This Saturday December 6th is Small Business Saturday, an annual initiative to support small businesses throughout the UK, and it's not just about visiting your local independent gift shop.

Much of the focus will be on the nation's high streets and town centres, where free parking and special offers will encourage many people to finish off their Christmas shopping at small independent retailers.

Published in Credit Control

Formula 1 tyre supplier Pirelli took a hard line in Hungary by invoking a prompt payment policy that left Lotus with no tyres as the first practice session approached on the Friday.

Payments are due on a quarterly basis and, according to reports in the Telegraph and other national newspapers, Lotus owed about £350,000 for three months' worth of wheels.

Published in Credit Control

We always say that in good credit control, prevention is better than cure - collections and recovery action should be for the bad debts you didn't see coming, not the ones you did.

But how do you know who's going to pay on time, and who's not going to pay at all?

If you've worked in credit control for long enough, it will be instinctive, a kind of sixth sense based on the myriad different factors that contribute towards a company's risk profile.

Published in Credit Control

Two directors of Lancashire-based Worldwide Sports Investments Limited have been disqaulified following an investigation by the Official Receiver’s Public Interest Unit.  The directors operated a high pressure sales scam purporting to offer investments in a golf course and hotel development in Portugal.

44 year old director Mr Christopher Smullen received a disqualification order on the 26th May 2015 banning him from managing, promoting or being a director of a limited company for 13 years from the 16th of June 2015.

Published in Credit Control

Lord Sugar, the artist formerly known as Sir Alan, has made his feelings on late payments very clear - and, like us, he's less than impressed with the government's efforts to tackle the problem.

In particular, during the second reading debate on the Small Business, Enterprise and Employment Bill, he criticised the lack of "practical, common-sense" solutions to the problems faced by small businesses.

Published in Credit Control

Mr Lawrence McGovern, director of Railtrades Ltd (“Railtrades”) has received a 6 year disqualification order for disposing of the company’s assets worth an estimated £52,000 and paying almost that amount to connected third parties.

Mr McGovern’s disqualification from 15 December 2014 follows a disqualification order made in the County Court at Romford on 14 November 2014 by Deputy District Judge Dudderidge. The application on 28 May 2014 was by the Insolvency Service on behalf of the Secretary of State for Business, Innovation and Skills.

Published in Credit Control

We all know healthy cash flow is the life blood of any small business, but when your cash flow is interrupted, survival depends on having funds in reserve - and the same is true of your customers.

So it helps to know how many small businesses out there have savings set aside 'for a rainy day', and how many would be unable to pay you if their own income was interrupted.

The figures don't make for encouraging reading - according to a report from British personal and commercial banking providers Aldermore, fewer than one in three businesses have a savings account at all.

Of those that do, 21% have less than £5,000 saved, and 7% have nothing at all.

Published in Credit Control

A fundamental characteristic of late payment legislation so far has been its voluntary nature - nobody forces big businesses to sign up to the Prompt Payment Code, and nobody forces SMEs to charge penalty fees on late payments.

Now one organisation is calling for this to change, with a policy paper that suggests making several aspects of late payment legislation unavoidable for creditors and debtors alike.

Published in Credit Control

Changes to the way companies calculate the VAT on invoices that are subject to Prompt Payment Discounts could effectively rule them out as a way of encouraging clients to pay early.

Until now, businesses have been allowed to calculate VAT based on the discounted invoice price, and display this on their communications with customers.

If the customer fails to pay in time to benefit from the Prompt Payment Discount, the business has been able to charge the full invoice amount, without having to recalculate the VAT.

Published in Credit Control

It doesn't matter how much you like a bucket; if it won't hold water anymore, it's time to get a new bucket, and that is just what the government needs.

They are now embarking on yet another review of the Prompt Payment Code to try and make it actually work, and their plan to do this is to take advice from organisations like the City of London Corporation, Aviva and Barclays.

Published in Credit Control
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