National charity Citizens Advice has produced top tips for homeowners struggling to keep up mortgage payments ahead of tomorrow’s repossession figures. This advice is based on its experience helping people deal with more than 100,000 mortgage and secured loan arrears, and stopping 5,000 people becoming homeless over the past 12 months.

Chief Executive, Gillian Guy said:

“With the cost of living going up daily and incomes lagging badly behind, mortgage lenders and the government must focus on helping people stay in their homes. Repossession is a terrifying prospect and should always be the last resort”

She reminded anyone struggling to meet their mortgage repayments that they can get free, independent advice from their local CAB.“You have a greater chance of staying in your home if you seek advice and take action as soon as you think you’re having problems,” she added.

Top tips if you start to fall behind on your mortgage:

• Make mortgage payments top priority – you could lose your home if you fall behind with payments.
• Let your mortgage lender know if you’re having problems – don’t just stop paying or miss payments. Your lender should treat you fairly and sympathetically and be willing to negotiate affordable repayment arrangements with you. If they know you are doing your best to stop the debt growing they are more likely to allow you more time to sort the problem out.
• Get free, independent advice as soon as you realise there’s a problem. Don’t wait until you’re threatened with court action by your lender. Contact your nearest Citizens Advice Bureau (for contact details, and for more detailed information about dealing with mortgage arrears, go to the CAB website www.adviceguide.org.uk; or try National Debtline (0808 808 4000 www.nationaldebtline.co.uk or Shelter (0808 800 4444 www.shelter.org.uk
• You may be able to cut down your monthly mortgage costs. For example, your lender may agree to reduce your monthly interest payments, increase the term of the mortgage to give you more time to pay, or allow you to make interest-only payments for a while.
• Check for any mortgage payment protection insurance you may have if you suddenly lose your job or are unable to work because of illness or injury.
• Get advice on benefits, tax credits and other help you may be entitled to if you are struggling. A CAB adviser can check if you are missing out on additional income and help you make a claim.
• Don’t ignore court papers and court hearings. If you are notified that your lender is seeking possession through the courts, it doesn’t mean you’ve already lost your home. Don’t be intimidated by your lender into believing there’s no point attending the court hearing. Do go to court, but get advice first if you can. Otherwise look out for an advice desk at the county court run by a free independent advice service such as the CAB or Shelter. Getting advice – even at this stage – will give you a much better chance of saving your home.
• Find out if you qualify for government help. If you are facing repossession, the government’s mortgage rescue scheme (MRS) may allow you to sell your house but continue to live in it and pay rent.. Ask your local council for details. I
• f you’ve lost your job and are claiming benefits, you may be able to get help towards paying your mortgage interest

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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.

“Set rules about granting credit that you (and your employees) always follow.  Don’t be tempted to break them, even if you’re put under pressure to supply.”

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 230,000 times.

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

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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 UK’s major banks look likely to meet their small business lending targets as agreed with the Government.

According to the British Bankers’ Association (BBA), the main five high street banks (Barclays, HSBC, Lloyds, RBS and Santander) loaned £37.4 billion to SMEs in the first six months of the year.

Under the terms of Project Merlin, to which the banks signed up as part of Government plans to boost the levels of credit and finance available to smaller firms, the target for the whole of 2011 is £76 billion.

A spokesperson for the Merlin banks said: “The first half year performance demonstrates the banks’ commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year.

“The banks’ efforts to encourage customers to come forward with borrowing proposals are set against the overall economic environment which remains challenging and business demand for credit which remains weak.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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.

A new survey of UK exporters has suggested that overseas trade remains reasonably robust.

The survey, by the British Chambers of Commerce (BCC), covered a thousand firms and indicated that the second quarter of 2011 saw a 3.6 per cent increase in export sales compared with the same quarter last year.

The balance of exporters that believed their turnover and profitability would improve over the next twelve months also improved in the second quarter of 2011. Firms’ confidence in increasing turnover rose from +41 per cent to +46 per cent, and their confidence in increasing profitability rose from +17 per cent to +28 per cent.

Yet uncertainty around the Eurozone debt crisis and the fragility of the UK’s economic recovery meant that British exporters are reticent to invest and take on more staff:

Exporters’ intentions to invest in plant and machinery have recovered slightly since the recession, but they still remain weak by long-term standards (+9 per cent). Similarly, exporting firms’ plans to take on more staff in the next quarter are relatively weak, In manufacturing the balance is +4 per cent and in services +13 per cent.

Commenting on the findings, David Frost, Director General of the British Chambers of Commerce, said: “There is a disconnect between the strong performance of exporting firms and their lack of confidence when it comes to investing and creating jobs.

“An uncertain economic outlook, with concerns surrounding Eurozone debt and a fragile UK recovery, means many businesses are holding back on investment decisions – despite seeing strong export sales and orders in recent months. Cashflow is still a real problem for exporters, particularly smaller firms, and the results show that there are regions of the UK that lag behind when it comes to exporting outside the EU.

“The UK’s economic recovery relies on exporting and investment. Government must help British business to have the confidence to export and invest – and ensure that support schemes designed to help new and growing exporters are easy to access and easy to understand.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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.

More than a quarter (27 per cent) of small and medium-sized businesses are ‘only just surviving’ or being forced to make cuts and rationalise perations according to the latest quarterly Bibby Financial Services Business Factors Index.

Furthermore, almost one in four (24 per cent) say trading conditions are worse than a year ago, while more than a third (35 per cent) do not expect the UK economy to recover for at least three years, painting a grim picture of business confidence.

The Index, which tracks the turnover levels among nearly 4,000 of Bibby Financial Services’ UK client-base alongside the outlook of 450 business owners across the UK, also found:

• Nearly two thirds (59 per cent) of companies are planning on cutting costs, while half intend to manage suppliers more carefully to prepare for further economic challenges
• Almost one in four (23 per cent) businesses have not seen any signs of recovery
• Nearly a quarter (24 per cent) of firms believe a loosening of lending criteria would most help to stimulate economic recovery
• More than three quarters (79 per cent) of businesses have not applied for any external funding in the past 12 months

Edward Rimmer, UK chief executive of Bibby Financial Services, comments: “With murmurs of an impending second ‘credit crunch’ rife, UK businesses are still in for a bumpy ride. The second quarterly Index shows businesses are a long way from recovery and, although turnover is stable, there is a danger of negative growth turning into a backwards slide towards recession.

“However despite the perceived ‘doom and gloom’ our Q2 research shows 39 per cent of businesses across the UK are hopeful for the future. Our regional breakdown shows levels of optimism rising as high as 70 per cent in East Anglia and around the 50 per cent point for many areas.”

The impact on business activity and confidence as a result of the euro-zone crisis in Q2 2011 has seen turnover levels remain stable, producing an Index reading of 96.7, fractionally below the first quarter (96.8). This suggests stagnation for the UK’s small and medium-sized businesses and reflects the latest GDP figures, which reveal the economy grew by just 0.2 per cent in the last quarter.

Edward Rimmer adds: “If we are to counteract the effects of economic uncertainty, it is imperative firms have access to the necessary funds to maintain a healthy cashflow and invest in growth, and it will be up to the finance industry to work with businesses through these challenging times.

“While the Government has pledged its support, through initiatives such as Project Merlin, which has – as reported this week – lent £37.4 billion against the annual target of £76 billion to small and medium-sized businesses, the fact that 80 per cent of businesses did not apply for external funding over the past 12 months is a worrying indictment of firms’ financial confidence and a problem that needs addressing if we are to achieve a full recovery.

“To help the country get back to pre-recession levels of business turnover and profitability, I would like to see more businesses investigating other funding options such as invoice finance, which releases cash against unpaid invoices, as a first choice solution.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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.

Experian, the global information services company, published its latest Business Insolvency Index today, revealing that the UK’s largest companies performed well in May 2011, experiencing the biggest fall in insolvencies compared to any other business size. Those employing over 501 employees saw a fall in insolvencies from 0.16 per cent in May last year to 0.10 per cent in May this year and those companies employing 101-500 employees saw the insolvency rate decrease from 0.14 per cent to 0.10 per cent year on year.

Overall, out of 1,674 UK companies, 0.09 per cent of the active business community became insolvent in May 2011, compared to 1,491 companies (0.08 per cent) in the same period in 2010.

Regional trends

The South West experienced a fall in business insolvencies with just 0.06 per cent of firms failing in May, compared to 0.07 per cent the year before.

In contrast, the eastern parts of the country witnessed a less positive picture against this time last year. The East Midlands had the biggest increase in failures, rising to 0.10 per cent in May from 0.07 per cent last year, while insolvencies also increased in the North East, Yorkshire, East Anglia and South East.
Yorkshire recorded the highest level of insolvencies, with 0.13 per cent of the business population failing, up from 0.11 per cent in May 2010.

Sectors

It was positive news for Insurance companies in May with the rate of insolvencies dropping from 0.12 per cent last year to 0.04 per cent this year. Food retailers continued to be the lowest performing industry in terms of financial strength, with the average score falling from 75.92 last May to 74.60 this year.

Max Firth, Managing Director of Business Information Services at Experian UK & Ireland, comments: “The increase in insolvencies was relatively small and at 0.09 per cent, the rate is actually an improvement on April 2011, which was at 0.10 per cent. However in all economic climates, we urge businesses to ensure they effectively manage risk around their portfolio. Tracking variations in insolvency rates and business strength across region, company size and sector, continues to be one of the ways we help businesses manage this.”

If you would like discuss how our Debt Collection service can assist your business, please visit the Debt Recovery Services section on our website,  contact us on +44 (0) 151 515 3014 or email us.

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.

CBC International

Money education charity Credit Action has released the July debt statistics, a monthly release which details the level of debt in the UK.

Key statistics from the release, which shows month-by-month trends, include:

• CAB deal with 9,072 new debt problems each working day
• 1,271 people are made redundant daily
• 829,000 people have been unemployed for more than 12 months
• £55,862 is the average household debt (including mortgages)
• £29, 839 is the average amount owed by every UK adult (including mortgages)
• £178m is the personal interest paid in UK daily
• £20.71m is the daily write-offs of loans by banks & building societies
• Every 14 minutes a property is repossessed
• £68.05 is the amount it costs to fill a car with a 50-litre tank with unleaded petrol
• £334,000,000 is the daily increase in Government national debt (PSDN)
• £1,156,000,000 is the total value of all purchases made using plastic cards today

Joanna Parsley, Associate Director at Credit Action says, “July’s debt statistics show a mixed picture- one piece of good news is the number of people out of work for more than 12 month has fallen by 29,000, certainly bringing relief to those people as they look to budget.

“Yet, both secured and unsecured lending have increased this month, lifting both the average amount owed by every UK adult to £29,839 and the average amount of debt per household to £55,862.

“It’s important that with outstanding debts, consumers are looking to clear balances as soon as possible, so they are not paying unnecessary interest to avoid seeing even less of their valuable incomes.”

The full debt statistics can be accessed from the Credit Action web site:
http://www.creditaction.org.uk/helpful-resources/debt-statistics.html

Credit Action is the national money education charity, established in 1990. It works nationally promoting better thinking about money with a particular emphasis on those vulnerable to financial difficulties.

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