CM MAY 2023
The CICM magazine for consumer and commercial credit professionals
The CICM magazine for consumer and commercial credit professionals
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CREDIT MANAGEMENT<br />
<strong>CM</strong><br />
<strong>MAY</strong> <strong>2023</strong> £13.00<br />
THE CI<strong>CM</strong> MAGAZINE FOR CONSUMER AND<br />
COMMERCIAL CREDIT PROFESSIONALS<br />
TALL AND<br />
PROUD<br />
Lenders are<br />
ready to lend<br />
Can credit managers protect<br />
themselves against COVID-19<br />
fraud?. Page 16<br />
There’s more to<br />
Sweden than just ABBA<br />
and IKEA. Page 34
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40<br />
AN UNLUCKY BREAK<br />
AUTHOR – Peter Walker<br />
<strong>MAY</strong> <strong>2023</strong><br />
www.cicm.com<br />
CONTENTS<br />
34<br />
KNOWING ME<br />
KNOWING YOU<br />
AUTHOR –<br />
Adam Bernstein<br />
10 – THE MISSING PIECE<br />
How data completes the puzzle of business<br />
resilience.<br />
12 – STANDING TALL<br />
Banks and finance providers stand ready<br />
to support businesses and individuals.<br />
16 – FIGHTING FRAUD<br />
How can credit managers protect<br />
themselves against COVID-19 fraud?<br />
19 – MODEL LAWS<br />
Recognition and enforcement of<br />
insolvency-related judgments.<br />
24 – CONTRACTING COSTS<br />
Contractual provisions and other<br />
mechanisms for dealing with spiralling<br />
costs.<br />
16<br />
FIGHTING FRAUD<br />
AUTHOR –<br />
Giuseppe Parla<br />
CI<strong>CM</strong> GOVERNANCE<br />
View our digital version online at www.cicm.com. Log on to the Members’<br />
area, and click on the tab labelled ‘Credit Management magazine’<br />
Credit Management is distributed to the entire UK and international CI<strong>CM</strong><br />
membership, as well as additional subscribers<br />
Reproduction in whole or part is forbidden without specific permission. Opinions expressed in this magazine do<br />
not, unless stated, reflect those of the Chartered Institute of Credit Management. The Editor reserves the right to<br />
abbreviate letters if necessary. The Institute is registered as a charity. The mark ‘Credit Management’ is a registered<br />
trade mark of the Chartered Institute of Credit Management.<br />
Any articles published relating to English law will differ from laws in Scotland and Wales.<br />
12<br />
STANDING TALL<br />
AUTHORS –<br />
Lee Hopley, Sean Feast<br />
FCI<strong>CM</strong> and Roshika Perera<br />
President Stephen Baister FCI<strong>CM</strong> / Chief Executive Sue Chapple FCI<strong>CM</strong><br />
Executive Board: Chair Debbie Nolan FCI<strong>CM</strong>(Grad) / Vice Chair Phil Rice FCI<strong>CM</strong> / Treasurer Glen Bullivant FCI<strong>CM</strong><br />
Larry Coltman FCI<strong>CM</strong> / Neil Jinks FCI<strong>CM</strong> / Allan Poole MCI<strong>CM</strong><br />
Advisory Council: Caroline Asquith-Turnbull FCI<strong>CM</strong> / Laurie Beagle FCI<strong>CM</strong> / Glen Bullivant FCI<strong>CM</strong> /Brendan Clarkson FCI<strong>CM</strong><br />
Larry Coltman FCI<strong>CM</strong> / Peter Gent FCI<strong>CM</strong>(Grad) / Victoria Herd FCI<strong>CM</strong>(Grad) / Andrew Hignett MCI<strong>CM</strong>(Grad)<br />
Laural Jefferies FCI<strong>CM</strong> / Neil Jinks FCI<strong>CM</strong> / Martin Kirby FCI<strong>CM</strong> / Charles Mayhew FCI<strong>CM</strong> / Hans Meijer FCI<strong>CM</strong> / Debbie Nolan<br />
FCI<strong>CM</strong>(Grad) / Amanda Phelan MCI<strong>CM</strong>(Grad) / Allan Poole MCI<strong>CM</strong> / Phil Rice FCI<strong>CM</strong> / Phil Roberts FCI<strong>CM</strong> / Chris Sanders FCI<strong>CM</strong><br />
Paula Swain FCI<strong>CM</strong> / Jamie Thornton MCI<strong>CM</strong> / Mark Taylor MCI<strong>CM</strong> / Atul Vadher FCI<strong>CM</strong>(Grad)<br />
30 – BY THE SWORD DIVIDED<br />
Credit management appears divided<br />
between professional and not so<br />
professional practitioners.<br />
34 – KNOWING ME, KNOWING YOU<br />
There’s more to Sweden than just Abba<br />
and IKEA!<br />
40 – AN UNLUCKY BREAK<br />
Can a holidaymaker suffering an<br />
injury bring a claim against a UK credit<br />
card company, even if they are not its<br />
customer?<br />
Publisher<br />
Chartered Institute of Credit Management<br />
1 Accent Park, Bakewell Road, Orton Southgate,<br />
Peterborough PE2 6XS<br />
Telephone: 01780 722900<br />
Email: editorial@cicm.com<br />
Website: www.cicm.com<br />
<strong>CM</strong>M: www.creditmanagement.org.uk<br />
Managing Editor<br />
Sean Feast FCI<strong>CM</strong><br />
Deputy Editor<br />
Iona Yadallee<br />
Art Editor<br />
Andrew Morris<br />
Telephone: 01780 722910<br />
Email: andrew.morris@cicm.com<br />
Editorial Team<br />
Joe Clarkson, Rob Howard, Roshika Perera,<br />
Melanie York and Mona Yazdanparast<br />
Advertising<br />
Paul Heitzman<br />
Telephone: 01727 739 196<br />
Email: paul@centuryone.uk<br />
Printers<br />
Stephens & George Print Group<br />
<strong>2023</strong> subscriptions<br />
UK: £129 per annum<br />
International: £160 per annum<br />
Single copies: £13.00<br />
ISSN 0265-2099<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 3
EDITOR’S COLUMN<br />
Blame it on the<br />
weather, man!<br />
Sean Feast FCI<strong>CM</strong><br />
Managing Editor<br />
AS the son of a farmer, I<br />
was especially alarmed<br />
to read a recent report<br />
from our friends at<br />
Atradius regarding the<br />
crisis in the food sector<br />
amid a national shortage of products like<br />
eggs and some vegetables. Claims for<br />
late and failed payments have risen by<br />
some 79 percent, whereas claims in the<br />
agriculture sector as a whole have more<br />
than doubled in the last 12 months to 119<br />
percent.<br />
Now I am conscious that I am the<br />
managing editor of Credit Management,<br />
and not Farmers Weekly. I am conscious,<br />
also, that it is many years since I last<br />
mucked out a cow shed (although my<br />
two boys were home for Easter, and there<br />
were some similarities after they left).<br />
But there are some blindingly obvious<br />
reasons for why certain shelves within<br />
certain retailers are empty.<br />
Whichever came first, whether it was<br />
the chicken or the egg, both are in short<br />
supply. Farmers are having to absorb<br />
rising costs of feed, energy and labour,<br />
at the same time as dealing with one of<br />
the worst outbreaks of avian flu in recent<br />
history. Things are getting better. At the<br />
time of going to press, the mandatory<br />
housing measures for poultry and<br />
captive birds was about to be lifted, but<br />
the huge disruption caused to farmers<br />
in Norfolk, Lincolnshire, and other<br />
affected counties will impact the food on<br />
our tables for many months to come.<br />
Vegetable producers are facing their<br />
own set of challenges. We never did<br />
veg or arable, only meat, so I am not an<br />
authority (and my knowledge of herbal<br />
lays is only what I’ve gleaned from The<br />
Archers), but I do know that unseasonable<br />
weather is impacting crop yields, and<br />
that in turn affects supply. As Georgios<br />
Panzaris, Senior Underwriter at Atradius<br />
(and no doubt avid Archers’ fan), says,<br />
‘farmers are facing a raft of challenges in<br />
an already volatile environment.’<br />
All of which means ‘trouble at mill’,<br />
almost literally.<br />
Georgios reckons that companies<br />
that have traditionally operated on thin<br />
margins will be particularly vulnerable<br />
to volatile market conditions, but even<br />
the biggest players are being tested.<br />
Some retailers are doing more than<br />
just holding onto their cash for longer;<br />
some are not paying their suppliers<br />
at all. He’s sufficiently concerned to<br />
admit that Atradius will only continue<br />
to underwrite agri-food firms on a caseby-case<br />
basis. And that means having<br />
robust data and financial insight at your<br />
fingertips to have any hope of getting<br />
cover.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 4
<strong>CM</strong>NEWS<br />
A round-up of news stories from the<br />
world of consumer and commercial credit.<br />
Insurance claims rise<br />
alarmingly in food sector<br />
ATRADIUS has reported a 79<br />
percent increase in claims for<br />
late and failed payments in<br />
the food sector amid national<br />
supply shortages of products<br />
like eggs and some vegetables.<br />
Its data shows the agriculture sector also<br />
saw claims more than double (119 percent<br />
increase) last year.<br />
Atradius provides trade credit insurance,<br />
which helps to protect suppliers against<br />
the risk of a retailer becoming insolvent<br />
between when they place an order and make<br />
payment. Without insurance, suppliers tend<br />
to seek more specific payment terms, putting<br />
pressure on a retailer’s cash flow.<br />
A rise in claims received in the sector<br />
indicates the number of retailers failing to<br />
pay their suppliers has risen exponentially<br />
over the last 12 months, as firms struggle to<br />
return to business as usual.<br />
Georgios Panzaris, Senior Underwriter at<br />
Atradius, says it has been a challenging few<br />
years for the food industry: “Ongoing supply<br />
issues look set to continue as the sector<br />
battles with the quadruple threat of rising<br />
prices, ongoing fallout from Brexit and the<br />
pandemic, and bad weather conditions,” he<br />
explains.<br />
“The empty shelves shoppers are seeing<br />
have different root causes. Egg shortages<br />
are largely down to farmers being hit by the<br />
rising costs of feed, energy and labour, not<br />
to mention the largest avian flu outbreak<br />
we’ve ever seen, with undersupply at<br />
risk of persisting for months. Meanwhile<br />
Written by – Sean Feast FCI<strong>CM</strong><br />
❝<br />
The empty shelves<br />
shoppers are seeing<br />
have different<br />
root causes. Egg<br />
shortages are largely<br />
down to farmers<br />
being hit by the<br />
rising costs of feed,<br />
energy and labour,<br />
not to mention the<br />
largest avian flu<br />
outbreak we’ve ever<br />
seen.<br />
❝<br />
vegetable producers are facing similar<br />
challenges alongside unfavourable weather<br />
conditions, with lower crop yields affecting<br />
supply. Put simply, farmers are facing a<br />
raft of challenges in an already volatile<br />
environment.<br />
“Our data on late and failed payments<br />
paints a bleak picture, with the number of<br />
claims we received in the sector for late<br />
and failed payments up by 79 percent in<br />
the food sector, and a huge 119 percent in<br />
the agriculture sector last year. This follows<br />
a relatively subdued period in 2021 where<br />
businesses could benefit from ongoing<br />
Government support put in place during the<br />
pandemic. But with no such support in place<br />
this year, firms will be bracing themselves for<br />
the coming months.”<br />
Georgios says that companies that have<br />
traditionally operated on thin margins will<br />
be particularly vulnerable to volatile market<br />
conditions, but even the biggest players are<br />
being tested: “With insolvency a real risk,<br />
businesses need to do all they can to ensure<br />
they are protecting cash flow so they can<br />
mitigate the risk of a large customer failing<br />
unexpectedly.<br />
“Atradius continues to underwrite agri-food<br />
firms on a case-by-case basis, but it’s crucial<br />
businesses have robust and updated financial<br />
insight and forecasts. To guard against the<br />
domino effect that crumbling supply chains<br />
can have on firms, a trade credit insurance<br />
policy can play a very important role in<br />
maintaining a company’s confidence in its<br />
trade debtor book.”<br />
Inquiry tackles issues of small developers<br />
THE all-party parliamentary group<br />
(APPG) for SME housebuilders is<br />
undertaking an inquiry into the<br />
specific finance issues faced by<br />
smaller developers. The inquiry is<br />
looking at not only the effects of<br />
the current economic climate but<br />
also planning delays, stretched<br />
funding and modern methods of<br />
construction. It is jointly funded by<br />
northwest-based accountancy firm<br />
Cowgills and SME lender Aldermore<br />
and is chaired by MP Andrew Lewer.<br />
In recent years, SME housebuilders<br />
have faced a number of challenges,<br />
including a lack of access to finance,<br />
planning delays and a shortage of<br />
skilled workers. These factors are said<br />
to have contributed to a decline in the<br />
number of small housebuilders, with<br />
many struggling to compete with<br />
larger firms. The parliamentary group<br />
expects to publish a report with policy<br />
recommendations later this year.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 5
NEWS ROUNDUP<br />
One in six adults have less than<br />
£20 per week of disposable income<br />
ONE in six adults – the<br />
equivalent of seven and<br />
a half million people<br />
– has £20 or less to<br />
live on after paying<br />
for essentials each<br />
month, according to YouGov polling by<br />
StepChange Debt Charity, with one in<br />
twelve (eight percent) people having no<br />
disposable income at all.<br />
The survey is said to chime with<br />
StepChange’s own client data which<br />
shows one third (33 percent) of new<br />
clients are in a negative budget,<br />
meaning that, after a debt advice<br />
session and budget counselling, their<br />
expenses exceed their income.<br />
The polling also reveals the impact<br />
of nine consecutive interest rate rises<br />
on mortgage holders and renters alike.<br />
Half (50 percent) of renters and 38<br />
percent of mortgage holders expect<br />
their housing payments to rise within<br />
the next 12 months. Of those facing a<br />
rise, one in four (26 percent) expects to<br />
be driven into problem debt because of<br />
it. Among renters whose rent is rising,<br />
four in five (81 percent) say it’s because<br />
their landlord is increasing their rent.<br />
While the Chancellor confirmed in<br />
the Spring Budget that the Energy Price<br />
Guarantee (EPG) has been extended<br />
for another three months, the Energy<br />
Bill Support Scheme (EBSS), which<br />
has seen households receive a £400<br />
discount on their energy bills came to<br />
an end on 31 March. More than one in<br />
three (37 percent) people say they will<br />
have to borrow to cope, a figure that<br />
rises to more than two in three among<br />
Universal Credit claimants (67 percent)<br />
and one in two (56 percent) among<br />
renters.<br />
Despite mandatory signposting on<br />
collections letters, the survey shows<br />
that one in six (16 percent) people<br />
do not know debt advice services<br />
even exist, and a further one in five<br />
(21 percent) wrongly believe that<br />
contacting a debt advice organisation<br />
would have a negative impact on their<br />
credit score.<br />
StepChange is calling for reform<br />
that will have a long-term impact<br />
and ultimately protect people from<br />
remaining trapped in a spiral of<br />
problem debt. The charity has<br />
been campaigning for an end to<br />
unaffordable deductions from benefits<br />
to repay debts and would like to see the<br />
Households balancing on financial cliff edge<br />
AS UK households grapple with<br />
the rising cost-of-living, customers<br />
are continuing to borrow and are<br />
increasingly falling into debt.<br />
Lowell’s Financial Vulnerability<br />
Index (FVI), which measures and<br />
tracks financial resilience across the<br />
UK, suggests that the share of adults<br />
in default is edging up to peak levels<br />
seen at the beginning of the pandemic;<br />
the proportion of adults in default<br />
has risen to its joint highest level<br />
since Q4 2019 as households increase<br />
expenditure during the rising cost-ofliving.<br />
John Pears, UK CEO at Lowell,<br />
says that the new data shows a<br />
complex picture of financial health<br />
in the UK: “Overall it might be getting<br />
better, but we’re still miles away from<br />
where we were before the pandemic.<br />
Dive a little deeper and we can see<br />
a range of issues bubbling under the<br />
surface.<br />
“The decline in overall financial<br />
vulnerability is important, but it’s still<br />
high. Default rates are rising. We need<br />
to think about what we’re doing, at<br />
an industry and Government level, to<br />
improve the country’s financial health<br />
over the long term. Topics such as<br />
teaching better money management,<br />
helping people better understand<br />
financial products and destigmatising<br />
debt all need to be higher on the<br />
agenda.<br />
“As an industry, we are on the<br />
frontline of the rising cost-of-living.<br />
By working with the Government and<br />
other industry bodies, we can help<br />
them fully understand the customer<br />
debt journey, ensure the credit system<br />
is working in everyone’s interests<br />
and address the underlying issues of<br />
financial vulnerability.”<br />
The new figures show that UK<br />
households’ financial health has<br />
actually been improving since the<br />
beginning of the COVID-19 pandemic<br />
but increases in the cost-of-living<br />
appear to be preventing a quicker<br />
return to pre-pandemic levels of<br />
financial health. An increase in<br />
expenditure is likely to drive higher<br />
defaults over the long-term.<br />
Credit use remains significantly<br />
higher than before the pandemic; it has<br />
been on a clear rise since the start of<br />
the pandemic and remains well above<br />
pre-pandemic levels as households<br />
continue to borrow, despite rising<br />
interest rates. Dependence on social<br />
benefits continues to fall from the high<br />
levels seen during the pandemic but<br />
remains higher than it was between<br />
2017 and 2019.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 6
NEWS ROUNDUP<br />
StepChange is calling for reform that will have a<br />
long-term impact and ultimately protect people from<br />
remaining trapped in a spiral of problem debt.<br />
introduction of a social tariff on energy<br />
bills to support low income households.<br />
Meanwhile, Vikki Brownridge,<br />
currently Director of Operations at<br />
StepChange, has taken over from Phil<br />
Andrew as CEO. Phil is leaving the<br />
charity after more than five years in the<br />
post. Vikki is the first woman to become<br />
Chief Executive of the charity and takes<br />
up the role after more than 17 years at<br />
StepChange, during which time she has<br />
risen through the ranks and worked<br />
in a number of senior roles including<br />
Director of Charity Development and<br />
most recently Director of Operations.<br />
Prior to joining StepChange Vikki<br />
held a number of senior positions<br />
within contact centre operations<br />
working in financial services and<br />
outsourcing.<br />
❝<br />
Her appointment follows soon after<br />
publication of StepChange’s 2022<br />
Statistics Yearbook that suggests that<br />
the average (mean) unsecured debt<br />
per client increased by 25 percent<br />
from £11,176 in 2021 to £13,941 in 2022,<br />
and there was a 20 percent increase<br />
in clients seeking debt advice or<br />
guidance with problem debt between<br />
2021 (483,247) and 2022 (580,913).<br />
One third (33 percent) of clients<br />
were in arrears with their energy bills<br />
in 2022, compared to 29 percent in<br />
2021, while a clients’ average (mean)<br />
monthly income actually rose to<br />
£1,558 in 2022 compared to £1,434 in<br />
2021. Despite this, clients only had an<br />
average (mean) surplus of £73 to pay<br />
towards their debts each month in<br />
2022, compared to £100 in 2021.<br />
CI<strong>CM</strong> teams up with My DSO Manager<br />
THE Chartered Institute of Credit<br />
Management (CI<strong>CM</strong>), the largest<br />
professional credit management body<br />
in the world, has entered into a new<br />
agreement with My DSO Manager, a<br />
SaaS credit management and cash<br />
collection software provider.<br />
Through joint events, awards and<br />
content, the alliance will give CI<strong>CM</strong><br />
members access to valuable insights<br />
into managing risk, maximising cash<br />
collection, and streamlining the creditto-cash<br />
cycle, helping them optimise<br />
their business’ cashflow by improving<br />
its accounts receivable management.<br />
Founded in 2015, My DSO Manager<br />
helps accounts receivable professionals<br />
by providing a range of functionalities<br />
including automated and personalised<br />
cash collection strategies as well as<br />
real-time insights into the KPIs, cash<br />
forecasts and the risk behaviour of<br />
clients. It has over 1,500 clients in 85<br />
countries, including some renowned<br />
companies based in the UK, and is<br />
focused on further expanding its UK<br />
market.<br />
Sue Chapple FCI<strong>CM</strong>, Chief Executive<br />
of the CI<strong>CM</strong> says the alliance gives<br />
members access to effective ways<br />
of resolving a contentious issue:<br />
“Late payment is an issue that CI<strong>CM</strong><br />
members are all too familiar with,<br />
and we are delighted to partner<br />
with My DSO Manager to help credit<br />
professionals reform their collection<br />
strategies and reduce the risk of nonpayment<br />
to begin with.<br />
“My DSO Manager shows a deep<br />
understanding of the many factors that<br />
contribute to late payment, which is<br />
reflected through its comprehensive<br />
software that contains an array of<br />
features to help credit and collections<br />
professionals create tailored solutions<br />
for their business and customers.”<br />
Yalda Bayat, Communication-<br />
Marketing Manager at My DSO Manager,<br />
believes that the alliance will provide<br />
CI<strong>CM</strong> members with the resources to<br />
restore stability to their businesses:<br />
“Partnering with CI<strong>CM</strong> is an exciting<br />
opportunity that enables us to assist its<br />
members in managing their credit-tocash<br />
cycle more successfully.<br />
“By leveraging the expertise of the<br />
credit industry and remaining abreast<br />
of the most recent industry trends<br />
and best practices, we hope to provide<br />
credit managers with a broader range of<br />
automated capabilities and innovative<br />
functionalities that will ultimately<br />
improve their cashflow.”<br />
Sue Chapple FCI<strong>CM</strong>, Chief<br />
Executive of the CI<strong>CM</strong><br />
>NEWS<br />
IN BRIEF<br />
Poverty increases<br />
CHRISTIANS Against Poverty’s (CAP)<br />
latest YouGov polling shows around<br />
nine in ten (88 percent) of the adult<br />
population across the UK think it’s<br />
important more is done to tackle<br />
poverty. But many charities fighting<br />
poverty are facing funding struggles<br />
at a time when the cost-of-living crisis<br />
is driving increasing demand for their<br />
help. The new research suggests that<br />
half of all adults (25.9m) have gone<br />
without heat at some point this winter,<br />
with over 6m people going without<br />
heat on a daily basis. Around a third<br />
(16.9m) have had to skip meals, while<br />
four out of five (43.4m people) expect<br />
poverty to increase in the UK in the<br />
next year.<br />
DBT launches ‘Help<br />
to Grow’ site to boost<br />
economy<br />
THE UK Government has launched<br />
a new centralised website aimed at<br />
providing support and assistance to<br />
businesses across the country.<br />
The Help to Grow website from<br />
the Department for Business and<br />
Trade (DBT) is designed to upskill<br />
businesses of all sizes, helping them<br />
to reach more customers, learn new<br />
skills and boost their profits. The site<br />
brings together the expertise of the<br />
newly formed department, making it<br />
easier for businesses to access and use<br />
Government information and support.<br />
The launch of Help to Grow has<br />
been prompted by businesses’ need<br />
for easy-to-find information and the<br />
site aims to simplify the process of<br />
accessing such information. The site is<br />
described as being ‘focused on helping<br />
the UK’s 5.4m small businesses,<br />
which are a driving force behind<br />
the economy.’ It offers support and<br />
guidance at every stage of the business<br />
journey, from start-up to scale-up and<br />
exporting globally.<br />
Business and Trade Minister Kevin<br />
Hollinrake MP says that one of the key<br />
objectives of Help to Grow is to provide<br />
businesses with the tools they need to<br />
grow and succeed: “When businesses<br />
are given the right tools, it boosts<br />
profits, creates well-paid jobs and lifts<br />
the entire UK economy.<br />
“The Help to Grow website will play<br />
a pivotal role in helping firms achieve<br />
their business ambitions by enabling<br />
more businesses to reach their<br />
trading ambitions, increasing inward<br />
investment and removing business<br />
trade barriers.”<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 7
GOVERNMENT efforts<br />
to reform Companies<br />
House won’t achieve<br />
their aims without<br />
closing risky loopholes,<br />
insolvency and<br />
restructuring trade body R3 has<br />
warned.<br />
The Economic Crime and Corporate<br />
Transparency Bill aims to address the<br />
misuse of UK company registrations<br />
and removals by reforming the<br />
powers of Companies House, but<br />
R3 believes that without changes to<br />
the legislation around the company<br />
dissolution process, this objective<br />
won’t be met: “The Bill won’t improve<br />
transparency over corporate entities<br />
and tackle economic crime while<br />
companies are dissolved and struck<br />
off the Companies House register<br />
with no investigation into the conduct<br />
of their directors,” Nicky Fisher, Vice<br />
President of R3 explains.<br />
“At the moment, anyone who is<br />
looking to avoid investigation can do<br />
this by waiting until their company is<br />
NEWS ROUNDUP<br />
Companies House changes<br />
will fail without reforms<br />
struck off the register, as the option of<br />
restoring it via the courts to enable an<br />
investigation to happen is often too<br />
time consuming and expensive for<br />
the business’s creditors.<br />
“This loophole needs to be closed if<br />
Government wants this legislation to<br />
achieve what it’s intended to and stop<br />
company law from being abused.”<br />
R3 would like to see companies<br />
who have failed to file accounts<br />
and confirmation by Companies<br />
House’s deadline entered into a<br />
compulsory liquidation overseen by<br />
the Government’s Official Receiver<br />
if the missed deadline isn’t rectified<br />
or the company put into voluntary<br />
liquidation within a month:<br />
“Putting a company automatically<br />
into a compulsory liquidation would<br />
make it easier for director misconduct<br />
to be investigated, for the business’s<br />
assets to be recovered earlier, and<br />
would send a warning to those people<br />
looking to commit fraud,” Nicky says.<br />
“This approach would require<br />
additional resources, but these could<br />
be raised by making the business’s<br />
directors liable for the fees for the<br />
compulsory liquidation – and this<br />
would send a clear message to<br />
potential fraudsters that there are<br />
financial penalties for this crime,<br />
alongside being investigated and<br />
potentially imprisoned.”<br />
With the Economic Crime and<br />
Corporate Transparency Bill<br />
approaching the committee stage in<br />
the House of Lords, R3 is urging peers<br />
to make these amendments to the<br />
draft legislation before it completes<br />
its parliamentary journey: “Fraud<br />
affects millions of people and costs<br />
the UK billions of pounds a year,”<br />
Nicky says. “Through this Bill, the<br />
Government has a great opportunity<br />
to tighten the powers of Companies<br />
House and strengthen its efforts to<br />
tackle it.<br />
“We urge to take it by adopting these<br />
amendments – instead of waiting<br />
for another opportunity while people,<br />
businesses and the economy suffer at<br />
the hands of fraudsters.”<br />
Energy price increases remain top threat<br />
ALMOST half (43 percent) of global<br />
business leaders surveyed still see<br />
energy price increases as their biggest<br />
challenge this year, despite Western<br />
countries’ best efforts to impose energy<br />
spend caps over the winter months and<br />
control inflation.<br />
According to a Dun & Bradstreet’s<br />
report Data Driven Resilience: How to<br />
Grow When Facing an Uncertain Future<br />
– which surveyed more than 3,000<br />
business leaders across 18 countries –<br />
concern around energy price increases<br />
is felt most strongly in Europe, most<br />
notably in Poland with 60 percent<br />
seeing this as their biggest challenge<br />
as the continent navigates yet more<br />
economic headwinds. However, in the<br />
United States, this datapoint dropped<br />
sharply to a quarter (27 percent) – likely<br />
because of the country’s reliance on its<br />
own energy supply.<br />
❝<br />
However, in the United States, this datapoint<br />
dropped sharply to a quarter (27 percent) –<br />
likely because of the country’s reliance on its<br />
own energy supply.<br />
By comparison, the overall increases<br />
to the cost of doing business is expected<br />
to have an acute impact on more than<br />
a third (37 percent) of businesses<br />
surveyed in <strong>2023</strong>, as the world<br />
continues to recoup its economic losses<br />
following the pandemic.<br />
Although the survey found that 27<br />
percent of leaders rate their business’<br />
resilience during turbulent times as<br />
‘extremely resilient,’ given the ongoing<br />
economic uncertainty, D&B believes<br />
it is imperative for more businesses<br />
to develop a higher level of resilience<br />
to remain competitive and position<br />
themselves for growth and innovation.<br />
“It’s concerning to see that 85 percent<br />
of businesses currently do not use data<br />
to understand disruption<br />
in their ecosystem,” a<br />
spokesperson said.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 8
NEWS ROUNDUP<br />
>NEWS<br />
IN BRIEF<br />
Customers dial back<br />
their credit card spending<br />
DEMAND for consumer finance was<br />
driven by ‘other’ consumer credit,<br />
including personal loans, as customers<br />
dialled back their credit card spending<br />
in the first quarter.<br />
Individuals borrowed an additional<br />
£1.4 bn in consumer credit in February,<br />
of which £0.8bn was through ‘other’<br />
forms of consumer credit (such as<br />
car dealership finance and personal<br />
loans). Credit card borrowing in<br />
February fell to £0.6bn from £1.1bn in<br />
January <strong>2023</strong>.<br />
Effective interest rates across<br />
interest-bearing credit cards, personal<br />
loans and interest-charging overdrafts<br />
all rose through the month reflecting<br />
this higher cost of borrowing.<br />
Andrew Fisher, Chief Growth Officer<br />
at Freedom Finance, one of the UK’s<br />
leading digital lending marketplaces,<br />
says that despite interest rates<br />
New UK version of GDPR<br />
to save British businesses<br />
THE Government has introduced a<br />
new Data Protection Bill aimed at<br />
reducing costs and burdens for British<br />
businesses and charities, removing<br />
barriers to international trade and<br />
cutting down on the number of<br />
repetitive data collection pop-ups<br />
online.<br />
Designed with input from business<br />
leaders and data experts, the Bill<br />
seeks to ensure data adequacy while<br />
moving away from the ‘one-size-fitsall’<br />
approach of the European Union’s<br />
General Data Protection Regulation<br />
(GDPR).<br />
The new bill, which is expected to<br />
save the UK economy over £4bn in<br />
the next decade, builds on the UK’s<br />
high standards for data protection and<br />
privacy. It seeks to create a simple,<br />
clear and business-friendly framework<br />
that will not be difficult or costly to<br />
implement, providing businesses with<br />
more flexibility about how they comply<br />
with the new data laws.<br />
Julian David, TechUK CEO, welcomed<br />
increasing across the consumer<br />
sector his firm is still seeing strong<br />
demand from customers for credit:<br />
“Over the past few months, there<br />
have been large fluctuations in<br />
demand for the various types of credit,<br />
in particular, credit card spending has<br />
been volatile.<br />
“Customers are still getting to<br />
grips with a radically different credit<br />
landscape to this time last year, and<br />
many will need to rethink how they<br />
finance home improvements, holidays<br />
and even day-to-day spending as lowrate<br />
mortgages and long interest-free<br />
periods on credit cards have all but<br />
disappeared. We have seen a wider<br />
range of customers than ever coming<br />
to our platform in recent months<br />
searching for both unsecured and<br />
secured credit options as they adapt to<br />
the new financial environment.<br />
the new package of reforms: “The<br />
changes announced will give<br />
companies greater legal confidence<br />
to conduct research, deliver basic<br />
business services and develop new<br />
technologies such as AI, while retaining<br />
levels of data protection in line with the<br />
highest global standards, including data<br />
adequacy with the EU.”<br />
In addition to reducing the number<br />
of consent pop-ups seen online and<br />
establishing a framework for the use of<br />
trusted and secure digital verification<br />
services, the Bill will increase fines for<br />
nuisance calls and texts to be either<br />
up to four percent of global turnover<br />
or £17.5m, whichever is greater, and<br />
will strengthen the Information<br />
Commissioner’s Office (ICO) through<br />
the creation of a statutory board with a<br />
chair and chief executive.<br />
The Government is also planning<br />
to establish a new international data<br />
transfer regime to allow the free flow<br />
of data between the UK and other<br />
countries.<br />
Finverity raises $5m<br />
equity funding as<br />
revenues grow 15x<br />
FINVERITY, the digital ecosystem<br />
for trade and supply chain finance,<br />
has raised US $5m in a heavily<br />
oversubscribed equity funding round<br />
from new and current investors.<br />
New investors include Londonbased<br />
fintech specialist Outward,<br />
Amsterdam-based Acrobator<br />
Ventures and US-based s16vc<br />
founders fund. The firm says that the<br />
funding round comes on the back of<br />
15x revenue growth in 2022 across<br />
the Middle East and Africa and the<br />
recent expansion to Eastern Europe.<br />
Arrow hits bullseye<br />
ARROW Global Group has reached<br />
hard cap of its flagship strategy<br />
Arrow Credit Opportunities II Fund<br />
at approximately €2.75bn including<br />
a General Partner commitment of<br />
€275m. ACO II received extensive<br />
investor demand from both<br />
new and existing partnerships,<br />
which significantly exceeded its<br />
fundraising target of €2.5bn to reach<br />
the Fund’s hard cap of €2.75bn. ACO<br />
II attracted almost unanimous re-up<br />
from ACO I investors and is said<br />
to have attracted significant new<br />
commitments from a diverse mix of<br />
global institutional investors from<br />
the US, Europe, Asia-Pacific, and<br />
Middle East.<br />
April worries<br />
WITH a typical household’s bills set<br />
to rise by nearly £1,300 a year from<br />
April, a study by Money Wellness, a<br />
wellbeing platform specialising in<br />
free debt advice and ongoing support,<br />
suggests that more than nine out<br />
of ten (91 percent) of British people<br />
are worried about covering these<br />
increases. Furthermore, only 59<br />
percent of the people Money Wellness<br />
spoke to said they have worked out<br />
how much more money they’d be<br />
paying and 60 percent of those said<br />
they were looking at shelling out at<br />
least another £100 a month. However,<br />
some 63 percent had already thought<br />
about how to cover rising costs, with<br />
over half planning to cut back on<br />
non-essential spending and 13 percent<br />
intending to work longer hours.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 9
DATA & INSIGHTS<br />
The Missing Piece<br />
How data completes the puzzle<br />
of business resilience<br />
AUTHOR – Edgar Randall<br />
THE Collins dictionary<br />
defines the term ‘resilient’<br />
as something that is strong<br />
and not easily damaged<br />
by being hit, stretched,<br />
or squeezed. The Oxford<br />
dictionary, however, describes it as being<br />
able to recover quickly after something<br />
unpleasant such as shock.<br />
For businesses, the definition of<br />
‘resilient’ can vary too. To some the word<br />
‘resilience’ means rebounding from<br />
shock. For others, it means adapting to<br />
unfavourable circumstances and moving<br />
forward. Regardless, for most it all boils<br />
down to survival, and survival isn’t easy<br />
in a turbulent economy and unstable<br />
geopolitical landscape.<br />
Protect, prepare and strengthen<br />
Rising inflation, continued monetary<br />
policy tightening, high interest rates,<br />
increased energy costs, supply chain<br />
disruption, the lingering effects of the<br />
pandemic and Brexit, as well as war<br />
and geopolitical instability, are having a<br />
simultaneous and substantial impact on<br />
the business environment.<br />
These threats are strongly felt by<br />
business leaders in <strong>2023</strong>. Dun &<br />
Bradstreet’s recent global report – which<br />
surveyed 3,396 business leaders across 18<br />
countries – unearthed that energy price<br />
increases are felt most strongly in Europe.<br />
The overall increases to the cost of doing<br />
business is expected to have an acute<br />
impact on more than a third (37 percent)<br />
of businesses too.<br />
Businesses are worried, and rightly<br />
so, but that’s why it’s never been more<br />
important to know who to trust, where<br />
risks are emerging and how to manage<br />
them. Having the right tools in your<br />
armoury to understand what’s happening<br />
around you, combined with the ability<br />
to respond quickly to fast-changing<br />
conditions, is what provides the strong<br />
foundations of resilience.<br />
For businesses, they should reimagine<br />
resilience as the business version of<br />
protein; the ingredient that protects and<br />
repairs, but also strengthens them to<br />
withstand the conditions that require<br />
endurance.<br />
However, our Data-Driven Resilience<br />
study makes it clear that businesses are<br />
struggling to protect, repair or strengthen<br />
themselves. Just over a quarter of leaders<br />
(27 percent) rate their business’ resilience<br />
during turbulent times as "extremely<br />
resilient.” So, it’s critical that a larger<br />
portion of businesses develop a higher<br />
level of resilience to remain sheltered<br />
from challenges, and agile to change, all<br />
while positioning themselves for growth<br />
and innovation.<br />
Using data to become resilient<br />
Promisingly, businesses are already using<br />
data to inform various decisions. When<br />
we asked business leaders about the<br />
current role of data in their organisations,<br />
the most common answer was ‘using data<br />
to increase revenue’ (37 percent).<br />
Elsewhere, 23 percent of global leaders<br />
cite that their business uses data to<br />
comply with regulations, while 17 percent<br />
leverage data to recognise potential<br />
malfeasance and fraud. These are still<br />
small segments of businesses strategically<br />
using data when we look at the sheer<br />
volume of threats.<br />
Despite this, these numbers don’t<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 10
❝<br />
Think of it as a puzzle, with all the pieces in front of you in a box.<br />
Businesses have all the pieces but cannot see the full picture. They are<br />
unable to see the completed puzzle and therefore do not fully understand<br />
their organisation inside and out. – Edgar Randall.<br />
❝<br />
reflect the number of leaders that want to<br />
use data more effectively and efficiently.<br />
More than three quarters (77 percent)<br />
of leaders globally agreed that data will<br />
be vital for navigating the turbulent<br />
times ahead and ensuring their business<br />
survives. A number which rose to 80<br />
percent for those in the UK.<br />
So, why are businesses struggling<br />
to make use of data in their fight for<br />
resilience?<br />
A missing puzzle piece<br />
To understand these challenges, we need<br />
to look at the root cause.<br />
From Dun & Bradstreet’s research, it<br />
seems that the collection and analysis<br />
of data and insight is where difficulties<br />
begin, with 80 percent of organisations<br />
currently struggling to manage the<br />
volume, variety and velocity of their data.<br />
This is reinforced when we consider<br />
that an astonishing 85 percent of<br />
business leaders state they currently do<br />
not use data to understand disruption in<br />
their ecosystem, which means only 15<br />
percent of businesses are using a form of<br />
insight to remain competitive by building<br />
the strong foundations to monitor and<br />
pre-empt risk or spot opportunities.<br />
Add to the mix that 32 percent of<br />
leaders reported finding it challenging to<br />
realise the full potential of their data; it’s<br />
clear businesses need more guidance.<br />
Think of it as a puzzle, with all the<br />
pieces in front of you in a box. Businesses<br />
have all the pieces but cannot see the<br />
full picture. They are unable to see the<br />
completed puzzle and therefore do not<br />
fully understand their organisation<br />
inside and out.<br />
However, piecing this together is<br />
fundamental to gaining this insight<br />
at every level – from the supply chain<br />
to customer communication, sales to<br />
compliance.<br />
An impossible jigsaw<br />
At Dun & Bradstreet we’re already noting<br />
significant impacts that the economic<br />
downturn is having on businesses. For<br />
example, in 2022 the number of UK<br />
business insolvencies reached peak<br />
levels. Similarly, Government data shows<br />
that more companies suffered insolvency<br />
in 2022 in England and Wales than any<br />
time since 2009.<br />
At a time when instability and failure is<br />
rife, the UK economy will not be able to<br />
sustain itself when just a small proportion<br />
of organisations truly understand both<br />
the challenges and opportunities at play.<br />
Thankfully there’s confidence in the<br />
role data plays and can play. Businesses<br />
recognise the pivotal role that data and<br />
the insights it provides will play in the<br />
future success of their organisations.<br />
Data is highlighted as vital in helping<br />
business leaders’ organisations to<br />
identify new customers (79 percent) and<br />
the same amount agree that it’s essential<br />
for financial planning.<br />
But data isn’t the simple extraction<br />
that it could perhaps be. Now imagine<br />
the jigsaw again, but all the pieces aren’t<br />
just in one box. They’ve been misplaced,<br />
with pieces placed in other jigsaw boxes.<br />
Completing a puzzle where you don’t<br />
even know where the pieces are located<br />
could be a near-on impossible task. The<br />
same applies to making decisions when<br />
you can’t locate your data.<br />
Businesses are facing that too.<br />
And compounding this data problem<br />
somewhat more is that data management<br />
within organisations is becoming<br />
increasingly siloed – with a rise in the<br />
complexities when sharing information<br />
between teams, departments and<br />
regions. Key parts of information are<br />
stuck in other parts of the business.<br />
How to better use data for resilience<br />
So, the hurdle isn’t about needing more<br />
leaders to see data as a valuable asset,<br />
rather it’s about the business’ ability to<br />
unlock the true value of its data.<br />
Yes, businesses can take near-term<br />
measures to address immediate obstacles<br />
and maintain short-term resilience,<br />
but long-term success requires a more<br />
strategic approach that prioritises<br />
business resilience.<br />
Utilising data to scenario plan and<br />
model outcomes is an essential aspect<br />
of a successful strategy that enables<br />
businesses to remain agile and overcome<br />
future disruptions. With the aid of<br />
trend analysis and predictive analytics,<br />
companies can proactively identify<br />
potential risks and growth opportunities.<br />
Such information can then be harnessed<br />
to formulate data-driven strategies,<br />
which can mitigate risks and capitalise<br />
on opportunities. For instance, by<br />
establishing a flexible supply chain<br />
and investing in digital transformation,<br />
businesses can respond rapidly to<br />
unforeseen events, such as pandemics,<br />
natural disasters, or geopolitical risks.<br />
By leveraging data insights to plan for<br />
a range of scenarios, businesses can be<br />
better prepared to overcome the next<br />
global disruption, as well as any future<br />
challenges that may occur. Data is an<br />
essential tool for unlocking valuable<br />
insight to increase business resilience to<br />
weather the next disruption, and the one<br />
after that.<br />
Edgar Randall is Managing Director<br />
at Dun & Bradstreet UK&I.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 11
COMMERCIAL AND CONSUMER LENDING<br />
STANDING TALL<br />
Banks and finance providers stand ready<br />
to support businesses and individuals.<br />
AUTHOR – Lee Hopley<br />
NAVIGATING the turbulent times<br />
of the past year has been an incredible<br />
challenge for the whole<br />
country. Spiraling inflation<br />
triggered by burgeoning food<br />
and energy prices has sparked<br />
11 successive interest rate rises over the past<br />
12 months. These pressures have weighed on<br />
households and businesses but I am proud that<br />
as an industry, banks and financial services providers<br />
have continued to support personal and<br />
business customers during these difficult times.<br />
Lifeline for borrowers<br />
The rising cost-of-living has hit most<br />
households’ wallets one way or another, while<br />
increasing interest rates have bumped up many<br />
households’ mortgage payments. Warning lights<br />
on the personal finance dashboard started<br />
flashing this time last year. An energy price<br />
shock, risks to food prices and supply, together<br />
with the inevitable response that would come<br />
from central banks put cost-of-living concerns<br />
in the spotlight.<br />
With the UK and global economic recovery<br />
after COVID-19 just taking root, lenders were<br />
attuned to the fragile confidence across business<br />
and consumers. For the latter, the industry was<br />
acutely aware of the asymmetric impact of the<br />
pandemic and what was coming down the track<br />
as inflation rates not seen for four decades were<br />
going to erode any financial headroom for many<br />
households.<br />
At UK Finance working with our members, we<br />
saw a rapid response with lenders putting more<br />
resources into working closely with customers<br />
around their financial worries, increasing<br />
outreach to support financial management<br />
and engage with customers before payment<br />
difficulties crystallised. Given the faster than<br />
expected rise in interest rates, there was a focus<br />
on those re-mortgaging and facing a likely<br />
interest rate shock.<br />
In the last 12 months, lenders have proactively<br />
contacted mortgage customers a combined total<br />
of 16.5m times to offer support, and this figure<br />
is expected to increase to 20.5m contacts over<br />
the next 12 months. In addition, over the last<br />
year two million borrowers have been provided<br />
with financial difficulty assistance, including<br />
budgeting support, access to debt advice and<br />
breathing space. This support helps those who<br />
are worried about their finances or are likely to<br />
struggle to meet payments.<br />
For anyone struggling to pay their mortgage,<br />
credit card or personal loan, we encourage<br />
❝<br />
The rising costof-living<br />
has hit<br />
most households’<br />
wallets one way<br />
or another, while<br />
increasing interest<br />
rates have bumped<br />
up many households’<br />
mortgage payments.<br />
Warning lights on<br />
the personal finance<br />
dashboard started<br />
flashing this time<br />
last year.<br />
❝<br />
customers to reach out to their lender to let<br />
them know - tailored support is available to<br />
help.<br />
It's important to continue to convey the<br />
message to consumers that just getting in<br />
contact with your lender to find out the options<br />
will not impact credit scores. Depending on a<br />
customer’s circumstances, options to help with<br />
mortgage payments could include switching<br />
to interest-only temporarily, a mortgage term<br />
extension, or a payment concession. For credit<br />
cards and personal loans, options could include<br />
making reduced payments for a short period of<br />
time or agreeing an affordable payment plan<br />
over a longer period of time.<br />
Supporting businesses<br />
The rising cost-of-living and economic<br />
uncertainty has weighed significantly on<br />
businesses. That’s why we have partnered with<br />
major business groups and sector-specialist<br />
trade bodies in supporting businesses who face<br />
barriers to investment, international trade and<br />
resources. With small firms facing the perfect<br />
storm of rising energy costs, pressure on supply<br />
chains and the return of business rates, these<br />
linkages will be crucial in ensuring that the<br />
industry is on hand to help SMEs access the<br />
finance and support they need.<br />
Times of economic turbulence can provide<br />
opportunities as well as challenges. Innovation<br />
and investment in new business models<br />
or technology can also be vital in helping<br />
businesses retain and grow their customer<br />
base, as well as embedding longer term gains in<br />
productivity and efficiency. While the attention<br />
has been on managing the challenges, lenders<br />
have also been supporting businesses with an<br />
eye on growth.<br />
As with personal banking customers, support<br />
is always available for businesses struggling to<br />
make their payments. We continue to encourage<br />
any business worried about their finances to<br />
have an early conversation with their finance<br />
providers.<br />
Access to cash<br />
While the COVID-19 pandemic accelerated<br />
the ongoing trend for consumers to turn from<br />
cash to digital payments, we appreciate that<br />
many still rely on cash and that technology<br />
is not for everyone. Analysis also points to an<br />
increased appetite to use cash during the costof-living<br />
challenge to help budget income.<br />
Access to cash remains a key priority for us.<br />
So, in light of this, we worked alongside the<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 12
❝<br />
Even if some of the headline<br />
indicators around household or<br />
business stress may look benign, there<br />
are a whole spectrum of individual<br />
circumstances underneath the<br />
surface. Moreover, risks in the UK<br />
and globally are ever present.<br />
❝<br />
Cash Action Group (CAG) and the Delivery<br />
Authority which both consist of ten of<br />
our member firms, consumer groups and<br />
link to progress work against industry<br />
commitments to preserve access to cash.<br />
Over the past year, the number of new<br />
banking hubs announced has reached<br />
38 and counting. These hubs allow<br />
customers from a wide range of banks<br />
to access key banking facilities and<br />
trusted advice in person within their own<br />
community.<br />
But that’s not to say there aren’t many<br />
challenges, and the current economic<br />
troubles fuel the number of customers<br />
falling victim to domestic, financial and<br />
economic abuse. UK Finance continues<br />
to champion adoption of the Financial<br />
Abuse Code, co-written with Surviving<br />
Economic Abuse. The Code currently<br />
has 40 signatories and counting, who are<br />
committed to help protect their customers.<br />
Economic crime<br />
Fraud has a devastating impact on victims<br />
and it is the most prevalent crime in<br />
England and Wales, accounting for 41<br />
percent of all crimes in the year to June<br />
2022. Fraudsters will always capitalise<br />
on people’s financial insecurities, and<br />
the cost-of-living challenge proves no<br />
different. However, the banking and<br />
finance industry prevented £583.9m of<br />
unauthorised fraud from getting into the<br />
hands of criminals in the first half of 2022.<br />
Our Dedicated Card & Payment Crime<br />
Unit (DCPCU), an operational police<br />
unit funded though members, saved<br />
around £38m of fraud and seized £1.9m<br />
of assets last year. In the same period,<br />
they disrupted 19 organised crime groups,<br />
arrested over 140 suspected criminals and<br />
secured 44 convictions.<br />
Meanwhile, our Take Five to Stop<br />
Fraud campaign is a national campaign<br />
that offers straightforward advice to<br />
help everyone protect themselves from<br />
fraud. The campaign aims to encourage<br />
customers to stop and think whenever they<br />
are asked for their money or information.<br />
The rising cost-of-living is challenging<br />
to many across the country. Whether a<br />
business or personal banking customer,<br />
we encourage everyone to stay aware of<br />
scams.<br />
The economic news of late has been<br />
slightly better than feared and forecasters<br />
are placing a lower probability on the<br />
chance of recession this year. The industry<br />
is fully aware that we are not out of the<br />
woods. While the UK may dodge recession<br />
in the technical sense, it will still feel like<br />
one for many. Even if some of the headline<br />
indicators around household or business<br />
stress may look benign, there are a whole<br />
spectrum of individual circumstances<br />
underneath the surface. Moreover, risks<br />
in the UK and globally are ever present.<br />
The efforts of the industry to engage<br />
and support customers during these<br />
challenging times will continue.<br />
Lee Hopley, UK Finance’s Director<br />
of Economic Insights.<br />
Additional reporting by Sean Feast and<br />
Roshika Perera.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 13 continues on page 14 >
COMMERCIAL LENDING<br />
POWERED<br />
TO SUCCEED<br />
WHEN a husband and<br />
wife team were looking<br />
to expand Kielder,<br />
their specialist automotive<br />
power tools<br />
business, they fully<br />
understood the critical importance of cashflow.<br />
Paying suppliers and staff while waiting<br />
to be paid themselves by some of the major<br />
resellers was the challenge; the solution<br />
was a tailored invoice ginance facility from<br />
Optimum Finance.<br />
Invoice finance is a method of cashflow<br />
funding that uses receivables (invoices) as<br />
the principal asset against which money can<br />
be raised. Optimum Finance pays Kielder<br />
an agreed percentage of the invoice value<br />
as soon as it is submitted, driving access to<br />
liquidity at the point of invoice as opposed to<br />
needing to wait.<br />
Mo Han, co-founder and Head of<br />
Purchasing at Kielder, says the benefit of<br />
Invoice Finance is that it releases cash into<br />
the business almost immediately, regardless<br />
of how long it takes a customer to finally pay:<br />
“Optimum advances 85 percent of the invoice<br />
value and that helps us not only pay our<br />
own people and our key suppliers, but also<br />
enables us to offer discounts on bulk orders<br />
to our key customers.<br />
“With some of our customers requiring<br />
60-day payment terms, it enables us<br />
to bridge the cashflow gap, and do so<br />
with what is effectively our own money.<br />
What’s especially good about it is that as we<br />
grow, so the amount of cash available to us<br />
also grows, and this will help us expand.”<br />
High precision needs<br />
The business was founded seven years ago<br />
to deliver very high-precision tools to the<br />
automotive market. Mo’s husband, Steve, a<br />
former Rally driver, saw a gap in the market<br />
that he felt was not being adequately served.<br />
He thus set to work designing his own range<br />
of power tools and associated products for<br />
professional mechanics, working closely with<br />
his Chinese partners. The result is a range<br />
of tools sold through specialist retailers and<br />
direct to the motorsport industry.<br />
Early success and a good reception in<br />
the market has been hampered by Brexit,<br />
COVID-19, and the conflict in Ukraine. An<br />
international client base, however, enables<br />
Kielder to diversify risk, and the business<br />
manages Sterling, US Dollar and Euro<br />
accounts, adding a layer of resilience to its<br />
trading arrangements.<br />
Mo was already familiar with invoice<br />
finance, having previously used a similar<br />
facility provided by her main banking<br />
partner. A change in funding policy,<br />
however, obliged her to seek alternatives:<br />
“It was a concentration issue,” she<br />
explains. “Unfortunately, they reduced our<br />
accessibility to cash. Lack of cash restricted<br />
our growth and impacted our margin and<br />
profitability. It wasn’t sustainable and so we<br />
looked elsewhere.”<br />
Among the providers Mo looked at was<br />
Optimum Finance: “Other providers were<br />
quite aggressive in their pricing but there<br />
were hidden costs. Optimum Finance was<br />
transparent in its pricing and offered good<br />
value. We also managed to forge a strong<br />
working relationship from the beginning.<br />
Customer service is of the highest level and<br />
our relationship manager, Jenn Bennett, is<br />
always quick to respond.”<br />
Now the ambition is to further grow the<br />
business and increase market share: “We<br />
want to be known as the ‘go to’ in this space,”<br />
Mo concludes, “and build a brand known for<br />
the innovation, quality and design of its tools.<br />
“Having Invoice Finance to support our<br />
cashflow helps me sleep at night.”<br />
❝<br />
“With some of our<br />
customers requiring<br />
60-day payment terms, it<br />
enables us to bridge the<br />
cashflow gap, and do so<br />
with what is effectively<br />
our own money.<br />
What’s especially good<br />
about it is that as we<br />
grow, so the amount of<br />
cash available to us also<br />
grows, and this will help<br />
us expand.”<br />
❝<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 14
ESTABLISHED IN 2011, Piglet’s Pantry is<br />
an award-winning food producer based<br />
in Worthing, West Sussex. The business<br />
supplies hand-filled pies, handmade<br />
sausage rolls, cakes and biscuits to venues<br />
up and down the UK, including football,<br />
rugby, cricket and horseracing venues.<br />
Employing 70 people the company has<br />
seen its business triple over the last seven<br />
years due to the high quality of its Britishmade<br />
products.<br />
During the pandemic, as venues<br />
within traditional markets closed across<br />
the country, Piglet’s Pantry saw an<br />
opportunity to embark on a brand new<br />
‘direct to consumer’ offering - afternoon<br />
tea boxes. The result of this exciting new<br />
initiative is that they have succeeded in<br />
creating an additional business that is<br />
worth £3m in year one alone.<br />
Since they started delivering their handcrafted<br />
cakes and bakes to doorsteps<br />
across the country, the response has been<br />
extraordinary, attracting numerous highprofile<br />
celebrity endorsements, including<br />
the cast of Made in Chelsea.<br />
New location<br />
Jo Hunter, Chief Food Lover at Piglet’s<br />
Pantry, said that they were originally<br />
thinking of putting in a mezzanine to<br />
accommodate the new B2C business but<br />
soon recognised that the level of demand<br />
would mean that their existing premises<br />
wouldn’t be big enough, so they started<br />
Food for thought<br />
looking actively for a new location for the<br />
business, and a responsive and supportive<br />
finance partner. She chose Investec: “In<br />
addition to a dynamic working capital<br />
facility that grows with our sales, they<br />
provided us with a term loan to enable<br />
us to take on the move to substantial new<br />
premises, together with flexible leasing<br />
solutions that have allowed us to acquire<br />
the very latest equipment and vans,” she<br />
explains.<br />
“With Investec, we have immediate<br />
visibility of funds and can access them far<br />
more quickly than ever before. Scheduling<br />
updates couldn’t be easier, and we can<br />
Plastic fantastic<br />
view our cash availability anywhere in<br />
the world. Great technology is one thing,<br />
great backup is another. The staff are<br />
amazing, incredibly professional, and<br />
swift to support us with quick decisions<br />
when we need them.”<br />
Such has been the success of its new B2C<br />
business that with Investec’s support, it<br />
has been able to move its entire operation<br />
to a 28,000sq ft. building, with the capacity<br />
to grow even further: “With sports venues<br />
back in earnest and the hospitality market<br />
fully opening up once again, the future for<br />
Piglet’s Pantry is very exciting indeed,” Jo<br />
adds.<br />
“We have seen the number of client<br />
sites grow from 70 to 160 and our turnover<br />
double in some venues. Consequently,<br />
our headcount has risen from 25 to<br />
70, creating an entire infrastructure<br />
comprising HR and marketing functions,<br />
heads of savoury and heads of pastry,<br />
as well as technical and quality control<br />
departments. People love our products<br />
and through word of mouth, we are fast<br />
becoming the provider of choice for<br />
sweet and savoury baked goods for both<br />
hospitality venues and consumers across<br />
the UK. Our brand awareness is now<br />
through the roof and our distinctive pink<br />
boxes are being recognised everywhere<br />
we go.<br />
“All of this has all been possible thanks<br />
to the flexible funding we have secured<br />
from Investec.”<br />
A sustainable plastics manufacturer is<br />
set to continue its impressive growth<br />
trajectory by investing in new machinery<br />
and production lines in order to increase<br />
output.<br />
Capital Valley Plastics is an awardwinning<br />
business set-up by Michael<br />
Hughes as a small recycling facility in<br />
1987. As the business grew over the<br />
years, it branched out by using recycled<br />
materials to manufacture products for the<br />
construction industry.<br />
The business’s products include dampproof<br />
membranes and damp-proof course,<br />
which are designed to protect properties.<br />
Capital Valley Plastics products are made<br />
from 100 percent recycled materials,<br />
where building regulations allow.<br />
The business’s past and future growth<br />
is supported by, independent business<br />
funder, Bibby Financial Services that<br />
provide a £2.5m invoice discounting<br />
facility. This enables the business to<br />
release cash from unpaid invoices,<br />
providing working capital to allow the<br />
Capital Valley Plastics to concentrate on<br />
future growth.<br />
Sustainability focus<br />
Roger Philips, Managing Director<br />
at Capital Valley Plastics, says that<br />
sustainability remains very much at the<br />
heart of his business: “We manufacture<br />
9,000 tons worth of products each year, but<br />
use recycled plastics wherever building<br />
regulations allow. As a result, most of the<br />
products we sell are 100 percent recycled.<br />
“Our efforts to proactively and<br />
relentlessly improve our technology<br />
behind every aspect of the business,<br />
mean that we are able to provide cuttingedge<br />
products with a sophisticated and<br />
reputable service. Increasing demand<br />
from construction firms, coupled with our<br />
increased product range and investment<br />
in new production lines, has helped us go<br />
from strength to strength in the market<br />
place.”<br />
Roger says that the funding partnership<br />
with Bibby Financial Services has been<br />
a key enabler of growth: “We’ve been<br />
working with BFS for seven years, starting<br />
with a smaller £1m facility. BFS has been<br />
able to extend our funding over the years<br />
in line with the growth of the business,<br />
providing extra flexibility and giving us<br />
access to the cash we needed to continue<br />
to thrive.<br />
“BFS really got to understand our<br />
business and this is what sets it apart from<br />
other finance companies. Its tailored<br />
approach to funding is very much in<br />
keeping with our own philosophy as a<br />
business, making it the perfect business<br />
partner as we strive to grow the company<br />
further.”<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 15
INSOLVENCY<br />
Fighting Fraud<br />
How can credit managers protect themselves<br />
against COVID-19 fraud?<br />
AUTHOR – Giuseppe Parla<br />
THERE’S no doubt about it –<br />
COVID-19 fraud investigations are<br />
impacting businesses of all shapes<br />
and sizes across industry sectors.<br />
But what do credit management<br />
professionals need to know, and<br />
do they need to be more vigilant?<br />
Since HMRC first launched its investigation<br />
into COVID-19 fraud last year, many potential<br />
cases have come to light and about £1.2bn has<br />
been either successfully recovered or blocked<br />
by HMRC. However, this is just the tip of the<br />
iceberg. A House of Commons Committee report,<br />
published at the start of the year, confirmed<br />
the Government’s disappointment that HMRC<br />
is not being more ‘ambitious’ as it only expects<br />
to recover a quarter of the estimated £4.5bn<br />
lost as a result of fraud and error abuses of the<br />
COVID-19 support schemes. At the beginning<br />
of March <strong>2023</strong>, the FT reported the closure of<br />
HMRC’s COVID-19 fraud focused task force.<br />
For businesses, the prevalence of COVID-19<br />
fraud means there are significant financial<br />
risks to look out for when managing credit lines<br />
and overseeing payments from suppliers. For<br />
example, if a supplier starts missing payment<br />
deadlines, this could indicate that the business<br />
is facing cashflow difficulties and creditor<br />
debt could be mounting up. If the business<br />
subsequently enters an insolvency process,<br />
credit managers should be aware that if<br />
directors have obtained a Business Bounce Back<br />
Loan scheme (BBLs) or Coronavirus Business<br />
Interruption Loan scheme (CBILs), the bank or<br />
building society will likely offset the remaining<br />
amount owed against any funds held in the bank<br />
account.<br />
The Insolvency Service is playing its part<br />
in tackling COVID-19 fraud by prosecuting<br />
directors and recovering funds where possible.<br />
In particular, more staff have been recruited to<br />
the investigation and enforcement team to follow<br />
up allegations of COVID-19 fraud that come to<br />
light. These investigations have led to an increase<br />
in director disqualifications, which in<br />
turn helps to discourage fraudulent<br />
behaviour, thus minimising the risk<br />
of fraud and the associated financial<br />
losses. The number of disqualifications<br />
had been stable at between 1,200 and<br />
1,300 for the past seven years, but in<br />
the year ending 31 March 2022, more<br />
than 6,500 former directors were<br />
facing active disqualification cases.<br />
Insolvency Practitioners also have<br />
a role to play. When a business<br />
❝<br />
Credit managers<br />
should aim to learn<br />
lessons from the<br />
current situation<br />
and take steps to<br />
strengthen credit<br />
line checks and<br />
measures. For<br />
example, they should<br />
look out for warning<br />
signs such as a<br />
customer who has<br />
been avoiding recent<br />
communications.<br />
❝<br />
becomes formally insolvent, the appointed<br />
insolvency Practitioner is tasked with reporting<br />
on the directors conduct and if this highlights<br />
civil recoveries or fraudulent activity involving<br />
one of the COVID-19 support schemes, the<br />
Insolvency Service will generally be keen to take<br />
matters further. When reporting, insolvency<br />
Practitioners will typically look for specific<br />
evidence, such as CBILs and BBLs being used<br />
to pay off personal debts or to buy assets for<br />
personal use or furlough claims being made<br />
when staff were still working. Decisions to<br />
pursue the recovery of misappropriated funds<br />
will depend on the likelihood of success and will<br />
be a commercial decision for those pursuing<br />
the action. Criminal prosecutions, as evidenced<br />
by the recent prison sentences handed down,<br />
serve as a timely reminder to directors who<br />
think they may have got away with it, especially<br />
after putting their company into an insolvency<br />
process.<br />
Credit managers should aim to learn lessons<br />
from the current situation and take steps to<br />
strengthen credit line checks and measures. For<br />
example, they should look out for warning signs<br />
such as a customer who has been avoiding recent<br />
communications. They should also take extra<br />
care when agreeing to supply goods or services<br />
on credit terms that have been previously agreed<br />
when the relationship was stronger.<br />
Keeping communication lines open with<br />
key suppliers remains vital and, if appropriate,<br />
payment terms should be reviewed, discussed<br />
and renegotiated. However, if communications<br />
with a specific supplier breakdown altogether<br />
and reasonable efforts have been made to<br />
contact the business, then credit managers may<br />
need to escalate matters. They could issue a letter<br />
before action, which could help negotiations<br />
where funds are available, but if this doesn’t bear<br />
fruit, then further legal action will be required<br />
and the customer relationship is likely to be<br />
over. Detailed records of attempts to contact the<br />
business should be kept as evidence and may<br />
be useful information for an insolvency<br />
Practitioner where allegations about<br />
COVID-19 fraud arise.<br />
For more information on the areas<br />
covered within this article, please<br />
contact the business recovery team at<br />
Menzies: www.menzies.co.uk/creditorservices<br />
Giuseppe Parla is a Director and<br />
Licensed Insolvency Practitioner at<br />
Menzies LLP.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 16
❝<br />
The House of Commons Committee report, confirmed the<br />
Government’s disappointment that HMRC is not being more ‘ambitious’<br />
as it only expects to recover a quarter of the estimated £4.5bn lost as a result<br />
of fraud and error abuses of the COVID-19 support schemes.<br />
❝<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 17
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Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 18
INSOLVENCY<br />
Model Laws<br />
Recognition and enforcement of<br />
insolvency-related judgments.<br />
AUTHOR – Jamie Leader<br />
THE recovery of debt can be hard<br />
enough; never more so in times<br />
of economic strife and where<br />
the debtor is overseas. The risk<br />
that you might have to return<br />
the funds paid to you if your<br />
counterparty becomes insolvent after payment<br />
is even harder.<br />
For 25 years, ever since the secretariat of<br />
UNCITRAL, the United Nations Commission<br />
on International Trade Law, published the<br />
UNCITRAL Model Law on Cross-Border<br />
Insolvency in May 1997, there have been model<br />
laws in place to act as legal frameworks that<br />
states can adopt to improve legal cooperation<br />
with others.<br />
In the field of restructuring and insolvency,<br />
48 states have adopted the Model Law on Cross<br />
Border-Insolvency (MLCBI) which provides for<br />
the recognition of insolvency and restructuring<br />
proceedings and associated relief. The MLCBI<br />
was implemented by the UK in 2006 by the Cross<br />
Border Insolvency Regulations 2006 (CBIR 2006)<br />
and also forms the basis of the structure of the<br />
EU Insolvency Regulation, albeit in modified<br />
form.<br />
In July 2022, the Insolvency Service published<br />
Implementation of two UNCITRAL Model Laws<br />
on Insolvency Consultation. This proposed<br />
the implementation of two new model laws<br />
produced by UNCITRAL.<br />
The two model laws now under review by the<br />
Insolvency Service complement and expand<br />
the MLCBI. The first is the Model Law on<br />
Recognition and Enforcement of Insolvency-<br />
Related Judgments, which concerns crossborder<br />
recognition of judgments associated with<br />
insolvency proceedings – MLIJ. The second is<br />
the Model Law on Enterprise Group Insolvency,<br />
which is intended to facilitate coordination<br />
between insolvency proceedings of different<br />
entities within corporate groups.<br />
We’re only concerned here with the proposals<br />
in relation to the MLIJ.<br />
The MLIJ defined<br />
The MLCBI has been widely adopted across<br />
the world and has significantly improved<br />
global cooperation in relation to cross-border<br />
insolvencies. However, although it provides<br />
for the courts of adopting states to provide<br />
recognition and assistance to foreign insolvency<br />
officeholders in relation to a range of matters<br />
relating to insolvency proceedings, its scope is<br />
limited as regards legal proceedings that are<br />
closely related to the insolvency proceedings.<br />
❝<br />
The proposed<br />
implementation of<br />
the MLIJ in the UK<br />
is not a matter that<br />
should be of interest<br />
only to insolvency<br />
professionals. How<br />
and whether the<br />
model law is adopted<br />
is likely to affect<br />
any party in the<br />
UK that contracts<br />
with counterparties<br />
abroad.<br />
❝<br />
By way of example, proceedings might include<br />
efforts to resolve disputes about the ownership<br />
or sale of assets in the estate or claims to recover<br />
assets that were transferred away before the<br />
opening of the insolvency proceedings. As a<br />
result, an insolvency officeholder may obtain<br />
a judgment in the state where the insolvency<br />
proceedings are ongoing but be unable to<br />
enforce it abroad.<br />
The MLIJ is intended to address this gap in the<br />
MLCBI, by providing an additional framework<br />
that states can adopt in order to recognise<br />
and enforce such foreign insolvency-related<br />
judgments in a predictable way.<br />
The proposal matters<br />
The proposed implementation of the MLIJ<br />
in the UK is not a matter that should be of<br />
interest only to insolvency professionals. How<br />
and whether the model law is adopted is likely<br />
to affect any party in the UK that contracts<br />
with counterparties abroad, or which chooses<br />
English law and jurisdiction to govern such<br />
contracts. That is because it will determine<br />
the degree of risk faced by such a party that if<br />
its counterparty becomes insolvent in another<br />
country insolvency judgments could be made<br />
against it there and enforced in the UK.<br />
A hypothetical example may help the<br />
understanding of how adoption of the MLIJ<br />
could change the risk for companies dealing<br />
with foreign debtors.<br />
An English company, Sellco, enters into a<br />
contract with Buyco — an unrelated company<br />
incorporated in Ruritania — for the sale of<br />
machinery by Sellco to Buyco. The contract is<br />
governed by English law and provides for the<br />
exclusive jurisdiction of the English courts.<br />
Buyco purchases the machinery and pays for<br />
it in accordance with the contractual terms,<br />
but then enters insolvency proceedings under<br />
Ruritanian law.<br />
Under the Ruritanian insolvency code, any<br />
payments made by the insolvent company in<br />
the two months before the insolvency filing are<br />
deemed to be preferential and therefore void,<br />
so that the amounts paid have to be returned<br />
to the insolvent estate (with the relevant party<br />
having an unsecured claim in the insolvency<br />
proceedings instead).<br />
The Ruritanian liquidator of Buyco therefore<br />
demands repayment from Sellco of £1.2m that<br />
was paid by Buyco in the two months preceding<br />
the insolvency filing.<br />
Under English law as it currently stands,<br />
Sellco could be confident of its ability to ignore<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 19<br />
continues on page 20 >
INSOLVENCY<br />
AUTHOR – Jamie Leader<br />
the liquidator's demand and, as a result, it could<br />
have been more confident about contracting<br />
with a Ruritanian company.<br />
This is because, although the liquidator<br />
might seek to have the Ruritanian insolvency<br />
proceedings recognised in the UK under the<br />
CBIR 2006, that would not allow for the payments<br />
to be set aside on the basis of Ruritanian law or<br />
empower the English court to recognise and<br />
enforce a judgment of the Ruritanian courts to<br />
set them aside. Such recognition could provide<br />
a gateway for the liquidator to challenge the<br />
payments to Sellco under English law, but<br />
English law has no equivalent to the Ruritanian<br />
rule and, on the facts identified above, it seems<br />
unlikely that any such challenge would succeed:<br />
The payments would only be likely to be set<br />
aside as preferences, under s.239 Insolvency<br />
Act 1986, if Buyco had made them because of a<br />
desire to prefer Sellco, and there is no reason to<br />
infer such a desire.<br />
Finally, if the liquidator had obtained a<br />
judgment from the Ruritanian court, he would<br />
not be able to enforce it in England under<br />
common law. The common law rule – set<br />
out in the leading case of Rubin and another<br />
v Eurofinance SA and others [2012] UKSC 46 –<br />
provides that a foreign monetary insolvencyrelated<br />
judgment can be recognised only if there<br />
is an exclusive jurisdiction clause in favour of<br />
the originating state; or the defendant is present<br />
in, or has submitted to, the overseas jurisdiction<br />
where the judgment was issued. As Sellco has<br />
neither agreed or submitted to the jurisdiction<br />
of the Ruritanian courts, and is not in Ruritania,<br />
the judgment should not be enforceable at<br />
common law.<br />
The effect of MLIJ<br />
The Insolvency Service's proposal is that<br />
the MLIJ should be brought into English law<br />
through the adoption of what is called ‘Article X’:<br />
one of the options identified in the MLIJ itself,<br />
which falls short of adoption of the model law<br />
in full.<br />
Article X states that: ‘Notwithstanding any<br />
prior interpretation to the contrary, the relief<br />
available under [the CBIR] includes recognition<br />
and enforcement of a judgment.’<br />
The essential effect of adopting Article X<br />
would therefore be that the English court would<br />
be empowered to recognise foreign insolvency<br />
judgments under the CBIR 2006; it would<br />
overturn the decision in Rubin v. Eurofinance to<br />
that extent.<br />
As will be clear from its wording, Article X<br />
simply provides that insolvency judgments can<br />
be recognised and enforced under the CBIR.<br />
It does not include any guidance as regards<br />
the circumstances in which recognition and<br />
enforcement should (or should not) be granted.<br />
In order to address this point, the Insolvency<br />
Service has said that it will introduce a new<br />
regulation providing ‘a list of discretionary,<br />
❝<br />
What is particularly<br />
striking is that there<br />
is no reference in the<br />
consultation to any<br />
choice of law rules,<br />
or safe harbours.<br />
illustrative, and non-exhaustive grounds of<br />
refusal, that courts can rely on when deciding<br />
whether or not to recognise and enforce a<br />
foreign judgment.’<br />
It is said that these will be based on article 14<br />
of the MLIJ, which sets out specific grounds for<br />
refusal of the otherwise mandatory recognition<br />
of insolvency-related judgments that the<br />
full MLIJ requires (including, for example, a<br />
judgment being obtained by fraud, creditors’<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 20
ights not being adequately protected,<br />
and a defendant not having sufficient<br />
time to arrange their defence).<br />
The proposed list would undoubtedly<br />
provide some further clarity, but the<br />
fact that the grounds listed would<br />
be ‘discretionary, illustrative, and<br />
non-exhaustive' would seem to leave<br />
significant uncertainty as regards how<br />
the courts may approach applications for<br />
recognition – and, of course, we do not yet<br />
know what grounds the list will contain<br />
What is particularly striking is that<br />
there is no reference in the consultation<br />
to any choice of law rules, or safe<br />
harbours, that would protect contracting<br />
parties who have expressly chosen<br />
English law and jurisdiction and have<br />
not willingly submitted themselves to the<br />
jurisdiction of any state which may open<br />
insolvency proceedings in relation to<br />
their counterparty.<br />
Returning to the scenario above, the<br />
implementation of the MLIJ through<br />
Article X could provide a means for the<br />
liquidator of Buyco to obtain a judgment<br />
against Sellco from the Ruritanian court<br />
and seek to enforce that judgment in<br />
the UK under the CBIR 2006. Whether<br />
the judgment would be enforced would<br />
depend on the court's discretion and<br />
the grounds identified by the proposed<br />
regulations. However, on the face of the<br />
proposal as set out in the consultation,<br />
it does not seem that the fact that Sellco<br />
and Buyco expressly chose English law<br />
and jurisdiction will provide Sellco with<br />
a defence.<br />
Will the MLIJ be implemented?<br />
The Insolvency Service consultation<br />
closed at the end of September 2022.<br />
Although responses to the consultation<br />
have not been published, anecdotal<br />
reports suggest that the Insolvency<br />
Service received a number of responses<br />
expressing strong views about the<br />
proposal but without a clear consensus. It<br />
appears that some respondents supported<br />
the overarching aim of streamlining<br />
international cooperation, and the UK<br />
being seen to be in the vanguard of such<br />
initiatives, but there were expressions of<br />
concern about the uncertainty that Article<br />
X could create for contracting parties,<br />
at least without clear rules on choice of<br />
law and how the courts will decide on<br />
recognition. That is likely, for many, to be<br />
the primary concern.<br />
Furthermore, although the UK<br />
Government may wish to demonstrate<br />
leadership in adopting the MLIJ, and<br />
thus to burnish the reputation of the UK<br />
as a state that is open and cooperative in<br />
restructuring and insolvency matters, the<br />
proposed changes would seem to deliver<br />
few direct benefits to UK companies<br />
or to the UK as a jurisdiction of choice<br />
for others. Indeed, it could even create<br />
incentives for contracting parties to<br />
structure their contracts outside the UK.<br />
In summary<br />
As matters stand, therefore, it remains<br />
unclear if the proposal will be adopted,<br />
whether in the form of Article X or in<br />
some other way, and — if so — when the<br />
changes will come into force. We await<br />
the Insolvency Service's decision with<br />
interest.<br />
Jamie Leader is a Partner and Head of<br />
Insolvency and Restructuring Disputes,<br />
Enyo Law LLP.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 21
Rising stars<br />
The first in a new series which puts<br />
the spotlight on rising stars who are<br />
demonstrating outstanding professionalism<br />
and commitment to positive change within<br />
the credit industry.<br />
The personal touch<br />
How a new Credit Manager at<br />
Clarins UK shaped her management<br />
style and her team to bring about<br />
significant change.<br />
AUTHOR – Melanie York<br />
Terri-Louise Taylor<br />
MCI<strong>CM</strong>(Grad)<br />
TERRI-Louise Taylor MCI<strong>CM</strong><br />
(Grad) joined luxury skincare<br />
and cosmetics brand Clarins<br />
UK two years ago and<br />
undertook one of the most<br />
challenging projects of her<br />
17-year career; leading the collections team<br />
to achieve its CI<strong>CM</strong>Q accreditation for the<br />
first time. It was a daunting prospect for<br />
someone in their first management role.<br />
Wanting to get real world experience,<br />
Terri entered the credit world when she<br />
was just 16 years old. In the following<br />
years, she worked in various industries,<br />
including five years as a standalone credit<br />
controller. All the while she was studying<br />
for her CI<strong>CM</strong> qualifications. By the time<br />
she joined Clarins she had passed the Level<br />
5 which she says made all the difference to<br />
her career.<br />
“I just don't think I would have had the<br />
confidence to be a credit manager, having<br />
not gone through my Level 5 qualifications.<br />
Learning how to manage a team, how to<br />
make decisive decisions and understand<br />
the impact that credit makes.”<br />
Being new to managing teams she was<br />
keen to put her learning into practice.<br />
She had tons of ideas and energy, but she<br />
was given some sage advice by Deborah<br />
Pennington FCI<strong>CM</strong>, who was Head of<br />
Credit. Deborah told Terri to “get to know<br />
the team first. Get to know the company<br />
first. Then one by one, make your changes<br />
slowly.”<br />
Terri is thankful for the advice: “I<br />
would have come in all guns blazing,” she<br />
says “and I would have tried to change<br />
everything, and probably would have lost<br />
the respect of my team and the wider<br />
team.”<br />
Building the team<br />
Instead, Terri started to build team bonds<br />
remotely during lockdown with daily<br />
zoom calls and 15-minute coffee morning<br />
catch ups which are not work-related. “It’s<br />
important,” she says, “to keep them light-<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 22
hearted and have that fun element. We've also got<br />
a WhatsApp team chat and people sending pictures<br />
of their kids. It's more like a friendship chat than a<br />
work chat.”<br />
Under Deborah’s guidance, CI<strong>CM</strong>Q was set as<br />
a target to develop the group. With the support of<br />
Kevin Gough, Interim Head of Credit, Terri was<br />
tasked with managing the process.<br />
As Clarins was and still is migrating to a new global<br />
system it wasn’t going to be easy. The technology was<br />
being upgraded so that systems could talk better to<br />
one another, data could be extracted more easily and<br />
overall, the quality of reporting could be improved.<br />
An enormous task<br />
“This was the biggest challenge I’ve come across<br />
so far,” Terri says. “We had to start from scratch to<br />
get all the big things we needed for CI<strong>CM</strong>Q. Tasks<br />
ranged from writing a local credit policy, to creating<br />
a training matrix for the team to make sure that I'm<br />
continuously progressing them, engaging them and<br />
keeping them interested in their roles.”<br />
There were lots of helpful templates, webinars and<br />
information on the CI<strong>CM</strong> website, which Terri spent<br />
hours going through, but it was also the people that<br />
Terri came across that helped make the difference:<br />
“Karen Tuffs (FCI<strong>CM</strong>) from the accreditation team<br />
at CI<strong>CM</strong>Q, was amazing at giving clear guidance on<br />
how to complete the tasks.” Terri learnt the value<br />
of asking for help, and getting almost everything<br />
checked by Deborah or by Karen to make sure it was<br />
best practice.<br />
She also relied on the support of her team from<br />
the outset. Getting them involved early and having<br />
conversations around how to improve the current<br />
processes was crucial. “There's no point me saying<br />
this is how I want you to do it if it doesn't work with<br />
what they need,” she says. “They are the ones that<br />
are using it all the time.”<br />
So Terri’s approach was to show the team all<br />
the tasks they needed to complete for a CI<strong>CM</strong>Q<br />
accreditation. “I would then ask them What's your<br />
idea? How do you want it to look?”<br />
The final reckoning<br />
The team completed the programme, and it<br />
concluded with an onsite assessment day in<br />
Harlow. When Karen came to perform the CI<strong>CM</strong>Q<br />
assessment, she spent the whole day speaking to<br />
stakeholders and examining the new reporting<br />
processes. “She spoke to every member of the team,”<br />
Terri says, “going through individual responsibilities<br />
and the processes they had to follow. She checked all<br />
❝<br />
“I just don't<br />
think I would<br />
have had the<br />
confidence to be<br />
a credit manager,<br />
having not gone<br />
through my Level<br />
5 qualifications.<br />
Learning how to<br />
manage a team,<br />
how to make<br />
decisive decisions<br />
and understand<br />
the impact that<br />
credit makes.”<br />
❝<br />
the documentation was correct, getting<br />
a general feel for us as a team, how we<br />
work together and then interviewed other<br />
teams like sales and customer services to<br />
get a feel for us through them.”<br />
Terri believes the CI<strong>CM</strong>Q accreditation<br />
which was achieved in November 2022 is<br />
benefitting the Clarins credit team and<br />
the business. “I think it has definitely<br />
improved our DSOs,” she says.<br />
And there are other benefits. “Before<br />
the CI<strong>CM</strong>Q process, I never really shared<br />
the reporting figures or results with the<br />
team. Now they get really excited every<br />
month when I'm about to report the DSO<br />
figures.”<br />
Not only are the team asking, ‘how did<br />
we do?’ Terri finds they are also much more<br />
excited about the bigger picture. She also<br />
says there is more team engagement. “I<br />
think having a plan for their progression,<br />
making sure that they are involved, has<br />
become more of a focus.”<br />
Understanding the wider picture<br />
Looking back now, Terri says she<br />
surprised herself by achieving CI<strong>CM</strong>Q<br />
accreditation. “I didn't have management<br />
experience and I never understood the<br />
wider business impact of credit control.”<br />
But through CI<strong>CM</strong>Q she learnt more<br />
about credit and how it integrates into<br />
the wider finance team and business<br />
objectives.<br />
“Grasping all of this in quick succession,<br />
and then trying to plan how we’re going<br />
to fit better into that space is something<br />
I could not have done alone. I couldn’t<br />
have done that without having a really<br />
good and seasoned mentor to help guide<br />
me through it. Deborah really did take me<br />
under her wing and gave me masses of<br />
knowledge, constantly coaching me and<br />
giving me good feedback.”<br />
Terri’s advice for other new or not so new<br />
credit managers aspiring to further their<br />
careers and the professional development<br />
of their team is to find a mentor. “Find a<br />
seasoned CI<strong>CM</strong> professional, that you<br />
trust and that you can bounce your ideas<br />
off. It will make all the difference in terms<br />
of getting things right and the impact you<br />
can have.”<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 23
OPINION<br />
Contracting Costs<br />
Contractual provisions and other mechanisms<br />
for dealing with spiralling costs.<br />
AUTHOR – Adam Bernstein<br />
IN a fast-moving world where prices<br />
are rising at a pace not seen in<br />
decades, firms are struggling to<br />
keep pace and, worryingly, stay<br />
in business. The natural reaction<br />
to rising prices is to pass on costs<br />
directly to customers.<br />
However, that’s not always possible and<br />
for some businesses – those involved in<br />
restructuring – high inflation is peeling off<br />
firms on the cusp of profitability.<br />
The FT reported mid-February (<strong>2023</strong>) that<br />
corporate distress has been held artificially<br />
low through pandemic funding and low<br />
interest rates. But with increasing rates and the<br />
end of support comes rising levels of failure.<br />
In December 2022, corporate insolvencies<br />
rose sharply in England and Wales to reach<br />
1,964 — a third higher than the same month in<br />
2021, and 76 percent higher than in December<br />
2019, before the pandemic. The story is the<br />
same for February with insolvencies of 1,783,<br />
up 17 percent on the 1,518 insolvencies in<br />
February 2022 and up 33 percent on the 1,345<br />
in February 2020.<br />
And the expectation is that these numbers<br />
will keep rising over the next couple of years.<br />
So, what can a firm do to protect its position in<br />
respect of difficult markets?<br />
James Crayton, Partner and Head of<br />
Commercial at Walker Morris, says that<br />
to combat skyrocketing energy bills and<br />
material and labour shortages, firms should<br />
initially conduct an assessment of their<br />
current commercial arrangements - including<br />
considering their own supplier relationships<br />
as well as their relationships with customers<br />
– “to understand whether there are any<br />
contractual or common law remedies which<br />
can provide them with flexibility or assistance<br />
to maintain good relationships, whilst not<br />
detrimentally impacting their finances.”<br />
Fixed price contracts<br />
The aim of the process is to get a fix on the<br />
current position. And this starts, clearly, with<br />
the current contractual position on pricing,<br />
especially where the firm is party to long-term<br />
supply contracts. Crayton says that “while the<br />
simplest price mechanism is a fixed price,<br />
often more detailed mechanisms to determine<br />
price are included in longer term agreements<br />
and firms should assess if this price is broken<br />
down into components which may be able to<br />
be changed.”<br />
This is particularly the case in circumstances<br />
where the firm can demonstrate that the cost<br />
of supply has significantly increased. But if<br />
the contract specifies a fixed price, then he<br />
advises considering if the contract contains<br />
provisions with regard to price indexation.<br />
“With such a clause,” says Crayton, “the<br />
contract will provide for the price to increase<br />
in relation to an index, such as the Retail<br />
Price Index (RPI) or the Consumer Price Index<br />
(CPI).”<br />
However, without an express provision,<br />
Crayton says that “the price specified in the<br />
contract will not adjust in line with either<br />
of these indexes, or any other method for<br />
measuring inflation.”<br />
Similarly, with general price reviews or<br />
adjustments, there needs to be an express<br />
clause in its agreement providing for the right<br />
to do so. Here Crayton warns that “vague<br />
statements that variations may be agreed are<br />
unlikely to be enforceable.” He adds that the<br />
contract may contain provisions for an annual<br />
price review, but “these tend to be about<br />
setting a framework for prices to be agreed,<br />
rather than a unilateral right to increase.”<br />
Force Majeure<br />
Next to consider is the force majeure clause.<br />
It is not a ‘get out of jail free’ card but may,<br />
in some circumstances, suspend a party’s<br />
obligations when they are prevented from<br />
completing an agreement by events outside of<br />
their control. Sometimes it includes rights to<br />
terminate.<br />
Crayton says that these events are often<br />
listed within the clause or definition. He<br />
notes, however, that “the supplier would need<br />
to be able to demonstrate that circumstances<br />
beyond its control prohibit it from complying.<br />
A general change in the economic climate or<br />
market conditions affecting the profitability<br />
of a contract is not likely to be considered a<br />
force majeure event.”<br />
And where there is no force majeure clause,<br />
Crayton says that a supplier “may have to<br />
rely on the doctrine of frustration, which<br />
is notoriously limited in its application.” In<br />
essence, this can set aside a contract where an<br />
unforeseen event either renders contractual<br />
obligations impossible, or radically changes<br />
the principal purpose for entering into the<br />
contract.<br />
Other contractual terms<br />
Other elements of the contract that Crayton<br />
advises looking at are “the basis of the<br />
agreement, and whether the firm is bound<br />
to supply pursuant to it, or whether it acts<br />
as a framework under which call-off orders/<br />
purchase orders are issued and subject to<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 24
❝<br />
The aim of the process is to get a fix on the current position.<br />
And this starts, clearly, with the current contractual position on pricing,<br />
especially where the firm is party to long-term supply contracts.<br />
❝<br />
acceptance.” Of course, refusal means no<br />
revenue and may risk damaging customer<br />
relationships. However, as Crayton says, it<br />
allows a pause in supply “in circumstances<br />
where cost price rises are making it unprofitable<br />
for the seller to continue to supply…and it may<br />
also be helpful leverage in discussions with<br />
customers requesting a price increase.”<br />
Then there’s a material adverse change<br />
which Crayton defines as “an event or<br />
circumstances which have a material adverse<br />
effect on the ability of the parties to perform<br />
their obligations.” He says that while this is<br />
not something typically seen in short-form<br />
standard terms and conditions, “it may be<br />
included in a long form, negotiated agreement<br />
and may allow for termination or suspension of<br />
obligations and a renegotiation of the contract.”<br />
The fall-back position is termination of the<br />
agreement altogether. It’s the least favourable<br />
option and carries risks. As Crayton points out,<br />
“care should be taken to properly assess the<br />
contractual right to terminate in accordance<br />
with the terms of the contract; it is likely that<br />
the seller will need to continue to supply up<br />
to the expiry of any notice period” – even if it’s<br />
possible to terminate.<br />
The absence of contractual provisions<br />
So, if with careful review of the contract it’s<br />
found that there are no suitable provisions<br />
embedded in the agreements, or, worse, they<br />
offer little or insufficient protection from the<br />
various price pressures the firm is facing are<br />
there any other options that can be considered?<br />
Crayton says that the obvious, and most<br />
effective and co-operative approach is to<br />
maintain an open dialogue with customers. He<br />
says that “they are unlikely to be surprised by<br />
requests for price increases and it is something<br />
that we are seeing a large number of our clients<br />
undertaking across various market sectors.”<br />
He continues: “Where the request is genuine,<br />
rather than exploitative, and particularly<br />
where it can be backed up by evidence, there<br />
may be an opportunity to vary the agreement<br />
without the need to terminate. Customers may<br />
be willing to accept this in order to guarantee<br />
continuity of supply, or where there are<br />
limited alternative suppliers.” Interestingly,<br />
Crayton highlights the fact that it is likely that<br />
alternative suppliers the customer might turn<br />
to will be facing the same challenges, and the<br />
customer may therefore have limited options<br />
to find an alternative. Regardless, he advises<br />
that “any commercial discussions should<br />
be documented, and the formal contractual<br />
variation procedure followed if applicable.”<br />
Where a firm is able to renegotiate, and<br />
certainly for any new agreements entered into,<br />
as Crayton emphasises, “they should ensure<br />
their contractual provisions provide adequate<br />
protection for any ongoing or new challenges<br />
faced due to cost price increases.”<br />
He explains that his firm has assisted clients<br />
in many industries in preparing wording to<br />
include in their quotes which reserves the right<br />
to amend prices in circumstances where there<br />
are material increases in input costs, including<br />
energy, labour, and fuel. That said, he adds a<br />
proviso: “Whilst we have not seen evidence of<br />
these types of provisions being tested recently<br />
and there is of course the risk that there is<br />
a challenge regarding contract formation or<br />
a battle of the forms scenario, it is likely to<br />
be more beneficial than not to include such<br />
wording.”<br />
Another tack is to add wording to quotes<br />
that state that quotes only remain open for<br />
acceptance for a short time period, and future<br />
supply will be subject to updated quotes, to<br />
reflect the market at that time.<br />
Looking to the future, Crayton highly<br />
recommends detailed thought about the use<br />
of various pricing mechanisms and whether<br />
it would help to link them to inflation, or at<br />
the least, have price reviews at certain points<br />
throughout the contractual period where the<br />
parties can renegotiate the price. And the<br />
market is moving in his experience. As he<br />
says, “we are seeing a trend towards including<br />
indexes or pre-agreed price rises linked to<br />
certain commodities and a move away from the<br />
price being fixed for the term of the agreement.”<br />
His last suggestion is for sellers to consider<br />
whether they want to commit to supplying ‘a<br />
certain volume’ for a certain price, or whether<br />
they want to work on a purchase order basis.<br />
As he highlights, “the advantage of having a<br />
predetermined volume of business detailed<br />
in the contract is that it provides certainty for<br />
both the seller and the customer. However, as<br />
seen by the cost-of-living crisis, the economic<br />
climate is unpredictable, and a more flexible<br />
agreement may be more beneficial, such as<br />
supplying on an ‘order-by-order.”<br />
Summary<br />
Price rises are inevitable, especially so in today’s<br />
economic environment. While such rises are<br />
bound to be unwelcome, a combination of<br />
suitable contracts and the right approach may<br />
make them more palatable.<br />
Adam Bernstein is a freelance finance writer.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 25
OPINION<br />
Future Imperfect<br />
A panel of leading industry experts share their<br />
take on the credit landscape in <strong>2023</strong>.<br />
AUTHOR – Roshika Perera<br />
THE economic forecasts at<br />
the turn of the year didn’t<br />
make for cheery reading: the<br />
OBR predicted a 1.6 percent<br />
contraction and the BoE,<br />
believing a recession to be<br />
underway already, expected it to continue<br />
until mid-2024, a two-year recession that<br />
would have been the longest on record.<br />
Yet, with the year's first quarter<br />
behind us, the reality didn’t prove as<br />
dire as predicted. Britain has – for now -<br />
swerved a recession, having avoided two<br />
consecutive quarters of negative growth.<br />
Which begs the question: has the UK<br />
economy finally turned a corner and if so,<br />
what impact will that have on the credit<br />
landscape?<br />
To help reassess what the remainder of<br />
<strong>2023</strong> has in store for the credit industry,<br />
Esker, provider of AI-driven business<br />
solutions, hosted a webinar at the end<br />
of March. It brought together a panel of<br />
experts who discussed topics ranging<br />
from the economy, insolvencies, credit<br />
risk, and the future role of technology in<br />
credit collections.<br />
A matter of perspective<br />
Markus Kuger, Chief Economic Advisor at<br />
Baker Ing, began the session by providing<br />
his assessment of the macroeconomy<br />
with the caveat that it is all a matter<br />
of perspective, for there are figures to<br />
satisfy both optimists and pessimists.<br />
Starting with the reasons for optimism,<br />
Markus highlighted the improvements in<br />
forward-looking indicators that explain<br />
the narrow escape from a recession and<br />
act as a sign of hope for the future: “Both<br />
private sector output - as seen in the<br />
PMI Composite Output Index - and the<br />
Consumer Confidence Index are on an<br />
upward trajectory,” he said. “Overall, it<br />
appears as though pessimism is waning.”<br />
Inflation, he believes, is the key driver<br />
behind this hopeful trend. While it<br />
currently sits at 10.4 percent, it is gradually<br />
declining, having peaked in October: “The<br />
Spring Budget provided some hope, with<br />
the OBR predicting that inflation would<br />
drop below three percent later this year,<br />
getting us closer to the BoE’s target rate of<br />
two percent.”<br />
For those inclined to take a more<br />
pessimistic view, there are good reasons<br />
for doing so, chief among them being<br />
the trends in real GDP growth: “The most<br />
recent forecasts show that growth will<br />
contract by 0.4 to 0.6 percent and the UK<br />
will end the year as the worst performing<br />
G7 economy.”<br />
While Markus doesn’t foresee a<br />
recession on the horizon, he does believe<br />
the year will continue to be defined by<br />
great financial challenges, including a<br />
rise in credit risk: “With slow growth and<br />
high-interest rates, getting access to credit<br />
won’t get any easier and the likelihood<br />
of late-payment and non-payment will<br />
increase.”<br />
Insolvency trends<br />
When COVID hit, a spike in insolvencies<br />
was bound to follow. Yet perhaps<br />
surprisingly, the scale of post-pandemic<br />
insolvencies has been “a gentle wave, not<br />
a tsunami,” according to the next speaker,<br />
Lucy Fulmer, Head of Creditor Markets<br />
Team at PwC and qualified insolvency<br />
practitioner. She says: “We have most<br />
definitely seen an upward trend. The<br />
number of insolvencies in 2022 is the<br />
highest since 2009. But there's an element<br />
of catch-up with these figures: we had<br />
a very low level of insolvencies during<br />
COVID, and now we’re seeing that wash<br />
through.”<br />
She believes these figures are largely the<br />
result of creditors’ voluntary liquidations,<br />
although she is beginning to notice a rise<br />
in compulsory liquidations: “More and<br />
more directors are throwing the towel in,<br />
unable to cope with the debt burden. And<br />
then there are many companies that were<br />
set up purely to take advantage of Bounce<br />
Back Loans, which HMRC is beginning to<br />
tackle aggressively.”<br />
However, deciphering these figures by<br />
company size paints a less frightening<br />
picture: “Over 90 percent of all the<br />
insolvencies we saw last year were<br />
businesses with less than £1m of turnover.<br />
So, although these numbers are high, the<br />
level of businesses being affected is at the<br />
low end of the market. And we haven’t<br />
yet seen this wave encroach on the midmarket.”<br />
Given the volatility in financial markets<br />
and the increasing credit risk, why have<br />
insolvencies been lower than expected?<br />
Lucy suggested it can largely be attributed<br />
to private investors: “The good news is that<br />
there's still enough access to capital and<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 26
❝<br />
Recounting the trends his firm is documenting, he warned that a perfect storm is<br />
gathering for struggling businesses: “We’ve seen just short of 3,800 applications<br />
for winding-up petitions in the first quarter, which is quite a dramatic increase.’’<br />
– Craig Evans, CEO of Company Watch<br />
❝<br />
people are still investing. There are plenty<br />
of cases where shareholders are willing to<br />
put more money into a distressed business<br />
to keep it afloat.”<br />
Nevertheless, Lucy warns of the need for<br />
caution when lending in this tumultuous<br />
climate: “It’s always wise to look as closely<br />
as possible at a company’s debt maturity,<br />
personal guarantees, dividend payments<br />
and refinancing commitments before<br />
lending.”<br />
Automating credit<br />
Craig Evans, CEO of Company Watch,<br />
agreed with Lucy’s assessment that<br />
compulsory insolvencies are on the<br />
rise. Recounting the trends his firm<br />
is documenting, he warned that a<br />
perfect storm is gathering for struggling<br />
businesses: “We’ve seen just short of 3,800<br />
applications for winding-up petitions in<br />
the first quarter, which is quite a dramatic<br />
increase. The H-Score at Company Watch<br />
(a tool that predicts likely business<br />
failures) has placed nearly one million<br />
companies into the warning zone area,<br />
that’s an unprecedented figure.<br />
“My bottom dollar is on zombie<br />
companies, which are technically<br />
insolvent and account for around<br />
£310bn of debt in total, finally going into<br />
insolvency with big numbers.”<br />
Craig also discussed how the pandemic<br />
brought a new wave of automation<br />
into credit operations: “COVID forced<br />
credit teams to shift into a virtual<br />
world. We began to see a significant<br />
increase in online applications, and<br />
companies adopted automation and other<br />
technologies to deal with this new reality.”<br />
And it’s rare to find any credit<br />
professional who would now forego<br />
the benefits of automation: “These<br />
tools enable our clients to forecast<br />
potential risks by gathering data such as<br />
management accounts or scenarios of<br />
where the company could be 6-12 months<br />
in the future. As a result, they can make<br />
more informed decisions.”<br />
Yet, the technology is far from making<br />
credit managers redundant. While<br />
it is capable of automating manual<br />
underwriting processes, making credit<br />
decisions is not a matter of black or white:<br />
“There are always grey areas in credit<br />
and in this climate, those grey areas are<br />
getting bigger. Although credit risk<br />
is increasing, credit teams are under<br />
pressure to provide credit, and companies<br />
rely on credit managers using their<br />
human evaluation to make the right<br />
decision.”<br />
Labour market trends<br />
With the good news that humans are not<br />
being replaced by AI, the final speaker,<br />
Natascha Whitehead, Business Director<br />
at Hays Credit Management, went on<br />
to discuss labour market trends in the<br />
industry and the wider economy.<br />
She believes there’s a new rule for<br />
companies looking to recruit in the postpandemic<br />
era: “They need to offer a hybrid<br />
working model, where employees only<br />
need to be in the office two to three days<br />
a week. From my experience, a company<br />
that mandates employees to come into<br />
office five days a week will alienate most<br />
candidates.”<br />
A greater challenge for companies,<br />
however, is the trend in salaries. With real<br />
time earnings being the lowest since 2001,<br />
Natascha warns that companies need to<br />
work harder to attract the right candidates:<br />
“Salaries are increasing as there is a high<br />
demand for and shortage of talent. But<br />
there are other ways that companies can<br />
stand out, by offering a flexible working<br />
model, an attractive benefits package, a<br />
good company culture, and so on.”<br />
The unemployment rate in the UK<br />
remains low at 3.7 percent and the<br />
employment rate exceptionally high at<br />
75.7 percent. Yet it may be the remaining<br />
20.6 percent, classed as economically<br />
inactive, that is driving the disparity in<br />
the labour market: “This economically<br />
inactive group includes many people who<br />
retired early during COVID. We’re working<br />
with our clients to try and attract them<br />
back into the job market. But companies<br />
should also consider the other option –<br />
recruiting candidates for their potential<br />
rather than the skills they have at the<br />
moment.”<br />
Natascha ended with a final piece of<br />
advice for businesses: “It’s well worth<br />
investing in your own team by ensuring<br />
you’re paying the market rate and<br />
upskilling - that will stop you having to<br />
get into the bun fight that is the world of<br />
recruitment.”<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 27
CI<strong>CM</strong> TRAINING<br />
Training courses that offer high-quality approaches<br />
to credit-related topics and practical skills<br />
Now, more than ever, the Credit Management and Collections industry<br />
is seeing drastic changes and impacts that affect the day-to-day roles of<br />
Credit and Collections teams.<br />
CI<strong>CM</strong> Training offers high-quality approaches to credit-related topics.<br />
Granting you the practical skills and necessary tools to use in your<br />
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Get trained with your<br />
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Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 28
On-Demand | Online | Face-to-Face<br />
METHODS OF DELIVERY<br />
CI<strong>CM</strong> Training courses can be delivered through a variety<br />
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teams to be trained on the most up-to-date methods in<br />
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CI<strong>CM</strong> Online<br />
Training<br />
CI<strong>CM</strong> Face-to-Face<br />
Training<br />
On-Demand training can be viewed anytime, anywhere with our downloadable<br />
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Online training will be for those who find it easy to learn from the space<br />
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Face-to-face training It’s been a long time coming but now you can mingle and<br />
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TRAINING COURSES<br />
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Harness your leadership Style • Know Your Customer • Managing Insolvency<br />
Reflect and Develop • Set Targets that Work<br />
For more details, visit our website, scan the<br />
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Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 29
OPINION<br />
By the sword divided<br />
Credit management appears divided between<br />
professional and not so professional practitioners.<br />
AUTHOR – Stephen Lewis FCI<strong>CM</strong><br />
AFTER some 45 years working<br />
in the commercial debt<br />
collection industry, I retired<br />
a year ago, having been<br />
involved in most aspects of<br />
commercial and consumer<br />
collection as well as training and industry<br />
activity in general. I cannot deny that it has<br />
been a very difficult 12 months.<br />
I did not realise how much I would miss<br />
the fast pace of the industry, even though<br />
the stresses of collection both from a client<br />
and customer perspective were enormous,<br />
not to mention the stresses of the day-today<br />
running of any business, it has left a<br />
massive void I am anxious to fill, but from<br />
a more relaxed and less time/life consuming<br />
position – if possible.<br />
People say it will get easier to relax and<br />
concentrate on hobbies and the like, but<br />
I must admit that presently I have found<br />
better comfort in offering my services on<br />
a limited consultancy basis to those that<br />
contact me or who are recommended and<br />
more importantly the added opportunity<br />
to give something back to the industry<br />
using my experience, gained within credit<br />
management.<br />
It has already given me some insights into<br />
collection and training that I do not think<br />
I would have acknowledged or noticed if<br />
continuing in my past daily work activity.<br />
Training operations<br />
I have been lucky enough to have been<br />
approached by some large and small<br />
commercial businesses to look at their<br />
current credit control and training<br />
operations and offer some advice and<br />
recommendations. It has also allowed<br />
me to look at the way some businesses<br />
operate from a perspective that I would not<br />
previously have seen.<br />
There is no doubt, to state the obvious,<br />
that many businesses over the past three<br />
years or so have experienced more ups<br />
and downs than needed: the back end of<br />
COVID-19, unprecedented economic swings,<br />
discussion and argument over ‘hybrid’<br />
working, and as a consequence dealing with<br />
all manner of new business terms requiring<br />
even more contemplation before getting<br />
on with the business of selling and making<br />
profits. Recent data is showing a drastic rise<br />
in corporate insolvencies and depressed<br />
consumer demand but at the same time<br />
there are encouraging recovery figures<br />
from Government painting a better picture<br />
than last year, at least. The Insolvency<br />
Practitioners will be rubbing their hands,<br />
perhaps an article for another day!<br />
What has become more obvious to me<br />
over this last year of being a little more on<br />
the outside of the industry is that despite all<br />
the rhetoric surrounding ‘faster payment,’<br />
from FSB, CBI, industry and national press,<br />
I cannot detect any real improvement in<br />
payment times. In fact, I am seeing some<br />
worrying gaps appearing between SMEs<br />
and larger businesses both in the way<br />
payments are being made and credit control<br />
procedures and customer facing operations<br />
in general. It may be a snap shot but I do<br />
think it significant, particularly in the light<br />
of recent comments by the FSB regarding<br />
their view that SMEs are being good about<br />
all things ‘credit control and payments wise’<br />
and larger firms being ‘bad’ in all respects.<br />
Better halves<br />
It cannot be denied that credit management<br />
has always been divided into two halves.<br />
The first half: those reading this article<br />
(hopefully to the end) through this<br />
representative bastion of credit excellence<br />
are usually those at the upper end of<br />
business and credit management. By that I<br />
mean, obviously, those that are members of<br />
the CI<strong>CM</strong>, including those highly qualified<br />
by experience and/or qualification, those<br />
working within businesses, including<br />
debt collection companies, who know<br />
and recognise the importance of training,<br />
legislation, compliance, FCA and other<br />
regulatory obligations.<br />
In this sector we all rightly seek<br />
qualification, accreditation and recognition<br />
through training, examination and the<br />
workplace as well as industry opportunity,<br />
all highly commendable and necessary to<br />
advance credit management in all aspects.<br />
The other half are those businesses that<br />
have hardly heard of the CI<strong>CM</strong> or CSA (in<br />
relation to The Credit Services Association –<br />
not the Child Support Agency), if at all. This<br />
half just about cover themselves with ‘Private<br />
and Regulatory Policy’ on their website and<br />
try their best to be compliant within all<br />
aspects of credit control and collection that<br />
they have difficulty understanding because<br />
they are too busy trying to earn a profit on a<br />
day-to-day basis. A generalisation, if a little<br />
unfair, because there are many SMEs in<br />
both halves that are highly professional and<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 30
❝<br />
Many companies delay payment because they can and that<br />
still persists. It is that gap between the larger suppliers and the<br />
smaller firms that seems to be growing rather than shrinking,<br />
in my recent experience.<br />
❝<br />
seek to promote that professionalism<br />
through their products and services.<br />
But they come up against pressures that<br />
can be quite unfair and only seem to be<br />
apparent to the smaller operator.<br />
Narrow margins<br />
These smaller businesses are often<br />
working within very narrow cashflow/<br />
profit margins. If they do not get paid<br />
in a reasonable time, they cannot pay<br />
their suppliers. If the suppliers are<br />
like minded a camaraderie can often<br />
be established so that the SMEs can<br />
work well and create profits throughout<br />
the supply and manufacturing chain.<br />
This is very relevant in the co-operative<br />
operations of small manufacturers, the<br />
farming industry and to some degree<br />
boutique retail operations now moving<br />
into the high street, particularly as we<br />
see the decline of multi-chain retailers<br />
regrouping and resizing to fit the current<br />
economic climate.<br />
These smaller businesses, in many<br />
instances, do not operate with the benefit<br />
of highly trained and credit management<br />
qualified staff, although still skilled in<br />
their sector. Not because they do not<br />
want training or qualifications, but<br />
often because proprietorships and small<br />
partnerships or small limited companies<br />
are trying to keep running costs low<br />
or have staffing limitations. It is not a<br />
criticism but a fact of business life.<br />
My involvement recently with some<br />
of these businesses has highlighted<br />
the pressure they are under from<br />
larger suppliers who are not always<br />
transparent about their own supplier<br />
payment policies and which are rarely<br />
documented within their own credit<br />
control/collection procedures. As has<br />
always been the case, many still operate<br />
an A/B/C priority list regarding how they<br />
pay suppliers, particularly smaller ones.<br />
It is still an uncomfortable fact that<br />
many large suppliers make it difficult<br />
to contact relevant departments when it<br />
comes to payment requests. It is always<br />
far easier when trying to contact the sales<br />
department of course (always a main<br />
contact area for me when encountering<br />
difficulty). Whether by design or<br />
accident it is increasingly noticeable<br />
that companies invite contact only by<br />
email; even addresses are hard to find. It<br />
can also be frustrating when companies<br />
outsource their accounting function,<br />
accounts receivable and payable.<br />
I have no wish to degrade outsourcing<br />
or the companies used but it does often<br />
mean payments can be delayed because<br />
there is a longer route to take when<br />
trying to solve a problem be it a credit<br />
issue or otherwise. It does also add to<br />
the DSOs of those seeking payment for<br />
goods or services. In some instances ,the<br />
training and qualifications within the<br />
management and staff of the originating<br />
company are not transferred to the<br />
outsource facility. This then shows the<br />
originating company in a bad light<br />
and the perception of inefficiency is<br />
promoted amongst customers and<br />
suppliers alike.<br />
Adding complexity<br />
I appreciate that size and scale adds to<br />
the complexity of credit control and<br />
collection so I do not think it will be<br />
possible to legislate fully to ensure 30-<br />
day payments as the absolute norm for<br />
general business. It could, perhaps, be<br />
the norm within Government/Local<br />
Authority but we saw how difficult that<br />
was and still is when the initial Late<br />
Payment Act came into legislation.<br />
In a capitalist society with free<br />
business will, all be it in a necessary<br />
regulated environment, there will<br />
always be reasons for payments outside<br />
of terms, from the cynical protection of<br />
cash to the genuine sorting of queries.<br />
Many companies still rely upon credit<br />
and using monies on a cheaper basis by<br />
delaying payments in order to survive<br />
and amongst many larger and smaller<br />
businesses that will always be the case.<br />
Many companies delay payment<br />
because they can and that still persists. It<br />
is that gap between the larger suppliers<br />
and the smaller firms that seems to<br />
be growing rather than shrinking, in<br />
my recent experience. It may not be<br />
factually proven by figures available<br />
through various statistical means but it<br />
is the perception that exists and we know<br />
how powerful that is.<br />
Stephen Lewis FCI<strong>CM</strong><br />
is a credit and collections consultant.<br />
slconsultancy51@gmail.com<br />
www.stephenlewisconsultancy.com<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 31
International Trade<br />
Monthly round-up of the latest stories<br />
in global trade by Andrea Kirkby.<br />
New Brexit rules could<br />
take time to bed in<br />
SOME will be relieved that the<br />
Government has concluded<br />
new post-Brexit trading rules<br />
with the EU. Others just want to<br />
wind the clock back to 22 June<br />
2016.<br />
However, the new Windsor Framework<br />
has been agreed and is to come fully into<br />
operation if approved by parliament.<br />
In essence, the framework proposes a<br />
phased introduction of new rules over this<br />
year, in 2024 and out to 2025. It addresses<br />
the customs checks and bureaucracy<br />
that have hurt businesses; British goods<br />
staying in Northern Ireland will use a<br />
green lane with minimal customs checks<br />
while goods going into Ireland – and the<br />
EU – will take a red lane.<br />
The deal also tries to address the<br />
concerns of unionist politicians and<br />
Brexiters who felt that the protocol<br />
undermined Northern Ireland’s position<br />
within the UK and compromised its<br />
sovereignty. The framework removes 1,700<br />
pages of EU law and limits the number of<br />
EU rules to the minimum needed (three<br />
percent), to ensure Northern Ireland’s<br />
continued access to the EU’s single<br />
market while avoiding a hard border on<br />
the island.<br />
Crucially, there’s a Stormont Brake<br />
which gives the Northern Ireland<br />
assembly a veto on any new or amended<br />
EU laws taking effect in the province.<br />
The immediate impact of the deal<br />
is that firms shipping to Ireland and<br />
Northern Ireland will have to reconsider<br />
how they label goods with wording such<br />
as ‘not for the EU’. Producers of fresh<br />
meats, such as sausages, and dairy<br />
products will have to start labelling goods<br />
for sale in Northern Ireland from this<br />
October with the cost being covered by the<br />
Government.<br />
From October 2024 all other dairy<br />
products, such as UHT milk and butter,<br />
will need to be relabelled and by July 2025<br />
this will apply to fish, fruit and vegetables<br />
and ‘composite products’ such as ready<br />
meals.<br />
There is much detail still to be thrashed<br />
out, but exporters need to be on top of<br />
this as soon as possible. The detail, as it<br />
emerges, will be on GOV.UK.<br />
BEWARE THE INFLUENCE<br />
OF THE DE-INFLUENCER<br />
IF you’re a firm that relies on social<br />
media, you need to be aware of the ‘deinfluencer’.<br />
A report in the Wall Street<br />
Journal highlights one TikTok user,<br />
Maddie Wells from Kentucky in the US.<br />
With experience as a shop assistant,<br />
Wells began posting videos on TikTok<br />
in 2020 that drew attention to the<br />
cosmetic products customers tended to<br />
return most often.<br />
And she’s not the only one doing<br />
this. De-influencing videos can lead<br />
consumers toward cheaper alternative<br />
products, known as ‘dupes’, or<br />
discourage them from spending money<br />
altogether.<br />
The problem for the public now<br />
is who to trust – influencer or deinfluencer?<br />
With brand-sponsored<br />
marketing by influencers almost<br />
ubiquitous, this is becoming a real<br />
issue. The concern for firms must<br />
surely be the temptation to discredit<br />
the products of a competitor without<br />
cause.<br />
This all means that firms must be<br />
cautious about how they use social<br />
media and the claims made while<br />
being on the lookout for unfair deinfluencing.<br />
Alternatively, they could<br />
consider more traditional forms of<br />
media.<br />
A recent story in MoneyWeek drew<br />
attention to the British Business<br />
Bank Start-up Loans with competitive<br />
unsecured rates for founders.<br />
In essence, the bank offers personal<br />
loans to those looking to start a<br />
new business or expand an existing<br />
business that has been trading for less<br />
than 36 months. The cash can be used<br />
Borrowing from the state<br />
for almost any business purpose –<br />
from renting premises or buying stock<br />
to funding marketing materials or<br />
even running an export programme.<br />
Borrowers can seek funding of<br />
£500 to £25,000 each with the money<br />
repayable over one to five years. There<br />
are no arrangement fees, but interest<br />
is charged at a rate of six percent.<br />
And because the loans are unsecured,<br />
personal or business assets are not<br />
needed as collateral and nor is a<br />
guarantor.<br />
Of course, applications are assessed<br />
on borrowers credit histories and their<br />
ability to repay. Applicants are also<br />
expected to provide a business plan<br />
and a cashflow forecast.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 32
A European 'withdrawal button'?<br />
A great headline for Brexit Remainers but<br />
it’s not quite as they’d wish. EuroCommerce<br />
has published a joint statement with<br />
other EU trade associations expressing<br />
concerns about the proposed introduction<br />
of a ‘withdrawal button’ for all distance<br />
contracts as part of the European<br />
Commission’s proposed reforms to<br />
the current rules on financial services<br />
contracts concluded at a distance. The<br />
current rules are in Directive 2011/83/EU<br />
(the Consumer Rights Directive) which<br />
concerns financial services contracts<br />
concluded at a distance and Directive<br />
2002/65/EC on distance marketing of<br />
consumer financial services (the Distance<br />
Marketing Directive).<br />
The trade associations support the<br />
DO CRY FOR ARGENTINA<br />
ARGENTINA is in a bind. It’s annual rate of<br />
consumer price inflation has risen above<br />
100 percent for the first time since 1991,<br />
says the Financial Times.<br />
Month-on-month inflation in February<br />
was 6.6 percent which makes the annual<br />
figure 102.5 percent. It was 98.8 percent at<br />
the start of <strong>2023</strong>. Inflation has been widely<br />
attributed to the central bank which<br />
has been printing money; the amount of<br />
objective of enhancing consumers’<br />
withdrawal right but believe that the<br />
provision could be achieved through less<br />
prescriptive measures.<br />
If approved, the new directive would<br />
introduce a withdrawal button for contracts<br />
that a consumer concludes by electronic<br />
means, a financial services contract at a<br />
distance.<br />
The joint statement suggests that the<br />
proposal will go beyond the financial<br />
sector and could affect the majority of the<br />
business to consumer industry with online<br />
sales activities.<br />
So, if you’re looking to trade online in<br />
Europe, be aware that contracts could soon<br />
be ‘ripped up’ in an instant at the press of<br />
an online button.<br />
money in circulation quadrupled during<br />
President Alberto Fernández’s first three<br />
years in office. Only Zimbabwe, Lebanon,<br />
Venezuela and Syria are in a worse<br />
position. Price controls on 1,700 goods that<br />
lasted until December didn’t achieve their<br />
objective and an IMF bailout of $44bn<br />
depends on targets that the Government<br />
wants to lower.<br />
All in all, be careful in Argentina.<br />
SOUTH AFRICA<br />
IS IN THE DARK<br />
WHILE the UK and others have avoided<br />
recession so far, South Africa is on the<br />
brink of a crisis as its economy shrank<br />
by 1.3 percent in Q4 2022.<br />
Apart from mismanagement and<br />
corruption, the country suffers power<br />
cuts almost daily. The South African<br />
Reserve Bank thinks that the electricity<br />
crisis is costing the country up to £41m<br />
per day and ‘will shave two percentage<br />
points off output growth in <strong>2023</strong>.’<br />
The population is now used to<br />
blackouts. Mining output has been<br />
dropping for ‘10 consecutive months,’<br />
and where possible some use<br />
generators – at a cost. MoneyWeek<br />
quotes Shoprite, a grocery chain, that<br />
said “that if power cuts continue, it will<br />
spend R1.2bn (£54m) a year on diesel to<br />
keep the lights on, a sum equal to about<br />
a fifth of its annual profits.”<br />
South Africa is the world’s largest<br />
producer of platinum and the<br />
third-largest iron ore exporter. The<br />
Government managed a small budget<br />
surplus because of efforts to restrain<br />
spending but also, because of the<br />
commodities boom. However, with<br />
raw-materials demand falling and the<br />
economy stagnating, there’s a real risk<br />
to the South African economy.<br />
Beware then, if you’re involved in<br />
the export of electrical appliances to<br />
South Africa or rely on its consumers or<br />
mining sector.<br />
Could Italy leave the EU?<br />
ACCORDING to some, including the New<br />
Statesman, Italexit is still on the cards.<br />
At present – and this is said carefully as<br />
Italy is on its 68th Government in 77 years<br />
- Giorgia Meloni, Italy’s current far-right<br />
prime minister, says that she has no<br />
plans to take Italy out of the eurozone.<br />
However, if she manages to make more<br />
than a year in office, she may change her<br />
mind.<br />
Wolfgang Münchau, a New Statesman<br />
columnist and the Director of<br />
Eurointelligence, reckons that the real<br />
reason Italy ‘booted out’ seven prime<br />
ministers since 2011 was their ‘failure to<br />
address the lack of productivity growth,’<br />
which has been virtually non-existent<br />
since joining the euro and has led to the<br />
spread of ‘poverty traps’ from the ‘hopeless<br />
south’ to the rest of the country.<br />
Indeed, the European Commission<br />
reckons that 13 of Italy’s 20 regions have<br />
now ‘entered a doom loop of emigration,<br />
low educational attainment and low<br />
investment.’<br />
Meloni wants to stop this cycle and<br />
is seeking transfers from richer EU<br />
countries. Since the pandemic, Italy has<br />
received nearly €70bn but these funds<br />
are conditional on economic reforms.<br />
However, change is slow and richer EU<br />
countries are resisting further transfers.<br />
The problem is that Italy is ‘too large<br />
to save and too large to fail. Eventually,<br />
something has to give.’ And for as long as<br />
productivity growth goes unaddressed, a<br />
euro exit remains a possibility. In other<br />
words, we could see Italexit.<br />
CURRENCY UK<br />
EXCHANGE RATES VISIT CURRENCYUK.CO.UK<br />
OR CALL 020 7738 0777<br />
Currency UK is authorised and regulated<br />
by the Financial Conduct Authority (FCA).<br />
HIGH LOW TREND<br />
GBP/EUR 1.14797 1.12628 Up<br />
GBP/USD 1.25170 1.19216 Up<br />
GBP/CHF 1.14124 1.10102 Up<br />
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GBP/CAD 1.68915 1.64903 Up<br />
GBP/JPY 166.310 158.473 Up<br />
This data was taken on 11th April and refers to the month<br />
previous to/leading up to 10th April <strong>2023</strong>.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 33
COUNTRY FOCUS<br />
With an enviable<br />
standard of living,<br />
Sweden has a thriving<br />
economy.<br />
Knowing me,<br />
knowing you<br />
AUTHOR – Adam Bernstein<br />
SWEDEN is an easy country<br />
to introduce. Stereotyped by<br />
IKEA’s flat pack furniture and<br />
meatballs, clothing from H&M,<br />
and ABBA – the global pop<br />
supergroup from Stockholm,<br />
Sweden is a country with much to offer<br />
exporters.<br />
Its history goes back to at least 12,000 BC<br />
and its first settlers followed by Stone Age<br />
man. However, with little written history<br />
until the 11th century, sources suggest that<br />
Sweden didn’t ‘officially’ come into being<br />
until around then.<br />
Sweden moved closer to Norway and<br />
Denmark and formed the Kalmar Union in<br />
1397. During the 17th century it emerged<br />
as a regional power winning wars against<br />
Denmark-Norway, Russia and the Polish<br />
Lithuanian Commonwealth. However,<br />
1721 saw Sweden lose against Russia and<br />
as a consequence lose its empire. Finland<br />
and lands outside of Scandinavia were also<br />
lost in the early 1800s. It was part of the<br />
Swedish-Norwegian Union from 1814 to<br />
1905 and has maintained a neutral stance<br />
since 1814.<br />
Although Sweden joined the European<br />
Union in 1995, it is one of six EU states<br />
that are not part of NATO. However, with<br />
a population in favour of joining, and the<br />
Russian invasion of Ukraine, in July 2022<br />
Sweden signed papers to join the defence<br />
organisation.<br />
The country<br />
Formally known as the Kingdom of Sweden,<br />
it’s bounded by Norway to the north and<br />
west, Finland to the east and Denmark –<br />
albeit by a bridge and tunnel – to the<br />
southwest.<br />
At 447,425 sq. km. it’s the largest of the<br />
five Nordic countries and just under twice<br />
the size of the UK (at 242,495 sq.km). It’s<br />
the fifth largest country in Europe and<br />
the third largest in the EU. A long narrow<br />
country measuring 1,574km by 499km at<br />
its extremes, it has a coastline of 3,218km.<br />
A helpful table at Mileagemath.com<br />
indicates that road travel between cities in<br />
Sweden can be long and time consuming.<br />
With a population of 10,523,709m,<br />
according to Official Statistics of Sweden,<br />
the country is sparsely populated. 2022 data<br />
from Official Statistics of Sweden shows<br />
that 984,748 live in Stockholm, 596,841 in<br />
Gothenburg, 357,377 in Malmo and 242,140<br />
in Uppsala. There are 15 more cities with<br />
more than 100,000 residents, 30 with 50,000<br />
to 100,000, 180 towns with 10,000 to 50,000<br />
inhabitants, and 67 with anywhere from<br />
2,372 to 50,000.<br />
Its climate is temperate in south with<br />
cold, cloudy winters and cool, partly<br />
cloudy summers; and subarctic in north.<br />
The male/female split is very even at<br />
5.29m males to 5.22m females. 20.9 percent<br />
are aged 17 or under, 58.7 percent aged<br />
18 to 64, and 20.4 percent are aged 65 or<br />
over. Official Statistics of Sweden’s<br />
data is comprehensive and shows an<br />
aging population. At the turn of the<br />
millennium, 21.8 percent were aged 17<br />
or under and just 17.2 percent 65 or older.<br />
Back in 1980 those numbers stood at 23.8<br />
and 16.4 percent respectively.<br />
The CIA World Factbook suggests an<br />
estimated population growth rate of 0.51<br />
percent (<strong>2023</strong>). In comparison, Official<br />
Statistics of Sweden reckons that for 2022<br />
the figure is closer to 0.66 percent.<br />
The data also shows a near doubling<br />
in 40 years of ‘foreign citizens’ – 421,667<br />
in 1980 to 905,323 in 2020. Indeed, some<br />
2.68m are now considered to have a foreign<br />
background – a point backed by data<br />
from the CIA World Factbook with a 2020<br />
estimate that stated that, ethnically, 80.3<br />
percent are Swedish, 1.9 percent Syrian,<br />
1.4 percent Iraqi, 1.4 percent Finnish,<br />
with ‘other’ making up 15 percent of the<br />
population. Much of the Iraqi and Syrian<br />
population have come seeking refuge<br />
following conflict.<br />
Sweden’s economy<br />
World Bank Data states that Sweden’s GDP<br />
has followed an almost exponential path<br />
since 1985 when it rose from $142.09bn<br />
to $284.32bn in 1992, $517.71bn in 2008,<br />
$586.84bn in 2013, and $635.66bn in 2021.<br />
As the CIA World Factbook comments,<br />
Sweden has a ‘small, open, competitive,<br />
and thriving economy that remains<br />
outside of the euro zone; it has achieved<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 34
❝<br />
Sweden is clearly more than the two global icons<br />
that are IKEA and ABBA. It’s a prosperous land<br />
with many natural resources and a well-developed<br />
economy with plenty of industry.<br />
an enviable standard of living, with its<br />
combination of free-market capitalism<br />
and extensive welfare benefits.’<br />
According to the Observatory of<br />
Economic Complexity (OEC), Sweden,<br />
in 2020, exported and imported goods<br />
and services worth $152bn and $140bn<br />
respectively. The OEC places Sweden 32nd<br />
in the world in terms of its imports and<br />
exports.<br />
The OEC states that the top exports were<br />
cars ($11.1bn), packaged medicaments<br />
($9.29bn), refined petroleum ($5.25bn),<br />
motor vehicles, parts and accessories<br />
($4.13bn), and broadcasting equipment<br />
($3.76bn) – most of the exports went to<br />
Germany ($15.9bn), Norway ($14.2bn),<br />
United States ($12.7bn), Denmark<br />
($11.6bn), and Finland ($9.44bn).<br />
On imports, Sweden’s largest imports<br />
were cars ($8.46bn), crude petroleum<br />
($5.25bn), motor vehicles; parts and<br />
accessories ($4.86bn), refined petroleum<br />
($4.38bn), and broadcasting equipment<br />
($4.05bn). Most came from Germany<br />
($25.2bn), Netherlands ($11.6bn),<br />
Denmark ($9.45bn), Norway ($9.1bn), and<br />
China ($9.02bn).<br />
Key business sectors<br />
Surprisingly, there’s little coherent<br />
information on key industrial sectors in<br />
Sweden. The UK Government’s advice,<br />
published in 2015 has been withdrawn,<br />
the Swedish Government’s own website<br />
❝<br />
is less than helpful, and much around the<br />
web appears to have been copied or cobbled<br />
together. In other words, if a serious<br />
move to Sweden is being considered,<br />
local market research for the given<br />
application would be a wise investment.<br />
Manufacturing<br />
In December 2021, the International Centre<br />
for Education and Training (ICET),<br />
wrote that Sweden possesses an ‘efficient<br />
export-oriented manufacturing industry<br />
which contributes significantly to the<br />
country’s economy.’ It adds that privately<br />
held companies account for about 90<br />
percent of industrial output. A 2018 SBA<br />
Fact Sheet published by the European<br />
Commission reported that ‘Swedish<br />
SMEs generate 59.7 percent of value added<br />
and 65.5 percent of employment in<br />
the ‘non-financial business economy’.<br />
Their productivity is well above the EU<br />
average.’<br />
Overall, it’s of note that the US Trade<br />
Department considers that Sweden’s manufacturing<br />
and industrial engineering<br />
sector accounts for roughly 20 percent of<br />
the country’s GDP or $125bn. It thinks that<br />
steel, automotive, chemical and forestry<br />
are important sectors, along with industrial<br />
machinery and equipment, automation<br />
and food processing equipment.<br />
Automotive is the largest sector which<br />
accounts for almost half of the industrial<br />
value-added. Aerospace and automotive<br />
manufacturing plants are located in the<br />
south with names such as Saab and Volvo<br />
being recognised globally.<br />
Statistics Sweden noted that vehicles<br />
is Sweden’s largest export category (and<br />
also the largest import category). In 2021,<br />
Sweden exported $20.5bn of vehicles yet<br />
imported vehicles worth $16.5bn. The<br />
Swedish Innovation Agency says the sector<br />
employs around 140,000. In comparison,<br />
a document from marketresearch.com,<br />
Automotive Manufacturing in Sweden,<br />
which sells for $350, suggested that ‘the<br />
Swedish Automotive manufacturing<br />
industry had total revenues of $5.2bn in<br />
2019’. That’s quite a variance.<br />
On electric vehicles, the Government is<br />
providing subsidies and vehicle tax cuts<br />
for purchasing environmentally friendly<br />
vehicles. This has caused a shift in sales<br />
from fossil-fuelled vehicles to hybrid and<br />
electric vehicles.<br />
In terms of electronics and electric<br />
plants, they are located mainly in Västerås<br />
and Stockholm, the latter being the largest<br />
producer of communication equipment<br />
in the country. There are small plastic<br />
and metal processing plants in the south<br />
and Stenungsund, on the west coast, has<br />
a strong petrochemical industry – worth<br />
$3.38bn in 2020 according to Resear<br />
chandmarkets.com.<br />
Biotech and pharmaceuticals are<br />
fast-growing sub-sectors. Here, Life<br />
Sciences in Sweden says that there are<br />
148 companies in this sector developing<br />
new medicines in 420 different projects.<br />
It helps that, as SwedenBIO comments,<br />
Brave | Curious | Resilient / www.cicm.com /May <strong>2023</strong> / PAGE 35
COUNTRY FOCUS<br />
AUTHOR – Adam Bernstein<br />
❝<br />
Automotive is<br />
the largest sector<br />
which accounts for<br />
almost half of the<br />
industrial valueadded.<br />
Aerospace<br />
and automotive<br />
manufacturing<br />
plants are located<br />
in the south with<br />
names such as Saab<br />
and Volvo being<br />
recognised globally.<br />
❝<br />
‘Sweden has ten universities with life<br />
science-oriented faculties spread throughout<br />
seven different cities from Umeå in the<br />
North to Lund in the South. Eight have a<br />
natural science faculty and seven have a<br />
medical faculty.” A Government publication,<br />
Sweden’s national life sciences strategy,<br />
details that progression in this sector is key<br />
to achieving the 2030 Agenda for Sustainable<br />
Development. But with increasing global<br />
competition, the Government wants greater<br />
levels of digitalisation, sustainability and<br />
innovation. In 2013, the Government<br />
published, Produktion2030 – P2030 – a<br />
strategic research and innovation programme<br />
which seeks to make Sweden ‘a frontrunner<br />
in investments in sustainable production<br />
by 2030’. The programme is a collaboration<br />
between industry, academia and research<br />
associations.<br />
Measures in a Roadmap to Smarter<br />
Industry include automation and robotics<br />
programmes for SMEs, national test labs<br />
for electric vehicle production, and zero<br />
emission programmes and incentives for<br />
energy intensive industries. It’s thought that<br />
annual R&D investments here are around<br />
$10bn. And for those wanting a list of<br />
manufacturing companies in Sweden, Dun<br />
and Bradstreet has such a thing on its website<br />
– for a charge of course.<br />
Tourism<br />
With its landscape and position, it’s not<br />
surprising that tourism is important to<br />
Sweden. The country has 15 UNESCO World<br />
Heritage sites, and most tourists visit the<br />
country in the summer when temperatures<br />
are relatively high.<br />
A 2022 reference in the OECD’s iLibrary<br />
commented that tourism grew ‘steadily<br />
prior to the COVID-19 pandemic and is<br />
an important contributor to the Swedish<br />
economy and labour market.’ Tourism’s<br />
share of the economy sat around 2.6 percent<br />
of GDP, but dropped to 1.7 percent in 2020,<br />
with a small increase in 2021 to 1.9 percent.<br />
The sector employs more than 100,000 people.<br />
The pandemic years clearly affected the<br />
sector and tourist nights dropped to 43.3m<br />
in 2020, a decline of 36 percent from 2019.<br />
International nights fell by 70 percent to<br />
5.2m nights while domestic nights decreased<br />
24 percent to 38.1m nights. However,<br />
those numbers in 2021 rebounded so that<br />
international nights increased to 7.3m and<br />
domestic nights increased 23 percent to<br />
46.9m nights in 2021.<br />
Overall, total tourism expenditure in<br />
2021 was Swedish Kronor (SEK) 249 bn, an<br />
increase of 18 percent compared to 2020.<br />
Stockholmbusinessregion.com recorded<br />
Germany as the largest international market<br />
followed by France, Norway, the Netherlands<br />
and the UK. Interestingly, it reckons that<br />
visitors from Asia and Australasia have not<br />
(yet) returned. It should be said that ICET<br />
thinks that 7.1 percent of household income<br />
is spent on local tourism.<br />
Agriculture<br />
In common with other nations, Sweden has<br />
employed progressively fewer workers over<br />
the last 100 years. Where once it was 50 percent<br />
of the population, 20 percent in the 1950s,<br />
it’s now, says Statista, 1.69 percent (2019).<br />
However, this drop in employment does<br />
diminish the fact that Sweden has significant<br />
natural resources. Agricultural output in<br />
Sweden exceeds domestic consumption even<br />
though the country imports a significant<br />
amount of food.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 36
COUNTRY FOCUS<br />
AUTHOR – Adam Bernstein<br />
ICET states that around 6.8 percent of the<br />
country’s total land is under temporary or<br />
permanent crops. Farms in the country<br />
are typically tilled intensively, and heavy<br />
use of fertilisers is widespread and farms<br />
are highly mechanised. A concern for<br />
the Government is that the majority of<br />
farmers are elderly and many farms do<br />
not have successors. The Government has<br />
a policy in place to try and merge small<br />
farms into larger units of approximately<br />
25 to 50 acres. Crops cultivated include<br />
potatoes, barley, wheat, rye, vegetables,<br />
and fruits. And on timber and wood<br />
production, Göteborgs Tekniska College,<br />
says that it’s located close to sources<br />
of raw material. The pulp and paper<br />
industry is often situated at the mouths<br />
of rivers running through forest regions —<br />
including a number along the shores of the<br />
Gulf of Bothnia and of Vänern, Sweden’s<br />
largest lake. Production is concentrated at<br />
large, efficient mills, located in southern<br />
Sweden.<br />
Mining<br />
Another sector to note in Sweden is<br />
mining. Svemin, the Swedish Association<br />
of Mines, Mineral and Metal Producers,<br />
states that Sweden accounts for around 93<br />
percent of all iron ore produced in Europe<br />
and is also a leading producer of other<br />
base metals. The Geological Survey of<br />
Sweden says that most mines are located<br />
in Sweden's three ore regions, Norrbotten,<br />
Skelleftefältet and Bergslagen. But where<br />
once there were some 250 mines, now the<br />
number has decreased to 12 active metal<br />
mines (2021). However, total production<br />
has more than doubled to 88.6m tonnes<br />
with the increase in demand driven mainly<br />
by China and other Asian countries.<br />
Other minerals mined include 88,000<br />
tonnes of copper, 236,000 tonnes of zinc,<br />
65,000 tonnes of lead, and 400,000 kg each<br />
of gold and silver (2021 data). In 2021<br />
sales were SEK 69bn. Overall, nearly 8,000<br />
people are employed in the mining sector.<br />
Construction<br />
GlobalData considers the Swedish construction<br />
sector to have been worth<br />
$87.1bn in 2021. The industry’s growth is<br />
supported by the Government’s investment<br />
in transport and energy infrastructure.<br />
The Swedish Construction Federation<br />
reckoned that the sector employs<br />
354,000 people.<br />
Sweden wants to be climate neutral<br />
by 2045 and with buildings comprising<br />
20 percent of Sweden’s climate impact,<br />
change is necessary – a point emphasised<br />
by The Fossil Free Sweden programme<br />
which guides the construction and civil<br />
engineering sector. Allied to this is the<br />
Smart Built Environment, a 12-year<br />
research and innovation programme<br />
running from 2016 to 2028 which aims<br />
to create new knowledge, skills, services,<br />
and products, and the Million Homes<br />
Retrofit, a Government modernisation<br />
and renovation project for 1960s and 70s<br />
suburban public housing stock.<br />
Taxes<br />
The headline corporate income tax rate is<br />
20.6 percent, down from 21.4 percent that<br />
applied before 31 December 2020.<br />
The Swedish VAT system is in line<br />
with the EU rules. The general VAT rate<br />
is 25 percent, but reduced rates apply<br />
to goods and services such as hotel<br />
accommodation, foodstuffs (excluding<br />
alcoholic beverages), restaurant meals,<br />
and low or non-alcoholic drinks<br />
(12 percent), as well as newspapers,<br />
magazines, books, e-books, passenger<br />
transport, maps, musical notes, some<br />
cultural services, transport in ski lifts,<br />
etc. (six percent). Certain financial and<br />
insurance services are exempted from<br />
VAT.<br />
VAT returns must be filed monthly<br />
if the VATable turnover is estimated to<br />
exceed SEK 40m (estimated yearly sales<br />
excluding any reverse charge or import<br />
acquisitions). Companies with VATable<br />
turnover below SEK 40m report VAT<br />
quarterly or may choose to report VAT<br />
on a monthly basis. For companies with<br />
a turnover of less than SEK 1m, VAT is<br />
reported on a yearly basis in the VAT<br />
return, and these companies may also<br />
choose to report VAT quarterly or on a<br />
monthly basis.<br />
There are also EU-based e-commerce<br />
rules (from July 2021) that apply to VATable<br />
sales. These cover sales on platforms (that<br />
never own goods sold), distance sales, and<br />
the importation of goods to a consumer.<br />
Social security contributions are levied<br />
at 31.42 percent of the total taxable<br />
remuneration (no cap) in cash and in kind<br />
paid by a Swedish employer or a foreign<br />
employer with a permanent establishment<br />
in Sweden – employees pay seven percent.<br />
And Swedish employers and non-Swedish<br />
employers in Sweden pay special wage tax<br />
of 24.26 percent on pension costs relating<br />
to tax qualified company pension plans.<br />
Personal<br />
Both national and municipal taxes are<br />
applied to private income. In terms of the<br />
former, SEK 0 to 613,900 attracts a zero<br />
rate while above that figure the rate is<br />
20 percent. In terms of municipal taxes,<br />
SEK 0 to 613,900 is taxed at 32 percent as<br />
is income in excess of that amount. Nonresidents<br />
working in Sweden for a Swedish<br />
employer or a foreign employer with a<br />
permanent establishment in Sweden<br />
are taxed a flat rate of 25 percent at<br />
source. At time of writing £1 equalled SEK<br />
12.75.<br />
Summary<br />
Sweden is clearly more than the two<br />
global icons that are IKEA and ABBA.<br />
It’s a prosperous land with many natural<br />
resources and a well-developed economy<br />
with plenty of industry. With a relatively<br />
close proximity to the UK, Sweden really<br />
ought to be a target for exporters.<br />
Adam Bernstein is<br />
a freelance finance writer.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 37
HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION<br />
Ethical Enforcement<br />
The HCEOA welcomes the ECB’s<br />
first ever draft business plan.<br />
AUTHOR – Alan J. Smith FCI<strong>CM</strong><br />
FOR some time now the HCEOA has<br />
been engaging with the Enforcement<br />
Conduct Board (ECB) to support it<br />
in delivering its aim of providing<br />
independent oversight for the entire<br />
enforcement profession.<br />
We want to ensure fair treatment and appropriate<br />
protection for people subject to action by all<br />
enforcement agents. What everyone can now see is<br />
the detail of how it intends to start delivering this.<br />
The ECB recently released its first full<br />
business plan (<strong>2023</strong>/24) for consultation, setting<br />
out its proposed activity and rationale, and<br />
welcoming input from the profession, creditors,<br />
consumer groups, the debt advice sector, and<br />
other organisations with an interest in ensuring<br />
enforcement works effectively.<br />
As an Association we’re supportive of the<br />
ECB’s aims. We’re already providing insight on<br />
the work our members do to enforce High Court<br />
writs on behalf of UK businesses and individuals<br />
responsibly and safely. We’ll continue to work<br />
with the ECB Board in this manner to help it<br />
achieve its first outlined priority of collecting data<br />
from the enforcement profession to help it better<br />
understand the reality of the current landscape.<br />
Vulnerable debtors<br />
One of the key areas understandably highlighted by<br />
the ECB in its business plan is wider consultation<br />
on the development and implementation of a<br />
robust code of practice, focusing on procedures<br />
for identifying and dealing with vulnerability and<br />
affordability.<br />
For the Association and our members, ensuring<br />
vulnerable people are supported flexibly and<br />
sympathetically while we work with them to create<br />
appropriate resolutions is a priority. Over the past<br />
few years, enforcement businesses have massively<br />
increased the resources they allocate to effectively<br />
identify cases with potential vulnerability. This<br />
includes things like:<br />
• dedicated teams within the businesses<br />
themselves to help quickly recognise the signs of<br />
vulnerability and know what the next steps are.<br />
• working ever more closely with clients to ensure<br />
that their specific Treating Customers Fairly<br />
(TCF) policies are incorporated into enforcement<br />
practices.<br />
• gathering more and better data and analysing<br />
it intelligently to support decision making, as<br />
well as using technology, such as AI, to pick up<br />
indications of vulnerability through customer<br />
support.<br />
While the Association’s own Code of Best Practice<br />
and the Government’s Breathing Space initiatives<br />
both outline processes for vulnerable debtors, one<br />
of the biggest obstacles our members face is an<br />
unwillingness from some debtors to engage with<br />
the enforcement process in the early stages. Not<br />
only does this increase the level of fees added to the<br />
debt, but it also impacts the enforcement agent’s<br />
ability to determine vulnerabilities and deal with<br />
these cases appropriately. We’re hopeful that a<br />
standardised approach that spans the profession and<br />
includes the debt relief sector will help to<br />
encourage early engagement of debtors and enable<br />
our members to provide much-needed advice and<br />
support.<br />
An independent complaints system<br />
We are looking forward to further information on<br />
how the ECB plans to deal with complaints and<br />
welcome the results of its profession-wide review<br />
of complaints procedures. While we do have our<br />
own procedure in place to handle complaints that<br />
are submitted to the Association, we agree that<br />
a profession-wide standardised process will be<br />
beneficial for debtors and creditors alike to help<br />
them navigate this often-complex area.<br />
With the ECB also proposing to produce a plan<br />
to assume responsibility for non-ombudsmen<br />
complaints, we’re hopeful that the small proportion<br />
of cases we have that result in a complaint to the<br />
Association will welcome its independent review<br />
and decision-making.<br />
A key role to play<br />
No one understands this profession, how it is<br />
shaped by the complexities and peculiarities of the<br />
laws and regulations that govern it, and what the<br />
practical impact of changes will be, better than the<br />
professionals working within it.<br />
Along with knowledge from our colleagues at<br />
CIVEA, the input from HCEOA members can be of<br />
huge value to the ECB as it sets out on its important<br />
journey towards independent oversight.<br />
This draft business plan is a good start. The<br />
goals of greater collaboration and more shared<br />
understanding between the enforcement<br />
profession and the debt relief sector are definitely<br />
worth pursuing.<br />
You can read the ECB’s draft business plan in<br />
full here: https://enforcementconductboard.org/<br />
current-consultations/<br />
Alan J. Smith FCI<strong>CM</strong> is Chairman<br />
of the High Court Enforcement Officers<br />
Association (HCEOA)<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 38
ANNUAL<br />
GENERAL MEETING<br />
The ninth Annual General Meeting of the<br />
Chartered Institute of Credit Management<br />
will be held on Thursday, 22 June <strong>2023</strong> at The<br />
British Psychological Society, 30 Tabernacle<br />
Street, London, EC2A 4UE at 13:00 (or at the<br />
rising of the Advisory Council from its preceding<br />
meeting, whichever is later).<br />
If you plan to attend, please advise via email to<br />
governance@cicm.com as soon as you are able,<br />
and no later than 13:00 on Wednesday, 21 June<br />
<strong>2023</strong>.<br />
By order of the Executive Board<br />
Sue Chapple FCI<strong>CM</strong><br />
Chief Executive<br />
To read the Notice, visit:<br />
http://www.cicm.com/about-cicm/governance/<br />
<strong>CM</strong><br />
CREDIT MANAGEMENT<br />
THE CI<strong>CM</strong>'S HIGHLY ACCLAIMED MAGAZINE<br />
Credit Management, the magazine of the Chartered Institute of Credit<br />
Management (CI<strong>CM</strong>), is the leading publication in its field. The magazine<br />
includes full coverage of consumer and trade credit, export and company<br />
news, as well as in-depth features, profiles and opinions. To receive the free<br />
magazine you must be a member of the CI<strong>CM</strong> or subscribe.<br />
SPECIAL<br />
FEATURES<br />
IN DEPTH<br />
INTERVIEWS<br />
ASK THE<br />
EXPERTS<br />
GLOBAL<br />
NEWS<br />
LEGAL<br />
MATTERS<br />
INTERNATIONAL<br />
TRADE<br />
CURRENCY<br />
EXCHANGE<br />
HR<br />
MATTERS<br />
MOBILE DIGITAL<br />
EDITION<br />
EDUCATIONAL<br />
STUDIES<br />
THE LEADING JOURNAL FOR CONSUMER AND COMMERCIAL CREDIT PROFESSIONALS<br />
TO SUBSCRIBE CONTACT: T: 01780 722903<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 39
LEGAL MATTERS<br />
An Unlucky Break<br />
Can a holidaymaker suffering an injury overseas<br />
bring a claim against a UK credit card company, even<br />
if she was not its customer?<br />
AUTHOR – Peter Walker<br />
BREAK a leg!’ is a theatrical<br />
expression meaning good luck!<br />
but for one holiday maker there<br />
were financial complications<br />
too. In addition to the medical<br />
issues there was a combination<br />
of a consumer credit agreement, the Consumer<br />
Credit Act 1974, and an insolvent travel agent,<br />
all familiar stories for credit managers, and<br />
even Brexit made an appearance. The law issues<br />
had to be sorted out by the judges of the Court<br />
of Appeal in Cooper v The Freedom Travel Group<br />
Ltd [<strong>2023</strong>] 1 WLR 663.<br />
It started with a husband, who booked a<br />
holiday in Greece for him and his wife. He took<br />
out his credit card, and the result was a credit<br />
agreement regulated by the Consumer Credit<br />
Act 1974. This was used to finance the deposit,<br />
although the husband paid the remaining<br />
amount due by other means. He wisely obtained<br />
travel insurance but also separately.<br />
The couple went on holiday, but in Greece the<br />
wife unfortunately fell and suffered a fracture in<br />
her left leg. When she had returned to England,<br />
she commenced litigation against the travel<br />
company, the original defendant. The word<br />
‘original’ hints at forthcoming complications.<br />
Terms and conditions<br />
But there was firstly Regulation 15(2) of the<br />
Package, Travel, Package Holidays and Package<br />
Tours Regulations 1992. This states that a<br />
holiday company is liable to a consumer for any<br />
damage suffered either by failure to perform<br />
the contract, or by its improper performance.<br />
The definition of consumer is important,<br />
because the wife as claimant was not a party<br />
to the contract. Regulation 2(2) covered what<br />
it calls the ‘principal contractor, which in this<br />
instance was the husband. A consumer is also<br />
any person of whom the principal contractor<br />
agrees to purchase the package holiday. The<br />
claimant therefore asserted that the original<br />
defendant was the organiser, and that she was a<br />
consumer protected by the Regulations.<br />
All seemed to be well and clear cut, when<br />
the claimant accepted an offer by the original<br />
defendant to compromise liability. All that was<br />
needed was for a court to determine how much.<br />
There followed the first complication,<br />
because the original defendant was a wholly<br />
owned subsidiary of Thomas Cook Limited,<br />
which went into liquidation. Other subsidiaries<br />
followed suit, and the holiday insurance was of<br />
no help due to the excess of £5,000. The first<br />
defendant in any event was self-insured for a<br />
large amount, i.e., over £2m of any claim.<br />
There was, of course, the Consumer Credit<br />
Act 1974, particularly section 75. A debtor<br />
under a debtor-creditor supplier agreement,<br />
for example, with a claim against a supplier<br />
may have a like claim against the creditor. The<br />
wife however was not a party to the agreement,<br />
so she was strictly not a debtor, but could the<br />
definition of debtor be extended to encompass<br />
a claim by her against the credit card company?<br />
Court of Appeal<br />
Whatever the position, the lower courts threw<br />
out such a claim. It was now time for an appeal,<br />
which firstly stated that those courts were<br />
wrong to have rejected the section 75 claim. The<br />
District Judge, Simkiss J, was allegedly incorrect<br />
to reject such a claim by reason of the first<br />
defendant’s admission of liability. There was<br />
also the question of costs, but the first appeal<br />
was rejected. Simkiss J thought that the wife<br />
was not a debtor, because, for example, she was<br />
not liable to repay anything.<br />
The EU then appeared in the form of Package<br />
Travel Directive (Council Directive 90/314/EEC<br />
of 13 June 1990). Simkiss J referred to Marleasing<br />
SA v La Commercial Internacional de Alimentación<br />
SA (Case C-106/89) [1990] ECR, where there was<br />
a ruling that domestic law must be harmonious<br />
with EU law. This would include the definition<br />
of ‘debtor’ for the purposes of section 75 of the<br />
Consumer Credit Act.<br />
The judges of the Court of Appeal then became<br />
involved, and they started with basic principles.<br />
Section 8(1) of the Consumer Credit Act, for<br />
example, defined a consumer credit agreement<br />
as an agreement between an individual or<br />
‘debtor’ and a ‘creditor’ which provides credit to<br />
the debtor. Credit includes ‘a cash loan and any<br />
other financial accommodation’ (s9(1)). Apart<br />
from the obvious, the meaning of ‘creditor’ can<br />
be extended to the person to whom the rights<br />
and obligations have been assigned specifically<br />
or by operation of law.<br />
Regulations<br />
In addition to these consumer credit provisions<br />
there are the Package Travel, Package Holidays<br />
and Package Tours Regulations 1992 (SI<br />
1992/3288). Regulation 2(2) defines ‘consumer’<br />
as the person agreeing to take the package<br />
(‘the principal contractor’), or ‘any person on<br />
whose behalf the principal contractor agrees to<br />
purchase the package (‘the other beneficiaries’).<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 40
❝<br />
The judges of the Supreme Court noted that the purpose of the transaction<br />
was an enjoyable experience, so the contract should be interpreted broadly.<br />
The defendant had promised to provide a holiday of a reasonable standard, so the<br />
assault amounted to an improper performance of the contract.<br />
❝<br />
If they transfer the package, the recipient<br />
becomes a ‘transferee’. Regulation 15<br />
emphasises that ‘the other party’ is liable to<br />
the consumer for 'the proper performance<br />
of the obligations under the contract’.<br />
Regulation 16 adds that the other party must<br />
provide evidence of security for any refund.<br />
There is a complication in this case<br />
because of the overseas element, and this<br />
was discussed by the Law Lords a few years<br />
earlier in Office of Fair Trading v Lloyds TSB<br />
Bank plc [2008] AC 316. In the Freedom Travel<br />
Group case Nicola Davies LJ considered that<br />
the emphasis was consumer protection.<br />
European law passed the right of the husband<br />
as debtor to the wife as a consumer. The<br />
word ‘debtor’ was to be widely interpreted as<br />
an individual who receives credit.<br />
In relation to section 75 of the Consumer<br />
Credit Act Nicola Davies LJ pointed out<br />
that the word ‘debtor’ had ‘a clear and<br />
unambiguous meaning, namely the<br />
contractual debtor’. The judge in the lower<br />
court correctly found that the wife was<br />
not a debtor. But she was not pursuing a<br />
contractual debt – she was really making a<br />
statutory claim.<br />
Serious assault<br />
Nicola Davies LJ therefore considered a<br />
recent Supreme Court decision, X v Kuoni<br />
Travel Ltd [2021] 1 WLR 3910. A husband<br />
and wife went on holiday to Sri Lanka. The<br />
package included return flights to the UK and<br />
15 nights’ all-inclusive hotel accommodation.<br />
In the terms of the agreement the defendant<br />
agreed to accept responsibility should,<br />
because of its fault, the holiday arrangements<br />
be not as described in the brochure, or<br />
not up to a reasonable standard. It would<br />
also accept liability if the other person or<br />
member of his party is ‘killed or injured as<br />
a result of an activity forming part of those<br />
holiday arrangements’. It would not accept<br />
liability if such death or injury was not its<br />
fault or the fault of its agents or suppliers.<br />
The agreement purported to exclude liability<br />
for unforeseen circumstances, which the<br />
defendant, agents or suppliers could have<br />
‘anticipated or avoided’.<br />
These provisions were the background to<br />
the holiday, when in the early hours of one<br />
night the wife was in the hotel grounds. She<br />
met the hotel electrician, who was on duty<br />
and wearing his maintenance-staff uniform.<br />
She accepted his offer to show her a short<br />
cut to the reception area, but he lured her<br />
to the engineering room, where he seriously<br />
assaulted her.<br />
She subsequently claimed damages<br />
against the defendant alleging breach of<br />
contract. The cause of action was under<br />
the Package Holidays and Package Tours<br />
Regulations, which implemented the EU<br />
Council Directive 90/314/EEC of 13 June 1990<br />
on package travel, package holidays and<br />
package tours.<br />
The judges of the Supreme Court noted<br />
that the purpose of the transaction was an<br />
enjoyable experience, so the contract should<br />
be interpreted broadly. The defendant had<br />
promised to provide a holiday of a reasonable<br />
standard, so the assault amounted to an<br />
improper performance of the contract.<br />
The defendant furthermore was organiser<br />
of the package holiday. The electrician was<br />
an employee of the hotel, a supplier of<br />
services, so the defendant as organiser could<br />
not invoke the exemption from liability<br />
provided by Regulation 5(2), i.e., force<br />
majeure or an unforeseeable event.<br />
Debtor ruling<br />
This ruling was in the minds of the judges<br />
in the Freedom Travel Group case, but Nicola<br />
Davies LJ emphasised that the wife, the<br />
claimant, was not a party to the agreement,<br />
neither for the holiday nor for the credit. Her<br />
uninjured husband set up the transactions,<br />
so he was the debtor. In The Sussex Peerage<br />
Case [1844] 11 C1 & Fin 85, 143, Tindall CJ<br />
said: “If the words of the Statute are in<br />
themselves precise and unambiguous, then<br />
no more can be necessary than to expound<br />
those words in their natural and ordinary<br />
sense.” The provisions of section 75 did not<br />
apply to his wife, and she had no contractual<br />
rights. That provides certainty for providers<br />
of credit in these circumstances. That’s good<br />
news for credit managers of credit card<br />
companies.<br />
That is not good news for the injured<br />
claimant in the Freedom Travel Group<br />
case. There were, however, the Package<br />
Holidays and Package Tours Regulations<br />
1992 and Regulation 15 with the emphasis<br />
on consumer protection. She could make a<br />
statutory claim under this legislation.<br />
Peter Walker is a freelance finance writer.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 41
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Rated as Excellent
WORKING LIFE<br />
Flexible Working<br />
How to improve your workplace productivity, wherever you are.<br />
AUTHOR – Natascha Whitehead<br />
❝<br />
Utilise the social<br />
aspect of working in<br />
the office to speak<br />
to your colleagues<br />
face-to-face; in<br />
the same breath,<br />
have boundaries<br />
to avoid being<br />
distracted by others<br />
in the workplace,<br />
especially when you<br />
have work to do<br />
that requires extra<br />
concentration.<br />
❝<br />
IT’S no surprise that a large majority<br />
of employers (74 percent) in the<br />
finance sector currently offer their<br />
employees hybrid working, as revealed<br />
in our UK <strong>2023</strong> Salary and Recruiting<br />
Trends guide. On top of this, a flexible<br />
approach, where professionals can decide how<br />
many days a week they spend in the office, could<br />
tempt almost two thirds (63 percent) of credit<br />
professionals to change jobs. However, with<br />
this sought-after freedom comes responsibility<br />
to remain productive and achieve positive<br />
results regardless of where you’re working.<br />
Ultimately, with hybrid work now a reality for<br />
most, and the possibility of fully remote roles<br />
on the rise, now is a great time to reflect on how<br />
to work effectively wherever you are. Here’s my<br />
four top tips to get going from both an officebased<br />
and remote setting.<br />
Create a to-do list<br />
Especially when it comes to credit management,<br />
being organised allows you to perform your<br />
critical role and is a key to success. Writing<br />
a to-do list is a trusty method, effective for<br />
both office-based and remote working, not to<br />
mention the satisfaction of ticking off what<br />
you’ve accomplished! Daily task lists help you to<br />
keep track of priorities and structurally frame<br />
the day ahead. If you lose focus working from<br />
home or feel detached from your professional<br />
purpose in a remote setting, listing what you<br />
need to get done can act as great guidance.<br />
Similarly, it’s easy to become distracted by a<br />
busy office, where more work may come your<br />
way, so referring to a to-do list can ground you<br />
in your current responsibilities and allow you<br />
to make a judgement on your realistic work<br />
capacity for the day.<br />
Take regular breaks<br />
Productivity is not the result of being glued<br />
to your screen; it’s important to take short<br />
but regular breaks from your work in order<br />
to maintain concentration and performance<br />
throughout the day. To monitor this, you could<br />
set alarms or reminders to step away from your<br />
professional responsibilities, whether you’re in<br />
the office or working remotely. Since attention<br />
to detail is crucial for roles within credit<br />
management, taking breaks is important to<br />
ensure you remain focused, meaning you’ll be<br />
less likely to make mistakes. Social breaks are<br />
also beneficial for boosting morale; set aside<br />
time for a coffee with your colleagues if you’re<br />
in the office or call a friend for a catch-up when<br />
working from home. Going for a walk is also<br />
effective for blowing off the cobwebs, allowing<br />
you to return to work refreshed and inspired.<br />
Communicate mindfully<br />
Communicating well with your colleagues<br />
and supporting one another can help create a<br />
sense of belonging and an openness to ask and<br />
answer questions can certainly facilitate career<br />
progression. This kind of positive environment<br />
lays the foundation for employee engagement.<br />
Whilst credit professionals benefit from being<br />
independent thinkers, able to make quick and<br />
confident decisions, it is also a people-oriented<br />
industry which requires active listening and<br />
great communication skills. When working<br />
remotely, regular communication through a<br />
virtual platform such as Microsoft Teams can<br />
enable you to feel connected from afar and<br />
still reap the benefits of interacting with your<br />
teammates.<br />
Utilise the social aspect of working in the<br />
office to speak to your colleagues face-to-face;<br />
in the same breath, have boundaries to avoid<br />
being distracted by others in the workplace,<br />
especially when you have work to do that<br />
requires extra concentration. You could put<br />
headphones on or politely express to your<br />
colleagues that you need to work uninterrupted<br />
at that time.<br />
Prioritise your set-up<br />
A suitable set-up is essential and ought to be<br />
prioritised regardless of where you’re working.<br />
If you are able to, sit on a comfortable chair,<br />
with your screen at eye-level, to avoid straining<br />
your back or neck. Natural lighting, whilst<br />
not always possible, is preferable and can<br />
even improve your mood and energy levels.<br />
Similarly, fresh air helps you think more<br />
clearly and has the power to reduce stress. An<br />
organised workstation is thought to translate<br />
to feeling more organised workwise. As well<br />
as this, having some framed words of wisdom<br />
nearby, or saved as your desktop background,<br />
is a nice way to spark motivation and self-belief.<br />
Ultimately, working in a physically comfortable<br />
and pleasant setting will positively impact your<br />
productivity levels.<br />
Whilst flexibility in terms of where we work<br />
has become the new norm, it’s not without its<br />
challenges, and fluctuating between officebased<br />
and remote work will have proved<br />
unsettling for some professionals. However,<br />
having these tools at your fingertips should<br />
help you to stay focused in the office and<br />
maximise productivity in a remote setting,<br />
so you can thrive on your credit career path<br />
wherever you are.<br />
Natascha Whitehead is Business<br />
Director of Hays Credit Management.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 43
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improves productivity by 3X and accelerates<br />
collections by up to 34 percent. Predictive analytics<br />
provide insight into payor behavior and an online<br />
portal enables customers to access their accounts<br />
and pay at any time.<br />
T: +44 (0)7465 423 538<br />
E: marketing@yaypay.com<br />
W: www.quadient.com/en-gb/ar-automation<br />
HighRadius provides a cloud-based Integrated<br />
Receivable Platform, powered by machine learning<br />
and AI. Our Technology empowers enterprise<br />
organisations to reduce cycle time in the order-tocash<br />
process and increase working capital availability<br />
by automating receivables and payments processes<br />
across credit, electronic billing and payment<br />
processing, cash application, deductions, and<br />
collections.<br />
T: +44 (0) 203 997 9400<br />
E: infoemea@highradius.com<br />
W: www.highradius.com<br />
Reduce or eliminate manual tasks, allowing AR<br />
teams to focus on actions that drive results, and<br />
strengthen decision intelligence to deliver significant<br />
value to the organisation. Cash Application / Credit<br />
& Risk Management / Collections Management /<br />
Disputes and Deductions Management / Team & Task<br />
Management and AR Intelligence.<br />
Optimise working capital by driving world-class<br />
order-to-cash processes and leveraging decision<br />
intelligence to drive better business outcomes.<br />
To learn more visit www.blackline.com/solutions/<br />
accounts-receivable-automation/<br />
T: +44(0) 203 318 5941<br />
E: sales@blackline.com<br />
W: www.blackline.com<br />
Our Creditor Services team can advise on the best<br />
way for you to protect your position when one of<br />
your debtors enters, or is approaching, insolvency<br />
proceedings. Our services include assisting with<br />
retention of title claims, providing representation at<br />
creditor meetings, forensic investigations, raising<br />
finance, financial restructuring and removing the<br />
administrative burden – this includes completing<br />
and lodging claim forms, monitoring dividend<br />
prospects and analysing all Insolvency Reports and<br />
correspondence.<br />
T: +44 (0)2073 875 868 - London<br />
T: +44 (0)2920 495 444 - Cardiff<br />
W: menzies.co.uk/creditor-services<br />
FIS GETPAID solution is a fully integrated, webbased<br />
order-to cash (O2C) solution that helps<br />
companies improve operational efficiencies, lower<br />
DSO, and increase cash flow. The solution suite<br />
includes strategic risk-based collections, artificial<br />
intelligence, process automation, credit risk<br />
management, deduction and dispute resolution and<br />
cash application. FIS is a global leader in financial<br />
services technology, providing software, services<br />
and outsourcing of the technology that empowers<br />
the financial world.<br />
T: +447730500085<br />
E: getinfo@fisglobal.com.<br />
W: www.fisglobal.com<br />
With 130+ years of experience, Graydon is a leading<br />
provider of business information, analytics, insights<br />
and solutions. Graydon helps its customers to make<br />
fast, accurate decisions, enabling them to minimise<br />
risk and identify fraud as well as optimise opportunities<br />
with their commercial relationships. Graydon<br />
uses 130+ international databases and the information<br />
of 90+ million companies. Graydon has offices in<br />
London, Cardiff, Amsterdam and Antwerp. Since 2016,<br />
Graydon has been part of Atradius, one of the world’s<br />
largest credit insurance companies.<br />
T: +44 (0)208 515 1400<br />
E: customerservices@graydon.co.uk<br />
W: www.graydon.co.uk<br />
Tinubu Square is a trusted source of trade credit<br />
intelligence for credit insurers and for corporate<br />
customers. The company’s B2B Credit Risk<br />
Intelligence solutions include the Tinubu Risk<br />
Management Center, a cloud-based SaaS platform;<br />
the Tinubu Credit Intelligence service and the<br />
Tinubu Risk Analyst advisory service. Over 250<br />
companies rely on Tinubu Square to protect their<br />
greatest assets: customer receivables.<br />
T: +44 (0)207 469 2577 /<br />
E: uksales@tinubu.com<br />
W: www.tinubu.com.<br />
Building on our mature and hugely successful<br />
product and world class support service, we are<br />
re-imagining our risk awareness module in 2019 to<br />
allow for hugely flexible automated worklists and<br />
advanced visibility of areas of risk. Alongside full<br />
integration with all credit scoring agencies (e.g.<br />
Creditsafe), this makes Credica a single port-of-call<br />
for analysis and automation. Impressive results<br />
and ROI are inevitable for our customers that also<br />
have an active input into our product development<br />
and evolution.<br />
T: 01235 856400<br />
E: info@credica.co.uk<br />
W: www.credica.co.uk<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 44
Each of our Corporate Partners is carefully selected for<br />
their commitment to the profession, best practice in the<br />
Credit Industry and the quality of services they provide.<br />
We are delighted to showcase them here.<br />
They're waiting to talk to you...<br />
Hays Credit Management is a national specialist<br />
division dedicated exclusively to the recruitment of<br />
credit management and receivables professionals,<br />
at all levels, in the public and private sectors. As<br />
the CI<strong>CM</strong>’s only Premium Corporate Partner, we<br />
are best placed to help all clients’ and candidates’<br />
recruitment needs as well providing guidance on<br />
CV writing, career advice, salary bench-marking,<br />
marketing of vacancies, advertising and campaign<br />
led recruitment, competency-based interviewing,<br />
career and recruitment trends.<br />
T: 07834 260029<br />
E: karen.young@hays.com<br />
W: www.hays.co.uk/creditcontrol<br />
Court Enforcement Services is the market<br />
leading and fastest growing High Court Enforcement<br />
company. Since forming in 2014, we have managed<br />
over 100,000 High Court Writs and recovered more<br />
than £187 million for our clients, all debt fairly<br />
collected. We help lawyers and creditors across all<br />
sectors to recover unpaid CCJ’s sooner rather than<br />
later. We achieve 39 percent early engagement<br />
resulting in market-leading recovery rates. Our<br />
multi-award-winning technology provides real-time<br />
reporting 24/7.<br />
T: +44 (0)1992 367 092<br />
E: a.whitehurst@courtenforcementservices.co.uk<br />
W: www.courtenforcementservices.co.uk<br />
Shoosmiths’ highly experienced team will work<br />
closely with credit teams to recover commercial<br />
debts as quickly and cost effectively as possible.<br />
We have an in depth knowledge of all areas of debt<br />
recovery, including:<br />
• Pre-litigation services to effect early recovery and<br />
keep costs down • Litigation service • Insolvency<br />
• Post-litigation services including enforcement<br />
As a client of Shoosmiths, you will find us quick to<br />
relate to your goals, and adept at advising you on the<br />
most effective way of achieving them.<br />
T: 03700 86 3000<br />
E: paula.swain@shoosmiths.co.uk<br />
W: www.shoosmiths.co.uk<br />
Forums International has been running Credit and<br />
Industry Forums since 1991 covering a range of<br />
industry sectors and international trading. Attendance<br />
is for credit professionals of all levels. Our forums<br />
are not just meetings but communities which<br />
aim to prepare our members for the challenges<br />
ahead. Attending for the first time is free for you to<br />
gauge the benefits and meet the members and we<br />
only have pre-approved Partners, so you will never<br />
intentionally be sold to.<br />
T: +44 (0)1246 555055<br />
E: info@forumsinternational.co.uk<br />
W: www.forumsinternational.co.uk<br />
Data Interconnect provides corporate Credit Control<br />
teams with Accounts Receivable software for bulk<br />
e-invoicing, collections, dispute management and<br />
invoice finance. The modular, cloud-based Corrivo<br />
platform can be configured for any business model.<br />
It integrates with all ERP systems and buyer AP<br />
platforms or tax regimes. Customers can self-serve<br />
on mobile friendly portals, however their invoices are<br />
delivered, and Credit Controllers can easily extract<br />
data for compliance, audit and reporting purposes.<br />
T: +44 (0)1367 245777<br />
E: sales@datainterconnect.co.uk<br />
W: www.datainterconnect.com<br />
Serrala optimizes the Universe of Payments for<br />
organisations seeking efficient cash visibility<br />
and secure financial processes. As an SAP<br />
Partner, Serrala supports over 3,500 companies<br />
worldwide. With more than 30 years of experience<br />
and thousands of successful customer projects,<br />
including solutions for the entire order-to-cash<br />
process, Serrala provides credit managers and<br />
receivables professionals with the solutions they<br />
need to successfully protect their business against<br />
credit risk exposure and bad debt loss.<br />
T: +44 118 207 0450<br />
E: contact@serrala.com<br />
W: www.serrala.com<br />
American Express® is a globally recognised<br />
provider of business payment solutions, providing<br />
flexible capabilities to help companies drive<br />
growth. These solutions support buyers and<br />
suppliers across the supply chain with working<br />
capital and cashflow.<br />
By creating an additional lever to help support<br />
supplier/client relationships American Express is<br />
proud to be an innovator in the business payments<br />
space.<br />
Key IVR provide a suite of products to assist companies<br />
across Europe with credit management. The<br />
service gives the end-user the means to make a<br />
payment when and how they choose. Key IVR also<br />
provides a state-of-the-art outbound platform<br />
delivering automated messages by voice and SMS.<br />
In a credit management environment, these services<br />
are used to cost-effectively contact debtors and<br />
connect them back into a contact centre or<br />
automated payment line.<br />
The UK’s No1 Insolvency Score, available as a<br />
platform to help businesses manage risk and<br />
achieve growth. The only independently owned<br />
UK credit referencing agency for businesses. We<br />
have modernised the way companies consume<br />
data, to power businesses decisions with the most<br />
important data taken in real-time feeds, ensuring<br />
our customers are always the first to know. Enabling<br />
them to deliver best in class sales, credit risk<br />
management and compliance.<br />
T: +44 (0)1273 696933<br />
W: www.americanexpress.com<br />
T: +44 (0) 1302 513 000<br />
E: sales@keyivr.com<br />
W: www.keyivr.com<br />
T: +44 (0)330 460 9877<br />
E: sales@redflagalert.com<br />
W: www.redflagalert.com<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 45
CHARTERED INSTITUTE OF CREDIT MANAGEMENT •<br />
Introducing our<br />
CORPORATE PARTNERS<br />
Each of our Corporate Partners is carefully selected for their commitment to<br />
the profession, best practice in the Credit Industry and the quality of services<br />
they provide. We are delighted to showcase them here.<br />
VISMA | Onguard is a specialist in credit management<br />
software and market leader in innovative solutions for<br />
order-to-cash. Our integrated platform ensures an optimal<br />
connection of all processes in the order-to-cash<br />
chain. This enhanced visibility with the secure sharing<br />
of critical data ensures optimal connection between<br />
all processes in the order-to-cash chain, resulting<br />
in stronger, longer-lasting customer relationships<br />
through improved and personalised communication.<br />
The VISMA | Onguard platform is used for successful<br />
credit management in more than 70 countries.<br />
T: 020 3868 0947<br />
E: edan.milner@onguard.com<br />
W: www.onguard.com<br />
Our Corporate Partnerships give organisations<br />
a unique opportunity to work with<br />
us and demonstrate their commitment to<br />
professionalism and best practice in the<br />
Credit industry.<br />
We have combined a number of<br />
compelling features that will deliver<br />
great value through sustained exposure<br />
to our membership of over 7,000 credit<br />
professionals, decision-makers and key<br />
industry figures.<br />
For further information please contact :<br />
the Head of Strategic Relationships,<br />
luke.sculthorp@cicm.com<br />
The CI<strong>CM</strong> Benevolent Fund<br />
is here to support members<br />
of the CI<strong>CM</strong> in times of need.<br />
Some examples of how CI<strong>CM</strong> have helped our members are:<br />
• Financed the purchase of a mobility scooter for a disabled<br />
member.<br />
• Helped finance the studies of the daughter of a member who<br />
became unexpectedly ill.<br />
• Financed the purchase of computer equipment to assist an<br />
unemployed member set up a business.<br />
• Contributed towards the purchase of an orthopaedic bed for one<br />
member whose condition was thereby greatly eased.<br />
• Helped with payment for a drug, not available on the NHS, for<br />
medical treatment of another member.<br />
If you or any dependants are in need or in distress, please apply today – we are here to<br />
help. (Your application will then be reviewed by the CI<strong>CM</strong> Benevolent Fund committee<br />
and you will be advised of their decision as quickly as possible)<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 46
PAYMENT TRENDS<br />
Keep On Moving<br />
Sectors and regions across the UK and Ireland<br />
continue to plug away at reducing late payments.<br />
AUTHOR – Rob Howard<br />
THE latest late payment<br />
data is, for the most part,<br />
positive, with a number of<br />
regions and sectors across<br />
the board continuing<br />
to make progress. The<br />
average Days Beyond Terms (DBT) across<br />
regions in the UK saw no change from<br />
the previous month, while the average<br />
sector figure decreased by 0.3 days. In<br />
Ireland, average DBT across the regions<br />
and sectors reduced by 1.2 and 6.6 days<br />
respectively. Average DBT across the<br />
four provinces of Ireland decreased by<br />
0.1 days.<br />
SECTOR SPOTLIGHT<br />
The UK sector figures can be split right<br />
down the middle, with 11 sectors on<br />
the up and 11 on the slide. Looking at<br />
the positives, the Business from Home<br />
sector saw the biggest improvement,<br />
with a cut of 9.5 days giving them an<br />
overall DBT of 4.9 days, moving them up<br />
to second place in the standings. Taking<br />
top spot, and now the best performing<br />
sector is Real Estate. A reduction of<br />
8.3 days giving it an overall DBT of 2.9<br />
days. Looking at the negatives, the<br />
Entertainment sector saw the biggest<br />
jump, with an increase of 7.5 days to its<br />
DBT. The Transportation, Storage, Water<br />
and Waste sectors are also moving in the<br />
wrong direction – both saw a rise of 5.9<br />
days.<br />
The outlook across Irish sectors is<br />
mostly a positive one, with only three<br />
of the 20 sectors going backwards. Of<br />
the trio, only the Manufacturing sector<br />
saw a significant jump: an increase<br />
of 13.3 days means it is now the worst<br />
performing sector in Ireland with an<br />
overall DBT of 31.1 days. Overtaking the<br />
Manufacturing sector is the Water and<br />
Waste sector, which made the biggest<br />
improvement, slashing its DBT by a<br />
hefty 40.0 days, taking its overall DBT to<br />
29.8 days. Also, very much on the up is<br />
the Business Admin & Support sector,<br />
with a reduction of 27.1 days to its DBT.<br />
REGIONAL SPOTLIGHT<br />
Like the sector figures, the UK regional<br />
data is a tale of two halves, with five<br />
regions getting better and six regions<br />
getting worse, but the vast majority of<br />
changes either way are minimal. The<br />
South East and Wales made the biggest<br />
improvements, reducing DBT by 2.3 and<br />
2.2 days respectively. East Anglia saw the<br />
biggest increase, with a rise of 3.0 days<br />
taking its overall DBT to 17.8 days.<br />
Similarly, over in Ireland, things are<br />
split. 11 regions made improvements,<br />
while 13 saw increases to DBT. Focusing<br />
on the glass half full regions, it was a<br />
standout month for Monaghan, which<br />
saw a hugely impressive reduction of 76.0<br />
days to DBT, meaning it joins Limerick<br />
(-3.7 days) in the zero days overall DBT<br />
club. Louth also deserves an honourable<br />
mention, reducing its DBT by a sizeable<br />
35.1 days. At the other end of the scale,<br />
Wexford also deserves a mention, but<br />
for the wrong reasons, following an<br />
increase of 38.1 days. The rise means<br />
it slips way down the rankings with an<br />
overall DBT of 42.5 days. However, a 26.9<br />
days increase means that Westmeath is<br />
now far and away the worst performing<br />
region in Ireland with a worrying overall<br />
DBT of 87.9 days.<br />
Across the four Irish provinces,<br />
Connacht has overtaken Munster as<br />
the best performing province with an<br />
overall DBT of 7.5 days. Leinster remains<br />
the worst performing province, but is<br />
at least moving in the right direction<br />
thanks to a reduction of 3.7 days to its<br />
DBT.<br />
❝<br />
Transportation, Storage, Water<br />
and Waste sectors are also<br />
moving in the wrong direction –<br />
both saw a rise of 5.9 days.<br />
❝<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 47
STATISTICS<br />
Data supplied by the Creditsafe Group<br />
Top Five Prompter Payers<br />
Region March 23 Change from February 23<br />
Wales 10.3 -2.2<br />
South West 10.5 1<br />
East Midlands 11.5 -1.2<br />
North West 11.6 -0.2<br />
South East 11.7 -2.3<br />
Bottom Five Poorest Payers<br />
Region March 23 Change from February 23<br />
Northern Ireland 19.5 0.2<br />
East Anglia 17.8 3<br />
Scotland 15.7 1.5<br />
London 14 -0.6<br />
West Midlands 13.1 0.1<br />
Top Five Prompter Payers<br />
Sector May 22 Change from April 22<br />
Real Estate 2.9 -8.3<br />
Business from Home 4.9 -9.5<br />
Energy Supply 6.8 -2.8<br />
Financial and Insurance 7.7 -0.8<br />
Education 8.2 -1.2<br />
Bottom Five Poorest Payers<br />
Sector May 22 Change from April 22<br />
Mining and Quarrying 30.2 -2.1<br />
Manufacturing 17.2 0.4<br />
Business Admin & Support 16.4 -0.9<br />
Water & Waste 15.8 5.9<br />
Transportation and Storage 14 5.9<br />
Getting worse<br />
Entertainment 7.5<br />
Transportation and Storage 5.9<br />
Water & Waste 5.9<br />
Health & Social 3.5<br />
Hospitality 2.6<br />
Other Service 2<br />
Professional and Scientific 1.5<br />
Construction 0.8<br />
International Bodies 0.8<br />
Manufacturing 0.4<br />
Agriculture, Forestry and Fishing 0.1<br />
Getting better<br />
Business from Home -9.5<br />
Real Estate -8.3<br />
Dormant -5.9<br />
IT and Comms -3.4<br />
Energy Supply -2.8<br />
Mining and Quarrying -2.1<br />
Wholesale and retail trades -1.7<br />
Education -1.2<br />
SCOTLAND<br />
1.5 DBT<br />
Business Admin & Support -0.9<br />
Financial and Insurance -0.8<br />
Public Administration -0.4<br />
NORTHERN<br />
IRELAND<br />
0.2 DBT<br />
SOUTH<br />
WEST<br />
1 DBT<br />
WALES<br />
-2.2 DBT<br />
NORTH<br />
WEST<br />
-0.2 DBT<br />
WEST<br />
MIDLANDS<br />
0.1 DBT<br />
YORKSHIRE &<br />
HUMBERSIDE<br />
0.7 DBT<br />
EAST<br />
MIDLANDS<br />
-1.2 DBT<br />
LONDON<br />
-0.6 DBT<br />
SOUTH<br />
EAST<br />
-2.3 DBT<br />
EAST<br />
ANGLIA<br />
3 DBT<br />
Region<br />
Getting Better – Getting Worse<br />
-2.3<br />
-2.2<br />
-1.2<br />
-0.6<br />
-0.2<br />
3<br />
1.5<br />
1<br />
0.7<br />
0.2<br />
0.1<br />
South East<br />
Wales<br />
East Midlands<br />
London<br />
North West<br />
East Anglia<br />
Scotland<br />
South West<br />
Yorkshire and Humberside<br />
Northern Ireland<br />
West Midlands<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 48
PAYMENT TRENDS<br />
Getting worse<br />
MUNSTER<br />
3.9 DBT<br />
KERRY<br />
xx DBT<br />
CONNACHT<br />
0 DBT<br />
CLARE<br />
2.8 DBT<br />
LIMERICK<br />
-3.7 DBT<br />
LONGFORD<br />
20.8 DBT<br />
TIPPERARY<br />
2.9 DBT<br />
MONAGHAN<br />
-76 DBT<br />
WICKLOW<br />
-6 DBT<br />
KILKENNY<br />
5 DBT<br />
ULSTER<br />
0.2 DBT<br />
LEINSTER<br />
-3.7 DBT<br />
LOUTH<br />
0 DBT<br />
WICKLOW<br />
-6 DBT<br />
Manufacturing 13.3<br />
Real Estate 1.3<br />
Entertainment 1<br />
Getting better<br />
Water & Waste -40<br />
Business Admin & Support -27.1<br />
Top Five Prompter Payers – Ireland<br />
Region March 23 Change from February<br />
Limerick 0 -3.7<br />
Monaghan 0 -76<br />
Tipperary 3.6 2.9<br />
Wicklow 5.5 -6<br />
Clare 6 2.8<br />
Bottom Five Poorest Payers – Ireland<br />
Region March 23 Change from February<br />
Westmeath 87.9 26.9<br />
Wexford 42.5 38.1<br />
Kildare 37.1 9.3<br />
Longford 36.6 20.8<br />
Kilkenny 24.2 5<br />
Region (IRISH PROVINCES)<br />
Region March 23 Change from February<br />
Connacht 7.5 0<br />
Munster 9.1 3.9<br />
Ulster 10.9 0.2<br />
Leinster 25.3 -3.7<br />
Other Service -17.9<br />
Agriculture Forestry and Fishing -13<br />
Wholesale and retail trade -12<br />
Construction -9.4<br />
Financial and Insurance -8<br />
Energy Supply -6<br />
Transportation and Storage -5.6<br />
Professional and Scientific -4.5<br />
IT and Comms -3.4<br />
Health & Social -1.3<br />
Hospitality -0.1<br />
Nothing changed<br />
Education 0<br />
Top Five Prompter Payers – Ireland<br />
Sector March 23 Change from February<br />
Education 0 0<br />
International Bodies 0 0<br />
Public Administration 0 0<br />
Financial and Insurance 2.7 -8<br />
Health & Social 3.9 -1.3<br />
Bottom Five Poorest Payers – Ireland<br />
Sector March 23 Change from February<br />
Manufacturing 31.1 13.3<br />
Water & Waste 29.8 -40<br />
Energy Supply 26 -6<br />
Hospitality 22.2 -0.1<br />
Wholesale and retail 17.1 -12<br />
International Bodies 0<br />
Mining and Quarryinhg 0<br />
Public Administration 0<br />
Across the four Irish<br />
provinces, Connacht has<br />
overtaken Munster as the<br />
best performing province<br />
with an overall DBT of 7.5<br />
days.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 49
LOOKING FOR<br />
YOUR NEXT<br />
CAREER MOVE?<br />
CREDIT CONTROLLER,<br />
Sunderland, £25k + superb benefits, 6 month contract<br />
Take advantage of an exciting opportunity to play an integral<br />
role in a public sector housing organisation. Initially offered as<br />
a 6-month contract, you’ll join the transactional finance team to<br />
ensure the income of the organisation is allocated correctly and<br />
collected in a timely manner from debtors. This role requires<br />
strong numerical and excel reporting skills, excellent customer<br />
service and strong interaction skills to liaise with external and<br />
internal stakeholders. Ref: 4381213<br />
Contact Andrea Organ on 0191 564 1662<br />
or andrea.organ@hays.com<br />
CREDIT CONTROLLER<br />
Oxfordshire, up to £35k<br />
Join a growing consultancy with the opportunity to be rewarded<br />
and progress in your finance career. You’ll focus on proactively<br />
reviewing and managing overdue debt, as well as raising<br />
and matching credit notes, resolving unallocated receipts<br />
and matching invoices. The successful candidate will be an<br />
experienced credit controller, with excellent communication<br />
skills and strong excel ability. Ref: 4384037<br />
Contact Luana Di Benedetto on 0186 572 7071<br />
or luana.dibenedetto@hays.com<br />
MULTI-LINGUAL CREDIT CONTROLLER<br />
Remote, £35k-£45k<br />
Join a leading international pharmaceutical business that<br />
prioritises your wellbeing. You’ll be responsible for the credit<br />
control process across the Iberian region and take<br />
a proactive approach to risk management and relationship<br />
building with internal stakeholders and external customers.<br />
Fluency in Portuguese and Spanish is essential, and French<br />
is advantageous. You must have strong IT skills and be a<br />
confident SAP user. Experience with invoice factoring is<br />
highly beneficial. Ref: 4390031<br />
Contact William Plom on 0160 376 0141<br />
or william.plom@hays.com<br />
ACCOUNTS RECEIVABLE SPECIALIST<br />
Wimbledon, up to £35k + benefits<br />
Immerse yourself in a newly created team of accounting<br />
professionals within a leading UK design and build consultancy.<br />
In your new role you’ll be responsible for payment allocation<br />
and ensuring that timely credit control processes are adhered<br />
to. The successful candidate will be experienced in accounts<br />
receivable, including credit control. You’ll have good systems<br />
and excel skills. High levels of organisation and prioritisation<br />
are also required. Ref: 4383062<br />
Contact Mark Ordona on 0756 580 0574<br />
or mark.ordona@hays.com<br />
hays.co.uk/creditcontrol<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 50<br />
© Copyright Hays plc <strong>2023</strong>. 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.<br />
The H devices are original designs protected by registration in many countries. All rights are reserved. <strong>CM</strong>-1176661255
LEGAL CREDIT CONTROLLER<br />
City of London, up to £40k + benefits<br />
A competitive new position is available in a specialist UK law<br />
firm offering clear opportunities for professional growth and<br />
career progression. Based within the credit control team, you’ll<br />
be dedicated to the reduction of aged debt, as well as building<br />
relationships with key clients. You’ll be a team-player with a keen<br />
eye for detail and some experience within the legal finance space.<br />
Ref: 4390393<br />
Contact Robert Johnson on 0203 465 0020<br />
or robert.johnson@hays.com<br />
CREDIT MANAGER<br />
North Manchester, up to £48k<br />
A reputable firm based in North Manchester is looking for a senior<br />
professional to join their team. You’ll have exceptional people<br />
management and enjoy leading a team day-to-day but can remain<br />
hands on. We’re looking for a candidate with strong managerial<br />
experience and a proven track record in the credit industry.<br />
Ref: 4389513<br />
Contact Luke Lontton on 0161 236 7272<br />
or luke.Iontton@hays.com<br />
This is just a small selection of the many opportunities<br />
we have available for credit professionals. To find out<br />
more, visit our website or contact Natascha Whitehead,<br />
Credit Management UK Lead at Hays on 07770 786433.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 51
OPINION<br />
BORN FREE<br />
It’s summer, and it’s back to school.<br />
AUTHOR – Melanie York<br />
STARTING in June, Cardiff &<br />
Vale College will welcome<br />
its third intake of students<br />
for the CI<strong>CM</strong> credit and<br />
collection training courses.<br />
Developed with the CI<strong>CM</strong><br />
and launched last October, these fully<br />
funded, online diploma courses provide<br />
formal training and practical skills to<br />
help individuals build the knowledge and<br />
confidence they need to progress in their<br />
careers. Ultimately, the training can lead<br />
to a nationally recognised qualification<br />
and CI<strong>CM</strong> Professional Membership. It’s<br />
an excellent way for those starting their<br />
careers to get free training and a good<br />
grounding in the credit and collections<br />
world.<br />
The entry-level and intermediate<br />
diplomas (Level 2 and Level 3) introduce<br />
individuals to the world of credit control.<br />
Students learn technical knowledge,<br />
including credit legislation, trade, export<br />
and consumer credit management,<br />
credit control/collections, taking control<br />
of goods, and telephone collections and<br />
skills, such as dealing with difficult<br />
situations.<br />
The CI<strong>CM</strong> advanced diploma (Level 5)<br />
is designed for people who have worked<br />
for a few years in the industry or have<br />
some qualifications in credit and collections<br />
and wish to advance their career.<br />
Students will learn advanced credit risk<br />
management, compliance with legal,<br />
regulatory, ethical and social requirements,<br />
strategic planning, legal proceedings<br />
and insolvency, strategic communications<br />
and leadership and process<br />
improvement. It also teaches business<br />
communications and personal skills,<br />
plus higher-level skills of team leadership<br />
and how to operate in complex business<br />
environments.<br />
At all stages, students have the<br />
opportunity to specialise. If they<br />
complete all three courses, they can<br />
gain a nationally recognised, official<br />
qualification leading to Professional<br />
Membership of CI<strong>CM</strong>, ultimately<br />
increasing their earning potential.<br />
Online with personal support<br />
The courses are delivered through<br />
online classes with a trainer, run in the<br />
daytime or evenings and supported with<br />
learning materials on a self-study portal.<br />
This blended, flexible approach allows<br />
students to fit their studies around work<br />
and home life. The online virtual sessions<br />
are typically two hours per week. Each<br />
course only requires five- to six- hours of<br />
additional personal study time.<br />
The courses are fully funded through<br />
the Welsh Government’s PLA (Personal<br />
Learning Accounts) programme for<br />
anyone living in Wales aged 19 or over<br />
(subject to a few eligibility criteria).<br />
No qualifications or experience are<br />
needed to enrol on the courses. CI<strong>CM</strong>'s<br />
open access policy encourages further<br />
education to upskill new entrants quickly<br />
and hopefully set them on the path<br />
towards a professional qualification.<br />
The PLA Programme was initially set<br />
up to help raise Wales's median income<br />
and currently focuses on those earning<br />
below £29,534 a year. The aim is to support<br />
young people across Wales to gain higherlevel<br />
skills, enabling them to access a<br />
broader range of job opportunities, gain<br />
higher-level employment, and improve<br />
their career and earnings potential.<br />
The CI<strong>CM</strong> and CAVC recognised<br />
that these courses are eligible for PLA<br />
funding. The PLA criteria includes highquality<br />
career advice and guidance for<br />
students from the outset to ensure they<br />
choose suitable courses. All PLA-funded<br />
courses must support key industry<br />
sectors and offer easily accessible<br />
learning modules so that participants<br />
can choose how and when they learn.<br />
The courses must also involve employers<br />
with job opportunities that can support<br />
students to enter employment or achieve<br />
a higher level. CI<strong>CM</strong> is keen to see its<br />
members support the employment of<br />
young people and their achievement of<br />
high-quality professional qualifications<br />
and, ultimately, CI<strong>CM</strong> Professional<br />
Membership<br />
CI<strong>CM</strong> teamed up with Cardiff and Vale<br />
College as it is one of the largest colleges in<br />
the UK, delivering high-quality education<br />
and training. More than 30,000 learners<br />
attend full-time and part-time courses,<br />
university qualifications, apprenticeship<br />
programmes, and dedicated employee<br />
training each year. The college is proud<br />
of its student success rates – some of<br />
the best in the sector – and its focus<br />
on developing skilled and employable<br />
people – one of the reasons CI<strong>CM</strong> is so<br />
proud to work with them.<br />
Anyone interested in learning more about<br />
the courses can find more information on<br />
the CAVC website: https://cavc.ac.uk/en/pla/<br />
business.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 52
Another benefit<br />
for CI<strong>CM</strong> Members<br />
Download and view your digital<br />
membership card via the Folio app today!<br />
Download the app for your iOS or Android operating system
BRANCH NEWS<br />
The North East Branch AGM<br />
OUR AGM was preceded by<br />
a CI<strong>CM</strong>Q presentation by<br />
Luke Sculthorpe FCI<strong>CM</strong>,<br />
Head of Strategic Relationships.<br />
The Branch is on a<br />
mission to regenerate local<br />
interest in this accreditation, which was<br />
certainly piqued on the night, and we’re<br />
looking forward to supporting Luke’s ongoing<br />
drive in this area.<br />
The sandwich between Luke’s<br />
presentation and our AGM was the happy<br />
task of presenting Phil Hodgson ACI<strong>CM</strong><br />
with the Sir Roger Cork prize (which he was<br />
unable to collect in person at the February<br />
CI<strong>CM</strong> Awards ceremony). So, we – in only<br />
slightly less glitzy form – were delighted to<br />
finally deliver the award into his deserved<br />
safe keeping. Congratulations to Phil on<br />
this achievement!<br />
Our AGM was marked by Angie<br />
Deverick MCI<strong>CM</strong> vacating the Chair after<br />
what you might call a good innings. A<br />
bittersweet moment, but she is leaving<br />
it in the very capable hands of Nick Neal<br />
FCI<strong>CM</strong> (Grad), who together with the new<br />
Committee will be kicking on with planned<br />
events and initiatives for this year, including<br />
a new regular online forum to support the<br />
Branch’s studying members.<br />
It was worth the wait…thanks to everyone<br />
who turned out for our first (in person)<br />
business event of the year.<br />
Author: Angie Deverick outgoing<br />
Chair of the North East Branch.<br />
NEW AND UPGRADED MEMBERS<br />
Do you know someone who would benefit from CI<strong>CM</strong> membership? Or have<br />
you considered applying to upgrade your membership? See our website<br />
www.cicm.com/membership-types for more details, or call us on 01780 722903<br />
UPGRADED<br />
Jane Morrey MCI<strong>CM</strong><br />
Nathan Bartlett MCI<strong>CM</strong><br />
Bhagyawatee(medha) Bhiwa MCI<strong>CM</strong><br />
Deian Pouriakov MCI<strong>CM</strong><br />
VivianneJagar MCI<strong>CM</strong><br />
Sharon Stevens MCI<strong>CM</strong><br />
MCI<strong>CM</strong><br />
Benjamin Scott MCI<strong>CM</strong> Zakia Khalid MCI<strong>CM</strong> Aida Issazadeh<br />
ASSOCIATE<br />
Katie Fawcett<br />
Alison Percival<br />
AWARDING BODY<br />
Congratulations to the following, who successfully achieved Diplomas<br />
Level 3 Diploma in Credit Management (ACI<strong>CM</strong>)<br />
Mitchel Cooper David Eastham Charlotte Griffiths<br />
Level 3 Diploma in Credit & Collections (ACI<strong>CM</strong>)<br />
Ulf Hansson<br />
Andrew Hills<br />
Level 3 Diploma in Credit & Collections<br />
James Aspden<br />
Pieter Benjamin Cloete<br />
Nils Gustav Isidorsson<br />
Janice Lawler<br />
Molly Crawshaw<br />
Julie Goold<br />
Level 3 Diploma in Money & Debt Advice (ACI<strong>CM</strong>)<br />
Hannah Martin<br />
Davide Masedu<br />
Alexander Parry<br />
Emma Rylance<br />
Erika Sams<br />
Tobias Vonk<br />
Sian Williams<br />
Kelly Farrar<br />
Richard Feely<br />
Level 5 Diploma in Credit & Collections Management MCI<strong>CM</strong> (Grad)<br />
Ryan Kerr<br />
Robert Green<br />
George Holmes<br />
Emily Thomas<br />
Trudy Woolley<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 54
HR MATTERS<br />
Shifting Definitions<br />
The elements of an employment contract and<br />
the cost of avoiding pension scheme pay-outs.<br />
AUTHOR – Gareth Edwards<br />
THE Employment Appeal<br />
Tribunal (EAT) has offered<br />
guidance on how to interpret<br />
a Supreme Court judgment<br />
in a recent case in the<br />
context of an employment<br />
status dispute.<br />
Considering Uber BV v Aslam and Others,<br />
the case of Dr Mark Ter-Berg v Simply Smile<br />
Manor House Ltd and Others, involved<br />
a dentist who worked under a standard<br />
British Dental Association agreement<br />
under which he had to provide dental<br />
services at specified places. The agreement<br />
stated it was not an employment contract.<br />
It contained a substitution clause requiring<br />
Ter-Berg to provide a locum to cover any<br />
absence of 20 days or more.<br />
Ter-Berg brought an Employment<br />
Tribunal claim for automatic unfair<br />
dismissal, alleging he had been unfairly<br />
dismissed because he had made a<br />
protected disclosure. The facts of the<br />
alleged disclosure and the subsequent<br />
termination of the agreement were beyond<br />
the scope of the EAT judgment.<br />
In order to be able to bring his<br />
Employment Tribunal claims, Ter-Berg<br />
needed to show he was an employee at<br />
the relevant time. He accepted that he<br />
was initially engaged as a self-employed<br />
contractor. However he argued that the<br />
nature of the relationship had changed<br />
over time so that he ended up being an<br />
employee.<br />
The Employment Tribunal disagreed. It<br />
found that Ter-Berg was not an employee,<br />
because it said that none of the elements<br />
of an employment contract were present.<br />
Ter-Berg appealed to the EAT, which<br />
allowed the appeal in part. It disagreed<br />
with the tribunal’s interpretation of the<br />
substitution clause and remitted the case<br />
to a new tribunal on that basis. However,<br />
the EAT remarked that it was acceptable<br />
for the tribunal to start its analysis by<br />
looking at the agreement between Ter-Berg<br />
and the practice.<br />
In the Uber case, the Supreme Court<br />
had said that the question of whether an<br />
individual is a worker will turn on the<br />
statutory definition of worker rather than<br />
on what is written in the contract. The EAT<br />
has now confirmed that this does not mean<br />
that the tribunal cannot use a contract as a<br />
starting point in its analysis.<br />
A recent Employment Appeal Tribunal<br />
decision acts as a reminder for employers<br />
to consider pension scheme implications<br />
at the earliest possible stage when<br />
planning redundancies.<br />
In Cook v Gentoo Group Ltd, the claimant<br />
was made redundant just short of his 55th<br />
birthday. He was a member of a pension<br />
scheme. According to the rules of the<br />
scheme, when a member reaches 55 and<br />
is either made redundant or is terminated<br />
on the grounds of business efficiency,<br />
they are entitled to immediate payment<br />
of their retirement pension without<br />
actuarial reduction. In practical terms,<br />
this can trigger a significant cost to the<br />
employer.<br />
In Mr Cook’s case, the employer<br />
curtailed the redundancy procedure in<br />
order to ensure he was made redundant<br />
before reaching the age of 55. After an<br />
initial consultation at the beginning of<br />
May 2019, Cook went off sick. He did not<br />
attend subsequent consultation meetings<br />
and was dismissed on 16 May 2019.<br />
Age, pensions and redundancy<br />
Had the redundancy procedure not been<br />
curtailed, Cook would have been made<br />
redundant after his 55th birthday, costing<br />
his employer £80,000. Cook claimed that<br />
he had been unfairly dismissed, and that<br />
the curtailment of the redundancy process<br />
constituted direct age discrimination.<br />
A tribunal agreed Cook had been<br />
unfairly dismissed; it found that the speed<br />
of the curtailed redundancy consultation<br />
procedure was unfair, and that there had<br />
been no real attempt to identify suitable<br />
alternative employment.<br />
The tribunal also found that if the<br />
employer had run a fair process, Cook<br />
would have still been made redundant,<br />
but this would have been after his 55th<br />
birthday.<br />
However, the tribunal dismissed<br />
Cook's claim that the curtailment of the<br />
redundancy procedure was directly age<br />
discriminatory. It found that he had<br />
identified inappropriate comparators,<br />
and that in any event it would have found<br />
any age discrimination to be justified as<br />
a proportionate means of achieving a<br />
legitimate aim.<br />
Cook appealed to the Employment<br />
Appeal Tribunal (EAT). The EAT upheld<br />
the appeal. The tribunal had not<br />
considered why the detrimental treatment<br />
was a proportionate means of achieving<br />
a legitimate aim. The tribunal had an<br />
opportunity to explain its reasoning<br />
before the EAT reached its decision and<br />
identified the employer's aim as being<br />
to save the costs that would have been<br />
incurred by paying into the pension. It<br />
also said the detriment caused to Cook<br />
would have been proportionate in light of<br />
other payments he had received, such as<br />
redundancy and notice pay amounting to<br />
£47,000.<br />
The EAT was not convinced that this<br />
was part of the tribunal's reasoning at<br />
the time of the original decision. It has<br />
remitted the claim to a new tribunal for<br />
reconsideration.<br />
Gareth Edwards is a partner in the<br />
employment team at VWV.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 55
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
COLLECTIONS<br />
COLLECTIONS LEGAL<br />
CREDIT DATA AND ANALYTICS<br />
Controlaccount<br />
Address: Compass House, Waterside, Hanbury Road,<br />
Bromsgrove, Worcestershire B60 4FD<br />
T: 01527 386 610<br />
E: sales@controlaccount.com<br />
W: www.controlaccount.com<br />
Controlaccount has been providing efficient, effective and<br />
ethical pre-legal debt recovery for over forty years. We help our<br />
clients to improve internal processes and increase cashflow,<br />
whilst protecting customer relationships and established<br />
reputations. We have long-standing partnerships with leading,<br />
global brand names, SMEs and not for profits. We recover<br />
over 30,000 overdue invoices each month, domestically and<br />
internationally, on a no collect, no fee arrangement. Other<br />
services include credit control and dunning services, international<br />
and domestic trace and legal recoveries. All our clients have<br />
full transparency on any accounts placed with us through our<br />
market leading cloud-based management portal, ClientWeb.<br />
BlaserMills Law<br />
High Wycombe | Amersham | Marlow | Silverstone<br />
Rickmansworth | London<br />
Jackie Ray : 07802 332104 | 01494 478660<br />
jar@blasermills.co.uk<br />
Daria Stepien : 01494 478674<br />
das@blasermills.co.uk<br />
Edward Bible : 07766 013352 ceb@blasermills.co.uk<br />
www.blasermills.co.uk<br />
Commercial Recoveries & Insolvency<br />
Blaser Mills Law’s commercial recoveries team is internationally<br />
recognised, regularly advising large corporations, multinationals<br />
and SMEs on pre-legal collections, debt recovery, commercial<br />
litigation, dispute resolution and insolvency. Our legal services<br />
are both cost-effective and highly efficient; Our lawyers are also<br />
CI<strong>CM</strong> qualified and ranked in the industry leading law firm rankings<br />
publications, Legal 500 and Chambers UK.<br />
identeco – Business Support Toolkit<br />
Compass House, Waterside, Hanbury Road, Bromsgrove,<br />
Worcestershire B60 4FD<br />
Telephone: 01527 386 607<br />
Email: info@identeco.co.uk<br />
Web: www.identeco.co.uk<br />
identeco Business Support Toolkit provides company details<br />
and financial reporting for over 4m UK companies and<br />
business. Subscribers can view company financial health and<br />
payment behaviour, credit ratings, shareholder and director<br />
structures, detrimental data. In addition, subscribers can also<br />
download unlimited B2B marketing and acquisition reports.<br />
Annual subscription is only £79.95. Other services available<br />
to subscribers include AML and KYC reports, pre-litigation<br />
screening, trace services and data appending, as well as many<br />
others.<br />
CREDIT MANAGEMENT SOFTWARE<br />
Global Credit Recoveries<br />
GCR 20-22 Wenlock Road,<br />
London N1 7GU<br />
Charles Mayhew FCI<strong>CM</strong> or Joshua Mayhew ACI<strong>CM</strong><br />
T: +44 (0) 203 368 8630<br />
E: INFO@GLOBALCREDITRECOVERIES.COM<br />
W: WWW.GLOBALCREDITRECOVERIES.COM<br />
Winners of the Debt Collection Agency of The Year at the British<br />
Credit Awards <strong>2023</strong> - Global Credit Recoveries are specialists in<br />
Global Arbitration & Debt Collection.<br />
We specialise in the UK, Europe, The Middle East and the U.S.A,<br />
working as an extension of many CI<strong>CM</strong> members companies for<br />
over 30+ years.<br />
Speak with us today in our London or Dubai offices, to see how<br />
we can assist you.<br />
We have the ability, and network, to have someone visiting your<br />
debtors offices, throughout EMEA, within 72 hours.<br />
Recovering funds globally, on a No-Recovery, No-Fee basis.<br />
Guildways<br />
T: +44 3333 409000<br />
E: info@guildways.com<br />
W: www.guildways.com<br />
Guildways is a UK & International debt collection specialist with over<br />
25 years experience. Guildways prides itself on operating to the<br />
highest ethical standards and professional service levels. We are<br />
experienced in collecting B2B and B2C debts. Our service includes:<br />
• A complete No collection, No Fee commission based service<br />
• 10% plus VAT commission for UK debts<br />
• Commission from 22% plus VAT for International debts<br />
• 24/7 online access to your cases through our CaseManager portal<br />
• Direct online account-to-account payments, to speed up<br />
collections and minimise costs<br />
If you are unable to locate your customer, we also offer a no trace, no<br />
fee, trace and collect service.<br />
For more information, visit: www.guildways.com<br />
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
Lovetts Solicitors<br />
Lovetts, Bramley House, The Guildway,<br />
Old Portsmouth Road,<br />
Guildford, Surrey, GU3 1LR<br />
T: 01483 347001<br />
E: info@lovetts.co.uk<br />
W: www.lovetts.co.uk<br />
With more than 25yrs experience in UK & international business<br />
debt collection and recovery, Lovetts Solicitors collects £40m+<br />
every year on behalf of our clients. Services include:<br />
• Letters Before Action (LBA) from £1.50 + VAT (successful in 86%<br />
of cases)<br />
• Advice and dispute resolution<br />
• Legal proceedings and enforcement<br />
• 24/7 access to your cases via our in-house software solution,<br />
CaseManager<br />
Don’t just take our word for it, here’s some recent customer<br />
feedback: “All our service expectations have been exceeded.<br />
The online system is particularly useful and extremely easy to<br />
use. Lovetts has a recognisable brand that generates successful<br />
results.”<br />
CREDIT DATA AND ANALYTICS<br />
CoCredo<br />
Missenden Abbey, Great Missenden, Bucks, HP16 0BD<br />
T: 01494 790600<br />
E: customerservice@cocredo.com<br />
W: www.cocredo.co.uk<br />
For over 20 years, CoCredo, as one of the UK's leading Credit<br />
Report companies, has helped protect thousands of customers<br />
from bad debt. Our data is compiled and constantly updated from a<br />
variety of prominent UK and international suppliers, encompassing<br />
230 countries, so that our clients can access the latest available<br />
information in an easy-to-read report. We offer tailored products<br />
and service solutions, from market-leading Dual Reports and<br />
integrated XML solutions, monitoring and delivering flexible 'data<br />
on the go' package options that reduce costs and boost cash flow.<br />
Our clients feel valued that we are a part of their customer journey<br />
and we have consistently been finalists and winners of numerous<br />
Small Business and Credit Awards since 2014.<br />
We provide award-winning customer service which is reflected in<br />
our client retention rate of 99%.<br />
HighRadius<br />
T: +44 (0) 203 997 9400<br />
E: infoemea@highradius.com<br />
W: www.highradius.com<br />
HighRadius provides a cloud-based Integrated Receivable<br />
Platform, powered by machine learning and AI. Our Technology<br />
empowers enterprise organisations to reduce cycle time in the<br />
order-to-cash process and increase working capital availability by<br />
automating receivables and payments processes across credit,<br />
electronic billing and payment processing, cash application,<br />
deductions, and collections.<br />
Tinubu Square UK<br />
Holland House, 4 Bury Street,<br />
London EC3A 5AW<br />
T: +44 (0)207 469 2577 /<br />
E: uksales@tinubu.com<br />
W: www.tinubu.com<br />
Founded in 2000, Tinubu Square is a software vendor, enabler<br />
of the Credit Insurance, Surety and Trade Finance digital<br />
transformation.<br />
Tinubu Square enables organizations across the world to<br />
significantly reduce their exposure to risk and their financial,<br />
operational and technical costs with best-in-class technology<br />
solutions and services. Tinubu Square provides SaaS solutions<br />
and services to different businesses including credit insurers,<br />
receivables financing organizations and multinational corporations.<br />
Tinubu Square has built an ecosystem of customers in over 20<br />
countries worldwide and has a global presence with offices in<br />
Paris, London, New York, Montreal and Singapore.<br />
Credica Ltd<br />
Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT<br />
T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk<br />
Our highly configurable and extremely cost effective Collections<br />
and Query Management System has been designed with 3 goals<br />
in mind:<br />
•To improve your cashflow • To reduce your cost to collect<br />
• To provide meaningful analysis of your business<br />
Evolving over 15 years and driven by the input of 1000s of<br />
Credit Professionals across the UK and Europe, our system is<br />
successfully providing significant and measurable benefits for our<br />
diverse portfolio of clients.<br />
We would love to hear from you if you feel you would benefit from<br />
our ‘no nonsense’ and human approach to computer software.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 56
FOR ADVERTISING INFORMATION OPTIONS<br />
AND PRICING CONTACT<br />
paul@centuryone.uk 01727 739 196<br />
CREDIT MANAGEMENT SOFTWARE<br />
CREDIT MANAGEMENT SOFTWARE<br />
ENFORCEMENT<br />
Blackline<br />
33 Charlotte St, London W1T 1RR<br />
T: +44 (0) 203 318 5941<br />
E: sales@blackline.com<br />
W:www.blackline.com/solutions/accounts-receivableautomation/<br />
Transform and modernize your accounts receivable processes.<br />
Release cash from customers using next-generation intelligent<br />
AR automation. Optimize working capital by driving world-class<br />
order-to-cash processes and leverage 'decision intelligence' to<br />
drive better business outcomes.<br />
Cash Application AR Intelligence<br />
Credit & Risk Management<br />
Collections Management<br />
Disputes & Deductions Management<br />
Team & Task Management<br />
Reduce or eliminate manual tasks, and enable AR teams to<br />
focus on actions that drive results. Strengthen decision<br />
intelligence to deliver significant value to the organization<br />
by harnessing BlackLine’s ground-breaking AR Intelligence<br />
module - unlock hidden data in Accounts Receivable processes<br />
and understand customer behaviours in real time.<br />
For more information and a free instant ROI calculation for AR<br />
visit https://www.blackline.com/solutions/accounts-receivableautomation/<br />
Data Interconnect Ltd<br />
45-50 Shrivenham Hundred Business Park,<br />
Majors Road, Watchfield. Swindon, SN6 8TZ<br />
T: +44 (0)1367 245777<br />
E: sales@datainterconnect.co.uk<br />
W: www.datainterconnect.com<br />
We are dedicated to helping finance teams take the cost,<br />
complexity and compliance issues out of Accounts Receivable<br />
processes. Corrivo is our reliable, easy-to-use SaaS platform<br />
for the continuous improvement of AR metrics and KPIs in a<br />
user-friendly interface. Credit Controllers can manage more<br />
accounts with better results and customers can self-serve on<br />
mobile-responsive portals where they can query, pay, download<br />
and view invoices and related documentation e.g. Proofs of<br />
Delivery Corrivo is the only AR platform with integrated invoice<br />
finance options for both buyer and supplier that flexes credit<br />
terms without degrading DSO. Call for a demo.<br />
ContactEngine<br />
A NICE Company<br />
Email: info@contactengine.com<br />
Website: www.contactengine.com<br />
ContactEngine is a proactive customer engagement platform,<br />
which connects organizations to its customers through AI<br />
powered digital conversations, enabling fully automated<br />
customer journeys. The game changer for collections?<br />
Companies can now talk directly with tens of thousands of<br />
people simultaneously. This enables collections treatment<br />
automation using intelligent, natural language conversations,<br />
dynamic engagement strategies, and easy-to-trigger payment<br />
transactions that move the needle and help organisations collect<br />
outstanding debt faster. ContactEngine anticipates the need<br />
to interact with customers and fully automates personalized,<br />
multichannel conversations that engage customers over days,<br />
weeks, months and years to achieve specific milestones or<br />
trigger next steps based on customer responses.<br />
For more information, visit www.contactengine.com/solutions/<br />
collections or email info@contactengine.com<br />
ESKER<br />
Sam Townsend Head of Marketing<br />
Northern Europe Esker Ltd.<br />
T: +44 (0)1332 548176 M: +44 (0)791 2772 302<br />
W: www.esker.co.uk LinkedIn: Esker – Northern Europe<br />
Twitter: @EskerNEurope blog.esker.co.uk<br />
Esker’s Accounts Receivable (AR) solution removes the all-toocommon<br />
obstacles preventing today’s businesses from collecting<br />
receivables in a timely manner. From credit management to cash<br />
allocation, Esker automates each step of the order-to-cash cycle.<br />
Esker’s automated AR system helps companies modernise<br />
without replacing their core billing and collections processes. By<br />
simply automating what should be automated, customers get the<br />
post-sale experience they deserve and your team gets the tools<br />
they need.<br />
SERRALA<br />
Serrala UK Ltd, 125 Wharfdale Road<br />
Winnersh Triangle, Wokingham<br />
Berkshire RG41 5RB<br />
E: r.hammons@serrala.com W: www.serrala.com<br />
T +44 118 207 0450 M +44 7788 564722<br />
Serrala optimizes the Universe of Payments for organisations<br />
seeking efficient cash visibility and secure financial processes.<br />
As an SAP Partner, Serrala supports over 3,500 companies<br />
worldwide. With more than 30 years of experience and<br />
thousands of successful customer projects, including solutions<br />
for the entire order-to-cash process, Serrala provides credit<br />
managers and receivables professionals with the solutions they<br />
need to successfully protect their business against credit risk<br />
exposure and bad debt loss.<br />
My DSO Manager<br />
22, Chemin du Vieux Chêne,<br />
Bâtiment D, Meylan, FRANCE<br />
T: +33 (0)458003676<br />
E: contact@mydsomanager.com<br />
W: www.mydsomanager.com<br />
My DSO Manager is an all-in-one intelligent SaaS accounts<br />
receivable and credit management system that provides realtime<br />
insight and scalability from SMEs to international multientity<br />
companies. It helps AR analysts, accounting or finance<br />
managers, and any client-facing employee, manage risk and<br />
maximize cash collection.<br />
It can swiftly integrate any kind of data from any ERP and<br />
implement any customization due to its creative, competent IT<br />
teams that are headquartered inside the firm and collaborate<br />
closely with support employees, many of whom were formerly<br />
credit managers at big corporations.<br />
The feature-rich functions, automated reminders, alerts, and<br />
numerous services connected to the solution, such as EDM/<br />
CRMs/insurance/e-payment/BI platforms etc., along with a<br />
reasonable pricing system, have simplified the credit-to-cash<br />
cycle by monitoring daily KPIs like DSO, aging balance, overdues/<br />
past-dues, customer behavior, and cash forecast.<br />
My DSO Manager's worldwide clientele are its real ambassadors,<br />
who assist the company in expanding on an ongoing basis.<br />
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
Court Enforcement Services<br />
Adele Whitehurst – Client Relationship Manager<br />
M: +44 (0)7525 119 711 T: +44 (0)1992 367 092<br />
E : a.whitehurst@courtenforcementservices.co.uk<br />
W: www.courtenforcementservices.co.uk<br />
Court Enforcement Services is the market leading and fastest<br />
growing High Court Enforcement company. Since forming in 2014,<br />
we have managed over 100,000 High Court Writs and recovered<br />
more than £187 million for our clients, all debt fairly collected. We<br />
help lawyers and creditors across all sectors to recover unpaid<br />
CCJ’s sooner rather than later. We achieve 39% early engagement<br />
resulting in market-leading recovery rates. Our multi-awardwinning<br />
technology provides real-time reporting 24/7. We work in<br />
close partnership to expertly resolve matters with a fast, fair and<br />
personable approach. We work hard to achieve the best results<br />
and protect your reputation.<br />
High Court Enforcement Group Limited<br />
Client Services, Helix, 1st Floor<br />
Edmund Street, Liverpool, L3 9NY<br />
T: 08450 999 666<br />
E: clientservices@hcegroup.co.uk<br />
W: hcegroup.co.uk<br />
Putting creditors first<br />
We are the largest independent High Court enforcement company,<br />
with more authorised officers than anyone else. We are privately<br />
owned, which allows us to manage our business in a way that<br />
puts our clients first. Clients trust us to deliver and service is<br />
paramount. We cover all aspects of enforcement – writs of control,<br />
possessions, process serving and landlord issues – and are<br />
committed to meeting and exceeding clients’ expectations.<br />
FINANCIAL PR<br />
Gravity Global<br />
Floor 6/7, Gravity Global, 69 Wilson St, London, EC2A 2BB<br />
T: +44(0)207 330 8888. E: sfeast@gravityglobal.com<br />
W: www.gravityglobal.com<br />
Gravity is an award winning full service PR and advertising<br />
business that is regularly benchmarked as being one of the<br />
best in its field. It has a particular expertise in the credit sector,<br />
building long-term relationships with some of the industry’s bestknown<br />
brands working on often challenging briefs. As the partner<br />
agency for the Credit Services Association (CSA) for the past 22<br />
years, and the Chartered Institute of Credit Management since<br />
2006, it understands the key issues affecting the credit industry<br />
and what works and what doesn’t in supporting its clients in the<br />
media and beyond.<br />
FORUMS<br />
FORUMS INTERNATIONAL<br />
T: +44 (0)1260 275716<br />
E: info@forumsinternational.co.uk<br />
W: www.forumsinternational.co.uk<br />
Forums International Ltd have been running Credit and Industry<br />
Forums since 1991. We cover a range of industry sectors and<br />
International trading, attendance is for Credit Professionals of all<br />
levels. Our forums are not just meetings but communities which<br />
aim to prepare our members for the challenges ahead. Attending<br />
for the first time is free for you to gauge the benefits and meet the<br />
members and we only have pre-approved Partners, so you will<br />
never intentionally be sold to.<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 57
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
FOR ADVERTISING INFORMATION<br />
OPTIONS AND PRICING CONTACT<br />
paul@centuryone.uk 01727 739 196<br />
INSOLVENCY<br />
Menzies<br />
T: +44 (0)2073 875 868 - London<br />
T: +44 (0)2920 495 444 - Cardiff<br />
W: menzies.co.uk/creditor-services<br />
Our Creditor Services team can advise on the best way for you<br />
to protect your position when one of your debtors enters, or<br />
is approaching, insolvency proceedings. Our services include<br />
assisting with retention of title claims, providing representation<br />
at creditor meetings, forensic investigations, raising finance,<br />
financial restructuring and removing the administrative burden<br />
– this includes completing and lodging claim forms, monitoring<br />
dividend prospects and analysing all Insolvency Reports and<br />
correspondence.<br />
For more information on how the Menzies Creditor Services<br />
team can assist, please contact Bethan Evans, Licensed<br />
Insolvency Practitioner, at bevans@menzies.co.uk or call<br />
+44 (0)2920 447 512.<br />
Red Flag Alert Technology Group Limited<br />
49 Peter Street, Manchester, M2 3NG<br />
T: 0330 460 9877<br />
E: sales@redflagalert.com<br />
W: www.redflagalert.com<br />
The UK’s No1 Insolvency Score is available as platform<br />
designed to help businesses manage risk and achieve growth<br />
using real-time data. The only independently owned UK credit<br />
referencing agency for businesses. We have modernised the<br />
way companies consume data, via Graph QL API and apps for<br />
many CRM / ERP systems to power businesses decisions with<br />
the most important data taken in real-time feeds, ensuring our<br />
customers are always the first to know.<br />
Red Flag Alert has a powerful portfolio management tool<br />
enabling you to monitor all your customers and suppliers so<br />
you and your teams can receive email alerts on data events<br />
i.e. CCJ, Petitions, Accounts, Directors, amongst 84 alerts<br />
produced and tailored to your business.<br />
Red Flag Alert works towards growing and protecting<br />
businesses using advanced machine learning and AI technology<br />
data to provide businesses with information to deliver best in<br />
class sales, credit risk management and compliance.<br />
LEGAL<br />
Shoosmiths<br />
Email: paula.swain@shoosmiths.co.uk<br />
Tel: 03700 86 3000 W: www.shoosmiths.co.uk<br />
Shoosmiths’ highly experienced team will work closely with credit<br />
teams to recover commercial debts as quickly and cost effectively<br />
as possible. We have an in depth knowledge of all areas of debt<br />
recovery, including:<br />
•Pre-litigation services to effect early recovery and keep costs<br />
down<br />
•Litigation service<br />
•Post-litigation services including enforcement<br />
•Insolvency<br />
As a client of Shoosmiths, you will find us quick to relate to your<br />
goals, and adept at advising you on the most effective way of<br />
achieving them.<br />
PAYMENT SOLUTIONS<br />
American Express<br />
76 Buckingham Palace Road,<br />
London. SW1W 9TQ<br />
T: +44 (0)1273 696933<br />
W: www.americanexpress.com<br />
American Express is working in partnership with the CI<strong>CM</strong> and is a<br />
globally recognised provider of payment solutions to businesses.<br />
Specialising in providing flexible collection capabilities to drive a<br />
number of company objectives including:<br />
• Accelerate cashflow • Improved DSO • Reduce risk<br />
• Offer extended terms to customers<br />
• Provide an additional line of bank independent credit to drive<br />
growth • Create competitive advantage with your customers<br />
As experts in the field of payments and with a global reach,<br />
American Express is working with credit managers to drive growth<br />
within businesses of all sectors. By creating an additional lever<br />
to help support supplier/client relationships American Express is<br />
proud to be an innovator in the business payments space.<br />
Key IVR<br />
T: +44 (0) 1302 513 000 E: sales@keyivr.com<br />
W: www.keyivr.com<br />
Key IVR are proud to have joined the Chartered Institute of<br />
Credit Management’s Corporate partnership scheme. The<br />
CI<strong>CM</strong> is a recognised and trusted professional entity within<br />
credit management and a perfect partner for Key IVR. We are<br />
delighted to be providing our services to the CI<strong>CM</strong> to assist with<br />
their membership collection activities. Key IVR provides a suite<br />
of products to assist companies across the globe with credit<br />
management. Our service is based around giving the end-user<br />
the means to make a payment when and how they choose. Using<br />
automated collection methods, such as a secure telephone<br />
payment line (IVR), web and SMS allows companies to free up<br />
valuable staff time away from typical debt collection.<br />
Quadient AR by YayPay<br />
T: +44 20 8502 8476<br />
E: r.harash@quadient.com<br />
W: www.quadient.com/en-gb/ar-automation<br />
Quadient AR by YayPay makes it easy for B2B finance teams<br />
to stay ahead of accounts receivable and get paid faster – from<br />
anywhere. Integrating with your existing ERP, CRM, accounting<br />
and billing systems, YayPay organizes and presents real-time data<br />
through meaningful, cloud-based dashboards. These increase<br />
visibility across your AR portfolio and provide your team with a<br />
single source of truth, so they can access the information they<br />
need to work productively, no matter where they are based.<br />
Automated capabilities improve team efficiency by 3X and<br />
accelerate the collections process by making communications<br />
customizable and consistent. This enables you to collect cash<br />
up to 34 percent faster and removes the need to add additional<br />
resources as your business grows.<br />
Predictive analytics provide insight into future payer behavior to<br />
improve cash flow management and a secure, online payment<br />
portal enables customers to access their accounts and pay at any<br />
time, from anywhere.<br />
FIS GETPAID<br />
25 Canada Square<br />
London, GB E14 5LQ<br />
T: +447730500085<br />
E: getinfo@fisglobal.com.<br />
W: www.fisglobal.com<br />
The award-winning FIS GETPAID solution is a fully integrated,<br />
web-based order-to cash (O2C) solution that helps companies<br />
improve operational efficiencies, lower DSO, and increase cash<br />
flow. GETPAID provides process automation, artificial intelligence,<br />
and workflow across the O2C cycle, with detailed analysis and<br />
reporting for accurate cash forecasting. FIS is a global leader in<br />
financial services technology that empowers the financial world.<br />
For more information visit https://www.fisglobal.com/en/cashflowand-capital/credit-and-collections<br />
or email getinfo@fisglobal.com.<br />
RECRUITMENT<br />
Hays Credit Management<br />
107 Cheapside, London, EC2V 6DN<br />
T: 07834 260029<br />
E: karen.young@hays.com<br />
W: www.hays.co.uk/creditcontrol<br />
Hays Credit Management is working in partnership with the CI<strong>CM</strong><br />
and specialise in placing experts into credit control jobs and<br />
credit management jobs. Hays understands the demands of this<br />
challenging environment and the skills required to thrive within<br />
it. Whatever your needs, we have temporary, permanent and<br />
contract based opportunities to find your ideal role. Our candidate<br />
registration process is unrivalled, including face-to-face screening<br />
interviews and a credit control skills test developed exclusively for<br />
Hays by the CI<strong>CM</strong>. We offer CI<strong>CM</strong> members a priority service and<br />
can provide advice across a wide spectrum of job search and<br />
recruitment issues.<br />
PORTFOLIO<br />
CREDIT CONTROL<br />
Portfolio Credit Control<br />
1 Finsbury Square, London. EC2A 1AE<br />
T: 0207 650 3199<br />
E: recruitment@portfoliocreditcontrol.com<br />
W: www.portfoliocreditcontrol.com<br />
Portfolio Credit Control, a 5* Trustpilot rated agency, solely<br />
specialises in the recruitment of Permanent, Temporary & Contract<br />
Credit Control, Accounts Receivable and Collections staff<br />
including remote workers. Part of The Portfolio Group, an awardwinning<br />
Recruiter, we speak to Credit Controllers every day and<br />
understand their skills meaning we are perfectly placed to provide<br />
your business with talented Credit Control professionals. Offering<br />
a highly tailored approach to recruitment, we use a hybrid of faceto-face<br />
and remote briefings, interviews and feedback options.<br />
We provide both candidates & clients with a commitment to deliver<br />
that will exceed your expectations every single time.<br />
FOR<br />
ADVERTISING<br />
INFORMATION<br />
OPTIONS AND<br />
PRICING CONTACT<br />
paul@centuryone.uk<br />
01727 739 196<br />
Cr£ditWho?<br />
CI<strong>CM</strong> Directory of Services<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 58
View our digital version online at www.cicm.com<br />
Log on to the Members’ area, and click on the tab labelled<br />
‘Credit Management magazine’<br />
Just another great reason to be a member<br />
Credit Management is distributed to the entire UK and international<br />
CI<strong>CM</strong> membership, as well as additional subscribers<br />
Brave | Curious | Resilient<br />
www.cicm.com | +44 (0)1780 722900 | editorial@cicm.com<br />
Brave | Curious | Resilient / www.cicm.com / May <strong>2023</strong> / PAGE 59
Ethical and efficient debt recovery solutions to<br />
help organisations improve cash-flow, increase<br />
productivity and reduce overheads<br />
Debt<br />
Recovery<br />
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Care<br />
Receivables<br />
Management<br />
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