More than 1000 businesses have now signed the Institute of Credit Management (ICM) led pledge for big businesses to live up to their word to pay on time by becoming signatories to the BIS backed Prompt Payment Code (PPC).
Major sponsors of the code include Barclays, RBS, HSBC, Santander and NatWest, all playing a part in a campaign designed to help increase the speed of payments to smaller companies.
Philip King, Chief Executive of the ICM, says that this is yet further proof that some of the biggest names in UK and world business are keen to be involved in a scheme that will help smaller suppliers stay afloat during these toughest of times: “With the Government’s backing this campaign is gaining real momentum and the list of high profile firms already involved, and others showing an interest is testament to that.”
The Code is hosted by the ICM on a dedicated website (www.promptpaymentcode.org.uk) and includes a facility for suppliers to raise concerns about late payers. The Code focuses on three main areas: a commitment to pay suppliers on time; to give clear guidance to suppliers; and to encourage good practice.
Thursday 21 April 2011
Two-thirds of UK businesses taking a harder line against debtors but compulsory liquidations continue to fall
Nearly a quarter (23 per cent) of UK businesses have issued fewer winding up petitions over the past year, despite 66 per cent of firms claiming they have been taking a tougher approach to dealing with debtors, according to a new poll of professional credit managers undertaken by Graydon UK, a commercial credit reference company.
Latest UK Government insolvency statistics have shown that corporate liquidations continued to fall during the fourth quarter of 2010 and have remained at far lower levels than in previous recessions.
According to the research 88 per cent of credit managers are turning to alternative methods in place of presenting a winding up petition with Country Court Judgments the tool most commonly used, by over half of (55 per cent) those surveyed. The research also found that 42 per cent of businesses are contracting third party debt collectors and 39 per cent setting up formal voluntary arrangements with debtors as they step up efforts to recover money owed to them.
Latest UK Government insolvency statistics have shown that corporate liquidations continued to fall during the fourth quarter of 2010 and have remained at far lower levels than in previous recessions.
According to the research 88 per cent of credit managers are turning to alternative methods in place of presenting a winding up petition with Country Court Judgments the tool most commonly used, by over half of (55 per cent) those surveyed. The research also found that 42 per cent of businesses are contracting third party debt collectors and 39 per cent setting up formal voluntary arrangements with debtors as they step up efforts to recover money owed to them.
Tuesday 12 April 2011
UK firms are still feeling the pressure
The Business Rescue Service recently issued advice and warnings to troubled UK businesses as news broke that business confidence remains tremendously low with many still battling financial problems. Following high company insolvency statistics last year, the International Business Report has found that just 8% of UK businesses expressed feeling confident in the current climate. Further research for the International Business Index described half of all UK SMEs as concerned about rising costs. A substantial number also felt access to funding and capital did not meet their needs.
Research for the International Business Report was conducted throughout Europe, with the UK identified with the lowest levels of business optimism bar Spain, Ireland and Greece. Whilst 16% of respondents had expressed feeling confident last year, just half of that number had this time around. 64% did not expect to be able to increase their pricing this year. 66% did not expect to increase their staff team in the year to come. There are also concerns among firms about inadequate access to lending facilities.
"16546 firms went into liquidation last year and clearly there are lingering serious issues. The most important message to get across is to seek advice sooner rather than later. Our financial analysis of the company's status is invaluable for planning purposes. We help to identify the direction they should be taking next. We also advise on Commercial Finance. In cases where the business rescue is not possible, we are on hand to advise on the most appropriate legal remedies. We would look to preserve the underlying business wherever possible, for example, by looking at whether pre-pack Administration could be an option. "
A survey of 1,500 small businesses in the UK for the forthcoming new International Business Index also found that there were widespread concerns about company finances. 19% felt lack of access to capital and funding was likely to present the greatest obstacle to success. 40% felt access to capital and funding within the UK was not currently adequate. 50% were concerned about rising costs and 55% planned to keep carefully monitoring their financial status. 46% relied on conducting their own business research using the internet.
Research for the International Business Report was conducted throughout Europe, with the UK identified with the lowest levels of business optimism bar Spain, Ireland and Greece. Whilst 16% of respondents had expressed feeling confident last year, just half of that number had this time around. 64% did not expect to be able to increase their pricing this year. 66% did not expect to increase their staff team in the year to come. There are also concerns among firms about inadequate access to lending facilities.
"16546 firms went into liquidation last year and clearly there are lingering serious issues. The most important message to get across is to seek advice sooner rather than later. Our financial analysis of the company's status is invaluable for planning purposes. We help to identify the direction they should be taking next. We also advise on Commercial Finance. In cases where the business rescue is not possible, we are on hand to advise on the most appropriate legal remedies. We would look to preserve the underlying business wherever possible, for example, by looking at whether pre-pack Administration could be an option. "
A survey of 1,500 small businesses in the UK for the forthcoming new International Business Index also found that there were widespread concerns about company finances. 19% felt lack of access to capital and funding was likely to present the greatest obstacle to success. 40% felt access to capital and funding within the UK was not currently adequate. 50% were concerned about rising costs and 55% planned to keep carefully monitoring their financial status. 46% relied on conducting their own business research using the internet.
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