Editor: John Arnold. E-mail jarnold@creditman.co.uk
Pat Williams. E-mail pwilliams@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 5 Issue 45
Dated: 2 December 2001
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
Now You Can Order And Pay Online - The first comprehensive study of the UK Debt Collection Industry published by the Credit Services Association (CSA) with the Credit Management Research Centre at Leeds University Business School can now be ordered and paid for by credit card online at http://www.creditman.co.uk/referenc/debtsurvey.html
The cost of the Debt Survey 2001 is £300 and postage is included in the price. Overseas Orders are welcomed with payment by credit card.
UKSMALL FIRMS REACT TO PRE-BUDGET
Small firms reacted positively to many of the measures announced in the Chancellor’s Pre-Budget Report last Tuesday, particularly on lowering Capital Gains Tax, payroll support and tax credits for training, but urged that government remain fully on course to meeting planned investment in education and transport.
Reacting to the report, Anthony Goldstone, President of the British Chambers of Commerce said:
“While the UK economy remains better placed than before to withstand external shocks, the sting in the tail may come in next year’s Budget and Spending Review. It is critical, both in terms of productivity and credibility, that this government delivers on its existing spending pledges, before making any new promises.
“With many firms now, and in the short term, struggling to survive, the Chancellor has provided some respite, and this will support business confidence. However, in the medium and longer term, what business needs most is the promised investment in education and skills, and in transport.
“Whilst simplification in the area of VAT and payroll is welcome, more needs to be done to alter radically the cumulative burden of regulation on business. Government is in danger of creating a whole new industry in red tape reviews, when what business wants is action.
Commenting on the specific detailed measures announced, David Lennan, Director General of the British Chambers of Commerce said:
On investment in skills:
“Business will welcome that the Chancellor has left the door open on the training tax credit. This could make a real difference for small businesses, which make much use of external training facilities, and must bear the additional costs of time off or overtime for staff that are training off-site.”
On time off for training, David Lennan said:
“The Chancellor’s decision to consult on a statutory right to time-off for training will strike fear in the hearts of smaller employers, because of the potential cost and disruption it could cause.”
On Capital Gains Tax:
“At last a Government has realised that penal rates of Capital Gains Tax (CGT) stifle business investment and actually lead to a lower tax take. Lowering rates of CGT below US levels is an excellent achievement, which the Chancellor deserves fulsome praise for.”
On promoting innovation:
“Promoting innovation is the fast-track route to higher productivity in the UK and we welcome the package of measures on R&D and science announced today. The extension of the R&D tax credit to large businesses makes sense and it is about time the UK fell into line with other countries’ practices on the taxation of intellectual property.
“It is imperative, however, that R&D and science are not seen as the preserves of large businesses and that there is more encouragement and help for small businesses to link up with our universities.
On tourism:
“The effects of foot and mouth, the general global slowdown and events of The 11th September have hit tourism hard. It is a pity that the Chancellor did not use this occasion to bolster our tourism sector with some much needed help, for example providing more funding for the Rural Task Force Report, or temporarily suspending air passenger duty.”
In their pre-Budget submission “A Blueprint for Prosperity”, the Chambers of Commerce called for measures to sustain survival and build recovery in the UK’s small firms sector, announcing a package of recommendations targeting aid to struggling manufacturers, supporting business compliance with government regulation, and offering technology investment and training incentives to small firms.
CBI CHIEF PRAISES "SENSIBLE AND SUPPORTIVE" PRE-BUDGET PACKAGE
CBI chief Digby Jones praised Chancellor Gordon Brown for delivering "a sensible and supportive" pre-budget package at a time of economic uncertainty.
He said business would be particularly pleased that Mr Brown is pressing ahead with tax credits to boost innovation and encourage training.
"Mr Brown has delivered a sensible and supportive package. Even though he may turn out to be somewhat optimistic about economic prospects for next year, he has avoided a damaging increase in taxes simply to meet previously announced fiscal targets.
"Allowing the budget deficit to rise modestly will help support the economy through difficult times. Nevertheless we still hope he will consider a contingency package of special tax measures for worst-affected businesses in case the economy deteriorates significantly."
R&D Tax Credits
On R&D tax credits, Digby Jones said the Chancellor had taken "a significant step" towards a scheme design that business could welcome.
"Companies are crying out for tax credits for research and development, which will be particularly important to recession-hit manufacturers.
"But it is crucial that the scheme design is simple enough for business to use and generous enough to make a difference. Mr Brown has today taken a major step towards that ideal by moving away from the original proposal for an incremental tax credit.
"Now we strongly urge the Treasury to make sure it is ready to introduce a properly-funded credit in the Budget in March. Next year promises to be tough for many businesses and the government must be ready to offer help when firms most need it."
Training and Basic Skills
On measures for training, Digby Jones said he was "encouraged" by the proposals set out in the report from the Performance and Innovation Unit (PIU).
"We must take action to sort out the basic skills problem, which is a national disgrace that is harming our economy. The PIU report is encouraging because it recognises the need for more public investment to help employers and employees.
"We will study the proposals with interest, but we are pleased by indications that the government is preparing to introduce the training tax credit we campaigned for."
BIG CHALLENGES, SMALL INITIATIVES
Gordon Brown ducked the opportunity to reform the tax system and cut red tape, said tax advisers Ernst & Young. The Chancellor's measures again showed his propensity for eye-catching but arguably ineffective micro solutions, while major tax changes were only noticeable by their absence.
Entrepreneurial services partner Patrick Stevens said: "We welcome the latest developments on CGT. It's taken a long time to get here but the outcome will make the tax simpler and less of a burden to entrepreneurs. And the immediate doubling of the EMI asset limit will bring far more companies into the scheme."
On tax credits, leading expert Anne Redston said, " The Chancellor has stuck to his guns on tax credits, more's the pity. I welcome the increased payments - but I cannot believe there's a single pensioner out there who is going to be able to make sense of it."
Marc Welby, indirect tax partner, said " The flat rate scheme for VAT is welcome but it's old news. The rest is yet more tinkering. Environmental measures are well-intentioned but they always run the risk of having much less effect than the rhetoric suggests. And somehow I feel that simply removing the duty on the football pools will not single-handedly revitalise the manufacturing sector."
Rosalind Upton, corporate tax partner, summed up the mood: " Four so-called tax cuts which simply repeat previous announcements plus some modest new initiatives are not going to remove the global downside risks the Chancellor set out. We are clinging to our competitive advantage by our fingertips."
FSB REACTION TO CHANCELLOR
Speaking on behalf of its 168,000 members, the FSB was disappointed that the Chancellor of the Exchequer failed to adequately address the burdens currently placed on the payroll work of small businesses.
The FSB presented its views to the Patrick Carter Review of payroll burdens set up by the Chancellor of the Exchequer and recommended that staff be given the option of having payments such as the Working Family Tax Credit paid direct to them from the Inland Revenue rather than through the pay-packet.
John Walker, FSB Policy Chairman said, "we are hoping for a hard-hitting report from Patrick Carter on payroll burdens to benefit employers busy collecting taxes and paying benefits on behalf of the Government. The Inland Revenue estimates that compliance costs per employee are £288 per annum in the 1-4 employee size group, compared to as little as £5 for 5,000+ group."
The FSB welcomed the imaginative proposal to introduce a new flat rate scheme for VAT for businesses. Mr Walker said, "this is the one proposal with real substance. We have been pushing for VAT simplification over many years and a flat rate will give real benefits to small businesses, possibly as high as the Chancellor's estimate of £1,000."
The FSB welcomed the Chancellor's attempts to help the road haulage industry by charging foreign lorries for using the British road system. The FSB is however calling for a more fundamental review of fuel taxes to give the road-haulage sector long-term help.
The FSB also welcomed the proposals for in-work training tax credits. John Walker said, "the Government needs to go further in recognising the in-house, informal training offered by small businesses. The fact that the tax credits are for training in the workplace is good news, but employers don't want inappropriate courses imposed on them, and such training has to be demand led."
The FSB believes that the Chancellor's proposals to reduce capital gains tax on business assets will be welcomed by family-owned businesses in particular. The prediction that three quarters of businesses will pay the 10 pence rate will help small owners handing down their businesses to future generations.
John Walker added "despite the Chancellor's welcomed moves to introduce a tax credit for firms using environmentally friendly technology, we wanted to see the total abolition of the Climate Change Levy. This Levy is evidently hurting the very manufacturing firms we need to encourage."
Mr Walker concluded "we are always mindful that the Chancellor's speech is followed by more detailed information which we shall be scrutinising closely."
THE NEW EURO AND EU TRADING
January 1, 2002 marks the demise of all the currencies of the EU States except for Denmark, Sweden and the UK.
Now is the time to start organising for these changes if you Buy or Sell your Services to EU States.
As a guide to those affected, the following details are being provided by WAPI.
From January 1st 2002 Euro will used throughout the Euro Zone.
New Notes and Coins will replace existing Currency, a short overlap period will allow for exchanging.
The Euro Zone consists of: Austria - Belgium - Finland - France - Germany - Greece - Ireland - Italy - Luxembourg - Netherlands - Portugal - Spain.
DENMARK, SWEDEN AND THE UK ARE NOT PART OF THE ZONE!
Euro Notes are to be issued in denominations of EURO‚5 ‚ 10 ‚ 20‚ 50‚ 100‚ 200 ‚500 and coins of 1, 2, 5, 10, 20, 50 cents and EURO‚ 1 and EURO‚ 2
As from Jan 1, 2002 all transactions will be in EURO'S and cheques and bills will be in EURO'S.
Most Business will have published a new Price Tariff for Goods and Services in EURO'S by the end of the year.
FEBRUARY 28, 2002 is the last date by which you can exchange your old Currencies!! (See Schedule below)
If you trade regularly with the Euro Zone, it may be worth opening a EURO'S account at your Bank.
As a guide to exchange value the EURO is approx. 62p Sterling.
The exchange rates for Euro Zone Currencies are fixed as follows:-
State EURO'S = Last Date to exchange by
Austria 13.76 28/02/02 Belgium 40.34 28/02/02 Finland 5.95 28/02/02 France 6.56 17/02/02 Germany 1.96 28/02/02 Greece 340.75 28/02/02 Ireland 0.788 09/02/02 Italy 1936.27 28/02/02 Luxbg 40.34 28/02/02 Neth. 2.20 28/01/02 Portugal 200.48 28/02/02 Spain 166.39 28/02/02 (The above rates are round to two decimal places)
By Dominique Vaughan Williams, Director of Marketing, Coface UK
E-mail dominique_vaughanwilliams@cofaceuk.com
Website www.cofaceuk.com
What is the mark of a good credit manager? Is it their ability to accurately assess credit risk; their success in collecting outstanding invoices; or even their mastery of relationship building?
Just the other month, Credico, (part of Coface UK, the credit solutions provider) was asked to help judge the Magazine Credit Manager of the Year on behalf of the Periodical Publishers Association (PPA). As we looked through the nominations, it became increasingly apparent that the best Credit Managers needed to be adept at more than just collecting money owed by customers or refusing them credit. In fact, the event prompted a lively discussion about what constitutes the model of a modern Credit Manager, before the winner (Girish Padhiar, of Emap Spectrum) was eventually chosen. While our conclusions may not be definitive, they do represent a fairly comprehensive guide to the demands of the job:
Personal qualities
Chasing customers for payment is obviously not for the fainthearted. However, while the description: "the iron fist in a velvet glove" might be applicable to many Credit Managers, the best clearly offer something more. Perseverance, for example, to chase unwilling payers; a sense of humour to respond to the excuses of the "cheque's in the post" variety; and diplomacy to resolve invoice disputes with major customers.
And it is even easier to list personal characteristics and behaviour, which would spell disaster in any credit control department. Gullibility would certainly be the Achilles Heel of anyone working in credit management, but on the other side of the coin, cynicism is equally unhelpful when it comes to developing a good relationship with customers. Over-familiarity with customers, inevitably leads to problems should they eventually default on an invoice, while displays of bad temper, or even shouting, is regarded within my company at least, as the worst crime a Credit Manager can commit.
Motivate the credit control team
The best Credit Managers are able to motivate the people around them and make them feel valued. The high staff turnovers which plague many Credit Departments inevitably cause disruption, making it difficult to adopt a consistent approach towards customers and forcing managers to bear the expense of recruiting and training yet more credit controllers.
For example, the winner of the Magazine Credit Manager of the Year had developed a team with an average of six years experience and had lost only two staff in the previous three years. Staff were recruited as school leavers or second jobbers, trained as credit controllers and encouraged to study for ICM qualifications. The result was a settled, well-motivated team who could offer continuity of service within the business and to customers.
Establish watertight credit control processes
For the best Credit Managers, it is not enough to simply process invoices. They should have a good working relationship with the Sales Department and be involved in the sales process from the moment a customer is given credit terms. No matter if it is the greatest sales force coup in years, a sale is not a sale until it has been paid for. The credit professionals recognise the best way to minimise the risk of extending credit, is to conduct a thorough check on the customer, through established ratings agencies, rather than trusting the instincts of a sales representative, more concerned about their commission!
Having agreed credit terms, the model Credit Manager will monitor clients and establish good business relationships with them, including taking the trouble to visit their offices and understanding the peaks and troughs in their business cycle. The ability to recognise the indications of financial difficulty as early as possible is key to successfully limiting losses. In addition, such tactics inevitably make it less awkward for customers to admit to having cash flow problems and make it easier to arrange a different payment schedule.
The personal touch also really works when it comes to resolving disputes - when a customer won't pay, a phone call will always produce results faster than an immediate solicitor's letter. Indeed, most organised Credit Control Departments now use electronic diary systems to plan which clients to call that day. Electronic systems can also pay dividends if used for the retrieval of invoices and signed orders in the event of any disputes.
Given the level of safeguards, which should always be in place, bad debts are sometimes seen as a sign of failure by the model Credit Manager. And yet all have to use their experience at some point to recognise when an invoice will not be paid and to judge whether to take expensive legal action, place the debt with a professional collection agency or to sell it on. The skill lies in identifying the most cost-effective solution and ensuring that every department, particularly sales, are aware of the action taken and why.
Measure results
The Magazine Credit Manager of The Year, was expected to validate and verify around 1000 orders per week against client orders and advertisements in three major weekly titles, four consumer monthlies, four monthly business to business titles and a variety of exhibitions and conferences.
With such a workload, it is therefore essential that accurate measures are used to gauge the effectiveness of the credit control policy and processes in place and establish benchmarks for future performance. Regular measures to determine the DSO (Days Sales Outstanding), cash collection (particularly as a percentage of the sales ledger) and the level of bad debts and credit notes issued, are a vital part of any Credit Manager's duties. What's more, without such data, it is often very difficult to persuade Sales Departments of the value of credit control procedures. For example, an experienced credit professional will often find it particularly useful to track all transactions that are approved against the advice of the Credit Department. Any time such a debt is written off, management and sales people should be made aware that the transaction was not credit approved.
The growing importance of Credit Management
Historically, Credit Managers have been in something of a Cinderella profession, generally regarded with disinterest by senior management and occasional distrust by the sales force. Indeed, their image has been in marked contrast with IT Managers who have been key to developing new Internet sites and e-commerce opportunities.
All the signs are that things are changing, and there is increasing recognition of Credit Management's crucial role within businesses. Thankfully, albeit when the economic outlook begins to seem less positive, Credit Control Departments are finally being properly appreciated as key to a company's financial health and the best in the profession, are receiving the credit they are due.
DEBT-RIDDEN COMPANIES MUST PLAN AHEAD TO AVOID CRISIS, WARNS KPMG RESTRUCTURING
Too many debt ridden companies are risking everything by assuming that a sale or refinancing is the answer, and then failing to plan for the potential failure of the transaction, warns KPMG Restructuring.
With the corporate debt-to-profit ratio now at historically high levels and continuing pressure in the bond market, the lack of a contingency plan could cause a crisis for an underperforming company attempting a disposal to relieve its debt burden.
Philip Davidson, Head of KPMG Restructuring says: "An inability to raise further debt, together with the significant financial demands of servicing the existing debt, often provoke lenders - be it banks or venture capital houses - to implement exit strategies - often a disposal to repay the businesses' debts. If that strategy fails, there is likely to be a further loss of trust and confidence in the business within the market place resulting in destablisation and loss of shareholder value.
"Clearly most businesses do not want to be forced into that position in the first place, so they need to put their plans in place now. However, if they are involved in a disposal - for whatever reason - contingency planning should be considered part of the due diligence procedure. Lenders will view such actions favourably and buyers will be less able to drive the price of the sale down, as bidders will understand that there are alternative courses of action open to the business."
Mr. Davidson suggests that any contingency plan should contain the following four key elements:
"Where debt is secured against a bond, this can bring particular problems for an underperforming company. KPMG was involved in a situation where a highly leveraged business had been funding its European expansion programme through a syndicated bond facility. Poor company performance and contraction of the bond market prevented repayment of the debt and the company's lenders enforced an alternative exit via a company sale. KPMG Restructuring worked with the company to develop a contingency plan to ensure that, if the transaction failed, its lenders would continue to support the business whilst alternative options were pursued.
"This example shows how the recent economic downturn has added a high degree of uncertainty to all businesses, particularly those with high debt-to-profit ratios. Whether they are involved in a transaction, or if they are simply trying to maintain a steady course in relatively difficult circumstances, the need to prepare for future uncertainties should not be overlooked, and should form the backbone for sensible business planning - never more so than now."
KPMG Restructuring is one of the leading providers of business performance solutions to off plan or underperforming companies in the UK, Europe and worldwide. We work with senior management to stabilise the business, identify the underlying reasons for off plan performance, develop a tailored mix of financial, operational and communications strategies to improve performance and, ultimately, work to rebuild stakeholder confidence and shareholder value.
FURTHER DETAILS ON ENTERPRISE BILL ANNOUNCED
New details were given on the 28 November of reforms to the competition and insolvency laws to help make the UK the best place in the world to do business.
The proposals outlined by Melanie Johnson, Minister for Competition, Consumers and Markets include measures to stimulate competition, empower consumers and promote enterprise and follow the publication of two White Papers on 31 July.
Melanie Johnson said:
"The Enterprise Bill is a key part of our mission to promote enterprise and drive up productivity in the UK which will improve living standards for us all.
"Strong competition drives improvements in efficiency and innovation across the economy. Entrepreneurs willing to take risks are essential to economic growth. Our proposals will strengthen competition, benefit consumers, and encourage enterprising behaviour."
Insolvency
Corporate insolvency law will be reformed by restricting the use of administrative receivership and streamlining administration; making it quicker, more flexible, easier to access and fairer.
The system of administration will be streamlined. The Government will provide an out-of-court route into administration for both floating charge holders and directors, making it simpler, cheaper, easier and quicker to access. At the same time, we will provide adequate safeguards to deal with the minority of directors who may try and abuse the system.
The Government will remove bureaucratic requirements and introduce clear time limits so that administration is concluded quickly and doesn't run on, to the detriment of creditors.
The purposes of administration will be simplified so that it is clear that the aim of the procedure is to rescue companies in financial difficulties or where that is not possible to achieve a better realisation of assets than on a winding up.
The Government will restrict the use of administrative receivership and shift the balance in favour of administration, which is a collective procedure and takes account of the interests of all creditors.
Proposals have been set out to provide a modern bankruptcy regime that encourages entrepreneurship and provides a fresh start to those who have failed through no fault of their own. At the same time we will provide effective protection against the small minority of bankrupts who abuse their creditors and the public.
Abolishing the Crown's preferential right to recover unpaid taxes ahead of other creditors will bring real benefits to unsecured creditors, including many small businesses.
Modernising the financial regime of the Insolvency Service - simplifying the fee structure and bringing increased transparency and simplicity. Reforming the Insolvency Service Account will mean that creditors, including many small firms, receive the maximum possible investment return.
The Queens Speech announced that the Enterprise Bill would be taken forward in the first Parliamentary Session. White Papers "Productivity and Enterprise: A World Class Competition Regime" (Cm 5233) and 'Productivity and Enterprise: Insolvency - A Second Chance' (CM 5234), launched on 31 July 2001, are both available on the DTI website at http://www.dti.gov.uk/enterprisebill/index.htm Copies of the responses to consultation are available in the DTI Library.
The Pre-Budget Report included summaries of the proposals on competition and insolvency. The Government will publish in December a statement of its position on those issues that were subject to consultation. More details of the insolvency proposals will shortly be placed on the insolvency website http://www.insolvency.gov.uk/reform.htm
Competition Measures
Under the new markets regime, the OFT will have powers to refer any sector to the Competition Commission where it has competition concerns, and the Commission will be able to impose the full range of available competition remedies, including divestment remedies. There are currently sectors (e.g. certain aspects of telecommunications and transport) where the power of reference is reserved to Ministers.
A statutory maximum timetable will now be set for market inquiries. To ensure that it can meet the new statutory deadlines the Competition Commission will have powers to impose effective sanctions on parties where they do not provide information on time.
The accountability of the independent competition authorities will be enhanced in line with their stronger powers. Parties aggrieved by decisions will have a new statutory right of appeal.
Ministers will continue to take decisions on the small minority of mergers and markets cases which raise issues of national security. The new legislation will allow for any merger involving companies with sensitive Ministry of Defence contracts to be investigated, regardless of its size.
The Government will remove Schedule 4 to the Competition Act to ensure that the professions are fully subject to competition law.
Deterring cartels
The new offence should carry a maximum custodial sentence of five years. This compares with international precedents (Canada, Japan), and is below the maximum sentence for existing serious fraud offences in the UK. We also propose that fines may be imposed in addition, or as an alternative in less serious cases or where there are mitigating circumstances.
The offence will be tightly defined ensuring that the majority of honest businesses will have nothing to fear. The offence will be based on "dishonesty" covering price-fixing, market-sharing, limitation of production and bid-rigging. This definition will ensure that no bona fide activity is criminalised. In addition, an offence based on dishonesty will focus attention on the wrongful nature of the conduct.
The offence will not extend to vertical agreements, nor include corporate liability.
The Serious Fraud Office (SFO) should be the lead prosecutor in England, Wales and Northern Ireland with the OFT as an additional named prosecutor. The Lord Advocate will be the prosecutor for Scotland.
Whistle-blowers will be encouraged to come forward to the OFT. The OFT are working to ensure that their criminal leniency regime will be compatible with existing UK and EC civil leniency programmes.
Consumers
The Competition Commission Appeals Tribunal (CCAT) will be able to hear claims for damages in competition cases. This will create a cheaper and quicker route for aggrieved persons - both consumers and businesses - to get the compensation they deserve for the harm they have suffered as a result of anti-competitive activity.
In addition, representative bodies will be able to bring damages actions in front of the CCAT on behalf of groups of named and identifiable consumers. This will help consumers bring actions where collectively substantial harm has been caused, allow individually they may only have suffered a relatively small level of harm. This will be less costly for the consumers concerned and will also create a more streamlined procedure as the CCAT will be able to deal with all the claims in a single case.
Because competition breaches can result in a general loss to consumers (for instance higher prices generally), where a company has been fined, the Government proposes to enable consumer groups to make claims to spend the money on benefits to consumers generally.
The Office of Fair Trading will be given enhanced powers to approve self-regulatory codes of practice which safeguard and promote the interests of consumers. And the OFT will have a set timetable to respond to "super-complaints" from designated consumer bodies so as to strengthen the voice of the consumer in competition.
GETPAID IN LINE WITH INDUSTRY SUPPORT OF J2EE
Parsippany, NJ, November 26, 2001 - The GETPAID® Corporation, a leading supplier of receivable management software and services, announced today its alignment with leading organizations in embracing Java 2 Enterprise Edition (J2EE) technology.
In accordance with its commitment to J2EE technology, The GETPAID Corporation recently released GETPAID 7i Enterprise, an n-tiered, J2EE compliant solution with robust cross-platform support, straightforward integration of multiple disparate data sources; and faster run-time performance. "J2EE technology is superior to its counterparts," states C.J. Wimley, senior vice president, product planning and development at GETPAID. "Using this technology, we offer a cross-platform solution with strong security capabilities; this is critical for our customers who deal with sensitive financial data."
Leading organizations such as Oracle, SAP, the Gartner Group, and others have either adopted or endorsed J2EE technology. "Support for open architecture is a priority in the IT world," adds Wimley. "With J2EE we are providing our customers with easily distributed and highly scalable solutions. J2EE's open standards ensure compatibility without mandating the use of a specific vendor or product."
As partners with both Oracle and SAP, GETPAID recognizes the need to support the growing number of industry standards, including J2EE. "Our use of J2EE is in line with our proven history in delivering reliable, scalable and mission critical integrated applications," comments Wimley. "The industry shift towards J2EE compliant solutions is indicative of a demand for more open and collaborative advancements in enterprise software solutions."
Proven Results
GETPAID offers cash collection and invoice dispute resolution systems with multiple currency and languages for global use, a powerful report writer, and a web-enabled product. GETPAID uses configurable strategies to drive the collection process. Companies who implement GETPAID see a reduction in their past due receivables of 25% or more, and a decrease in outstanding disputes of 30-50%. GETPAID automatically notifies and assigns invoice problem owners, tracks the resolution process, and escalates disputes as defined in a user-defined matrix.
About The GETPAID Corporation
The GETPAID Corporation is the leading provider of collection and dispute resolution software used by thousands of commercial collectors in B2B credit departments to manage billions of dollars in past due receivables. GetPAID
is based in Parsippany, NJ, with offices worldwide.
The GETPAID Professional Services team is comprised of experts who deliver installation, system configuration, training and on-going support services to the more than 500 installations worldwide in a wide array of companies, industries and environments.
For more information, contact GETPAID at 1-800-395-9996 or visit www.getpaid.com
EQUIFAX AND INTERSECTIONS ANNOUNCE AGREEMENT TO CREATE NEW INFORMATION PRODUCTS TO SERVE EXPANDING CONSUMER MARKET
ATLANTA and CHANTILLY, Va., November 29, 2001 - Equifax Consumer Services, the leader in empowering consumers with credit information solutions and Intersections Inc., a premier provider of credit monitoring and fraud prevention services to consumers, today announced a multi-year strategic partnership. The partnership will create a comprehensive suite of information services to meet the growing demand of consumers who wish to better manage their information privacy and credit health.
The partnership leverages the strong market positions of both companies while expanding both online and offline information services. In addition to direct marketing to consumers, the companies will broaden distribution channels for co-branded and private labeled services targeted to financial institutions, large employers and large consumer associations.
"Intersections is recognized for their excellent customer service process, consumer- friendly culture, strong product development skills and fulfillment platform which supports both online and offline consumer services," stated Virgil Gardaya, general manager, Equifax Consumer Services, "They are a premier company and will add substantial new opportunities for our consumer services business."
"Equifax was the pioneer in empowering consumers with online credit management services," stated Michael Stanfield, Intersections' CEO, "By forging a partnership with Equifax, Intersections will be able to leverage their world-class technology and data management capability. Our combined strengths will substantially increase the distribution networks for our products and services."
Tony Lomas, Steven Pearson, Dipankar Ghosh and Neville Kahn of PricewaterhouseCoopers, were appointed joint administrators on 29 November 2001 to the European holding company of the Enron group and a number of its operating companies. Their appointment follows the credit-downgrading of Enron and the impact that has had on its ability to continue to trade. Inevitably, job losses are expected. Teesside power station and the utilities and service businesses at the Wilton chemical complex are not included in the administration order.
Tony Lomas commented:
"There is already very serious interest in Enron's metal business and negotiations are expected to lead to a successful deal in the near term. The Enron group built an extraordinarily complex network of integrated businesses and this will take some time for the administrators to work through. Our primary focus will be on the large physical assets and trading position of the group."
FOUR OUT OF SIX BUSINESSES SOLD AT UEF (IN ADMINISTRATION)
Joint administrators from KPMG Corporate Recovery who were appointed to United Engineering Forgings Limited on 12 June 2001, have sold four out of its six businesses as going concerns. The company employs 1,500 employees at six sites across the UK and over recent weeks going concern sales have been completed at the Ayr site (to Imatra Steel, a Finnish group), Sheffield and Lincoln (to Bifrangi, an Italian group) and recently, the Chesterfield Cylinder business has been sold to Apoldaer, a German group.
Myles Halley, KPMG Corporate Recovery partner, and the joint administrator said
"We are delighted to have sold four out of the six businesses as going concerns, saving 800 jobs in the process. These deals have taken a considerable amount of time to achieve, particularly since the world events of 11 September. With all the purchasers being from overseas, these events had a significant effect on the speed with which these sales have been concluded."
"We are still trading from the other two West Midlands sites at Bromsgrove and Kidderminster, and we are still seeking purchasers as a going concern. However, if no purchaser can be found over the coming weeks it is likely that we will have to wind these operations down."
JOBS SECURED AT SANDWELL CASTINGS
One hundred and twenty jobs have been saved at a Black Country manufacturing company which has been in receivership for the past three months.
KPMG are pleased to announce that the employees at Sandwell Castings in West Bromwich were told on the 26 November that a management buy-out, led by directors Martin Allport, David Blackmore , Steven Lloyd, Peter Green and advised by Ian Bowland from HLB Kidsons in Birmingham, had safeguarded all their jobs.
Sandwell Castings, a sixty year old business, produces aluminium and copper castings, mainly for use in the automotive and truck manufacturing markets. Administrative receivers from business advisory firm KPMG in Birmingham were appointed to the company on August 29th. At the time, the company's plight was blamed on the general economic malaise which affected the company and its clients alike and the impact of the strong pound on exporting.
Commenting on the sale, Beverley Marsh from KPMG said: "We are delighted to have been able to broker this deal whereby so many employees' jobs were saved. In this instance, going into receivership provided the business with the ideal opportunity to restructure itself in line with a reduced order book. We were helped immensely throughout the administrative receivership by suppliers and customers alike who were incredibly supportive, meaning that we did not lose one customer throughout the three months."
Paul Brown, Manager at Lloyds TSB Commercial Finance in Birmingham quickly put together an asset based lending facility to provide the funding required to enable the Directors to buy the business from the receivers.
Paul commented: "Lloyds TSB Commercial Finance has a 12 year relationship with Sandwell Castings and as such has developed a detailed understanding of the company and its needs. Our close relationship with the company has enabled us to tailor a financial package that will continue to support them as they move forward to a successful future."
Steven Lloyd of Sandwell Castings said: "Sandwell Castings is now in a stable position and can concentrate on the development of recently acquired new business. In particular, we hope to make the most of our fully mechanised production sand foundry, believed to be unique in the UK for the production of aluminium castings."
*** FORTHCOMING CREDITORS MEETINGS ***
For detailed information on the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.com/cgi-bin/gazette/liq/nots.pl
TW LW TW LW
USA 1.42 1.41 Canada 2.25 2.26
Austria 22.14 22.16 Portugal 322.57 322.87
France 10.55 10.56 Belgium 64.90 64.96
Finland 9.56 9.57 Italy 3115.44 3118.32
Germany 3.14 3.15 Sweden 15.27 15.12
Holland 3.54 3.54 Switzerland 2.36 2.34
Spain 267.72 267.97 Ireland 1.26 1.26
Australia 2.75 2.73 Denmark 11.97 11.98
Hong Kong 11.15 11.07 Euro 1.60 1.61
Africa Com 14.87 13.87 Saudi Arabia 5.36 5.32
India 68.45 68.08 Malaysia 5.43 5.39
Singapore 2.61 2.60 Norway 12.80 12.75
Japan 177.09 174.46
TW This week LW Last week.
Lloyd's of London, the insurance market, is facing far bigger losses from terrorist attacks on September 11th than it had first predicted.
BAE Systems, a British aerospace and defence group, issued its second profits warning of the year.
The planned takeover of Enron by Dynegy collapsed after Dynegy pulled out. American regulators remain fretful about the impact of a probable collapse of Enron on financial markets. We have reported on the demise of Enron Europe Ltd in our Insolvency Section.
Care UK, providers of care for the elderly and mentally ill, announced pre-tax profits of 6.65 million pounds, on turnover of 81.2 million, for the year ending 30th September 2001. Earnings per share stand at 10.6p, on increased capital.
Diploma, the components distribution group, announced pre-tax profits of 8.7 million pounds, after exceptional charge, on turnover of 86.9 million, for the year ending 30th September 2001. Earnings per share stand at 21.5p on reduced capital.
Imperial Tobacco announced pre-tax profits of 494 million pounds, on turnover of 1,474 million, for the year ending 29th September 2001. Earnings per share stand at 67.7p.
Merchant Retail announced pre-tax profits of 1.67 million pounds, on turnover of 50.2 million, for the six months ending 29th September 2001. Earnings per share stand at 1.1p.
MERGER NEWS
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger/s to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Completed acquisition by Uberior Investments plc and City & General (Holdings) Limited of The Burford Group Limited
MELANIE JOHNSON RELEASES CARLSBERG A/S AND CARLSBERG-TETLEY FROM UNDERTAKINGS
Melanie Johnson, Minister for Competition, Consumers and Markets,announced on the 27 November 2001 that she had formally released Carlsberg A/S and Carlsberg-Tetley PLC from undertakings given in 1992 under the Fair Trading Act 1973. These undertakings were given following an adverse report by the then Monopolies and Mergers Commission (MMC) on a joint venture between the Allied Lyons PLC and Carlsberg A/S. Her decision was in accordance with the advice of the Director General of Fair Trading ("DGFT") that it is no longer appropriate to hold Carlsberg A/S and Carlsberg-Tetley to their undertakings as they are either time expired or have no continuing practical effect.
MELANIE JOHNSON RELEASES FOSTERS BREWING GROUP FROM UNDERTAKINGS
Melanie Johnson, Minister for Competition, Consumers and Markets, announced on the 27 November 2001 that she had formally released Fosters Brewing Group from undertakings in lieu of reference given in 1995 under the Fair Trading Act 1973. These undertakings were given following the advice from the then DGFT in 1995 that the acquisition by Scottish and Newcastle from Fosters of its Courage brewing interests raised competition concerns. Her decision was in accordance with the advice of the Director General of Fair Trading ("DGFT") that the undertakings had been complied with and were now time expired.
The then Secretary of State for Trade and Industry decided in 1995 to seek undertakings in lieu of reference from Fosters and Scottish and Newcastle, in respect of the acquisition by Scottish and Newcastle from Fosters of its Courage brewing interests. The parties undertook to release certain number of pubs from exclusive supply agreements with the Inntrepreneur Pub Company Limited.
MELANIE JOHNSON RELEASES GRAND METROPOLITAN AND FOSTERS BREWING GROUP FROM UNDERTAKINGS
Melanie Johnson, Minister for Competition, Consumers and Markets Affairs, announced on the 27 November 2001 that she had formally released Grand Metropolitan and Fosters Brewing Group from undertakings given in 1991 under the Fair Trading Act 1973. These undertakings were given following an adverse report by the then Monopolies and Mergers Commission (MMC) on a merger between Grand Metropolitan and Elders IXL. Her decision was in accordance with the advice of the Director General of Fair Trading ("DGFT") that it is no longer appropriate to hold Grand Metropolitan and Fosters to their undertakings as the companies no longer have any interest in the business activities considered by the MMC.
The then Secretary of State for Trade and Industry referred the proposed merger between Elders IXL Ltd and Grand Metropolitan to the MMC on 27 April 1990. The MMC's report was published on 16 October 1990. It concluded that the arrangements would be against the public interest. Grand Metropolitan gave undertakings that until 31 October 1992, it would not have an interest in or manage more than 1,750 licensed premises; and after four years from completion of the merger it would not enter into any agreement for the supply of beer for its licensed premises, except where these agreements resulted from an open tender for that contract. Fosters gave undertakings that it would not manage more than 20 licensed premises and otherwise have any interest in any licensed premises; and it would not seek to influence, as shareholders in Inntrepreneur Estates Limited ("IEL"), any decision by IEL as to the brands or sources of purchase of beer for retail sale in such premises.
COMPETITION COMMISSION INVITES EVIDENCE ON THE PROPOSED ACQUISITIONS BY JOHNSTON PRESS OF EIGHT TRINITY MIRROR TITLES
Melanie Johnson, DTI Competition Minister, has asked the Competition Commission to look into the proposed transfer to Johnston Press of eight local newspaper titles in the East Midlands currently published by Trinity Mirror. The titles are: Peterborough Herald & Post, Derby Trader, The Trader (Alfreton, Eastwood, Ilkeston, Ripley), Harborough Herald & Post, Stamford Herald & Post, Northampton Herald & Post, East Northants Herald & Post series and the Brackley and Towcester Post series.
The Commission will consider whether the acquisitions may be expected to operate against the public interest. The Commission has been asked to report to the Secretary of State on the proposed acquisitions by 22 February 2002. The report will be published at a later date.
The Commission would like to hear from all interested parties, in writing, by 12 December 2001. To submit evidence, please write to:
The Reference Secretary (Johnston/Trinity)
Room 563
Competition Commission
New Court
48 Carey Street
LONDON WC2A 2JT
or e-mail: timothy.oyler@competition-commission.org.uk
Paul Geroski, a deputy chairman of the Commission, will chair the inquiry. The other members of the group are Gill Owen and Anthony Clothier. They will be joined by Linda Christmas and William Gibson who are members of the newspaper panel appointed by the Secretary of State.
Further information can be obtained from the Commission's website at www.competition-commission.org.uk
JOHNSON GIVES GO AHEAD TO JOINT VENTURE BETWEEN EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY NV (EADS) AND NORTEL NETWORKS LTD (NORTEL)
Competition Minister Melanie Johnson has decided not to refer the proposed joint venture between European Aeronautical Defence and Space Company NV (EADS) and Nortel Networks Ltd (Nortel) to the Competition Commission, after both parties promised to address public security concerns arising in this case. Melanie Johnson's decision is made in accordance with the recommendation of the Director General of Fair Trading (DGFT).
Melanie Johnson said:
"The DGFT recommended, taking into account the advice he has received, that the merger raised public security concerns relating to confidentiality of sensitive information and to the continued capacity in the UK for developing, operating and maintaining technologies essential to the UK's security.
Since both parties have agreed to address these concerns by giving behavioural undertakings, in line with the DGFT's advice, no reference to the Competition Commission will be necessary."
The proposed joint venture between EADS and Nortel was cleared by the European Commission under Article 6 (1) (b) on 1 October 2001. Although the Commission has sole jurisdiction to investigate the competition aspects of mergers under the EC Merger Regulation, Member States may exercise a residual power under Article 21 (3) of the EC Merger Regulation to take 'appropriate measures to protect legitimate interests other than those taken into consideration'. Legitimate interests are defined in Article 21 (3) as including public (national) security.
Section 75G of the Fair Trading Act 1973 (inserted by section 147 of the Companies Act 1989 and amended by the Deregulation and Contracting Out Act 1994) enables the Secretary of State to accept undertakings as an alternative to making a merger reference to the Competition Commission. The Secretary of State must consider whether such undertakings remedy or prevent adverse effects of the merger specified by the DGFT.
A new version of the British Monarchy web site was launched by The Queen during the reception for the broadcasting industry at Buckingham Palace on Wednesday, 28th November, 2001.
The new site retains its wealth of information about the British Monarchy and its history, members of the Royal Family, Royal ceremonies and residences. Interesting additional features include a Golden Jubilee section with a review of each year of The Queen's reign; a special children's section with a colouring game; a recruitment section with current vacancies in the Royal Household; forms for applying for a telemessage from The Queen; information on the Royal Collection, its galleries and exhibitions; and the latest Royal financial reports for downloading.
The new Royal web site takes advantage of changes in Internet technology. The site has a clean, crisp graphical interface, and uses Web technologies including Flash and DHTML. A browser-based Content Management System will allow the site to be updated on an hour-by-hour basis with Royal news as required.
The site URL remains http://www.royal.gov.uk. The British Monarchy web site was originally launched by The Queen in March 1997. The site is visited by people from all over the world, with nearly 2 million pages viewed every month. Other Royal web sites include those of The Prince of Wales and Prince Michael of Kent.
'LOOKING FOR A BREAK IN CHINA'
Alexander calls on British IT industry to take advantage of new opportunities
E-commerce Minister, Douglas Alexander, last week called on the UK IT industry to take advantage of new business opportunities with China following the country's accession to the World Trade Organisation.
In an e-China speech at the China Britain Business Council, Douglas Alexander said that China and the UK should work towards establishing compatible technology standards that will promote an open and competitive market. This would allow China access to a wider range of markets with technological companies in the Western world - as well as offering a rich new market to UK business.
China already has the world's largest number of mobile phone users and it is estimated that by 2005 they will have 290 million users and 220 million Internet users. In the UK approximately half of adults (23 million) have access to the Internet and we spend £1.2bn on-line.
Douglas Alexander said;
"China's commitment to economic reform has led to rapid economic expansion over the last 20 years and an explosion of foreign investment. But this is only the beginning. There are enormous benefits of a close trade partnership between the UK and China. It is already the biggest mobile market in the world with over 26.5 million internet users and penetration up 57% in a year".
Trade and Industry Secretary, Patricia Hewitt and Mr Wu Jichuan, China's Minister for Information Industries, signed a Memorandum of Understanding last month agreeing to develop closer thinking on e-commerce and ICT policy and a greater two way flow of investment. It is hoped a closer dialogue on policy and technology issues will lead to greater market and investment opportunity.
Douglas Alexander added;
"China offers a fertile market for ICT development. Common technology standards will be vital to successful expansion and exploitation of the market - for example developing compatible standards for 3G and digital TV. I look forward to a prosperous partnership that will contribute to mutual success.
"The Internet is the fastest growing market place in the world economy. It has been predicted that by 2003 the value of e-commerce is likely to exceed £800 billion."
A high level Government and Business seminar on ICT and e-commerce was held in Beijing on November attended by some of China and the UK's leading firms and policy makers including Cable and Wireless, Reuters, China Netcom and Datang Telecom.
There is already a considerable amount of UK business activity in China including Vodafone, Motorola UK, and Marconi as well as numerous SMEs. Vodafone has a minority stake in China Mobile, China's largest wireless carrier. Motorola have also recently signed a contract with China Mobile to expand its GPRS network. Motorola UK specifically has been involved with the development of base station and mobile handset manufacture. In the UK, there are already over 120 Chinese companies, 6 of which are listed on the Stock Exchange.
The CBBC (China-Britain Business Council) Opportunities for UK companies in China Conference was sponsored by the CBI and held at CBI Headquarters, Centrepoint Tower, 2000 Oxford Street, London on Monday 26 November 2001.
The CBBC is a business led partnership between government and industry helping British companies to business with China. Further information is available at www.cbbc.org
The Memorandum of Understanding was signed by Patricia Hewitt and Minister Wu Jichuan on 9 October, during his visit to the UK. The MoU covers co-operation between UK and China on a range of ICT and e-commerce areas such as digital TV, 3G communications and broadband technology.
4-6 December Online Information 2001 Olympia Grand Hall, London Wednesday 5 December The GETPAID Corporation's free half-day seminar Using Technology to Improve Your Cash Flow The South/Windsor Marriott Hotel, Langley, Berkshire, SL3 8PJ Time: 08.00 For more information, call 01344.887.407. Monday 10 December Wessex Branch of the ICM Quiz Night - Sponsor Virtual Mailroom Ltd Venue - Royal Southampton Yacht Club 1 Channel Way, Ocean Village, Southampton SO14 3QF Time : 7.00 pm for 7.30 pm Refreshments provided Monday 14th to Thursday 17th January 2002 ICM Examinations Thursday 24 January 2002 Sussex & Surrey Branch of the ICM Annual General Meeting Followed by Dinner. Speaker: To be advised Venue - The Imperial Hotel, Hove Time: 7.00 for 7.30 p.m. 27 - 29 January 2002 FCIB - A Global Association of Executives in Finance, Credit & International Business 108th International Conference & Workshop In Europe Amsterdam Marriott Hotel The Netherlands For further information Telephone: + 44 (0) 1865 481 630 Fax: + 44 (0) 1865 481 482 Email: timlane@fcib-europe.org Website: www.fcibglobal.com Friday 22 February 2002 Debt Sale & Purchase Credit Today, Savoy Hotel, London The second annual debt sale and purchase conference chaired by Rob Levick. For details e-mail carleen@credittoday.co.uk Wednesday 13 March 2002 ICM National Conference and Exhibition Heritage Motor Centre, Gaydon near Warwick For full details tel 01780-722907 or e-mail training@icm.org.uk 7 - 13 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning London, 80 Strand, WC2R 0RL Contact Jane Lees - E-mail jane.lees@nyif.com +44 (0)20 7010 2568 22 - 28 April The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - Hong Kong, location tbc Time: 08.30 Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 10 - 16 June The Credit Academy, 7 day Residential Course FT Knowledge Financial Learning Venue - New York, location tbc Contact Jane Lees - E-mail jane.lees@nyif.com Tel +44 (0)20 7010 2568 If you have an event coming up which is credit management related and you would like us to make an entry in the Diary section please e-mail the details tojarnold@creditman.co.uk
Alternatively you may use the email interface. email creditman-request@mailing-list.cyberstrider.net with the word Help in the subject line for details.
Business Credit Management UK: John Arnold jarnold@creditman.co.uk
Business Credit News UK: Pat Williams pwilliams@creditman.co.uk