis capability across diversity and inclusion,

to be transparent (internally and externally) and to

go above and beyond mandatory data reporting – so

in our most recent pay gap report, published March

2022 (2021 data), we included socio-economic pay

gap for first time.

For the first time we were also delighted to be

ranked 42nd in the Top 75 employers in the Social

Mobility Employer Index (2021) and to have been

awarded Best social mobility initiative at the 2022

People In Law Awards for the launch of our Social

Mobility Action Plan.

Committed to attracting,

and progressing, talent from all

backgrounds and over many

years has naturally developed a

commitment to social mobility.

Paula Swain FCICM

leads Shoosmiths

Commercial

Recoveries team.


ESG

GENERATION GAME

The importance of intergenerational collaboration

AUTHOR – Aniela Unguresan

Age-related complexity

exists and it's all around

us – in the workplace, at

home, in society, and in

decision-making bodies.

Ageism will persist, and

the only thing we can do is

manage it proactively.

GENDER and age are two of

the most frequently used

characteristics to identify

individuals because they

are universal and trackable,

regardless of country

or industry.

But just as we talk about understanding

the role of gender at work, so we also need

to consider the intersection of age and

gender, as neither operates in isolation

and both are relevant when we talk about

collaboration in the workplace.

GROWING GENERATIONAL SPANS

Even to the casual observer, careers have

grown longer in span. When my parents

were of working age, no more than

two or three generations were present

in the workforce. Now, our EDGEplus

database regularly shows as many as

five generations present in a workforce

at the same time, a change that brings

new complexities along with a new set of

dynamics.

However, some things never change.

The author George Orwell once famously

remarked: ‘Every generation imagines

itself to be more intelligent than the

one that went before it, and wiser than

the one that comes after it.’ The same is

true today. As in previous times, there’s a

recognition that the younger generations

are upset with those older than them. In

the present day there are two key reasons

often stated – the environment and

climate change, and deficits in pension

systems that will play out when the

young retire in decades to come.

But despite the differences in

generational perspectives, both inhabit

the same workplace. This makes it

important for organisations to measure

and understand where different

generations converge and where they

diverge in their values, goals and

expectations.

Fundamentally, organisations that take

time to understand the intergenerational

dynamics, can develop a robust plan for

passing the baton from one generation to

another seamlessly, without losing all the

knowledge, wisdom and experience that

has been accumulated over the years.

VIEWS OF TODAY AND TOMORROW

Earlier this year, The St. Gallen

Symposium alongside the Nuremberg

Institute for Market Decisions published

a global study in its ‘Voices of the Leaders

of Tomorrow’ series entitled Passing on

the Baton. It detailed the results of a

survey, run in February 2022, that sought

views from 683 leaders of tomorrow and

300 leaders of today on decision-making,

priorities, and collaboration across

generations. Of the many findings, the

gender split was especially remarkable.

In overview, of the leaders of today

occupying the top and upper management

of organisations, 30 percent were female,

and 70 percent were male; this reflects

the unbalanced gender composition of

top management teams in corporations

today. But of the leaders of tomorrow, the

demographic was different: 44 percent

were female, 54 percent were male, and

two percent classed themselves as nonbinary

or preferred not to answer.

This is interesting. Not only does

the finding offer commentary on

how gender composition at the top of

the organisation needs to evolve for

organisations to remain current, but it

also illustrates how definitions of gender

have evolved between generations.

Managing generational complexities

effectively means, in essence, defining

a path for the sharing of knowledge and

transitioning of power and decisionmaking

from the older to the younger

generations.

But therein lies the challenge – the

older generation feel that they are at

their peak and have little desire to share

what they have until they need to.

Passing on the Baton studied this

problem. It sought to find out where the

views of leaders of today and leaders

of tomorrow converge and diverge; it

also wanted to uncover the issues that

companies are facing when managing a

multi-generational workforce.

There were several noteworthy

findings. One that both the leaders of

today and tomorrow agreed upon was

the social polarisation of our societies

which makes it difficult for people with

different views to hold constructive

conversations. In essence, our views

have become more entrenched, and we

are less capable of accepting opposing

points of view; it’s now much harder to

work and collaborate with somebody

holding a different opinion. And social

media is often behind this.

Worryingly, both generations of leaders

believed that the other generation is

demanding too much while complaining

of unjustified demands placed on


ESG

AUTHOR – Aniela Unguresan

them. It’s not unsurprising that the leaders of tomorrow

were unhappy about being told to wait to take up senior

management roles.

But beyond this is a pervading and skeptical view held

by the leaders of today that the younger generation are

unwilling to take on more responsibility - both in business

and in politics. In contrast, the leaders of tomorrow

responded that they want responsibility but are held back

because the leaders of today don’t want to relinquish

authority.

Another key finding made by survey was that the leaders

of tomorrow were extremely concerned about pension

systems while leaders of today were less worried. Certain

European countries serve to illustrate the future pension

challenge. Fifteen years ago, the average Austrian would

live in retirement for eight years. Now that figure is more

like 22 years – a near tripling of the time they are entitled to

make use of the pension system.

VALUE OF QUOTA SYSTEMS

Both groups of leaders agreed that quotas are crucial

instruments to ensure participation, whether in terms of

politics or in relation to business decision-making.

But in seeking an imposed and non-negotiable quota

system, should we be concerned? Have we lost faith that

market-based mechanisms and voluntary systems work? Or

we are saying that market-based instruments and voluntary

systems are needed, but they nevertheless require a

prescriptive framework to enable them to function properly?

Technology, and artificial intelligence especially, was

another point of contention. The leaders of today worry that

technology can no longer be controlled. In contrast, the

leaders of tomorrow are more relaxed about the concept.

Who is right and who is wrong is a game that will play out

between digital immigrants – the leaders of today – who

struggle with new technologies, and digital natives – the

leaders of tomorrow – who are fully on board and trusting.

The author George

Orwell once famously

remarked:

‘Every generation

imagines itself to be

more intelligent than the

one that went before it,

and wiser than the one

that comes after it.’

WORKING TOGETHER

So, how do we enable and empower different views to be

expressed, understood, and exchanged? And how

can we move from divergent positions to that of

collaboration, innovation and problem solving?

The first step is to acknowledge the tendency

of older generations to attribute negative traits to

those beneath them - a stereotype that some have

labelled as the ‘kids these days effect’. The same can

be said to be true for views held by the young of the

older generation.

Next, we need to counter ageism that is very

much alive and prevalent in youth centric

western societies. Often leaders of today are

accused of having rigid views and personalities,

of cognitive impairment, and are said to be

digitally ignorant and unwilling to learn. This is not

necessarily so.

Age-related complexity exists and it's all around us

– in the workplace, at home, in society, and in decisionmaking

bodies. Ageism will persist, and the only thing

we can do is manage it proactively. Intergenerational

differences and complexities can be both harmful and

wonderful. They should, however, be understood and

leveraged for the benefit of all.

Aniela Unguresan is the Founder

of the EDGE Certified Foundation.


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CAREERS

Talent pool

AUTHOR – Natascha Whitehead

CICM MEMBER

EXCLUSIVE

How to attract new credit talent

in a competitive market.

FOR the first time since records

began, Office for National

Statistics (ONS) reported that

the number of job vacancies in

the UK (1.3million) has become

higher than the number of

unemployed people. The unemployment rate

has fallen to 3.7 percent, which is the lowest

level in almost 50 years.

What’s interesting to note is the record-high

number of people moving from job to job,

through resignation rather than redundancy.

In fact, over the past three quarters, around

three million people in the UK have moved

job – leading to the market being more

competitive than ever.

Naturally, these hard-hitting figures will

impact the credit management market and

what this means for employers is that it’s

even harder to attract and retain talent (in the

financial professions, as well as generally)

– so here’s three, simple takeaways to make

sure you are doing all you can to attract the

next additions to your workforce.

1. DEMONSTRATE WHY YOU ARE

DIFFERENT TO FUTURE HIRES

What sets you apart as an employer? Why

would someone, who is taking a leap to move

jobs, join me and my team?

This ‘why’ should be succinct and should

feature on all marketing materials seen by

potential recruits and customers, from your

website to the job advert itself. It’s not just about

salary – think about the career opportunities

you can offer and the development and

training – as well as describing your company

culture.

Finally, if there is an opportunity to upskill

within your team, I’d definitely highlight this,

as it’s a great selling point for your company,

especially amongst credit professionals.

prepare your offer beforehand, so once you’ve

met the right candidate, you can move quickly.

3. BE PREPARED FOR COUNTER OFFERS

As the talent market across the industry is so

tight, many organisations are offering counteroffers

to staff who are handing in their notice

upon receiving a new job offer – in fact, nearly

a quarter (23 percent) of employers told us

they are more likely to offer counter-offers

You need to

make sure to stay in Your than pre-pandemic. CICM lapel badge

touch and keep them demonstrates your commitment to

feeling engaged professionalism and

and best practice

excited to join your

team. They will have TAKE PRIDE IN

already met some WEARING YOUR BADGE

people during the that the candidate is looking for.

If you haven’t received your badge

interview process, contact: cicmmembership@cicm.com

but it’s a good idea

to set up a series of

virtual meets while

they work their

notice period.

So, if you have offered a job to a candidate,

you need to be prepared for how you’ll react

if they receive an offer from their current

employer. Firstly, make sure your offer is

robust in terms of pay, benefits, and flexible

working – and that it ticks all the other boxes

Secondly, you need to be aware that

onboarding a new employee starts from

the moment they accept your offer, and you

need to make sure to stay in touch and keep

them feeling engaged and excited to join your

team. They will have already met some people

during the interview process, but it’s a good

idea to set up a series of virtual meets while

they work their notice period. This way, they

can get a clear feel of who they will be working

with and what their team will be like – so

there’s no reason not to join you!

Natascha Whitehead is Business Director

& UK Channel Lead of Hays Credit

Management.

2. MOVE QUICKLY – DON’T DELAY THE

INTERVIEW PROCESS

If you or your recruitment partner has a

candidate lined up who you’d like to interview

– you need to move quickly. Make sure you’ve

defined what the interview process entails to

the candidate (such as the number of stages

and any tasks that need to be completed)

and, to speed up the process, offer the first

interview virtually.

Similarly, once you get to the next stage,

make sure you are flexible in offering

candidates a good selection of times for a

face-to-face interview and be flexible with

the location, if possible. Lastly, don’t forget to


TAKE CONTROL OF

YOUR CREDIT CAREER

CREDIT CONTROLLER

Dereham, Norfolk £22,000-£24,500

+ bonus (up to £6,000)

A well-established, growing, and innovative recruitment business

are seeking an experienced credit professional to join their

team. This role will report to the Credit Manager and work in

collaboration with an existing formidable team. You will be

managing a broad portfolio of clients and must be comfortable

operating in a fast-paced environment often collecting high

volumes of cash on short payment terms. This is an exciting

opportunity to join a fantastic organisation that are performing

well in a rapidly changing environment.

Ref: 4213016

Contact William Plom on 01603 760 141

or email william.plom@hays.com

GROUP CREDIT CONTROLLER

Totton, up to £30,000

This opportunity is based in Totton in which you will oversee

the credit control of the wider company. You will be in charge

of six offices’ sales ledgers whilst chasing debt and collecting

cash. They have a plan in place to rapidly expand, leaving lots of

opportunity for internal progression.

Ref: 4221057

Contact Jack Bailey on 02382 020 104

or email jack.bailey1@hays.com

REVENUE SPECIALIST

Central London, £45,000-£55,000

This is an excellent opportunity to join an expanding finance

team within a global law firm. This role will be supporting the

finance team and partners as a senior member, where you will

be working on counsel fees, opening new matters, and ensuring

optimised revenue flow. You will require experience in a legal

firm and on Elite 3e for a minimum of three years. Additionally,

you will need strong communication skills as well as ambition

and the drive to succeed.

Ref: 4213779

Contact Daniel Lee on 02034 650 020

or email daniel.lee1@hays.com

BILLING & COLLECTIONS MANAGER

Weybridge, £47,000 + bonus

An experienced manager is required to join a market leading

organisation. Managing a team of seven, you will be responsible

for the entire order to cash cycle, this will include invoicing,

collections and cash application. You will have a heavy focus

towards the front end of the OTC process, ensuring that the billing

cycle is accurate and timely, eliminating issues further down

the line. Your management style will be supportive as building

stakeholder relationships will be key in this role.

Ref: 4169888

Contact Mark Ordona on 07565 800 574

or email mark.ordona@hays.com

This is just a small selection of the many opportunities

we have available for credit professionals. To find out more

visit us online or contact Natascha Whitehead, Hays Credit

Management UK Lead on 07770 786433

hays.co.uk/creditcontrol



CONFIDENCE

IS KING

How one Credit Manager completed

an apprenticeship and regained her confidence.

AUTHOR – Sam Wilson


YOUNG MONEY

AUTHOR – Sam Wilson

KNOWLEDGE is something that

as human beings we crave, and

often those with said knowledge

are the most highly soughtafter

individuals in their fields.

However, knowledge also has

the power to boost confidence levels, enabling us

to feel more secure within our careers and more

assured in the decisions we make.

For Lisa Dutton, her experience of completing

her apprenticeship with the CICM not only

solidified her expertise for those around her but

also allowed her to feel more confident in her

ability to make her career more enjoyable.

“After completing my studies, I definitely feel

more confident,” she says. “My current job was

given to me on the basis that I become qualified,

and there were always questions as to whether I

could do the job as I was much younger than the

previous manager. Now I have the confidence in

myself and my abilities, as does the team around

me.”

LOVE OF MATHS

Lisa’s route to credit management was similar to

many in the industry; she ‘fell’ into it. However,

unlike many, finance was always a route she had

in the back of her mind due to her love of maths.

“I think it’s almost a ‘conventional’ route

nowadays. It’s the same for a lot of my friends

in this industry. You never really sat at school

thinking I want to be a credit manager, as we

didn’t know what that was. But I did love maths

at school, and whilst I didn’t think I’d pursue it as

a career, my love for the subject is probably what

guided me here!”

In fact, a chance job opportunity from the

unlikeliest of places, her neighbour, helped Lisa

cement her future as a credit controller.

“I’d left school after ending my A-level studies

early, and whilst working in ASDA’s bakery

full time, my neighbour asked me if I’d like to

interview for a job that had recently come up at

her company. It was in accounting, so all of a

sudden that love of maths took me to my first job

in finance.”

WORLD OF FINANCE

That first role gave Lisa the exposure to the world

of finance she needed to pursue a career in credit.

With it being half-credit control and half accounts

payable, Lisa experienced multiple areas of

finance at once, enabling her to choose credit.

“I liked bits of both roles, but it was credit I

enjoyed more. The interactive nature, dealing

with the money, cash and invoices and speaking

to people whilst building relationships was a great

deal of fun. The most fun for me anyway!”

Lisa was driven to study alongside her career,

rather than going back to school: “I didn’t really

enjoy school,” she explains. “Often teachers were

dictating things to you rather than you learning

and discovering why things work the way they do.

This makes learning easier, more enjoyable, and

more rewarding; it also allows you to dictate your

own path and career, whilst being confident in

the advice you’re giving knowing you’ve had the

knowledge and have applied it yourself.”

The opportunity to start her apprenticeship

came through her employer at a time when her

previous manager left the business, meaning Lisa

stepped in to fill the breach.

“I was in the acting role for around two years

before I officially got the job, and part of the

requirements was a formal qualification. Up until

that point, I’d been putting it off, but finally, this

gave me the kick-start I needed.”

The choice of an apprenticeship didn’t come

naturally however, as Lisa explains, she thought

she was too far into her career to start one: “My

husband makes furniture for a living, and he did

his apprenticeship when he was 18 years old, so

for a while, I was a bit conflicted as to whether it

was the right route. However, after realising that

the course allowed me to complete all my modules

in one programme online, it was a no-brainer.”

“My current job was given to me on the basis that I

become qualified, and there were always questions

as to whether I could do the job as I was much

younger than the previous manager. Now I have the

confidence in myself and my abilities, as does the

team around me.”

CHALLENGING MODULES

Of the modules, Lisa admits that some came easier

and some were more challenging. “The legal side

of the course was difficult, it’s something I’ve not

touched upon before, but it really opened my eyes

to the importance of it within the industry. Credit

management on the other hand was much more

enjoyable as it was more of an expansion of my

current skill set and that, whilst being fun, helped

me reconcile the reasoning for many of the things

we do day to day.

“Accounting principles, was a real eye-opener,”

she continues. “In fact, my knowledge around

the sector now helps us enact change within

the business. I’ve been mentoring one of the

people in our team who’s looking to progress into

management accounts, so now I’m able to provide

him with more insight and help him move his

career forward.”

So, what tips does Lisa have for future

apprentices?

“Learning gives you the chance to boost

your knowledge and career potential but more

importantly your self-belief. If you ever get the

chance to qualify or train, do it. As daunting as

it may seem, you might surprise yourself (like I

did!).”

Lisa Dutton is a Credit Manager

at Whistl UK Ltd


Switch to Direct Debit

Why not spread

the cost of your

Serrala

CP

CICM Membership

Manage your own cashflow

Simply scan the code below using your phone,

print and return to CICM, The Watermill, Station

Road, South Luffenham, Rutland, LE15 8NB

and we will do the rest!

Another reason to be a member

Make the switch to Direct Debit

For details contact: info@cicm.com


Apprentice profile

ETHAN Aghanian works at United Utilities

and is currently enrolled on his Level 2 Credit

Controller apprenticeship. He has been

studying for the qualification for 10 months

and has recently joined the company’s court

team.

“My responsibilities as part of the court team include

speaking to customers who have fallen behind with their

payments and are now subject to legal proceedings to

recover the monies owed,” he explains. “In my day-to-day

role I deal with customers who receive new court claims,

who have County Court Judgments registered against them

as their debt remains unpaid and also customers who

require legal enforcement such as warrants, attachment

of earnings or the registration of a charging order. I

have already learnt so much during my time with United

Utilities but recognise there is still so much more for me

to learn.”

When Ethan first saw the role advertised, he applied

instantly: “I have always wanted to work in finance,”

he says, “and finding a role that also had an element of

customer service included in the apprenticeship was

perfect.

“Since joining the company I can see there are so many

opportunities to progress within United Utilities and

also within the wider credit world, I intend to continue

studying once I have completed my Level 2 and apply for

higher qualifications such as the Level 3 Advanced Credit

Controller apprenticeship.”

So far Ethan has gained experience of many of United

Utilities collection processes including the aforementioned

court process, its B2B commercial debt recovery processes

and treatment of customers who are struggling to pay their

bill through the company’s range of affordability schemes.

“I have also learned more about the wider world of

apprenticeships through having the pleasure of joining the

Kaplan Shadow Board of Apprentices and communicating

with other apprentices with various experience levels,”

he continues. “In addition to this I’ve been attending our

CICM lessons for our apprenticeship scheme which have

contained really useful credit management information

and advice for not only my current role but also future

studies and roles.”

Ethan is currently approaching the end point assessment

period for his apprenticeship scheme with hopes to have it

completed and be qualified by December 2022.

“I am very grateful for the help and support I have

received so far,” he adds. “By this time next year I want to

have achieved my Level 2 qualification and be enrolled

in the Level 3 Credit Controller apprenticeship while also

having further developed my on the job skills such as

negotiation alongside expanding my knowledge of our

processes and systems.’’

Latest in a new series

of how CICM-led

Apprenticeships are

supporting professional

development.

Ethan Aghanian

United Utilities

Credit Controller apprentice

“Since joining the company I can see there

are so many opportunities to progress

within United Utilities and also within the

wider credit world, I intend to continue

studying once I have completed my Level

2 and apply for higher qualifications such

as the Level 3 Advanced Credit Controller

apprenticeship.”

Apprenticeships in Credit

Control and Collections

There are five apprenticeships for those working in the credit

profession. At each Level of apprenticeship you will be able to

gain professional CICM qualifications

• Credit Controller/Collector

• Advanced Credit Controller and Debt Collection Specialist

Apprenticeship

• Compliance/Risk Officer Apprenticeship

• Senior Compliance/Risk Specialist Apprenticeship

• Financial Services Degree Apprenticeship

For more details on how CICM can help you start your

apprenticeship journey, visit cicm.com/apprenticeships


Cr£ditWho?

CICM Directory of Services

COLLECTIONS

COLLECTIONS LEGAL

CREDIT INFORMATION

Controlaccount Plc

Address: Compass House, Waterside, Hanbury Road,

Bromsgrove, Worcestershire B60 4FD

T: 01527 386 610

E: sales@controlaccount.com

W: www.controlaccount.com

Controlaccount plc has been providing efficient, effective and

ethical pre-legal debt recovery for over forty years. We help our

clients to improve internal processes and increase cashflow,

whilst protecting customer relationships and established

reputations. We have long-standing partnerships with leading,

global brand names, SMEs and not for profits. We recover

over 30,000 overdue invoices each month, domestically and

internationally, on a no collect, no fee arrangement. Other

services include credit control and dunning services, international

and domestic trace and legal recoveries. All our clients have

full transparency on any accounts placed with us through our

market leading cloud-based management portal, ClientWeb.

BlaserMills Law

High Wycombe | Amersham | Marlow | Silverstone

Rickmansworth | London

Jackie Ray : 07802 332104 | 01494 478660

jar@blasermills.co.uk

Nina Toor : 01494 478661 nit@blasermills.co.uk

Edward Bible : 07766 013352 ceb@blasermills.co.uk

www.blasermills.co.uk

Commercial Recoveries & Insolvency

Blaser Mills Law’s commercial recoveries team is internationally

recognised, regularly advising large corporations, multinationals

and SMEs on pre-legal collections, debt recovery, commercial

litigation, dispute resolution and insolvency. Our legal services

are both cost-effective and highly efficient; Our lawyers are also

CICM qualified and ranked in the industry leading law firm rankings

publications, Legal 500 and Chambers UK.

CoCredo

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790600

E: customerservice@cocredo.com

W: www.cocredo.co.uk

Celebrating its 20th year in business, CoCredo has extensive

experience in providing online company credit reports and

related business information within the UK and overseas. In 2014

and 2019 we were honoured to be awarded Credit Information

Provider of the Year at the British Credit Awards and have been

finalists every other year. Our company data is continually updated

throughout the day and ensures customers have the most current

information available. We aggregate data from a range of leading

providers across over 235 territories and offer a range of services

including the industry first Dual Report, Monitoring, XML Integration

and DNA Portfolio Management.

We pride ourselves in offering award-winning customer service and

support to protect your business.

Global Credit Recoveries

GCR 20-22 Wenlock Road,

London N1 7GU

Charles Mayhew FCICM or Joshua Mayhew ACICM

T: +44 (0) 203 368 8630

E: INFO@GLOBALCREDITRECOVERIES.COM

W: WWW.GLOBALCREDITRECOVERIES.COM

Shortlisted as DCA of the Year, by the CICM, for the British Credit

Awards, Global Credit Recoveries Ltd are specialists in Arbitration

and Debt Collection globally.

We specialise in the UK, Europe, The Middle East and the U.S.A,

working as an extension of many CICM members companies for

over 28 years.

Speak with us today in our London or Dubai offices, to see how

we can assist you.

We have the ability, and network, to have someone visiting your

debtors offices, throughout EMEA, within 72 hours.

Recovering funds globally, on a No-Recovery, No-Fee basis.

Lovetts Solicitors

Lovetts, Bramley House, The Guildway,

Old Portsmouth Road,

Guildford, Surrey, GU3 1LR

T: 01483 347001

E: info@lovetts.co.uk

W: www.lovetts.co.uk

With more than 25yrs experience in UK & international business

debt collection and recovery, Lovetts Solicitors collects £40m+

every year on behalf of our clients. Services include:

• Letters Before Action (LBA) from £1.50 + VAT (successful in 86%

of cases)

• Advice and dispute resolution

• Legal proceedings and enforcement

• 24/7 access to your cases via our in-house software solution,

CaseManager

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

feedback: “All our service expectations have been exceeded.

The online system is particularly useful and extremely easy to

use. Lovetts has a recognisable brand that generates successful

results.”

Company Watch

Centurion House, 37 Jewry Street,

LONDON. EC3N 2ER

T: +44 (0)20 7043 3300

E: info@companywatch.net

W: www.companywatch.net

Organisations around the world rely on Company Watch’s

industry-leading financial analytics to drive their credit risk

processes. Our financial risk modelling and ability to map medium

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

from other credit reference agencies.

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

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

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

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

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

providing actionable intelligence in an uncertain world.

CONSULTANCY

Guildways

T: +44 3333 409000

E: info@guildways.com

W: www.guildways.com

Guildways is a UK & International debt collection specialist with over

25 years experience. Guildways prides itself on operating to the

highest ethical standards and professional service levels. We are

experienced in collecting B2B and B2C debts. Our service includes:

• A complete No collection, No Fee commission based service

• 10% plus VAT commission for UK debts

• Commission from 22% plus VAT for International debts

• 24/7 online access to your cases through our CaseManager portal

• Direct online account-to-account payments, to speed up

collections and minimise costs

If you are unable to locate your customer, we also offer a no trace, no

fee, trace and collect service.

For more information, visit: www.guildways.com

Cr£ditWho?


Chris Sanders Consulting

T: +44(0)7747 761641

E: enquiries@chrissandersconsulting.com

W: www.chrissandersconsulting.com

Chris Sanders Consulting – we are a different sort of consulting

firm, made up of a network of independent experienced

operational credit & collections management and invoicing

professionals, with specialisms in cross industry best practice

advisory, assessment, interim management, leadership,

workshops and training to help your team and organisation

reach their full potential in credit and collections management.

We are proud to be Corporate Partners of the Chartered Institute

of Credit Management. For more information please contact:

enquiries@chrissandersconsulting.com

identeco – Business Support Toolkit

Compass House, Waterside, Hanbury Road, Bromsgrove,

Worcestershire B60 4FD

Telephone: 01527 386 607

Email: info@identeco.co.uk

Web: www.identeco.co.uk

identeco Business Support Toolkit provides company details

and financial reporting for over 4m UK companies and

business. Subscribers can view company financial health and

payment behaviour, credit ratings, shareholder and director

structures, detrimental data. In addition, subscribers can also

download unlimited B2B marketing and acquisition reports.

Annual subscription is only £79.95. Other services available

to subscribers include AML and KYC reports, pre-litigation

screening, trace services and data appending, as well as many

others.


FOR ADVERTISING INFORMATION OPTIONS

AND PRICING CONTACT

paul@centuryone.uk 01727 739 196

CREDIT MANAGEMENT SOFTWARE

CREDIT MANAGEMENT SOFTWARE

ENFORCEMENT

HighRadius

T: +44 (0) 203 997 9400

E: infoemea@highradius.com

W: www.highradius.com

HighRadius provides a cloud-based Integrated Receivable

Platform, powered by machine learning and AI. Our Technology

empowers enterprise organisations to reduce cycle time in the

order-to-cash process and increase working capital availability by

automating receivables and payments processes across credit,

electronic billing and payment processing, cash application,

deductions, and collections.

Tinubu Square UK

Holland House, 4 Bury Street,

London EC3A 5AW

T: +44 (0)207 469 2577 /

E: uksales@tinubu.com

W: www.tinubu.com

Founded in 2000, Tinubu Square is a software vendor, enabler

of the Credit Insurance, Surety and Trade Finance digital

transformation.

Tinubu Square enables organizations across the world to

significantly reduce their exposure to risk and their financial,

operational and technical costs with best-in-class technology

solutions and services. Tinubu Square provides SaaS solutions

and services to different businesses including credit insurers,

receivables financing organizations and multinational corporations.

Tinubu Square has built an ecosystem of customers in over 20

countries worldwide and has a global presence with offices in

Paris, London, New York, Montreal and Singapore.

Credica Ltd

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

T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk

Our highly configurable and extremely cost effective Collections

and Query Management System has been designed with 3 goals

in mind:

•To improve your cashflow • To reduce your cost to collect

• To provide meaningful analysis of your business

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

Credit Professionals across the UK and Europe, our system is

successfully providing significant and measurable benefits for our

diverse portfolio of clients.

We would love to hear from you if you feel you would benefit from

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

ESKER

Sam Townsend Head of Marketing

Northern Europe Esker Ltd.

T: +44 (0)1332 548176 M: +44 (0)791 2772 302

W: www.esker.co.uk LinkedIn: Esker – Northern Europe

Twitter: @EskerNEurope blog.esker.co.uk

Esker’s Accounts Receivable (AR) solution removes the all-toocommon

obstacles preventing today’s businesses from collecting

receivables in a timely manner. From credit management to cash

allocation, Esker automates each step of the order-to-cash cycle.

Esker’s automated AR system helps companies modernise

without replacing their core billing and collections processes. By

simply automating what should be automated, customers get the

post-sale experience they deserve and your team gets the tools

they need.

SERRALA

Serrala UK Ltd, 125 Wharfdale Road

Winnersh Triangle, Wokingham

Berkshire RG41 5RB

E: r.hammons@serrala.com W: www.serrala.com

T +44 118 207 0450 M +44 7788 564722

Serrala optimizes the Universe of Payments for organisations

seeking efficient cash visibility and secure financial processes.

As an SAP Partner, Serrala supports over 3,500 companies

worldwide. With more than 30 years of experience and

thousands of successful customer projects, including solutions

for the entire order-to-cash process, Serrala provides credit

managers and receivables professionals with the solutions they

need to successfully protect their business against credit risk

exposure and bad debt loss.

FOR

ADVERTISING

INFORMATION

OPTIONS AND

PRICING CONTACT

paul@centuryone.uk

01727 739 196

Court Enforcement Services

Adele Whitehurst – Client Relationship Manager

M: +44 (0)7525 119 711 T: +44 (0)1992 367 092

E : a.whitehurst@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

Court Enforcement Services is the market leading and fastest

growing High Court Enforcement company. Since forming in 2014,

we have managed over 100,000 High Court Writs and recovered

more than £187 million for our clients, all debt fairly collected. We

help lawyers and creditors across all sectors to recover unpaid

CCJ’s sooner rather than later. We achieve 39% early engagement

resulting in market-leading recovery rates. Our multi-awardwinning

technology provides real-time reporting 24/7. We work in

close partnership to expertly resolve matters with a fast, fair and

personable approach. We work hard to achieve the best results

and protect your reputation.

FINANCIAL PR

Gravity Global

Floor 6/7, Gravity Global, 69 Wilson St, London, EC2A 2BB

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

W: www.gravityglobal.com

Gravity is an award winning full service PR and advertising

business that is regularly benchmarked as being one of the

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

building long-term relationships with some of the industry’s bestknown

brands working on often challenging briefs. As the partner

agency for the Credit Services Association (CSA) for the past 22

years, and the Chartered Institute of Credit Management since

2006, it understands the key issues affecting the credit industry

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

media and beyond.

FORUMS

Data Interconnect Ltd

45-50 Shrivenham Hundred Business Park,

Majors Road, Watchfield. Swindon, SN6 8TZ

T: +44 (0)1367 245777

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

We are dedicated to helping finance teams take the cost,

complexity and compliance issues out of Accounts Receivable

processes. Corrivo is our reliable, easy-to-use SaaS platform

for the continuous improvement of AR metrics and KPIs in a

user-friendly interface. Credit Controllers can manage more

accounts with better results and customers can self-serve on

mobile-responsive portals where they can query, pay, download

and view invoices and related documentation e.g. Proofs of

Delivery Corrivo is the only AR platform with integrated invoice

finance options for both buyer and supplier that flexes credit

terms without degrading DSO. Call for a demo.

VISMA | ONGUARD

T: 020 3966 8324

E: edan.milner@onguard.com

W: www.onguard.com

VISMA | Onguard is a specialist in credit management software

and market leader in innovative solutions for order-to-cash. Our

integrated platform ensures an optimal connection of all processes

in the order-to-cash chain. This enhanced visibility with the secure

sharing of critical data ensures optimal connection between all

processes in the order-to-cash chain, resulting in stronger, longerlasting

customer relationships through improved and personalised

communication. The VISMA | Onguard platform is used for

successful credit management in more than 70 countries.

FORUMS INTERNATIONAL

T: +44 (0)1246 555055

E: info@forumsinternational.co.uk

W: www.forumsinternational.co.uk

Forums International Ltd have been running Credit and Industry

Forums since 1991. We cover a range of industry sectors and

International trading, attendance is for Credit Professionals of all

levels. Our forums are not just meetings but communities which

aim to prepare our members for the challenges ahead. Attending

for the first time is free for you to gauge the benefits and meet the

members and we only have pre-approved Partners, so you will

never intentionally be sold to.

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INSOLVENCY

PAYMENT SOLUTIONS

RECRUITMENT

Menzies

T: +44 (0)2073 875 868 - London

T: +44 (0)2920 495 444 - Cardiff

W: menzies.co.uk/creditor-services

Our Creditor Services team can advise on the best way for you

to protect your position when one of your debtors enters, or

is approaching, insolvency proceedings. Our services include

assisting with retention of title claims, providing representation

at creditor meetings, forensic investigations, raising finance,

financial restructuring and removing the administrative burden

– this includes completing and lodging claim forms, monitoring

dividend prospects and analysing all Insolvency Reports and

correspondence.

For more information on how the Menzies Creditor Services

team can assist, please contact Bethan Evans, Licensed

Insolvency Practitioner, at bevans@menzies.co.uk or call

+44 (0)2920 447 512.

LEGAL

Shoosmiths

Email: paula.swain@shoosmiths.co.uk

Tel: 03700 86 3000 W: www.shoosmiths.co.uk

Shoosmiths’ highly experienced team will work closely with credit

teams to recover commercial debts as quickly and cost effectively

as possible. We have an in depth knowledge of all areas of debt

recovery, including:

•Pre-litigation services to effect early recovery and keep costs

down

•Litigation service

•Post-litigation services including enforcement

•Insolvency

As a client of Shoosmiths, you will find us quick to relate to your

goals, and adept at advising you on the most effective way of

achieving them.

Bottomline Technologies

115 Chatham Street, Reading

Berks RG1 7JX | UK

T: 0870 081 8250 E: emea-info@bottomline.com

W: www.bottomline.com/uk

Bottomline Technologies (NASDAQ: EPAY) helps businesses

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

domestic and international payments, effective cash management

tools, automated workflows for payment processing and bill

review and state of the art fraud detection, behavioural analytics

and regulatory compliance. Businesses around the world depend

on Bottomline solutions to help them pay and get paid, including

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

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

by making complex business payments simple, secure and

seamless.

Key IVR

T: +44 (0) 1302 513 000 E: sales@keyivr.com

W: www.keyivr.com

Key IVR are proud to have joined the Chartered Institute of

Credit Management’s Corporate partnership scheme. The

CICM is a recognised and trusted professional entity within

credit management and a perfect partner for Key IVR. We are

delighted to be providing our services to the CICM to assist with

their membership collection activities. Key IVR provides a suite

of products to assist companies across the globe with credit

management. Our service is based around giving the end-user

the means to make a payment when and how they choose. Using

automated collection methods, such as a secure telephone

payment line (IVR), web and SMS allows companies to free up

valuable staff time away from typical debt collection.

Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Hays Credit Management is working in partnership with the CICM

and specialise in placing experts into credit control jobs and

credit management jobs. Hays understands the demands of this

challenging environment and the skills required to thrive within

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

contract based opportunities to find your ideal role. Our candidate

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

interviews and a credit control skills test developed exclusively for

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

can provide advice across a wide spectrum of job search and

recruitment issues.

PORTFOLIO

CREDIT CONTROL

Portfolio Credit Control

1 Finsbury Square, London. EC2A 1AE

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

Portfolio Credit Control, a 5* Trustpilot rated agency, solely

specialises in the recruitment of Permanent, Temporary & Contract

Credit Control, Accounts Receivable and Collections staff

including remote workers. Part of The Portfolio Group, an awardwinning

Recruiter, we speak to Credit Controllers every day and

understand their skills meaning we are perfectly placed to provide

your business with talented Credit Control professionals. Offering

a highly tailored approach to recruitment, we use a hybrid of faceto-face

and remote briefings, interviews and feedback options.

We provide both candidates & clients with a commitment to deliver

that will exceed your expectations every single time.

PAYMENT SOLUTIONS

American Express

76 Buckingham Palace Road,

London. SW1W 9TQ

T: +44 (0)1273 696933

W: www.americanexpress.com

American Express is working in partnership with the CICM and is a

globally recognised provider of payment solutions to businesses.

Specialising in providing flexible collection capabilities to drive a

number of company objectives including:

• Accelerate cashflow • Improved DSO • Reduce risk

• Offer extended terms to customers

• Provide an additional line of bank independent credit to drive

growth • Create competitive advantage with your customers

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

American Express is working with credit managers to drive growth

within businesses of all sectors. By creating an additional lever

to help support supplier/client relationships American Express is

proud to be an innovator in the business payments space.

YayPay by Quadient

T: + 44 (0) 7465 423 538

E: r.harash@quadient.com

W: www.yaypay.com

YayPay by Quadient makes it easy for B2B finance teams to stay

ahead of accounts receivable and get paid faster – from anywhere.

Integrating with your existing ERP, CRM, accounting and billing

systems, YayPay organizes and presents real-time data through

meaningful, cloud-based dashboards. These increase visibility

across your AR portfolio and provide your team with a single

source of truth, so they can access the information they need to

work productively, no matter where they are based.

Automated capabilities improve team efficiency by 3X and

accelerate the collections process by making communications

customizable and consistent. This enables you to collect cash

up to 34 percent faster and removes the need to add additional

resources as your business grows.

Predictive analytics provide insight into future payer behavior to

improve cash flow management and a secure, online payment

portal enables customers to access their accounts and pay at any

time, from anywhere.

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View our digital version online at www.cicm.com

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

‘Credit Management magazine’

Just another great reason to be a member

Credit Management is distributed to the entire UK and international

CICM membership, as well as additional subscribers

Brave | Curious | Resilient

www.cicm.com | +44 (0)1780 722900 | editorial@cicm.com


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