CM APRIL 2023

CREDIT MANAGEMENT

CM

APRIL 2023 £13.00

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

LINE OF DUTY

European manufacturers

are bouncing back

Debt collectors are

going above and beyond

their job. Page 16

Sean Feast FCICM speaks to

Gary Brown about his life in

credit. Page 18

£0.33 billion

recovered for

our clients

Our debt recovery track record is second to none

– exactly what you’d expect from us, the largest

independent High Court enforcement company.

More Authorised HCEOs than any other with over

400 years combined experience

Excellent client service and agents covering all

of England and Wales

Multiple industry awards for our technology

and training

To find out more or instruct us

08450 999 666

www.hcegroup.co.uk

12

SHAPING CHANGE

Jeanette Burgess

and Sarah Mertes

16

A BROKEN SYSTEM

David Sheridan FCICM

APRIL 2023

www.cicm.com

CONTENTS

10 – BREAKING BARRIERS

Will new powers help stop the dissolution

process from being abused?

12 – SHAPING CHANGE

The Government consults businesses on

reforming the Consumer Credit Act.

16 – A BROKEN SYSTEM

Debt collectors are going above

and beyond their job, without fair

remuneration.

18 – COMPUTER SAYS YES

Sean Feast FCICM speaks to Gary Brown

about his life in credit and the concept of

Debt Register.

22 – GROWTH PLAN

Professional development is the best way

to nurture your credit management career.

26 – SONIC BOOM

European manufacturers are bouncing

back to pre-COVID production volumes.

29 – MANAGING PERFECTION

The importance of hiring and training the

right managers.

26

SONIC BOOM

Les Clisby

CICM GOVERNANCE

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

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

Credit Management is distributed to the entire UK and international CICM

membership, as well as additional subscribers

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

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

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

trade mark of the Chartered Institute of Credit Management.

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

34

COUNTRY FOCUS

Adam Bernstein

President Stephen Baister FCICM / Chief Executive Sue Chapple FCICM

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

Larry Coltman FCICM / Neil Jinks FCICM / Allan Poole MCICM

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

Larry Coltman FCICM / Peter Gent FCICM(Grad) / Victoria Herd FCICM(Grad) / Andrew Hignett MCICM(Grad)

Laural Jefferies FCICM / Neil Jinks FCICM / Martin Kirby FCICM / Charles Mayhew FCICM / Hans Meijer FCICM / Debbie Nolan

FCICM(Grad) / Amanda Phelan MCICM(Grad) / Allan Poole MCICM / Phil Rice FCICM / Phil Roberts FCICM / Chris Sanders FCICM

Paula Swain FCICM / Jamie Thornton MCICM / Mark Taylor MCICM / Atul Vadher FCICM(Grad)

34 – A KINGDOM WITH CLOUT

Abundant in oil, gas and clean power,

Norway is worth investing in.

38 – TAKING CONTROL

How to cope with uncertainty in your

financial career.

40 – AN INTERNATIONAL AFFAIR

How firms trading across borders can

protect themselves against currency

volatility.

Publisher

Chartered Institute of Credit Management

1 Accent Park, Bakewell Road, Orton Southgate,

Peterborough PE2 6XS

Telephone: 01780 722900

Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor

Sean Feast FCICM

Deputy Editor

Iona Yadallee

Art Editor

Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Joe Clarkson, Rob Howard, Roshika Perera,

Melanie York and Mona Yazdanparast

Advertising

Paul Heitzman

Telephone: 01727 739 196

Email: paul@centuryone.uk

Printers

Stephens & George Print Group

2023 subscriptions

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International: £160 per annum

Single copies: £13.00

ISSN 0265-2099

Brave | Curious | Resilient / www.cicm.com / April 2023 / PAGE 3

EDITOR’S COLUMN

Has PwC scored an own

goal in insolvency data?

Sean Feast FCICM

Managing Editor

I’VE always loved statistics and

data. They can tell you anything

and nothing. They can help you

prove or disprove a point.

Like the statistic that came

out following Gary Lineker’s

recent outburst on immigration that led

to a walkout of BBC sport presenters and

pundits on Match of the Day. Viewing

figures for the 20-minute show on Saturday

night were said to be half a million up on

previous weekends, ‘proving’ that Lineker

and his cronies were not, after all, the

principal reason why we all tuned in. Now

was that really the reason, or is it more

likely it was half a million people tuning in

as a one-off to see what a commentator-less

match actually sounded like?

(Personally, the popularity of a

commentator- and pundit-free programme

came as little surprise to me or many of my

friends; most of us either turn the volume

down while watching a match or forward

wind through the banal post-match

analysis and ref-bashing that follows. Yes, I

am a former FA official. Yes I am that man

you sang rude songs about.)

But getting back to the point, I was

intrigued to read in the news recently

a report from PricewaterhouseCoopers

that seemed to suggest that insolvencies

had only increased by 11.8 percent in

the last 12 months. Its figures, gleaned

from the Insolvency Service, showed that

insolvencies across all types rose from

28,279 in 2021 to 31,606 in 2022.

But as one sharp-eyed observer Gary

Brown points out (see news page 18), that

figure fails to exclude solvent liquidations.

Take those out of the equation and the

actual number of insolvencies has risen

by an alarming 49.7 percent, and it’s clear

we’re in trouble.

We know because we’re constantly

told by the good people at the Federation

of Small Businesses and others that

businesses tend to fail not only because of

rising costs and falling revenues, but also

because of poor cashflow management. We

know also, because we’ve covered it many

times in these pages over the years, that

late payment will forever be an issue.

But what worries me is that while the

tsunami of insolvencies long predicted is

now actually happening, I don’t see much

coming out of Government. In fact, I didn’t

see much coming out of the FSB or other

pressure groups for that matter, who surely

missed a trick in highlighting the true

plight facing many of their members.

I’m not sure what the answer is. What

I do know, however, is that we all need

sometimes to look beyond the numbers to

get to the truth. And I also know that we

need to continue to promote the importance

of best-practice credit management and

technologies that can help businesses

improve their cashflow and protect them

through the undoubtedly tough times

ahead.


CMNEWS

A round-up of news stories from the

world of consumer and commercial credit.

Written by – Sean Feast FCICM

StepChange sees ‘startling’

rise in demand for debt advice

MORE than 18,000 new

StepChange Debt Charity

clients completed full

debt advice in January

2023, which is at least 22

percent higher than any

single month in 2022, suggesting that more

and more people are struggling with debt in

the new year following almost 12 months of

rising living costs.

Meanwhile the Bank of England’s

Money and Credit data for January shows

consumers borrowed an additional £1.6bn

in consumer credit, on net, compared with

£0.8bn borrowed in December.

While StepChange says it always sees

a seasonal uptick in client volumes in

January, the increase this year is markedly

higher than in previous years. The number

of clients advised in January 2023 increased

by 77 percent compared to the previous

calendar month. Comparatively, between

December 2021 and January 2022, the

number of new clients advised increased by

48 percent.

The charity has also seen a further

increase in the proportion of new clients

citing the cost of living as their main reason

for debt. A quarter (24 percent) of clients

cited an increased cost-of-living as their

main reason for debt, which is the highest

this proportion has been, and nearly three

times what it was in January 2022 (nine

percent).

For the first time in several months,

the proportion of clients with unsecured

debts such as credit cards is on the rise.

Between December 2022 (63 percent) and

January 2023 (67 percent), there was a fourpercentage

point increase in the proportion

❝

The rise in

consumer credit

borrowing is a sign

of the mounting

pressure on

households and the

difficult choices

many are facing as

incomes can’t keep

up with rising costs.

❝

of clients with credit card debt. Between

the same time period, there was a twopercentage

point rise in clients with debt

from personal loans which stands at almost

half (46 percent). However, these figures

remain slightly lower than January 2022.

While StepChange explains that it always

advises a higher proportion of women than

men, in January 2023, 65 percent of new

clients advised were women, up from 62

percent in December 2022.

Richard Lane, Director of External Affairs

at StepChange Debt Charity, is concerned

about rising levels of problem debt:

“Consumer borrowing is on the rise, while

energy bills remain high, and mortgage

holders and renters alike are facing the

ongoing impact of high interest rates.

There’s only so much people’s finances

can cope with, particularly for those on

low incomes, and with financial resilience

waning, more people may be forced to turn

to credit to make ends meet over the coming

months.”

Elsewhere, the Money Advice Trust

is similarly concerned about the rising

volumes of calls to its helplines. Joanna

Elson CBE, chief executive of the Money

Advice Trust, is concerned: “The rise in

consumer credit borrowing is a sign of the

mounting pressure on households and the

difficult choices many are facing as incomes

can’t keep up with rising costs.

“At National Debtline we are hearing from

more people having to use credit to cover

essential costs, including food, energy

and council tax bills. And with the double

whammy of energy price rises and increases

in council tax coming in April, for many, the

situation is set to get harder.’’


report from PWC that

suggests insolvencies

have only increased

11.8 percent is a gross

distortion of the true

A0 challenge facing UK

small businesses.

The actual number of insolvencies

has increased by an alarming 49.7

percent, when solvent liquidations

are excluded, and the UK Government

needs to act.

Gary Brown, Founder of Debt

Register, a commercial collections

platform, has analysed the figures in

PWC’s latest ‘Restructuring Insights’

that states that insolvencies across all

types rose from 28,279 in 2021 to 31,606

in 2022, a rise of just under 12 percent.

But if solvent liquidations are

excluded, which they should be, that

figure could be as high as 50 percent,

Gary claims: “Businesses that are

solvent and choose to liquidate are not

NEWS ROUNDUP

Real insolvencies more than four times

the volume stated in new PWC report

failing businesses or else they wouldn’t

be solvent!” Gary explains.

“They are simply going through a

process to cease trading and close the

business – and that could be for any

number of reasons such as retirement

– and should therefore be discounted.

By doing that, you get to see the real

scale of the disaster facing UK small

businesses, and just how many are

now becoming ‘insolvent’.”

Most SMEs fail because of rising

costs and falling revenues, according

to regular polling by the Federation

of Small Businesses (FSB), but

also because of poor cashflow

management. According to the ICAEW,

late payment hit a two-year high in the

last quarter of 2022, putting enormous

strain on businesses that may already

be struggling.

Gary is concerned that reports

that don’t give the true picture

may lead Government ministers to

become complacent: “The tsunami of

insolvencies long predicted is actually

happening, and ministers need to be

actively promoting the importance of

best-practice credit management and

technologies that can help businesses

improve their cashflow and protect

them through the tough times ahead,”

he adds.

Debt Register is an award-winning

cash recovery tool that businesses

can simply plug in and set to work,

freeing them to focus on more valueadded

activities. The business simply

uploads an overdue invoice with all

of the debtors’ details and the system

does the rest. Automated emails inform

the debtor that any non-payments

will be reported to the credit reference

agencies which ultimately impacts

their own credit rating.

See our interview with Gary Brown

on page 18.

CICM teams up with Folio to issue digital

membership, boosting its digital presence

THE Chartered Institute of Credit

Management (CICM), the largest

professional credit management body

in the world, teams up with Folio,

provider of the highest rated digital

wallet to issue digital membership

cards. The move is part of a wider

agenda to adopt new technologies

that enhance and improve the

member experience.

CICM members are now being

issued with digital membership cards

directly into their Folio digital wallet,

available to download from app

stores. The card will be personalised

with the member’s CICM membership

number, photo, name and renewal

date. In addition, their grade is

dynamically displayed on the card,

updating as they achieve further

qualifications.

The introduction of the digital

membership card which can be

stored and accessed via a smart

phone is aimed at providing a range

of advantages: members can easily

and conveniently take advantage

of membership benefits; the

personalised card provides a unique

representation of their membership;

the encrypted technology increases

the security of transactions; and

digital cards provide an eco-friendlier

solution, eliminating the need to

reissue a plastic card once it expires

or once a member’s status changes.

Sue Chapple FCICM, Chief

Executive of the CICM says the

launch of digital membership cards

is an important step in the Institute’s

digital transformation process: “This

year, we are focused on modernising

CICM, making the Institute’s benefits

more readily accessible. And as CICM

continues to open more doors to its

members – through online training,

events and industry resources –

Folio’s digital wallet provides a

convenient mode of access, among

many other benefits, ensuring

members can easily take advantage

of all that CICM offers.”

Nik Maguire, Chief Marketing

Officer at Folio believes that the

digital wallet will make a noticeable

difference to how members interact

with CICM: “Folio is the highest

rated digital wallet in app stores and

can store everything from driving

licences to passports securely on

a smartphone. And now, CICM

members can add their membership

card, allowing them to easily confirm

their membership status.

“With the vast range of activities

and resources that CICM offers its

members, the ease of being able to

access it all from the convenience of

your phone will save time and

effort for employees who

need to process requests

and members that want to

access CICM services.”


NEWS ROUNDUP

Clarins UK awarded its first

CICMQ Accreditation

CLARINS UK’s Credit Manager,

Terri Taylor MCICM(Grad) and Kevin

Gough MCICM, Head of Credit Risk and

Brand Representation, welcomed CICM’s

Head of Accreditation, Karen Tuffs

FCICM(Grad) to their London office at the

end of last year to celebrate Clarins’ first

CICMQ accreditation.

New Citizens Advice findings

on IVAs ‘deeply troubling’

THE Money Advice Trust has responded

to findings in a new report from Citizens

Advice, which identifies serious

problems with Individual Voluntary

Agreements (IVAs), a form of debt

solution, as ‘deeply troubling’ and paints

a worrying picture for people struggling

with problem debt.

The findings suggest people in

financial difficulty are being misled by

firms offering IVAs into a debt solution

often unsuitable for their circumstances

leaving them in a worse position than

before and unable to keep up with

repayments.

Figures released last month by the

Insolvency Service show that the IVA

market has boomed in recent years,

with the number of active agreements

increasing from less than 10,000 before

2003 to almost 88,000 by 2022.

Jane Tully, director of external affairs

and partnerships at the MAT says

Citizens Advice’s findings paint a deeply

troubling picture of the IVA market: “With

the impact of rising costs pushing more

households into financial difficulty,

making sure people can access the free,

independent debt advice they need is

more important than ever,” she says.

“Urgent action is needed from

Government and regulators to tackle

these harmful practices, and we support

Citizens Advice in their call to bring the

pre-advice IVA firms deliver under FCA

The Credit Control Team was joined by

the UK Managing Director, Debbie Lewis,

to reflect on the 12-month journey taken

by their Harlow-based team in attaining

the credit and collections industry’s

highest award for best practice. Welldeserved

and many congratulations to

Clarins.

regulation.”

The Citizens Advice report was

similarly welcomed by the Insolvency

Practitioners Association (IPA) and

says it will continue to work with the

Financial Conduct Authority (FCA),

Advertising Standards Authority and the

Insolvency Service to tackle the harms

that debt advertising can have on the

ability of consumers to seek accurate

and balanced advice.

A spokesperson told Credit

Management that while the number of

complaints the IPA receives in relation

to IVAs is very low, representing just 0.03

percent of all IVAs registered nationally,

it will carefully review the report and

take action if any breaches of insolvency

legislation or guidance are discovered.

>NEWS

IN BRIEF

Property slump

PROPERTY sales (non-seasonally

adjusted) were up two percent from

January, to 76,920. However, this is

down almost a fifth from a year earlier

(18 percent). When they’re seasonally

adjusted, things look even worse –

with transactions down 18 percent in

a year and four percent since January.

On both a seasonally adjusted, and

non-seasonally adjusted basis, this

is the slowest February in a decade.

Sarah Coles, Head of Personal Finance

at Hargreaves Lansdown described

the figures as ‘the worst February

figures in a decade: “We don’t yet know

whether this is a brief and brutal

shock, or the beginning of a miserable

period for the property market.”

ZIPZERO raise

UK fintech start-up ZIPZERO has

successfully raised over £1 million in

seed funding. ZIPZERO is described

as a consumer app that allows

users to receive cash rewards by

sharing receipts from their everyday

purchases, which are then used

to pay household utility bills. Its

mission is to improve the financial

well-being of everyday consumers by

enabling the transparent exchange

and monetisation of individual

shopping data.

ESG progress

THE largest global companies continue

to show momentum on corporate

reporting and related assurance

involving environmental, social and

governance (ESG) issues, according

to a new report from the International

Federation of Accountants (IFAC) and

AICPA & CIMA, the latter two of which

form the Association of International

Certified Professional Accountants.

Significant hurdles remain, however,

when it comes to providing

consistent, comparable and highquality

sustainability information for

investors and lenders.

Myth busting

A third of the UK’s over-50s have

concerns about being able to put

enough food on their tables if the UK

slips into the recession predicted by

the Bank of England. New data from

LiveMore also shows more than half

of 50-90-year-olds fear that they will

not be able to heat their homes or

pay other vital bills as the economic

downturn continues.


Ardent employees ‘excited’ by

prospect of deal completion

EMPLOYEES at Ardent

Credit Services, the

Liverpool-based debt

recovery and credit

management services

provider, are looking

forward to an exciting new future

following news that it is to be

acquired by Phillips & Cohen

Associates (UK) Ltd, the Manchesterbased

deceased account management

business.

Credit Management understands

that news of the deal has been

received ‘enthusiastically’ by staff,

excited by the prospect of being part

of a wider team. It also understands

that employees at Phillips & Cohen

Associates are similarly positive

about how the acquisition might be

‘the accelerator pedal’ to its ambitions

to build a mainstream collections

business of scale in the UK.

While completion is subject to final

approval by the Financial Conduct

Authority (FCA), Phillips & Cohen

Associates see it as a key part of a

long-term strategy to expand Phillips

& Cohen Associates’ expertise and

scale within the pre and post chargeoff

collections space in the UK and

internationally.

In acquiring Ardent Credit Services,

PCA is adding 26 years of proven

expertise and excellence in the UK

collections industry. PCA was attracted

to Ardent’s ‘digital first’ approach that

allows its customers to choose the

most appropriate channels through

which to interact. The business also

has a highly experienced executive

team and employees who have proven

AZZURRO Associates is celebrating

being recognised by the Financial

Times as one of Europe’s fastest

growing companies.

The business, which delivers

Commercial Debt Solutions to a

range of SME lending clients, grew its

revenues in 2021 to €28.6m, achieving

a Compound Annual Growth Rate

(CAGR) of 68.9 percent and an

Absolute Growth Rate of 381.9 percent.

Azzurro’s CEO and founder Andrew

Birkwood says that the inclusion in

the 7th edition of FT 1000 Europe’s

NEWS ROUNDUP

themselves to consistently find the

right balance between compassion

for consumers, and performance and

compliance for their clients.

Adam Cohen, Co-Founder and

Chief Executive of Phillips & Cohen

Associates, says that Ardent is the

perfect fit: “It has always been part of

our plan to expand our mainstream

collection activities outside of the US,

but without diluting the expertise in

handling deceased accounts for which

we have an established reputation and

expertise.”

❝

This is great news for the

business, the team, and our

future. We are like-minded

companies with the same

service ethic and being part

of the Phillips & Cohen

family will allow us to benefit

from wider group knowledge

and services.

❝

“Ardent is an extremely successful

business and the right opportunity

at the right time. Culturally, we are

very similar, with compassion and

compliance at the centre of all we do,

and a like-minded approach to how

customers should be treated above and

Fastest Growing Companies report

is a testament to an extremely

talented team’s hard work, persistence

and drive: “I’d also like to take this

opportunity to thank all our SME

lending clients that have placed their

trust in Azzurro over the years,” he

said.

Azzurro’s COO, Karen Bulgarelli is

similarly delighted with the news:

“Having launched in 2017 with a

vision to create the commercial debt

solutions sector, Azzurro has enjoyed

consistent growth in its first five years

beyond the remit of TCF.”

Steve Murray, the Founder and

CEO of Ardent Credit Services added:

“This is great news for the business,

the team, and our future. We are likeminded

companies with the same

service ethic and being part of the

Phillips & Cohen family will allow us

to benefit from wider group knowledge

and services. PCA’s investment in

Ardent is also an investment in the

local community, with exciting plans

for expansion. Many of the senior

team of the two businesses have been

known to one another for many years,

and this will make the collaboration

even more effective.”

The senior team within Ardent all

remain. John Ricketts continues as

Managing Director, reporting to the

Chief Operating Officer at Phillips

& Cohen Associates, Nick Cherry.

Steve has also agreed to stay with the

company in the short-to-mid-term

to ensure a smooth transition of the

business. Upon completion, Ardent

Credit Services will become a wholly

owned subsidiary of Phillips & Cohen

Associates (UK) Ltd.

Nick Cherry says that the ambition

is to grow the business significantly:

“The office in Liverpool give us the

perfect space we need to expand,” he

says. “The local area is also important

to us with an excellent pool of very

hardworking talent to draw upon for

future recruitment to support our

growth. As much as we are benefitting

from the local community, we hope

and expect the local community will

also benefit from being part of our

team.”

Azzurro Associates recognised as one

of Europe’s fastest growing companies

of operation,” she added.

“Being named in the 7th

edition of FT 1000 Europe’s

Fastest Growing Companies

shows we have the resources,

the people and the skills to

continue our journey to

bring excellence to

the Commercial

Debt Solutions

marketplace through

a combination of

innovation, choice

and opportunity.”


NEWS ROUNDUP

Klarna to introduce ‘Customer

Recovery Programme’ to help

combat bad debts

KLARNA, will begin fining customers

in the UK for late payments in an

action it says is to curb loan defaults,

as consumers flood onto the platform

amid a cost-of-living squeeze.

The Swedish-based firm, which

provides online financial services such

as payments for online storefronts

and direct payments along with

post-purchase payments, has begun

charging customers (as of 16 March) a

£5 fee if they miss a payment. Klarna

has highlighted that the fees will be

capped at 25 percent of the order value

with no more than two fees per order.

Head of Klarna UK, Alex Marsh,

has said that the company has rising

concerns over irresponsible spending

on the platform due to their no-fee

system: “Not charging fees feels

consumer-friendly, but we’re worried it

drives the wrong behaviour,” he says.

“Our data now shows that a total

absence of late fees actually leads

to less favourable outcomes for

customers: with less reason to pay on

time, customers are more likely to miss

a payment.

“We’ve concluded that having no

fees is not in the best interest of our

customers, but we don’t want to rely on

SMALL Business Britain has launched a

new support programme, in partnership

with Lloyds Banking Group, aimed at

helping small businesses in difficulty

survive the challenging economic period.

The programme is designed to give

immediate support to small businesses

through mentoring and targeted sessions

with experts. Set over the course of

fees or charge extortionate amounts

like traditional banks who monetise

the misery of customers who fall

behind.

“A portion of the late fees will be

channelled into paying off debts

for customers who have landed

themselves in deeper arrears,” he

concludes.

A new ‘Customer Recovery

Programme’ from the firm will offer

shoppers financial support to pay

off debts and ‘tools to stay on top of

payments.’

❝

We’ve concluded that

having no fees is not in the

best interest of our customers,

but we don’t want to rely on

fees or charge extortionate

amounts like traditional

banks who monetise the

misery of customers who fall

behind.❝

Drop-in support

six weeks, small businesses can join

other members of the small business

community in an online ‘surgery style’

format to pose questions and gain insight

directly from a panel of business experts.

The free programme will also pair small

businesses with a mentor for two

hours of free one-to-one mentoring as

a follow up.

>NEWS

IN BRIEF

Sure footed

SUREPAY, the European Confirmation

of Payee provider, has confirmed

that UK fintech Allica Bank has

implemented its UK Confirmation of

Payee solution to protect consumers

against fraud and misdirected online

payments. CoP is designed to help

customers avoid sending payments

to the wrong account through

fraud or human error and verifies

the recipient’s name and account

details before payments are made,

ensuring that customers’ funds reach

the correct destination. Elsewhere,

Allica has extended its asset finance

proposition to include soft assets to

meet the demand from its brokers

and customers. The bank is offering

financial support to help businesses

finance soft assets, which may

include the acquisition of IT, telecoms

or security equipment, and further

increasing the ways that businesses

can increase their cashflow.

Lending patterns

MORE than eight in ten SME finance

brokers (82 percent) agree that major

banks have reduced their appetite

to fund SMEs, while nearly half of

brokers (49 percent) report that more

of their clients’ applications for

finance were rejected compared to the

previous month. iwoca’s latest SME

Expert Index suggests that demand for

lending is set to increase dramatically

over the next six months; four in every

five brokers (79 percent) believe that

demand for SME finance will rise, with

just six percent predicting demand

will fall.

The digital pound

TENTATIVE plans for the introduction

of a digital pound have been put

forward by HM Treasury and the

Bank of England (BoE) as the UK and

the City of London looks to retain its

position as a global leader in banking

and finance. A consultation will

explore the proposals for a central

bank digital currency (CBDC) for retail

transactions between consumers

and businesses. At present, only

commercial banks hold accounts

directly with the BoE.


INSOLVENCY

Breaking Barriers

Will new powers help stop the dissolution

process from being abused?

AUTHOR – Alexandra Davies

THE Insolvency Service has

recently gained extended

powers to investigate

directors following the

dissolution of companies,

potentially making it possible

to recoup funds if evidence of abuse

is found.

These extended powers are part of

The Rating (Coronavirus) and Directors

Disqualification (Dissolved Companies)

Act. Prior to this legislation being

introduced, directors of dissolved

companies fell outside the scope of the

Company Directors Disqualification Act

1986 (CDDA), meaning that the Insolvency

Service couldn’t investigate their conduct

if the company had been dissolved off the

register. The company had to be restored

to the register before this could happen.

This barrier to investigation allowed some

directors who should have been subject to

disqualification proceedings to slip under

the radar.

The process of restoring a company to

the register can be costly and whilst it can

be advantageous in some circumstances,

it can also be seen as throwing good

money after bad.

The new legislation, giving the

Insolvency Service extended powers, will

help to close the ‘dissolution loophole’.

In addition, directors could be subject

to sanctions if evidence of misconduct

is found. Crucially, the Act takes effect

retrospectively and investigations can be

undertaken into directors’ conduct, where

the company was dissolved prior to the

commencement of the Act.

This new legislation has been widely

welcomed and it does provide more

confidence and certainty. However,

an investigation is not automatically

triggered upon dissolution of a company

and requires creditors and other

stakeholders to report any concerns they

have in respect of an individual director’s

conduct to the Insolvency Service.

The Act was initially accelerated by the

UK Government following widespread

concern over the number of fraudulent

Bounce Back Loan claims made during the

pandemic. In addition to the legislation,

HMRC has launched an investigation to

find and recoup funds from businesses

that it suspects may have deliberately

abused the Coronavirus Bounce Back

Loan support scheme. In January 2023,

a House of Commons Committee Report

(“The Report”) reflected on the situation

and made a number of recommendations.

It stated that the UK Government is

disappointed that HMRC only expects to

recover around a quarter of the £4.5bn

it estimates was lost due to fraudulent

claims for COVID-19 support. The Report

also suggested that HMRC has a moral

duty to pursue fraud to ensure fairness

and maintain a level playing field for

❝

The new legislation,

giving the Insolvency

Service extended powers,

will help to close the

‘dissolution loophole.’

In addition, directors

could be subject to

sanctions if evidence of

misconduct is found.

❝

businesses and individuals that did not

abuse the schemes.

Whilst legislation alone will not

facilitate payments to creditors, the UK

Government has suggested that in the

more serious cases, Compensation Orders

may be issued against directors. Only a few

Compensation Orders have been issued to

date, but this seems set to increase.

Alexandra Davies is a manager at the

accountancy firm, Menzies LLP.


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Rated as Excellent

OPINION

Shaping Change

The Government consults businesses on

reforming the Consumer Credit Act.

AUTHOR – Jeanette Burgess and Sarah Mertes

IN December last year (2022), the

Chancellor announced the Edinburgh

Reforms, a substantial and wideranging

package of proposed measures

to drive growth and competitiveness in

the financial services sector. As part

of this move, the Government is consulting on

reforming the Consumer Credit Act 1974 (CCA)

and is proposing to move a significant amount of

the existing legislation into the FCA’s handbook

rules and guidance, with the overall objective

to modernise and streamline regulation to the

benefit of consumers and business.

Timing and next steps

The Government recognises that the CCA

is complex and that work to review it needs

careful consideration. In light of the complexity

and scale of the task, it expects the Consumer

Credit Act reform process to take several years.

This consultation is described as the first major

milestone in that process.

Following stakeholder feedback, we can

expect more detailed proposals in a second stage

consultation. The FCA will also consult further

in due course on its approach to any new rules.

It’s expected that final implementation will

need legislation. This will be introduced when

parliamentary time allows.

While reform itself is not imminent,

businesses have an opportunity going forwards

to help shape the future regulatory framework

in the most significant overhaul of the current

legislation in almost 50 years. Stakeholders

are encouraged to consider and respond to the

consultation.

It’s important to stress that the Government

is not making specific policy proposals at this

stage. The consultation is a way for it to deepen

its understanding in relation to particular

areas, and in some cases to provide examples

of a potential approach, in order to obtain

market views and shape the form and scope of

the reforms. The Government states that the

consultation responses will inform decisions

on the appropriate way to undertake this

reform, given that consumer credit regulation

specificities may warrant a bespoke approach

beyond mere alignment within the wider

financial services framework to ensure that

consumers are adequately protected.

What’s behind the desire to reform?

The Government committed to wholesale

reform back in June 2022 when it announced

its intention to modernise and streamline

consumer credit laws, cut costs for businesses,

❝

The aim is to move

the majority of the

Consumer Credit

Act from statute to

FCA rules, recasting

the provisions as

appropriate. Where

it’s not possible or

desirable to move

provisions to FCA

rules, they will stay

in legislation and be

modified/refined as

necessary.

❝

and simplify rules for consumers. One

consideration is to remove barriers to lenders

wanting to offer new ‘green’ products to help the

UK meet its net zero target, with the Government

ensuring that the reformed regime will be

forward-looking and designed to facilitate the

straightforward incorporation of new finance

products into the regime.

The consultation paper explains that the

way consumers interact with credit products

has evolved significantly. Many of today’s

innovative products simply didn’t exist when

the Consumer Credit Act was passed in 1974.

Further, the Act came into force before most

other financial services regulation and is

therefore not aligned with the more modern

and overall regulatory approach and wider

framework for financial services. The Act has

been amended piecemeal during the years since

its original implementation, and parts have

been transferred out of legislation and into the

FCA’s more agile regulatory framework. Add to

this implementation of various EU directives,

and the Government and many stakeholders

agree that the system has become fragmented

and too complex, restricting optimal outcomes

for both consumers and businesses. Brexit and

regulatory changes such as the introduction

of the FCA’s new Consumer Duty are also

contributing factors behind the push for

reform and provide the opportunity to create

a simplified and modernised consumer credit

regulatory regime which is tailored to the

domestic consumer.

The aim is to move the majority of the

Consumer Credit Act from statute to FCA rules,

recasting the provisions as appropriate. Where

it’s not possible or desirable to move provisions

to FCA rules, they will stay in legislation and be

modified/refined as necessary.

Principles underpinning Consumer

Credit Act reform

The Government has developed five principles

that will be used throughout the reform process:

Proportionate

Balancing appropriate levels of consumer

protection with proportionate burdens on

business.

Aligned

Aligning reform with implementation of the

post-Brexit Future Regulatory Framework

and complementing and supporting the FCA’s

Consumer Duty requirements. Making sure

the style and substance of consumer credit


OPINION


❝

While reform itself is not

imminent, businesses have an

opportunity going forwards to

help shape the future regulatory

framework in the most significant

overhaul of the current legislation

in almost 50 years.

❝

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

OPINION


regulation is generally aligned with that of the

current financial services regulation, and wider

duties and obligations. A tailored approach may

be required in specific areas.

Forward-looking

Changes made now should be adaptable to

future ways of delivering credit and consumer

hire, and to the changing needs of consumers

and businesses in the future.

Deliverable

Designing reform to be deliverable for the

regulators and the industry. Recognising that

significant change may be needed to internal

processes and making sure that enough time is

allowed for changes to take effect.

Simplifying

Simplifying and modernising ambiguous

technical terms to make consumer protections

clear, and to make it easier for firms to

communicate them and comply with requirements.

Key provisions in focus

Chapter 4 of the consultation paper sets out

the Government’s approach to reform under a

number of categories.

Definitions

The Government is seeking views on whether

definitions used in the consumer credit regime

would merit clarification, acknowledging

that some definitions under the Act may be

outdated, and that certain commonly used

concepts are omitted from the Act and therefore

have required case law to define and clarify,

often resulting in varied application.

Scope

Business lending is currently only regulated

in very limited circumstances, and the

consultation requests the industry’s view on

whether the scope of regulation regarding

business lending should be altered, for

example, to encompass lending or hire for

business purposes: i) over £25,000; and/or ii)

more broadly than to ‘individuals’ as currently

defined.

Information Requirements

The reform offers the opportunity to move all

information requirements to the FCA Handbook

to improve and simplify communications with

consumers and to enable easier amendments

to such requirements in the future as the

market evolves. The Government aims to

balance flexibility with prescriptiveness, to

ensure that customers are put in a position

to be able to make more informed decisions,

on the basis of receiving appropriate levels

of pre- and post-contract information from

firms which is tailored as appropriate to the

needs of the customer. This is also important

in light of the developments in technology,

particularly the significant increase in mobile

device use for the conclusion of agreements,

and the difference in reading experience

on a small screen given the importance of

ensuring key information is conveyed clearly

and understood. Businesses should expect

that statutory notices and communications

as currently prescribed (e.g. the Pre-contract

Consumer Credit Information, Notice of Sums

in Arrears etc.) will be significantly amended.

Rights and Protections

As currently drafted, the Financial Services

and Markets Act 2000 (FSMA) would not enable

the FCA to replicate the current rights and

protections for consumers prescribed under

the Act in the FCA’s rulebook, and therefore

the FCA’s rulemaking powers would need to be

expanded. The Government mentions certain

rights and protections it sees as particularly

important to be retained or closely replicated:

• CCA rights and protections. Section 75 (connected

lender liability), section 56 (deemed agency)

section 94 (right of early settlement), section

93 (interest not to be increased on default),

as well as giving consumers certain rights

under contract, governing the passing of title

in goods, creating statutory joint and several

liability in certain instances and enabling

the courts to exercise particular powers and

control over agreements;

• Non-CCA consumer-focused protections. This

covers Financial Ombudsman Service (FOS)

redress, unfair contract terms challenges

under the Consumer Rights Act 2015, seeking

court redress under the Consumer Protection

from Unfair Trading Regulations 2008, 138D

of FSMA (right to take private action against

a firm) and Consumer Duty protections, once

implemented.

The consultation seeks the market’s views on

the suitability of and gaps in consumer

protections outside the Act, potential

amendments to FSMA to extend the FCA’s

rulemaking powers, and whether and in what

form certain provisions should be retained in

statute such as section 75 with the advantage

that important binding precedent under case

law would not lose its status.

Three particular rights and protections

are mentioned in more detail, namely

time orders (sections 129-130), voluntary

termination (sections 99-100) and unfair

relationship provisions (sections 140A-140C),

and firms are asked to comment specifically

on the effectiveness and usefulness of these

provisions.

❝

Designing reform

to be deliverable

for the regulators

and the industry.

Recognising that

significant change

may be needed to

internal processes

and making sure

that enough time is

allowed for changes

to take effect.

❝


OPINION


Sanctions

The Government sees the reform as offering

the opportunity to concentrate some of the

remedies afforded to consumers in the

FCA toolkit and is considering whether

the FCA rule-making powers should be

adapted to enable the FCA to apply certain

Consumer Credit Act sanctions, such as the

unenforceability sanction in some instances.

Disentitlement to interest and default sums

is regarded as ‘self-policing’, and already

subject to regulatory/supervisory scrutiny,

and it therefore appears that little reform

here is to be expected. Criminal offence

sanctions are under consideration and

may be reformed to apply in more limited

instances, or removed, although the

Government points out that this should not

be viewed as reflective of the importance

of the provisions or compliance with the

requirements. We should expect to see

more information in this regard in the next

consultation, as it is not covered in detail

in the current consultation. HM Treasury

is also considering whether sanctions

should be amended to be applied relative

to harm caused to consumers, rather than,

as is currently the case, being applied

irrespective of whether breaches have been

minor or technical in nature and resulted

in no consumer harm.

Consumer Hire

The consultation seeks views on whether

consumer hire requirements, which

currently differ under the Consumer Credit

Act, should be increased to be aligned

with the respective consumer credit

standards.

Small Agreements

The reforms are considering whether small

agreements, as defined by section 17 of the

Act, which are currently exempted from

certain Consumer Credit Act provisions,

should be brought within full scope of the

requirements.

Chapter 5 of the consultation paper

sets out questions in relation to financial

inclusion and equality.

What follows the consultation

Once the consultation has closed, on

17 March (2023), we should expect

the Government to provide summary

responses, and then detail its next intended

steps for the reform in due course.

The Government faces a mammoth

challenge to achieve consistency of

the regime for ease of understanding,

protections and application (both from

a customer and lender perspective), in

light of the enormous range of products

(and journeys), types of customers, value

of credit, level of risk etc., and indeed

the breadth of the existing regime to be

consolidated/reformed.

The Consumer Duty will significantly

impact how firms do business. It is important

that the Government allows sufficient time

for the Consumer Duty to embed before the

next round of regulatory changes, and that

a sufficient implementation period for the

reform is allowed.

Clarity will be required as to the new

regime’s application, including to ‘live’

agreements and FOS scope (with a focus

on avoiding likelihood of retrospective

application by FOS or claims management

companies (CMCs) activity in this regard).

Electric vehicle financing is extremely

difficult within the current regime.

This is briefly noted in the consultation,

and acknowledgement is given to

reform being required in this area.

It’s our view that industry responses

to the consultation should set out in

detail the particular challenges in this

regard, to support effective reform in this

area.

Retaining voluntary termination for

use as a forbearance tool in financial

difficulties risks duplication or creating

inconsistencies, given that such provision

is already made in the Consumer Credit

sourcebook, and risks not eliminating

the misuse of the outdated right to the

detriment of the market.

Unfair relationship provisions are broadreaching,

and their application by CMCs,

FOS and the courts, and views taken by

consumer bodies vary hugely, creating

uncertainty across the market, non-optimal

customer protection and less competitive

pricing. Reform in this area needs to be

very clear.

There does not appear to be any mention

of other key matters requiring reform focus,

such as modifying agreements, multiples,

aggregating, cancellation vs withdrawal etc.

We expect that more detail will be included

in the next consultation.

In summary

The Government is keen for change and is

looking to understand what stakeholders

think. The process won’t take place

overnight so those with a view ought to

take the opportunity to speak up and make

their views known. The current regime is

50 years old, a chance to influence change

may not come around again any time soon.

Jeanette Burgess is a Partner, and

Sarah Mertes a consultant, at Walker Morris

LLP.

❝

The Consumer Duty

will significantly

impact how firms

do business. It is

important that the

Government allows

sufficient time for

the Consumer Duty

to embed before

the next round of

regulatory changes,

and that a sufficient

implementation

period for the reform

is allowed.

❝


OPINION

A Broken System

Debt collectors are going above and beyond

their job, without fair remuneration.

AUTHOR – David Sheridan FCICM

THE cost-of-living crisis is putting

significantly more strain on a Debt

Collection Agency’s capability

to support and deliver good

outcomes to customers that are

increasingly non-commercial. As

a result, this means many DCAs are providing

sensitive and complex activities for free. This is

not sustainable, and many more creditors need

to step up and support the valuable work their

DCAs do by paying them fairly.

Crisis care

All of us working in consumer debt recovery

accept that ‘Joe Public’ will have little sympathy

for debt collectors who are struggling financially

to make a reasonable return on their activities.

However, I am fairly sure the average person

doesn’t realise that authorised DCAs like us are

expected to identify and support vulnerable

customers and when appropriate, direct them

to third party firms who can help them deal

with their circumstances. In some cases, agents

are expected to intervene and seek emergency

assistance for those customers who are

threatening serious self-harm. The fact is the

customer and their situation trumps the debt.

Our team of customer facing agents have the

details of various organisations and firms who

support customers through a range of issues.

Firms including Samaritans, Mind, Refuge, and

so on. Every day our agents are either assisting

a significant number of customers with

their vulnerable circumstances or signposting

them to these specialist firms and placing the

account on hold whilst the customer gets the

support they need. For the vast majority of our

clients, this identification and signposting is

bundled within the typical ‘no success, no fee’

commission model that the debt collection

industry has operated on for decades.

Falling income

However, as more and more customers are

struggling to repay and those who can make a

repayment are having to accommodate larger

household bills, average debt payment plans

are dropping and ultimately income levels are

falling for DCAs. This remuneration model

directly opposes good customer outcomes as it

doesn’t reward for all good outcomes, just those

that generate payments.

Whilst firms can say they operate a balanced

scorecard, the fact is, to increase revenue,

you have to increase collections, and with so

many vulnerable customers in the current

❝

If you consider that

median salaries

in the retail

environment, with

nothing like the

complexities and

challenges of the

interactions with

customers, our

environment is

not for the faint

hearted.

❝

environment, this is simply not possible.

Instead, firms spend large amounts of time

talking to and corresponding with vulnerable

customers who are unable to pay, with the result

that the DCA doesn’t get paid either, despite the

time spent. In general, within the industry,

commission rates haven’t increased for years

and in real terms, with variable costs rising

substantially, that’s a pay cut.

A supportive environment

We, like many DCAs, are committed to

delivering the right outcome for customers

and ensuring our agents are trained to identify

and support customers struggling. The level of

wellness alerts that we would class as serious

has in the past 12 months doubled year on

year. These events are challenging for our

agents to handle and have taken a toll on the

mental health of our employees. This aspect

of the role is complex and sensitive but also

contributes towards a high attrition rate. If you

consider that median salaries for customer

facing agents are comparable to salaries in

the retail environment, with nothing like the

complexities and challenges of the interactions

with customers, our environment is not for the

faint-hearted.

We have invested heavily in supporting all

our employees and especially front-line agents

with a comprehensive Employee Assistance

Programme, supplemented by having

accredited mental health first aiders throughout

the business. We currently have one for every

ten members of staff. We have a dedicated

wellbeing team to create and support wellbeing

throughout the business from a running club to

promoting healthy eating and even a yoga group!

Customer feedback

Happy and engaged employees lead to positive

interactions. We track online customer reviews

and feedback to get a sense on how we are doing.

The following are real comments (you can look

them up):

“I’ve just come off the phone to Ian after a

long conversation about my Very account. He

was very nice and professional. Thanks Ian,

I really appreciate your help! Good work.”

“Very kind and helping you as much as they

can. Thank you.”

“After panicking about my debt, I spoke to a

lovely lady on the phone, who reassured me that

once the payment was made, I would have no

more dealings with their client. I was able to

make the payments at a time to suit me and my


OPINION

AUTHOR – David Sheridan FCICM

financial situation. I didn’t get her name,

but she was very helpful and I was grateful

to be reassured.”

“Very helpful, informative, put my mind

to rest, very kind and considerate. Great

help.”

“The representative I spoke with was

patient, understanding, and went above

and beyond to help me resolve my issue.

Their knowledge and expertise were

evident, and they were able to quickly

and effectively address my concerns.

I am truly impressed by the level of

service I received and will not hesitate to

reach out in the future should I have any

other questions or needs. Thank you for

making my experience such a positive

one.”

“I spoke with Charlotte this morning

who was so kind and genuinely gave the

best customer service that I’ve had from

any company in such a long time. She

offered genuine support and spoke to me

like a human rather than a thing. If every

company had someone like her I feel like

more people would contact to get help.”

❝

Reviews like this show how much of a difference our

front-line staff can make and we’re really proud of this

feedback. I am sure other DCAs can share similar stories

and feedback. Of course we’re not perfect but we are

committed to giving our people the support they need to

be able to deliver great outcomes consistently.

❝

“Can’t ask for a better service. I have

been going through a difficult time at the

minute and they have been incredibly

patient and helpful.”

“ARC was really helpful for me. Nobody

likes debt and it’s always a difficult

situation. But every time I spoke to ARC

they were friendly and always made sure I

was up-to-date on more priority bills and

that I wasn't getting into trouble before

paying what I could.”

Reviews like this show how much of a

difference our front-line staff can make

and we’re really proud of this feedback.

I am sure other DCAs can share similar

stories and feedback. Of course we’re not

perfect but we are committed to giving our

people the support they need to be able to

deliver great outcomes consistently.

Fair pay

I believe the industry needs to support

the professional development of its

people given the valuable role they play

in supporting customers through difficult

real-life challenges. The skills, behaviours

and knowledge that customer facing

agents learn within the DCA industry are

not thrown away, they are highly valuable

transferable skills. The industry can only

do that if firms are paid fairly for the

total outcomes they achieve and not just

commercial ones.

We are proud to have the support of

many of our clients in regard to fair

remuneration levels and in some cases pay

for non-commercial outcomes because

they want us to deliver good outcomes,

not just for customers who are able to pay

their debts.

If you use a DCA, I’d encourage you to

go and visit them, sit with their agents and

listen to real time conversations and see

and hear first-hand the important work

they do and how it’s not just about the

debt but the customer and getting a good

outcome for their situation.

David Sheridan FCICM is Operations

Director at ARC Europe. He was recently

speaking at a CICM Technical Committee.


INTERVIEW

COMPUTER

SAYS YES

Sean Feast FCICM speaks to Gary Brown about

his life in credit, the concept of Debt Register,

and his fondness of snowboarding.

FOR a man who died three times on

the day he was born, Gary Brown

has shown remarkable tenacity.

It was clear from the start that

Gary wasn’t a quitter, and it is

this refusal to let things go that

ultimately led to the launch of Debt Register:

“I would obviously say there was no lasting

damage from those three deaths,” Gary laughs.

“Other people may say different!”

By his own admission an unspectacular

student, Gary left school in 1991 with two D’s,

two E’s, two F’s and three U’s at GCSE. One of

those U’s, amusingly, was in computing. He

also managed to fail a B-Tech in business and

finance: “It seems quite perverse that I now own

an award-winning tech company,” he says, “and

that Debt Register has just been recognised in

the CICM British Credit Awards for Fintech,

innovation and technology!”

Credit Journeymen

Born in Epsom and raised by his mother and

stepfather in Chessington, Gary attributes much

of his work ethic to the latter who held down

several jobs to support the family.

“My brother and I had a car washing round,”

he recalls, “though I seem to remember I was

the one who not only had to knock on the doors

to drum up the business, but also ended up

doing the majority of the washing!”

Having numerous part time jobs ranging

from delivering pizzas to distributing flyers for

a local estate agent, and a firm desire to one day

to own his own business, Gary happily flitted

from one job to the next: “I thought it was a

sensible option to just be exposed to as many

different companies and processes as possible,”

he explains.

Originally studying the AAT qualification with

a view to becoming an accountant, Gary fell into

credit, partly having been told that he was ‘too

loud and too bold’ to work in accountancy. He

began studying to become an ACICM and after

a few project roles, joined the BBC as assistant

credit manager for 18 months, before launching

the first of his new businesses, Financial

Recoveries.

Funding the launch required working night

and day: “I got a job Friday and Saturday nights

stacking shelves in Sainsbury’s. I needed £500

❝

Why does legal

action work? It

works because if you

don’t pay the bill,

you get a judgment

against you, and

the judgment hits

your credit rating.

People pay a legal

claim because

they don’t want the

consequence; if there

was no consequence

on their credit

rating- they wouldn’t

pay it.

❝

a month for rent (I was renting a room from a

friend) and sold literally everything I owned.

I raised around £7,000 to get the business off

the ground. The lowest point in that journey

was when my bank account showed I was

£76 overdrawn. I have never been overdrawn

since.” It was while building his commercial

debt recovery business that Gary decided to

register a number of domain names, including

Debt Register.com: “I had no concept of another

business at that time, but the name sounded

good,” he laughs.

Debt Register evolved from Gary’s experience

in collecting commercial debts: “My Financial

Recoveries business had evolved and

become quite established with larger clients

internationally,” he explains. “But what we

found was that without any threats or recourse

for failing to settle a debt, in those cases where

legal action simply wasn’t cost-effective, some

people simply didn’t pay.

“We had one sizeable debt overseas, and that

is precisely what happened. They refused to pay,

it wasn’t cost-effective or practical to litigate,

and so the very early concept of Debt Register

began to form in my mind, and I set to work

building it.”

Learning Process

Early work in developing Debtchase.com, a

forerunner to the Debt Register platform, ran

into difficulties. A succession of individual

developers and consultants were employed, with

little to show for the investment he had made. At

one critical point, the developer died, with the

job still only 80 percent finished: “Debtchase

became a bottomless pit,” Gary concedes.

One of the early lessons Gary learned,

therefore, was the need to build a team, and not

be reliant on a single point of failure. He also

learned to work to a fixed price. It was a team,

therefore, that built the first crude version of

Debt Register, and developed the minimal viable

product (MVP) ready to trial.

Gary was excited in seeing what it could

deliver: “We put a debt on the system that was

owed to the British Medical Journal by the Saudi

Arabian Medical Association. It was for around

$750,000. We had tried to collect it with no

success. Then we loaded it into Debtchase.com,

which had a 14-day consequence for failing to


INTERVIEW

AUTHOR – Sean Feast FCICM

pay, and the Association settled on the 14th day.”

The fee from the action alone was significant

enough for Gary to invest further in its

development: “It was at that point the

penny dropped and I knew we were onto

something. It probably took another three

or four years from that point for things to

really move on, but it was well worth the sleepless

nights.”

The final version of Debt Register is a cash

recovery tool that credit and collections teams

can simply plug in and set to work, freeing them

to focus on more value-added activities.

As a platform, a customer simply uploads an

overdue invoice with all of the debtors’ details

and the system does the rest. Automated emails

inform the debtor that any non-payments will be

reported to the credit reference agencies which

ultimately impacts their own credit rating. In real

life, most outstanding invoices are responded

to or settled within seven days. It’s no burden

on the credit manager, and is actually proven to

improve team morale, complementing the credit

department’s efforts, rather than replacing them.

❝

Snowboarding is like the perfect switch

off because you are focusing on what

you are doing now, in the moment, so

much so you don’t sit and think about

other stuff, It’s like enforced meditation.

❝

Artificial intelligence

The system has a layer of artificial intelligence

(AI) built in to recognise errors and prevent

chasing expired emails, staff that have left or

even companies no longer in business. The

same technology can also recognise time zones

and working days in different countries and

deliver auto-translated chasers to countries at

appropriate times, such as the Middle East being

delivered on a Sunday, rather than Friday.

“Through integration with a client’s system,

Debt Register ensures that any debts settled are in

the client’s bank account as soon as they are paid,”

Gary explains.

“When a debtor is sent an email, they are taken

to a temporary portal where they are given the

option to accept the debt, accept part of the debt

or contest it. From there, the creditor can continue

with payment of part of the debt, continue

with contesting the debt or move forward with

reporting the debt to the reference agencies.”

So far Debt Register has proved so effective,

that users suggest it is saving the average credit

controller two hours of their time per day in

chasing ‘uncollectable’ debt: “This is enabling

the credit controller to act proactively rather than

reactively by letting the system reduce the strain,”

Gary explains.

Some of its successes are quite remarkable. In

the first 18 months of launching, Debt Register

helped 12 international clients recover £15.9m

worth of overdue debt. The largest debt recovered

was £1.9m and the smallest a mere £7.19! The

fastest debt recovered was one for £77,000 that

took eight minutes to land in the customer’s bank;

the oldest debt recovered was a staggering 2137

days past due date.


INTERVIEW

AUTHOR – Sean Feast FCICM

Credit & Collections FinTech Supplier Award winner 2023 Gary Brown (2nd from left).

Action and consequence

Gary believes the success of Debt Register is

down to the consequence, and how it effectively

mimics legal action: “You’re drawing a line in

the sand and you’re saying this is what’s going to

happen,” he explains. “You’re no longer chasing

the debtor who is being elusive; instead it’s the

debtor who is coming to you.

“Why does legal action work? It works because

if you don’t pay the bill, you get a judgment

against you, and the judgment hits your credit

rating. People pay a legal claim because they

don’t want the consequence; if there was

no consequence on their credit rating- they

wouldn’t pay it. When you think about it,

that’s exactly what Debt Register is doing, it's

mimicking legal action, but doing so without

the need to pay money upfront or getting bogged

down in a lengthy process because the debtor

has launched some spurious defence.”

Others clearly agree. Typical clients have

a turnover in excess of £100m, 14 percent

trade debt, and a credit team of half a dozen

employees. Since its launch, Debt Register has

found favour with a number of large customers

within the FTSE 100, 250 and Fortune 500.

Every license sold has been renewed: “That’s a

testament in itself,” he says.

“Our clients autonomously achieve a

settlement rate of 82.4 percent for all debts

engaged, with over 52 percent of payments

secured within seven days of being uploaded. To

put that into perspective, those debts averaged

❝

“It seems quite

perverse that I now

own an awardwinning

tech

company,” he says,

“and that Debt

Register has just

been recognised in

the CICM British

Credit Awards for

Fintech, innovation

and technology!”

❝

143 days past due. The product works, the clients

are happy, and credit managers have something

else in their tool kit that enables them to deliver

a fast consequence to the debtor.”

Enforced Meditation

Gary is constantly on the go, his mind

permanently active – perhaps even hyperactive

– something he believes is linked to having been

diagnosed Dyslexic at the age of 15.

While we are speaking, he is thinking how

Debt Register can help CFOs and Financial

Directors more accurately estimate their bad

debt provision by effectively ‘washing’ debts

through the platform first. He also sees how it

can significantly improve liquidity and working

capital, especially in the context of the increased

cost of funding now evidenced through rising

interest rates.

He finds peace and tranquillity in

snowboarding: “Snowboarding is like the perfect

switch off because you are focusing on what

you are doing now, in the moment, so much

so you don’t sit and think about other stuff,” he

explains. “It’s like enforced meditation.”

His other passion is credit: “I like that idea

that anyone in credit, male or female, young or

old, can be a success. This industry is amazing

and can take you anywhere. I left school without

any qualifications to speak of and the industry

is now my life. If you put yourself out there, and

are prepared to be creative, there’s no limit to

what you can achieve.”


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Data: 2022.08.08 18:47:58

+03'00'

Moneyknows no borders—neither do we


YOUNG MONEY

Growth Plan

Professional development is the best way to

nurture your credit management career.

HAVING developed his aptitude

for finance at university, Hevar

Khalil had a whole spectrum

of career possibilities to

choose from.

Following a short stint

in operations management, he switched to a

career in credit management, preferring the

balance of financial and people skills required

by the latter. And in becoming a Graduate Credit

Manager Trainee at Edmundson Electrical, he

gained a foothold in the industry.

Navigating his early career during COVID,

the fully funded CICM Level 3 in Credit

Management offered as part of his training

was of great support. It provided a way forward

when much of the world came to a standstill:

“I was determined to catch up with colleagues

AUTHOR – Roshika Perera

❝

I think qualifying in

credit management

gives you an edge,

compared to doing

something broader like

economics. It covers

so much, from risk

management to people

skills and customer

relationships.

❝

who were far more experienced and the CICM

course was the most efficient way to do this,” he

explains.

“With everything slowing down during

COVID, there was a lot of room to waste time.

But CICM helped me remain focused, offering

some certainty in an uncertain climate.”

Education vs experience

Young people are often seemingly presented

with a choice, whether to stay in education or get

a job in the real world. For Hevar, an engaging

job needed an educational element. It ensured

that he wouldn’t get stuck in a rhythm of doing

repetitive work without learning anything new.

And it’s the reason he went on complete a Level

5 in Credit and Collections Management and is

keen to stay involved with CICM.


YOUNG MONEY


“Professional development was always very

important to me. Relying on experience can

be a bit hit or miss, depending on the projects

you’re involved in,” he says. “I wanted to be the

best I could be in this role, and having no prior

exposure to credit management, enrolling in

the CICM course was an easy decision.”

He didn’t go into it lightly, however, and knew

that he would have to apply himself – especially

when it came to his Level 5 which he completed

outside of work hours. “I wanted to do well,” he

says, “and it does require a significant amount

of work, but in hindsight, it is definitely

worthwhile.”

New Knowledge

To excel at a CICM course requires the capacity

to manage a demanding workload that includes

research, course work and exams. Yet, despite

the hard work, he found the courses to be

intellectually stimulating: “I found the modules

to be very engaging,” he says.

“I enjoyed learning about business law the

most as it was interesting to learn about how

laws are decided. We reviewed very specific

cases and how they led to the creation of new

laws to prevent certain events from happening

again.”

Hevar believes that his CICM education has

given him the core skills needed to be a credit

manager and expanded his knowledge of the

wider industry, which in turn improves his

performance at work: “In addition to learning

about credit management itself, I had exposure

to the legal side of the industry, debt collection

and so much more.

There were some elements, like business

law, that I covered at university, so I could have

had exemptions, but I was glad to cover them

again in a credit context. And you can apply

everything you learn to your day-to-day tasks.”

The day-to-day

Having completed his training at the end

of 2021, Hevar was promoted to the role of

Assistant Credit Manager at his firm, where he

has an array of responsibilities that keep him

busy:

“As well as helping manage the day-to-day

in the south-west branch, I work on credit

risk tasks. We get applications from customers

daily, and I do account appraisals and decide

credit limits on those. I also sometimes offer

advice on payment plans and work alongside

legal to help resolve certain issues.”

And what’s his favourite part about being

a credit manager? “It’s far from a onedimensional

role,” he replies. “There’s a

leadership side, where you need to work on

team building. And there’s the technical and

analytical side of credit. And then there’s

the customer relationship side, where you’re

talking to customers on a daily basis. So, there’s

plenty of variety in what you do.”

The variety is not without its challenges. It is

one thing to analyse and crunch numbers and

quite another to be able to show empathy when

dealing with customers who have reached

breaking point. A good credit manager is

expected to do both:

“You have to deal with a number of

sensitive customers and have to find the right

balance between helping them, because you

sympathise with what they’re going through,

while also maintaining your responsibility

to the company. It’s tough having to make

decisions that can affect someone’s business

and the jobs of the people they employ.”

Full Circle

Recently, Hevar was appointed an Independent

Assessor at CICM, a part-time role where he is

using his previous experience as a learner to

assist the CICM team assess current learners.

Although he has completed his learning for

now, it was important for him to stay involved

in the Institute:

“Each of my CICM courses helped me move

up in my career quicker and I want to keep

that momentum going. Working alongside

people who have 10-15 years of experience on

me, I feel compelled to take on extra activities

to demonstrate my competence as a credit

manager, which others could demonstrate

through their experience.”

Having started out as a Level 3 apprentice,

he is enthused to have come full circle in

his CICM journey, saying: “Being given the

responsibility of helping maintain the quality

of the profession by helping CICM prepare

future apprentices to become senior credit

controllers and credit managers is a validation

of how far I have come in my career.”

Career Advice

Hevar unreservedly recommends credit

management as a career for anyone interested

in finance: “I think qualifying in credit

management gives you an edge, compared

to doing something broader like economics.

It covers so much, from risk management

to people skills and customer relationship

management, despite also being pretty niche.

“There are some careers that pigeonhole you

into a certain path. With credit management,

you gain skills that can be transferred to so

many other careers, if you decide that it’s

not the right path for you.” As for Hevar,

he is confident he made the right decision:

“I felt restricted in my last role in operations

management. Now, while my dayto-day

involves an element of

operations management, I

get to participate in all these

other dimensions related to

credit, which is a lot more

engaging,” he concludes.

❝

Hevar believes

that his CICM

education has

given him the core

skills needed to be

a credit manager

and expanded his

knowledge of the

wider industry,

which in turn

improves his

performance

at work.

❝


CICM TRAINING

Training courses that offer high-quality approaches

to credit-related topics and practical skills

Now, more than ever, the Credit Management and Collections industry

is seeing drastic changes and impacts that affect the day-to-day roles of

Credit and Collections teams.

CICM Training offers high-quality approaches to credit-related topics.

Granting you the practical skills and necessary tools to use in your

workplace and the ever-changing industry. A highly qualified trainer, with

an array of credit management experience, will grant you the knowledge,

improved results, and greater confidence you need for your teams to

succeed in the Credit Management profession.

Get trained with your

professional body and the only

Chartered organisation that delivers

Credit Management training


On-Demand | Online | Face-to-Face

METHODS OF DELIVERY

CICM Training courses can be delivered through a variety

of options, ensuring a range of opportunities for your

teams to be trained on the most up-to-date methods in

CICM On-Demand

Training

CICM Online

Training

CICM Face-to-Face

Training

On-Demand training can be viewed anytime, anywhere with our downloadable

training videos.

Online training will be for those who find it easy to learn from the space

of their home or office.

Face-to-face training It’s been a long time coming but now you can mingle and

learn together in the same room as your colleagues and peers.

TRAINING COURSES

CICM have a collection of training courses to meet the needs of your Credit and

Collections’ teams. Take a look at the courses below and start training towards

the CICM Professional Standard.

Advanced Skills in Collections • Best Practice Approach to Collections

Best Practice Skills to Assess Credit Risk • Collect that Cash • Credit Bootcamp

Effective Communication in the Credit Role • Emergency Guide to Credit

Harness your leadership Style • Know Your Customer • Managing Insolvency

Reflect and Develop • Set Targets that Work

For more details, visit our website, scan the

barcode or contact us at info@cicm.com


SECTOR FOCUS

SONIC BOOM

European manufacturers are bouncing back

to pre-COVID production volumes.

AUTHOR – Les Clisby

MANUFACTURING firms in

Europe are faring better

than their UK counterparts,

bouncing back to pre-

COVID-19 levels of production

and being more optimistic

for the year ahead.

Almost nine out of ten (87 percent) of

engineers surveyed in Germany and the

Netherlands for The State of Manufacturing 2023

Report, conducted for Essentra Components

by The Engineer magazine, report that their

businesses are back to at least pre-COVID-19

levels of production (compared to 70 percent of

the UK sample).

This bounce-back is most pronounced

amongst the Netherlands response group, where

more than half (55 percent) say that business is

‘booming’.

Dutch and German businesses also appear

to have experienced a milder economic

impact, with 44 percent of the response group

(compared to 35 percent from the UK) saying

that the revenues were either unaffected, or

actually increased during the pandemic. Once

again, this trend appears most pronounced in

the Netherlands, where a quarter of respondents

report an increase in revenues.

Europeans, however, are feeling less cheerful

than their UK peers about the impact of the

pandemic on careers in industry. More than half

of the respondents (52 percent) say that their

business has reduced in size since the pandemic

(compared to 45 percent for the UK) and just

12 percent have taken on extra employees

(compared to 18 percent for the UK).

Attrition rates appear to be much higher in

the Netherlands; 64 percent of respondents

say they have lost staff compared to 39 percent

of German firms. Nearly half (46 percent)

also believe their career progression has

been negatively impacted (compared to 30

percent amongst the UK group). Once again,

respondents from the Netherlands appear to

have been disproportionately impacted.

When it comes to technology, European

engineers appear broadly much more positive,

with 80 percent of respondents saying they

have an active investment plan for new

technologies, and 81 percent viewing the

advance of technology as a positive trend

(compared to 72 percent for the UK). European

respondents also appear to be far more serious

about digitalisation and Industry 4.0, with 66

percent flagging this as a priority area for

investment (compared to just 37 percent in

the UK). As with the UK sample, a significant

❝

While it may take

a decade or more

to wean Europe

away from its

dependence on fossil

fuels from Russia

and transition to

alternative energy

sources (e.g. green

hydrogen, wind

and solar, and

nuclear), this very

transition will

mean that greater

sustainability will

be achieved through

osmosis.

❝

proportion of respondents (79 percent) report

experiencing supply and logistics challenges

with both Germany and the Netherlands

seeing a broadly similar impact. Similarly,

most of the sample group (94 percent) report

being impacted by global price increases and a

significant tranche of the sample (22 percent)

believe that current problems could last

indefinitely.

As in the UK, organisations are taking a

variety of actions to mitigate the effects of these

challenges, cutting overheads (45 percent),

increasing prices (45 percent) and sourcing new

suppliers (43 percent). German firms appear

more likely to prioritise reducing overheads.

Two thirds of respondents from the European

group say their businesses’ approach to health

and safety has changed following the pandemic.

The majority (79 percent) feel their mental

health is now being taken seriously.

Hugues Delcourt, Chief Sales Officer &

Director, EMEA Essentra PLC, is not surprised

that Europe is bouncing back faster than its UK

counterparts: “Within any economic challenge,

there are winners and losers,” he explains, “and

the smarter businesses seek to ‘win with the

winners.’

“In manufacturing and engineering terms,

that means focusing on those companies that

are engaged in the ‘newer’ industries involving

electrification, for example, as evidenced by the

recent award of a £1.3m contract to Essentra

for a business building solar farms around the

world. It appears that European firms have

been better than those in the UK in adapting

to the changing environment and in building

momentum and scale.”

Despite the number of firms encouraged by

the speed of recovery, Hugues sounds a clear

note of caution: “The current six- to ninemonth

lag that occurs before any new order is

materialised, and a slow Q4 pipeline, means

that many are warning of a difficult H1 but are

more bullish about the second half of the year.

“That’s not to say there aren’t issues that

will impact us all in the year ahead. Talent –

especially the more expert engineers and those

in the digital and ESG space – is still difficult to

come by, and the slowing down of immigration

from Eastern Europe, North Africa and India is

also placing considerable strain on resources.

The picture, however, is not universal: in Spain

and Portugal, for example, labour shortages are

not such an issue and there is less pressure on

salaries. In Poland and Turkey too, it is easier

to recruit, so it is important for firms to know

where to focus their investment.”


SECTOR FOCUS

AUTHOR – Les Clisby

Hugues Delcourt, Chief Sales Officer ❝ & Director, EMEA Essentra PLC, is

not surprised that Europe is bouncing back faster than its UK counterparts:

“Within any economic challenge, there are winners and losers, and the smarter

businesses seek to win with the winners.’’


23

M EUROPE

SECTOR FOCUS

ject,

EUROPE

engineers working in the

Has your business returned to pre-COVID-19 levels of production?

nded to the same set Has of questions.

your business returned to pre-COVID-19 levels of production?

50 AUTHOR –

45%

Les Clisby

50

42%

45%

40

Sustainability is an 42% interesting subject,

of production (compared to 69 per cent of the UK sample)

Has your business returned to pre-COVID-19 levels of production?

ers working and but 14 per again cent that the output Hugues levels are still says reduced.

40

it is perhaps Has your business returned to pre-COVID-19 levels of production?

This bounce-back most pronounced amongst the

30

e same not a surprise that many European

Netherlands

set of

response

questions.

group, where 55 per cent say that

business manufacturers is booming. see the drive to net zero as

50

According to our results, German and Dutch businesses

20

45%

a hindrance, rather than an opportunity:

also appear to have experienced

30

14%

say business is back to

a milder economic impact

42%

“Some are being driven by short-term

87%

than their UK cousins, with 44 per cent of the response group

pre-pandemic levels

(compared to 35 per cent from the UK) saying that the revenues

10

pragmatism; the need to mitigate against

40

were either unaffected, or actually increased during the

roduction (compared pandemic. both Once inflation to 69 again, per 20 cent of and the UK energy sample) availability

57% are struggling to fill vacancies

this trend appears most pronounced

14 per cent that in the

means output Netherlands, levels where

the are a

focus still quarter reduced.

of respondents report an

0

is on the end of the

14%


Business has returned

increase in revenues. The individual sector samples are too

his bounce-back is most pronounced amongst the

30

Output levels are

Business is booming

month, as opposed to the end of the

to pre-COVID-19 87%

small to draw any meaningful conclusions on how this varies

still reduced pre-pandemic 62% levels are feeling positive about the future

herlands response group, where 55 per cent say that

levels of production

s

across the different verticals.

world. On 10a wider point, the good work

iness is booming.

Figures rounded to nearest whole number and may affect numeric total.

ccording to COVID-19 our

being

results, AND done

German CAREERS in countries

and Dutch businesses

like Denmark and

20

57% are struggling to fill vacancies

Interestingly, given the broadly more positive post-COVID-19

appear to have Spain experienced is counteracted a milder economic by impact the backward

14%

response, the European 0 sample is feeling less cheerful than

n their UK cousins, steps with being 44 per cent taken of the response under group short term

87%

its UK peers about the impact of the pandemic careers Business has returned

pared to 35 pressure per cent from and the UK) the saying climate that the revenues

10 Output levels are

in industry.

Business is booming change denial

62% are feeling Have positive you noticed about a lack the of qualified future applicants

to pre-COVID-19

More than half of the respondents from this group (52 per

e either unaffected,

being

or

voiced

actually increased certain

during

Eastern

the

Salaries and still skills reduced

applying for outstanding vacancies?

cent) say that their businesses have reduced in size since the European

levels of productionAs with the UK phase of the report, we asked respondents

demic. Once pandemic again, this trend appears most pronounced

countries.

(compared

This

to 45 per

inevitably

cent for the UK) and

leads

just 12 per

to the EU

actively involved in recruiting (45 per cent of the sample) to

e Netherlands, where a quarter of respondents report an

0

cent have taken on extra Figures employees rounded (compared to to nearest 18 per cent whole number and may comment affect on current numeric skills total. and recruitment challenges.

having to compromise on key decisions

Business has returned

ease in revenues. for the UK). The individual sector samples are too

Just over half (57 per cent) say they are struggling to fill

Output levels are

Business is booming

ll to draw any which

Attrition rates

meaningful hampers

appear to be much

conclusions progress.”

higher in the Netherlands

vacancies, an improvement on the UK picture. to pre-COVID-19

on how this varies

still reduced

with 64 per cent of this sample group telling us they have lost

However, in line with the UK findings, almost

ss the different The verticals. crisis in Ukraine, however, and

levels

three

of production

staff. Amongst German respondents, this figure is 39 per cent.

quarters (71 per cent) say that the applicants they are getting

No

the

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this

reports

is

a greater

having

slowing of

in

career

the supply

frequently Figures lack the rounded necessary to skills nearest and qualifications, whole number whilst and may affect numeric total.

progression than is seen in the UK sample, with 46 per cent of

41 per cent of respondents also note a growth in resignations

ID-19 AND of CAREERS

the response energy group believing via Russia that their career will progression lead was to change: at a senior level.

Have you noticed a lack

29

of qualified % applicants

restingly, given negatively the broadly more positive post-COVID-19

“While impacted it Salaries may (compared take to 30 percent and a decade amongst skills the or UK more to

Given the skills gap appears to be less of an in issue

onse, the European sample is feeling less cheerful than

applying for outstanding vacancies?

group) and 71 per cent believing that their opportunities for

amongst the European response group, it’s not surprising

wean Europe As with away the UK from phase of its the dependence

report, we asked respondents

K peers about progression the impact are still of being the hampered. pandemic on careers

to find that actions aimed at attracting and retaining talent

dustry.

on Once fossil again, respondents fuels actively from involved the Netherlands Russia in recruiting - 60 and per transition

(45 per cent of the – sample) such

Have

as salary to you

increases

noticed

and flexible working practices –

cent of whom report this as an issue – appear to have been

ore than half disproportionately

to of alternative

comment

the respondents impacted.

energy

on current

from this group sources

skills and

(52 per (e.g.

recruitment

green

challenges.

appear a

Salaries

lack to be less of common qualified

amongst this response group. Just

39 per cent of respondents and report skills that salaries have increased

Yes

Just over half (57 per cent) say they are struggling

t) say that their hydrogen, It should businesses be noted, have wind that these reduced findings and are size solar, almost since certainly and the nuclear), (compared applicants to fill

As with to 47 the per UK cent phase for applying

the UK) of the and 35 report, per cent we tell asked us respondents

influenced by the relatively junior nature of the European

demic

s

(compared this to very 45 per

vacancies,

transition cent for the

an

UK)

improvement

will and mean just 12 per

on the UK picture. that

that greater for their

actively outstanding

employer has a hybrid working programme in place

involved recruiting (45 per cent of the sample) to

71 %

sample group, which by definition is more likely to be exploring

(compared to 63 per cent for the UK).

t have taken options on extra employees However, (compared in line to 18 with per cent the UK findings, almost three comment on current skills and recruitment challenges.

sustainability for promotion and progression. will be In contrast, achieved it can through vacancies?

Finally, based on these results, engineers in Europe appear

the UK). probably be assumed quarters that the senior (71 engineers per cent) responding say that to the applicants they more are likely getting Just than over their half UK counterparts (57 per cent) to believe say they that the are struggling to fill

osmosis,” he concludes.

No

ttrition rates the appear UK wave to of the be research much frequently higher are generally lack in the less the Netherlands

likely necessary to actively skills and qualifications, pandemic vacancies, whilst has been an positive improvement for the profile on of manufacturing,

the UK picture.

search “As for opportunities we for discovered career progression. ourselves in with 47 per cent agreeing that this is the case.

64 per cent of this sample 41 group per cent telling of us respondents they have lost also note a growth in resignations However, in line with the UK findings, almost three

s . Amongst German embracing respondents, at a the senior this greater figure level. is 39 use per cent. of recycled

quarters (71 per cent) say that the applicants they are getting

No

his sample group plastic also reports content Given a greater the in slowing skills our gap of career manufacturing

appears to be less of an in issue frequently lack the necessary skills and qualifications, whilst

gression than processes, is seen in the amongst UK the sample, net the with European result 46 per cent response is of an group, equally it’s not surprising 41 per cent of respondents also note a growth in resignations

response group

good

believing

product

that to find their that career actions progression

is also aimed significantly

at was attracting and retaining at talent a senior level.

atively impacted (compared to 30 percent amongst the UK

Given the skills gap appears to be less of an in issue

more sustainable – such as salary while increases remaining and flexible price working practices –

p) and 71 per cent believing that their opportunities for

amongst the European response group, it’s not surprising

competitive.” appear to be less common amongst this response group. Just

29 % Yes


pre-pandemic levels

57% are struggling to fill vaca

62% are feeling positive abou

Have you noticed a lack of qualified a

applying for outstanding vacan

29 % 7

20 21 www.essentracomponents.com

gression are still being hampered.

to find that actions aimed at attracting and retaining talent

39 per cent of respondents report that salaries have increased

nce again, respondents from the Netherlands - 60 per

– such as salary increases and flexible working practices –

(compared to 47 per cent for the UK) and 35 per cent tell us

t of whom report Les this Clisby as an is issue a freelance – appear to business have been and

appear to be less common amongst this response group. Just

that their employer has a hybrid working programme in place

The state of manufacturing 2023

roportionately industry impacted. writer.

39 per cent of respondents report that salaries have increased

(compared to 63 per cent for the UK).

t should be noted, that these findings are almost certainly

(compared to 47 per cent for the UK) and 35 per cent tell us

71 %

enced by the relatively junior nature

Finally,

of

based

the European

on these results, engineers in Europe

that

appear

their employer has a hybrid working programme in place

ple group, which by definition more is more likely likely than to their be exploring UK counterparts to believe that (compared the to 63 per cent for the UK).

The state of manufacturing 2023

Roughly what percentage of your budget is

ons for promotion and progression. pandemic In contrast, has been it positive can for the profile of manufacturing,

Attitudes to Finally, technology based on these results, engineers in Europe appear

assigned to technology investment?

ably be assumed that the senior with 47 engineers per cent responding agreeing that to this is the case. When it comes more to technology, likely than the European their UK sample counterparts group is to believe that the

UK wave of the research are generally less likely to actively

broadly much pandemic more positive, has with been 80 per positive cent of for respondents the profile of manufacturing,

telling us that their business has an active investment plan for

ch for opportunities for career progression.

with 47 per cent agreeing that this is the case.

0-19 %

33%

new technologies (compared to 66 per cent for the UK) and 81

per cent viewing the advance Roughly of technology what percentage 21

as a positive trend of your budget is

www.essentracomponents.com

itudes to technology

What percentage of your budget is assigned to technology investment?

(compared to 72 per cent for

assigned

the UK). Attitudes

to technology

here are broadly

investment? 20-29 %

Supply

32%

chain challenge

en it comes to technology, the European sample group is

the same across the Netherlands and Germany groups.

21 As with the UK sample, a significan

www.ess

All but 7 per cent of the overall response group have some

adly much more positive, with 80 per cent of respondents

proportion of respondents (79 per

budget assigned to technology investment, and those that are

30-49 %

ing us that their business has an active investment plan for

12%

investing appear to

SPECIAL REPORT:

0-19

be putting

%

a much greater share of their

report experiencing supply and log

33%

technologies (compared to 66 per cent for the UK) and 81

budget into new technology than UK respondents. Indeed,

challenges with both Germany and

cent viewing the advance THE of technology STATE as OF a positive trend

62 per cent of the overall sample tell us that their organisation

50% or above 4%

Netherlands seeing a broadly simi

is investing 20 per cent plus of its budget into new technology.

pared to 72 per cent for the UK). Attitudes here are broadly

MANUFACTURING

20-29 %

Similarly, the majority of the samp

Again, this differs significantly from the UK sample, where just

32%

same across the Netherlands and Germany groups.

41 per cent are investing a similar proportion of spend.

No budget

20% (94 per cent) report being impacte

ll but 7 per cent of the 2023 overall response group have some

European respondents also appear to be far more serious

global price increases. Just 7 per ce

get assigned to technology investment, and those that are

about digitalisation and Industry 4.0, with 66 per cent

30-49 %

12%

they are unaffected.

flagging this as a priority area for investment (compared to just

Figures rounded to nearest whole number

sting appear to be putting a much greater share of their

Respondents do appear margin

get into new technology than UK respondents. Indeed,

37 per cent of the UK response group).

and may affect numeric total.

positive than their UK counterpar

er cent of the overall sample tell us that their organisation

50% or above 4%

how long these challenges are like

vesting 20 per cent plus of its budget into new technology.

80%

for, with 39 per cent (compared to

in, this differs significantly from the UK sample, where just

have an investment for the UK) plan expecting challenges to

er cent are investing The a state similar of manufacturing proportion of spend. in 2023

No budget

20%

for new technologies

for at least 5 months. However, a s

uropean respondents Published also appear by: The to Engineer.

be far more serious

Sustainability

chunk of the sample (22 per cent) b

ut digitalisation and Industry 4.0, with 66 per cent

In terms of action on sustainability and

that current problems could last in

ging this as a priority area for investment (compared to just

decarbonisation the UK fares rather better

Figures rounded to nearest whole number

As in the UK, organisations are

by comparison.

er cent of the UK response group).

and may affect numeric total.

a variety of actions to mitigate the

Indeed, amongst the European sample, a

Which of the following sustainability activities is your organisation

greater proportion of respondents view the

of these involved challenges, in? the most popu

push for net zero as a hindrance (32 per cent

which are reducing overheads (45

compared to just 17 per cent for the UK) and a 80

cent), increasing prices (45 per cen

smaller Brave proportion | Curious view | Resilient it as an opportunity / www.cicm.com / April 2023 / PAGE 28

have an investment plan

sourcing new suppliers (43 per cen

(52 per cent compared to 61 per cent for the

70

UK). Meanwhile, just 31 per cent view the

62%

there is little significant variation

for new technologies 60%

push for greater sustainability as an ethical

the two countries surveyed, Germa

OPINION

Managing perfection

The importance of hiring and training the right managers.

AUTHOR – Adam Bernstein

SO much has been written about

the art of management that an

individual looking to improve their

knowledge with a purchase from

Amazon had better learn to speed

read or know how to narrow a

search down. With more than 90,000 books on

the topic it’s clear that some think they have

knowledge to impart.

But just as a writer may think that they

have the experience to offer advice, it doesn’t

necessarily follow that the reader will make a

good manager.

In fact, there are countless examples of poor

management. Robert Maxwell, the late publisher

and owner of Mirror Group Newspapers, was

well known for being both demanding and

domineering.

Albert Henderson, who worked for Maxwell

between 1969 and 1977, commented in a book

on immigrant publishers that ‘his leadership

talents came with an impressive physical

stature – over six feet tall – features as striking

as Gregory Peck and a deep voice that could

resonate like a bassoon choir when he wanted

to brag or be charming. He could also bully,

barking orders and epithets with a menacing

cadence reminiscent of Dolby Darth Vader.

Reverberations of ‘‘I’ll chop off your fu**ing

head!’’ ‘‘Village idiot!’’ and ‘‘What do you do

around here?’’’

And as we all know, Maxwell created an

empire, but it fell apart in scandal.

Appointing on merit

So, what can firms do to improve their

management makeup? Ed Parsloe, Chief

Executive of The OCM Group, thinks that “a

sensible recruitment process should outline

the role, responsibilities and, crucially, the

competencies required to fulfil the role. If this is

done… then more often than not organisations

will appoint a pretty good candidate.” This

may well not be the most ‘senior’ person, but it

should be the most qualified.

David McLaughlin of the Chartered

Management Institute (CMI), agrees. He too

thinks that managers should only be appointed

for their ability to manage rather than their

seniority or technical expertise. As he says,

“management is about facilitating others to

succeed and in order to do this, you have to

understand people. If you can't manage people

and the complexities of relationships, you will

inevitably struggle.”

But what concerns Clive Lewis, Founder

and former CEO of Illumine Training, is that

all too often individuals are promoted into

❝

There is a strong

argument for

promoting from

within whenever

possible as it is

motivational for

employees to see

that working hard,

and performing, will

be rewarded.

However, being a

manager can often

involve completely

different skills and

strengths from being

successful in a pure

‘doing’ role.

❝

management roles as a reward for performing

well in their existing role. “There is a strong

argument for promoting from within whenever

possible as it is motivational for employees to

see that working hard, and performing, will

be rewarded. However, being a manager can

often involve completely different skills and

strengths from being successful in a pure ‘doing’

role.”

Another scenario that McLaughlin has

encountered is the ‘availability paradox’ where

someone is appointed purely on the basis that

they are available. McLaughlin terms these

individuals ‘accidental managers’ as they are

promoted without existing management skills,

or with little to no training opportunities once

they are promoted. The problem with this is, as

he says, “that individuals can unintentionally

be set up to fail. This often leads to the

unfortunate situation where an individual is

then performance managed – often out – with

no thought to why they have been unable to

carry out the role effectively.”

When things go wrong, it can prove expensive.

As McLaughlin outlines, not only is there

the cost of recruitment in the first instance,

there’s also the cost of training and the cost of

dealing with any fall-out resulting from the

promoted individual’s lack of management

skills.

But no matter the reason for a promotion,

Lewis is well aware that some people have

management skills – or are capable of

developing them – but crucially, others won’t.

He adds: “In truth, some don’t relish the idea of

swapping some of their ‘doing’ for managing.

They may like the idea of moving up the ladder

and earning more, but that isn’t the same as

having an intrinsic motivation brought about by

doing work that they love.”

Common mistakes

Inexperienced and accidental managers make

mistakes, many of them common. They end up

leading from the rear; Lewis has seen individuals

promoted into a management role without the

appropriate training and development - they are

unprepared or at least under-prepared. This, he

says, “leads them to feel insecure. But admitting

that is rarely an option. So, they overcompensate

by being rigid and aloof and use a ‘one size fits

all’ approach.”

McLaughlin considers the failure to

communicate effectively as by far the biggest

mistake: “Managers can fall into the trap where

communication is one-sided. This is often

portrayed as, ‘I tell you what to do and you do

it.’” He says that managers must not lose sight


continues on page 30 >

OPINION


of the fact that they need to listen and build

relationships with the people they manage.

To an extent Parsloe agrees, noting that

not listening properly and failing to give

constructive feedback are the biggest

mistakes he sees: “All too often managers pass

responsibility for ‘difficult’ conversations onto

HR or others in more senior roles when in fact

it is they who need to have them. But a manager

who truly listens, asks insightful questions and

is prepared to give feedback – both good and

bad – is worth their weight in gold.”

Some corporate cultures enhance mistakes

made and normalise them. Worse, says

McLaughlin, “it is often the case that managers

forget what they are there for – to organise

and support others. They also forget that they

manage by consent.” As McLaughlin comments

– “people don't leave jobs, they leave managers.”

To crack this nut means, for Parsloe at least,

ensuring there’s an appropriate workplace

culture which includes policies, procedures and

processes. From a board perspective, he believes

that it’s “important to consider the optimum

culture for your business – how are you going to

consistently get the best out of your people and

stay ahead of the competition?” Coaching might

help, but he warns that “it can’t be coaching for

coaching’s sake, it has to be highly targeted.

Senior managers must lead from the front and

role model the behaviours they wish to see more

broadly across the business.”

Lewis is more direct. He says that “the

development of good management practices

and of effective managers is, arguably, the

board’s more important role. The effectiveness

of managers will determine what gets done

and how well tasks are executed throughout an

organisation.”

He would put in place regular and effective

appraisals, consistent disciplinary procedures

and rewards aligned to the organisation’s overall

objectives, “to ensure that good management

thrives.”

Building relationships

Management is all about relationships and

trust. On this McLaughlin makes a critical

observation – that it’s perfectly true that “no

one will trust you simply because you are their

manager – they need a reason to do so.”

But how to build this trust? McLaughlin

considers it simple – deliver on what is promised,

support staff – both when they succeed and

when they fail, demonstrate personal and

organisation values, communicate, and also

demonstrate empathy, consistency, and clarity.

While managers should be outgoing and

inclusive, they also need to allow time for

what McLaughlin terms as “reflection and selfassessment.”

He thinks that for managers to be

effective “they need to understand the impact

they have on others, look at their own strengths


OPINION


and weaknesses, and be certain that they

recognise what levels of power they hold

and how they use that power.”

Parsloe looks to diversity as a solution.

He says that “multiple studies have

demonstrated that more diverse teams

make better decisions – this is true

at board level as it is at lower levels.”

His point is that when everyone feels

encouraged and enabled to be the best

version of themselves, then it’s likely

that there will be an inclusive culture

that is high performing. “In these

circumstances,” he says, “dominant

people are less prevalent as they have

learned the value of collaboration and

working with difference.”

Tied to this is Lewis’s recognition

that one of the most common problems

in organisations is the tendency of

managers to recruit in their own

likeness – “that often, without realising

it, managers are attracted to people who

think the same way as they do. Worse,

when someone joins a team and thinks

or works differently from the other team

members, they are subtly ‘encouraged’

to change the way they see the world; to

conform and fit in.”

A different model

Thinking outside of the box, McLaughlin

suggests running apprenticeships for

managers. As he says, they “are a fantastic

opportunity to form individuals in the

mould of an organisation and a way to

train internal staff.” A key element of

this is off-the-job training. Without it he

says that “there is the risk organisations

develop replicas of existing staff who

follow tired and out-of-date processes,

procedures, and policies.”

And Lewis wouldn’t disagree. While

he reckons that there are many ways

to ensure that individuals acquire

the skills required to make them

effective managers, “some aspects of

an apprenticeship model can be used

– on the job training, mentoring and

the gradual introduction of additional

responsibilities.”

Another benefit, reckons Parsloe, of

apprenticeship-type training is that “it

provides an excellent mechanism to

develop employees with the only budget

available.” As a result, he “strongly

recommends organisations that pay into

the apprenticeship levy to check out the

different apprenticeship standards as

there may well be one that is perfect for

them.”

Training matters

It’s no secret that training done well is

very valuable; it’s the reason why the

military carry out regular exercises

and pilots spend time in simulators.

For management, the situation is no

different. According to McLaughlin,

the “benefit of training cannot be

underestimated. Trained managers will

perform better, deliver better, facilitate

others, and achieve better outcomes

for all.”And Lewis holds the same view.

As he explains – “appointing someone

to a management role and hoping to

goodness that they magically acquire the

necessary skills simply by being called

‘manager’ doesn’t have a great track

record.”

Despite the value of training, there are

issues to consider.

One highlighted by McLaughlin is “a

fear relating to training that runs around

an old myth: ‘if I train my staff, they will

leave and get a better job.’” The truth, in

his mind, is the opposite – that untrained

staff leave for a better job.

And when engaging with training,

it’s important to consider the culture of

the organisation. If managers receive

training, is the organisation ready and

willing to look at new ways of working?

Is it ready to adopt new processes and

practices as a result of its managers

being trained? If it’s not, then the

training will be a futile exercise and will

no doubt lead to eventual departures of

staff, management or both.

In summary

It’s entirely clear that care needs to be

taken when appointing managers. The

‘warm body’ approach will not work and

assuming that an appointee is not in

need of support is a fatal mistake. Just

as firms prepare to win business, so they

should prepare when hiring managers.

Adam Bernstein is a freelance writer.

❝

A fear relating to training that runs around an old myth:

‘if I train my staff, they will leave and get a better job.’

The truth, in his mind, is the opposite – that untrained staff

leave for a better job.


International Trade

Monthly round-up of the latest stories

in global trade by Andrea Kirkby.

Exporter’s delivery methods

A

recent story on the BBC – Royal

Mail overseas parcels ban

'costing me hundreds of pounds',

reported that exporting firms

were losing a small fortune as a result

of Royal Mail’s inability to send items

overseas following a cyber-attack in

January.

One woman, Emma Thomson, who

runs Gemz By Emz, a jewellery company

in Romford, said that she was losing

hundreds of pounds due to delivery

issues, two weeks after the cyber-attack.

And others that also rely on posting items

overseas voiced concern on how they too

were being affected.

As a reminder, Royal Mail fell victim to

ransomware which affected the computer

systems it uses to despatch deliveries

abroad. A 10-day delay saw limited parcel

exports. In Thomson's case, 40 percent of

her sales are made to Ireland and the US.

Of course, other firms were in the same

boat. The lesson is that while Royal Mail

is one of the more affordable carriers

of parcel post, it’s worth researching

alternatives for back up just in case. In

fact, redundancy should apply to any

‘mission critical’ part of an exporting

business.

UKEF FINANCES NEW

SPECIALIST BURNS

HOSPITAL IN ANGOLA

THE UK’s export credit agency, UK

Export Finance, is to provide £130m in

support for the construction of a new

specialist burns hospital in Kilamba,

Angola.

The deal between UKEF and

the Angolan Ministry of Finance,

supported by Standard Chartered

Bank and Lloyds Bank, will mean

that 40 percent of the project will be

fulfilled by UK suppliers – totalling

over £50m in potential export

opportunities for UK businesses.

The contract was awarded to ASGC

UK Limited which will be acting

as the management contractor

and responsible for securing the

40 percent of UK exports that will

include building materials, electrical

equipment, and medical supplies.

ASGC, supported by UK Export

Finance, handed over three new

hospitals to the Ministry of Health in

2022. The construction involved over

60 suppliers and subcontractors from

the UK.

The new project is part of the

Angolan Government’s National

Development Plan for 2018-2022. The

hospital will be a seven-floor, 250-bed

facility with a dedicated ward for the

treatment of burns, as well as general

healthcare provision, including

accident and emergency, palliative

care, pathology services, infection

control and prevention and general,

geriatric and paediatric clinics. The

hospital is expected to open after a

five-year construction project.

COCKWELLS Modern & Classic

Boatbuilding has sold its first Duchy

35 Motor Launch in Australia. The sale

came after the boatbuilder appointed

Davis Marine Brokerage as its exclusive

dealer in Australia.

Founder and Managing Director,

Dave Cockwell, said that “our Duchy

Motor launches resonate with the

Australian market because they are the

ultimate in British handcrafted quality

Boatbuilder sells down under

and can be customised specifically to

cater for its climate and conditions.”

He said that instead of finishing

with timber, which is “challenging

to preserve in intense sunshine”, the

company can build with fibreglass,

aluminium, and glass, with Flexiteek

decking and highlights, “to minimise

maintenance, maximise pleasure and

maintain aesthetic.”

The vessels range from 21ft to 60ft

and can be customised with optional

extras. It is described as combining

“the classical lines of the gentleman’s

launch of generations past with styling

and modern luxury.”

The standard price of the boat,

without customisation is close to

£400,000 plus VAT. So a sale, to a

customer in Australia, was quite an

achievement considering the

distance.


The rise of India’s consumers

AN interview in MoneyWeek with professional investor,

Ayush Abhijeet, adviser to the Ashoka India Equity

Investment Trust, emphasises that India should be a

destination of choice for British exporters.

Abhijeet told the publication that India is perceived

to be one of the most attractive consumer markets,

“underpinned by favourable macroeconomic drivers

such as growing incomes, rising urbanisation, and

a young population. The consumer-discretionary

segment, with its diverse range of businesses, offers

significant potential for high returns.”

He also said that “with the Indian consumer

enjoying the lowest data costs anywhere in the world,

aspirations are also being democratised. A worldclass

payments infrastructure and major logistical

improvements are also boosting accessibility to

consumer goods.”

The story highlighted Indian businesses that

exemplify what is possible including Titan Company,

a jewellery retailer which has expanded successfully

in smaller Indian cities; Page Industries, which has an

exclusive licence to design, manufacture and distribute

the US-based underwear and sportswear brand Jockey

in the subcontinent and several other countries; and

Campus Activewear, a sports and athleisure footwear

company that sits in a sector with significant long-term

growth potential.

The point is not so much the companies themselves,

but that they serve a huge market full of customers who

are becoming increasingly affluent.

BRITAIN TO ACCESS MALAYSIA AND CHILE

ACCORDING to a post on GOV.UK,

both Malaysia and Chile have joined

the Comprehensive and Progressive

Agreement for Trans-Pacific Partnership

(CPTPP) trading bloc which the UK will

become a member of later this year. This

should translate in UK firms gaining better

access to, and lower tariffs with, both

countries.

The CPTPP is one of the world’s largest

free trade areas and it’s worth £9tn.

Notably Malaysia is one of the CPTPP

members with which the UK does not

currently have a bilateral free trade

agreement. The UK Government thinks

that with the UK and Malaysia both joining

CPTPP, access to the Malaysian market

could see a jump in the £2.9bn worth of

exports that British firms currently sell

there each year.

It should be said that Chile was the first

country to sign a trade deal with the UK

post-Brexit. Trade with Chile was worth

£1.5bn in 2021.

The Government thinks that the UK

joining CPTPP will provide opportunities

for collaboration with Chile in areas such

as fintech, green finance and cybersecurity,

and the financial services sector.

As to the potential, the Government cites

Sheffield-based chilli paste manufacturer

Mak Tok which has been exploring

Malaysia as a new potential market. The

business offers traditional Malaysian

cuisine and already exports to other CPTPP

member countries including New Zealand.

Mak Tok Founder Will Chew said that

“Malaysia and its neighbouring countries

have always been markets the company

has been trying to penetrate.”

THE FUTURE

FOR SRI LANKA

FOLLOWING Sri Lanka’s virtual

bankruptcy in May 2022 its Government

secured a $2.9bn IMF bailout. However

the money won’t be released until its

sovereign creditors in China and India

agree to a restructuring of billions of

dollars of debt they are owed. But once

agreed, Sri Lanka can rebuild its economy

with the money.

The problem is that after the end of a

25-year war with separatist Tamil Tigers

in 2009, the Government at the time

successfully attracted large flows of

foreign investment. This advanced the

domestic economy to the point that it

outgrew exports and the country found

itself without the means to generate the

foreign currency needed to import vital

supplies of food and fuel.

President Ranil Wickremesinghe,

who took over in July 2022, sees the

solution as being based on driving new

exports. Traditionally, exports have been

agricultural – cinnamon and tea. This is

seen as an obvious route to growth, but the

sector is poorly mechanised.

Another option is for Sri Lanka to

leverage its position in the centre of the

Indian Ocean shipping lanes to become a

major trans-shipment hub. In other words,

develop its ports and grow logistics.

Sri Lanka’s situation isn’t helped by

stiff tariff on imports. Reform of this has

been identified by the World Bank and

if change comes retail and construction

could benefit.

All of this means that exporters should

keep a watchful eye on Sri Lanka because

if change comes, new entrants could gain

first mover advantage.

CURRENCY UK

SCOTTISH SALMON IS UK’S

BIGGEST FOOD EXPORT

ACCORDING to HMRC data, Scottish

salmon was the UK’s biggest food export

in 2022 as sales reached £578m in the

calendar year.

The salmon was exported to 54

countries, with North America and Asia

reporting strong demand. France was

the single largest buyer. Overall though,

the EU accounted for almost 64 percent

of sales. But despite the position that

Scottish salmon occupies, sales were

down six percent on 2021 (£614m) and

2019 (£617m).

UK-ITALY EXPORT DEAL FOR

GREEN TECH AND SCIENCES

KEMI Badenoch, Business and Trade

Secretary, has signed a UK-Italy export and

investment partnership deal that should

help UK green tech and sciences firms

export to Italy; the aim is to cut red tape.

Currently UK-Italy trade is worth £43bn.

The partnership seeks to strengthen

exports in high-performing and growth

sectors of the future, such as life sciences

and digital and tech, as well as promoting

inward investment, including low-carbon

industries such as offshore wind and

carbon capture storage.

EXCHANGE RATES VISIT CURRENCYUK.CO.UK

OR CALL 020 7738 0777

Currency UK is authorised and regulated

by the Financial Conduct Authority (FCA).

HIGH LOW TREND

GBP/EUR 1.14797 1.12095 Up

GBP/USD 1.22844 1.18116 Up

GBP/CHF 1.14100 1.10102 Up

GBP/AUD 1.83118 1.74134 Up

GBP/CAD 1.67877 1.61896 Up

GBP/JPY 165.923 159.013 Flat

This data was taken on 21st March and refers to the month

previous to/leading up to 20th March 2023.


COUNTRY FOCUS

Abundant in oil, gas and

clean power, Norway is

worth investing in.

A Kingdom

with Clout


VIKINGS, the land of the midnight

sun, northern lights, scenery too

impressive for words and – as fans

of Douglas Adams’ The Hitchhiker’s

Guide to the Galaxy can attest

– phenomenal fjords – that were

formed by glacial movement, rather than by one

of the book’s characters – Slartibartfast. Google it.

Norway, or rather, the Kingdom of Norway, is

located at the northern most point of Scandinavia.

It sits above Sweden and Finland and to the west

of Russia. Half of the country is inside the Arctic

Circle – an area where the average temperature

for the warmest month is below 10°C.

Modern Norway is a mere 200 years old.

However, the area has a history going back to

the last Ice Age some 14,000 years ago. While the

oldest human skeleton found in Norway has been

carbon dated to 6600 BC, it’s thought that man

settled earlier than that.

Around 2500BC, farming and agriculture

took hold, then came the Bronze and Iron Ages.

Romans exerted influence from the first century

AD, but the real growth came during the era of the

Vikings who both conquered and traded their way

to prominence.

Norway’s Golden Age is considered to be the

13th and 14th centuries which saw peace and

growing trade with peoples in Germany and

Britain. 1380 saw Denmark and Norway in union

when Olaf Haakonsson inherited both thrones.

1397 brought the Kalmar Union with Denmark,

Norway and Sweden, but Norway was side-lined

economically. An independence movement arose

in 1813 following Denmark-Norway’s backing of

France during the Napoleonic Wars. Norwegian

independence, a constitution and a monarch

came in May 1814. Neutral during World War

One, Norway was occupied by Germany during

the 1939-45 conflict.

Geography and people

In terms of landmass, Norway occupies some

385,207 km2 (the mainland, Jan Mayen and

Svalbard only) and is placed 61st in the rankings

of countries by area – just below Zimbabwe

(390,757 km2) and above Japan (277,976 km2). In

comparison, the UK is 78th and has just 242,495

km2. Considering its high latitudinal position,

❝

Norway’s

population may be

diminutive but it’s

large in resources

and clout. With an

ability to generate

more clean power

than it needs,

enough oil to keep

its books balanced

for decades, and

a developed and

wealthy economy,

Norway should be

on any exporter’s

destination list.

❝

Norway might be expected to be a frozen

wasteland. However, it is relatively temperate

because of the influence of the North Atlantic

current which raises the air temperature. As a

result, it’s much warmer than similarly placed

towns and cities elsewhere around the world. In

general, the coastal areas have relatively mild and

wet winters while the inland regions have cold

winters with plenty of snow, and hot and relatively

dry summers, especially in the east of the country.

As for the population, it’s small. Statistics

Norway recorded it as being 5.47m during Q3

2022, up nearly 50,000 on the figure for 2021. The

population pyramid isn’t quite the usual teardrop,

rather it’s more columnar and so flatter over a

larger age range – from 10 to 75 years (with usual

variances across age ranges). Notably, there are

more males than females until the age 63-year

band. The population growth rate is just 0.5

percent.

There are two official languages spoken in

Norway – Norwegian and Sami, the former the most

widely spoken. According to Howwidelyspoken.

com, 85-90 percent of the population speaks

English; the English Proficiency Index (EPI) from

global language training company Education First

(EF) tests some 2.1m adults in 111 countries and

regions. Its findings for 2022 put Norway behind

only the Netherlands, Singapore and Austria for

non-native English proficiency.

As to where the populace lives, in 2022

Statistics Norway recorded 356 municipalities

– as opposed to discrete towns or cities – in the

country. Touristlink.com notes 436 towns and

villages in Norway (with bias towards the south

and a fair number spread throughout the country

however). Of the municipalities, seven have more

than 100,000 people with Oslo being the largest

(699,827), Bergen next (286,930), Trondheim

(210,496), Stavanger (144,699), Bærum (128,962),

Kristiansand (113,737) and Drammen (102,273)

follow on. There are 12 with 50,000 to 100,000

inhabitants, 80 with 10,000 to 50,000 residents,

and 244 with less than 10,000.

Norway is a long and narrow country. Road

journeys can be lengthy – Oslo to Stavanger is

442km, Trondheim is 491km, Bergen 460km, and

Oslo to Tromsø is 1,738km. There are more than

90,000 kilometres of roads, of which about 67,000


COUNTRY FOCUS


are paved; there are numerous bridges and

tunnels, and several mountain passes – some of

which are closed during the winter months, and

some may close during winter storms.

The economy is mixed and highly developed,

with state ownership in key areas. With a

high standard of living and a good and wellintegrated

welfare system, there is a key reliance

on an exploitation of natural resources, namely

North Sea oil and gas. The OECD thinks that

GDP growth is projected to slow to 0.7 percent

in 2023 but rebound to 1.3 percent in 2024. The

IMF thinks differently – 2.6 percent for 2023 and

2.2 percent for 2024 – regardless, it’s better than

the UK’s which the IMF predicts as falling by 0.6

percent in 2023 and growing by 0.9 percent in

2024.

Inflation, according to Statistics Norway in

January 2023 was 7 percent while unemployment

was, in December 2022, 3.4 percent. GDP was

Norwegian kroner (NOK) 5.91tn in 2021. £1

bought 12.26 NOK as of 13 February 2023.

Key industries – Offshore energy

Oil and gas has been an important part of

the Norwegian economy since oil was first

discovered off the Norwegian continental shelf

in 1967. As Norsk Petroleum notes, it wasn’t until

1969 that Phillips told the Government of the

Ekofisk oil field. Now, the petroleum sector is

worth around 65 percent of exports and around

50 percent of state revenue. Interestingly, The

Barents Observer wrote in January 2022 that

Norway is making more money than ever and

more reserves of oil are being found.

The US Trade department states that the

Norwegian Government has diversified away

from a pure oil play.

Norway is the world’s 8th largest natural gas

producer and the world´s third largest exporter

of natural gas (Statista). It also accounted for

2.3 percent of global oil production in 2020.

Peak production was in 2001 with 3.4m barrels

per day (bpd), but that has declined to around

2m bpd. It’s reckoned that 48 percent of its oil

resources are now depleted.

Offshore wind is growing in importance

and initially, eleven 8MW floating turbines are

being installed and all offshore fields will be

electrically powered from the mainland along

with this wind power. Beyond that are plans

to further exploit wind power and in 2022 the

Norwegian Government proposed a major

initiative with a target, according to Energy

Live News, for 30GW of offshore wind capacity

by 2040. This is nearly equivalent to the entire

amount of electricity produced in Norway and

around 1,500 turbines may be needed.

Shipping

For such a small population, Norway’s merchant

fleet is the world’s fourth largest with, according

to Statistics Norway, 1,592 ocean going ships that

carry oil, gas, chemicals, bulk goods, vehicles

Odda is a former municipality in the old Hordaland county,

Norway. The municipality existed from 1913 until its dissolution

in 2020 when it was merged into Ullensvang Municipality in

Vestland county. It was located in southeastern Hordaland county,

surrounding the southern end of the Sørfjorden.

❝

Oil and gas has

been an important

part of the

Norwegian economy

since oil was first

discovered off

the Norwegian

continental shelf in

1967.

❝

Brave | Curious | Resilient / www.cicm.com /April 2023 / PAGE 35

and cruise passengers in 2022. On top of that is

a large market for private leisure boats – there

are more than 750,000 of them reckons a 2017

Transportøkonomisk Institutt report on safety.

Having the world’s second longest coastline of

20,000 km is one of the reasons.

As a result of such a strong sector, Norway

has much in the way of ship brokers, insurers

and financial services, shipyards, and maritime

education establishments. Further, zero

emission crafts are gathering interest; most of

the country’s ferries will soon be emission free.

Green tech

Given Norway’s geography and topography,

it is no surprise that hydropower is important

and there are now more than 340 large dams

(over 15m in height) and 3,200 smaller units.

And as energifaktanorge.no points out 1,681

hydropower plants (in 2021) and more than

1,000 hydropower storage reservoirs that

produce 90 percent of power production. The

Andritz Group believes that Norway has the

potential to generate more than 300,000 GWh

of hydropower.

In fact, power generation goes beyond

Norway’s needs and much is exported. That

said, energifaktanorge.no said that wind

power currently accounts for just 10 percent

of production capacity and is now dominating

investments.


COUNTRY FOCUS


In other ‘green’ areas, Norway has

a growing interest in hydrogen while

ammonia is being singled out as a clean

fuel for shipping, and there are plans to

exploit cobalt and nickel to make battery

production less dependent on others.

Solar is gaining traction through floating

solar power – Norwegian SciTech News

wrote in January 2023 that covering less

than 10 percent of the world’s hydropower

reservoirs with floating solar panels would

yield as much energy as all hydropower

does today. And then green buildings are

of interest as is using Norway’s extensive

biomass for energy.

Carbon capture and storage is rising in

importance in Norway with a number of

sites – including under the North Sea –

being developed. Inbound shipments of

carbon will develop the sector further.

On electric vehicles some 90 percent

of new cars sold are electric and by 2025

the Government thinks that there will

be no new fossil fuel cars sold; public

procurement rules now stipulate zero

emission vehicles.

Healthcare

Norway spends more than 10 percent of

GDP on healthcare and the state system

covers 85 percent of costs. The US Trade

Department believes that the market for

medical supplies and products is worth

around NOK 20bn with public bodies

making 90 percent of all purchases.

There are a number of new hospitals

being built while others are modernised

– businessfinland.fi ran a webinar in

October 2022 that noted that “the country

is building new hospitals and refurbishing

older buildings with worth of billions

of euros.” These new sites all demand

new technologies and equipment to be

deployed, especially digital healthcare the

Government has implemented electronic

patient journals/EPJs, e-prescriptions,

and a national health portal where

citizens can access their digital health

information. By extension, tele-medicine

is growing in importance with demand

from an ageing population needing

more pharmaceuticals. It is thought that

this market was worth in excess of NOK

37.4bn in 2022.

Defence and aviation

According to a European Security

& Defence article in October 2022,

Norwegian defence contractors are worldleaders

in several areas and close to 80

percent of their sales are to customers

outside Norway. The US Trade Department

notes that Norway’s defence spending will

reach two percent of GDP in 2028 and that

it spends about 31 percent of its defence

Ålesund is a port town on the west

coast of Norway, at the entrance to the

Geirangerfjord. It’s known for the art

nouveau architectural style in which most

of the town was rebuilt after a fire in 1904

budget on investments which is above

the NATO guideline of 20 percent (2021).

The budget for the sector in 2022 was NOK

83.7bn. There are 98 airports in Norway of

which 48 are for public use; 45 are run by

the state operator, Avinor.

Agriculture

Nibio.no comments that only 3 percent

of Norway’s total land area (excluding

Svalbard and Jan Mayen) is farmed land.

Of this, only a smaller part is located

in areas where climatic conditions are

suitable for growing cereals for human

consumption. 39 percent of the land area

in Norway is covered by forests.

The Crop Trust reckons that Norway’s

agriculture sector is small-scale compared

to that in other countries in Western

Europe; small and medium-sized family

farms dominate, with an average farm

size of 20 hectares – the reason being


COUNTRY FOCUS


Norway’s topography. Norway is a highcost

producer with a focus on maintaining

a high degree of self-sufficiency. Norway

subsidises much and high tariffs,

quantitative restrictions and technical

barriers limit competitive products from

entering the Norwegian market.

Approximately 8.3m hectares is

productive forest and increasingly

becoming a source of income for owners.

In 2017, the agriculture and the food,

beverage and tobacco industry was worth

NOK 16.1bn and NOK 45.7bn, respectively.

Tourism

The OECD Tourism Trends and Policies

2022 notes that the economic contribution

of the tourism sector in Norway has

increased and was worth NOK 127.4bn

in 2019 – 3.6 percent of total GDP. It’s

a significant employer in rural areas

and accounted for 7.4 percent of total

employment.

COVID dented the sector and saw the

share of domestic tourism increase to 86

percent of commercial accommodation

nights in 2020. This was even higher in

2021, as domestic tourism recovered to 85

percent of 2019 levels.

Norway expects a recovery of inbound

tourism to pre-pandemic years in 2023 or

2024. The main attractions are the varied

landscapes that extend across the Arctic

Circle. It is famous for its fjord-indented

coastline and its mountains, ski resorts,

lakes and woods.

Taxes – Corporate taxes

Corporate Income Tax (CIT) is paid at a

rate of 22 percent with some companies

within the financial sector paying a rate

of 25 percent.

Norway operates a petroleum tax regime

where all upstream petroleum activity on

the Norwegian Continental Shelf (NCS) is

taxable. Taxation is based on net income

at a marginal tax rate of 78 percent, which

comprises the ordinary 22 percent CIT

rate and a 56 percent special tax. Only

income from offshore production and

pipeline transportation of petroleum from

the NCS (offshore tax regime) is subject to

the additional 56 percent special tax.

There is also a hydropower tax regime

that applies to income derived from

the production of hydroelectric power.

Net income from the production of

hydroelectric power is taxable both at

the ordinary 22 percent CIT rate and an

additional 47.4 percent resource rent tax.

The resource rent is calculated per hydro

power plant.

The general VAT rate is set at 25

percent. However, there is a reduced rate

of 15 percent that applies to supply of

food and beverages, excluding tobacco,

alcohol, medication, and water from the

tap. The reduced rate does not apply to

consumption in restaurants and the like.

A VAT rate of 12 percent applies to

domestic passenger transport services

and sales, domestic ferry services related

to transport of vehicles, accommodation

services, cinema tickets, museum

and gallery tickets, amusement park

tickets, and sporting events. Zerorated

exemptions exist in a number

of areas including the export of goods

and services, goods and services for

Norwegian offshore and non-resident

ships, transfer of a going concern,

newspapers and books (including

e-publications), supply of works of art

owned by the artist, healthcare, social

services, financial services, educational

services, and services supplied by cultural

and entertainment institutions… there

are more.

The registration threshold is NOK

50,000 during a 12-month period. For

charitable and public utility institutions

and organisations, the threshold is NOK

140,000.

Personal taxes

Norwegian income tax is based on a dual

tax base system that considers general

income and personal income.

General income is taxed at a flat rate

of 22 percent. The general income tax is

based on all taxable income (i.e. income

from employment, business, and capital),

but tax allowances, expenses, and certain

losses are deductible when computing

general income. There are also county tax

and municipal taxes.

On top of that is Bracket tax so that

income between NOK 190,350 and NOK

279,149 is taxed at 1.7 percent; between

NOK 279,150 and NOK 642,949, the rate

is 4 percent; between NOK 642,950 and

NOK 969,799, it is 13.5 percent. Income

between 969,800 and NOK 1,449,999 is

taxed at 16.5 percent. Beyond that, the

rate is 17.5 percent. Note that special tax

rules apply for those living in Troms and

Finnmark counties.

It should be added that personal

and corporate tax returns are public

information and searchable.

Summary

Norway’s population may be diminutive

but it’s large in resources and clout. With

an ability to generate more clean power

than it needs, enough oil to keep its books

balanced for decades, and a developed

and wealthy economy, Norway should be

on any exporter’s destination list.

Adam Bernstein is a freelance writer.


OPINION

TAKING CONTROL

How to cope with uncertainty in your financial career.

AUTHOR – Natascha Whitehead

IN many corners of our lives, we

are confronted by uncertainty

and our careers are no exception.

That’s why being able to cope

with the unknown is an essential

skill to develop, which will

undoubtedly benefit you as a credit

manager and beyond. Better still, you

can acquire the tools to not just tolerate

uncertainty, but to adapt and take

advantage of it as an opportunity to grow

and succeed in your financial career.

1. GAUGE WHAT YOU’RE GOOD AT

AND WHAT YOU ENJOY

In times of change and uncertainty, be

confident about what you’re good at and

hold onto that. Despite where you’re at

in your journey and regardless of your

role and responsibilities at the time, you

can focus on your strengths to get you

through. For example, if you have strong

communication skills, this will make

you a valuable asset to any organisation.

Effective communication is essential for

credit managers, who must listen well

to others, take part in discussions and

present their own ideas in a clear and

professional way. In other words, relying

on your robust skillset is a way to tackle

uncertainty.

Consider what elements of work you

enjoy which will help you stay rooted in a

sense of purpose. When do you feel most

fulfilled and what have been your proudest

achievements? Carry this vision with you

when going through overwhelming bouts

of career uncertainty. By tapping into

our strengths and passions, we can work

towards reducing self-doubt. Learn what

part of your role satisfies you – which may

be transferable to other jobs or sectors

– and be sure to celebrate successes, in

order to achieve a degree of certainty and

stability.

2. TAKE BACK POWER BY

PLANNING

Whilst many things are out of our control,

acknowledging what is in our power

is another way to cope with uncertainty.

As I explored in last month’s issue, setting

professional goals is a great way to plan

for the future in a productive and realistic

way. Upskilling is as important as ever and

adaptability is crucial for credit managers,

since the technology used is constantly

evolving. Enrol on a course to learn a new

skill or even enhance your current ones

and look ahead to the trends you should

be aware of to successfully compete in the

job market. By sharpening your skills, you

equip yourself to thrive in the face of career

uncertainty.

Problem-solving is another way to prepare

for the unknown; you could plan for

what could go wrong and the steps you

would take to deal with it. For instance,

being able to handle large amounts of

data to make decisions is important in

credit management. Consider the training

and development programmes that will

benefit you in the long run.

That being said, there’s no rush when

it comes to the speed at which you travel

along your career path. Today, particularly

with the rise of social media and the

discourse around self-development, there

is pressure to have a strict plan which gets

you to where you want to be by a certain

point in your professional life. Whilst this

style of planning may work for some, the

expectation to create a focused timeline

can exacerbate the anxiety caused by

career uncertainty. I recommend selfdriven

goals which allow you to plan

how to improve and increase your job

satisfaction, rather than setting yourself

rigid deadlines. This doesn’t mean trying

to achieve certainty, but direction.

3. OPENLY EMBRACE

UNCERTAINTY

Finally, accept, rather than resist,

the inevitable nature of uncertainty.

Acceptance is the most effective response

to career ambiguity, as it allows you to

start seeing that amongst the unknown

there are ample opportunities.

I advise being open about how

you feel; talk to a career coach or

a recruiter who can help you see

things from a different perspective

and guide you towards a positive

mindset. Their expertise and

support can help you navigate

uncertainty and steer it in your

favour. Speaking to colleagues

about career uncertainty can

help dispel the stigma around

it and reassure you that you’re

not alone; building a network

is another way to succeed in

the face of uncertainty, as

you can advise each other.

It's normal to not know

exactly where you will be in one, five or

ten years’ time. Think of this lack of clarity

as freedom rather than failure.

Worrying whether your career is on the

right track is understandable if you are

fixated on the bigger picture. However,

it’s important to get comfortable with

uncertainty. Truly focus on completing

the tasks you have in front of you to the

best of your abilities, and the fulfillment

they might bring, and learn to let the rest

go.

Natascha Whitehead is Business

Director of Hays Credit Management.


CM

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BUSINESS ADVICE

An International Affair

How firms trading across borders can protect

themselves against currency volatility.


WHILE firms excise costs

with the obvious targets

being staff, premises,

fuel, utilities, and raw

materials, how many are

thinking about currency

– especially where they directly import or export

to, say, Europe and the payment – in either

direction – isn’t made in sterling? Do they ever

consider what would happen if the euro moved

two percent the wrong way?

Protect the position

The problem of currency volatility is important

to Tom Foster, senior corporate dealer for Central

FX. He knows that “very few people, if any, can

reliably predict the movement of currency

markets.” Further, “failing to sufficiently protect

your business against adverse rate movements

can lead to significant and unforeseen losses on

your bottom line.”

It’s also why David Johnson, director of Halo

Financial considers that protecting a company’s

position on foreign exchange needs “is no

different to any other kind of good governance.”

But just as no two companies are the same,

so Foster sees risk profiles of different firms

as always being different. However, he says

that “as a rule of thumb there are some general

considerations that should be made.”

In more detail, he says that “any business

involved in foreign exchange should have a

budget rate they work from. This can be used

to forecast costs when importing or exporting

goods. It is essential this rate is protected to

some degree. Failure to do so coupled with

adverse rate movements can mean that profit

margins are eroded. Firms will then be forced

to hike prices to combat this, something that

won’t typically go down well.” Foster therefore

sees a fine balancing act between no protection

and too much protection.

And Johnson agrees. He too sees that without

any exchange rate protection, there is a risk of

writing off profit or even creating a loss. On a

positive note, “there is a possibility that the

exchange rate could move in the company’s

favour.” But that, as Johnson, says, is “like

managing risk based on a coin flip.”

Risk options

How a firm manages its risk will depend on

its appetite, and in Johnson’s view, it’s all

about a strategy that “covers a percentage of

the open positions and increasing that cover

as the payment dates or revenue receipt dates

❝

Firms will be

forced to hike prices

to combat this,

something that won’t

typically go down

well, I therefore see

a fine balancing

act between no

protection and too

much protection.

– Tom Foster, senior

corporate dealer for

Central FX

❝

approach.” He says that some firms work on a

50/30/20 percent strategy, where 50 percent of

all known currency needs are covered as soon

as they are certainties, 30 percent is covered

nearer to the settlement dates or if a sizable

swing in the rate is seen, and 20 percent is left

until near the settlement date.

As to the tools that can be deployed, there are

a number which Johnson outlines:

There’s the forward contract that gives certainty

over the exchange rate and removes any risk.

A downside is that the company cannot use

it if the exchange rate improves. Also, it often

requires the payment of a deposit or bank charge

over some of the company’s assets to mitigate

their risk.

Next is the spot contract. This removes risk, but

trades are settled immediately. These are useful

for cash rich companies with currency accounts

that can switch funds between currencies; it’s

less of an option where cashflow is tight.

Another possibility is the bracketing of

exchange rates with automated market orders.

These come in various guises. There’s the stop

loss order, an automated order placed with

a broker below the market to act as a safety

net; this ensures the firm receives at least that

selected rate even if the exchange rate collapses.

Then there’s a limit order, sometimes called a take

profit order, which is placed above the current

exchange rate in a bid to capture any spikes in

the exchange rate that can enhance bottomline

profit if the order is triggered. When used

in pairs, these orders are known as OCO – onecancels-other.

Just as the description implies, if

one order is triggered the other is cancelled so

that firms don’t end up with two contracts.

The other commonly used tool for larger

corporates is the option. This grants the right to

buy and sell a fixed number of currencies at a

predetermined exchange rate by a specific date.

If the market moves in a firm’s favour, it can

ignore the option and trade at the market rate.

If, however, the market moves against the firm,

it can exercise the option. They either carry a

premium – a few percentage points of the value

of the contract. If not, then there is usually a

pair of options packaged together and there will

be a potential negative outcome, dependent on

the market movement.

DIY or employ a specialist?

With the tools outlined, some think that they

can take the bull by the horns and do the job

themselves. However, Johnson urges caution. In

his view, “monitoring the market is simple


Protection



BUSINESS ADVICE


enough but the problem is the amount

of information online which can be

overwhelming.”

Further, the number of opinions

available are countless and often conflict.

But for him, that’s essential because, “if

there were no conflicting opinions, there

would be no market… when one person

buys another sells and both believe

they are being astute.” Also, the volume

of information varies according to the

prominence of the currency. Put simply,

a specialist will have a greater overview

of the markets as well as having a better

understanding of the ways in which firms

can manage transactions, limit risk, and

protect against unexpected events.

Foster takes a different approach and

notes the need to have security of funds

as it “is paramount to any business.” He

says that it is imperative that the chosen

specialist adheres to all the required

regulations. He also recommends

“ensuring there is some synergy between

the two businesses as brokerages

specialise in different areas… a good

relationship with your account dealer is

key – you will want to feel confident your

funds are being managed correctly and

efficiently.”

So, with the need to engage a specialist,

how should one be chosen? For many, a

recommendation is the route that they

choose. But if that isn’t possible, then

Johnson recommends looking at how

the specialist is regulated: “The FCA has

a number of categories of regulation.

Authorised Payment Institutions and

E-Money firms are required to segregate

client funds and have a specified level

of capital adequacy. Alternatively, check

that the specialist is on the Register of

Payment Institutions.”

And then there are brokers that can

trade in options; Johnson says they are

regulated as investment houses and face

very tight restrictions.

Costs

With an eye to the cost of currency

mitigation, Foster says that pricing may

differ according to the required currency

trade – a spot payment of sterling into

euros, for example, will differ from a

year-long forward contract of dollars

into sterling. However, he adds that

“most brokerages earn their commission

through the rate of exchange they are able

to achieve themselves and the one offered

to the client.”

Johnson confirms that costs depend on

the tool deployed: “With spot contracts,

the only cost might be the TT fee for

moving funds, but forward trades usually

require some form of upfront deposit -

called a margin.” However, he reassures

by saying that this is a part payment.

Importantly, though, he warns that “if the

exchange rate moves significantly whilst

the position is still awaiting settlement,

you may be ‘margin called’. In this case,

the broker will ask for further part

payment to provide protection for them

against default.”

As for options, Johnson says that they

can be utilised with no upfront cost, but

the potential downside needs to be fully

understood in these cases. But if there is a

cost, he says that it will be charged as a fee

for entering the option into the market,

known as a premium: “The amount of the

fee will depend on the size of the option,

the volatility in the currency pair involved

and the time between the booking and

expiry date of the option. This premium

can be anything between 0.5 and four

percent depending on the variables.

Other tools

Beyond using the markets, payments can

also be sent and received via a company’s

own foreign currency accounts. In fact,

Johnson sees companies find flexibility

in currency accounts – “especially so if

they have receipts as well as expenses in

particular currencies.” An example he

gives is dollar receipts being used to make

dollar payments without incurring any

exchange rate spreads. And dollars can

be exchanged directly into euros to pay

euro invoices without having to convert

between dollars and sterling before

converting again into euro. Another

benefit of currency accounts that Johnson

highlights is that “they can be topped

up when exchange rates are attractive

without the need for forward contracts or

options.”

And Foster agrees, noting that “firms

operating only a sterling account are open

to enormous margins being charged by

banks for receiving non-sterling funds.

By holding additional currency accounts,

these funds can then be deposited and

converted at a far better rate of exchange.”

In summary

Currency management isn’t necessarily

the most important consideration for a

board, but it should be. With razor thin

margins, a minor swing in the value of

a currency can have a disproportionate

effect on a firm in a competitive sector.

Example of currency protection

David Johnson tells of a UK based

electrical goods importer which “had

a fantastic financial controller with

whom we had worked with for nearly

a decade.”

In overview, after some consultation

she adopted a strategy of covering

her forward requirements when rates

were above her costed price: “We

worked with her to set her costed price

at the start of each of their financial

years, setting the level below predicted

ranges based on the charts of the

sterling/euro rate. She rarely took on

more than six months’ worth of cover

for her needs.”

This process worked well for the

controller for the time Halo had been

working with her. But as Johnson

explains, “things changed when her

company was taken over by the Dutch

supplier and all treasury processes

were moved to Holland. Their

procedures were far less structured,

and they started to report losses on

foreign exchange. The UK financial

controller pleaded with them to allow

her to return to her preferred processes

and after nearly a year they relented.”

Within three months, Johnson says

that they had recovered their pattern

of risk management and the currency

losses ceased.

Adam Bernstein is a freelance writer

❝

With spot contracts, the only cost might be the TT fee for moving funds,

but forward trades usually require some form of upfront deposit – called a margin.

– David Johnson, Director of Halo Financial


BRANCH NEWS

Vulnerable debtor profiling

A Sheffield & District Branch event.

AUTHOR – Paula Uttley

DURING these unstable

times with a challenging

economy, Sheffield &

District Branch hosted

the opportunity to learn

how to profile and help

vulnerable consumer debtors through the

knowledge of an expert and The Curzon,

being housed in the Grade II listed

former building of The Sheffield Banking

Company, proved to be an excellent

venue.

Upon arrival, members and guests

made their way to the upstairs bar for

a delicious pizza supper and liquid

refreshment with the opportunity to

network with other professionals and to

relax after a busy day. Branch Secretary,

Matt Civil, opened the meeting and

welcomed everyone, explaining that our

Chair, Jamie Thornton, was sadly unable

to be with us for the evening having been

called to HQ for a meeting.

Matt explained the format of the

evening before handing over to our

guest speaker, Darren Kelk, who had

over 26 years’ experience in the private

debt collection sector before setting up

Ascendant Solutions Limited in 2016

to deliver bespoke data platforms for

commercial and consumer collections,

risk and analytical solutions to the public

sector.

Darren took us through his Pathway

product and explained how data

is purchased, stripped down and

cleaned up and the ways in which local

authorities are assisted by him to provide

immediate assistance for people in need.

Darren talked about The Vulnerability

Registration Service (“VRS”), which

gives vulnerable people a single place

to register their status thus helping

them avoid repeating the same difficult

conversations every time they engage

with lenders and creditors. The aim of

the VRS is to help vulnerable consumers

protect themselves against the financial,

social and personal hardship suffered as

a result of debt and financial problems.

Darren continued by explaining

how geospatial data was used to create

heatmaps for local authorities to consider

consumer resilience and the velocity

of change and to help assistance to be

targeted. Open banking was discussed

and how it benefits in the production

of accurate income and expenditure

statements. Darren took questions from

the floor before closing by thanking

everyone for the invitation.

After a short comfort break with

the opportunity to grab a coffee, the

remaining members and guests continued

informal networking before it was time to

leave. Before departing, a lucky couple

of members took the rare opportunity

to tour the original bank vaults. It is safe

to say that any criminals back in the day

would have had their work cut out to get

through those vault doors and walls and

we were intrigued by the door fitted with

‘John Tann’s patented Anti-Explosive and

Anti-Blowpipe devices.’ Anti-blowpipe?

Answers on a postcard please... Many

thanks to Darren Kelk, The Curzon and

all attending members and guests for

making the evening a great success. “As

always’’ an enjoyable and informative

evening,” said one guest.

Author: Paula Uttley, Vice Chair & Treasurer

of Sheffield & District Branch.

WE WANT YOUR NEWS!

Get in touch with Andrew Morris by emailing andrew.morris@cicm.com

with your branch news and event reports. Please only send up to 400 words

and any images need to be high resolution to be printable, so 1MB plus.


Introducing our

CORPORATE PARTNERS

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

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

My DSO Manager is an intelligent SaaS AR and

credit management solution for SMEs to international

enterprises, helping AR analysts manage risk,

maximize cash collection and streamline the credit-tocash

cycle, by a real-time insight to KPIs.

Due to its inventive in-house IT teams and their tight

collaboration with support staff, many of whom were

credit managers at large firms, it can quickly integrate

any ERP data and customize as needed.

T: +33 (0)458003676

E: contact@mydsomanager.com

W: www.mydsomanager.com

Quadient AR by YayPay makes it easy for B2B

finance teams to stay ahead of accounts receivable

and get paid faster – from anywhere.

Integrating with your ERP, CRM, and billing

systems, YayPay presents your real-time data

through cloud-based dashboards. Automation

improves productivity by 3X and accelerates

collections by up to 34 percent. Predictive analytics

provide insight into payor behavior and an online

portal enables customers to access their accounts

and pay at any time.

T: +44 (0)7465 423 538

E: marketing@yaypay.com

W: www.quadient.com/en-gb/ar-automation

HighRadius provides a cloud-based Integrated

Receivable Platform, powered by machine learning

and AI. Our Technology empowers enterprise

organisations to reduce cycle time in the order-tocash

process and increase working capital availability

by automating receivables and payments processes

across credit, electronic billing and payment

processing, cash application, deductions, and

collections.

T: +44 (0) 203 997 9400

E: infoemea@highradius.com

W: www.highradius.com

Reduce or eliminate manual tasks, allowing AR

teams to focus on actions that drive results, and

strengthen decision intelligence to deliver significant

value to the organisation. Cash Application / Credit

& Risk Management / Collections Management /

Disputes and Deductions Management / Team & Task

Management and AR Intelligence.

Optimise working capital by driving world-class

order-to-cash processes and leveraging decision

intelligence to drive better business outcomes.

To learn more visit www.blackline.com/solutions/

accounts-receivable-automation/

T: +44(0) 203 318 5941

E: sales@blackline.com

W: www.blackline.com

Our Creditor Services team can advise on the best

way for you to protect your position when one of

your debtors enters, or is approaching, insolvency

proceedings. Our services include assisting with

retention of title claims, providing representation at

creditor meetings, forensic investigations, raising

finance, financial restructuring and removing the

administrative burden – this includes completing

and lodging claim forms, monitoring dividend

prospects and analysing all Insolvency Reports and

correspondence.

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

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

W: menzies.co.uk/creditor-services

FIS GETPAID solution is a fully integrated, webbased

order-to cash (O2C) solution that helps

companies improve operational efficiencies, lower

DSO, and increase cash flow. The solution suite

includes strategic risk-based collections, artificial

intelligence, process automation, credit risk

management, deduction and dispute resolution and

cash application. FIS is a global leader in financial

services technology, providing software, services

and outsourcing of the technology that empowers

the financial world.

T: +447730500085

E: getinfo@fisglobal.com.

W: www.fisglobal.com

With 130+ years of experience, Graydon is a leading

provider of business information, analytics, insights

and solutions. Graydon helps its customers to make

fast, accurate decisions, enabling them to minimise

risk and identify fraud as well as optimise opportunities

with their commercial relationships. Graydon

uses 130+ international databases and the information

of 90+ million companies. Graydon has offices in

London, Cardiff, Amsterdam and Antwerp. Since 2016,

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

largest credit insurance companies.

T: +44 (0)208 515 1400

E: customerservices@graydon.co.uk

W: www.graydon.co.uk

Tinubu Square is a trusted source of trade credit

intelligence for credit insurers and for corporate

customers. The company’s B2B Credit Risk

Intelligence solutions include the Tinubu Risk

Management Center, a cloud-based SaaS platform;

the Tinubu Credit Intelligence service and the

Tinubu Risk Analyst advisory service. Over 250

companies rely on Tinubu Square to protect their

greatest assets: customer receivables.

T: +44 (0)207 469 2577 /

E: uksales@tinubu.com

W: www.tinubu.com.

Building on our mature and hugely successful

product and world class support service, we are

re-imagining our risk awareness module in 2019 to

allow for hugely flexible automated worklists and

advanced visibility of areas of risk. Alongside full

integration with all credit scoring agencies (e.g.

Creditsafe), this makes Credica a single port-of-call

for analysis and automation. Impressive results

and ROI are inevitable for our customers that also

have an active input into our product development

and evolution.

T: 01235 856400

E: info@credica.co.uk

W: www.credica.co.uk


Each of our Corporate Partners is carefully selected for

their commitment to the profession, best practice in the

Credit Industry and the quality of services they provide.

We are delighted to showcase them here.

They're waiting to talk to you...

Hays Credit Management is a national specialist

division dedicated exclusively to the recruitment of

credit management and receivables professionals,

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

the CICM’s only Premium Corporate Partner, we

are best placed to help all clients’ and candidates’

recruitment needs as well providing guidance on

CV writing, career advice, salary bench-marking,

marketing of vacancies, advertising and campaign

led recruitment, competency-based interviewing,

career and recruitment trends.

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Court Enforcement Services is the market

leading and fastest growing High Court Enforcement

company. Since forming in 2014, we have managed

over 100,000 High Court Writs and recovered more

than £187 million for our clients, all debt fairly

collected. We help lawyers and creditors across all

sectors to recover unpaid CCJ’s sooner rather than

later. We achieve 39 percent early engagement

resulting in market-leading recovery rates. Our

multi-award-winning technology provides real-time

reporting 24/7.

T: +44 (0)1992 367 092

E: a.whitehurst@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

Shoosmiths’ highly experienced team will work

closely with credit teams to recover commercial

debts as quickly and cost effectively as possible.

We have an in depth knowledge of all areas of debt

recovery, including:

• Pre-litigation services to effect early recovery and

keep costs down • Litigation service • Insolvency

• Post-litigation services including enforcement

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

relate to your goals, and adept at advising you on the

most effective way of achieving them.

T: 03700 86 3000

E: paula.swain@shoosmiths.co.uk

W: www.shoosmiths.co.uk

Forums International has been running Credit and

Industry Forums since 1991 covering a range of

industry sectors and international trading. Attendance

is for credit professionals of all levels. Our forums

are not just meetings but communities which

aim to prepare our members for the challenges

ahead. Attending for the first time is free for you to

gauge the benefits and meet the members and we

only have pre-approved Partners, so you will never

intentionally be sold to.

T: +44 (0)1246 555055

E: info@forumsinternational.co.uk

W: www.forumsinternational.co.uk

Data Interconnect provides corporate Credit Control

teams with Accounts Receivable software for bulk

e-invoicing, collections, dispute management and

invoice finance. The modular, cloud-based Corrivo

platform can be configured for any business model.

It integrates with all ERP systems and buyer AP

platforms or tax regimes. Customers can self-serve

on mobile friendly portals, however their invoices are

delivered, and Credit Controllers can easily extract

data for compliance, audit and reporting purposes.

T: +44 (0)1367 245777

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

Serrala optimizes the Universe of Payments for

organisations seeking efficient cash visibility

and secure financial processes. As an SAP

Partner, Serrala supports over 3,500 companies

worldwide. With more than 30 years of experience

and thousands of successful customer projects,

including solutions for the entire order-to-cash

process, Serrala provides credit managers and

receivables professionals with the solutions they

need to successfully protect their business against

credit risk exposure and bad debt loss.

T: +44 118 207 0450

E: contact@serrala.com

W: www.serrala.com

American Express® is a globally recognised

provider of business payment solutions, providing

flexible capabilities to help companies drive

growth. These solutions support buyers and

suppliers across the supply chain with working

capital and cashflow.

By creating an additional lever to help support

supplier/client relationships American Express is

proud to be an innovator in the business payments

space.

Key IVR provide a suite of products to assist companies

across Europe with credit management. The

service gives the end-user the means to make a

payment when and how they choose. Key IVR also

provides a state-of-the-art outbound platform

delivering automated messages by voice and SMS.

In a credit management environment, these services

are used to cost-effectively contact debtors and

connect them back into a contact centre or

automated payment line.

The UK’s No1 Insolvency Score, available as a

platform to help businesses manage risk and

achieve growth. The only independently owned

UK credit referencing agency for businesses. We

have modernised the way companies consume

data, to power businesses decisions with the most

important data taken in real-time feeds, ensuring

our customers are always the first to know. Enabling

them to deliver best in class sales, credit risk

management and compliance.

T: +44 (0)1273 696933

W: www.americanexpress.com

T: +44 (0) 1302 513 000

E: sales@keyivr.com

W: www.keyivr.com

T: +44(0)

E: *

W: www.


CHARTERED INSTITUTE OF CREDIT MANAGEMENT •

Introducing our

CORPORATE PARTNERS

Each of our Corporate Partners is carefully selected for their commitment to

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

they provide. We are delighted to showcase them here.

VISMA | Onguard is a specialist in credit management

software and market leader in innovative solutions for

order-to-cash. Our integrated platform ensures an optimal

connection of all processes in the order-to-cash

chain. This enhanced visibility with the secure sharing

of critical data ensures optimal connection between

all processes in the order-to-cash chain, resulting

in stronger, longer-lasting customer relationships

through improved and personalised communication.

The VISMA | Onguard platform is used for successful

credit management in more than 70 countries.

T: 020 3868 0947

E: edan.milner@onguard.com

W: www.onguard.com

Our Corporate Partnerships give organisations

a unique opportunity to work with

us and demonstrate their commitment to

professionalism and best practice in the

Credit industry.

We have combined a number of

compelling features that will deliver

great value through sustained exposure

to our membership of over 7,000 credit

professionals, decision-makers and key

industry figures.

For further information please contact :

the Head of Strategic Relationships,

luke.sculthorp@cicm.com

The CICM Benevolent Fund

is here to support members

of the CICM in times of need.

Some examples of how CICM have helped our members are:

• Financed the purchase of a mobility scooter for a disabled

member.

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

became unexpectedly ill.

• Financed the purchase of computer equipment to assist an

unemployed member set up a business.

• Contributed towards the purchase of an orthopaedic bed for one

member whose condition was thereby greatly eased.

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

medical treatment of another member.

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

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

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


PAYMENT TRENDS

Back on track

The latest late payment data shows

a bounce back in performance.

AFTER a wobbly report in the March issue,

the latest late payment data is more of a

comeback story. The average Days Beyond

Terms (DBT) across regions and sectors

in the UK decreased by 2.7 and 2.8 days

respectively. In Ireland, the regional figure

dropped by 4.9 days, while the sector figure saw a reduction

of 5.1 days. Average DBT across the four provinces of Ireland

increased by 0.6 days.

SECTOR SPOTLIGHT

The UK sector standings make for mostly positive reading,

with 16 of the 22 sectors making reductions to late payments.

The biggest winners being the Entertainment industry

with a cut of 3.6 days giving them an overall DBT of 5.3

days. Elsewhere, IT and Comms made up a sizeable deficit,

reducing its DBT by 10.5 days. The International Bodies (-9.8

days), Finance and Insurance (-5.2) and Water and Waste

(-5.2 days) also made positive reductions to late payments. At

the other end of the scale, the Mining and Quarrying sector

continues to be the worst performing sector, experiencing

a further rise of 2.1 days over the last month which has

resulted in a concerning overall DBT total of 32.3 days.

There is much to celebrate over in Ireland too (and it’s

not just the rugby!), with some 14 of the 20 sectors making

reductions to their DBT. The International Bodies sector

saw no change and remains at zero days overall. The Public

Administration (-17 days), Health and Social (-13.1 days)

and Manufacturing (-11.4 days) all played catch up this

month, taking sizeable chunks out of their overall DBT. The

Education sector also had a standout month, cutting the

entirety of its DBT (-8.1 days), meaning it also has an overall

DBT of zero days, giving the other sectors much to learn

from.

REGIONAL SPOTLIGHT

The UK regional data also signals a major turnaround,

with only one of the 11 regions increasing DBT. Highlights

came from the West Midlands (-6.6 days), London (-5.2) and

the East Midlands (-4.2), who are all moving in the right

direction. Northern Ireland, the only region to be going

backwards (+2.4 days) has taken London’s place as the worst

performing region with an overall DBT of 19.9 days.

There is less to be excited about over in Ireland,

however. The regional split reveals a mixed bag and

some stark contrasts. The largest increase came from

Westmeath, which experienced a mammoth jump of 60

days from just 1 DBT previously. Wicklow also saw a large

jump, this time in the right direction, dropping by an

astonishing 67 DBT. As did Longford, reducing its DBT by

51.1 days. Overall though, just under half (11) of the 26

regions saw increases to DBT.

Across the four Irish provinces, Munster remains the best

performing province with just 5.2 DBT overall thanks to a

healthy reduction of 2.5 days, with Connacht also following

suit with a reduction of 8.4 days. Leinster remains the worst

performing province following a further increase of 6.1

days to 29 DBT, and Ulster also saw another 2.5 days added,

resulting in 10.7 DBT.

AUTHOR – Natalie Makin


STATISTICS

Data supplied by the Creditsafe Group

Top Five Prompter Payers

Region Feb 23 Change from Jan 23

South West 9.5 -1.8

North West 11.8 -3.4

Yorkshire and Humberside 11.8 -0.9

Wales 12.5 -3.5

East Midlands 12.7 -4.2

Bottom Five Poorest Payers


Northern Ireland 19.3 2.4

East Anglia 14.8 -2.5

London 14.6 -5.2

Scotland 14.2 -3.4

South East 14 -0.2

Top Five Prompter Payers

Sector Feb 23 Change from Jan 23

Entertainment 5.3 -3.6

Hospitality 6.2 -0.9

Transportation and Storage 8.1 -4

International Bodies 8.3 -9.8

Financial and Insurance 8.6 -5.2

Bottom Four Poorest Payers


Mining and Quarrying 32.3 2.1

Dormant 19.2 0.4

Business Admin & Support 17.3 -2

Manufacturing 16.8 0.5

Getting worse

Business from Home 4.8

Mining and Quarrying 2.1

Manufacturing 0.5

Dormant 0.4

Agriculture, Forestry and Fishing 0.1

Getting better

IT and Comms -10.5

International Bodies -9.8

Financial and Insurance -5.2

Water & Waste -5.2

Other Service -4.1

Transportation and Storage -4

Construction -3.9

Real Estate -3.8

Entertainment -3.6

Education -3.3

Wholesale and retail trade -2.7

Health & Social -2.6

Business Admin & Support -2

Professional and Scientific -1.9

SCOTLAND

-3.4 DBT

Public Administration -1.7

Hospitality -0.9

NORTHERN

IRELAND

2.4 DBT

SOUTH

WEST

-1.8 DBT

WALES

-3.5 DBT

NORTH

WEST

-3.4 DBT

WEST

MIDLANDS

-6.6 DBT

YORKSHIRE &

HUMBERSIDE

-0.9 DBT

EAST

MIDLANDS

-4.2 DBT

LONDON

-5.2 DBT

SOUTH

EAST

-0.2 DBT

EAST

ANGLIA

-2.5 DBT

Region

Getting Better – Getting Worse

-6.6

-5.2

-4.2

-3.5

-3.4

-3.4

-2.5

-1.8

-0.9

-0.2

2.4

West Midlands

London

East Midlands

Wales

North West

Scotland

East Anglia

South West

Yorkshire and Humberside

South East

Northern Ireland


PAYMENT TRENDS

Getting worse

MUNSTER

-2.5 DBT

LIMERICK

3.7 DBT

CLARE

-3.8 DBT

TIPPERARY

0.7 DBT

LEITRIM

0 DBT

OFFALY

26.8 DBT

CARLOW

0 DBT

ULSTER

5.2 DBT

LEINSTER

6.1 DBT

WESTMEATH

0 DBT

KILDARE

-18.4 DBT

WEXFORD

-14.1 DBT

LOUTH

5.3 DBT

Water & Waste

Public Administration

Other Service

Health & Social

Manufacturing

Education

Mining and Quarrying

Transportation and Storage

Financial and Insurance

Construction

IT and Comms

Top Five Prompter Payers – Ireland


Leitrim 0 0

Tipperary 0.7 0.7

Clare 3.3 -3.8

Limerick 3.7 3.7

Wexford 4.4 -14.1

Bottom Five Poorest Payers – Ireland


Monaghan 76 0

Westmeath 61 60

Louth 48.1 5.3

Offaly 29.2 26.8

Kildare 27.8 -18.4

Top Four Prompter Payers – Northern Ireland


Munster 5.2 -2.5

Connacht 7.5 -8.4

Ulster 10.7 2.5

Leinster 29 6.1

Energy Supply

Hospitality

Getting better

Water & Waste

Public Administration

Other Service

Health & Social

Manufacturing

Education

Mining and Quarrying

Transportation and Storage

Wholesale and retail trade

Financial and Insurance

Top Five Prompter Payers – Ireland


Education 0 -8.1

International Bodies 0 0

Mining and Quarrying 0 -7.6

Public Administration 0 -17

Health & Social 5.2 -13.1

Bottom Five Poorest Payers – Ireland


Water & Waste 69.8 -50.2

Business Admin & Support 43.2 15.2

Energy Supply 32 -2

Wholesale and retail trade 29.1 -4.6

Construction 25.8 -3.4

Construction

IT and Comms

Energy Supply

Hospitality

The UK sector standings make

for mostly positive reading,

with 16 of the 22 sectors making

reductions to late payments.


LOOKING FOR

YOUR NEXT

CAREER MOVE?

SENIOR CREDIT CONTROLLER

Edinburgh, £28k-£30k

We’re proud to be working with a reputable retail organisation

based in Edinburgh who are looking to add an experienced

credit controller to their team. You’ll be responsible for

maintaining the accounts receivable function, accurately

managing and allocating payments, dealing with multicurrency

payments, aged debt collection, providing cashflow reports and

supporting the wider credit management team. You’ll receive

a competitive salary, hybrid working options and various other

company benefits. Ref: 4365633

Contact Daisy Duncan on 0131 603 8374

or daisy.duncan@hays.com

ACCOUNTS RECEIVABLE

& CREDIT CONTROL SPECIALIST

Rotherham, up to £30k

We’re exclusively working with a leading provider of care

homes to recruit an accounts receivable and credit control

specialist. The business has developed strong core values

over its 30-year history. You’ll be supported by an experienced

finance manager and have the opportunity to mould your own

role as the organisation continues to grow. Ref: 4370142

Contact Rebecca Drake on 0114 273 8775

or rebecca.drake@hays.com

CREDIT CONTROLLER

Banbury (office based), £24.5k-£27k

As a key point of contact on any debtor-related queries or

issues, your responsibilities involve developing, maintaining,

and improving relationships with internal and external

stakeholders, whilst maximising cash collections and

maintaining minimal bad debt exposure. You’ll also be

required to assist with bank reconciliations, updating existing

reports, providing cover for peers, issuing statements and

reminder letters.

Contact Luana Dibenedetto on 0186 572 7071

or luana.dibenedetto@hays.com

CREDIT CONTROLLER

Abingdon (Hybrid working), £28k-£30k

(2-month temporary role)

We’re looking for an experienced credit controller to support a

team on a 2-month temporary assignment. You’ll be following

up with customers at all levels to minimise debt. You must

have excellent attention to detail, good organisational skills

and be proactive and able to prioritise tasks. Excel proficiency

is essential for this role. Ref: 4368893

Contact Georgina Barber on 0186 572 7071

or georgina.barber@hays.com

hays.co.uk/creditcontrol


© Copyright Hays plc 2023. The HAYS word, the H devices, HAYS WORKING FOR YOUR TOMORROW and Powering the world of work and associated logos and artwork are trademarks of Hays plc.

The H devices are original designs protected by registration in many countries. All rights are reserved. CM-1162609890

ACCOUNTS RECEIVABLE CONTROLLER

City of London, £30k-£32k

This role encompasses all areas of the credit management

process. You’ll be heavily involved in areas including

multi-channel client billing, maintaining the sales ledger,

positing receipts, allocating cash, and undertaking credit checks.

You’ll be responsible for a key client account and chasing debt

where necessary. Both billing and credit control experience is

essential and industry experience is desired. Ref: 4362433

Contact Francesca Powell on 0333 010 6020

or francesca.powell@hays.com

CREDIT CONTROLLER

Northallerton, £25k

We’re currently recruiting a credit controller that delivers

excellence in all areas of their business. Your role will involve

debt collection across all company divisions, completing

new customer accounts and processing and communicating

effectively with external agencies. To be successful, you’ll have

a strong background in raising credit notes, daily banking and

cash posting. Ref: 4361692

Contact Emma Phillips on 0164 222 6716

or emma.phillips@hays.com

This is just a small selection of the many opportunities

we have available for credit professionals. To find out

more, visit our website or contact Natascha Whitehead,

Credit Management UK Lead at Hays on 07770 786433.


IN

ASSOCIATION

WITH

UKCCC

2023

RADISSON BLU

MANCHESTER AIRPORT

#ukccc2023


AWARDS

2023

HR MATTERS

Right conduct

A new statutory code on employee dismissal,

unsuccessful claims of disability discrimination and the

right to obtain the recipients of one’s personal data.

AUTHOR – Gareth Edwards

TWO recent Employment

Appeal Tribunal (EAT) cases

have highlighted disability

discrimination claims.

Under s15 of the Equality

Act 2010, a person will

discriminate against another if they

treat the disabled person unfavourably

because of something arising in

consequence of their disability. However,

a claim will not succeed if the treatment

can be objectively justified or the person

did not know, and could not reasonably

have been expected to know, about the

disability.

Both claims concerned disabled

employees who had been dismissed

following lengthy absences from

work. In McAllister v Revenue and

Customs Commissioners, Mr McAllister's

dismissal was held not to be disability

discrimination. This was because

the dismissal was the employer's

proportionate means of achieving the

legitimate aim of good staff attendance.

McAllister also brought a claim in

relation to the calculation of his Civil

Service Compensation Scheme payment,

a payment made to employees who

lose their jobs for reasons beyond their

control. In McAllister's case, the payment

had been reduced by 50 percent because

of his disruptive conduct during the

formal process. The EAT held that this

was not disability discrimination. As the

payment had been made to McAllister

because of his treatment due to

disability-related absence, this was more

favourable treatment. The fact there

had been a reduction to the maximum

permitted payment did not undermine

this.

In Preston v E.ON Energy Solutions Ltd, Mr

Preston was dismissed following lengthy

absence, some of which was disability

related. However, his treatment was

not because of his sickness absence but

because of his refusal to engage with

measures put in place to support him

in his return to work. The dismissal

was proportionate given the amount of

support the employer had offered before

terminating employment.

These decisions both demonstrate the

reasonable steps employers can take to

terminate employment where there has

been lengthy sickness absence. Where

an employer has put in place significant

support to help the individual return to

or remain at work, and/or the continued

absence is having a wider impact on

the organisation, the dismissal may be

objectively justified.

Consultation launched on 'Fire and Re-Hire'

THE Government has published the

long-awaited Draft Code of Practice on

dismissal and re-engagement.

After P&O Ferries dismissed around

800 employees without consultation last

year, the Government announced that it

would publish a new statutory code. The

intention was to set out standards of best

practice when making changes to staff

terms and conditions of employment.

The code sets out a step-by-step

process for employers to follow to explore

alternatives to dismissal and to consult

meaningfully in respect of proposed

changes to staff terms and conditions. The

code treats dismissal and re-engagement

as a last resort after a thorough and open

consultation. The code will be taken

into account by tribunals and courts.

Tribunals will have the power to increase

any award by up to 25 percent for the

employer's unreasonable failure to follow

the code; any unreasonable failure by an

employee to follow the code may lead to a

25 percent decrease in an award.

The consultation is open until 18 April

2023.

Responding to a Subject Access Request

THE Court of Justice of the European

Union (CJEU) has, in RW v Österreichische

Post, ruled on subject access requests

(SAR). Although this decision does not

bind UK courts, they may still have regard

to it.

Under the UK GDPR, when an

individual makes a SAR they are generally

entitled to a copy of their personal data.

The requester is also entitled to certain

supplementary information in addition

to a copy of their personal data as listed

in Article 15 of the UK GDPR. It includes

any available information as to the

source of the personal data, the right to

lodge a complaint with the Information

Commissioner’s Office, and the recipients

or categories of recipient to whom

the personal data have been or will be

disclosed.

The CJEU case concerned the extent

to which requesters are entitled to

information about recipients of their

personal data.

The requester complained that he had

not been provided with information about

the specific recipients of his personal

data. Instead Österreichische Post had

provided more general information about

the categories of recipients.

The CJEU had to decide if organisations

have a choice over whether to provide

information about specific recipients.

Ultimately, it held that requesters have

the ability to obtain information about the

specific recipients to whom their personal

data have been or will be disclosed; to

withhold this data organisations must

identify an exemption.

Gareth Edwards is a partner in the

employment team at VWV.


OPINION

Women in Credit

Bringing women and allies together to discuss personal

journeys and inspire others to achieve their career goals.


ONLY 16.8 percent of companies

are female-led, 11.9 percent of

investments go to female-led

companies and 30.2 percent of

angel investors are female – these

are just a few of the statistics in

the UK’s 2022 Gender Index report that indicate

the challenges women face in business.

However, while the disparities are stark,

progress is steadily being made: In 2021, 20

percent of all newly incorporated businesses

were female-led, up from 16 percent in 2018.

To help continue this progress and in honour

of International Women’s Day on 8 March,

CICM held a webinar to celebrate women in the

industry and the adversities they have overcome.

Hosting the event, Sue Chapple FCICM, Chief

Executive of the CICM, said she was heartened

at the diversity of the audience in attendance: “It

was a joyous occasion that felt inclusive rather

than exclusive. And it was nice to see several nonwomen

gathered, because progress can only be

made if we come together.”

Power of perseverance

Speaking first, Laura Brown MCICM (Grad)

recounted her unexpected journey into credit,

having left school at 16 to become a hairdresser, a

job she held for four years:

“I enjoyed the customer interaction and the

creativity of being a hairdresser, but I wanted a

change, so I got an administrative job at an office.

When a vacancy opened for a credit control role

at my office, I thought I’d give it a go. I was able to

channel my passion for customer relations, while

also learning about an entirely new sector.”

After completing her Level 3 CICM course,

Laura gradually moved up to her current role

as the Head of Credit Control at Saint-Gobain.

She credits the mentorship she receives at the

company for her success:

“I had a great line manager who believed in

me, and another female mentor who pushed me

to do my Level 5 course. When I got my certificate

in the post, I realised how much I needed that

motivation.”

Completing her Level 5, however, was an

arduous journey that took six years. Between

having two children and adapting to the

demanding workload that came with her

promotion at work, she had to fit her studies into

the limited spare time she had.

Having persevered through this challenging

time in her life, she is now focused on making

her workplace more inclusive for women: “I

work with the Women’s Network at Saint-Gobain,

helping raise the profile of women within the


OPINION


❝

I had a friend who announced that he was accepted for a work experience placement

at a London law firm, and I had no idea how he did it. That’s when I realised I had to

be proactive and create opportunities for myself.

business and the construction industry.

Most recently, we used research-backed

methods to reword our job adverts to

attract more female candidates. It led to us

recruiting our first female operator, a role

predominantly held by men.”

Social mobility

Next, Paula Swain FCICM spoke about the

importance of social mobility. While she is

now a partner at Shoosmiths LLP overseeing

a large team in debt recovery litigation, her

career path was fraught with challenges:

“We moved around quite a bit when I

was child. I did some of my schooling in

Botswana, where I was the only white female

in the classroom. It was a challenging

environment, but it made me resilient and

gave me the tools to cope with change.”

Paula’s interest in a law career was shaped

by role models on television, and more

specifically, by the TV programme L.A. Law,

which featured independent and strongminded

women that she wanted to emulate:

“Those characters reflected how I felt

about myself, and I was determined to make

that my reality. But no one in my family went

to university, and I certainly didn’t know any

female lawyers.”

What helped her attain her ambition

was sheer optimism and determination.

After deliberately changing schools to

surround herself with aspirational friends

and teachers, her eyes were opened to

the possibility of going to university and

studying law.

Although she was living out her deams

during her law degree, she continued to

encounter further gaps in her knowledge:

“I had a friend who announced that he

was accepted for a work experience

placement at a London law firm, and I

had no idea how he did it. That’s when I

realised I had to be proactive and create

opportunities for myself.”

Paula ended her talk by reminding

young people that their background

is not a barrier to reaching their goals:

“Just because no one around you has

done a job that you’re interested in

doesn’t mean that you can’t do it. There’s

more empowerment and resources out

there today than ever before.”

Imposter syndrome

The final speaker, Neil Jinks FCICM, spoke

in his capacity as an ally to women in the

industry as well as a gay man who resonates

with the experiences of the marginalisation

many women encounter in their career.

Now the Head of Client Development &

Communications at Court Enforcement

Services, he started out his career as an

office junior at a law firm at the age of 16.

He recalls the harsh treatment he received

from his former boss, which he believes

may go some way towards explaining why

he experiences imposter syndrome to this

day:

“I went on to become a manager in a

leading law firm in debt recovery at the age

of 21,” he recalled. “But in my mind, I was

still the office junior, and I didn’t feel like

I belonged in a boardroom. And as many

surveys show, most women also feel this

way. It makes you devalue your worth and

undermine your experience.”

Neil has progressed to a point in his

career where he is no longer controlled

by feelings of being an imposter,

although he admits that he still has bad days.

He concluded by sharing some helpful tips

for those suffering from the same condition:

“Meditation has helped me manage me

thoughts; it teaches you to recognise and let

go of unhelpful thoughts that come into your

head,” he said. “And as I’ve become older

and wiser, I’ve realised that no one recruits

and promotes people they don’t believe in.

So, look back on your achievements and

remind yourself of the reasons you got your

job.”

An evolving industry

After thanking the speakers, Sue shared her

own experiences of overcoming adversity as

a woman in the credit industry:

“Like Neil, I also started out as an office

junior at the tender age of 16. You were

expected to do all the running around, while

being shouted at and told off. And it’s up to

you to navigate those challenging situations

and find a way forward.”

After opening the floor to questions

and comments, she brought the event to a

close by sharing her observations on the

industry’s evolution:

“In the last five years, I’ve noticed that

the industry has become more accepting

and appreciative of what both women

and men bring to the table as individuals,

regardless of gender, sexuality and other

characteristics. It shows that our industry is

heading in the right direction.”

❝

Paula’s interest

in a law career

was shaped by

role models on

television, and

more specifically,

by the TV

programme

L.A. Law,

which featured

independent and

strong-minded

women that she

wanted to emulate.

❝


Cr£ditWho?

CICM Directory of Services

COLLECTIONS

COLLECTIONS LEGAL

CREDIT DATA AND ANALYTICS

Controlaccount Plc

Address: Compass House, Waterside, Hanbury Road,

Bromsgrove, Worcestershire B60 4FD

T: 01527 386 610

E: sales@controlaccount.com

W: www.controlaccount.com

Controlaccount plc has been providing efficient, effective and

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

clients to improve internal processes and increase cashflow,

whilst protecting customer relationships and established

reputations. We have long-standing partnerships with leading,

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

over 30,000 overdue invoices each month, domestically and

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

services include credit control and dunning services, international

and domestic trace and legal recoveries. All our clients have

full transparency on any accounts placed with us through our

market leading cloud-based management portal, ClientWeb.

BlaserMills Law

High Wycombe | Amersham | Marlow | Silverstone

Rickmansworth | London

Jackie Ray : 07802 332104 | 01494 478660

jar@blasermills.co.uk

Daria Stepien : 01494 478674

das@blasermills.co.uk

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

www.blasermills.co.uk

Commercial Recoveries & Insolvency

Blaser Mills Law’s commercial recoveries team is internationally

recognised, regularly advising large corporations, multinationals

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

litigation, dispute resolution and insolvency. Our legal services

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

CICM qualified and ranked in the industry leading law firm rankings

publications, Legal 500 and Chambers UK.

identeco – Business Support Toolkit

Compass House, Waterside, Hanbury Road, Bromsgrove,

Worcestershire B60 4FD

Telephone: 01527 386 607

Email: info@identeco.co.uk

Web: www.identeco.co.uk

identeco Business Support Toolkit provides company details

and financial reporting for over 4m UK companies and

business. Subscribers can view company financial health and

payment behaviour, credit ratings, shareholder and director

structures, detrimental data. In addition, subscribers can also

download unlimited B2B marketing and acquisition reports.

Annual subscription is only £79.95. Other services available

to subscribers include AML and KYC reports, pre-litigation

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

others.

CREDIT MANAGEMENT SOFTWARE

Global Credit Recoveries

GCR 20-22 Wenlock Road,

London N1 7GU

Charles Mayhew FCICM or Joshua Mayhew ACICM

T: +44 (0) 203 368 8630

E: INFO@GLOBALCREDITRECOVERIES.COM

W: WWW.GLOBALCREDITRECOVERIES.COM

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

Awards, Global Credit Recoveries Ltd are specialists in Arbitration

and Debt Collection globally.

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

working as an extension of many CICM members companies for

over 28 years.

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

we can assist you.

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

debtors offices, throughout EMEA, within 72 hours.

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

Guildways

T: +44 3333 409000

E: info@guildways.com

W: www.guildways.com

Guildways is a UK & International debt collection specialist with over

25 years experience. Guildways prides itself on operating to the

highest ethical standards and professional service levels. We are

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

• A complete No collection, No Fee commission based service

• 10% plus VAT commission for UK debts

• Commission from 22% plus VAT for International debts

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

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

collections and minimise costs

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

fee, trace and collect service.

For more information, visit: www.guildways.com

Cr£ditWho?


Lovetts Solicitors

Lovetts, Bramley House, The Guildway,

Old Portsmouth Road,

Guildford, Surrey, GU3 1LR

T: 01483 347001

E: info@lovetts.co.uk

W: www.lovetts.co.uk

With more than 25yrs experience in UK & international business

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

every year on behalf of our clients. Services include:

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

of cases)

• Advice and dispute resolution

• Legal proceedings and enforcement

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

CaseManager

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

feedback: “All our service expectations have been exceeded.

The online system is particularly useful and extremely easy to

use. Lovetts has a recognisable brand that generates successful

results.”

CREDIT DATA AND ANALYTICS

CoCredo

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790600

E: customerservice@cocredo.com

W: www.cocredo.co.uk

For over 20 years, CoCredo, as one of the UK's leading Credit

Report companies, has helped protect thousands of customers

from bad debt. Our data is compiled and constantly updated from a

variety of prominent UK and international suppliers, encompassing

230 countries, so that our clients can access the latest available

information in an easy-to-read report. We offer tailored products

and service solutions, from market-leading Dual Reports and

integrated XML solutions, monitoring and delivering flexible 'data

on the go' package options that reduce costs and boost cash flow.

Our clients feel valued that we are a part of their customer journey

and we have consistently been finalists and winners of numerous

Small Business and Credit Awards since 2014.

We provide award-winning customer service which is reflected in

our client retention rate of 99%.

HighRadius

T: +44 (0) 203 997 9400

E: infoemea@highradius.com

W: www.highradius.com

HighRadius provides a cloud-based Integrated Receivable

Platform, powered by machine learning and AI. Our Technology

empowers enterprise organisations to reduce cycle time in the

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

automating receivables and payments processes across credit,

electronic billing and payment processing, cash application,

deductions, and collections.

Tinubu Square UK

Holland House, 4 Bury Street,

London EC3A 5AW

T: +44 (0)207 469 2577 /

E: uksales@tinubu.com

W: www.tinubu.com

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

of the Credit Insurance, Surety and Trade Finance digital

transformation.

Tinubu Square enables organizations across the world to

significantly reduce their exposure to risk and their financial,

operational and technical costs with best-in-class technology

solutions and services. Tinubu Square provides SaaS solutions

and services to different businesses including credit insurers,

receivables financing organizations and multinational corporations.

Tinubu Square has built an ecosystem of customers in over 20

countries worldwide and has a global presence with offices in

Paris, London, New York, Montreal and Singapore.

Credica Ltd

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

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

Our highly configurable and extremely cost effective Collections

and Query Management System has been designed with 3 goals

in mind:

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

• To provide meaningful analysis of your business

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

Credit Professionals across the UK and Europe, our system is

successfully providing significant and measurable benefits for our

diverse portfolio of clients.

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

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


FOR ADVERTISING INFORMATION OPTIONS

AND PRICING CONTACT

paul@centuryone.uk 01727 739 196



ENFORCEMENT

Blackline

33 Charlotte St, London W1T 1RR

T: +44 (0) 203 318 5941

E: sales@blackline.com

W:www.blackline.com/solutions/accounts-receivableautomation/

Transform and modernize your accounts receivable processes.

Release cash from customers using next-generation intelligent

AR automation. Optimize working capital by driving world-class

order-to-cash processes and leverage 'decision intelligence' to

drive better business outcomes.

Cash Application AR Intelligence

Credit & Risk Management

Collections Management

Disputes & Deductions Management

Team & Task Management

Reduce or eliminate manual tasks, and enable AR teams to

focus on actions that drive results. Strengthen decision

intelligence to deliver significant value to the organization

by harnessing BlackLine’s ground-breaking AR Intelligence

module - unlock hidden data in Accounts Receivable processes

and understand customer behaviours in real time.

For more information and a free instant ROI calculation for AR

visit https://www.blackline.com/solutions/accounts-receivableautomation/

Data Interconnect Ltd

45-50 Shrivenham Hundred Business Park,

Majors Road, Watchfield. Swindon, SN6 8TZ

T: +44 (0)1367 245777

E: sales@datainterconnect.co.uk

W: www.datainterconnect.com

We are dedicated to helping finance teams take the cost,

complexity and compliance issues out of Accounts Receivable

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

for the continuous improvement of AR metrics and KPIs in a

user-friendly interface. Credit Controllers can manage more

accounts with better results and customers can self-serve on

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

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

Delivery Corrivo is the only AR platform with integrated invoice

finance options for both buyer and supplier that flexes credit

terms without degrading DSO. Call for a demo.

ContactEngine

A NICE Company

Email: info@contactengine.com

Website: www.contactengine.com

ContactEngine is a proactive customer engagement platform,

which connects organizations to its customers through AI

powered digital conversations, enabling fully automated

customer journeys. The game changer for collections?

Companies can now talk directly with tens of thousands of

people simultaneously. This enables collections treatment

automation using intelligent, natural language conversations,

dynamic engagement strategies, and easy-to-trigger payment

transactions that move the needle and help organisations collect

outstanding debt faster. ContactEngine anticipates the need

to interact with customers and fully automates personalized,

multichannel conversations that engage customers over days,

weeks, months and years to achieve specific milestones or

trigger next steps based on customer responses.

For more information, visit www.contactengine.com/solutions/

collections or email info@contactengine.com

ESKER

Sam Townsend Head of Marketing

Northern Europe Esker Ltd.

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

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

Twitter: @EskerNEurope blog.esker.co.uk

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

obstacles preventing today’s businesses from collecting

receivables in a timely manner. From credit management to cash

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

Esker’s automated AR system helps companies modernise

without replacing their core billing and collections processes. By

simply automating what should be automated, customers get the

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

they need.

SERRALA

Serrala UK Ltd, 125 Wharfdale Road

Winnersh Triangle, Wokingham

Berkshire RG41 5RB

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

T +44 118 207 0450 M +44 7788 564722

Serrala optimizes the Universe of Payments for organisations

seeking efficient cash visibility and secure financial processes.

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

worldwide. With more than 30 years of experience and

thousands of successful customer projects, including solutions

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

managers and receivables professionals with the solutions they

need to successfully protect their business against credit risk

exposure and bad debt loss.

My DSO Manager

22, Chemin du Vieux Chêne,

Bâtiment D, Meylan, FRANCE

T: +33 (0)458003676

E: contact@mydsomanager.com

W: www.mydsomanager.com

My DSO Manager is an all-in-one intelligent SaaS accounts

receivable and credit management system that provides realtime

insight and scalability from SMEs to international multientity

companies. It helps AR analysts, accounting or finance

managers, and any client-facing employee, manage risk and

maximize cash collection.

It can swiftly integrate any kind of data from any ERP and

implement any customization due to its creative, competent IT

teams that are headquartered inside the firm and collaborate

closely with support employees, many of whom were formerly

credit managers at big corporations.

The feature-rich functions, automated reminders, alerts, and

numerous services connected to the solution, such as EDM/

CRMs/insurance/e-payment/BI platforms etc., along with a

reasonable pricing system, have simplified the credit-to-cash

cycle by monitoring daily KPIs like DSO, aging balance, overdues/

past-dues, customer behavior, and cash forecast.

My DSO Manager's worldwide clientele are its real ambassadors,

who assist the company in expanding on an ongoing basis.

Cr£ditWho?


Court Enforcement Services

Adele Whitehurst – Client Relationship Manager

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

E : a.whitehurst@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

Court Enforcement Services is the market leading and fastest

growing High Court Enforcement company. Since forming in 2014,

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

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

help lawyers and creditors across all sectors to recover unpaid

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

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

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

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

personable approach. We work hard to achieve the best results

and protect your reputation.

High Court Enforcement Group Limited

Client Services, Helix, 1st Floor

Edmund Street, Liverpool, L3 9NY

T: 08450 999 666

E: clientservices@hcegroup.co.uk

W: hcegroup.co.uk

Putting creditors first

We are the largest independent High Court enforcement company,

with more authorised officers than anyone else. We are privately

owned, which allows us to manage our business in a way that

puts our clients first. Clients trust us to deliver and service is

paramount. We cover all aspects of enforcement – writs of control,

possessions, process serving and landlord issues – and are

committed to meeting and exceeding clients’ expectations.

FINANCIAL PR

Gravity Global

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

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

W: www.gravityglobal.com

Gravity is an award winning full service PR and advertising

business that is regularly benchmarked as being one of the

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

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

brands working on often challenging briefs. As the partner

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

years, and the Chartered Institute of Credit Management since

2006, it understands the key issues affecting the credit industry

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

media and beyond.

FORUMS

FORUMS INTERNATIONAL

T: +44 (0)1260 275716

E: info@forumsinternational.co.uk

W: www.forumsinternational.co.uk

Forums International Ltd have been running Credit and Industry

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

International trading, attendance is for Credit Professionals of all

levels. Our forums are not just meetings but communities which

aim to prepare our members for the challenges ahead. Attending

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

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

never intentionally be sold to.


Cr£ditWho?


FOR ADVERTISING INFORMATION

OPTIONS AND PRICING CONTACT

paul@centuryone.uk 01727 739 196

INSOLVENCY

Menzies

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

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

W: menzies.co.uk/creditor-services

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

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

is approaching, insolvency proceedings. Our services include

assisting with retention of title claims, providing representation

at creditor meetings, forensic investigations, raising finance,

financial restructuring and removing the administrative burden

– this includes completing and lodging claim forms, monitoring

dividend prospects and analysing all Insolvency Reports and

correspondence.

For more information on how the Menzies Creditor Services

team can assist, please contact Bethan Evans, Licensed

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

+44 (0)2920 447 512.

name

address

T: +44 (0)

E: s

W: www.

The UK’s No1 Insolvency Score is available as platform

designed to help businesses manage risk and achieve growth

using real-time data. The only independently owned UK credit

referencing agency for businesses. We have modernised the

way companies consume data, via Graph QL API and apps for

many CRM / ERP systems to power businesses decisions with

the most important data taken in real-time feeds, ensuring our

customers are always the first to know.

Red Flag Alert has a powerful portfolio management tool

enabling you to monitor all your customers and suppliers so

you and your teams can receive email alerts on data events

i.e. CCJ, Petitions, Accounts, Directors, amongst 84 alerts

produced and tailored to your business.

Red Flag Alert works towards growing and protecting

businesses using advanced machine learning and AI technology

data to provide businesses with information to deliver best in

class sales, credit risk management and compliance.

LEGAL

Shoosmiths

Email: paula.swain@shoosmiths.co.uk

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

Shoosmiths’ highly experienced team will work closely with credit

teams to recover commercial debts as quickly and cost effectively

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

recovery, including:

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

down

•Litigation service

•Post-litigation services including enforcement

•Insolvency

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

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

achieving them.

PAYMENT SOLUTIONS

American Express

76 Buckingham Palace Road,

London. SW1W 9TQ

T: +44 (0)1273 696933

W: www.americanexpress.com

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

globally recognised provider of payment solutions to businesses.

Specialising in providing flexible collection capabilities to drive a

number of company objectives including:

• Accelerate cashflow • Improved DSO • Reduce risk

• Offer extended terms to customers

• Provide an additional line of bank independent credit to drive

growth • Create competitive advantage with your customers

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

American Express is working with credit managers to drive growth

within businesses of all sectors. By creating an additional lever

to help support supplier/client relationships American Express is

proud to be an innovator in the business payments space.

Key IVR

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

W: www.keyivr.com

Key IVR are proud to have joined the Chartered Institute of

Credit Management’s Corporate partnership scheme. The

CICM is a recognised and trusted professional entity within

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

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

their membership collection activities. Key IVR provides a suite

of products to assist companies across the globe with credit

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

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

automated collection methods, such as a secure telephone

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

valuable staff time away from typical debt collection.

Quadient AR by YayPay

T: +44 20 8502 8476

E: r.harash@quadient.com

W: www.quadient.com/en-gb/ar-automation

Quadient AR by YayPay makes it easy for B2B finance teams

to stay ahead of accounts receivable and get paid faster – from

anywhere. Integrating with your existing ERP, CRM, accounting

and billing systems, YayPay organizes and presents real-time data

through meaningful, cloud-based dashboards. These increase

visibility across your AR portfolio and provide your team with a

single source of truth, so they can access the information they

need to work productively, no matter where they are based.

Automated capabilities improve team efficiency by 3X and

accelerate the collections process by making communications

customizable and consistent. This enables you to collect cash

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

resources as your business grows.

Predictive analytics provide insight into future payer behavior to

improve cash flow management and a secure, online payment

portal enables customers to access their accounts and pay at any

time, from anywhere.

FIS GETPAID

25 Canada Square

London, GB E14 5LQ

T: +447730500085

E: getinfo@fisglobal.com.

W: www.fisglobal.com

The award-winning FIS GETPAID solution is a fully integrated,

web-based order-to cash (O2C) solution that helps companies

improve operational efficiencies, lower DSO, and increase cash

flow. GETPAID provides process automation, artificial intelligence,

and workflow across the O2C cycle, with detailed analysis and

reporting for accurate cash forecasting. FIS is a global leader in

financial services technology that empowers the financial world.

For more information visit https://www.fisglobal.com/en/cashflowand-capital/credit-and-collections

or email getinfo@fisglobal.com.

RECRUITMENT

Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Hays Credit Management is working in partnership with the CICM

and specialise in placing experts into credit control jobs and

credit management jobs. Hays understands the demands of this

challenging environment and the skills required to thrive within

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

contract based opportunities to find your ideal role. Our candidate

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

interviews and a credit control skills test developed exclusively for

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

can provide advice across a wide spectrum of job search and

recruitment issues.

PORTFOLIO

CREDIT CONTROL

Portfolio Credit Control

1 Finsbury Square, London. EC2A 1AE

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

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

specialises in the recruitment of Permanent, Temporary & Contract

Credit Control, Accounts Receivable and Collections staff

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

Recruiter, we speak to Credit Controllers every day and

understand their skills meaning we are perfectly placed to provide

your business with talented Credit Control professionals. Offering

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

and remote briefings, interviews and feedback options.

We provide both candidates & clients with a commitment to deliver

that will exceed your expectations every single time.

FOR

ADVERTISING

INFORMATION

OPTIONS AND

PRICING CONTACT

paul@centuryone.uk

01727 739 196

Cr£ditWho?



STUART LITTLER

NEW HEAD OF ACCOUNTS

“

Having worked in an accounting practice for over 25 years,

qualifying as a Chartered Accountant in 2000 and a Director of the

company since 2010, I developed and headed up the legal services

department within the practice that dealt with the accounting

and compliance needs of our solicitors’ portfolio. I worked solely

with solicitor practices, supporting their accounting requirements,

business and profit development as well as regulatory compliance.

My finance and regulatory background has enabled me to

guide firms in developing sound financial controls and

compliance with the solicitors regulatory body, which is

crucial for any solicitors practice in the ever changing

environment in which they operate.

- Stuart Littler FCA

www.thomashiggins.com


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