Thursday, 10 June 2010 00:15

Hitting The Headlines: The Independent on Sunday

Written by

    In 2009 our founder and Managing Director was interviewed for a piece in The Independent On Sunday, this article is reproduced below with their kind permission. in 2009 we still went by our original name of Creditsafe Ltd, whilst our name may have changed our thirty year commitment to credit management and debt collection excellence has not.

     

    The number of people out of work in the UK has risen to its highest level in 14 years. Unemployment topped 2.47 million in the three months to July.

    As a result, more people are starting up in business on their own then ever before. Figures from Barclays showed that 437,000 new businesses were started in 2008, up from 432,000 the previous year.

    But record insolvency figures released last month show that even if you make a success of working for yourself, you could be hit by unpaid invoices from other companies going bust.Independent

    Nearly 1 per cent of companies went into liquidation in the 12 months to June 2009. And for every company that fails, a trail of unpaid creditors is left behind. The Professional Contractors Group (PCG), which represents and supports contractors and freelancers, said conditions were tough enough without the added strain of invoices going unpaid.

    For software contractor Sandeep Sirah, experience and goodwill counted for little when things went wrong. What began as a 90-day outstanding payment took more than 120 days to be recovered. The company Mr Sirah was dealing with had cash-flow problems. With the help of debt recovery firm Creditsafe, Mr Sirah was able to recover all the money owed to him. Others have not been so lucky.

    One self-employed technical consultant had checked out the financial position of the company he was due to advise before he started work for them in Tanzania. However, his payments didn't arrive and he got nowhere when he pressed for payment. Finally, he flew back to the UK and refused to return until he was paid.

    "I realised the organisation was sinking. My only course of action was to stop providing the service," he said. "I got some money back via a debt collection agency but nowhere near all of it."

    The PCG publishes guidance for its members explaining the common warning signs of struggling businesses. They include issues such as payments being late; difficulty contacting key personnel; a request for a change in business terms; phone and/or website problems; low staff morale and high staff turnover.

    Barclays Bank offers small businesses – whether or not they are customers – a free credit checking service on would-be clients. The Government's own businesslink website (businesslink.org.uk) also has tips. Companies House provides company accounts.

    "You have to be careful with start-ups," said Sid Home, the managing director of Creditsafe. "Limit your exposure, shorten your payment terms and build up a picture of how the business is being run."

    If the new business is a limited company, it is easy to identify who the directors are and their history of running previous businesses. If they are limited companies, find out what paid-up share capital has been put in by the directors.

    Copyright The Independent On Sunday. Article By Madeline Thomas

    Originally published Sunday, 20 September 2009. Reproduced with permission.

    Original article on The Independent

    Note: In 2009 Safe Collections was known as Creditsafe Ltd.

    Hitting the Headlines: Safe Collections in the Guardian

    in About Safe Collections by Adam Home
    If you're a Guardian reader, you may have seen Safe Collections' collections and partnerships manager Adam Home quoted in a Guardian Professional article on May 12th. Tim Aldred's piece looked at the case for credit control teams as a way for businesses to…

     

    Get In Touch
    1000 characters left