Business Information: Latest Reports and Business ShortsGlobal trade growth will come close to its pre-crisis peak by the end of the decade. GTR has published an article, 'Advanced economies to spur trade revival', which reports that global trade growth will come close to its pre-crisis peak by the end of the decade, spurred on by recoveries in advanced economies. Between 2017 and 2020, Oxford Economics analysts expect trade to accelerate at up to 8% – well above the relatively anaemic 1.5% growth it has been enjoying in recent years – but slightly under the average 9% during the pre-crash halcyon days. A series of high-profile trade agreements are predicted to add hundreds of billions of dollars to trade volume over the next number of years. To read GTR's article go to http://www.gtreview.com/news/global/advanced-economies-to-spur-trade-revival/.US post-recession start-ups have decreased by 44.7%. Experian has announced that the number of US businesses started each year after the recession has decreased by nearly 45%. According to an Experian analysis on business start-ups, in 2010 29.1% of all small US businesses were newly formed, while in 2014 just 16.1% were start-ups. “During the height of the recession, there was an influx of businesses opening, presumably due to layoffs and skyrocketing unemployment,” said Peter Bolin, Experian’s director of consulting and analytics. “While many of these consumers-turned-entrepreneurs may have started their own venture out of necessity as a way to bring in income, as the economy has improved the rate of new business start-ups has returned to a more consistent pace.” To read Experian's news release go to https://www.experianplc.com/media/news/2015/small-business-startups/.Solid, steady and sustainable economic growth in the UK ahead. According to the CBI’s latest economic forecast, the British economy is on a firm footing, having grown faster than previously thought in 2014 and with solid, steady and sustainable growth predicted into 2016. The business group is forecasting 2.4% growth for 2015 and 2.5% in 2016, which is a slight downgrade compared with February’s forecast largely due to weaker than expected official GDP data for the first quarter of - which the CBI believes is a temporary blip. Following first quarter growth of 0.3%, the CBI predicts a strong rebound in the coming months with quarter-on-quarter growth of 0.8% in Q2, 0.7% in Q3 and 0.6% in Q4. This also follows the official upgrade of growth in 2014 as a whole to 2.8%, from 2.6%. To read the CBI's news release go to http://news.cbi.org.uk/news/cbi-sees-solid-steady-and-sustainable-economic-growth-ahead/.The changing role of the UK credit manager. The results from the latest Chartered Institute of Credit Management (CICM) Credit Managers’ Index (CMI) for Q1 2015 have highlighted the changing role of the credit manager, with 78% of respondents saying that their role and responsibilities have grown in recent years. Of these, 41% said they not only had additional responsibilities, but were increasingly being called upon to make strategically important decisions. However, the CMI also found that tasks such as managing credit across multiple countries are only being successfully automated by just over half (57%) of respondents, while 30% still perform cross-country credit management as a manual task. To view the CICM's news release go to http://www.cicm.com/record-high-cicm-uk-credit-managers-index/.UK late payment victims had almost one-in-six invoices paid late in the last six months. Latest research from R3 has found that UK business victims of late payment saw almost one-in-six (15%) of their invoices paid late in the last six months. This follows earlier research by R3 which found that late payment is a primary or major factor in one-in-five corporate insolvencies. John Allan, National Chairman of the Federation of Small Businesses (FSB), commented: “The weight of evidence showing the damage poor payment practices are having on the UK economy grows greater each day with the amount owed in late payments now at £41.5 billion. Once again we find it is sole traders and smaller firms which are facing the brunt of late payments, and this is putting viable businesses at risk of closure." To read R3's news release go to https://www.r3.org.uk/index.cfm?page=1114&element=21410&refpage=1008.UK businesses paid their overdue bills a day faster on average in the last tax year. According to data from Experian, the national average of days beyond terms (DBT) it took companies to settle invoices dropped by 0.99 days to 24.29 between April 2014 and March 2015. The UK’s smallest businesses were the quickest to tackle overdue invoices, as companies with one or two employees settled bills 20.58 DBT. Businesses with three to five employees showed the greatest improvement, paying bills 1.3 days faster at 21.34 DBT. Although the largest businesses, those with a workforce of 501 or more, took the longest to settle bills at 34.18 DBT in the last tax year, they improved payment performance in line with the national average at 0.99 days. To read Experian's news release go to https://www.experianplc.com/media/news/2015/faster-bill-payments-smooth-cash-flow-for-uk-businesses/.8 million companies in Europe would hire more employees if they got paid faster. According to Intrum Justitia's European Payment Report 2015 (based on questions about payment answered by 8979 companies in 29 countries), every third company in Europe would be able to hire more employees if they got paid faster. "There are 25 million companies in the countries included in our survey. If we relate this to the fact that there are 23 million people without a job in the EU, one can conclude that if every company employed one more the unemployment would be erased - a theoretical yet interesting assumption" commented Lars Wollung, CEO & President of Intrum Justitia. To read Intrum Justitia's news release go to http://news.cision.com/intrum-justitia-ab/r/8-million-companies-in-europe-would-hire-more-employees-if-they-got-paid-faster,c9778830.Manufacturing exporters buck the trend despite exchange rate challenges. A quarterly report release by the British Chambers of Commerce (BCC) and DHL Express shows that British manufacturing firms are rising to the global challenge, reporting increased export orders and sales in Q1 2015. The survey revealed that 46% of manufacturers reported increased export orders in Q1, compared to 36% in Q4 2014. Meanwhile, the proportion of service firms that recorded increased export sales remained steady at 33%. John Longworth, Director General of the BCC, commented: "Encouragingly, the increase in export sales and orders has come about in spite of the rise in the pound against the euro over recent months." To view BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/manufacturing-exporters-buck-the-trend-despite-exchange-rate-challenges,-says-bcc-and-dhl-quarterly-export-confidence-tracker.html. The full report is available from the BCC press office.Insolvency profession helps rescue 2-in-5 insolvent businesses. According to research by ComRes and R3, the UK’s insolvency profession helped rescue approximately two-in-five insolvent businesses in 2013-14. The research found that R3 members helped around 6,700 businesses (41% of formal insolvencies) continue trading in some way after entering insolvency and, in total, around 10,400 businesses continued operating after working with the insolvency profession - either benefiting from support in a formal insolvency or working with the profession to avoid insolvency. To read R3's news release go to https://www.r3.org.uk/index.cfm?page=1114&element=21487&refpage=1008.UK growth accelerates to 12-month high. The CBI’s latest Growth Indicator shows that growth quickened in all three main sectors. It was modest in the manufacturing sector, and strong in the retail sector, but business and professional services was the stand-out performer. It recorded its fastest growth in business volumes since early 2006, and was the main driver of the overall acceleration in growth. Rain Newton-Smith, CBI Director of Economics, said: “As we move through the second quarter, growth has cranked up several gears and businesses expect that faster pace to continue. This supports our belief that the weaker-than-expected GDP growth in the early months of 2015 will be short-lived." To read the CBI's news release go to http://news.cbi.org.uk/news/uk-growth-accelerates-to-12-month-high-growth-indicator/.About this issue's sponsor: A HOUSE OF SPECIALISMS: CREDENDO GROUP.Uncertainties can be transformed into opportunities through effective credit insurance. This common principle federates all business units in Credendo Group. Each has its specialist strengths, but all are committed to providing European exporters with the risk protection and service support they need to grow their trade activities around the world.
The parent company Delcredere | Ducroire was founded as a Belgian autonomous body in 1939, with roots back to 1921. But over the past decade Delcredere | Ducroire has developed into a group present in 14 European countries.
Medium- and long-term trade credit insurance cover is the metier of Delcredere | Ducroire, the official Belgian export credit agency. With its cover capacity of EUR 30 billion and its AA rating from Standard & Poor’s, it underwrites major projects worldwide and capital goods sales, to a wide range of markets, largely outside OECD.
Besides trade credit and foreign direct investment insurance, Delcredere | Ducroire also offers direct financing for limited amounts and financial guarantees.
Short-term trade credit insurance, underwritten on a commercial market basis, is provided by Credimundi, KUPEG and INGO-ONDD. Their on-the-spot presence in key exporting markets ensures that they are close to their clients and able to tailor solutions to their local needs.- Credimundi, headquartered in Brussels, has branches in the United Kingdom, Germany, France and Italy and underwrites trade activities worldwide. This business is noted for its expertise in emerging and developing market risk. Credimundi has a strong capacity for political as well as commercial exposures. It also issues surety contracts for bonds and guarantees.
- KUPEG is based in Prague, with a presence in Slovakia and Poland. Its expert focus is on the increasingly important Central and East European economies.
- INGO-ONDD, in Moscow, is the specialist underwriter in the Russian and CIS markets, a fast evolving region where credit insurance plays a growing role.
Bespoke single-risk cover is required for some individual transactions; the specialist underwriter Garant, located in Vienna and Geneva, structures insurance to meet the specific circumstances of an individual deal. Its experience in this specialist field is reflected in the independent A- ratings from Fitch and AM Best.
Certain exporters develop strong risk management structures of their own. However, they still require excess-of-loss insurance or top-up cover to ensure an adequately high level of protection against unexpected risks. This is provided by Trade Credit. Trade Credit has its head office in Brussels and subsidiaries in eight countries: France, Germany, Italy, Luxemburg, the Netherlands, Spain, Poland and the United Kingdom.
All businesses across Credendo Group are committed to customer focus and risk appetite. Credendo Group tailors solutions to the needs of each client and the challenges they face.
www.credendogroup.comCredit 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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