Here, we share a few tips which should go some way in helping your cash flowing in.
Stephen Cowan, Managing Director of Yuill + Kyle, will be presenting at MBL’s live webinar on ‘Effective Debt Recovery in Scotland – Potential Problems & Practical Solutions’, which will take place on 12 August 2021.
One significant consequence of the coronavirus pandemic is the impact it will have on business risk, particularly as the economy starts to recover as we move out of lockdown. It will then become apparent to many creditors that the companies they have been dealing with which can be classified as “zombies” or “phoenix”. Currently, this may not be immediately apparent due to the lack of financial transparency.
This has arisen due to the relaxation of certain statutory filing requirements introduced during the pandemic as a means of lightening some of the administrative burdens faced by companies during the crisis. In addition, insolvencies are expected to increase once government financial support schemes begin to taper off and the current moratorium on liquidation petitions comes to an end. Indeed, some commentators are predicting a tidal wave of insolvencies.
In this Yuill + Kyle Debt Recovery Masterclass, Stephen Cowan, Managing Director of Yuill + Kyle, and John Mackay, Account Manager at Aon, discuss the topic of credit insurance, how it works and the key considerations for businesses.
In November 2020, we wrote about the difficulties that businesses were facing in getting paid on time – and with £23.4 billion being owed to small firms in the UK, it’s no wonder that this has the Government’s attention.
While the Late Payment of Commercial Debt (Interest) Act 1998 has partially shrunk the length of time which businesses have to wait until cash actually hits their coffers, the late payment experience is testament to the fact that this legislation, solely, is not enough.
Following the Scottish Government's announcement on 4 January 2021, Yuill + Kyle would like to assure you that we remain open to support you and your business at this time.
Here, Managing Director Stephen Cowan explains some of the ways in which we can assist you with your debt recovery needs, from letters before action to court action and judgment enforcement.
If we can be of assistance to your business, please contact our team today.
It goes without saying that one of the greatest bugbears for businesses is getting paid on time. In the past, the Government has helped with legislation. Indeed, the Late Payment of Commercial Debts (Interest) Act 1998 has gone a long way in reducing the length of time in which commercial debt is paid. In the event of late payment, this legislation (along with subsequent EU Directives which have been enshrined into UK law by statutory instrument) allows businesses to claim interest, collection costs and compensation. So, why does the problem persist?
Suppliers use various techniques to protect themselves in the event of a corporate purchaser’s insolvency. This will include retention of title as well as the option of terminating the supply of goods or services in the event of a customer’s insolvency. More often than not, such provisions will be contained in the supplier’s terms and conditions of business which, if correctly incorporated, will govern the party’s contractual relationship.
Currently, £23.4 billion worth of late invoices are owed to small firms across Britain, impacting on businesses’ cash flow and ultimate survival. On 1 October, to address the scourge of late payment, Small Business Minister Paul Scully announced proposals to ensure small businesses in the UK are paid on time.
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