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With horsemeat found in beef burgers and lasagne, the finger of blame is... well, pointed at just about everyone!
Business minister Michael Fallon says that small business owners do not want the government to introduce new rules to speed up payments from large companies because they fear legal action will lead to the loss of important customers.
Research conducted with our debt collection customers – 64% of whom are SMEs - support his comments given in a written answer to Conservative MP Laurence Robertson’s question.
Less than one-third of our clients (32%) ever use the current legislation – the Late Payment of Commercial Debts (Interest) Act 1998, as amended and supplemented by the...
Getting business paid is clearly a New Year’s resolution for Michael Fallon, Business and Enterprise Minister. Back in October, Fallon wrote to all FTSE 350 companies urging them to sign up to the Prompt Payment Code. A sentiment that will get most creditors’ vote!
Over £35 billion is outstanding to SMEs and the biggest culprit is big business. Fallon told the Sunday Telegraph: "Cash flow is the lifeblood of small companies. Poor cash flow is how small businesses go under. £35 billion owing would average out at around £30,000 per small company if you do the maths." Now, big...
The trade body of debt collection agencies (DCAs), the Credit Services Association (CSA), is winning its battle to come under the remit of the government’s new agency: the Financial Conduct Authority (FCA). It’s expected the FCA will introduce more intrusive and expensive regulation for DCAs. So, I hear you ask, why is the CSA voting for more compliance?
Regulation, reputation and respectability are the reasons. Too often tarred with the same brush; good DCAs know that bad practice of the few is tarnishing repute of the many.
The CSA has a strict Code of Practice for its...
Creditors are buckling under the weight of unpaid bills and they’re expecting things to worsen over the next 12 months. Research commissioned by software solutions specialists Sopra Group paints a worrying picture with more than 80% of respondents saying that collections are slower, less successful and more resource intensive.
Even worse, over the next year, they expect debt collection cases to increase by nearly 20% with 43% saying cases will increase by more than 20%. Senior finance professionals and company leaders polled are concerned about...
It’s not often that a big business takes a decision knowing it will attract adverse publicity. Sainsbury’s has chosen to do exactly that. By increasing its payment times to non-food suppliers from 30 to 75 days they’ve entered the Forum of Private Business Hall of Shame. This from a company with a corporate website that boasts: ‘Our Code of Conduct for Ethical Trade covers the employment practices we expect from our suppliers, both in the UK and abroad.’
Well, congratulations Sainsbury’s. By increasing payment terms by 150% you have doubtless endangered the employment opportunities...
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