Archive for May, 2017

Late payments cost “3.4m jobs”

According to this article.

My usual approach is to ignore pieces where the headline figures leave you indredulous but some points within the piece are probably worth considering. This paragraph did leave me sceptical

Two-thirds of small business owners would hire up to five new members of staff if big business clients paid up – bringing a potential 3.4m jobs to the economy.

Further responses found over a fifth of business leaders would increase their marketing and sales budgets, while 17 per cent would increase the wages of their workforce.

Hmmm but this makes more sense

Further research has revealed low enthusiasm for the government’s incoming late payment tsar, tasked with supporting small suppliers in supply chain relationships. Just two per cent of micro business owners and freelancers believed the small business commissioner could fix the late payment culture.

Despite the extent of working capital held up in late payments, Business Advice previously revealed that unfair payment terms could be the real scandal. One small supplier told us that small business owners are often “bullied” into long payment terms and handed invoice times of up to 90 days.

All believable but it does beg the question that I am bound to ask

If a boost to cashflow is so fundamentally important to the business and is guranteed to bring about strong growth then why on earth are these businesses not financing their debtors? The costs are pretty low and surely if their comments had validity these would quickly be outweighed by the benefits



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Should Fred Goodwin stand trial?

My answer to that would be “yes” but there are two opposing opinions here 

It would appear that a settlement is going to be reached with the RBS shareholders that will preclude any evidence being given by the RBS management. In fact Goodwin has been silent since the collapse.

No doubt some will point to the rule of law here but the fact remains that if RBS had been anything other than a bank it would not exist today. The taxpayer rescued it and deserves some response. His £300k pension is being paid by us


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I change my mind. What do you do?

Economist John Maynard Keynes

Or more accurately..

When the Facts Change, I Change My Mind. What Do You Do, Sir?

One of the many wonderful quotations from the great John Maynard Keynes. Most probably he was refering to a relatively high brow economic discussion but this timeless response could apply to so many areas of life

This came to mind when proposing a particular account to a number of lenders yesterday. Without going into details, the “facts” developed as the conversations continued. This can of course go either way and in this case there was increased negativity surrounding the prospect. But what would have occured if the case for the lending became stronger? This is where human nature comes into play. The decisions are finally made by the underwriters but often also by development managers. Once a decision has been made, inflexibility can set in. Personally I think this is wrong

As a commercial credit manager, I know the instinct. You may have it in your mind that such and such an account is not valid for credit but the true skill is keeping options reasonably open where there is scope for developing the overall picture. The problem for many is that the belief that this is “backing down” and that there is a consequent loss of face.

For brokers such as myself, we have to make our own assessments of clients and our skill is to present the facts with clarity. Where we genuinely believe in a prospect, presentation can be key.




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Financial services, London and Brexit

the_city_londonHere is the latest story from the always entertaining Guido Fawkes site. Guido does not hid his/its views on brexit but is it really possible to ignore this quote from this very significant hedge fund?

“We’re all aware of the possible implications of Brexit. But in our mind with the talent that is here and the fact that London has been the financial centre of Europe for decades, we are committed to it and we think it is the best place for us.”

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A reminder of what I do

Every now and then I believe it is fair of me to share how I work for my clients

Invoice financing. Are you aware of what is available?

As I hope you are aware, I work hard to keep fully aware of all the options in the market.

I represent only you or your client

Here is a gentle reminder of some of the recent developments

– Funding has never been so easily availble for ‘start ups’

– Some established lenders are no longer charging minimum fees

– The competition to finance indvidual invoices without a contract is very strong. Prices have dropped

– More and more lenders are funding overseas debtors

– Funding is now available for accountancy practices as well as other professions including law firms

– There are now more than 50 lenders active in invoice and trade finance

Feel free to call Clive Pacey on 07956 138895 to discuss further

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The Making of Donald Trump


This is a quick and quite extraordinary read. In fact it is somewhat surprising that more attention hasnt been paid to the many revelations from almost psychopathic lying to a seeming inabiity to understand simple accounting through to dubious links with orgainised crime. It is also a timely reminder that you must never judge credit purely on the tales a business owner tells you, as numerous creditors of Trump will testify

I am always wary of biographies that appear to be hatchet jobs. Kitty Kelly was famous of course but in more recent times I willingly have avoided Tom Bower’s authorships on Branson, Blair and many others. There is a pattern there of simply targeting those who have made wealth quickly.

No such problems with this well written breezy read. In fact the underlying sense is that Trump is far from being as wealthy as he claims. In fact it could be a lot worse than that

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