Statistics for the first half of 2012 show that the total value of county court judgments (CCJs) against businesses was 5.4 percent or £15.8m lower than the total for the first half of last year. In 2012 businesses were ordered to repay debts worth £276.1m compared with £291.9m in the first half of the previous year.

In the first half of 2012 a total of 65,022 judgments were issued against businesses compared with 72,096 last year; businesses faced 7,074 or 9.8 percent fewer CCJs in the first half of this year.

The statistics for the first half of 2012 extend a longer-term trend according to which the number and value of judgments against businesses have been falling since 2009 when 116,633 CCJs worth £510.1m were recorded.

While judgments have been falling, the number of searches requested by the public through www.trustonline.org.uk to check the information held has markedly risen. The Trust more than halved the public cost of searches in September 2011 and this has accelerated the rise. In the first six months of 2012, a record 63,061 search requests were received – nearly two thirds up on last year.

Announcing the statistics, Registry Trust chairman, Malcolm Hurlston said:

“There are a number of explanations for falling judgment numbers. Over the last few years policy has been geared towards pre-court resolution, so fewer disputes reach the court stage. At the same time credit has been harder to come by, meaning fewer disputes over being unable to repay.

“The increased number of searches we receive through Trustonline proves that the information contained in these judgments is of growing public significance, in addition to their regular use by banks and other lenders.”

Registry Trust is the non-profit organisation which operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice in the public interest and pioneered the collection and use of judgment information throughout the British Isles and Ireland.

http://www.trustonline.org.uk/

Lee Manning, R3 President comments:

“Enabling the OFT to suspend a consumer credit licence with immediate effect – as opposed to being subject potentially to a two year appeal – is a significant step forward in consumer protection and is to be applauded. This will hit rogue companies who provide goods or services on credit, lend money, collect debts or help people with debts. This includes payday loan and debt management companies who break the rules – they have arrived in force on the internet and on our high streets, while regulation has been slow to keep up.

“Previously a rogue debt firm could appeal the OFT’s decision and continue trading during the appeal period – which could last up to two years. This was clearly not working in the customer’s favour. We would urge consumers, despite the pressures debt brings, to think carefully about who to approach for support in tackling debt problems and ensure the provider is professional and qualified, such as a licensed insolvency practitioner.”

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk) and the full original article can be found by clicking here.

The Institute of Credit Management (ICM) and the Minister of State for Business and Enterprise Mark Prisk have published their monthly ‘tip’ for small businesses to better manage their cashflow.

“If you have a query with a supplier’s invoice, raise it with them immediately. It will prevent you being labelled as a customer who wants to delay payment and ensure your trading relationship remains positive.”

The cashflow ‘tips’ are derived from the series of Managing Cashflow Guides published by the ICM for BIS that have to date been downloaded more than 330,000 times.

For further information, log on to http://www.creditmanagement.org.uk/bisguides.htm

Businesses who stick their heads in the sand by opting for credit cards and overdrafts report slower rates of turnover.

The latest biannual SME Trends Index research from Hilton-Baird Financial Solutions has found that businesses who access “quick-fix finance” are storing up problems for their future. Businesses who choose short-term solutions such as credit cards and loans often suffer with restricted business growth, sluggish productivity and a lower turnover.

The research, which questioned 454 business owners and finance directors in April 2012, highlighted the challenges businesses have faced in the last six months in finding suitable finance facilities to grow their businesses. This has been set against the backdrop of the first double-dip recession in the UK since the 1970s, along with the ongoing eurozone crisis.

Less than half stated that they had secured new funding facilities in the six months to April 2012 (42%), however, the various form of finance highlighted in the survey suggests that businesses are increasingly choosing to secure a “quick-fix”. The figures suggest that businesses are opting for the easy way out when it comes to facing up to their cash flow problems.

Additionally, the survey uncovered that over half the respondents rely on business credit cards (51%), with 47% using bank overdrafts to keep afloat. Conversely, only 18% are utilising bespoke financing options such as invoice finance, which effectively releases cash against a business’s sales ledger, despite being a proven and flexible option.

Evette Orams, Managing Director of Hilton-Baird Financial Services, commented: “The latest findings from our survey convey an alarming picture that businesses are increasingly taking a short-term view, often as this is considered to be the easy option, when it comes to financing their business. In our experience it is vital for businesses to explore all the available options, in order to find the right solution for their current needs, without compromising the longer term future of their business.
“There are many more funding options available for businesses than there may seem and there is often no need to turn to payday loans and credit cards. Invoice finance is an effective, proven and highly flexible option. By releasing cash against a company’s sales ledger, it bridges the gap between an invoice being raised on credit terms and the date the payment is received, which nowadays sadly is significantly beyond the actual terms of the credit, with late payments being a significant problem.”

Interestingly, those businesses that have done their research about the various forms of finance available experienced a growth in turnover. In particular, the proportion of invoice finance users reporting a rise in turnover during the six months to April 2012 was significantly higher, at 57%, than those who opted for overdraft facilities (36%) and personal credit cards (32%).

When questioned about their needs for additional funding, our respondents stated that cash flow management (16%) alongside an inability to access funding (7%) was their primary concerns over the next six months. Generating new business was also identified as a key concern for a third of businesses over the next six months.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk) and the full original article can be found by clicking here.

UK business confidence has reached its lowest point this year, indicating a bleak second half of 2012 for the UK economy, according to the latest Business Trends report by accountants and business advisers BDO LLP.

BDO’s Optimism Index – which predicts business performance two quarters ahead – has hit a six-month low, falling for the fourth consecutive month from 95.5 in May to 93.5 in June. This is the lowest reading since December 2011, and for the first time since January takes the Index below the crucial 95.0 mark that indicates growth.

In addition, the short-term UK economic outlook took a knock in June, as the BDO Output Index – which forecasts business conditions in one quarter’s time – fell from 96.7 to 94.8. This is the single biggest monthly fall in the index since June 2011, reflecting the rapidly weakening short term economic outlook and comes shortly after lower than expected GDP figures for Q4 2011 and Q1 2012 were unveiled. The BDO Output Index highlights the ongoing threat to growth that the UK faces for the back end of the year.

Confidence dropped particularly sharply in the manufacturing sector, as the Manufacturing Optimism Index plunged from 96.5 in May to 83.8, the lowest reading since March 2009. With around half of manufactured exports being purchased by the eurozone, ongoing concerns about growth prospects in the bloc are clearly mirrored by the Business Trends data.

Peter Hemington, Partner, BDO LLP, commented: “The figures point to a tough economic climate for the remainder of the year, possibly beyond. As the eurozone continues to be blighted by instability, the UK government must take steps to ensure the UK economy is not at the mercy of the single market. Since half our export goods go to the eurozone, it’s not surprising that turbulence there is denting longer-term growth prospects here.

“A cohesive and outward-looking approach is needed to ensure we exploit all potential avenues for growth – we would urge the Government to collaborate and look for unexplored trade opportunities, not only within the G20, but also with the developing economies to achieve a coordinated and global response to ongoing economic volatility.”

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk) and the full original article can be found by clicking here.

With the release of its July Debt Statistics today, Credit Action reveals how average household debt levels have changed over the course of the past year. This shows that since the start of 2012, a previously steady downward trend in average household debt (excluding mortgages) has been interrupted, while a more aggressive upward trend for average household debt (including mortgages) has established itself.

Until the turn of the year, average household debt (excluding mortgages) had been on a consistent downward trend, stretching all the way back to February 2010. However, in January 2012 this rose for the first time in nearly two years, and since then has followed a fluctuating (but largely upward) trend.

Meanwhile, average household debt (including mortgages) remained reasonably steady between May 2011 and December 2011. However, it increased dramatically in January, and has continued to grow significantly throughout the opening months of 2012.

Michelle Highman, CEO of Credit Action Says:” The trends highlighted by Credit Action’s Debt Statistics reflect the fact that households are having a pretty tough time of it at the moment. In particular, the periodic increases in average household debt suggest that people are under pressure and are having to fall back on credit in order to get through the month; clearly a source of concern. If you need to take on extra credit, make sure you shop around and find the best deal you can. And ensure you know and understand the terms and conditions involved. How much interest will you pay? What happens if you can’t pay back on time? Sometimes credit is essential, but make sure you fully understand your options, to make it work best for you and your family.”

Credit Action provides free information and resources for money management which are available online and in print. See www.creditaction.org.uk

Credit Action is the national money education charity, established in 1994. It works nationally promoting better thinking about money with a particular emphasis on those vulnerable to financial difficulties. Credit Action’s Debt Statistics are published monthly at www.creditaction.org.uk/helpful-resources/debt-statistics.html

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk) and the full original article can be found by clicking here.

Fears over the uncertainty and instability in the eurozone are preventing small and medium sized businesses in the UK from exploring the potential of trading internationally, says the UK’s leading independent invoice finance specialist Bibby Financial Services (BFS).

A study of 1,000 UK small and medium-sized businesses commissioned by BFS reveals almost one in five (17 per cent) firms said they were too concerned about the instability of European markets to even think about doing business internationally. It is this negative outlook that is stopping them widening their horizons and targeting new business opportunities around the globe.

And worryingly, a third (29%) of firms cited the eurozone crisis, with the resulting market instability and impact on exports, as having the biggest negative impact on the day-to-day performance of their business.

While 38 per cent said that it was financial and cultural barriers as well as costs and export regulations which were preventing them from trading in foreign markets, 18 per cent of respondents said they had never considered exporting at all.

UK trade figures show that there is still a net import from Europe, with the gap between imports and exports growing 86 per cent in the past year. The UK’s EU exports decreased to £11.4 billion in April, a drop of over 20 per cent from March – unusually high for the seasonal export dip between March and April.

David Postings, UK chief executive of Bibby Financial Services, says: “Trade to EU member states is clearly being affected by the European debt crisis, but to find that this issue is preventing businesses from any involvement in overseas trade is a huge concern.

“Identifying opportunities for growth in new markets is vital to the longevity of any business and it is important that the effect of current turmoil in Europe on the day-to-day performance of UK firms is kept to a minimum.

“Equally, business owners and managers shouldn’t overlook a pool of potential international customers because of fears associated with the financial, cultural or legal implications, as there is help and support available to overcome such barriers. Independent specialist finance providers, such as Bibby Financial Services, support SMEs involved in international trade by providing tailored funding facilities and support that best matches the specific needs of the business.

David adds: “We know from our existing client base of 4,000 UK businesses, that with the appropriate funding support in place and access to experts for advice and guidance, firms can reap the rewards that entering new markets present to increase their order books and enjoy greater opportunity for business growth.

“Businesses need to be aware that there is help out there to overcome the challenges associated with trading internationally and that despite economic stagnation in the EU, there is still a strong demand for quality products from all over the globe.”

The survey for Bibby Financial Services reveals that it is London-based businesses that are feeling most pressured by the problems in Europe, with 38 per cent of companies in the capital struggling as a result.

In Scotland, by contrast, the situation in Europe seems to be having less of an impact. Only 17 per cent of Scottish firms cited the eurozone crisis as a major challenge to their current stability.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk) and the full original article can be found by clicking here.

Financial freedom can be a double-edged sword, particularly for young people. Just because you’re earning your own money does not mean you won’t still find yourself living from pay check to paycheck. Here are some things to keep in mind to make sure you won’t have to declare bankruptcy in the near future.

Self-control

You’ve worked hard all week at your 9-5 job, so surely you’re justified in splurging a little (or a lot) with your weekly paycheck. But it would do you a whole lot of good to practice some self-control over your money. Hopefully your parents have instilled in you good practices when it comes to financial issues, but if not, it’s never too late to start. Setting a budget (and sticking to it!) is the first step to being financially responsible. Calculate how much money you need to spend on rent/bills, food, transport and other important expenses, and put the rest into a savings account.

Getting a credit card is not advisable, no matter how stable your income is. Credit cards make it extremely tempting to spend money that you don’t actually have, paving the way for potential debt and spending the rest of your life as a slave to credit companies. If you must get a credit card, go for the low- or no-interest cards and pay off your bills on time to avoid having to pay extra fees. The best way to think about it is to use your credit card as if you are using a bankcard and only use the money you already have.

Emergency Fund

Everyone should have an emergency fund, and it’s always best to start building one up from as early as possible. If you’re sticking to a budget and already putting part of your earnings into a savings account, you’re already on your way to a decent-sized emergency fund. Financial advisors suggest putting your emergency fund in an easily-accessible account and having enough in there to cover living expenses for at least three to six months. This way, if you find yourself out of a job unexpectedly; which in this economy is not uncommon; you won’t be left in the lurch.

If you’re thinking of purchasing something larger, like saving up for a car or a house in the future, you should put the money aside in a dedicated, high-interest savings account. Make the account difficult to access from outside to avoid blowing it all on an impulse purchase. There are several banks that offer high-interest bank accounts that can only be accessed online, so you can’t just withdraw money from it on a whim.

Sara Madigan is a writer interested in all things finance; from reading about stock analysis to helping people with their personal finances.