Business Information: Latest Reports and Business ShortsUK late payers allowed 20 more days to pay in Q1 2015. New figures on the amount of debt UK businesses are dealing with through late payment of their invoices throw into sharp relief the huge scale of the issue. New figures from Lovetts reveal that suppliers are bank rolling their customers for an average of 103 days from the point they issue an invoice, before they threaten legal action with a Letter Before Action (LBA). This is a 24% increase on the amount of time the same sample waited in Q1 2014 when the time from invoice to LBA was 83 days. Charles Wilson, CEO of Lovetts says: "From our figures, the scale of the late payment scandal in the UK is getting worse not better, despite the high profile campaigns to stamp out the problem. As the business climate improves, it seems that British businesses are reluctant to rock delicate client relationships by threatening legal action but their invoices will simply end up at the bottom of the pile." To view Lovetts' news release go to https://www.lovetts.co.uk/news/Late-payers-allowed-20-more-days-to-pay-in-Q1-2015.aspx.ING predicts world trade recovery. GTR (Global Trade Review) has published an article, 'ING predicts world trade recovery', which advises that an ING report predicts that world trade will outpace the growth of world GDP by next year, despite trade numbers falling for the fourth consecutive year in 2015. Raoul Leering, head of international trade research at ING, told GTR. "There is a specific effect coming from Europe, which has been experiencing an economic downturn that has been deeper and longer than in the past. It had an amplifying effect on pushing world trade down during the downturn and now that Europe is recovering it will have an amplifying effect on the ratio going upward." However while retaining an optimist outlook, the report notes that the European recovery's positive effect on world trade will not be as big as the negative one experienced during the crisis. To view the article on GTR's website go to http://www.gtreview.com/news/europe/ing-predicts-world-trade-recovery/?_cldee=c2FsbHkuYnJvd25AY3JlZGl0aW5zdXJhbmNlbmV3cy5jby51aw%3d%3d&urlid=17.Lowest level of company insolvencies for 7 years, however companies remain vulnerable. The Insolvency Service latest statistics for Q1 2015 show that total company insolvencies in England and Wales were at their lowest level since Q4 2007. A total of 4,052 companies entered into formal insolvency in Q1 2015, which was 1.3% less than Q4 2014 and 11.3% lower than Q1 2014. In addition, the number of creditors' voluntary liquidations was at its lowest since Q2 2008, with a 3.7% decrease on the previous quarter and 5.6% lower compared to the same period in 2014. Although this is undoubtedly positive news, Graham Bushby, Baker Tilly's National Head of Restructuring and Recovery, cautioned that these statistics don't tell the whole story: ". . . there are many companies still experiencing significant financial distress and a number of reasons why we could see insolvency levels rising again within the next one to two years." To view Baker Tilly's news release go to http://www.bakertilly.co.uk/media/news/Baker-Tilly-responds-to-latest-corporate-insolvency-statistics.aspx.Eurozone periphery grows faster than the core for the first time since 2006 - PwC comments. In response to flash Q1 2015 Eurozone GDP figures produced by Eurostat, Richard Boxshall, senior economist at PwC, commented: "Eurozone GDP growth started off the year on the right foot expanding by 0.4% quarter-on-quarter, outstripping UK and US growth. However, the real success story lies in the peripheral Eurozone economies. Spain grew by 0.9% and Cyprus by 1.6%, which was the fastest rate recorded in the Eurozone. Peripheral GDP growth is now within a hair's breadth of the core economies and the last time they grew faster was in the first quarter of 2006." Germany, the largest Eurozone economy, expanded by 0.3% quarter-on-quarter with net exports dragging down the headline growth number. The UK also expanded by 0.3%. In contrast, France expanded by 0.6% in Q1 driven by strong household consumption, and an accumulation of inventory. To read PwC's news release go to http://pwc.blogs.com/press_room/2015/05/eurozone-periphery-grows-faster-than-the-core-for-the-first-time-since-2006-pwc-comments.html.Asia accounts for 40% of global output and two-thirds of global growth. According to the IMF's latest Regional Economic Outlook, not only has Asia and Pacific's position as the growth engine of the world economy intensified in recent years, but the outlook continues to be stable and robust with growth of 5.6% and 5.5% predicted in 2015 and 2016 respectively. Furthermore, while in 2000 the region accounted for less than 30% of world output, by 2014 this contribution had risen to almost 40% and the region accounted for nearly two-thirds of global growth last year. However, the report also warns that although Asia will remain the global growth leader, vulnerabilities associated with increased domestic and foreign debt are rising. To view the IMF's report go to http://www.imf.org/external/pubs/ft/reo/2015/apd/eng/areo0415.htm.UK firms with fewer than 50 employees are typically twice as likely as larger businesses to get paid beyond the agreed terms. Dun & Bradstreet has published an article, 'Late Payments Spark Action from UK Lawmakers', which reports that a recent findings from the Association of Chartered Certified Accountants has shown that firms with fewer than 50 employees are typically twice as likely as larger businesses to get paid beyond the agreed terms. In addition, although late payments affect all sizes of company, Bacs data suggest that SMEs may bear the brunt of poor payment practices. As of January 2015, SMEs were owed more than GBP32 billion, down from GBP39.4 billion in January 2014; on the other hand, large firms were owed less than GBP10 billion, up from GBP6.7 billion in January 2014. SMEs face an average late payment burden of GBP31,901 per year. To read D&B's news release go to http://bizmology.hoovers.com/late-payments-spark-action-from-uk-lawmakers/.BCC: UK Businesses want to be in the EU. In the largest private sector business survey on the issue of the UK's relationship in Europe, the BCC (British Chamber of Commerce) has advised that 55% of bosses said the most positive outcome for their business would be to operate in a reformed EU and 63% of firms believe withdrawing from the EU would have a negative impact on their business. The Survey also found that businesses are most positive about remaining in the European Union, but with specific powers transferred from Brussels back to Westminster. 55% of firms view this scenario as positive, 17% no impact, 18% don't know and 10% negative. John Longworth, BCC Director General, commented: "UK bosses continue to tell us that the best scenario for their business would be for the UK to remain in the EU, but with a new relationship." To view the BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/bcc-businesses-want-to-be-in-the-eu,-but-a-reformed-eu.html.UK growth resilient, but manufacturers under pressure. The CBI's latest Growth Indicator shows growth in the three months to April held up at around the average pace since mid-2014 and that solid growth in the service sector compensated for a poorer performance in manufacturing. Firms again expect growth to pick up over the next three months, although optimism has continued to decline slightly since the turn of the year. Katja Hall, CBI Deputy Director-General, commented: "UK economic growth appears resilient. Our surveys and member feedback indicate prospects for 2015 as a whole remain bright, with lower oil prices and inflation boosting household spending power and helping businesses, aside from the hit taken by the North Sea oil industry." To view the CBI's news release go to http://news.cbi.org.uk/news/uk-growth-resilient-but-manufacturers-under-pressure-growth-indicator/.British exporters reap rewards. The BCC (British Chamber of Commerce) has published its latest International Trade Survey which shows that businesses who make the leap into international markets are reaping the rewards. The results show that the majority of current exporters (59%) recorded sales growth in 2014, despite stagnation in the Eurozone and the appreciation of sterling. Furthermore, a third of exporters (34%) had to expand their production capacity last year to cope with demand from international markets, compared to only 3% that reduced capacity. The Survey also found that despite the rewards on offer to all firms, it's the long-established international players that are getting most of the benefits. Of the exporters that responded to the survey, the majority (61%) have been trading internationally for more than 10 years, compared to only 6% who have been exporting for up to two years. To view the BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/british-exporters-reap-rewards-%E2%80%93-but-more-companies-must-make-the-leap.html.About this issue's sponsor: Tinubu Square.Tinubu Square, the leader in cloud-based risk management tools, is delighted to provide you with the first release of the Success Toolkit. The Tookit will provide you with topical and relevant content about the key issues in credit management today. This is the first in a series that we will send to you each month.Tinubu Square promotes credit managementFor 15 years, Tinubu Square has shared its expertise in credit management, providing customers with innovative software solutions to improve their risk management: The RMC (Risk Management Center), our unique cloud technology (SaaS platform) integrates a risk management module and a credit insurance module which optimizes risk management and decision making.Tinubu Square is a sponsor of professional associations specializing in credit management including the Chartered Institute of Credit Management (CICM) in United-Kingdom.The objective of the Success Toolkit is to deliver insight and enhance knowledge about the current credit management market by sharing relevant content.Success Toolkit assetsThe toolkit contains ideas, case studies, specialist testimonies and news. Our goal is to answer all your questions with a variety of thought provoking stories.The first edition deals with the essential role played by the Credit Manager in a company. How they are crucial in anticipating customer risk and what they see as the main issues affecting credit managers in 2015 are. This month's exclusive testimony comes from Peter Whitmore, a Senior Credit Manager and well-known figure in the UK credit management industry.Credit Insurance News Digests: SponsorshipSponsoring an issue of Credit Insurance News Digest is a great way to promote your company or brand to a committed audience of trade credit insurance professionals.If you are interested in sponsoring an issue in 2015 see our sponsorship page for further information. |
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