James Price's Blog : October 2009

News Round Up

Monday, October 19 2009

Wavering Support?

There are one or two signs of a hardening in HMRC's stance on making time to pay arrangements through the Business Payment Support Service.

Back of an envelope cash flow forecasts no longer seem to be cutting the mustard, and the Treasury will be concerned that they will have advanced credit to some unviable businesses that may not be able to afford to make the repayments. Doesn't this sounds kinda familiar!

Insolvency Practitioners that I talk to are very much of the opinion that there will be a spike in the level of liqudiations as and when HMRC revert to their traditional approach to debt collection. If, as a business, you feel that you may struggle to keep up repayments under an existing arrangement with HMRC it is time to consider a contingency plan. That plan will involve turning to other areas of working capital management; lean inventory, credit control; working with your suppliers and, dare I say it, your bank.

Credit Insurance

The main players in the trade credit insurance market, Euler Herms and Coface for instance, remain unwilling or unable to underwrite pre crunch levels of business. It was welcome news then, that the Lloyds Banking Group have announced a trade credit insurance product for its customers. As always, there will be much to think about in deciding if that offering gives value for money, but it is, at least, an option. If this is of interest to you, please do get in contact at jprice@wkhca.co.uk

News Round Up

Wednesday, October 7 2009

East of England Development Agency

Regional Development Agencies are something of a hot political topic at the moment with the Tories apparently prepared to disband them once elected. Quite apart from feeling sympathy for those individuals whose own career prospects are being discussed very publicly, I do worry that what is suggested by way of a replacement (devolving support for businesses to local authorities) will be very much less effective. Town Halls and County Halls are not renowned for speedy and efficient decision making, and there is a tendency for the bigger picture to be lost in a fog of lobbyists and self interest. You can read more on this story here.

I am pleased to report an example of "real help for businesses" actually happening - a Luton based company secured a six figure sum in grant funding to acquire machinery that will both preserve jobs and enable growth. If you've got a strong business case and your bank is giving you the cold shoulder, it is at least worth speaking to EEDA to see what they might be able to offer.

Fans of the BBC's The Apprentice show may be excited to learn that Alan Sugar will be a guest of EEDA at their Destination Growth show at the Duxford War Museum on 3 November. Regsitration for the event closes on Friday 16 October.