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

MARCH <strong>2023</strong> £13.00<br />



INSIDE<br />

Winners of the<br />

CI<strong>CM</strong> British<br />

Credit Awards<br />

Pgs 35-55<br />

CARROT<br />

OR STICK<br />

Tackling the late<br />

payment challenge<br />

David Scottow: winner<br />

profile for outstanding<br />

achievement. Page 18<br />

New Zealand makes a tempting<br />

target for international trade.<br />

Page 24

Fill your vacancy or find your next career<br />

move at www.portfoliocreditcontrol.com<br />


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Giuseppe Parla<br />

MARCH <strong>2023</strong><br />

www.cicm.com<br />


10 – STAYING POWER<br />

Are the new Corporate Insolvency<br />

measures here to stay?<br />


Is it time to change the late payment<br />

conversation?<br />

24<br />


Adam Bernstein<br />

14 – LATE CHARGE<br />

Will late payment ever be resolved or is<br />

it a fantasy?<br />


Profiling David Scottow FCI<strong>CM</strong>, winner<br />

of the CI<strong>CM</strong> BCA for outstanding<br />

achievement<br />

20 – SOLID GROUND<br />

Why include price escalation clauses in<br />

construction contracts?<br />

24 – BEYOND THE HAKA<br />

New Zealand makes a tempting target<br />

for international trade<br />

29 – FAIR PLAY<br />

The benefit of independent oversight<br />

for enforcement<br />

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

14<br />


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

President Stephen Baister FCI<strong>CM</strong> / Chief Executive Sue Chapple FCI<strong>CM</strong><br />

Executive Board: Chair Debbie Nolan FCI<strong>CM</strong>(Grad) / Vice Chair Phil Rice FCI<strong>CM</strong> / Treasurer Glen Bullivant FCI<strong>CM</strong><br />

Larry Coltman FCI<strong>CM</strong> / Neil Jinks FCI<strong>CM</strong> / Allan Poole MCI<strong>CM</strong><br />

Advisory Council: Caroline Asquith-Turnbull FCI<strong>CM</strong> / Laurie Beagle FCI<strong>CM</strong> / Glen Bullivant FCI<strong>CM</strong> /Brendan Clarkson FCI<strong>CM</strong><br />

Larry Coltman FCI<strong>CM</strong> / Peter Gent FCI<strong>CM</strong>(Grad) / Victoria Herd FCI<strong>CM</strong>(Grad) / Andrew Hignett MCI<strong>CM</strong>(Grad)<br />

Laural Jefferies FCI<strong>CM</strong> / Neil Jinks FCI<strong>CM</strong> / Martin Kirby FCI<strong>CM</strong> / Charles Mayhew FCI<strong>CM</strong> / Hans Meijer FCI<strong>CM</strong> / Debbie Nolan<br />

FCI<strong>CM</strong>(Grad) / Amanda Phelan MCI<strong>CM</strong>(Grad) / Allan Poole MCI<strong>CM</strong> / Phil Rice FCI<strong>CM</strong> / Phil Roberts FCI<strong>CM</strong> / Chris Sanders FCI<strong>CM</strong><br />

Paula Swain FCI<strong>CM</strong> / Jamie Thornton MCI<strong>CM</strong> / Mark Taylor MCI<strong>CM</strong> / Atul Vadher FCI<strong>CM</strong>(Grad)<br />

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

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

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

membership, as well as additional subscribers<br />

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

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

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

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

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


Guarantee a productive year ahead with<br />

professional goals.<br />

Publisher<br />

Chartered Institute of Credit Management<br />

1 Accent Park, Bakewell Road, Orton Southgate,<br />

Peterborough PE2 6XS<br />

Telephone: 01780 722900<br />

Email: editorial@cicm.com<br />

Website: www.cicm.com<br />

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

Managing Editor<br />

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

Deputy Editor<br />

Iona Yadallee<br />

Art Editor<br />

Andrew Morris<br />

Telephone: 01780 722910<br />

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

Editorial Team<br />

Joe Clarkson, Rob Howard, Roshika Perera,<br />

Melanie York and Mona Yazdanparast<br />

Advertising<br />

Paul Heitzman<br />

Telephone: 01727 739 196<br />

Email: paul@centuryone.uk<br />

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ISSN 0265-2099<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 3


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

In amongst the gloom there<br />

are always glimmers of light<br />

PERHAPS, given the dreadful<br />

earthquake that has<br />

devastated huge swathes of<br />

Turkey and Syria leading<br />

to colossal loss of life, it<br />

may seem inappropriate to<br />

talk about tsunamis in any other context.<br />

And yet it is the language being used by<br />

those in the insolvency profession as they<br />

predict the next six months and expect<br />

the floodgates to finally open on company<br />

insolvencies.<br />

The figures are alarming. There were<br />

5,995 registered company insolvencies<br />

between 1 October and 31 December<br />

2022, according to figures released by<br />

The Insolvency Service. They include<br />

4,891 creditors’ voluntary liquidations<br />

(CVLs), 720 compulsory liquidations, 359<br />

administrations and 25 company voluntary<br />

arrangements (CVAs).<br />

According to accountancy firm RSM,<br />

UK company insolvencies will continue<br />

to climb for the next couple of quarters in<br />

<strong>2023</strong> as rising interest rates and the cost-ofliving<br />

crisis put a tight squeeze on debtor’s<br />

funds – at a time when many are still just<br />

recovering from the COVID-19 pandemic.<br />

Gareth Harris, Partner and Regional<br />

Head of Restructuring Advisory at RSM<br />

UK, believes insolvencies are now in free<br />

flow (see news page 8). He believes that the<br />

next six months may be the toughest for<br />

UK business since the early 1990s. Even to<br />

survive, he says, will be a victory for many.<br />

Brendan Clarkson from Azzurro<br />

Associates and Bob Pinder, Director,<br />

Quality Assurance, Professional Standards<br />

at the ICAEW agree. In their opinion,<br />

many businesses survived the pandemic<br />

due to Government support, which has<br />

now largely come to an end, with many<br />

directors deciding to close their businesses<br />

while matters are still in their hands. Both<br />

anticipate that this year we will also see<br />

more involuntary closures, as firms are<br />

driven to the brink.<br />

Which made me think about which<br />

companies would be the first to falter.<br />

I seem to remember my grandfather, a<br />

serial entrepreneur, saying that there<br />

were only three jobs in life that were ever<br />

guaranteed: bringing people into the<br />

world; taking them out; and feeding them<br />

while they were there! I’ve no idea if he<br />

was right, but looking through the list of<br />

recent insolvencies, he may well have been<br />

close!<br />

Those of us who have been here before,<br />

and survived previous recessions and tales<br />

of woe, know that in amongst the gloom<br />

and doom there will be glimmers of light.<br />

There are always companies that succeed<br />

despite everything, either because they<br />

have a product or service that people and<br />

businesses need, or because they have<br />

the foresight and agility to move with the<br />

times and cut their cloth accordingly.<br />

The challenge for our members is to<br />

know which companies represent their<br />

greatest risk, and which represent their<br />

greatest opportunity.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 4

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

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

world of consumer and commercial credit.<br />

A third of households to<br />

demonstrate financial resilience<br />

SOME 10 million households will<br />

demonstrate financial resilience<br />

this year, with spending power<br />

concentrated in London, the South-<br />

East and city locations throughout<br />

the UK.<br />

New analysis from Experian suggests more<br />

than a third (35 percent) of households are<br />

equipped to recover from temporary financial<br />

issues in <strong>2023</strong> despite the wider economic<br />

landscape. This may be in the form of a job loss,<br />

a relationship breakdown, or an unexpected<br />

emergency cost.<br />

Households within the ‘Prestige Positions’<br />

and ‘City Prosperity’ groups were found to have<br />

the most protection from rising costs. Typically,<br />

these groups have high-paying, professional<br />

jobs, own large properties, are based in the<br />

South-East and working in London.<br />

These wealthy households are not immune<br />

to the challenges of the cost-of-living crisis<br />

and are making changes but they can still,<br />

largely, enjoy the lifestyle of previous years.<br />

These groups spend more than £2,000 a month<br />

on ‘non-essential’ costs such as eating out,<br />

holidays and new cars.<br />

However, the analysis also found UK<br />

households’ discretionary income fell by 10<br />

percent in 2022 and is expected to fall further<br />

this year, with an estimated drop of 19 percent.<br />

The least affluent households, typically lowincome<br />

families and city residents in high<br />

density rental housing, will see reductions<br />

Written by – Sean Feast FCI<strong>CM</strong><br />

in spending power in excess of 25 percent -<br />

representing approximately nine million UK<br />

households. Colin Grieves, Managing Director,<br />

Marketing Services, Experian UK&I, says at<br />

a time when most organisations are seeking<br />

to understand the impact of the cost-ofliving<br />

crisis on their customers, data-driven<br />

insights are crucial: “Households across the<br />

UK have experienced various challenges over<br />

the last 12 months, with most forced to make<br />

cuts to everyday expenditure. Businesses are<br />

making similar decisions about how best they<br />

allocate resources, not only for advertising and<br />

marketing, but about how they can help their<br />

customers too.<br />

“It is important organisations really<br />

understand how their customers are faring and<br />

recognise the changes which are happening.<br />

Understanding the evolving demographics<br />

of the UK is essential for organisations of all<br />

shapes and sizes, helping them to connect,<br />

engage and support people.”<br />

Elsewhere, a report from Resolution<br />

Foundation warns that times will get worse<br />

before they get better, with far-reaching<br />

impacts on financial resilience and health. Its<br />

research suggests real wages aren’t expected<br />

to return to early 2022 levels until the end of<br />

2027. Worse still is the finding that typical<br />

incomes are set to remain below their realterms<br />

pre-pandemic level for another five to six<br />

years, according to The Resolution Foundation’s<br />

report The Living Standards Outlook <strong>2023</strong>.<br />

Government reveals extent of COVID fraud financial<br />

FIGURES from the Government have<br />

revealed the true value of fraud believed<br />

to have been committed by company<br />

directors in relation to the huge sums of<br />

Bounce Back Loans given to businesses<br />

to see them through the COVID crisis.<br />

Of the £4.1bn the Government has paid<br />

to lenders for defaulted credit under the<br />

Bounce Back Loan scheme, more than<br />

£1bn has been identified as ‘suspected<br />

fraud’.<br />

Of the principal lenders, Lloyds tops<br />

the list at £317m, followed by Barclays<br />

(£250m), NatWest (£160m) and HSBC<br />

❝<br />

‘‘Understanding<br />

the evolving<br />

demographics of the<br />

UK is essential for<br />

organisations of all<br />

shapes and sizes,<br />

helping them to<br />

connect, engage and<br />

support people.”<br />

❝<br />

(£110m). Starling suspect £95m of its<br />

loans may be fraudulent, and Santander<br />

a further £83m – a total of £1.015bn.<br />

While these figures are the totals<br />

relating to fraud, the actual total of loans<br />

that have defaulted are four times that<br />

amount, and four times the potential<br />

misery for the taxpayer who will be<br />

ultimately responsible for footing the<br />

bill. Plans are now being considered as<br />

to how to recover the money, including<br />

one that doesn’t use the insolvency route<br />

at all, but rather uses the court system to<br />

take action against fraudulent directors<br />

personally when they are known to<br />

have the means to pay. Andrew<br />

Birkwood of Azzurro Associates, the<br />

business behind the scheme, says<br />

targeting those with the means to<br />

pay would win the respect of the<br />

Government, the lenders, and the public<br />

at large: “It would garner even more<br />

respect for the fact that such a process<br />

could be managed on a contingent basis,<br />

fully non-recourse and with no priority<br />

on repayment. In simple terms, the cost<br />

of litigation would be made entirely at<br />

our own risk.,” he adds.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 5


UK manufacturing sector<br />

production volumes returning to<br />

pre-Pandemic levels<br />

ALMOST three quarters<br />

(70 percent) of engineers<br />

working in UK<br />

manufacturing report that<br />

business has returned<br />

or even exceeded pre-pandemic<br />

production volumes as the darkest<br />

days of COVID-19 appear to be fast<br />

disappearing into the rear-view mirror.<br />

Businesses in the aerospace,<br />

electronics and energy sectors all<br />

point to a substantial recovery with<br />

72 percent, 59 percent and 71 percent<br />

of respondents respectively flagging<br />

a return to pre-COVID-19 levels of<br />

production.<br />

But not every sector is in such good<br />

health: 60 percent of respondents in the<br />

automotive industry say output in their<br />

firms has been reduced, and access<br />

to skills, supply chain issues and the<br />

move to hybrid/remote working were<br />

all cited as particular challenges across<br />

all areas of manufacturing.<br />

The State of Manufacturing <strong>2023</strong><br />

Report, conducted for Essentra<br />

Components by The Engineer<br />

Magazine, sought to uncover the<br />

biggest concerns facing engineers<br />

working in UK manufacturing.<br />

Described as one of the most<br />

important studies of its kind ever to<br />

be commissioned, the report focuses<br />

on respondents’ attitudes to future<br />

talent, technology, sustainability, and<br />

a heavily impacted supply chain in a<br />

post-COVID world.<br />

Scott Fawcett, Chief Executive<br />

Officer, Essentra PLC, says the<br />

performance of the manufacturing<br />

sector is often seen by Government<br />

and the media as a barometer for the<br />

UK’s wider economic wellbeing: “With<br />

this report, we are demonstrating<br />

our responsibility as a leader to dig<br />

beneath the surface and find out what<br />

is really going on behind the numbers,<br />

to help inform future decision making.”<br />

The issue of skills was a particular<br />

concern, with almost three quarters (74<br />

percent) saying new recruits frequently<br />

lack the skills and qualifications<br />

needed to succeed in a modern<br />

manufacturing environment.<br />

Perhaps of greatest concern,<br />

however, is the supply chain: exactly<br />

half (50 percent) say supply chain<br />

pressures have had a significant<br />

impact on their business, and 62<br />

percent expect those issues to remain<br />

FSB warns of collapse in small<br />

business confidence<br />

CONFIDENCE among small firms is at<br />

a new low outside periods of lockdown,<br />

with retail and hospitality businesses<br />

especially hard-pressed, as FSB sets out<br />

measures to help give small firms a boost<br />

The Q4 2022 Small Business Index<br />

from the Federation of Small Businesses<br />

(FSB) has found that small firms’<br />

confidence has fallen again, plunging to<br />

a level almost on a par with the second<br />

COVID lockdown, but small businesses<br />

vow to fight on.<br />

A poor economic climate should focus<br />

minds on breaking down barriers to<br />

growth – helping more people into work,<br />

tackling late payment, driving energy<br />

efficiency, powering R&D, and getting<br />

more people to start up on their own<br />

Sectors like retail and hospitality are<br />

under particular pressure, and more<br />

businesses are losing staff than gaining<br />

– though future hiring intentions appear<br />

more positive.<br />

Small firms’ confidence in the final<br />

quarter of 2022 plunged to a depth<br />

almost on a par with that measured<br />

during the second COVID lockdown two<br />

years previously, new research from FSB<br />

has found.<br />

The Small Business Index (SBI)’s<br />

headline confidence figure in Q4 2022 fell<br />

to -46 points, down from -36 points in Q3<br />

2022, and the lowest such finding since<br />

Q4 2020, when it was -49 points.<br />

In several individual industry sectors,<br />

the confidence reading was particularly<br />

low, with retail businesses registering<br />

a finding of -83 points, and hospitality<br />

firms coming in at -71 points. This<br />

is described as being particularly<br />

troubling during the ‘golden quarter’ for<br />

consumer-facing businesses such as<br />

shops, bars, and restaurants.<br />

More positively, the construction (-19<br />

points), IT and technology (-25 points)<br />

and manufacturing (-39 points) sectors<br />

were more upbeat than average, albeit<br />

still in negative territory.<br />

More small firms reported a drop<br />

in revenues over the previous three<br />

months (43 percent) than reported a<br />

rise (33 percent), and their outlook for<br />

the next three months reflected this as<br />

well, with 44 percent expecting to see<br />

a fall in revenues against three in ten<br />

anticipating a rise (29 percent).<br />

The proportion of small businesses<br />

which saw employee numbers fall (16<br />

percent) outweighed the share which<br />

gained staff (10 percent) over the<br />

previous three months, although the<br />

employment outlook for the next three<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 6

for anything up to five years. Some 15<br />

percent even believe they could go on<br />

indefinitely.<br />

To mitigate the effects of these<br />

challenges, manufacturers are taking<br />

a variety of actions from sourcing new<br />

suppliers (64 percent of respondents)<br />

to increasing prices (43 percent)<br />

and exploring ways of reducing<br />

overheads (just under 30 percent).<br />

Around a quarter of respondents also<br />

report using supply chain forecasting<br />

models, and even reshoring aspects of<br />

production, to anticipate and address<br />

supply chain delays.<br />

On a more positive note, most<br />

(90 percent) say their firms have<br />

an active technology investment<br />

plan and almost two out of three (61<br />

percent) view the drive for increased<br />


❝<br />

“Despite the challenges of COVID-19,<br />

manufacturers appear to be bouncing back<br />

with production volumes and financial revenues<br />

recovering to pre-pandemic levels,”<br />

– Scott Fawcett<br />

sustainability as an opportunity, rather<br />

than a threat.<br />

Scott says it is reassuring to see<br />

so many positives from the report:<br />

“Despite the challenges of COVID-19,<br />

manufacturers appear to be bouncing<br />

back with production volumes and<br />

financial revenues recovering to prepandemic<br />

levels,” he says.<br />

“It is encouraging to read of the<br />

investment many are making in<br />

technology and innovation, and<br />

in addressing the challenges of a<br />

disrupted supply chain. It is also<br />

pleasing to see the continued focus on<br />

sustainability, making our industry and<br />

our planet fit for future generations.<br />

It’s something we can be proud of, both<br />

professionally and personally.”<br />

>NEWS<br />

IN BRIEF<br />

Kennek funding<br />

LONDON-based fintech firm Kennek<br />

has raised a $4.5m pre-seed funding<br />

round. The company has developed an<br />

end-to-end operating system designed<br />

to streamline the operations for<br />

lenders, credit investors, corporates,<br />

and servicers in the alternative credit<br />

sector. In its first year of trading,<br />

Kennek has already hired 20 fulltime<br />

staff, and launched a plug-and-play<br />

operating system that caters for a<br />

broad variety of lenders and credit<br />

products. The company’s UK operation<br />

has already secured commercial wins<br />

with clients operating in the areas of<br />

SME loans, R&D credit and Commercial<br />

Real Estate.<br />

Air Supply<br />

FIGURES compiled by Tipalti show<br />

that UK Airbnb hosts have the<br />

third highest average annual host<br />

earnings, at c£18,000 per year. USA<br />

hosts top the list (c£36,000) followed<br />

by Australia (c£23,000). Owners in<br />

France and Thailand can expect to<br />

receive the least (c£9,000 and c£7,500<br />

respectively). York and Bath are the<br />

most popular destinations in the UK.<br />

months was more positive, with one<br />

in seven small businesses (14 percent)<br />

expecting to increase their staff numbers<br />

against around one in ten (11 percent)<br />

expecting to see a fall.<br />

Three in ten small businesses (30<br />

percent) said their payment situation had<br />

worsened over the previous three months.<br />

FSB National Chair, Martin McTague,<br />

says business owners are resilient and<br />

where there is a will, they will find a<br />

way through: “Clearly, falling consumer<br />

spending, inflation, and high energy<br />

bills are all taking a toll, and poor results<br />

after the golden quarter are particularly<br />

disappointing – but this should also be a<br />

time to grasp the nettle and be decisive<br />

in finding more ways for the economy<br />

to grow, which is why we have drawn up<br />

a plan of action for the Government to<br />

implement.<br />

“Small businesses are always the engine<br />

room of any economic recovery. The more<br />

rapidly small firms pull through, the more<br />

rapidly we can all recover.<br />

“Helping more people into work, tackling<br />

late payment, driving energy efficiency,<br />

powering R&D and getting more people<br />

to start up on their own are all initiatives<br />

that will make a real difference to the<br />

economy – just as small business owners<br />

individually will continue to demonstrate<br />

the ingenuity they showed during the<br />

pandemic to find new markets and new<br />

ways of working.<br />

“Small firms are a fantastic national<br />

resource of innovation and creativity –<br />

especially if given the right conditions<br />

to flourish. These results are incredibly<br />

worrying, yes, but they are not the final<br />

word.”<br />

❝<br />

“Small businesses<br />

are always the<br />

engine room of any<br />

economic recovery.<br />

The more rapidly<br />

small firms pull<br />

through, the more<br />

rapidly we can all<br />

recover.’’<br />

❝<br />

Coface acquisition<br />

COFACE has acquired the North<br />

American data analytics boutique<br />

Rel8ed. The acquisition is described<br />

as bringing new, rich data sets and<br />

analytics capabilities, which will<br />

benefit Coface trade credit insurance<br />

as well as the company’s business<br />

information customers and teams.<br />

Rel8ed was founded in 2015 with<br />

the support of Innovate Niagara’s<br />

incubator program in Ontario, and has<br />

offices in the U.S. and Canada. Rel8ed<br />

is specialised in the integration, crossreferencing,<br />

analysis and inference<br />

from big data extracted from multiple<br />

sources. Rel8ed’s customers range<br />

from multi-national companies and<br />

Governments to business associations.<br />

Meanwhile, Coface has also appointed<br />

Jonathan Steenberg as Economist for<br />

the United Kingdom and Ireland. He<br />

reports to Bruno De Moura Fernandes,<br />

Head of Macroeconomic Research at<br />

Coface and is based in London.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 7


UK company insolvencies rise to 13-year high<br />

AFTER seasonal adjustment, the number of<br />

individual insolvencies began to rise as Q4 2022<br />

was six percent higher than Q3 2022, and seven<br />

percent higher than in Q4 2021. But the worst is<br />

yet to come.<br />

The number of insolvencies in the last<br />

quarter of 2022 has jumped 30 percent on the<br />

same period the previous year, following the<br />

end of Government support schemes – with<br />

experts predicting high liquidation numbers to<br />

continue for the next six months.<br />

According to accountancy firm RSM, UK<br />

company insolvencies will continue to climb<br />

for the next a couple quarters in <strong>2023</strong> as rising<br />

interest rates and the cost-of-living crisis put<br />

a tight squeeze on debtor’s funds – at a time<br />

when many are still just recovering from the<br />

COVID-19 pandemic.<br />

There were 5,995 registered company<br />

insolvencies between 1 October and 31<br />

December 2022, according to figures released<br />

by The Insolvency Service. Quarterly statistics<br />

are adjusted to account for seasonal variation<br />

in insolvencies across the year and allow for<br />

comparison to the most recent period within<br />

years.<br />

They include 4,891 creditors’ voluntary<br />

liquidations (CVLs), 720 compulsory<br />

liquidations, 359 administrations and 25<br />

company voluntary arrangements (CVAs).<br />

There were no receivership appointments.<br />

After seasonal adjustment, the number of<br />

company insolvencies in Q4 2022 was seven<br />

percent higher than in Q3 2022 and 30 percent<br />

higher than in Q4 2021. The number of CVLs<br />

Credit Union borrowing hits fresh record<br />

in search for affordable credit<br />

CREDIT Unions are lending<br />

record sums to borrowers<br />

in the UK as the cost of<br />

borrowing continues to rise.<br />

Figures from the latest<br />

Credit Monitor from Freedom Finance<br />

show that average household quoted<br />

rates on credit cards hit 22.46 percent,<br />

their highest levels since 1998, while<br />

personal loans posted their highest<br />

quarterly increase of all time in Q4<br />

2022.<br />

Amid the cost-of-living squeeze and<br />

this rate-rising environment, Credit<br />

Unions have grown in popularity and<br />

the latest data released by the Bank<br />

of England reveals that they are now<br />

lending record sums to members.<br />

Total borrowing reached £1.92bn in<br />

Q3 2022, which marks an increase of<br />

£255m (15 percent increase) compared<br />

to the same quarter in 2021, and an<br />

uptick of £51m from Q2 2022. Despite<br />

a dip in the total number of Credit<br />

❝<br />

“We expect<br />

these high<br />

liquidation numbers<br />

to continue for<br />

a couple more<br />

quarters before<br />

slowly tailing off<br />

as the recession<br />

softens.”<br />

❝<br />

Union members in Q3 2022, there<br />

are currently 1.94m members which<br />

remains more than 38,000 higher<br />

compared to the same period the year<br />

before.<br />

Credit Unions are cooperative<br />

societies owned by their members<br />

joined by a common bond such as<br />

living or working in the same area.<br />

They offer a range of financial services<br />

products including loans which are<br />

often available at low rates and to<br />

people on lower incomes and so can be<br />

a vital financial lifeboat for those who<br />

are under-served by the mainstream<br />

lending sector.<br />

Emma Steeley, CEO at Freedom<br />

Finance, says access to affordable<br />

credit products is crucial: “Credit<br />

Unions play a critical role in plugging<br />

this gap but they remain poorly known<br />

and understood.,” she explains. “We<br />

saw from last year’s CSJ report on<br />

loan sharks that people who feel<br />

remained close to the highest quarterly level<br />

since the start of the series in 1960 (Q2 2022).<br />

The number of compulsory liquidations also<br />

increased to the highest quarterly number<br />

since the start of the COVID-19 pandemic,<br />

partly as a result of an increase in windingup<br />

petitions presented by HMRC and a high<br />

number of petitions from a single bank.<br />

Gareth Harris, partner and Regional Head of<br />

Restructuring Advisory at RSM UK, believes<br />

insolvencies are now in free flow: “We expect<br />

these high liquidation numbers to continue for<br />

a couple more quarters before slowly tailing off<br />

as the recession softens,” he explains.<br />

“But the next six months may be the toughest<br />

for UK business since the early 1990s as almost<br />

all economic indicators paint a gloomy picture<br />

and survival will represent success for many.<br />

This will, however, create opportunity for those<br />

strong businesses that may be able to capitalise<br />

if they can move quickly.”<br />

ICAEW’s most recent Business Confidence<br />

Monitor found that UK business confidence<br />

had crashed to a 13-year low in Q4 2022 as a<br />

weakened economy and depleting customer<br />

demand caused business sentiment to plunge<br />

to 2009 global financial crisis levels.<br />

Bob Pinder, Director, Quality Assurance,<br />

Professional Standards at ICAEW, says: “Many<br />

businesses survived the pandemic due to<br />

Government support, which has now largely<br />

come to an end, I anticipate this year we will<br />

see more involuntary closures – either way<br />

we know ICAEW restructuring and insolvency<br />

firms are now getting much busier.”<br />

locked out of the regulated financial<br />

services industry can fall into illegal<br />

lending which can rapidly spiral out of<br />

control with disastrous and dangerous<br />

consequences.<br />

“This is why it is so important that<br />

the industry continues to beat the<br />

drum for all providers – including<br />

Credit Unions – who are able to<br />

broaden access to the credit market<br />

and help more people benefit from<br />

more products which are suitable for<br />

their circumstances.<br />

“Across the lending market, we<br />

all need to be working towards<br />

offering consumers a wide variety of<br />

products from reputable providers.<br />

Technological developments like Open<br />

Banking and soft searches can be<br />

used to ensure that even people with<br />

thin credit files can access the credit<br />

market, avoid declined applications<br />

and shop around to get the best<br />

products that they are eligible for.”<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 8


The CI<strong>CM</strong> teams up with BlackLine<br />

to help members modernise<br />

accounting processes<br />

THE Chartered Institute of Credit<br />

Management (CI<strong>CM</strong>), the largest<br />

professional credit management body<br />

in the world, has entered into a new<br />

agreement with accounting automation<br />

software leader BlackLine.<br />

Through joint events, awards and<br />

content, the alliance will give CI<strong>CM</strong><br />

members access to valuable insights<br />

into best practice cash optimisation,<br />

how to automate repetitive work, and<br />

the benefits of switching from manual<br />

finance practices to modern accounting<br />

processes.<br />

Founded in 2001, BlackLine is<br />

the pioneer of the cloud financial<br />

close market, providing solutions to<br />

manage and automate financial close,<br />

accounts receivable and intercompany<br />

accounting processes. It works with<br />

more than 4,100 large enterprises and<br />

midsize companies across all industries<br />

to help them do accounting work better,<br />

faster and with more control.<br />

Sue Chapple FCI<strong>CM</strong>, Chief Executive<br />

of the CI<strong>CM</strong> says the alliance gives<br />

members access to new ways of<br />

addressing a familiar challenge:<br />

“We are delighted to have<br />

BlackLine as a new corporate<br />

partner and hope this relationship<br />

will empower members to<br />

improve cash management<br />

within their business and<br />

help credit managers<br />

improve decision-making<br />

and perform their jobs<br />

with even greater<br />

efficiency.<br />

❝<br />

“We are delighted to have<br />

BlackLine as a new corporate<br />

partner and hope this relationship<br />

will empower members to improve<br />

cash management’’<br />

– Sue Chapple FCI<strong>CM</strong><br />

“With the economic downturn<br />

already putting pressure on credit and<br />

collections businesses, BlackLine’s<br />

services will help our members<br />

operate more efficiently by removing<br />

the obstacles and inconveniences of<br />

manual accounting.”<br />

Andy Lilley, Managing Director of<br />

Accounts Receivable at BlackLine<br />

believes the alliance comes at a crucial<br />

time for the credit management<br />

professsion: “With cash management<br />

more critical than ever, joining forces<br />

with CI<strong>CM</strong> to help curate valuable<br />

content and events that will help their<br />

members get ahead of the curve was a<br />

key driver behind our decision.<br />

"We are seeing more customers<br />

looking to BlackLine for intelligent<br />

insights, as businesses seek to<br />

harness real-time data and<br />

powerful analytics to improve<br />

critical decision-making across<br />

the enterprise. We look forward<br />

to working closely with CI<strong>CM</strong><br />

and its members in the<br />

coming years."<br />

>NEWS<br />

IN BRIEF<br />

UK executive pay<br />

increasingly linked to<br />

ESG targets<br />

THE UK’s top companies are<br />

increasingly including ESG corporate<br />

goals in executive pay plans,<br />

suggesting investor pressure for<br />

greater ESG disclosure is taking effect,<br />

new research shows.<br />

The use of environmental, social<br />

and governance (ESG) metrics in UK<br />

executive pay plans has grown to 89<br />

percent, up from 81 percent according<br />

to research by WTW, a US advisory and<br />

broking company.<br />

The occurrence of ESG-linked<br />

goals appears in both short-term and<br />

long-term payment plans in the UK.<br />

According to the study, 85 percent<br />

of UK plc tied their short-term pay<br />

packages to at least one ESG measure,<br />

up from 79 percent the previous year.<br />

The proportion of companies that used<br />

at least one ESG measure in their longterm<br />

pay plan rose from 24 percent to<br />

37 percent in the past year. This trend<br />

is set to continue, if not accelerate<br />

in the next few years, the research<br />

suggests.<br />

Sarah Reay, Climate Change<br />

Executive, ICAEW, says there is some<br />

way to go in matching the addition<br />

of measures in long-term plans with<br />

those in the short-term plans: “We<br />

hope that by including social and<br />

environmental measures as part of<br />

executive remuneration, this will<br />

accelerate action on emissions<br />

reduction, close the gap on social<br />

inequalities and improve the health<br />

and wellbeing of people and the<br />

planet.”<br />

Arvato ‘deeply regrets’ misconduct by employee<br />

ARVATO Financial Solutions is<br />

understood to have suspended with<br />

immediate effect an employee involved<br />

in a Times newspaper undercover<br />

‘sting’ operation and says that it<br />

‘deeply regrets’ any misconduct by an<br />

individual employee.<br />

In a statement given to Credit<br />

Management, a spokesperson for<br />

Arvato Financial Solutions said<br />

the business continues to act in<br />

compliance with the regulatory<br />

requirements which govern its<br />

operations. ‘We respect and adhere to<br />

industry standards set by Ofgem as<br />

well as other regulatory bodies,’ the<br />

statement reads.<br />

‘We also work in accordance with our<br />

contractual obligations to our clients,<br />

and the standards they expect us to<br />

meet. Above all, we treat customers<br />

with whom we come into contact with<br />

respect and assess their individual<br />

needs at the time of our visit.’<br />

In terms of the individual, the<br />

spokesperson added: ‘None of the<br />

inappropriate statements attributed<br />

to our employees in press reports<br />

represent the views of the company,<br />

and are not in accordance with how<br />

we train our people to interact with<br />

consumers.’<br />

The comments follow a Times<br />

reporter who claims to have witnessed<br />

examples of ‘debt collectors’<br />

working for British Gas admitting to<br />

disconnecting heating or electricity on<br />

families when they have been unable<br />

to fit a prepayment meter.<br />

The Credit Services Association<br />

(CSA) to which Arvato Financial<br />

Solutions belongs, told Credit<br />

Management that while it was<br />

monitoring the situation, it had not<br />

as yet received any complaints from<br />

customers of any member firm in<br />

respect of collections issues related to<br />

the installation of pre-payment meters<br />

subsequent to the Times story being<br />

published.<br />

Chris Leslie the CSA’s Chief<br />

Executive, said that allegations must<br />

be taken seriously and that where<br />

incidences of unfair treatment are<br />

identified “it is essential that firms take<br />

steps to respond appropriately and as<br />

soon as possible.”<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 9



POWER<br />

Are the new Corporate Insolvency<br />

measures here to stay?<br />

AUTHOR – Giuseppe Parla<br />

Giuseppe Parla is the Menzies Business Recovery<br />

Director and a Licensed Insolvency Practitioner.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 10


AUTHOR – Giuseppe Parla<br />

AN official review of permanent<br />

measures that were introduced<br />

during the pandemic to protect<br />

businesses that might be at<br />

risk of insolvency, has been<br />

completed. The good news for<br />

ailing businesses is that the measures are here<br />

to stay – but how useful will they be and what do<br />

credit managers need to know?<br />

The Corporate Insolvency and Governance Act<br />

2020 – Final Evaluation Report was published by<br />

the Insolvency Service on 19 December 2022,<br />

based on independent research carried out by<br />

the University of Wolverhampton. The report<br />

includes an assessment of three permanent<br />

measures, which, when they took effect on 26<br />

June 2020, represented the most significant<br />

changes in insolvency law since 2003.<br />

With many businesses facing challenging<br />

headwinds, credit managers need to be alert<br />

to the new measurers and how they may be<br />

impacted. So how useful have the measures<br />

proved in practice?<br />

• Restructuring Plans (Part 26A of the<br />

Companies Act 2006)<br />

A restructuring plan proposal is put to the<br />

creditors when the court orders the convening<br />

of meetings of different classes of the company’s<br />

creditors. Three quarters (75 percent) of<br />

creditors in each class need to agree to the plan,<br />

however the court may nevertheless sanction<br />

or approve the restructuring plan if one of the<br />

creditor classes rejects the proposals, provided<br />

that those creditors will be no worse off in<br />

the event of the relevant alternative, usually a<br />

liquidation.<br />

It was originally thought that uptake of<br />

restructuring plans would be low as they could<br />

be costly and slow to implement, primarily<br />

due to the need for court involvement.<br />

However, they have proved more popular than<br />

expected (12 have been approved to 31 December<br />

2022), and this is evidenced by the fact that they<br />

have also been used by the SME market.<br />

Overall, restructuring plans give businesses<br />

that are struggling a chance to remain viable,<br />

alongside the more typical – administration,<br />

Company Voluntary Arrangement or Scheme<br />

of Arrangement. If a business finds itself as a<br />

creditor in a restructuring plan, it is important<br />

to review the proposal and assimilate what the<br />

outcome will be for them early, to vote and have<br />

their say.<br />

• Company moratorium<br />

The measure known as ‘standalone moratorium’<br />

is designed to protect businesses on a shortterm<br />

basis, initially 20 days, from any legal<br />

action by creditors. The measure is helpful<br />

in that it gives the business and its directors<br />

breathing space to consider their options.<br />

While the moratorium shouldn’t delay a<br />

decision to enter into an insolvency process<br />

where it is clear that creditors’ interests can’t<br />

be met, it could be useful if the business is<br />

expecting the completion of a major contract,<br />

for example.<br />

There have been 40 company moratoriums<br />

obtained to 31 December 2022, meaning that<br />

they are seen as a useful tool and we may<br />

see more of them. For credit managers, it is<br />

important to be aware that if a moratorium is in<br />

place, legal action cannot be started, but to be<br />

mindful that if supply is continued, a ‘super<br />

priority creditor’ status will apply.<br />

• Restrictions on contractual termination<br />

The restrictions are designed to prevent<br />

suppliers from stopping or threatening to stop<br />

providing goods or services to the business after<br />

it has entered an insolvency process.<br />

Before the pandemic, such clauses were used<br />

by insolvency practitioners to stop providers<br />

terminating contracts relating to certain<br />

supplies that were deemed necessary for the<br />

ailing business. This has now been extended to<br />

other services, however for smaller suppliers,<br />

there is the protection of the ‘hardship provision’,<br />

which means they can still issue a demand for<br />

monies owed.<br />

It is too early to say how useful this change<br />

has been as the insolvency numbers have been<br />

low, but credit managers should tread carefully<br />

if continued supply has been requested in an<br />

insolvency. However, it can be made a condition<br />

of the continued supply that the insolvency<br />

practitioner personally guarantees the payment<br />

of any charges in respect of it.<br />

For more information about how these<br />

permanent measures could affect your business,<br />

please contact the business recovery team at<br />

Menzies.<br />

www.menzies.co.uk/helping-you/businessrecovery<br />

❝<br />

The measure is<br />

helpful in that it<br />

gives the business<br />

and its directors<br />

breathing space<br />

to consider their<br />

options. While<br />

the moratorium<br />

shouldn’t delay a<br />

decision to enter<br />

into an insolvency<br />

process where it is<br />

clear that creditors’<br />

interests can’t be<br />

met.<br />

❝<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 11

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Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 12


Mind the<br />

Language<br />

Is it time to change the late payment<br />

conversation?<br />

AUTHOR – Ant Persse<br />

THE announcement of yet another<br />

Government-led review into late<br />

payment, which really means<br />

a review of the treatment of<br />

smaller suppliers by their larger<br />

customers, is both encouraging<br />

and depressing. It’s encouraging, because<br />

it means that the issue has not gone away,<br />

that its importance is recognised, and is still<br />

considered something that needs to be tackled.<br />

It’s depressing for many of the same reasons,<br />

that it’s a problem to which it seems nearly<br />

impossible to find a lasting solution.<br />

I do believe, however, that the language<br />

needs to change. Threatening to punish<br />

transgressors has not worked. Late payment<br />

interest is rarely if ever applied. Positioning<br />

all larger businesses as ‘bad’, and all smaller<br />

companies as angels is similarly not helpful.<br />

There are many examples of large customers<br />

who recognise the value of their supply<br />

chain and have stood by them when times<br />

are tough. There are similarly examples of<br />

small businesses who have treated their own<br />

supplier base appallingly, so if there is a debate<br />

to be had, it should start with more honesty.<br />

While some are fixated with changing<br />

cultures, perhaps our first focus should be<br />

on professionalising the credit management<br />

process. If we were to do more to improve how<br />

businesses transact with one another – and<br />

formulating terms and conditions to which<br />

both parties are agreed from the outset – we<br />

would go some way to addressing many of the<br />

subsequent problems that arise. If we similarly<br />

did more to improve the invoicing, payment<br />

and collection skills of small businesses, we<br />

would no doubt remove another potential area<br />

of conflict and misunderstanding. Increasing<br />

the certainty that a business will be paid is<br />

arguably more important than whether that<br />

payment is forthcoming in 30 or 60 days.<br />

Errors in the system<br />

The conversation is always steered towards<br />

big companies treating their smaller suppliers<br />

badly, but I wonder how many invoices are<br />

not paid simply because they don’t include a<br />

purchase order number, are made out for the<br />

wrong amount, or are simply sent to the wrong<br />

person or company name. If we were to reduce<br />

the number of errors in the system, of which<br />

I expect there are many thousands, perhaps<br />

we could get to the heart of who really is/isn’t<br />

playing fair by their suppliers.<br />

The conversation is similarly steered<br />

towards the negative, about the impact late<br />

payment has on a company’s survival. It’s a<br />

fair conversation to have, but it’s not the only<br />

one out there, and it doesn’t seem to be cutting<br />

through. Perhaps those who advocate turning<br />

the conversation on its head are right? Rather<br />

than focusing on the gloom and doom, why<br />

not promote the benefits of paying on time<br />

or even early? Why not talk about the ability<br />

this gives for businesses to invest in people,<br />

technology and growth? Why not discuss the<br />

wider societal benefit in terms of supporting<br />

local employment, and making the economic<br />

ecosystem more sustainable?<br />

Positive dialogue<br />

I believe that a more positive dialogue needs<br />

to be accompanied by giving small businesses<br />

greater access to (and better promotion of)<br />

funding solutions, that help unlock the cash<br />

tied up in unpaid invoices that they can then<br />

use to invest. Perhaps there is now a real<br />

opportunity for Invoice Finance to play its<br />

part in taking away the payment headache<br />

and improving a small company’s cashflow<br />

position. Perhaps Government, pressure<br />

groups, and our own industry champions<br />

should similarly recognise that there is no<br />

silver bullet to the late payment issue, and that<br />

the stick hasn’t worked.<br />

Culture is a learned behaviour, and only by<br />

doing things differently, and taking a different<br />

approach, can we start learning and adopting<br />

more positive habits.<br />

Ant Persse is Chief Executive of Optimum Finance.<br />

Perhaps Government, pressure groups, and our own industry champions<br />

should similarly recognise that there is no silver bullet to the late payment<br />

issue, and that the stick hasn’t worked.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 13 continues on page 14 >



Will late payment ever be resolved,<br />

or is it a fantasy?<br />

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

THE editor’s column in the last<br />

issue of Credit Management<br />

sparked a flurry of activity and<br />

responses from different parts of<br />

the credit industry, largely (but<br />

not wholly) in support of a need to<br />

change the late payment conversation.<br />

New measures to be discussed by Government<br />

include the traditional menu of reviewing<br />

or beefing up existing measures (the Prompt<br />

Payment Code, the role of the Small Business<br />

Commissioner etc) and a combination of ‘carrot<br />

and stick’.<br />

So what works better? Paul Struthers, UKIA<br />

Managing Director at Sage, believes that many of<br />

the issues around late payment are down to poor<br />

communication and a lack of understanding<br />

between the buyer and the seller.<br />

“Much of the cause of late payments comes<br />

from businesses not understanding the issues<br />

and complexities of their partners and therefore<br />

the impact of paying late,” he explains. “So,<br />

encouraging awareness of that, the role<br />

technology plays and making it as easy as<br />

possible to pay are key points.”<br />

Encouraging results<br />

Recent Sage research suggests encouraging<br />

results. It found digital advances have delivered<br />

a steady and significant improvement in<br />

payment times; the average time for an invoice<br />

to be paid falling from 81 days in 2010 to around<br />

36 days between 2020 and 2021, indicating the<br />

impact technology can have in solving the issue.<br />

“Disputes are one of the leading causes of late<br />

payments,” Paul continues. “Almost 70 percent<br />

of small businesses have at least one commercial<br />

dispute and 72 percent of disagreements are<br />

about payment.”<br />

Government-backed LawtechUK recently<br />

oversaw proof of concept design for an online<br />

dispute resolution platform for SMBs. Once<br />

built, the platform can be integrated into<br />

invoicing and accounting tools, enabling push<br />

button dispute resolution.<br />

Todd Davison, Managing Director of Purbeck<br />

Personal Guarantee Insurance, appears firmly<br />

in the ‘stick’ camp. Recent research by the<br />

personal guarantee insurance provider to<br />

small business owners found that rather than<br />

planning for growth, 52 percent of small firms<br />

are just focused on ‘keeping on an even keel’ in<br />

the year ahead.<br />

“After a resurgence in Covid infections and<br />

Brexit, late payment was a top concern for small<br />

businesses last year,” Todd explains. “We’re<br />

now in very different waters and it’s vital big<br />

❝<br />

“While the<br />

debate should<br />

highlight both<br />

aspects, it usually<br />

makes sense to<br />

begin with the<br />

carrot, and then<br />

fall back on the<br />

stick.”<br />

– Anthony Venus<br />

❝<br />

businesses are properly penalised for the harm<br />

they cause when they pay their small suppliers<br />

late.<br />

“Cashflow problems not only stymie growth,<br />

they also force some small firms into taking on<br />

finance just to keep their heads above water.<br />

This isn’t right or fair. We are all in the same<br />

boat right now and big firms need to find more<br />

ethical ways of managing their own cashflows<br />

rather than taking the easy route of delaying<br />

payment to the time it suits them, rather than<br />

the time stipulated by their supplier.”<br />

Power dynamics<br />

Anthony Venus, Chief Strategy and Product<br />

Officer at Quadient, believes that whether a<br />

business is incentivised to pay, or penalised<br />

for not doing so, everything really depends on<br />

the power dynamic: “If the customer or buyer<br />

is large and the supplier is small, the advantage<br />

will be with the buyer – and vice versa. When<br />

both sides are equal, the question becomes who<br />

is the most mission-critical?”<br />

Anthony believes the best way to address<br />

this power dynamic and encourage ontime<br />

payments is focusing on the customer<br />

relationship: “Making all administrative<br />

aspects of the payment process as smooth as<br />

possible and ensuring that the customer feels<br />

well treated can make a world of difference for<br />

payment times,” he continues.<br />

“Customers who are satisfied and delighted<br />

are far more likely to pay on time. In turn,<br />

customers who do pay on time can be rewarded<br />

with discounts for early payment, or better<br />

payment terms. Businesses often forget that<br />

the finance team is the front line of customer<br />

services, and so can have a huge impact on<br />

satisfaction and payment.”<br />

When it comes to whether we should be<br />

talking up the benefits of paying on time, as<br />

opposed to the negative impact of paying late,<br />

Anthony is perhaps sitting on the fence: “While<br />

the debate should highlight both aspects, it<br />

usually makes sense to begin with the carrot,<br />

and then fall back on the stick,” he adds.<br />

“We should focus on the benefits of potential<br />

discounts, improved payment terms, or simply<br />

better supplier-customer relations before<br />

discussing the possibilities of fines, additional<br />

fees for late payments, or reputational damage.”<br />

In terms of the three things he would do to<br />

solve the late payment crisis, Anthony is on surer<br />

ground: “First, I’d make overdue fees a standard<br />

part of all contracts. Under UK law, if a private<br />

sector invoice is more than 30 days overdue then<br />

the business can claim Bank of England interest<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 14


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

❝<br />

“According to the 2022 late payments<br />

report, SMEs that follow up with 90 percent<br />

or more of their invoices are the most likely<br />

to get paid within a week of their invoice due<br />

date. Additionally, it’s not enough to simply<br />

email your client once and expect payment.”<br />

– Sonia Dorais<br />

❝<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 15<br />

continues on page 16 >


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

base rates plus eight percent and debt recovery<br />

costs. However, too often these late fees<br />

aren’t claimed, let alone paid. Standardising<br />

contracts, with overdue fees automatically<br />

added to invoices and making clear what’s due<br />

at each month past the payment date, will make<br />

it easier to lay out organisations’ obligations.<br />

“Second, I’d strengthen the Prompt Payment<br />

Code. While a step in the right direction, a<br />

voluntary code is still too easy to ignore. Instead,<br />

it should be part of a larger Government code<br />

on professional and ethical business practices<br />

that in turn directly relates to government<br />

business or tenders. For example, if only<br />

companies that meet the Prompt Payment Code<br />

can bid for Government contracts, there will be<br />

a huge incentive to put best of class practices in<br />

place – which will then apply to all supplier and<br />

customer relations.<br />

“Third, encourage automation. We all<br />

know automating the invoicing process<br />

helps ensure payments are made on time, as<br />

well as improving customer relations and<br />

reducing manual data entry. But many<br />

businesses are missing out on these benefits<br />

because of the upfront costs of adopting<br />

automation. Tax incentives to invest in software<br />

for automating invoices will make these tools a<br />

necessity.”<br />

The digital economy<br />

Paul is similarly sure footed. He says that<br />

insights from Sage suggest that a strong policy<br />

framework and investment in the digital<br />

economy could make a real difference. He<br />

would seek to incentivise investment in<br />

technology; reduce risk, and adopt the wider use<br />

of smart contracts: “We know that technology<br />

helps businesses get paid on time, so it is critical<br />

that small businesses are encouraged to invest<br />

in technology to help them manage their<br />

cashflow by digitising the invoice payment<br />

process,” he says.<br />

“Fintech innovation and a strong digital policy<br />

framework means small businesses can access<br />

finance and protect themselves from late<br />

payers more conveniently and easily, while<br />

Smart contracts can help automate processes;<br />

a contract could automatically generate an<br />

invoice once a service is provided and extract<br />

payment when the invoice becomes due.”<br />

Sonia Dorais from Chaser, a previous CI<strong>CM</strong><br />

British Credit Awards winner, believes that best<br />

practice credit management is key.<br />

“Confronting late payers can be<br />

uncomfortable, but I’ve seen that when it<br />

comes to reducing bad debts, proactiveness<br />

really does pay,” she explains. “According to the<br />

2022 late payments report, SMEs that follow up<br />

with 90 percent or more of their invoices are the<br />

most likely to get paid within a week of their<br />

invoice due date. Additionally, it’s not enough<br />

to simply email your client once and expect<br />

payment. Research at Chaser has found that it<br />

takes 2.6 payment reminders on average before<br />

an invoice gets paid.”<br />

Flexibility, she says, is also key: “One<br />

size certainly doesn’t fit all when it comes<br />

to payments. From your suppliers to your<br />

customers, all businesses have a preferred way<br />

of paying. If SMEs can offer their customers<br />

greater choices and varied options for payment,<br />

they are more likely to meet their customers’<br />

needs and receive payment faster. By adding<br />

multiple payment options such as bank transfer,<br />

direct debit, and open banking options to their<br />

receivables process, small businesses can help<br />

reduce late payments from customers.<br />

“Furthermore, with the current cost of<br />

living crisis and challenging macroeconomic<br />

conditions, customers are likely struggling with<br />

cash flow too. By offering greater flexibility<br />

through alternative payment arrangements<br />

such as instalment plans or early payment<br />

discounts, you can help foster stronger<br />

customer relationships by supporting them<br />

through a financially challenging period.”<br />

Process and systems<br />

Getting paid on time is not just about process or<br />

behaviours. It is also about systems: “In order<br />

to reduce late payments, businesses need to<br />

be confident about who owes them what, and<br />

when. Without up-to-date data and the right<br />

systems in place, many businesses face a lack<br />

of confidence in chasing up what they are<br />

wed. In fact, 25 percent of businesses admit<br />

to being unable to stay on top of their late<br />

payments every month due to disconnected<br />

systems.<br />

“By having effective bookkeeping and bank<br />

reconciliation processes in place, supported<br />

by technology and automation," says Sonia,<br />

“businesses can ensure they are always working<br />

with the right data and can reduce their time<br />

spent on manual work. Research shows that<br />

businesses using software to support their<br />

credit management process are three times<br />

more likely to get an invoice paid before the due<br />

date than those not using software - so putting<br />

the right systems in place can truly help you<br />

tackle late payment problems at your business.”<br />

Paul agrees that technology has a huge<br />

role to play in reducing payment times: “By<br />

making processes easier and less cumbersome,<br />

third parties can be encouraged to pay up<br />

and small businesses can spend less time on<br />

admin. For instance, using things like cloud<br />

accounting products that are affordable and<br />

easy to implement will help with automation<br />

and preventing errors. small businesses can<br />

also better forecast cashflow, target late payers,<br />

and speed things up with ‘click to pay’<br />

functionality.”<br />

Among the most effective credit management<br />

techniques, Paul says, are a range of automated<br />

solutions: “Automated invoicing systems have<br />

become widely available and exist either as<br />

standalone applications or as an element of<br />

commercial or cloud accounting software,”<br />

❝<br />

‘‘Research shows<br />

that businesses<br />

using software<br />

to support their<br />

credit management<br />

process are three<br />

times more likely to<br />

get an invoice paid<br />

before the due date<br />

than those not using<br />

software - so putting<br />

the right systems<br />

in place can truly<br />

help you tackle late<br />

payment problems at<br />

your business.”<br />

– Paul Struthers<br />

❝<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 16


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

he explains. Small businesses can now send<br />

invoices in real time via email or SMS as soon<br />

as a transaction is complete. With e-invoicing,<br />

invoices are sent from one accounting system to<br />

another as a digital exchange. “Software sending<br />

automated emails and SMS messages are also<br />

useful. Business owners can avoid chasing late<br />

payments personally which has historically<br />

been a hurdle for those keen to protect client<br />

relationships. Solutions for sectors with<br />

specialised functionality and applications are<br />

also an emerging trend, such as Brightpearl by<br />

Sage for retail businesses.”<br />

Gary Brown, Founder of Debt Register, the<br />

winner of the <strong>2023</strong> BCA for Credit & Collections<br />

Fintech similarly sees technology as at least part<br />

of the solution.<br />

“I think we need to be honest in the debate<br />

around late payment and agree we will never<br />

change a culture, but that we can give businesses<br />

the tools they need to make payments between<br />

companies easier and more productive,” he<br />

explains.<br />

Invoice basics<br />

Gary agrees that in his experience, many<br />

invoices aren’t paid because of simple process<br />

errors: “Sometimes invoices aren’t paid because<br />

they can’t be paid, because the details on the<br />

invoice are wrong and so disappear into the<br />

system,” Gary explains. “We also know that on<br />

many occasions, an invoice isn’t paid for the<br />

simple reason it never reached the right person,<br />

or the person who did have responsibility has<br />

since moved on.”<br />

Gary believes that this is where a Fintech<br />

like Debt Register can help: “The system is<br />

completely autonomous and uses Artificial<br />

Intelligence (AI) such as email recognition to<br />

prevent final notices from being sent to ‘dead/<br />

gone-away’ email addresses or the wrong<br />

contacts and notifies a credit controller of any<br />

anomalies. Debt Register enables debts that<br />

might have been normally written off to be<br />

settled in minutes, while the money collected is<br />

sent direct into client bank accounts.”<br />

In terms of whether bigger companies should<br />

be incentivised or penalised, Gary tends to sit<br />

in the latter camp: “It is possible to combine<br />

technology with a ‘stick’ as in the case of Debt<br />

Register,” he explains. “With our system, there<br />

is a consequence for those businesses who<br />

fail to pay a supplier invoice that is not in any<br />

way in dispute. They are reported to the credit<br />

reference agencies which could, in turn, impact<br />

their credit rating. In our experience, this<br />

usually has the desired result.”<br />

Creative solutions<br />

Andrew Birkwood, Founder and Chief Executive<br />

of Azzurro Associates, thinks that any initiative<br />

from Government to change attitudes to late<br />

payment should be applauded: “But a cultural<br />

shift will take time, when more immediate<br />

strategies are required to address the liquidity<br />

❝<br />

“Many small<br />

businesses and<br />

business owners<br />

are great at<br />

what they do,<br />

and selling their<br />

product or service,<br />

but not always so<br />

well equipped or<br />

skilled in terms of<br />

administration.<br />

They are also often<br />

time poor.’’<br />

– Sue Chapple<br />

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

❝<br />

issue,” he says. “As the former interim Small<br />

Business Commissioner Philip King FCI<strong>CM</strong> has<br />

previously said ‘….at times like these we need<br />

creative ideas’, and that includes companies<br />

turning a potential bad debt write off into<br />

positive cashflow by selling its beyond-term<br />

invoices for cash.”<br />

Azzurro Associates helps service the needs of<br />

typically larger companies struggling to collect<br />

higher volumes of low value debt – part of the<br />

‘late payment’ debate that is often overlooked:<br />

“Typically the conversation around late payment<br />

settles on the treatment of smaller businesses<br />

by their larger customers,” he says, “but larger<br />

companies also suffer from late payment issues<br />

which can significantly impact their cashflow.”<br />

To this end Andrew says that Azzurro is<br />

already working with a number of businesses<br />

across a diverse range of sectors to head off a<br />

potential credit ‘crunch’.<br />

“We are interested in buying unpaid invoices<br />

for prices up to 90 percent of their outstanding<br />

balance, depending on their age and the credit<br />

profile of the customer, and we’re also happy to<br />

share a proportion of the collections achieved<br />

with the selling company. We are, in effect<br />

creating a new ‘category’ of debt management<br />

solutions to support businesses through these<br />

unprecedented times and beyond.”<br />

Curate’s egg<br />

Sue Chapple FCI<strong>CM</strong>, CEO of the CI<strong>CM</strong>, believes<br />

that the issue of late payment is something of a<br />

curate’s egg, and while it may never be solved<br />

completely, best-practice credit management<br />

has a huge part to play in reducing its impact:<br />

“We can help many small businesses alleviate<br />

their late payment issues through good credit<br />

management,” she explains.<br />

“Many small businesses and business owners<br />

are great at what they do, and selling their<br />

product or service, but not always so well<br />

equipped or skilled in terms of administration.<br />

They are also often time poor. But there are also<br />

many stories, true and apocryphal, of small<br />

businesses invoicing the wrong company name<br />

or address, or the wrong amounts, or failing<br />

to include basic references such as Purchase<br />

Orders that would accelerate payment.”<br />

She says the more that small businesses<br />

understand about their customer’s processes, the<br />

better their chances of getting paid: “Speaking<br />

to the customer in advance, understanding their<br />

invoice and payment process, and conforming<br />

to that process can make all the difference,” she<br />

continues. “At the very least, it will reduce the<br />

likelihood of an invoice becoming a dispute,<br />

and make it clearer show you should/should not<br />

be doing business with.<br />

“Small business pressure groups are quite<br />

right to call out bad practice among large<br />

suppliers. They could also benefit from engaging<br />

with organisations such as ourselves who are<br />

committed to helping those small businesses<br />

processes.”<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 17

Outstanding achiever<br />

Credit Management profiles David Scottow FCI<strong>CM</strong>,<br />

winner of the Outstanding Achievement Award at this<br />

year’s CI<strong>CM</strong> British Credit Awards.<br />

DAVID Scottow FCI<strong>CM</strong>, has been<br />

a prolific character in the credit<br />

management, debt recovery,<br />

and enforcement industries<br />

for more than four decades,<br />

recovering countless millions<br />

for his clients, creating learning organisations,<br />

and positively impacting the careers and<br />

personal lives of numerous colleagues. He has<br />

selflessly used his status to promote diversity<br />

and encourage people from all backgrounds to<br />

achieve excellence.<br />

As a true ‘poacher turned gamekeeper,’ David’s<br />

professional career started in accountancy<br />

and credit control, giving him unique insight<br />

into clients' businesses. He entered into debt<br />

recovery with Lee & Priestley, moving after 13<br />

years to Shergroup, which pioneered services<br />

connected to the world of Sheriffs, and then<br />

Incasso, the debt recovery subsidiary of<br />

Cobbetts. He subsequently joined DWF, then a<br />

regional law firm operating predominantly in<br />

Liverpool and Manchester.<br />

Here David was a founding leader of the<br />

Recoveries Teams for all UK jurisdictions and<br />

for providing a holistic service to DWF's UK<br />

Client-base. The Recoveries Department swiftly<br />

centralised all commercial and consumer debt<br />

collection, debt litigation, enforcement, and<br />

insolvency actions, and David, rising to Senior<br />

Director and National Head of Recoveries, comanaged<br />

a department of approximately 40<br />

people. By 2019 the firm became the largest law<br />

firm on the London Stock Exchange, with 30<br />

offices across the world.<br />

Imbued with Integrity<br />

“David was extremely determined and<br />

hardworking,” says Graham Dagnall, Partner,<br />

DWF Solicitors. “He was pretty much<br />

responsible, with the support of his senior<br />

management team, for driving the growth of<br />

the Recoveries team to unprecedented success,<br />

and that included navigating some very choppy<br />

waters where the external environment was<br />

extremely volatile.<br />

“Yet during more than ten years working<br />

together, I can honestly say that though we did<br />

not always agree on everything and quite often<br />

actively disagreed, we never exchanged a cross<br />

word. As well as being a highly respected work<br />

colleague, I am also very proud to say David<br />

has been a great friend, too, providing valuable<br />

life insights. I learned a great deal from him in<br />

terms of his approach, his ability to work with<br />

❝<br />

“He was pretty<br />

much responsible,<br />

with the support<br />

of his senior<br />

management<br />

team, for driving<br />

the growth of the<br />

Recoveries team<br />

to unprecedented<br />

success, and that<br />

included navigating<br />

some very choppy<br />

waters where the<br />

external environment<br />

was extremely<br />

volatile.’’<br />

– Graham Dagnall<br />

❝<br />

people, line manage them, invest in talent, and<br />

still be a friend. I can unequivocally say I have<br />

not known a more committed, deeply caring<br />

individual who espouses and lives by a very<br />

clear set of high moral standards that his team<br />

and the business all benefitted from.”<br />

David lives with integrity and leads by<br />

example. He is a ‘career paralegal,’ and it is a<br />

sad indictment of the legal profession that some<br />

paralegals still feel like second-class citizens at<br />

their law firms. David, however, maintained and<br />

strengthened trust relationships with people on<br />

all levels, whether qualified or unqualified, by<br />

valuing loyalty, treating smart people smart,<br />

showing people respect, learning from others,<br />

and exhibiting fairness in the way people are<br />

treated.<br />

Totally devoted<br />

David created a learning organisation,<br />

continuously investing in training and<br />

upgrading of skills. Although in full-time<br />

employment, in his spare time, he promoted<br />

the CI<strong>CM</strong> to encourage learning among the<br />

Institute's members and those aspiring to join,<br />

such as students at Park Lane College, Leeds.<br />

Alan J Smith FCI<strong>CM</strong>, Chair & Board Director<br />

of the High Court Enforcement Officers<br />

Association, recalls: “I had the pleasure of<br />

working with David in my role as Chair of the<br />

Yorkshire Ridings branch of the CI<strong>CM</strong> when<br />

David was Vice Chair. He ran several branch<br />

events and annual conferences, culminating<br />

each year in the annual charity ball.”<br />

He was equally devoted to his clients,<br />

supporting them with consultations behind the<br />

scenes or on the coalface, wherever he was most<br />

needed. And they are to him. Philip Holbrough<br />

MCI<strong>CM</strong>, Member of the CI<strong>CM</strong> Executive Board<br />

& Chair of the Yorkshire Ridings Branch says:<br />

“David is the only legal recoveries professional<br />

that I trust. He understands my business<br />

requirements and my desire for results. He is<br />

very easy to deal with and hugely efficient.”<br />

Debbie Tuckwood, Chief Advisor (Professional<br />

Development) at the CI<strong>CM</strong> summarises his<br />

devotion, telling Credit Management: “David is<br />

well recognised in the industry as a ‘go to person’<br />

on credit management, legal, enforcement and<br />

insolvency matters. He played a key role in<br />

introducing CI<strong>CM</strong> qualifications and helped<br />

the education team in delivering the Level 5<br />

Diploma in Credit Management. David’s work<br />

in establishing professional standards and best<br />

practice in the industry has been exemplary.”<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 18


❝<br />

“David is well recognised in the industry as a ‘go to person’ on credit management,<br />

legal, enforcement and insolvency matters. He played a key role in introducing CI<strong>CM</strong><br />

qualifications and helped the education team in delivering the Level 5 Diploma in Credit<br />

Management. David’s work in establishing professional standards and best practice in the<br />

industry has been exemplary.”<br />

DE&I Champion<br />

As well as client services, David has been<br />

at the forefront of driving the Diversity,<br />

Equity & Inclusion agenda. Whilst most<br />

of the UK is relatively accepting of the<br />

LGBTQ+ community now, this was not<br />

always the case. As a gay man, earlier in<br />

his career, David had to hide his private<br />

life from colleagues and clients for fear<br />

of homophobia, exclusion, or being<br />

overlooked for valuable promotions.<br />

Increasingly, businesses have pledged<br />

support to employees, irrespective of<br />

their sexuality. Within the Recoveries<br />

Department at DWF, he established a<br />

diverse and complementary management<br />

team and workforce, making sure to<br />

have people who differed in ability,<br />

background, and personality but with<br />

complementary skills. David has worked<br />

hard to empower people, establishing<br />

clear boundaries of what is allowed and<br />

what is not and establishing a climate<br />

of freedom for individuals to develop<br />

their natures and express their diverse<br />

qualities.<br />

In the wider community, David is an<br />

LGBTQ+ diversity champion and has been<br />

actively involved in Stonewall, Friends of<br />

Dorothy, and the White-Collar Club.<br />

Paul Maddock, Vice Chair of the Law<br />

Society's LGBT+ Division, says that David<br />

is a real standout role model in the<br />

LGBT+ community: “From his work with<br />

charities such as Friends of Dorothy to<br />

his mentoring of junior practitioners,<br />

David lives and breathes improving<br />

inclusion in the profession. I have always<br />

been moved by David's kindness and<br />

ability to champion those who struggle to<br />

champion themselves – a real star and a<br />

fantastic gentleman!”<br />

A Legacy of Leaders<br />

Perhaps David's greatest achievement is<br />

his legacy. He developed and maintained<br />

a performance-driven culture within the<br />

DWF Recoveries Department he founded<br />

almost 14 years ago. Throughout this<br />

time, he has identified emerging talent,<br />

and recognising their worth created<br />

leadership development opportunities,<br />

and created a pipeline for future leaders.<br />

David was particularly proud of the<br />

Department being awarded the Legal<br />

Provider of the Year Award in 2022.<br />

What stands out and makes David<br />

exceptional, according to his colleague,<br />

Kevin Feehan, Senior Director, DWF<br />

Solicitors, is his passion for developing<br />

people, his dedication and loyalty to his<br />

team and the relationships he develops:<br />

“He has a talent for identifying peoples’<br />

skills and ensuring those skills are<br />

recognised and developed,” Kevin says.<br />

“He mentors individuals in his teams,<br />

helping them develop and build a career<br />

in debt recovery. Under his tutelage I<br />

became a Senior Director and David's<br />

support and encouragement have been<br />

crucial in that development. I am<br />

not alone in developing a friendship<br />

with David whilst working for him,<br />

which will long outlast the time we work<br />

together.”<br />

With thanks to Kevin Feehan of DWF.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 19



Why include price escalation clauses<br />

in construction contracts?<br />

AUTHOR – Jessica Gates and Seumas Cram<br />

THE aftermath of a global<br />

pandemic has led to<br />

cost uncertainty in the<br />

construction industry,<br />

exacerbated by ongoing<br />

global conflict, surging<br />

global energy prices, sanctions, Brexit,<br />

and a looming recession. In particular,<br />

the knock-on effects of a downturn in the<br />

current economic climate have presented<br />

themselves in the form of increased costs<br />

of materials due to material shortages<br />

and longer lead delivery times, reduced<br />

workforces, and supply chain issues.<br />

The ban around the use of red diesel in<br />

heavy construction plant machinery in 2022<br />

has also contributed to making projects<br />

more costly for contractors to deliver.<br />

Additionally, surging rates of inflation in<br />

the UK and other developed economies have<br />

prompted the Bank of England to repeatedly<br />

raise interest rates during 2022, raising the<br />

costs of borrowing for parties looking to<br />

fund construction projects by way of debt<br />

financing.<br />

Taken as a whole, these factors have<br />

created uncertainty around the financial<br />

viability of existing construction projects,<br />

potentially increasing the risk of contract<br />

disputes. With regard to future construction<br />

projects, it’s expected that well-advised<br />

parties will pay greater attention to<br />

the manner in which construction<br />

contracts allocate the risks of wage and<br />

price inflation. While contractual price<br />

escalation provisions may be regarded as<br />

less important during periods of wider<br />

economic stability, the current economic<br />

environment highlights the importance of<br />

ensuring that contracts contain adequate<br />

pricing mechanisms in order to enable<br />

the parties to perform their respective<br />

obligations.<br />

Cost uncertainty for contractors<br />

Unless otherwise agreed, the default<br />

position for the risk of delay and cost impact<br />

as a consequence of material shortages and<br />

inflationary price increases is one which is<br />

primarily borne by contractors on projects.<br />

For example, liquidated damages could<br />

be levied against a contractor in the event<br />

that materials are delayed. As a result,<br />

contractors may find themselves incurring<br />

significant losses by being tied into a longterm<br />

fixed lump sum or remeasurement<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 20


AUTHOR – Jessica Gates and Seumas Cram<br />

❝<br />

A price escalation clause (or 'cost escalation clause') is a contractual mechanism that<br />

facilitates the contractor passing on increased overheads to the employer. The contractor<br />

retains the ability to adjust the contract price in line with the fluctuating costs of raw<br />

materials in the market and other elements of the works at the time.<br />

contractual arrangements which are no<br />

longer financially viable over the course<br />

of a project.<br />

If a contractor is forced to continue<br />

the contract at a loss, inevitably this is<br />

not going to be in the best interests of an<br />

employer either. Contractor insolvency<br />

part way through a project will result in<br />

an employer having to pay more than<br />

originally budgeted.<br />

There are however contractual<br />

mechanisms available to safeguard a<br />

contractor’s position. In particular, there<br />

is a rising trend of contractors seeking<br />

to include price escalation clauses in<br />

construction contracts. The purpose of<br />

such a provision is to transfer some of<br />

the financial risk on a project so that it is<br />

absorbed by the employer.<br />

What are price escalation clauses?<br />

A price escalation clause (or 'cost<br />

escalation clause') is a contractual<br />

mechanism that facilitates the contractor<br />

passing on increased overheads to the<br />

employer. The contractor retains the<br />

ability to adjust the contract price in line<br />

with the fluctuating costs of raw materials<br />

in the market and other elements of the<br />

works at the time.<br />

Price escalation clauses can be<br />

mutually beneficial for both employers<br />

and contractors, serving to mitigate the<br />

risk of disputes later down the line and<br />

in turn preserving amicable commercial<br />

relationships between the parties. The<br />

inclusion of price escalation clauses in<br />

contracts may result in lower bids being<br />

tendered for works by contractors from<br />

the outset. In the absence of a price<br />

escalation clause a contractor may inflate<br />

the proposed contract sum to compensate<br />

for the lack of cost certainty.<br />

Bespoke drafting to maximise cost<br />

effective solutions<br />

Careful consideration should be given<br />

to the reasonable risk allocation of costs<br />

in construction contracts and to parties’<br />

specific requirements on projects. Clear<br />

drafting is essential. In particular, thought<br />

should be given to the requirements<br />

for notification of contract adjustments<br />

such as the method, timeframe, and<br />

level of supporting particulars required.<br />

Some industry standard form contracts<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 21<br />

incorporate optional or standard cost<br />

saving mechanisms:<br />

JCT Design and Build contains a<br />

fluctuations provision which allows<br />

an adjustment to the contract sum<br />

for fluctuations in the market price<br />

for labour and material. One of the<br />

commercial purposes of the fluctuations<br />

provisions is to provide some protection<br />

for contractors working on construction<br />

projects which might take several years<br />

to complete. On smaller projects with a<br />

shorter anticipated duration of works,<br />

fluctuations provisions will usually not be<br />

used, placing the risk of price increases<br />

for labour and materials solely with<br />

the contractor. Where no fluctuations<br />

provisions have been incorporated into<br />

a building contract, the contractor must<br />

ensure that it has accounted for any<br />

anticipated price increases for labour<br />

and materials within the contract sum as<br />

it will have no contractual right to adjust<br />

the contract sum during the course of the<br />

project.<br />

Option A is the standard position and<br />

provides flexibility to revise the contract<br />

sum in the event of changes to rates of tax<br />

or duties payable in respect of the labour<br />

and materials required to complete<br />

the contractor's works. Parties should<br />

note that Option A does not provide for<br />

any adjustment to the contract sum to<br />

reflect the effects of inflation or other<br />

factors resulting in increased labour and<br />

materials costs.<br />

Where Option B is selected, the<br />

contractor will be reimbursed both in<br />

respect of changes to tax and duties<br />

affecting labour and materials (as in<br />

Option A), and additionally where rates of<br />

wages and other related expenses affecting<br />

the cost of labour increase during the<br />

course of a project. Additionally, Option<br />

B allows for adjustment of the contract<br />

sum where the price of required materials<br />

and utilities (such as electricity) increase<br />

during the course of the project.<br />

Lastly, where Option C applies the<br />

contract sum will be adjusted in<br />

accordance with the JCT Formula Rules<br />

that are current at the base date.<br />

The relevant fluctuations option must<br />

be stated within the contract particulars<br />

in order to take effect.<br />

continues on page 22 >


AUTHOR – Jessica Gates and Seumas Cram<br />

It should be noted that price escalation<br />

clauses can also account for a decrease in the<br />

contract price where costs fall. For this reason,<br />

a fluctuation provision is also known as a ‘rise<br />

and fall’ mechanism. In this way, the employer<br />

could benefit from potential cost savings too.<br />

Alternatively, where the cost of materials<br />

increases or they are unavailable, an adjustment<br />

to the contract price could be agreed by way<br />

of a variation but this does not automatically<br />

guarantee entitlement to additional costs for a<br />

contractor. A contractor’s entitlement to price<br />

increases for raw materials could also be dealt<br />

with as a relevant matter under the contract.<br />

JCT Prime Cost Building Contract is an example<br />

of a standard-form cost reimbursable contract,<br />

which is designed for use where urgent or<br />

immediate works are required, and where the<br />

exact extent and design of the required works<br />

is not known. In practice, this type of contract<br />

may be used in connection with urgent repair or<br />

building alteration work.<br />

Under a cost reimbursable contract, instead<br />

of agreeing a fixed contract sum, the contractor<br />

is entitled to be paid the actual cost of labour,<br />

plant and materials, in addition to its overhead<br />

and profits. This creates an obvious risk for the<br />

employer, as in the absence of a fixed contract<br />

price, there is no certainty as to its overall cost<br />

liability to the contractor during the course<br />

of the project. As a result, the financial risks<br />

associated with the construction project will sit<br />

almost exclusively with the employer under a<br />

cost reimbursable contract. For this reason, cost<br />

reimbursable contracts are rarely considered by<br />

employers, and would usually be inappropriate<br />

for any construction works which do not require<br />

an immediate start date.<br />

NEC4 Engineering and Construction Contract<br />

options A, B, C and D provide a secondary<br />

optional provision which caters for the employer<br />

agreeing to take on the risk of inflation - Option<br />

X1. This option has a wide application but can<br />

be restricted to apply to prices of specific raw<br />

materials only.<br />

Additionally, clause 16 allows a contractor<br />

to suggest an alternative solution - i.e., value<br />

engineering, which could in turn reduce the<br />

cost of the works. The employer determines the<br />

amount of value engineering percentage in the<br />

tender documents that is used in calculating the<br />

reduction in prices.<br />

NEC Option C includes a mechanism in a<br />

‘target cost’ contract where the cost saving<br />

or overrun is calculated and split between<br />

the parties in accordance with an agreed<br />

formula. This is known as the ‘pain/gain share’<br />

mechanism.<br />

In Option E (‘Cost Plus’), the default position<br />

is that the employer is responsible for the risk of<br />

inflation. The contractor is reimbursed for the<br />

actual costs it incurs for work carried out plus<br />

the allowances for overheads and profit.<br />

In keeping with the collaborative approach of<br />

the NEC suite of contracts, a contractor could<br />

utilise the early warning process to notify the<br />

employer of cost increases, whilst maintaining<br />

an amicable commercial relationship.<br />

Alternatively, a contractor could claim<br />

additional costs by way of a compensation event<br />

but there is no automatic entitlement.<br />

Fidic Red Book 2017 includes a schedule of cost<br />

indexation - a table of adjustment data - and an<br />

optional price escalation clause - ‘Adjustments<br />

for Changes in Costs’ - for rises and falls in the<br />

cost of labour, goods and other inputs to the<br />

works.<br />

Fidic Silver Book 2017 contains a<br />

straightforward fluctuations mechanism. It says<br />

that “the amounts payable to the contractor<br />

shall be adjusted for rises or falls in the costs<br />

of labour, goods and other inputs to the works,<br />

by the addition or deduction of the amounts<br />

calculated in accordance with the schedule(s)<br />

of cost indexation in the particular conditions”.<br />

Other contractual or commercial options<br />

There are other options for employers and<br />

contractors to consider when seeking to<br />

control cost. These include suspension or even<br />

termination if material prices increase by a<br />

certain amount. Appropriate advice should be<br />

taken before taking such action; it's likely to be<br />

cheaper and far less disruptive in the long term<br />

for an employer to support a contractor rather<br />

than terminate the contractor’s engagement.<br />

It's also possible to cap an employer’s exposure<br />

with a maximum limit of contract adjustments<br />

or frequency to prevent contractors having<br />

limitless recovery. And then there’s the sourcing<br />

of materials from alternative suppliers where<br />

specified materials are difficult to procure or<br />

unavailable, or sourcing materials locally to<br />

reduce transportation costs.<br />

Lastly, parties should ensure timelines are<br />

more realistic given supply chain challenges;<br />

consider that pre-purchasing and stockpiling<br />

materials at the outset of a project provides<br />

greater cost certainty and protection against<br />

market fluctuations during the course of the<br />

project; purchase materials directly from the<br />

supplier to avoid cost mark ups by contractors;<br />

and put in place bespoke drafting for provisional<br />

sums to cover price increases and provide<br />

greater flexibility.<br />

Summary<br />

It’s a fact of life that costs are increasing and<br />

firms in the construction sector need to plan<br />

ahead to mitigate the effects of inflationary<br />

price increases. Time spent considering the<br />

best option before signing a contract is a wise<br />

investment.<br />

Jessica Gates and Seumas Cram are associates<br />

in the Construction & Engineering team at<br />

Walker Morris LLP.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 22

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The eco-friendly<br />

New Zealand makes<br />

a strong case for UK<br />

exporters.<br />

Mount Taranaki / Mount<br />

Egmont, Taranaki, New Zealand.<br />

Looking beyond the Haka<br />

AUTHOR – Adam Bernstein<br />

FOUR years ago, the actor and<br />

comedian Griff Rhys Jones<br />

filmed a four-part travelogue<br />

on a journey he took from the<br />

northern tip of New Zealand<br />

to the southernmost part<br />

of the country. Encountering a land of<br />

huge opportunity and stunning scenery it<br />

quickly became apparent that there’s more<br />

to New Zealand than Māori culture and<br />

26m sheep.<br />

Honey, whale watching, kiwi birds (the<br />

country’s national emblem), earthquakes<br />

and volcanoes, the former of which<br />

did a frightening amount of damage to<br />

Christchurch in 2011 – there’s a lot to<br />

New Zealand. A little larger than the UK,<br />

a little smaller than Japan and nearly<br />

1/36th the size of the US, New Zealand is<br />

located in the South Pacific Ocean<br />

around 1,000 miles east of Australia, 1,100<br />

miles south of New Caledonia, 1,700 miles<br />

south of Fiji, and 1,500 miles south of<br />

Tonga.<br />

With little pre-history, New Zealand was<br />

only settled by Polynesians around 1,300<br />

who subsequently developed the Māori<br />

culture. It wasn’t until 1642 and Dutchman<br />

Abel Tasman that Europe first came across<br />

the land. British captain James Cook made<br />

landfall in 1769 followed by whalers, sealers<br />

and traders. By 1840, Māori chiefs fearing<br />

French takeover sought British protection<br />

and signed the Treaty of Waitangi with<br />

Britain afterward declaring sovereignty.<br />

For a while in the 1890s New Zealand<br />

contemplated joining independence<br />

talks with Australia. However, that was<br />

abandoned and dominion status came in<br />

1907 followed by full independence in 1947.<br />

It should be said that many of the land<br />

disputes that exist in the present day follow<br />

on from misunderstandings of the treaty.<br />

While some 500 chiefs signed it, the CIA<br />

World Factbook says that many did not.<br />

Further, the British thought that the Māoris<br />

had ceded control while translations<br />

appeared to have given the British less<br />

control.<br />

Demographics<br />

Being a size close to that of the UK and<br />

having a population of around 5.1m, New<br />

Zealand would be considered sparsely<br />

populated even if its people were uniformly<br />

spread over the country.<br />

But they’re not.<br />

As Clarke Group Property Management<br />

notes, New Zealand is mainly urban with 90<br />

percent living in towns and cities. It details<br />

that Auckland has some 1.6m people,<br />

Christchurch 383,000, and Wellington –<br />

the capital – 215,000. Overall, there are<br />

10 cities with between 100,000 and 1.6m<br />

inhabitants, and 33 with between 10,000<br />

and 100,000 people.<br />

As for languages, 2018 figures cited by<br />

the CIA indicates that English is spoken by<br />

95.4 percent of the population, Māori by 4<br />

percent, Samoan by 2.2 percent, Northern<br />

Chinese by 2 percent, Hindi by 1.5 percent,<br />

French by 1.2 percent, Yue by 1.1 percent,<br />

New Zealand Sign Language by 0.5 percent,<br />

and other or not stated by 17.2 percent. The<br />

CIA also notes that the percentages total<br />

well above 100 percent due to multiple<br />

responses on the 2018 census.<br />

On age, Statista details that in 2021,<br />

19.29 percent were aged 14 or under, 63.98<br />

percent between 15 and 64 years, while<br />

16.74 percent were aged 65 years or older.<br />

This closely aligns with 2020 data from<br />

the CIA World Factbook which gives the<br />

percentages as, respectively, 19.63 percent,<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 24


AUTHOR – Adam Bernstein<br />

64.83 percent and 15.54 percent. It should be<br />

added that according to NZ Adviser, population<br />

growth is expected to slow significantly over<br />

the next decade – down from 1.6 percent<br />

between 2011 and 2021 to 0.9 percent over<br />

the period 2021 to 2031. The publication says<br />

that “the slowdown would require more focus<br />

on planning properly for the future, given<br />

the population projections.” It added: “The<br />

65-years and older age group is projected to<br />

be the fastest growing in the coming decade,<br />

growing by 3.2 percent annually nationally<br />

between 2021 and 2031.”<br />

As for the economy, the OECD worries about<br />

growth in New Zealand. It thinks that GDP<br />

growth is projected to slow from 2.7 percent<br />

(Stats NZ) to 1 percent in <strong>2023</strong> and 1.2 percent in<br />

2024. It also thinks that “private consumption<br />

will weaken with lower employment growth<br />

and rising mortgage-servicing costs and<br />

tighter credit conditions; weakening demand<br />

will weigh on business investment.” There are<br />

concerns that unemployment will increase<br />

– albeit from a low level of 3.3 percent (Q3)<br />

and headline inflation will fall throughout<br />

the projection period - house prices could<br />

fall more than assumed, accentuating any<br />

downturn. Inflation in Q3 was recorded as<br />

being 7.2 percent.<br />

Of course, the current world situation<br />

aside, New Zealand’s economic position was<br />

not helped by its response to Covid. Much<br />

of the economy was put into lockdown and<br />

by September 2020 the economy went into<br />

recession and contracted by 12.2 percent. A<br />

V-shaped recovery followed but nevertheless,<br />

many businesses including catering, aviation,<br />

media, retail, telecoms and TV were affected<br />

and job losses followed. Tourism especially<br />

took a pummelling when borders closed<br />

in <strong>March</strong> 2020. With tourism, according to<br />

the National Institutes of Health in the US,<br />

making up 5.8 percent of GDP, the missing<br />

3.6m overseas visitors cost the economy dear<br />

and domestic tourism couldn’t make up the<br />

deficit.<br />

Opportunities<br />

Stats NZ details where the country’s GDP<br />

is generated – at least in 2020. Its primary<br />

industries generated some NZD 21.1bn of<br />

which agriculture made up NZD 13.8bn,<br />

fishing and aquaculture and support services<br />

NZD 2.8bn, mining the same, and forestry and<br />

logging generating NZD 1.6bn. (Note: NZD 1 is<br />

worth 52p)<br />

New Zealand’s goods producing industries<br />

earned NZD 62.2bn of which construction<br />

made NZD 22.4bn, food, drink and tobacco<br />

NZD 12.1bn, utilities NZD 8.8bn, petroleum<br />

and rubber NZD 5.6bn, transport equipment<br />

and machinery NZD 5.4bn, metal products<br />

NZD 3bn, wood and paper products NZD<br />

2.2bn, non-metallic minerals NZD 1.1bn,<br />

furniture NZD 841m, printing NZD 662m, and<br />

textiles and leather NZD 620m.<br />

Hobbiton Movie Set,<br />

Matamata, New Zealand.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 25<br />

New Zealand<br />

continues on page 26 >New


AUTHOR – Adam Bernstein<br />

But by far the biggest part of New<br />

Zealand’s economy is the service sector<br />

which in 2020 earned the country some<br />

NZD 212.4bn. Of this NZD 26.9bn came<br />

from professional scientific and technical<br />

services, NZD 23.7bn came from owner<br />

occupied property operations, NZD<br />

23.6bn from rental and real estate, NZD<br />

17.7bn from healthcare, NZD 17.7bn from<br />

finance and insurance, NZD 14.5bn from<br />

wholesale, NZD 14.1bn from retail, NZD<br />

13.9bn from education and training. Even<br />

local Government administration earned<br />

the country NZD 1.6bn.<br />

Agriculture<br />

The US Trade Department notes that<br />

agriculture is a big part of New Zealand’s<br />

economy. The country is one of the world’s<br />

largest exporters of dairy products and<br />

also exports large volumes of beef<br />

and lamb, wool, fruit, vegetables, and<br />

wine. Organic produce has grown<br />

in importance with the sector worth<br />

some NZD 720m.<br />

Farmers are looking to improve<br />

production and reduce costs.<br />

Large item imports are mowers<br />

and tractors, centre-pivot<br />

irrigation systems, and<br />

agricultural implements.<br />

The New Zealand<br />

Government is funding<br />

approximately NZD<br />

190m for environmental<br />

advisory services for<br />

farmers, foresters, growers and<br />

indigenous Māori landowners;<br />

to help the transformation of the<br />

forestry, wood process, food and<br />

beverage and fisheries sectors;<br />

and to help maintain and lift<br />

animal welfare practices across<br />

New Zealand.<br />

Environment<br />

New Zealand has legislation in place<br />

to improve its carbon footprint.<br />

The goal is for all greenhouse gases<br />

except for methane from agriculture<br />

and waste to reach net zero by 2050. The<br />

country’s environment ministry noted in<br />

December 2022 that gross emissions of<br />

carbon dioxide equivalent increased from<br />

68.4m tonnes in 1990 to 81.8m in 2020.<br />

With existing measures, gross emissions<br />

are projected to decrease to 59.2m in 2050.<br />

The New Zealand Sustainable Business<br />

Council has found that local businesses are<br />

investing and prioritising sustainability.<br />

Environmental policy is now influencing<br />

investment decisions particularly in<br />

transport and energy sectors. In other<br />

words, eco-friendly technologies are<br />

much sought after.<br />

The management of drinking water,<br />

stormwater, and wastewater services is<br />

being reformed so that from July 2024<br />

services will be provided by four publicly<br />

owned water service entities. Known as<br />

the Three Waters Reform programme, the<br />

nationwide infrastructure investment is<br />

estimated to range between NZD 120 and<br />

160bn.<br />

Healthcare<br />

New Zealand’s healthcare system<br />

comprises public, private, and voluntary<br />

sectors. In 2020, the Commonwealth<br />

Fund reckoned that state spending on<br />

health in 2017 was around 79 percent of<br />

all spending.<br />

New Zealand citizens receive free or<br />

subsidised healthcare while non-residents<br />

pay full cost. To improve services, Health<br />

New Zealand was created in July 2022 to<br />

manage New Zealand’s public hospitals<br />

and the commissioning of primary and<br />

community health services. Health New<br />

Zealand is expected to reduce complexity<br />

and waste on administrative duplication of<br />

non-health services as well as centralizing<br />

procurement requirements.<br />

The private healthcare system is<br />

dominated by Southern Cross Healthcare<br />

which also runs a small network of<br />

hospitals and works closely with the<br />

public healthcare system. There are<br />

several private chains specialising in<br />

geriatric care.<br />

In May 2022, the Government’s annual<br />

healthcare budget stood at approximately<br />

NZD 11bn. New expenditure is being<br />

prioritised for the redevelopment of<br />

several regional hospitals, ambulance<br />

services and new pharmaceuticals.<br />

Opportunities lie in low carbon<br />

technologies, digital and telehealth<br />

services, medical screening processes,<br />

and for a system coping with an ageing<br />

population.<br />

Technology<br />

On technology, New Zealand has an<br />

advanced digital infrastructure, and<br />

the 2020 Inclusive Internet Index<br />

and Speedtest Global Index ranks the<br />

country in the top 20 countries globally<br />

for network coverage, 5G deployment,<br />

and internet speeds. With 7,500 firms in<br />

fintech, health IT, digital and creative<br />

technologies, ICT is New Zealand’s third<br />

largest export sector with revenue of over<br />

NZD 8.7bn a year.<br />

The Government, banks, and the tech<br />

sector have been cooperating to a point<br />

that an environment of clustering and<br />

Auckland, based around two large<br />

harbours, is a major city in the north of<br />

New Zealand’s North Island. In the centre,<br />

the iconic Sky Tower has views of Viaduct<br />

Harbour<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 26


knowledge sharing has been created. Further, In<br />

May 2022, Microsoft New Zealand is encouraging<br />

Software-as-a-Service start-ups. Interestingly,<br />

the New Zealand Angel Association noted that<br />

in 2021, start-ups saw a 63 percent increase<br />

since 2020 in total funds invested.<br />

New Zealand’s internet connectivity improved<br />

in 2017 when the NZD 695m Hawaiki Cable<br />

between New Zealand, Australia, and the US<br />

went live. And for those in rural areas, things<br />

took a turn for the better when in 2022, SpaceX<br />

launched satellites allowing faster broadband<br />

internet to areas without any fibre connection.<br />

The import and export of digital content<br />

and services, especially entertainment, has<br />

markedly improved.<br />

Tourism<br />

The tourist sector is central to New Zealand and<br />

according to Tourism Industry Aotearoa, it is<br />

the country’s biggest export industry, making up<br />

about 20 percent of total exports and employing<br />

some 13.6 percent of the workforce.<br />

In December 2022 the Ministry of Business,<br />

Innovation & Employment published an<br />

update on the state of the market, albeit with<br />

data for the 12 months to <strong>March</strong> 2022. It noted<br />

that the sector was worth NZD 26.5bn, with<br />

international tourism expenditure rising 30.6<br />

percent to NZD 1.9bn – this is in line with an<br />

increase of overseas visitor arrivals to New<br />

Zealand of 335.3 percent to 229,370. Domestic<br />

tourism expenditure increased one percent –<br />

NZD 249m to NZD 24.6bn.<br />

And with an eye on the environment The<br />

Guardian reported in May 2021, that the New<br />

Zealand Government wants to diversify and<br />

remove reliance on a number of tourismdependent<br />

towns. Some of the country’s bestknown<br />

natural attractions, such as UNESCO<br />

World Heritage site Milford Sound/Piopiotahi,<br />

will be transformed to take far fewer visitors.<br />

One option highlighted by Invest New<br />

Zealand is a move into high-value activities like<br />

wellbeing spas, mountain bikes, and ziplines<br />

along with sustainable innovation, with projects<br />

such as the Ōpuke hot pools. It also said that key<br />

New Zealand destinations including Rotorua,<br />

Taupō, Wellington, Christchurch, Queenstown,<br />

and Dunedin are seeking additional hotel<br />

investment.<br />

Food and drink manufacturing<br />

According to the Ministry of Business,<br />

Innovation & Employment, New Zealand is a<br />

major food and beverage exporter, with the<br />

industry accounting for 46 percent of all goods<br />

and services exports. It’s surprising then, that<br />

most of the sector reports featured on the<br />

Ministry’s website are old and generally go back<br />

to 2014. That said, one, a 2019 Investors Guide,<br />

says that the food and beverage industry has a<br />

combined revenue of NZD 71.7bn (2018/19). It<br />

also notes that its market focus is moving from<br />

feeding the West to the Asia-Pacific region while<br />

also changing its product mix to more finished<br />

AUTHOR – Adam Bernstein<br />

❝<br />

New Zealand<br />

may be small,<br />

but it is a market<br />

that is worth a<br />

serious look.<br />

With a common<br />

language and<br />

legal outlook,<br />

and now, a new<br />

trade agreement<br />

with the UK.<br />

❝<br />

goods that are either more luxury or consumed<br />

by the service sector.<br />

The guide notes the low use of medicines and<br />

chemicals in products and that also, much of<br />

the production is privately held – only 18 firms<br />

were publicly listed.<br />

Tax<br />

In terms of tax on business, New Zealand<br />

resident companies are taxed on their worldwide<br />

income, and non-resident companies (including<br />

branches) are taxed on their New Zealandsourced<br />

income, subject to any applicable dual<br />

taxation agreements. The corporate income tax<br />

rate is 28 percent.<br />

Social security is covered by general taxation<br />

and there’s a fringe benefits tax (think benefits<br />

in kind) that is paid by the employer up to a rate<br />

of 49.25 percent for employer provided cars, low<br />

interest loans, medical insurance premiums,<br />

foreign superannuation contributions etc.<br />

There’s also a goods and services tax, a form of<br />

VAT that applies to most supplies of goods and<br />

services, including low value imported goods,<br />

services, and intangibles supplied remotely by<br />

an offshore supplier to New Zealand resident<br />

consumers. The narrow category of exempt<br />

supplies includes financial services. The rate<br />

applied to taxable supplies is currently 15<br />

percent or zero rated.<br />

The latter rate applies to a few supplies<br />

only, including exports and financial services<br />

supplied to other registered businesses, an<br />

interest in land between two GST-registered<br />

parties if the purchaser acquires the land<br />

with the intention of using it to make taxable<br />

supplies and it’s not intended to be used as a<br />

principal place of residence for the purchaser<br />

or an associate, or in relation to the sale of a<br />

business as a going concern.<br />

There is also a ‘reverse charge’ mechanism<br />

that requires the self-assessment of GST on<br />

the value of certain services imported by GSTregistered<br />

persons.<br />

Offshore sellers are required to register for<br />

GST at 15 percent on supplies of low-value<br />

imported goods if sales to New Zealand private<br />

consumers in a 12-month period exceed NZD<br />

60,000.<br />

Regarding private income tax, New Zealand<br />

residents are subject to tax on worldwide<br />

income. A non-resident is subject to tax only on<br />

income from sources in New Zealand.<br />

Rates are set in five bands – 10.5 percent on<br />

income to NZD 14,000, 17.5 percent on income<br />

from NZD 14,001 to 48,000, 30 percent on<br />

income from NZD 48,001 to 70,000, 33 percent<br />

on income from NZD 70,001 to 180,000, and 39<br />

percent on income of NZD 180,001 or more.<br />

Summary<br />

New Zealand may be small, but it is a market<br />

that is worth a serious look. With a common<br />

language and legal outlook, and now, a new<br />

trade agreement with the UK, exporters may<br />

well find that a long-distance trip is worthwhile.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 27





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Independent oversight for enforcement.<br />

AUTHOR –Alan J Smith<br />

AS an Association, we often<br />

talk about having three key<br />

aims. They are:<br />

– helping creditors recover<br />

unpaid debts,<br />

- supporting Government by<br />

recommending changes and implementing<br />

improvements to the legal framework around<br />

High Court enforcement, and, importantly,<br />

– informing debtors – by ensuring that anyone<br />

who owes money is treated fairly, ethically, and<br />

proportionately.<br />

Our members enforce judgments fairly,<br />

ethically and within the letter of the law.<br />

In order to reinforce this, we’ve developed<br />

a Code of Best Practice which builds on the<br />

National Standards for Enforcement Agents<br />

issued by the Ministry of Justice. It sets out the<br />

levels of professionalism and responsibility<br />

that the Association expects from High Court<br />

Enforcement Officers and their appointed<br />

enforcement agents.<br />

In line with this, while our own Code of<br />

Practice has been in place for some time, we<br />

welcome the introduction of the Enforcement<br />

Conduct Board (ECB), which will operate<br />

independently of both the profession and the<br />

Government and has a mandate to ensure<br />

fair treatment and appropriate protection<br />

for people subject to action by enforcement<br />

agents.<br />

ECB is making positive progress<br />

Since the announcement of the ECB back<br />

in early 2022, the Association has enjoyed a<br />

positive working relationship with the ECB’s<br />

new Chair and now its newly appointed Chief<br />

Executive.<br />

We fully support its purpose to ensure that<br />

all those who are subject to enforcement action<br />

in England and Wales are fairly treated, and we<br />

know that our members strive to achieve this<br />

with every writ they receive.<br />

Funded initially by a voluntary industry<br />

levy, the ECB will be guided by the principles<br />

of independence, ambition, proportionality,<br />

collaboration, and transparency. It will<br />

focus on delivering five key functions:<br />

raising standards, improving accountability,<br />

complaint handling, protecting the vulnerable<br />

and achieving fairness and authorisation.<br />

While we’re still awaiting details that sit<br />

beneath this big picture, the appointment of<br />

the ECB’s new Chief Executive is a sign that the<br />

coming months will see this emerge as the ECB<br />

continues discussions with the enforcement<br />

profession and debt advice sector.<br />

We’re looking forward to getting<br />

involved<br />

The HCEOA is pleased that we can now start to<br />

play an active role in some of these discussions<br />

to represent our members and help offer<br />

insight and knowledge from our decades of<br />

experience in enforcement.<br />

In particular, specific protocols will be<br />

welcomed, in addition to the Association’s<br />

recommendations on dynamic vulnerability to<br />

ensure that even though our members support<br />

at-risk debtors well, there are robust systems<br />

and an industry standard in place to deal with<br />

any increase in the numbers of vulnerable<br />

customers.<br />

Although the Debt Respite Scheme<br />

(Breathing Space) has offered some protection<br />

to debtors while they get their affairs in order<br />

with support from the debt advice sector, a<br />

better collective understanding of an agreed<br />

approach to identifying and dealing with<br />

vulnerability can only enhance our flexible<br />

and sympathetic approach when recovering<br />

money owed to UK individuals and businesses.<br />

We’ll be looking forward to hearing more<br />

about how the ECB plans to tackle these<br />

important issues, including its proposed<br />

complaint handling process and improving<br />

accountability for enforcement agents as part<br />

of its independent oversight.<br />

In the meantime, we’re continuing our<br />

own work on increasing professionalism<br />

throughout High Court enforcement. This<br />

includes working closely with CI<strong>CM</strong> on refining<br />

the education pathways and standards for<br />

anyone entering the High Court enforcement<br />

profession and providing ongoing training and<br />

guidance to qualified Hight Court Enforcement<br />

Officers.<br />

The ECB is a great opportunity for the<br />

enforcement profession and the debt advice<br />

sector to collaborate and collectively evolve<br />

standards and increase shared understanding.<br />

Everyone knows that standards and conduct<br />

are important. That’s never been the issue.<br />

The ECB gives us a forum which brings<br />

everyone together to discuss and share<br />

perspectives on and information about best<br />

practice, and it has independent oversight.<br />

This means that <strong>2023</strong> has the potential to be a<br />

year where the enforcement and debt advice<br />

collaborate and communicate more effectively<br />

than ever before, which has to be a good thing<br />

for everyone involved.<br />

Alan J. Smith FCI<strong>CM</strong> is Chairman of the<br />

High Court Enforcement Officers Association.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 29

International Trade<br />

Monthly round-up of the latest stories<br />

in global trade by Andrea Kirkby.<br />

APPLE’S Macbook production is<br />

leaving China in <strong>2023</strong> for Vietnam<br />

as the war of words between the<br />

US and China heats up. Apple is<br />

not alone as other US firms including HP,<br />

Dell, Google, and Meta are also planning to<br />

shift production and sourcing away from<br />

China. While the move is partly political, it’s<br />

also because China is no longer the low-cost<br />

manufacturer that it once was.<br />

But beyond Vietnam, India has become<br />

another beneficiary of Apple’s plans and<br />

it’s all a result of the incentives and other<br />

subsidies that the Indian government is<br />

Time to refocus<br />

offering. But there’s more to the draw of<br />

India – local demand for premium devices<br />

is picking up and the use of import taxes<br />

has made it more effective for firms to<br />

relocate production there rather than import.<br />

Regardless, a report on 9to5mac.com said<br />

that half of all iPhones could be made in<br />

India by 2027 and that Chinese suppliers are<br />

already suffering.<br />

All of this means that firms supplying<br />

corporate monoliths may have to think<br />

about following suit. Similarly, firms may<br />

want to relocate their own production to take<br />

advantage of new local centres of expertise.<br />


THE latest edition of Coface’s Country<br />

Risk Map – Q3 2022 is a pretty thing.<br />

The French credit insurer puts<br />

together a quarterly map of 162<br />

countries that illustrates the risk of a<br />

business defaulting on its debts.<br />

On first blush it’s a multitude of<br />

colours randomly applied to countries<br />

around the world. However, on closer<br />

inspection there’s detail there that<br />

might surprise.<br />

At the bottom end of the scale,<br />

is category E where default risk is<br />

extremely high. Here sit the usual<br />

suspects – North Korea, Iran, Libya,<br />

Sudan, Yemen, Afghanistan, Iraq, and<br />

Syria (and others).<br />

The list of those that are one step<br />

up, in category D, where the chance of<br />

default is ‘very high’, includes Russia,<br />

Ukraine, Belarus, Mongolia, Pakistan, a<br />

host of countries in Africa, Bolivia and<br />

six others in South America.<br />

But where the map is particularly<br />

interesting is when it looks at the<br />

developed world… where it might<br />

be thought that the risk of default is<br />

excellent.<br />

At the top end of the scale is A1 or<br />

‘very low’. And only one country has<br />

been granted that status – Norway.<br />

Next down is A2, ‘low’ which includes<br />

the US, Canada, the Netherlands,<br />

Switzerland, Australia, New Zealand,<br />

and Japan.<br />

Then we have A3, ‘satisfactory’.<br />

Here we find Germany, France, Spain,<br />

Portugal, the UAE and some others.<br />

But the UK? We’re only in A4, or<br />

‘reasonable’ – just over halfway down<br />

the rankings and in with the likes of<br />

Poland, Ireland, Austria, Thailand and<br />

others.<br />

Not what you were expecting? It<br />

surprised me too. Regardless, it’s a<br />

very visual way of seeing where firms<br />

should be careful when exporting.<br />

WHILE car manufacturers will be<br />

aware of this, suppliers may be less<br />

so. Reports suggest that the UK<br />

Government is worried that a £4.3bn<br />

car export market to the US faces<br />

decimation because the US is<br />

planning to subsidise firms involved<br />

in net-zero products that are made<br />

locally.<br />

The trouble stems from the Inflation<br />

British car firms may want to refocus<br />

Reduction Act which Congress passed<br />

in August 2022. It makes up to $360bn<br />

in subsidies available to firms to<br />

promote green growth and stimulate<br />

the economy. Clearly, a sum that<br />

large will give domestic producers a<br />

competitive advantage – especially<br />

in the world of automotive where<br />

subsidies will be worth $7,500 per<br />

vehicle sold.<br />

The French aren’t overly happy with<br />

the legislation either and have raised<br />

the spectre of retaliation.<br />

So, with trouble looming, car<br />

manufacturers may have to hope that<br />

it doesn’t come to pass or it is watered<br />

down. Supply chain partners may want<br />

to plan ahead by either building in<br />

contingency, looking to other markets,<br />

or developing different products.<br />

Brave Brave | | Curious | | Resilient / / www.cicm.com / / <strong>March</strong> <strong>2023</strong> <strong>2023</strong> / PAGE / PAGE 30 30

Eastern Europe: credit risk<br />

THE 2022 edition of the annual Atradius<br />

Payment Practices Barometer looks at<br />

business-to-business (B2B) payment<br />

practices in markets across the world.<br />

The survey of nearly 1,300 domestic<br />

and export suppliers across Bulgaria,<br />

the Czech Republic, Hungary, Poland,<br />

Slovakia and Turkey, ran during Q4 2022.<br />

It sought information on the impact of<br />

late or non-payment, the average time it<br />

takes to turn overdue B2B invoices into<br />

cash, how businesses manage payment<br />

default risks, and expected challenges to<br />

profitability during the coming months.<br />

In terms of Eastern Europe, it found<br />

that 44 percent of sales in B2B trade used<br />

credit during the past 12 months and that<br />

the average payment term granted was 42<br />

days from invoicing. Not unsurprisingly,<br />

almost 40 percent of companies polled<br />

said the main reason to offer credit terms<br />

in B2B trade was to win new business.<br />

It was a concern to Atradius that late<br />


MONEYWEEK recently made the point that<br />

firms trading with overseas partners should<br />

delve deeply into everything that they’re<br />

being told about the partner.<br />

In detail, it wrote that US regulators have<br />

been allowed access to the Chinese audits<br />

of companies based in China and listed in<br />

the US for the first time. The move was to<br />

reduce the risk that around 200 Chinese<br />

companies would be forcibly delisted from<br />

US exchanges. Regulators spent nine weeks<br />

poring over audits conducted by the Chinese<br />

affiliates of KPMG and PwC. The inspections<br />

took place in Hong Kong; mainland China<br />



IT seems peculiar that, in an age of<br />

freedom of information, the Government<br />

feels it inappropriate to publish full<br />

details of the impact of a recently signed<br />

post-Brexit trade deal with Israel.<br />

The deal is said to have a strong focus<br />

on UK services exports to the country -<br />

worth almost £80m – in areas such as<br />

financial services and advice on building<br />

the new Tel Aviv metro. Currently, UK-<br />

Israel trade is worth around £5bn.<br />

The Government’s reasoning is that<br />

modelling used for the deal compared<br />

to other post-Brexit agreements was<br />

different.<br />

The deal was signed earlier this year,<br />

with other agreements including those<br />

with Australia and New Zealand.<br />

Let’s hope that the agreement, despite<br />

the secrecy, is better than that signed<br />

with Australia that former minister<br />

George Eustice recently described as<br />

“not actually a very good deal for the UK.”<br />

payments affected an average of 43<br />

percent of all sales to B2B customers<br />

across industries in Eastern Europe;<br />

the key reason for this was a liquidity<br />

shortfall experienced by customers. And<br />

48 percent expected their days sales<br />

outstanding to worsen over the next 12<br />

months.<br />

But by far the biggest concern for<br />

companies across Eastern Europe<br />

looking ahead is uncertainty about the<br />

effects of the ongoing global economic<br />

downturn. Businesses in Eastern Europe<br />

told Atradius they feared the interplay<br />

of high inflation, the energy crisis,<br />

geopolitical tensions and increasing<br />

costs of production input could delay or<br />

even hamper rebound of their domestic<br />

economies.<br />

What does this all mean? Keep an eye<br />

on your debtors – both their ability to pay<br />

and the amount of credit they’re being<br />

granted.<br />

was out of bounds.<br />

While the work is still at an early stage,<br />

numerous potential deficiencies have<br />

been found. For more than 10 years, the<br />

US government has been concerned that<br />

the standard of auditing in China has been<br />

poor and that it’s contributed to a series<br />

of accounting frauds in US-listed Chinese<br />

companies.<br />

The lesson is clear. Before jumping into<br />

bed with a company where a failure in the<br />

relationship could have a material adverse<br />

outcome, exporters should take steps to<br />

verify the status of their newly found partner.<br />


THE start of <strong>2023</strong> saw Croatia, which<br />

joined the EU in 2013, adopt the euro and<br />

join the border-free Schengen area as<br />

its 27th member (which allows freedom<br />

of movement between countries for<br />

400m EU citizens). The kuna is now<br />

history and as such the euro’s adoption<br />

is expected to boost tourism, which<br />

accounts for 20 percent of Croatia’s GDP.<br />

To be fair, use of the euro was already<br />

widespread in Croatia, but formal<br />

adoption of the currency is expected<br />

to help protect Croatia’s economy.<br />

However, Croatia will now be subject<br />

to monetary policy decisions by the<br />

European Central Bank and be part of<br />

the eurozone’s banking supervision<br />

framework.<br />

Nevertheless, things are looking up<br />

for Croatia and so exporters may wish to<br />

think about paying the country a visit.<br />

EU1: A new<br />

cross-border trade mechanism?<br />

THE FSB has called on its members to help<br />

the Government simplify cross-border<br />

trade through a process that’s running<br />

which seeks to understand those data<br />

fields and procedures that are the most<br />

challenging. The idea is to develop a<br />

streamlined, user-friendly ‘Single Trade<br />

Window’ that will make importing and<br />

exporting easier while minimising the<br />

amount of data-entry required.<br />

The Government wants a ‘Single Trade<br />

Window’ to be an evolution of the Trader<br />

Support Service which covers the flow of<br />

goods between mainland GB and Northern<br />

Ireland.<br />

The goal is a process where traders<br />

do not have to enter data repeatedly<br />

in multiple Government systems –<br />

commodity codes are a prime example of<br />

this. The Government is looking for ways to<br />

extract as much existing data as possible<br />

from supply chains.<br />

EU2: Rough waters for UK firms<br />

ACCORDING to a report in the Times, more<br />

than two years after the signing of the<br />

Trade and Cooperation Agreement (TCA)<br />

with the EU, the number of businesses<br />

trading overseas, both with the EU and<br />

elsewhere, has continued to decline.<br />

The paper quoted Marco Forgione,<br />

Director-General of the Institute of Export<br />

and International Trade, who said that<br />

companies are still struggling with the<br />

rules despite the promise of easy trade.<br />

Forgione said that “the challenge has<br />

been understanding what the rules and<br />

regulations are and overcoming the<br />

issues of trading into a third nation.<br />

Have traders got a handle on it now? No,<br />

they haven’t. Those that are doing it are<br />

getting better at it, but for a whole raft of<br />

others, particularly for micro and small<br />

businesses, they have struggled.”<br />

As the Times reminds, the TCA was<br />

meant to let UK and EU importers benefit<br />

from zero tariffs or customs duties on<br />

goods as long as there was evidence that<br />

the goods mostly originated in the UK or<br />

EU. The problem seems to be that many<br />

small UK exporters find that proving the<br />

origin of goods is overly complicated.<br />



OR CALL 020 7738 0777<br />

Currency UK is authorised and regulated<br />

by the Financial Conduct Authority (FCA).<br />


GBP/EUR 1.14522 1.11327 Down<br />

GBP/USD 1.24366 1.19722 Down<br />

GBP/CHF 1.14365 1.10853 Down<br />

GBP/AUD 1.79588 1.72344 Flat<br />

GBP/CAD 1.66888 1.60819 Down<br />

GBP/JPY 162.137 156.534 Up<br />

This data was taken on 17th February and refers to the<br />

month previous to/leading up to 16th February <strong>2023</strong>.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 31

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 32

Apprentice profile<br />

BARRY McCourt joined United Utilities in<br />

August 2018. He originally applied for<br />

the billing department but was asked if<br />

he would prefer to work for the income<br />

team. After accepting the opportunity,<br />

he became a permanent employee in<br />

February 2019 and was offered the option of doing a CI<strong>CM</strong><br />

Apprenticeship alongside his day-to-day responsibilities.<br />

“When I was asked to take part in the CI<strong>CM</strong><br />

Apprenticeship I had mixed feelings,” he explains. “Some<br />

feelings of excitement about what I can achieve from it,<br />

such as being a certified credit controller and having the<br />

coveted ACI<strong>CM</strong> at the end of my name.<br />

“But I was also a bit apprehensive and nervous to<br />

start the course as I didn’t know how it would go for<br />

me personally. I am my own worst critic, but it is about<br />

turning the negativity into positivity and telling yourself<br />

you can do it. So, I was happy to accept the challenge and<br />

I am confident I will pass.”<br />


The CI<strong>CM</strong> programme, particularly the Customer<br />

Collections and Advanced Collections modules, have<br />

provided Barry with a range of skills that he can apply<br />

to his job. However, he equally values the modules that<br />

have enhanced his knowledge on the broader economy:<br />

“I found the Business Environment module to be the<br />

most interesting and I now understand more about the<br />

world’s economy,” he says. “I find myself breaking down<br />

economic events in the news to my girlfriend, making<br />

me sound smart!<br />

“But in all seriousness, I have thoroughly enjoyed<br />

the programme and how it has been delivered. My<br />

colleagues and I link in and help each other because<br />

what one person may struggle with another may excel<br />

in. I believe helping each other is very important as we<br />

all want to achieve the same result.<br />

“I know that by studying and passing the<br />

apprenticeship, I will enhance my knowledge and<br />

increase my chances of progressing up the career ladder<br />

of United Utilities.”<br />

Latest in a new series<br />

of how CI<strong>CM</strong>-led<br />

Apprenticeships are<br />

supporting professional<br />

development.<br />

Barry McCourt<br />

United Utilities<br />

“When I was asked to take part in the<br />

CI<strong>CM</strong> Apprenticeship I had mixed feelings,<br />

some feelings of excitement about what<br />

I can achieve from it, such as being a<br />

certified credit controller and having the<br />

coveted ACI<strong>CM</strong> at the end of my name.’’<br />

Apprenticeships in Credit<br />

Control and Collections<br />

There are five apprenticeships for those working in the credit<br />

profession. At each Level of apprenticeship you will be able to<br />

gain professional CI<strong>CM</strong> qualifications<br />

• Credit Controller/Collector<br />

• Advanced Credit Controller and Debt Collection Specialist<br />

Apprenticeship<br />

• Compliance/Risk Officer Apprenticeship<br />

• Senior Compliance/Risk Specialist Apprenticeship<br />

• Financial Services Degree Apprenticeship<br />

For more details on how CI<strong>CM</strong> can help you start your<br />

apprenticeship journey, visit cicm.com/apprenticeships<br />

Brave | | Curious | | Resilient / / www.cicm.com / <strong>March</strong> / <strong>March</strong> <strong>2023</strong> <strong>2023</strong> / PAGE / PAGE 33 33

Aggregate Industries<br />

partners with Barclaycard<br />

Payments to provide<br />

extended working capital<br />

to their clients<br />

Our new trade partner programme gives you a suite of solutions to help<br />

keep your business running smoothly. By partnering with us, your<br />

day-to-day cashflow could improve and your business can thrive, while<br />

our dedicated support and expertise puts you in complete control of<br />

your business payments.<br />

Aggregate Industries’<br />

partnership with<br />

Barclaycard Payments<br />

has enabled us to<br />

increase our sales,<br />

whilst reducing our<br />

Days Sales Outstanding<br />

(DSO) and credit risk.<br />

Phil Rice<br />

Head of Credit<br />

– Aggregate Industries<br />

UK Ltd<br />

Customer satisfaction<br />

Being able to offer flexible and extended payment terms to<br />

customers can make you more attractive, especially if your<br />

competitors can’t match it. Our payment solutions help<br />

improve supply chain payments and embed relationships,<br />

creating value for both parties.<br />

Reduced risk<br />

We help remove the risk that you won’t receive payments.<br />

With quicker payments and our payment guarantee, you can<br />

be far more confident that whatever happens to your<br />

customer, you will receive the money you’re owed.<br />

Increased sales<br />

You might have wanted to sell more products and services to<br />

your customers in the past but were reluctant to take on the<br />

risk of extended credit terms. With Barclaycard taking the<br />

credit risk from you, and extending it through your<br />

customers, your sales could grow with reduced risk<br />

to your business.<br />

Quicker payments<br />

Waiting for and chasing outstanding payments can be<br />

frustrating, time- consuming and a financial drain.<br />

We can help make sure monies owed are paid to you<br />

more swiftly, giving you a better working capital position<br />

and a streamlined accounts receivable process.<br />

Find out how our solutions could benefit your business. Sign up for our trade partner programme today.<br />

Email mark.mcgill@barclaycard.co.uk<br />

Barclaycard is a trading name of Barclays Bank PLC and Barclaycard International Payments Limited. Barclays Bank PLC is authorised by the Prudential Regulation Authority<br />

and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Registered in England No. 1026167.<br />

Registered Office: 1 Churchill Place, London E14 5HP. Barclaycard International Payments Limited, trading as Barclaycard, is regulated by the Central Bank of Ireland.<br />

Registered Number: 316541. Registered Office: One Molesworth Street, Dublin 2, Ireland, D02 RF29. Directors: Paul Adams (British), Steven Lappin (British), James Kelly,<br />

Mary Lambkin Coyle, Peter Morris and David Rowe. Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 34


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

THE CI<strong>CM</strong><br />


AWARDS <strong>2023</strong><br />


Brave | Curious | Resilient / www.cicm.com /<strong>March</strong> <strong>2023</strong> / PAGE 35

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 36


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Recognising<br />

the best in credit<br />

management<br />

WE live in increasingly challenging times but are often at our best when<br />

confronted by adversity. It is important, therefore, to recognise success<br />

where we find it, and in the following pages you will discover many<br />

examples of businesses and people that demonstrate everything that<br />

is good about our amazing profession and our community. To those<br />

who took the top prizes, congratulations. To those who were highly<br />

commended, and indeed to all of you who took the time and trouble to<br />

enter these awards, be proud of all you have achieved, and never stop<br />

striving for excellence.<br />

Dr Stephen Baister FCI<strong>CM</strong>,<br />

CI<strong>CM</strong> President<br />

Dr Stephen Baister, FCI<strong>CM</strong><br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 37

ww<br />


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Shared Service Provider Award<br />

Winner<br />

Saint-Gobain<br />

Sponsor:<br />

Judges' comment: With a strong<br />

focus on continuous improvement,<br />

this is clearly a very professional<br />

shared services team with a strong<br />

commitment to delivering for the<br />

business, with people being at the core.<br />

Presenter: Yvette Gray MCI<strong>CM</strong>, Regional Manager, Atradius<br />

Collector of award: Saint-Gobain Shared Services Team<br />

Resilience & Continuity Award<br />

Winner<br />

Weightmans<br />

LLP<br />

Judges' comment: This company<br />

has demonstrated great resilience by<br />

emerging stronger and wiser from the<br />

pandemic and implementing strategies<br />

from learnings. A worthy winner!<br />

Presenter: Becki Sharpe ACIM, Marketing & Events Manager, CI<strong>CM</strong><br />

Collector of award: Weightmans LLP Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 38


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Jenny Oldfield Supporting Women Award<br />

Winner<br />

Toni West ACI<strong>CM</strong>,<br />

Aggregate<br />

Industries<br />

Judges' comment: Whilst the winner<br />

of this award tonight deserves every<br />

accolade for winning, it is my eternal<br />

hope that those that went through<br />

the process of applying for the award,<br />

which meant explaining how great<br />

you are, will remind themselves how<br />

wonderful they are and that they can<br />

reach for the stars in their career.<br />

Presenter: Jenny Oldfield FCI<strong>CM</strong><br />

Collector of award: Toni West ACI<strong>CM</strong>, Aggregate Industries<br />

Risk Management Award<br />

Winner<br />

Company<br />

Watch Team<br />

Judges' comment: Organisation<br />

provided outstanding examples of<br />

risk management and they more than<br />

demonstrated that their programme<br />

has had a positive effect on the<br />

organisation and their customers.<br />

Presenter: Phil Rice FCI<strong>CM</strong>, Executive Board Trustee<br />

Collector of award: Company Watch Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 39


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Debt Collection Agency Award<br />

Winner<br />

Global Credit<br />

Recoveries<br />

Judges' comment: An excellent<br />

submission from a highly respected<br />

and experienced leading player in the<br />

global market. They live by the values<br />

behind the award and are deserved<br />

winners.<br />

Presenter: Allan Poole FCI<strong>CM</strong>, Executive Board Trustee<br />

Collector of award: Global Credit Recoveries team<br />

Giving Back Award<br />

Winner<br />

Exclusive<br />

Networks<br />

Sponsor:<br />

Judges' comment: This organisation<br />

has continually showed commitment<br />

in supporting others in the Credit<br />

and Collection industry, making<br />

sure they ‘give back’, which makes<br />

a huge difference in the community,<br />

whether you are starting your career<br />

or a veteran. The positive impact this<br />

organisation has made them very<br />

worthy winners.<br />

Presenter: Alan Smith FCI<strong>CM</strong>, Director, High Court Enforcement<br />

Collector of award: Exclusive Networks Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 40


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Social Mobility & Inclusion Award<br />

Winner<br />

Skyscanner<br />

Judges' comment: With social<br />

mobility and inclusion at the core of<br />

their company values, whilst putting<br />

DEI at the heart of the business, this<br />

submission was deemed a clear winner.<br />

Presenter: Glen Bullivant FCI<strong>CM</strong>, Executive Board Trustee and CI<strong>CM</strong> Treasurer<br />

Collector of award: Zoe Pope ACIM, Digital Communications Specialist, CI<strong>CM</strong>, on<br />

behalf of Skyscanner<br />

Outstanding Contribution to the Industry<br />

Winner<br />

David Scottow<br />

FCI<strong>CM</strong>, DWF LLP<br />

Sponsor:<br />



Judges' comment: The award this year<br />

goes to a champion of our profession,<br />

whose career has spanned over 40<br />

years. During this time he has made<br />

countless achievements as well as<br />

impacting the lives and careers of<br />

many.<br />

Presenter: Chad Vigano, Business Manager Credit Control Division<br />

Collector of award: David Scottow FCI<strong>CM</strong>, DWF LLP<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 41

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 42


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

B2C Collections Team Award<br />

Winner<br />

Imperial College<br />

London<br />

Sponsor: Global Credit Recoveries<br />

Judges' comment: With a submission<br />

that highlighted several examples of<br />

what they had achieved in the last 12<br />

months, they deserve to be recognised<br />

as winners.<br />

Presenter: Charles Mayhew FCI<strong>CM</strong>, Director, Global Credit Recoveries<br />

Collector of award: Imperial College London Collections Team<br />

B2C Collections Team Award<br />

Winner<br />

United Utilities<br />

Water<br />

Sponsor:<br />

Judges' comment: Whilst creating<br />

a new shared service operation, this<br />

organisation has always championed<br />

personal development throughout<br />

the team – whilst continuing to offer<br />

excellent customer service.<br />

Presenter : Charles Mayhew FCI<strong>CM</strong>, Director, Global Credit Recoveries<br />

Collector of award : United Utilities Water Collection Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 43

Get invoices paid faster with<br />

SMS payment reminders<br />

Increase your chances of getting paid with SMS, and let customers pay<br />

instantly via a link in their payment reminder text message.<br />

chaserhq.com<br />

End-to-end accounts receivables automation<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 44


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Rising Star Award<br />

Winner<br />

Samuel Johnson –<br />

United Utilites<br />

Water<br />

Sponsor:<br />

Judges' comment: This winner is<br />

going from strength to strength in<br />

their career the submission was<br />

everything we would want to see<br />

from a Rising Star and very much look<br />

forward to seeing their progress in this<br />

industry<br />

Presenter: Natascha Whitehead, Business Director, Hays Credit Management UK<br />

Channel Lead<br />

Collector of award: Samuel Johnson, United Utilities Water<br />

Legal Provider Award<br />

Winner<br />

Shoosmiths<br />

Highly Commended: MKB Law<br />

Sponsor:<br />

Judges' comment: This legal provider<br />

has gone over and above to integrate<br />

with their clients and the team's<br />

quality is proven by some fantastic<br />

testimonials. A solid submission and a<br />

clear winner.<br />

Presenter: Michael Whitaker, Director of Business Development, , Court<br />

Enforcement Services<br />

Collector of award: Shoosmiths Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 45

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 46

Best Employer Award<br />

Winner<br />

Fleetmaxx<br />

Solutions<br />

Sponsor:<br />


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Judges' comment: We really felt the<br />

energy from this submission, It's<br />

great to see a company doing great<br />

things for their staff. It's clear that the<br />

business wants all employees to feel<br />

that they believe in them.<br />

Presenter: Sam Wells, Strategic Sales Team Leader, American Express<br />

Collector of award: Fleetmaxx Solutions Team<br />

B2B Team Award<br />

Winner<br />

Norsk European<br />

Wholesale<br />

Sponsor:<br />

Judges' comment: Transformation of<br />

culture, leading to spectacular results.<br />

The entry shows the power of adopting<br />

true credit management principles and<br />

processes.<br />

Presenter: Harriet Knight, Strategic Sales Team Leader, American Express<br />

Collector of award: Norsk European Wholesale B2B Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 47

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 48


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Sir Roger Cork Prize<br />

Winner<br />

Phil Hodgson<br />

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

Judges' comment: Philip achieved<br />

a score of 82 in Credit Management<br />

(Trade, Export & Consumer), 88 in<br />

Consumer Debt Collections, 87 in<br />

Business Law and finishing with a 92<br />

for Business Environment in August<br />

2022.<br />

Presenter: Dr Debbie Tuckwood, CI<strong>CM</strong> Chief Advisor<br />

Collector of award: Luke Sculthorp FCI<strong>CM</strong>, Head of Strategic Relationship, CI<strong>CM</strong> on<br />

behalf of Phil Hodgson ACI<strong>CM</strong><br />

Credit Professional of the Year Award<br />

Winner<br />

Laura Brown MCI<strong>CM</strong>(Grad)<br />

– Saint-Gobain<br />

Highly Commended: Tina Daulton<br />

MCI<strong>CM</strong>, Biffa Waste Services<br />

Sponsor:<br />

Judges' comment: The winner is<br />

clearly a passionate credit professional<br />

who has rapidly progressed through<br />

the ranks. Whilst identifying with<br />

all roles within credit management,<br />

they ensure they treat the team with<br />

empathy and understanding. A strong<br />

advocate for CI<strong>CM</strong>.<br />

Presenter: Andy Lilley, Managing Director - Global AR, Blackine<br />

Collector of award: Laura Brown MCI<strong>CM</strong>(Grad), Saint-Gobain<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 49

A new CI<strong>CM</strong> Member<br />

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Download the app for your iOS or Android operating system


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Excellence in Credit Management<br />

Winner<br />

Imperial College<br />

London<br />

Judges' comment: The Excellence<br />

in Credit Management Award is the<br />

highest accolade awarded by CI<strong>CM</strong>. It<br />

recognises organisations at the very<br />

top of their game. The winners of<br />

this award have demonstrated their<br />

best-in-class standing by meeting<br />

challenging criteria, ratified by the<br />

Institute's Executive Board – including;<br />

business results, continuous<br />

improvement, membership, learning<br />

and qualifications across their teams<br />

as well as sharing examples and<br />

supporting others in our profession.<br />

Presenter: Dr Stephen Baister FCI<strong>CM</strong>, CI<strong>CM</strong> President<br />

Collector of award: Imperial College London Team<br />

Excellence in Credit Management<br />

Winner<br />

United Utilities<br />

Water<br />

Judges' comment: The Excellence<br />

in Credit Management Award is the<br />

highest accolade awarded by CI<strong>CM</strong>. It<br />

recognises organisations at the very<br />

top of their game.<br />

Presenter: Dr Stephen Baister FCI<strong>CM</strong>, CI<strong>CM</strong> President<br />

Collector of award: United Utilities Water Team<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 51

Fill your vacancy or find your next career<br />

move at www.portfoliocreditcontrol.com<br />


To David Scottow<br />

FCI<strong>CM</strong> - DWF Law LLP<br />

for achieving the<br />

Outstanding<br />

Contribution to the<br />

Credit Industry award!<br />

His career has spanned<br />

over 40 years…<br />

...impacting the lives &<br />

careers of many. Over<br />

the 20 years of CI<strong>CM</strong><br />

Fellowship, he has proven to<br />

be a continued ambassador,<br />

who’s legacy will be those<br />

who he has developed &<br />

taught over the years”<br />

Contact one of our specialist recruitment consultants to fill your vacancy or find your next career move!<br />

LONDON 020 7650 3199<br />


MANCHESTER 0161 523 5585<br />


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recruitment@portfoliocreditcontrol.com<br />

theportfoliogroup<br />

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Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 52


CREDIT<br />

AWARDS<br />

<strong>2023</strong><br />

Supplier of the Year Award<br />

Winner<br />

Cedar Rose<br />

International<br />

Services Ltd<br />

Sponsor:<br />

Judges' comment: A very strong<br />

demonstration of product development,<br />

with real time information. A great<br />

submission and worthy contender<br />

clearly demonstrating the values behind<br />

the award.<br />

Presenter: Sonia Dorais, Chaser, CEO<br />

Collector of award: Mario Maroun, Product Manager Risk & Compliance at Cedar<br />

Rose International Services Ltd<br />

Credit & Collections FinTech Supplier Award<br />

Winner<br />

Debt Register<br />

Highly Commended: Know-It<br />

Debt Register was also Highly<br />

Commended in the Innovation and<br />

Technology category<br />

Judges' comment: A leading example<br />

of how to use technology in the<br />

workplace, ensuring the team's<br />

training and progression is on the<br />

forefront.<br />

Presenter: Larry Coltman FCI<strong>CM</strong>, Executive Board Trustee<br />

Collector of award: Tom Perry, Solutions Consultant & Gary Brown, Founder, Debt<br />

Register<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 53

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 54

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 55

Introducing our<br />


For further information and to discuss the opportunities of entering into a<br />

Corporate Partnership with the CI<strong>CM</strong>, please contact corporatepartners@cicm.com<br />

VISMA | Onguard is a specialist in credit management<br />

software and market leader in innovative solutions for<br />

order-to-cash. Our integrated platform ensures an optimal<br />

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in stronger, longer-lasting customer relationships<br />

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The VISMA | Onguard platform is used for successful<br />

credit management in more than 70 countries.<br />

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W: www.onguard.com<br />

Quadient AR by YayPay makes it easy for B2B<br />

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HighRadius provides a cloud-based Integrated<br />

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Reduce or eliminate manual tasks, allowing AR<br />

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Our Creditor Services team can advise on the best<br />

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FIS GETPAID solution is a fully integrated, webbased<br />

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Tinubu Square is a trusted source of trade credit<br />

intelligence for credit insurers and for corporate<br />

customers. The company’s B2B Credit Risk<br />

Intelligence solutions include the Tinubu Risk<br />

Management Center, a cloud-based SaaS platform;<br />

the Tinubu Credit Intelligence service and the<br />

Tinubu Risk Analyst advisory service. Over 250<br />

companies rely on Tinubu Square to protect their<br />

greatest assets: customer receivables.<br />

T: +44 (0)207 469 2577 /<br />

E: uksales@tinubu.com<br />

W: www.tinubu.com.<br />

Building on our mature and hugely successful<br />

product and world class support service, we are<br />

re-imagining our risk awareness module in 2019 to<br />

allow for hugely flexible automated worklists and<br />

advanced visibility of areas of risk. Alongside full<br />

integration with all credit scoring agencies (e.g.<br />

Creditsafe), this makes Credica a single port-of-call<br />

for analysis and automation. Impressive results<br />

and ROI are inevitable for our customers that also<br />

have an active input into our product development<br />

and evolution.<br />

T: 01235 856400<br />

E: info@credica.co.uk<br />

W: www.credica.co.uk<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 56

Each of our Corporate Partners is carefully selected for<br />

their commitment to the profession, best practice in the<br />

Credit Industry and the quality of services they provide.<br />

We are delighted to showcase them here.<br />

They're waiting to talk to you...<br />

Hays Credit Management is a national specialist<br />

division dedicated exclusively to the recruitment of<br />

credit management and receivables professionals,<br />

at all levels, in the public and private sectors. As<br />

the CI<strong>CM</strong>’s only Premium Corporate Partner, we<br />

are best placed to help all clients’ and candidates’<br />

recruitment needs as well providing guidance on<br />

CV writing, career advice, salary bench-marking,<br />

marketing of vacancies, advertising and campaign<br />

led recruitment, competency-based interviewing,<br />

career and recruitment trends.<br />

T: 07834 260029<br />

E: karen.young@hays.com<br />

W: www.hays.co.uk/creditcontrol<br />

Court Enforcement Services is the market<br />

leading and fastest growing High Court Enforcement<br />

company. Since forming in 2014, we have managed<br />

over 100,000 High Court Writs and recovered more<br />

than £187 million for our clients, all debt fairly<br />

collected. We help lawyers and creditors across all<br />

sectors to recover unpaid CCJ’s sooner rather than<br />

later. We achieve 39 percent early engagement<br />

resulting in market-leading recovery rates. Our<br />

multi-award-winning technology provides real-time<br />

reporting 24/7.<br />

T: +44 (0)1992 367 092<br />

E: a.whitehurst@courtenforcementservices.co.uk<br />

W: www.courtenforcementservices.co.uk<br />

Shoosmiths’ highly experienced team will work<br />

closely with credit teams to recover commercial<br />

debts as quickly and cost effectively as possible.<br />

We have an in depth knowledge of all areas of debt<br />

recovery, including:<br />

• Pre-litigation services to effect early recovery and<br />

keep costs down • Litigation service • Insolvency<br />

• Post-litigation services including enforcement<br />

As a client of Shoosmiths, you will find us quick to<br />

relate to your goals, and adept at advising you on the<br />

most effective way of achieving them.<br />

T: 03700 86 3000<br />

E: paula.swain@shoosmiths.co.uk<br />

W: www.shoosmiths.co.uk<br />

Forums International has been running Credit and<br />

Industry Forums since 1991 covering a range of<br />

industry sectors and international trading. Attendance<br />

is for credit professionals of all levels. Our forums<br />

are not just meetings but communities which<br />

aim to prepare our members for the challenges<br />

ahead. Attending for the first time is free for you to<br />

gauge the benefits and meet the members and we<br />

only have pre-approved Partners, so you will never<br />

intentionally be sold to.<br />

T: +44 (0)1246 555055<br />

E: info@forumsinternational.co.uk<br />

W: www.forumsinternational.co.uk<br />

Data Interconnect provides corporate Credit Control<br />

teams with Accounts Receivable software for bulk<br />

e-invoicing, collections, dispute management and<br />

invoice finance. The modular, cloud-based Corrivo<br />

platform can be configured for any business model.<br />

It integrates with all ERP systems and buyer AP<br />

platforms or tax regimes. Customers can self-serve<br />

on mobile friendly portals, however their invoices are<br />

delivered, and Credit Controllers can easily extract<br />

data for compliance, audit and reporting purposes.<br />

T: +44 (0)1367 245777<br />

E: sales@datainterconnect.co.uk<br />

W: www.datainterconnect.com<br />

Serrala optimizes the Universe of Payments for<br />

organisations seeking efficient cash visibility<br />

and secure financial processes. As an SAP<br />

Partner, Serrala supports over 3,500 companies<br />

worldwide. With more than 30 years of experience<br />

and thousands of successful customer projects,<br />

including solutions for the entire order-to-cash<br />

process, Serrala provides credit managers and<br />

receivables professionals with the solutions they<br />

need to successfully protect their business against<br />

credit risk exposure and bad debt loss.<br />

T: +44 118 207 0450<br />

E: contact@serrala.com<br />

W: www.serrala.com<br />

American Express® is a globally recognised<br />

provider of business payment solutions, providing<br />

flexible capabilities to help companies drive<br />

growth. These solutions support buyers and<br />

suppliers across the supply chain with working<br />

capital and cashflow.<br />

By creating an additional lever to help support<br />

supplier/client relationships American Express is<br />

proud to be an innovator in the business payments<br />

space.<br />

Key IVR provide a suite of products to assist companies<br />

across Europe with credit management. The<br />

service gives the end-user the means to make a<br />

payment when and how they choose. Key IVR also<br />

provides a state-of-the-art outbound platform<br />

delivering automated messages by voice and SMS.<br />

In a credit management environment, these services<br />

are used to cost-effectively contact debtors and<br />

connect them back into a contact centre or<br />

automated payment line.<br />

The UK’s No1 Insolvency Score, available as a<br />

platform to help businesses manage risk and<br />

achieve growth. The only independently owned<br />

UK credit referencing agency for businesses. We<br />

have modernised the way companies consume<br />

data, to power businesses decisions with the most<br />

important data taken in real-time feeds, ensuring<br />

our customers are always the first to know. Enabling<br />

them to deliver best in class sales, credit risk<br />

management and compliance.<br />

T: +44 (0)1273 696933<br />

W: www.americanexpress.com<br />

T: +44 (0) 1302 513 000<br />

E: sales@keyivr.com<br />

W: www.keyivr.com<br />

T: +44(0)<br />

E: *<br />

W: www.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 57


Introducing our<br />


Each of our Corporate Partners is carefully selected for their commitment<br />

to the profession, best practice in the Credit Industry and the quality of<br />

services they provide. We are delighted to showcase them here.<br />

Our Corporate Partnerships give organisations a unique<br />

opportunity to work with us and demonstrate their<br />

commitment to professionalism and best practice in the<br />

Credit industry.<br />

We have combined a number of compelling features<br />

that will deliver great value through sustained exposure<br />

to our membership of over 7,000 credit professionals,<br />

decision-makers and key industry figures.<br />

For further information please contact the Head of Strategic<br />

Relationships, luke.sculthorp@cicm.com<br />

The CI<strong>CM</strong> Benevolent Fund is<br />

here to support members of<br />

the CI<strong>CM</strong> in times of need.<br />

Some examples of how CI<strong>CM</strong> have helped our members are:<br />

• Financed the purchase of a mobility scooter for a disabled member.<br />

• Helped finance the studies of the daughter of a member who<br />

became unexpectedly ill.<br />

• Financed the purchase of computer equipment to assist an<br />

unemployed member set up a business.<br />

• Contributed towards the purchase of an orthopaedic bed for one<br />

member whose condition was thereby greatly eased.<br />

• Helped with payment for a drug, not available on the NHS, for<br />

medical treatment of another member.<br />

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

help. (Your application will then be reviewed by the CI<strong>CM</strong> Benevolent Fund committee and<br />

you will be advised of their decision as quickly as possible)<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 58

CI<strong>CM</strong> MEMBER<br />


Your CI<strong>CM</strong> lapel badge<br />

demonstrates your commitment to<br />

professionalism and best practice<br />



If you haven’t received your badge<br />

contact: cicmmembership@cicm.com<br />

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



Credit Management, the magazine of the Chartered Institute of Credit<br />

Management (CI<strong>CM</strong>), is the leading publication in its field. The magazine<br />

includes full coverage of consumer and trade credit, export and company<br />

news, as well as in-depth features, profiles and opinions. To receive the free<br />

magazine you must be a member of the CI<strong>CM</strong> or subscribe.<br />



IN DEPTH<br />


ASK THE<br />


GLOBAL<br />

NEWS<br />

LEGAL<br />



TRADE<br />



HR<br />









Route to Success<br />

Guarantee a productive year ahead<br />

with professional goals.<br />

AUTHOR – Natascha Whitehead<br />

NOW the new year is well<br />

underway, it’s a great time<br />

to consider what career<br />

ambitions you would most<br />

like to accomplish in <strong>2023</strong>. If<br />

you’re wondering where to<br />

start, I’ve got you covered. Professional goals,<br />

defined as clear career-focused objectives that<br />

a person aims to achieve, certainly help lay the<br />

groundwork for success and satisfaction in the<br />

credit management sector. Rather than broad<br />

resolutions, goal setting enables you to create<br />

actionable targets you can use as a roadmap to<br />

help move your career in finance in the right<br />

direction.<br />

How to set professional goals<br />

My first piece of advice is to make sure your<br />

goals are personal and meaningful. This may<br />

require you to reflect on where you are now in<br />

your credit management journey and where you<br />

truly want to be, then you can plan the goals that<br />

will support you in getting there. Clarify the big<br />

‘why’ behind your objectives; how would you<br />

feel if you attained these goals and how would<br />

you benefit? It can be useful to visualise success,<br />

by imagining how these goals would shape your<br />

career in the future.<br />

Secondly, break down large goals into<br />

manageable, smaller ones. You could create<br />

a list of steps to take, such as actions you can<br />

incorporate into each day, week or month to<br />

facilitate your overriding goal. For example, if<br />

you want to work on expanding your network,<br />

you could set out to connect with someone new<br />

on LinkedIn each week, then you could spend<br />

some designated time researching events in<br />

the industry to sign up for, to build on your<br />

networking skills even further.<br />

Don’t just think about these<br />

objectives though; plan them<br />

on paper. It's important to have<br />

a record of your professional<br />

goals to hand, so you can keep<br />

track of them and ensure you<br />

continue improving. If you<br />

ever feel lost and in need of<br />

guidance, you can turn to<br />

where you write your goals,<br />

which should spark some<br />

motivation. This visual<br />

tool can similarly be used<br />

to tick things off or edit<br />

where necessary, as your<br />

professional aspirations<br />

are likely to change as you<br />

progress on your career path.<br />

❝<br />

The beauty of<br />

brushing up on<br />

these skills is<br />

that they are<br />

transferable across<br />

all different sectors<br />

and roles. Think<br />

about how you can<br />

practice these in<br />

everyday life and<br />

then apply them in<br />

the workplace.<br />

❝<br />

The goals to guarantee success<br />

Upskilling has arguably never been more<br />

important, as the majority of employers face<br />

skills shortages today. This means a willingness<br />

to learn is essential to significantly enhance your<br />

credit management profession. There are many<br />

ways you can be proactive and take the initiative<br />

to continuously develop your skillset. Research<br />

the certifications that are important for success in<br />

credit management, enrol on a relevant course –<br />

such as how to utilise a specific financial software<br />

– and absorb as much information as you can.<br />

On the topic of skills, soft skills such as<br />

being able to communicate effectively, adapt to<br />

change, be flexible and coordinate with others<br />

are vital today. The beauty of brushing up on<br />

these skills is that they are transferable across<br />

all different sectors and roles. Think about how<br />

you can practice these in everyday life and then<br />

apply them in the workplace. I believe time<br />

management is one of the most crucial soft skills<br />

that will come in handy throughout your career.<br />

Another goal to enrich your career in the year<br />

ahead is to ask for, and know how to effectively<br />

respond to, feedback. This not only illustrates<br />

your enthusiasm to improve but will also equip<br />

you with the tools you need to achieve success in<br />

your credit role. There is so much you can learn<br />

from those around you and what better way<br />

than to act on the advice they have. Preparing<br />

questions to ask about a task you have completed<br />

is a good way to get detailed and targeted<br />

feedback, which you can refer to going forward.<br />

This ties in to being committed to asking for<br />

help if and when you need it, so you can credit<br />

manage with confidence.<br />

Whilst this list of goals is by no means<br />

extensive, you can apply my advice to any<br />

corner of your career you wish to develop<br />

in the upcoming months. Also, don’t<br />

feel restricted or pressured to only<br />

set goals at the start of the year; this<br />

is something you can utilise at any<br />

point in time. Considering which<br />

professional goals you want to<br />

strive for is productive in and<br />

of itself, as it’s an opportunity<br />

to assess your strengths and<br />

weaknesses so you ultimately<br />

know how to make progress.<br />

Your future self will thank you<br />

for it!<br />

Natascha Whitehead is Business<br />

Director of Hays Credit Management.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 60

Switch to Direct Debit<br />

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Serrala<br />

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Manage your own cashflow<br />

Simply scan the code below using<br />

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Peterborough PE2 6XS<br />

Another reason to be a member<br />

Make the switch to Direct Debit<br />

For details contact: info@cicm.com<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 61

CI<strong>CM</strong> TRAINING<br />

Training courses that offer high-quality approaches<br />

to credit-related topics and practical skills<br />

Now, more than ever, the Credit Management and Collections industry is<br />

seeing drastic changes and impacts that affect the day-to-day roles of Credit<br />

and Collections teams.<br />

CI<strong>CM</strong> Training offers high-quality approaches to credit-related topics.<br />

Granting you the practical skills and necessary tools to use in your workplace<br />

and the ever-changing industry. A highly qualified trainer, with an array of<br />

credit management experience, will grant you the knowledge, improved<br />

results, and greater confidence you need for your teams to succeed in the<br />

Credit Management profession.<br />

Get trained with your<br />

professional body and the only<br />

Chartered organisation that delivers<br />

Credit Management training<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 62

On-Demand | Online | Face-to-Face<br />


CI<strong>CM</strong> Training courses can be delivered through a variety of<br />

options, ensuring a range of opportunities for your teams to<br />

be trained on the most up-to-date methods in the industry.<br />

CI<strong>CM</strong> On-Demand<br />

Training<br />

CI<strong>CM</strong> Online<br />

Training<br />

CI<strong>CM</strong> Face-to-Face<br />

Training<br />

On-Demand training can be viewed anytime, anywhere with our<br />

downloadable training videos.<br />

Online training will be for those who find it easy to learn from the space<br />

of their home or office.<br />

Face-to-face training It’s been a long time coming but now you can mingle<br />

and learn together in the same room as your colleagues and peers.<br />


CI<strong>CM</strong> have a collection of training courses to meet the needs of your Credit and<br />

Collections’ teams. Take a look at the courses below and start training towards the<br />

CI<strong>CM</strong> Professional Standard.<br />

Advanced Skills in Collections • Best Practice Approach to Collections<br />

Best Practice Skills to Assess Credit Risk • Collect that Cash • Credit Bootcamp Effective<br />

Communication in the Credit Role • Emergency Guide to Credit<br />

Harness your leadership Style • Know Your Customer • Managing Insolvency<br />

Reflect and Develop • Set Targets that Work<br />

For more details, visit our website, scan the barcode<br />

or contact us at info@cicm.com<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 63


ON HOLD<br />

The latest late payment data puts a pause on recent<br />

positive performances across the board.<br />

AFTER recent improvement across regions<br />

and sectors in the UK and Ireland, the<br />

latest late payment data is more of a<br />

reality check, with some reductions<br />

mixed with a number of increases across<br />

the board. The average Days Beyond<br />

Terms (DBT) across regions and sectors in the UK<br />

increased by 3.9 and 2.3 days respectively. In Ireland,<br />

the regional figure dropped by 6.4 days, while the sector<br />

figure saw a reduction of 2.0 days. Average DBT across<br />

the four provinces of Ireland increased by 1.0 day.<br />


The UK sector standings are rather one-sided, with 18<br />

of the 22 sectors moving backwards with increases to<br />

late payments. The Mining and Quarrying sector saw<br />

the biggest increase, with a jump of 7.9 days taking its<br />

overall DBT to 30.3 days which means it is now the worst<br />

performing sector in the UK. Elsewhere, the Education<br />

(+6.1 days), Financial and Insurance (+5.2 days), Water<br />

and Waste (+5.1 days) and Wholesale and Retail Trade<br />

(+5.1 days), Repair of Motor Vehicles and Motorcycles<br />

(+5.1 days) sectors all saw increases in late payments.<br />

Over in Ireland it’s more of a mixed bag – just under<br />

half (nine) of the 20 sectors saw increases to DBT, six<br />

sectors made reductions to late payments and five saw<br />

no change at all. Focussing on the positives, the Real<br />

Estate sector made the biggest strives forward, reducing<br />

its DBT by an impressive 57.5 days. Also improving is<br />

The Other Services sector, which includes dry cleaners,<br />

hairdressers and other beauty services through to<br />

membership organisations, which cut DBT by 24.0 days<br />

and Education sector which reduced late payments by<br />

15.9 days.<br />

AUTHOR – Rob Howard<br />


As with the sector standings, the UK regional data does<br />

not make for pleasant reading, with 10 of the 11 regions<br />

seeing increases to late payments. The West Midlands<br />

saw the biggest rise, with an increase of 8.2 days to<br />

its DBT, while an increase of 5.8 days means London<br />

remains the worst performing region. East Anglia was<br />

the only bright spot, reducing its DBT by 0.3 days.<br />

The regional figures in Ireland are mostly<br />

encouraging, with half of the 26 counties making<br />

improvements to late payment performance, some of<br />

which are significant reductions. Wicklow remains the<br />

worst performing county, but is at least moving in the<br />

right direction, with a hefty reduction of 41.6 days to<br />

its overall DBT. Longford, Louth and Kilkenny are all<br />

also improving, cutting DBT by 40.1 days, 33.5 days and<br />

31.1 days respectively. Donegal, Leitrim, Limerick and<br />

Tipperary top the standings, all with an overall DBT of<br />

zero days.<br />

Across the four Irish provinces, despite a small<br />

increase of 0.1 days, Munster remains the best<br />

performing province. Connacht saw the biggest jump,<br />

with an increase of 5.7 days to its DBT. Ulster was the<br />

only province to improve, reducing its DBT by 1.8 days.<br />

Repair of Motor Vehicles and<br />

Motorcycles (+5.1 days) sectors all<br />

saw increases in late payments.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 64


Data supplied by the Creditsafe Group<br />

Top Five Prompter Payers<br />

Region Jan-23 Change from Dec-22<br />

South West 11.3 2.9<br />

Yorkshire and Humberside 12.7 2.3<br />

South East 14.2 2.4<br />

North West 15.2 4.8<br />

Wales 16 5<br />

Bottom Five Poorest Payers<br />

Region Jan-23 Change from Dec-22<br />

London 19.8 5.8<br />

West Midlands 19.6 8.2<br />

Scotland 17.6 4.9<br />

East Anglia 17.3 -0.4<br />

East Midlands 16.9 4.3<br />

Top Five Prompter Payers<br />

Sector Jan-23 Change from Dec-22<br />

Hospitality 7.1 1<br />

Entertainment 8.9 3.1<br />

Business from Home 9.7 -4.2<br />

Energy Supply 10.4 0.9<br />

Transportation and Storage 12.1 3.6<br />

Bottom Five Poorest Payers<br />

Sector Jan-23 Change from Dec-22<br />

Mining and quarrying 30.3 7.9<br />

IT and Comms 24.9 2.3<br />

Business admin and support 19.3 3.9<br />

Dormant 18.8 2.1<br />

International bodies 18.1 -3.1<br />

Getting worse<br />

Mining and quarrying 7.9<br />

Education 6.1<br />

Financial and insurance 5.2<br />

Water and waste 5.1<br />

Repair of vehicles and motorcycles 5.1<br />

Construction 4.8<br />

Business admin and support 3.9<br />

Transportation and storage 3.6<br />

Entertainment 3.1<br />

Professional and scientific 2.9<br />

Other service 2.2<br />

Public administration 2.2<br />

Dormant 2.1<br />

Hospitality 1<br />

Energy supply 0.9<br />

Agriculture forestry and fishing 0.1<br />

Manufacturing 0.1<br />

Getting better<br />

Business from Home -4.2<br />

International bodies -3.1<br />

Real estate -2.4<br />


4.9 DBT<br />



3 DBT<br />

SOUTH<br />

WEST<br />

2.9 DBT<br />

WALES<br />

5 DBT<br />

NORTH<br />

WEST<br />

4.8 DBT<br />

WEST<br />


8.2 DBT<br />



2.3 DBT<br />

EAST<br />


4.3 DBT<br />

LONDON<br />

5.8 DBT<br />

SOUTH<br />

EAST<br />

2.4 DBT<br />

EAST<br />

ANGLIA<br />

-0.4 DBT<br />

Region<br />

Getting Better – Getting Worse<br />

8.2<br />

5.8<br />

5<br />

4.9<br />

4.8<br />

4.3<br />

3<br />

2.9<br />

2.4<br />

2.3<br />

-0.4<br />

West Midlands<br />

London<br />

Wales<br />

Scotland<br />

North West<br />

East Midlands<br />

Northern Ireland<br />

South West<br />

South East<br />

Yorkshire and Humberside<br />

East Anglia<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 65


Getting worse<br />

ULSTER<br />

8.2 DBT<br />

Repair of motor motorcycles 18.1<br />


0 DBT<br />


15.9 DBT<br />


0 DBT<br />


76 DBT<br />



22.9 DBT<br />


66.9 DBT<br />


1 DBT<br />

LOUTH<br />

0 DBT<br />

Business admin and support 17.6<br />

Manufacturing 13.4<br />

IT and comms 12<br />

Energy supply 8<br />

Transportation and storage 7.3<br />


-7.7 DBT<br />

KERRY<br />

-1.1 DBT<br />


0 DBT<br />


58.9 DBT<br />


78.4 DBT<br />

Hospitality 6<br />

Construction 3.7<br />

Professional and scientific 0.7<br />

Top Five Prompter Payers – Ireland<br />

Region Jan-23 Change from Dec-22<br />

Donegal 0 -20<br />

Leitrim 0 0<br />

Limerick 0 -0.8<br />

Tipperary 0 0<br />

Westmeath 1 0<br />

Bottom Five Poorest Payers – Ireland<br />

Region Jan-23 Change from Dec-22<br />

Wicklow 78.4 -41.6<br />

Monaghan 76 0<br />

Longford 66.9 -40.1<br />

Kilkenny 58.9 -31.1<br />

Waterford 47 0<br />

Top Four Prompter Payers – Northern Ireland<br />

Region Jan-23 Change from Dec-22<br />

Munster 7.7<br />

Ulster 8.2<br />

Connacht 15.9<br />

Leinster 22.9<br />

Getting better<br />

Real estate -57.5<br />

Other service -24<br />

Education -15.9<br />

Health and social -13<br />

Mining and quarrying -11.9<br />

Financial and insurance -3.8<br />

Nothing changed<br />

Agriculture forestry and fishing 0<br />

Entertainment 0<br />

International bodies 0<br />

Public administration 0<br />

Top Five Prompter Payers – Ireland<br />

Water and Waste 0<br />

Sector Jan-23 Change from Dec-22<br />

International Bodies 0 0<br />

Entertainment 1 0<br />

Agriculture forestry and fishing 4 0<br />

Mining and quarrying 7.6 -11.9<br />

Education 8.1 -15.9<br />

Bottom Five Poorest Payers – Ireland<br />

Sector Jan-23 Change from Dec-22<br />

Water and waste 120 0<br />

Other service 42 -24<br />

Energy Supply 34 8<br />

Repair of vehicles and motorcycles 33.8 18.1<br />

Construction 29.2 3.7<br />

Focussing on the<br />

positives, the Real Estate<br />

sector made the biggest<br />

strives forward, reducing<br />

its DBT by an impressive<br />

57.5 days.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 66


Booking your<br />

exams has never<br />

been easier<br />

Head over to our new exam pages<br />

for all the information you need to prepare,<br />

book and take your CI<strong>CM</strong> exams<br />

www.cicm.com/exams/<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 67





Birmingham, up to £28k + annual bonus<br />

A large organisation based in South Birmingham is currently<br />

recruiting a Credit Controller on a permanent basis. Reporting to<br />

the Credit Manager, you will be responsible for maximising the<br />

collection of debt and providing remedial solutions to ensure<br />

overdue debt and collections are achieved in line with targets.<br />

Ref: 4359175<br />

Contact Henry Brook on 0333 010 7517<br />

or henry.brook@hays.com<br />


Essex (95% remote working available), £45k-£53k<br />

An exciting new position working for a local authority who<br />

are at the beginning of a positive transformation period.<br />

This role will work alongside the senior management team<br />

in the development of the collection processes across a<br />

number of revenue streams. You will oversee a team of<br />

around 10 covering all billing administration and collections<br />

for income tax and business rates. This is a great opportunity<br />

within a progressive organisation. Ref: 4360768<br />

Contact Will Plom on 01603 760141<br />

or william.plom@hays.com<br />


London, £28k + career progression<br />

An amazing opportunity to join an ever-growing tech firm<br />

based near Neasdon. You will be joining a team of two,<br />

reporting to the Finance Manager in this office-based position.<br />

The successful candidate will have experience within credit<br />

control, ideally dealing with large customers and have<br />

intermediate excel skills (VLOOK UPS and Pivot tables).<br />

Ref: 4352347<br />

Contact Hussain Ahmed on 0333 010 7453<br />

or hussain.ahmed@hays.com<br />


Belfast City Centre, up to £13.61/hour<br />

(temp 3 months with potential for extension and permanency)<br />

We’re excited to be working with a reputable housing<br />

organisation based in Belfast City Centre to find a personable<br />

candidate to join their busy income recovery team. The role will<br />

include monitoring and logging arrears, liaising with housing<br />

officers to reduce tenant debt, incoming and outgoing calls<br />

with tenants and office guidance. We’re looking for someone<br />

with experience with credit control and a friendly demeanour.<br />

Ref: 4360662<br />

Contact Charlotte McCusker on 0333 010 2730<br />

or charlotte.mccusker@hays.com<br />

hays.co.uk/creditcontrol<br />

© Copyright Hays plc <strong>2023</strong>. The HAYS word, the H devices, HAYS WORKING Brave | Curious FOR YOUR | Resilient TOMORROW / www.cicm.com and Powering the / <strong>March</strong> world of <strong>2023</strong> work / and PAGE associated xx logos and artwork are trademarks of Hays plc.<br />

The H devices are original designs protected by registration in many countries. All rights are reserved. <strong>CM</strong>-1149351241


South Queensferry, Edinburgh, £24k<br />

An established private sector organisation located on the<br />

outskirts of Edinburgh, are looking for a credit management<br />

assistant to join their team on a 6-month fixed term contract<br />

with immediate effect. They are looking for a highly motivated<br />

and confident individual to assist with maintaining the accounts<br />

receivable ledger and database. This is an excellent opportunity<br />

for a junior credit controller who wants to expand their knowledge<br />

and expertise, as limited prior experience is required.<br />

Ref: 4358389<br />

Contact Ross Jardine on 0131 603 8374<br />

or ross.jardine@hays.com<br />


Woking, up to £28k pro rata<br />

Working as part of a friendly team, you will handle both consumer<br />

and commercial debt, chasing and collecting payments in line<br />

with agreed terms. In this varied role you will also deal with<br />

resolving customer queries, payment allocation, reporting and<br />

keeping records updated. Working between 21-30 hours a week,<br />

there is flexibility regarding working days and how the hours are<br />

made up. Ref: 4342004<br />

Contact Natascha Whitehead on 07770 786433<br />

or natascha.whitehead@hays.com<br />

This is just a small selection of the many opportunities<br />

we have available for credit professionals. To find out<br />

more, visit our website or contact Natascha Whitehead,<br />

Credit Management UK Lead at Hays on 07770 786433.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE xx


Need to Go Legal? – How to Get it Right<br />

Annual Sheffield & District Branch<br />

ON a chilly Tuesday<br />

evening, Sheffield &<br />

District Branch members<br />

and guests entered<br />

through the iron gates<br />

into the historic Sheffield<br />

Town Hall. We ascended to the first floor,<br />

by lift, to find the conference room which<br />

is dominated by a huge oval antique<br />

table surrounded by age worn red leather<br />

embossed chairs, all of which is encased<br />

by wood panelling, grand bookcases<br />

and in-between ornate windows looking<br />

onto Sheffield’s Peace Gardens. A very<br />

impressive old room, not often seen by<br />

members of the public.<br />

Upon arrival, members and guests<br />

were greeted by committee members<br />

and enjoyed a delicious buffet supper<br />

whilst networking prior to taking their<br />

seats around the conference table for<br />

the feature presentations. Branch Chair,<br />

Jamie Thornton, welcomed everyone and<br />

then presented the first CI<strong>CM</strong> Sheffield<br />

& District Branch Student Prize to Vicky<br />

Selvester. Many congratulations to<br />

Vicky for coming top in her CI<strong>CM</strong> Level<br />

3 Diploma Mandatory Unit in 2022,<br />

receiving a certificate of achievement<br />

and cheque for her prize award of £150.<br />

Jamie then introduced our guest speaker<br />

of the evening – Solicitor, Carl Jones of<br />

MD Law.<br />

Carl gave a brief introduction covering<br />

his background and his other roles and<br />

then walked us through how we can get<br />

it right should we need to go legal with a<br />

debt matter. Carl stressed the importance<br />

and the foundation of customer due<br />

diligence, whether the contract is written<br />

and terms included, pre-action steps,<br />

insolvency proceedings, issuing a claim,<br />

top tips including getting interest right,<br />

setting out the claim and timescales, and<br />

the lesser-known enforcement options<br />

available. Carl also covered how to get<br />

a personal guarantee correct, causing<br />

the Statute of Frauds (1677) Act to be<br />

mentioned – yes, that’s right – 1677!<br />

Unfortunately, time only allowed for<br />

a quick canter through retention of title<br />

at the end. Experiences were shared and<br />

many questions were asked by members<br />

throughout the presentation, which was<br />

very informative and easy to understand.<br />

Branch Chair, Jamie Thornton, thanked<br />

Carl for his engaging presentation before<br />

announcing a short break allowing<br />

further networking before our guest<br />

speaker, guests and some members<br />

departed the meeting, being escorted<br />

through the deserted building by a<br />

member of staff, with some lucky people<br />

taking a peek into the Council Chamber.<br />

Jamie then brought the meeting<br />

back to order and opened the AGM. He<br />

dealt with the formalities of apologies,<br />

approval of the 2022 AGM Minutes,<br />

approval of the 2022 Branch Financial<br />

Report, nominations and elections of<br />

Committee members for <strong>2023</strong> and then<br />

a review of the 2022 branch events and<br />

preview of the next <strong>2023</strong> event. The final<br />

item of the AGM was Any Other Business<br />

where the committee thanked Andrew<br />

Walker of Sharp Consultancy for his work<br />

and support since joining the committee<br />

in May 2022, prior to his formal election<br />

in January <strong>2023</strong> and some background<br />

was given to the CI<strong>CM</strong> Sheffield &<br />

District Branch Student Prize. As all<br />

official business had been concluded, the<br />

meeting was closed.<br />

Many thanks to Carl Jones of MD Law<br />

(who will be back by popular demand<br />

in the future) for his presentation and<br />

to all attending members and guests for<br />

making the evening a great success.<br />

Author: Paula Uttley, Vice Chair &<br />

Treasurer of Sheffield & District Branch.<br />

PRIOR to the AGM, Annabel Gray, a<br />

Director from event hosts RSM Creditor<br />

Solutions, gave a detailed assessment<br />

of the state of the economy and the<br />

insolvency landscape. Annabel outlined<br />

the slump in insolvencies during the<br />

COVID pandemic, the steep increase to<br />

current levels, and forecasted a fall from<br />

mid-<strong>2023</strong>.<br />

Super preferential status had resulted<br />

in a significant hardening of HMRC’s<br />

attitude in recent months towards<br />

companies that do not file returns, who<br />

do not communicate with them or who<br />

default on payment plans. The appetite<br />

of lenders had also changed although<br />

this had not yet led to insolvencies. She<br />

talked through the position on director<br />

disqualifications, on Phoenix companies,<br />

Insolvency Update<br />

Annual East of England Branch<br />

and stressed the dangers of assessing<br />

credit risk from a single source.<br />

Many questions were answered, and<br />

Chairman Atul Vadher thanked Annabel<br />

for her informative update.<br />

Atul reported that during 2022 the<br />

Branch held 11 virtual committee<br />

meetings and 2 webinars on changes<br />

since the pandemic, and on corporate<br />

insolvencies.<br />

During the year, Lyn Commons<br />

had resigned from the committee and<br />

Atul thanked her for her significant<br />

contribution, particularly in the fivefold<br />

increase in Branch LinkedIn members.<br />

Steve Walsh and Lorna Westgarth-Pearce<br />

had joined the committee. All ten existing<br />

committee members were re-elected and<br />

joined by Sean Frisby. Posts were assigned<br />

to every committee member.<br />

The committee resolved to continue<br />

organising webinars for the benefit of<br />

members and also to recommence “in<br />

person” events following the pandemic.<br />

The next event will be hosted virtually<br />

on Wednesdayn 15 February. The<br />

following event will also be held virtually,<br />

titled “Credit recruitment and salary<br />

trends – What you need to know in <strong>2023</strong>”<br />

by William Plom on Wednesday 15 <strong>March</strong>.<br />

Atul Vadher thanked RSM Creditor<br />

Solutions for their generous hospitality,<br />

everyone for attending and the committee<br />

for their work over the year.<br />

Author: Liam Hastings<br />

CI<strong>CM</strong> East of England committee<br />

member.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 70



Keep an eye on our events calendar at CI<strong>CM</strong>.COM for all CI<strong>CM</strong> events!<br />

Visit our website and book online at: www.cicm.com/cicm-events<br />

Many of our events are now<br />

available online, along with a new<br />

series of live recorded webinars<br />

for the credit profession.<br />

Visit our website for updates<br />

and instructions on how to register...<br />

Advancing the credit profession / www.cicm.com / October 2021 / PAGE 57

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Our debt recovery track record is second to none<br />

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More Authorised HCEOs than any other with over<br />

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Excellent client service and agents covering all<br />

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To find out more or instruct us<br />

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Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 72


Strategic Thinking<br />

The importance of a formal D&I strategy, the<br />

consequences of delaying an appeal, and unamigous<br />

settlement agreements.<br />

A<br />

report prepared by CIPD,<br />

Inclusion at work 2022, recorded<br />

various findings relating to<br />

diversity and inclusion in the<br />

workplace.<br />

The report is based on<br />

information from 2,009 decision makers in UK<br />

employers and highlights that only 48 percent<br />

have a stand-alone diversity and inclusion<br />

strategy, and that of those employers with a<br />

strategy, 18 percent take no steps to actually<br />

monitor its effectiveness.<br />

The document also found that a significant<br />

number of organisations appear to have an<br />

ad-hoc approach to diversity and inclusion,<br />

only responding when a problem or a need<br />

AUTHOR – Gareth Edwards<br />

❝<br />

47 percent of<br />

those surveyed said<br />

their organisations<br />

don’t have a formal<br />

strategy or action<br />

plan on diversity and<br />

inclusion.<br />

❝<br />

arises. 47 percent of those surveyed said their<br />

organisations don’t have a formal strategy or<br />

action plan on diversity and inclusion.<br />

The CIPD has made seven recommendations<br />

to improve and strengthen diversity and<br />

inclusion practices. They are to build a longterm<br />

plan and track its progress; collect and<br />

use data to inform the approach to diversity and<br />

inclusion; assess the organisation's approach<br />

to people management from a diversity and<br />

inclusion perspective; empower and train<br />

managers on diversity and inclusion; support<br />

leaders to champion diversity and inclusion as<br />

role models; tailor the approach to diversity and<br />

inclusion to suit the organisation; and maintain<br />

focus on the long-term aims.<br />

Time limits in the tribunal system…<br />

THE case of Anghel v Middlesex University<br />

highlights how even short delays can have<br />

serious consequences.<br />

Ms Anghel's employment tribunal claim<br />

against the University was unsuccessful<br />

and she sought to lodge an appeal with<br />

the Employment Appeal Tribunal (EAT).<br />

Under the EAT rules a party has 42 days<br />

to appeal a decision. In this case, the<br />

appeal time limit expired on 16 February<br />

2021. Anghel had filed her appeal notice<br />

by email on 9 February with several<br />

attachments. These documents were<br />

inaccessible to the EAT's administration<br />

Claims caught by agreement wording<br />

THE case of Arvunescu v Quick Release<br />

looks at whether an employee had<br />

waived his rights to claim victimisation<br />

by entering into a settlement agreement.<br />

Mr Arvunescu was employed by<br />

Quick Release for a short period of time<br />

between May and June 2014. When<br />

his employment ended, he bought a<br />

race discrimination claim against the<br />

company. His claim was settled when the<br />

parties entered into a COT3 agreement<br />

on 1 <strong>March</strong> 2018.<br />

In May 2018 Arvunescu brought a<br />

new victimisation claim against Quick<br />

Release. He alleged that in February<br />

2018 Quick Release had prevented him<br />

getting a job with a subsidiary company<br />

team, who informed her of this on 16<br />

February. Anghel re-sent the documents<br />

that day, but her original grounds of claim<br />

were missing. These were not sent until<br />

17 February. Her appeal was therefore not<br />

properly instituted until 17 February and<br />

therefore out of time. Anghel applied for<br />

an extension of time which was refused.<br />

The EAT found that the grounds<br />

of claim were essential to the proper<br />

institution of her appeal and were sent<br />

after the deadline. Anghel had made an<br />

assumption without checking or taking the<br />

necessary care to ensure that her appeal<br />

in Germany on the basis that he had<br />

previously brought a discrimination<br />

claim against Quick Release.<br />

Quick Release argued that Arvunescu<br />

could not bring the claim because it fell<br />

within the scope of the COT3 agreement.<br />

The COT3 contained fairly standard<br />

settlement wording waiving all claims<br />

"arising directly or indirectly out of<br />

or in connection with (Arvunescu's)<br />

employment with (Quick Release), its<br />

termination or otherwise."<br />

The Employment Tribunal and<br />

Employment Appeal Tribunal found in<br />

favour of Quick Release and Arvunescu<br />

appealed to the Court of Appeal.<br />

The Court of Appeal rejected<br />

was submitted properly and in time. The<br />

EAT concluded that litigants in person<br />

are not entitled to any greater leniency<br />

than those parties who are represented,<br />

and that a genuine error or oversight was<br />

not enough to justify an extension of time<br />

in this case. The EAT noted that it is the<br />

responsibility of the parties to ensure they<br />

have complied with deadlines, and it was<br />

not the responsibility of the EAT nor their<br />

administration team to point out errors in<br />

appeal notice or defects in compliance.<br />

Arvunescu’s appeal. It held that the<br />

wording of the COT3 was not ambiguous,<br />

and the victimisation claim did arise<br />

indirectly in connection with Arvunescu’s<br />

employment with Quick Release. The<br />

Court of Appeal held that therefore his<br />

claim had already been settled under the<br />

terms of the COT3.<br />

It is always important for employers<br />

to carefully consider the contents of<br />

any settlement agreement and clearly<br />

understand what claims are being<br />

waived. Employers will usually want to<br />

prepare the first draft of any agreement.<br />

Gareth Edwards is a partner in the<br />

employment team at VWV.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 73

View our digital version online at www.cicm.com<br />

Log on to the Members’ area, and click on the tab labelled<br />

‘Credit Management magazine’<br />

Just another great reason to be a member<br />

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

CI<strong>CM</strong> membership, as well as additional subscribers<br />

Brave | Curious | Resilient<br />

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

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />




Controlaccount<br />

Address: Compass House, Waterside, Hanbury Road,<br />

Bromsgrove, Worcestershire B60 4FD<br />

T: 01527 386 610<br />

E: sales@controlaccount.com<br />

W: www.controlaccount.com<br />

Controlaccount has been providing efficient, effective and<br />

ethical pre-legal debt recovery for over forty years. We help our<br />

clients to improve internal processes and increase cashflow,<br />

whilst protecting customer relationships and established<br />

reputations. We have long-standing partnerships with leading,<br />

global brand names, SMEs and not for profits. We recover<br />

over 30,000 overdue invoices each month, domestically and<br />

internationally, on a no collect, no fee arrangement. Other<br />

services include credit control and dunning services, international<br />

and domestic trace and legal recoveries. All our clients have<br />

full transparency on any accounts placed with us through our<br />

market leading cloud-based management portal, ClientWeb.<br />

BlaserMills Law<br />

High Wycombe | Amersham | Marlow | Silverstone<br />

Rickmansworth | London<br />

Jackie Ray : 07802 332104 | 01494 478660<br />

jar@blasermills.co.uk<br />

Nina Toor : 01494 478661 nit@blasermills.co.uk<br />

Edward Bible : 07766 013352 ceb@blasermills.co.uk<br />

www.blasermills.co.uk<br />

Commercial Recoveries & Insolvency<br />

Blaser Mills Law’s commercial recoveries team is internationally<br />

recognised, regularly advising large corporations, multinationals<br />

and SMEs on pre-legal collections, debt recovery, commercial<br />

litigation, dispute resolution and insolvency. Our legal services<br />

are both cost-effective and highly efficient; Our lawyers are also<br />

CI<strong>CM</strong> qualified and ranked in the industry leading law firm rankings<br />

publications, Legal 500 and Chambers UK.<br />

identeco – Business Support Toolkit<br />

Compass House, Waterside, Hanbury Road, Bromsgrove,<br />

Worcestershire B60 4FD<br />

Telephone: 01527 386 607<br />

Email: info@identeco.co.uk<br />

Web: www.identeco.co.uk<br />

identeco Business Support Toolkit provides company details<br />

and financial reporting for over 4m UK companies and<br />

business. Subscribers can view company financial health and<br />

payment behaviour, credit ratings, shareholder and director<br />

structures, detrimental data. In addition, subscribers can also<br />

download unlimited B2B marketing and acquisition reports.<br />

Annual subscription is only £79.95. Other services available<br />

to subscribers include AML and KYC reports, pre-litigation<br />

screening, trace services and data appending, as well as many<br />

others.<br />


Global Credit Recoveries<br />

GCR 20-22 Wenlock Road,<br />

London N1 7GU<br />

Charles Mayhew FCI<strong>CM</strong> or Joshua Mayhew ACI<strong>CM</strong><br />

T: +44 (0) 203 368 8630<br />



Shortlisted as DCA of the Year, by the CI<strong>CM</strong>, for the British Credit<br />

Awards, Global Credit Recoveries Ltd are specialists in Arbitration<br />

and Debt Collection globally.<br />

We specialise in the UK, Europe, The Middle East and the U.S.A,<br />

working as an extension of many CI<strong>CM</strong> members companies for<br />

over 28 years.<br />

Speak with us today in our London or Dubai offices, to see how<br />

we can assist you.<br />

We have the ability, and network, to have someone visiting your<br />

debtors offices, throughout EMEA, within 72 hours.<br />

Recovering funds globally, on a No-Recovery, No-Fee basis.<br />

Guildways<br />

T: +44 3333 409000<br />

E: info@guildways.com<br />

W: www.guildways.com<br />

Guildways is a UK & International debt collection specialist with over<br />

25 years experience. Guildways prides itself on operating to the<br />

highest ethical standards and professional service levels. We are<br />

experienced in collecting B2B and B2C debts. Our service includes:<br />

• A complete No collection, No Fee commission based service<br />

• 10% plus VAT commission for UK debts<br />

• Commission from 22% plus VAT for International debts<br />

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

• Direct online account-to-account payments, to speed up<br />

collections and minimise costs<br />

If you are unable to locate your customer, we also offer a no trace, no<br />

fee, trace and collect service.<br />

For more information, visit: www.guildways.com<br />

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />

Lovetts Solicitors<br />

Lovetts, Bramley House, The Guildway,<br />

Old Portsmouth Road,<br />

Guildford, Surrey, GU3 1LR<br />

T: 01483 347001<br />

E: info@lovetts.co.uk<br />

W: www.lovetts.co.uk<br />

With more than 25yrs experience in UK & international business<br />

debt collection and recovery, Lovetts Solicitors collects £40m+<br />

every year on behalf of our clients. Services include:<br />

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

of cases)<br />

• Advice and dispute resolution<br />

• Legal proceedings and enforcement<br />

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

CaseManager<br />

Don’t just take our word for it, here’s some recent customer<br />

feedback: “All our service expectations have been exceeded.<br />

The online system is particularly useful and extremely easy to<br />

use. Lovetts has a recognisable brand that generates successful<br />

results.”<br />


CoCredo<br />

Missenden Abbey, Great Missenden, Bucks, HP16 0BD<br />

T: 01494 790600<br />

E: customerservice@cocredo.com<br />

W: www.cocredo.co.uk<br />

For over 20 years, CoCredo, as one of the UK's leading Credit<br />

Report companies, has helped protect thousands of customers<br />

from bad debt. Our data is compiled and constantly updated from a<br />

variety of prominent UK and international suppliers, encompassing<br />

230 countries, so that our clients can access the latest available<br />

information in an easy-to-read report. We offer tailored products<br />

and service solutions, from market-leading Dual Reports and<br />

integrated XML solutions, monitoring and delivering flexible 'data<br />

on the go' package options that reduce costs and boost cash flow.<br />

Our clients feel valued that we are a part of their customer journey<br />

and we have consistently been finalists and winners of numerous<br />

Small Business and Credit Awards since 2014.<br />

We provide award-winning customer service which is reflected in<br />

our client retention rate of 99%.<br />

HighRadius<br />

T: +44 (0) 203 997 9400<br />

E: infoemea@highradius.com<br />

W: www.highradius.com<br />

HighRadius provides a cloud-based Integrated Receivable<br />

Platform, powered by machine learning and AI. Our Technology<br />

empowers enterprise organisations to reduce cycle time in the<br />

order-to-cash process and increase working capital availability by<br />

automating receivables and payments processes across credit,<br />

electronic billing and payment processing, cash application,<br />

deductions, and collections.<br />

Tinubu Square UK<br />

Holland House, 4 Bury Street,<br />

London EC3A 5AW<br />

T: +44 (0)207 469 2577 /<br />

E: uksales@tinubu.com<br />

W: www.tinubu.com<br />

Founded in 2000, Tinubu Square is a software vendor, enabler<br />

of the Credit Insurance, Surety and Trade Finance digital<br />

transformation.<br />

Tinubu Square enables organizations across the world to<br />

significantly reduce their exposure to risk and their financial,<br />

operational and technical costs with best-in-class technology<br />

solutions and services. Tinubu Square provides SaaS solutions<br />

and services to different businesses including credit insurers,<br />

receivables financing organizations and multinational corporations.<br />

Tinubu Square has built an ecosystem of customers in over 20<br />

countries worldwide and has a global presence with offices in<br />

Paris, London, New York, Montreal and Singapore.<br />

Credica Ltd<br />

Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT<br />

T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk<br />

Our highly configurable and extremely cost effective Collections<br />

and Query Management System has been designed with 3 goals<br />

in mind:<br />

•To improve your cashflow • To reduce your cost to collect<br />

• To provide meaningful analysis of your business<br />

Evolving over 15 years and driven by the input of 1000s of<br />

Credit Professionals across the UK and Europe, our system is<br />

successfully providing significant and measurable benefits for our<br />

diverse portfolio of clients.<br />

We would love to hear from you if you feel you would benefit from<br />

our ‘no nonsense’ and human approach to computer software.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 75

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />




Blackline<br />

33 Charlotte St, London W1T 1RR<br />

T: +44 (0) 203 318 5941<br />

E: sales@blackline.com<br />

W:www.blackline.com/solutions/accounts-receivableautomation/<br />

Transform and modernize your accounts receivable processes.<br />

Release cash from customers using next-generation intelligent<br />

AR automation. Optimize working capital by driving world-class<br />

order-to-cash processes and leverage 'decision intelligence' to<br />

drive better business outcomes.<br />

Cash Application AR Intelligence<br />

Credit & Risk Management<br />

Collections Management<br />

Disputes & Deductions Management<br />

Team & Task Management<br />

ESKER<br />

Sam Townsend Head of Marketing<br />

Northern Europe Esker Ltd.<br />

T: +44 (0)1332 548176 M: +44 (0)791 2772 302<br />

W: www.esker.co.uk LinkedIn: Esker – Northern Europe<br />

Twitter: @EskerNEurope blog.esker.co.uk<br />

Esker’s Accounts Receivable (AR) solution removes the all-toocommon<br />

obstacles preventing today’s businesses from collecting<br />

receivables in a timely manner. From credit management to cash<br />

allocation, Esker automates each step of the order-to-cash cycle.<br />

Esker’s automated AR system helps companies modernise<br />

without replacing their core billing and collections processes. By<br />

simply automating what should be automated, customers get the<br />

post-sale experience they deserve and your team gets the tools<br />

they need.<br />

High Court Enforcement Group Limited<br />

Client Services, Helix, 1st Floor<br />

Edmund Street, Liverpool<br />

L3 9NY<br />

T: 08450 999 666<br />

E: clientservices@hcegroup.co.uk<br />

W: hcegroup.co.uk<br />

Putting creditors first<br />

We are the largest independent High Court enforcement company,<br />

with more authorised officers than anyone else. We are privately<br />

owned, which allows us to manage our business in a way that<br />

puts our clients first. Clients trust us to deliver and service is<br />

paramount. We cover all aspects of enforcement – writs of control,<br />

possessions, process serving and landlord issues – and are<br />

committed to meeting and exceeding clients’ expectations.<br />

Reduce or eliminate manual tasks, and enable AR teams to<br />

focus on actions that drive results. Strengthen decision<br />

intelligence to deliver significant value to the organization<br />

by harnessing BlackLine’s ground-breaking AR Intelligence<br />

module - unlock hidden data in Accounts Receivable processes<br />

and understand customer behaviours in real time.<br />

For more information and a free instant ROI calculation for AR<br />

visit https://www.blackline.com/solutions/accounts-receivableautomation/<br />

Data Interconnect Ltd<br />

45-50 Shrivenham Hundred Business Park,<br />

Majors Road, Watchfield. Swindon, SN6 8TZ<br />

T: +44 (0)1367 245777<br />

E: sales@datainterconnect.co.uk<br />

W: www.datainterconnect.com<br />

We are dedicated to helping finance teams take the cost,<br />

complexity and compliance issues out of Accounts Receivable<br />

processes. Corrivo is our reliable, easy-to-use SaaS platform<br />

for the continuous improvement of AR metrics and KPIs in a<br />

user-friendly interface. Credit Controllers can manage more<br />

accounts with better results and customers can self-serve on<br />

mobile-responsive portals where they can query, pay, download<br />

and view invoices and related documentation e.g. Proofs of<br />

Delivery Corrivo is the only AR platform with integrated invoice<br />

finance options for both buyer and supplier that flexes credit<br />

terms without degrading DSO. Call for a demo.<br />

ContactEngine<br />

A NICE Company<br />

Email: info@contactengine.com<br />

Website: www.contactengine.com<br />

ContactEngine is a proactive customer engagement platform,<br />

which connects organizations to its customers through AI<br />

powered digital conversations, ​enabling fully automated<br />

customer journeys. The game changer for collections?<br />

Companies can now talk directly with tens of thousands of<br />

people simultaneously. This enables collections treatment<br />

automation using intelligent, natural language conversations,<br />

dynamic engagement strategies, and easy-to-trigger payment<br />

transactions that move the needle and help organisations collect<br />

outstanding debt faster. ContactEngine anticipates the need<br />

to interact with customers and fully automates personalized,<br />

multichannel conversations that engage customers over days,<br />

weeks, months and years to achieve specific milestones or<br />

trigger next steps based on customer responses.<br />

For more information, visit www.contactengine.com/solutions/<br />

collections or email info@contactengine.com<br />


Serrala UK Ltd, 125 Wharfdale Road<br />

Winnersh Triangle, Wokingham<br />

Berkshire RG41 5RB<br />

E: r.hammons@serrala.com W: www.serrala.com<br />

T +44 118 207 0450 M +44 7788 564722<br />

Serrala optimizes the Universe of Payments for organisations<br />

seeking efficient cash visibility and secure financial processes.<br />

As an SAP Partner, Serrala supports over 3,500 companies<br />

worldwide. With more than 30 years of experience and<br />

thousands of successful customer projects, including solutions<br />

for the entire order-to-cash process, Serrala provides credit<br />

managers and receivables professionals with the solutions they<br />

need to successfully protect their business against credit risk<br />

exposure and bad debt loss.<br />


Court Enforcement Services<br />

Adele Whitehurst – Client Relationship Manager<br />

M: +44 (0)7525 119 711 T: +44 (0)1992 367 092<br />

E : a.whitehurst@courtenforcementservices.co.uk<br />

W: www.courtenforcementservices.co.uk<br />

Court Enforcement Services is the market leading and fastest<br />

growing High Court Enforcement company. Since forming in 2014,<br />

we have managed over 100,000 High Court Writs and recovered<br />

more than £187 million for our clients, all debt fairly collected. We<br />

help lawyers and creditors across all sectors to recover unpaid<br />

CCJ’s sooner rather than later. We achieve 39% early engagement<br />

resulting in market-leading recovery rates. Our multi-awardwinning<br />

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

close partnership to expertly resolve matters with a fast, fair and<br />

personable approach. We work hard to achieve the best results<br />

and protect your reputation.<br />


Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />

Gravity Global<br />

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

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

W: www.gravityglobal.com<br />

Gravity is an award winning full service PR and advertising<br />

business that is regularly benchmarked as being one of the<br />

best in its field. It has a particular expertise in the credit sector,<br />

building long-term relationships with some of the industry’s bestknown<br />

brands working on often challenging briefs. As the partner<br />

agency for the Credit Services Association (CSA) for the past 22<br />

years, and the Chartered Institute of Credit Management since<br />

2006, it understands the key issues affecting the credit industry<br />

and what works and what doesn’t in supporting its clients in the<br />

media and beyond.<br />

FORUMS<br />


T: +44 (0)1260 275716<br />

E: info@forumsinternational.co.uk<br />

W: www.forumsinternational.co.uk<br />

Forums International Ltd have been running Credit and Industry<br />

Forums since 1991. We cover a range of industry sectors and<br />

International trading, attendance is for Credit Professionals of all<br />

levels. Our forums are not just meetings but communities which<br />

aim to prepare our members for the challenges ahead. Attending<br />

for the first time is free for you to gauge the benefits and meet the<br />

members and we only have pre-approved Partners, so you will<br />

never intentionally be sold to.<br />



paul@centuryone.uk 01727 739 196<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 76



paul@centuryone.uk 01727 739 196<br />


Menzies<br />

T: +44 (0)2073 875 868 - London<br />

T: +44 (0)2920 495 444 - Cardiff<br />

W: menzies.co.uk/creditor-services<br />

Our Creditor Services team can advise on the best way for you<br />

to protect your position when one of your debtors enters, or<br />

is approaching, insolvency proceedings. Our services include<br />

assisting with retention of title claims, providing representation<br />

at creditor meetings, forensic investigations, raising finance,<br />

financial restructuring and removing the administrative burden<br />

– this includes completing and lodging claim forms, monitoring<br />

dividend prospects and analysing all Insolvency Reports and<br />

correspondence.<br />

For more information on how the Menzies Creditor Services<br />

team can assist, please contact Bethan Evans, Licensed<br />

Insolvency Practitioner, at bevans@menzies.co.uk or call<br />

+44 (0)2920 447 512.<br />

Red Flag Alert Technology Group Limited<br />

49 Peter Street, Manchester, M2 3NG<br />

T: 0330 460 9877<br />

E: sales@redflagalert.com<br />

W: www.redflagalert.com<br />

The UK’s No1 Insolvency Score is available as platform<br />

designed to help businesses manage risk and achieve growth<br />

using real-time data. The only independently owned UK credit<br />

referencing agency for businesses. We have modernised the<br />

way companies consume data, via Graph QL API and apps for<br />

many CRM / ERP systems to power businesses decisions with<br />

the most important data taken in real-time feeds, ensuring our<br />

customers are always the first to know.<br />

Red Flag Alert has a powerful portfolio management tool<br />

enabling you to monitor all your customers and suppliers so<br />

you and your teams can receive email alerts on data events<br />

i.e. CCJ, Petitions, Accounts, Directors, amongst 84 alerts<br />

produced and tailored to your business.<br />

Red Flag Alert works towards growing and protecting<br />

businesses using advanced machine learning and AI technology<br />

data to provide businesses with information to deliver best in<br />

class sales, credit risk management and compliance.<br />

LEGAL<br />

Shoosmiths<br />

Email: paula.swain@shoosmiths.co.uk<br />

Tel: 03700 86 3000 W: www.shoosmiths.co.uk<br />

Shoosmiths’ highly experienced team will work closely with credit<br />

teams to recover commercial debts as quickly and cost effectively<br />

as possible. We have an in depth knowledge of all areas of debt<br />

recovery, including:<br />

•Pre-litigation services to effect early recovery and keep costs<br />

down<br />

•Litigation service<br />

•Post-litigation services including enforcement<br />

•Insolvency<br />

As a client of Shoosmiths, you will find us quick to relate to your<br />

goals, and adept at advising you on the most effective way of<br />

achieving them.<br />


American Express<br />

76 Buckingham Palace Road,<br />

London. SW1W 9TQ<br />

T: +44 (0)1273 696933<br />

W: www.americanexpress.com<br />

American Express is working in partnership with the CI<strong>CM</strong> and is a<br />

globally recognised provider of payment solutions to businesses.<br />

Specialising in providing flexible collection capabilities to drive a<br />

number of company objectives including:<br />

• Accelerate cashflow • Improved DSO • Reduce risk<br />

• Offer extended terms to customers<br />

• Provide an additional line of bank independent credit to drive<br />

growth • Create competitive advantage with your customers<br />

As experts in the field of payments and with a global reach,<br />

American Express is working with credit managers to drive growth<br />

within businesses of all sectors. By creating an additional lever<br />

to help support supplier/client relationships American Express is<br />

proud to be an innovator in the business payments space.<br />

Key IVR<br />

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

W: www.keyivr.com<br />

Key IVR are proud to have joined the Chartered Institute of<br />

Credit Management’s Corporate partnership scheme. The<br />

CI<strong>CM</strong> is a recognised and trusted professional entity within<br />

credit management and a perfect partner for Key IVR. We are<br />

delighted to be providing our services to the CI<strong>CM</strong> to assist with<br />

their membership collection activities. Key IVR provides a suite<br />

of products to assist companies across the globe with credit<br />

management. Our service is based around giving the end-user<br />

the means to make a payment when and how they choose. Using<br />

automated collection methods, such as a secure telephone<br />

payment line (IVR), web and SMS allows companies to free up<br />

valuable staff time away from typical debt collection.<br />

Quadient AR by YayPay<br />

T: +44 20 8502 8476<br />

E: r.harash@quadient.com<br />

W: www.quadient.com/en-gb/ar-automation<br />

Quadient AR by YayPay makes it easy for B2B finance teams<br />

to stay ahead of accounts receivable and get paid faster – from<br />

anywhere. Integrating with your existing ERP, CRM, accounting<br />

and billing systems, YayPay organizes and presents real-time data<br />

through meaningful, cloud-based dashboards. These increase<br />

visibility across your AR portfolio and provide your team with a<br />

single source of truth, so they can access the information they<br />

need to work productively, no matter where they are based.<br />

Automated capabilities improve team efficiency by 3X and<br />

accelerate the collections process by making communications<br />

customizable and consistent. This enables you to collect cash<br />

up to 34 percent faster and removes the need to add additional<br />

resources as your business grows.<br />

Predictive analytics provide insight into future payer behavior to<br />

improve cash flow management and a secure, online payment<br />

portal enables customers to access their accounts and pay at any<br />

time, from anywhere.<br />


25 Canada Square<br />

London, GB E14 5LQ<br />

T: +447730500085<br />

E: getinfo@fisglobal.com.<br />

W: www.fisglobal.com<br />

The award-winning FIS GETPAID solution is a fully integrated,<br />

web-based order-to cash (O2C) solution that helps companies<br />

improve operational efficiencies, lower DSO, and increase cash<br />

flow. GETPAID provides process automation, artificial intelligence,<br />

and workflow across the O2C cycle, with detailed analysis and<br />

reporting for accurate cash forecasting. FIS is a global leader in<br />

financial services technology that empowers the financial world.<br />

For more information visit https://www.fisglobal.com/en/cashflowand-capital/credit-and-collections<br />

or email getinfo@fisglobal.com.<br />


Hays Credit Management<br />

107 Cheapside, London, EC2V 6DN<br />

T: 07834 260029<br />

E: karen.young@hays.com<br />

W: www.hays.co.uk/creditcontrol<br />

Hays Credit Management is working in partnership with the CI<strong>CM</strong><br />

and specialise in placing experts into credit control jobs and<br />

credit management jobs. Hays understands the demands of this<br />

challenging environment and the skills required to thrive within<br />

it. Whatever your needs, we have temporary, permanent and<br />

contract based opportunities to find your ideal role. Our candidate<br />

registration process is unrivalled, including face-to-face screening<br />

interviews and a credit control skills test developed exclusively for<br />

Hays by the CI<strong>CM</strong>. We offer CI<strong>CM</strong> members a priority service and<br />

can provide advice across a wide spectrum of job search and<br />

recruitment issues.<br />



Portfolio Credit Control<br />

1 Finsbury Square, London. EC2A 1AE<br />

T: 0207 650 3199<br />

E: recruitment@portfoliocreditcontrol.com<br />

W: www.portfoliocreditcontrol.com<br />

Portfolio Credit Control, a 5* Trustpilot rated agency, solely<br />

specialises in the recruitment of Permanent, Temporary & Contract<br />

Credit Control, Accounts Receivable and Collections staff<br />

including remote workers. Part of The Portfolio Group, an awardwinning<br />

Recruiter, we speak to Credit Controllers every day and<br />

understand their skills meaning we are perfectly placed to provide<br />

your business with talented Credit Control professionals. Offering<br />

a highly tailored approach to recruitment, we use a hybrid of faceto-face<br />

and remote briefings, interviews and feedback options.<br />

We provide both candidates & clients with a commitment to deliver<br />

that will exceed your expectations every single time.<br />

FOR<br />





paul@centuryone.uk<br />

01727 739 196<br />

Cr£ditWho?<br />

CI<strong>CM</strong> Directory of Services<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 77


Do you know someone who would benefit from CI<strong>CM</strong> membership? Or have<br />

you considered applying to upgrade your membership? See our website<br />

www.cicm.com/membership-types for more details, or call us on 01780 722903<br />


Timothy Cahalin<br />

Joanne Chesworth<br />

Julie Turner<br />

Katy Fisher<br />

Harry Mole<br />

Amanda Mcghie<br />

Richard Moore<br />

Joshua Tipping<br />

Jack Card<br />

Andrew Collett<br />

Richie Caplin<br />

Steven Dyer<br />

Zoe Wong<br />

John Filani<br />

Faye Gadsdon<br />

Jana Kralova<br />

Kelly Childs<br />

Natalie Keddy<br />

Ty Symes<br />

Antonia Fakiri<br />

Assim Mohamed<br />

Sophie Berroyer<br />

Andrew Richards<br />

Jacob Morton<br />

Tvane Rapier<br />

Curtis French<br />

Joseph Osei<br />

Sara Mastrandrea<br />

Jaime Amorrortu<br />

Candace Murdoch<br />

Christopher Wild<br />

Charlotte Buron<br />

TJ Bradley<br />

Emily Rawson<br />

Emma Hicks<br />

Conor Bolton-Phillips<br />

Samuel Chatterton<br />

Sa'diyah Uddin<br />

Gary Timms<br />

Dinah Moores<br />

Emma Halliwell<br />

Ethan Schofield<br />

Leanne Antrobus<br />

Rebecca Green<br />

Sharon Bates<br />

Shamaila Wassiem<br />

Faraday Waite<br />

Alison Clarke<br />

Kevin Holt<br />

Danielle Aykroyd<br />

Sophie Ward<br />

Stephanie Meek<br />

Amy Bird<br />

Daniel Pratt<br />

Carra Ditchburn<br />

Bethany Ewels<br />

Charlotte Button<br />

Oakley Gost<br />


Lauren Carter<br />

Nathan Killen<br />

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

Keith Sankey<br />

Sharon Bogg<br />


Efe Emerhana<br />

Umer Farooq<br />


Congratulations to the following, who successfully achieved Diplomas<br />

Level 5 Diploma in Credit & Collections Management MCI<strong>CM</strong> (Grad)<br />

Veselina Nikolova<br />

Level 3 Diploma in Credit & Collections (ACI<strong>CM</strong>)<br />

Ciara McLellan<br />

Robert Ellison<br />


Get in touch with the CI<strong>CM</strong> by emailing branches@cicm.com with your branch news and event reports.<br />

Please only send up to 400 words and any images need to be high resolution to be printable, so 1MB plus.<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE 78



“<br />

Having worked in an accounting practice for over 25 years,<br />

qualifying as a Chartered Accountant in 2000 and a Director of the<br />

company since 2010, I developed and headed up the legal services<br />

department within the practice that dealt with the accounting<br />

and compliance needs of our solicitors’ portfolio. I worked solely<br />

with solicitor practices, supporting their accounting requirements,<br />

business and profit development as well as regulatory compliance.<br />

My finance and regulatory background has enabled me to<br />

guide firms in developing sound financial controls and<br />

compliance with the solicitors regulatory body, which is<br />

crucial for any solicitors practice in the ever changing<br />

environment in which they operate.<br />

- Stuart Littler FCA<br />

www.thomashiggins.com<br />

Brave | Curious | Resilient / www.cicm.com / <strong>March</strong> <strong>2023</strong> / PAGE xx

Ethical and efficient debt recovery solutions to<br />

help organisations improve cash-flow, increase<br />

productivity and reduce overheads<br />

Debt<br />

Recovery<br />

Customer<br />

Care<br />

Receivables<br />

Management<br />

Business Support<br />

Services<br />

IT and Application<br />

Services<br />

Software<br />

Solutions<br />

01527 386 610<br />


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