Category Archive: News

  1. Can You Have Your Cake & Eat It?

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    Patisserie Valerie is another case of corporate insolvencies continuing at a pace but do we all really know what they mean to us and our businesses.


    When dealing with companies there are two main types of insolvency – Administration and Liquidation.



    The simplest way to explain the difference is that:

    • Liquidation is not good,
    • Administration is better but still not great.


    Lets look at an example

    Patisserie Valerie- They entered Administration.

    This means that a third party will take over the running of the company, usually an Insolvency Practitioner (IP) or an Accountant with a view to finding a buyer for the company as a whole, or continuing to run it as a going concern..


    Deals are often made with the creditors of the business. They’ll offer people who are owed money say 40p in every £ owed, to reduce the liabilities of the business and to make it a more attractive proposition to buyers.


    For the established high street names Administration is the preferred option, so that the company can continue to run. The brand name continues and there is a possibility that some, if not most of the staff can keep their jobs.


    Successful Administration

    One such example of a ‘successful’ administration is HMV.

    • This is a high street name needing support to find a buyer and retain goodwill rather than close.
    • Administration was the preferred option.
    • Thankfully a buyer was found for HMV and the majority of the stores will remain open, safeguarding several thousand jobs.


    What if there wasn’t a buyer?

    If a buyer could not be found, or the company is found not to be a viable option for continued trade, as in the case of Carillion, then the company may enter Liquidation.



    This is where a Liquidator or IP will affect a ‘fire sale’ of the company’s best assets such as:

    • stock,
    • order book,
    • machinery
    • plant

    Monies raised are to pay its creditors. However, because the company has closed and the brand no longer trades, there is no future revenue and the staff will unfortunately lose their jobs.


    In Summary

    Should you suffer the pain of having a company enter insolvency, then your best hope for a positive outcome is if it goes into administration. In which case you should always lodge your claim with the IP, as there is a chance that you could get paid a creditor’s dividend, or some pence in the pound against what you’re owed.


    If the outcome is liquidation, again lodge your claim with the IP but be aware that any dividend will only come about from the sale of assests and this is solely in the hands of the IP. So no guarantees, no timescales and less chance of a positive outcome.


    Remember,  there are ways and means of limiting your exposure to the risk and pain of bad debts and insolvencies. If you would like to discuss these options, please feel free to contact us as well as reading more of our blogs

  2. Budget 2018 – HMRC returned to preferential creditor in cases of insolvency

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    It’s been a year full of economic and political challenges for all businesses. Including several, high profile insolvencies. The effects of which have been felt far and wide across the small business community.


    Therefore, I’m sure we all had an eye on the budget last week! That said, I’m not sure we all felt too assured by Chancellor Philip Hammond’s statement that “The era of austerity is finally coming to an end”


    One of the changes that did catch my attention was the reversal of a 2002 change to the insolvency regime where HMRC was demoted from its position as preferential creditor. It was instead ranked alongside other unsecured creditors.


    Currently, several creditors other than HMRC have a higher priority claim on the assets of an insolvent company but from April 2020 however, HMRC will have greater priority to recover taxes paid by employees and customers. According to the government, this will ensure that an extra £185m in taxes already paid each year reaches the tax authority.


    However, there are valid concerns around this. Namely that the HMRC could choose to become more aggressive with enforcement, given their renewed status, which in turn would lead to an increase in company insolvencies.

    Given that we currently have an increasing trend in corporate insolvencies that saw a rise of 9% in Q3 compared to Q2 2018, and 19% compared to Q3 2017, this may add to the problem.

    Only time will tell.


    It does highlight once again the need for businesses, large and small to create robust financial administration systems.  A successful credit control process that limits your exposure to risk and keeps your all important cash flow healthy, can be the difference between growth and insolvency.


    If you would like to discuss your credit control process or have issues with late payments, we’d be happy to discuss your situation and guide you towards a solution.


  3. Dowsing the Flames of ‘Pheonixing’ – Insolvency Regulation Change

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    Regular readers to our newsletters, blogs and social media will know that we’re championing insolvency regulation and law changes.


    The goal is to prevent reckless company directors from evading all liabilities, with such ease when their companies enter insolvency.


    The process of closing a business and then ‘phoenixing’ a new company from the flames, free of debt needs to stop. It is the scourge of all small businesses.


    We’re campaigning with the Government’s Small Business Commissioner Paul Uppal for changes in both law and legislation.  Reckless directors must remain responsible and be held accountable for their actions.


    We reported last month discussions we’d had with the Commissioner’s office about what changes needed to be implemented. This directly led to meetings both with the business regulatory bodies i.e. Companies House and in the annals of power in Parliament.


    It seems no coincidence then, that the Government has just announced new measures. These measures are aimed directly at forcing reckless directors to become more accountable for their actions.


    Notably the Government said it wants to stop the practice known as ‘phoenixing’. Plus it stated that for the first time, directors dissolving companies to dodge debts will face misconduct investigations.


    Change is starting to be noticed. Indeed Stuart Firth, President of the Insolvency and Trade Body R3 stated…  “The Government’s announcement that it will look to disqualify directors of such companies, is an important part of ensuring that directors are less likely to walk away from their responsibilities”.


    Now we’re not stating that we’re directly responsible for these steps but we’ll happily take some credit where necessary.


    We’ll continue to converse with the Commissioner’s office and the next stop is conversations with The Insolvency Service, to discuss how we can put these plans and ideals into general practice.


    Watch this space….



  4. Can a Leopard really Change it’s Spots?

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    Large company failures…. They make the news on an almost weekly basis.


    Big high street brands such as Toys R Us and House of Fraser have suffered high profile insolvencies this year and others like Debenhams and Marks & Spencer have been forced into an aggressive program of store closures.


    In fact The Centre for Retail Research confirms that 41 high street names have entered insolvency so far in 2018… and it won’t end there.


    Now we realise that not everybody deals directly with these big high street brands but the likelihood is the chain of supply will work it’s way to your clients and suppliers in some way and will they be forced to pass on their pain to some degree ?


    The question is, what can you do to avoid being a victim in these trying times.


    The answer is simple, keep doing your diligence.


    Regular readers will know that we often speak about employing good checking processes and systems into your credit control procedures. In these trying times, let’s quickly revisit them.


    1. Conduct REGULAR credit checks on your client and suppliers.

    • Check for any adverse profit warnings, reduced credit scores and credit limits. All of these are indicators that the reference agencies and regulators are concerned.


    2. Reference Companies House and other business databases.

    • Check your existing and new information with the databases. Have new businesses been set up by the same directors ? Does this point to an imminent change in the business ?


    3. Do your diligence on the internet.

    • The internet is a great source of news and notices. If there are rumblings of troubles and insolvencies on the horizon, it’s better to be forewarned so you can act first, not last.


    Now we’re not saying that by you conducting the correct diligence, the rate of company insolvencies will fall, far from it.


    What we are saying is that in these days of companies closing, entering insolvency and then ‘pheonix-ing’ from the flames overnight into another business, you are better forewarned.


    For 2018 has definitely shown us that your leopard can indeed change it’s spots.


    If you would like to learn more about the diligence, credit control processes and methods to improve overall cash flow in your business check out our other News Blogs or attend our Seminar, that is taking place as part of Leeds Biz Week.

    Register to attend the Seminar  



  5. Keighley & Airedale Business Awards 2018……and the winner is???

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    Is 2018 our Award Winning Year?



    We decided that after 8 years of building the Corporate and Commercial business and a couple of decades of hard work, we’d ‘throw our hat into the ring’ for our local business awards, the Keighley & Airedale Business Awards.



    Turns out it was a bumper year for award entries and all of a high standard. So we are delighted to have been shortlisted in the Best Legal/Financial Business of the Year category. We are up against tough competition but remain positive.


    Below is our submission which we hope you will find interesting and perhaps useful if you are considering entering for your local business awards:


    KA&BA 2018 Entry

    Executive Summary


    Corporate and Commercial credit solutions limited, was incorporated in 2010, with the desire to help small business succeed in controlling their time and money.

    Our mission – Deliver effective, successful credit control services to business owners. Releasing valuable time, securing essential cash-flow and enabling profitable growth.

    Owner managed businesses are our target market because they have a need to save time, team and money. We help through:


    • Credit Control – We monitor client invoices and ensure they’re paid on time, in a professional manner. We remove the anxiety business owners face when chasing their customers for money.


    • Debt Recovery – We issue all appropriate demands, facilitate mediation and secure settlement of monies. This detachment to a third party allows the client to focus on other priorities.


    Founder and funster Rob Lewis has over 20 successful years’ ensuring his clients businesses survive and thrive. Solving client problems, providing opportunities and offering common sense advice to all, on the subjects of credit control, debt recovery and cash flow.


    Over the past 18 months we have moved into commercial accommodation. The team has grown from two to five. Turnover has increased and profit has doubled.


    The Story so far

    In 2016, driven by a desire to position ourselves as the trusted choice for local business, we revisited our company strategy.


    Finding time to analyse the business was difficult but very productive as it ensured we:

    • Refined our service offering ensuring it remained relevant.
    • Improved service delivery, using technology and training.
    • Re-priced services to ensuring both value for money and profitability.
    • Formalised the scheduled and measured marketing plan by :
      • Identifying new markets
      • Created a segmentation model
      • Built a new website
      • Developed an integrated communication plan (Web, Email, Social Media, Networking, Print…)
    • Set up our people plan and redefined the recruitment process.
    • Established training needs and developed a reward and recognition structure.
    • Began commitment to charitable causes.


    In the past year we are proud that Corporate and Commercial have :

    • Experienced planned growth.
    • Moved from garden office to double the size commercial accommodation.
    • Increased our team from two to five, providing local employment.
    • Grown the credit control client base by 100%.
    • Increased turnover by almost 20%.
    • Profits have doubled.


    The Team

    We purposely have a diversity of experience and skillsets within the Corp and Comm team. They are the driving force behind our continued success.


    Our team credentials :

    • Experience in both private and public sector.
    • Multi industry expertise.
    • Known history of managing 1000’s of people.
    • Worked nationally and internationally.
    • Fists full of highly regarded qualifications.


    The Award

    Over Corp and Comm’s 8 years we have successfully grown our business. This is a great achievement considering the economic, political and social challenges during that period.


    We’re a Keighley ‘born and bred’ business, proud of our local reputation. We employ local people and support our community through business contribution, networking and charitable activity.


    Simply, we want to be a successful business contributing to a successful town.


    This award would represent independent acknowledgement that Corp and Comm have forged a successful business with a strong future and be recognition to our team for their hard work and commitment.


    To be recognised by the local business community would be a highlight in our journey so far.



  6. Uneasy Asking for Payment? – Here is our Advice, be P.E.R.F.E.C.T !

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    Many business owners delay prompt debt collection in the vague belief that either, the customer will eventually pay, they find the whole process of chasing debtors uncomfortable or they don’t want to alienate valued customers. Worse still, some business owners fear bringing in an outside agency in the misguided belief that the process will be intrusive and detrimental to the client relationship.


    The most important piece of advice that we give to any client when it comes to Money is…It’s your money, don’t be scared to ask for payment!


    Here are our suggestions for being P.E.R.F.E.C.T when asking for what you are owed:


      • Have your call script to hand so to be both concise and professional.
      • Be bright and alert. Nobody wants to talk to a grump.
      • Ask yourself if the debtor can meet your request or will you need to negotiate.
    • FOCUS
      • Don’t go off track. You’ve called to ask for your money so ASK FOR IT !.
      • Although you need to be firm, you must also understand the debtor’s position.
      • Try to form a bond with the customer, they’ll be more likely to resolve your claim.
      • Always remember why you’ve rung, you need your money so make this your goal.


    Action is the key, as our clients testify :

    When Rob first mentioned his Credit Control service…it sounded too good to be true.
    I had a list of customers who needed constant prompting to pay their invoices, but I didn’t have enough time to contact them all and still get on with my main workload.
    Rob and his team now carefully and expertly look after my customers and encourage prompt payment of their invoices. Having them look after my business income, means I’m free to focus on the part of the business I really enjoy. Almost immediately, the turn-around in my finances helped rescue my cash flow and keep both the bank manager and my wife happy.”

    Neil, Thornton Directory.


    Of course if you would rather outsource your Credit Control or Debt Recovery, check out the rest of our website  Click Here>

    Alternatively call us on: 01535 654 594

  7. We’ve recently appeared in Manchester Business Post….Take a look

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    Here is the 2nd article in a series of three that we have written for the Manchester Business Post.  The series  aims to provide guidance, hints and tips to aid credit control and also considers key drivers for business owners to outsource their credit control and debt recovery.

    I hope that this is useful information and if you would like to find out more or discuss if outsourcing is something that would benefit your business, please get in touch.

    Click Here to go the magazine -find us on page 7 or see below:




  8. If you don’t ask, you don’t get !…

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    Following the recent changes in Pre Action Protocol rules, we recommend you set up any letter of claim as such.


    (The legal bit…) However please note that a good Letter of Claim may not guarantee a payment and there are no guarantees that any Court Registrar would deem any correspondence enough but at least you’ve tried to adhere to the legislation forced upon you.


    Example Letter of Claim


    F.A.O. Whom it may concern Your ref :

    Any Company

    Any Street

    Any Town

    Any Postcode (Date)






    Further to our previous correspondence, we (Client name) write in fulfilment of the necessary Pre-Action Protocol as per standard Civil Procedure Rules.


    We confirm that the above outstanding balance arises from the failure of the client, (Debtor’s name) to comply / adhere to the terms of payment on a simply supply contract, of which (Client name) reserve the right to pursue said client for the none payment of any unpaid invoice/s.


    The contractual agreement is a simple contract for (goods supplied for purchase / goods supplied for hire / service or maintenance of equipment).


    Our claim for unpaid invoices is listed as below. (or attached to this correspondence as a statement).


    Payment of the outstanding account totalling £……………. must be received directly into our nominated bank account (in the form of a cleared fund transfer payment only) no later than ……. (five days from the date of the letter)……… as a final means to amicable settlement.


    Given the breach of contract through none payment of an account, we reserve the right to suspend all further dealings with your company until the matter of the outstanding balance is resolved.


    As per Civil Procedure Rules, we advise that should the matter remain unresolved, we reserve the right to instruct the appropriate third party to enter into Alternative Dispute Resolution without any further reference to yourselves.


    Yours sincerely

  9. Who says size doesn’t matter….

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    Our purpose is to help people… admittedly it sounds like a cliché but it’s the pure and simple truth. If we can help you then we’ll try. We love it when it all works well and when a client feels compelled to say thanks for doing what we do, well that just makes it even better….

    ‘Another great result thanks Rob & team. Only quite a small debt but on principle I asked Rob to chase it for me Kept me in touch at all stages informing me of any costs as we took the debtor further and further to court and won. Unfortunately not the end of the story as the debtor still gave us the run about so Rob organised the enforcement officers to do some visits and we have now recovered the debt and all our costs for court etc. Thanks again’

    Richard MD – Print company, Bradford.