Archive
My new website
http://www.cpcmcredit.co.uk/index.html
Its fairly basic for now and frankly I prefer this blog as a means of promotion. But here it is anyway
Contract negotiation
A significant element of any credit management is understanding the pitfalls of negotiating contracts. Here is a useful guide from Scottish debt collection solicitors Yuill and Kyle
Thank you to Colemans CTTS
Who have employed me to write their blog for past couple of years. Its been an enjoyable gig
Naturally enough if anyone is interested in a well written an eye catching blog for their site, then i’m happy to discuss
Here are some recent posts
http://www.colemans-ctts.co.uk/blog/an-upturn-debt-recovery
http://www.colemans-ctts.co.uk/blog/debt-blog-government-scheme-to-help-smes
http://www.colemans-ctts.co.uk/blog/claim-negotiation-after-the-jackson-reforms
http://www.colemans-ctts.co.uk/blog/debt-blog-high-street-failings-why-retail-is-still-failing
http://www.colemans-ctts.co.uk/blog/debt-blog-the-voice-of-credit-control
http://www.colemans-ctts.co.uk/blog/pre-pack-sales-and-credit-has-failure-become-acceptable
Co op stops lending
Not good news. Aside from the fact that I’ve heard many good things about co ops services to business, we need more completion in the market and not less
One of the invoice financing sectors positives is the sheer number of lenders. They do vary considerably and will have their specific sectors and parameters but it makes for a decent market
There are too few significant players in straightforward commercial lending and banking. We need more
NewBiz Accountants
Here is a very interesting new site which I am sure will be a success
The objective is to create a platform for small businesses and their owners to ask questions of experts on various financial and legal issues. My contribution is here
http://www.newbizaccountant.co.uk/your-quick-guide-to-invoice-finance-and-invoice-factoring/62186/
I would recommend a browse and it may well be that you also have something to offer
Unnecessary slur on asset based lenders
I am an admirer of James Hurley’s Daily Telegraph blog whilst not always agreeing with his stance on certain issues. This entry is a case in point
The essence of this is that the governments proposal to extend the Funding for Lending Scheme to asset based lenders is unacceptable due to the nature of invoice financing in particular
He then goes on to quote Eric Anstee from the City of London group thus;
However, he said that traditional invoice finance, which sees money advanced against a small company’s order books, is “not something the Government should be lending into”.
“The existing model typically requires businesses to sign up their entire [order books] to one provider. There’s no flexibility.”
City of London group are effectively a rival lender to the ABLs but no matter, what he states is rubbish frankly
It might not have occurred to him that lenders generally ask for security. Perhaps the City of London group lend at very competitive rates with absolutely no security at all and if so thats fine, but “signing over the order book” (technically incorrect of course) is precisely the same as saying “giving my house away” when signing a personal guarantee
Poor stuff
Insolvent or not?
Interesting ruling. A straightforward balance sheet deficit is not deemed enough to petition for a business to be “insolvent”
I think this makes sense. There are deficits and deficits. Many businesses survive relatively easily with negative balance sheets simply by using strong cash management skills.
Zombies in Germany
http://www.ccrmagazine.com/index.php?option=com_content&task=view&id=9158&Itemid=33
A “restructuring specialist” again bemoaning the lack of insolvencies in the market and how too many businesses are surviving on in a so called zombie condition
He points to Germany as an economy where insolvencies run at a higher level (really?) because of “director obligations”
Maybe so but then he states
“By contrast, in EU countries where there are low numbers of insolvencies the lack of trust caused by too many zombies can worsen the economy further. This is because lower confidence amongst businesses who fear they will lose money by inadvertently becoming the creditor of a company which turns out to have lots of debts, but few assets, and is unlikely to pay them back.”
Am i missing something here? Collapsing businesses at the drop of a hat is actually better for creditors because…no, i’m lost.. This doesnt make sense
I would far rather wait a little to get paid in full by a “zombie” business then sit staring at a bad debt.
What do i do?
An overdue summary of my core services. Any further interest then please contact me. Details to the right of this post
Credit management
Large businesses employ experienced credit managers to add value through their expertise in assessing risk, assisting sales and improving cash flow. Small to medium businesses are of course operating within the same markets but without this expertise can be exposed to possible expensive misjudgements
My credit management experience stretches back over 30 years and covers a range of industries from construction to music. I have also extensive overseas and export experience
I can offer clients my expertise on a retained or ad hoc basis
I can also offer a full review of the procedures together with a concise report
The benefit to the client is improved cash flow, reduced risk, recovery of difficult debts and avoidance of bad debts
I am also an experienced trainer of staff
Invoice financing brokering
Invoice finance revolves around the borrowers debtors and the nature and quality of the facility is dependent on the lenders view of the debt. With my credit management experience I can assist and negotiate facilities
The market is extremely varied and with over 30 active lenders, ascertaining the best deal is a challenge. Being the lifeblood of the business it is essential that the borrower receives the best service and most flexible facility available
I work with every lender in the market and keep appraised of all developments. I also write regularly for the markets in house publication Business Money
There are many reasons why a borrower may need to review a facility. Often they may not be aware that they can find alternatives to restrictions placed on their borrowing as well as considerably reduced fees
Marketing
Businesses need to target potential clients but how do they do so?
By working with a client to determine the precise market they wish to approach I can provide the necessary details based upon a range of criteria based upon financial information as well as location and sector
Once the a target list is produced, then various methods can be considered. Key to ascertaining the best method is a full understanding of your business and the businesses in the sector which you wish to approach
A campaign can then be planned with assistance of resourced experts in marketing. By targeting a relatively low number of potential clients, excellent telesales back up can be provided
Time to leave the EU?
This blog is non political but some issues cannot be avoided so when the heavyweight Nigel Lawson weighs into the EU debate in hard hitting form today, it cannot be ignored
http://www.bbc.co.uk/news/uk-politics-22429790
The points he raises are perfectly valid and my own feeling is that EU may not truly survive if it keeps pushing for political unity rather than concentrate on the rather less glamorous trading and economic issues. It has become something of a “big idea” which has run out of control. My gut feeling is that states and their voters are keen to less rather than more. Its not as if the euro has been a great advertisement for unity is it.
So what is the case for unity? Well aside from the fact that the statistic in the following statement is not validated or explained in anyway, is this the best that the ‘pros’ can come up with?
Deputy Prime Minister Nick Clegg said that leaving the European Union would “make us less safe because we cooperate in the European Union to go after criminal gangs that cross borders”.
He said it could put 3m jobs at risk and made it difficult to deal with cross border threats like climate change and would also see Britain “taken less seriously in Washington, Beijing, Tokyo”.
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