In the first quarter of 2012, 34% of employers brought in new sales candidates, up from 15% in the final three months of 2011. Encouragingly, almost two thirds (65%) of firms said this was to support business growth plans, which may be why 26% of business owners feel more confident about recruitment now than in Q4 2011.

The improved outlook mirrors the increase in hiring activity as the number of firms with a recruitment freeze fell for the first time in four quarters, down from 16% to 13%. This was supported by more business owners reporting that hiring activity is at similar level to before the financial crisis began in September 2007, up from 54% in Q4 2011 to 57% in Q1.

The report by Barclay Meade – part of the AIM-listed recruitment business Matchtech Group PLC – reveals more than three quarters (78%) of businesses have set out plans to bring in new staff in the second quarter of 2012.

Firms in the North West expect to be the most active, as just five per cent have ruled out bringing in new staff in the three months to June. While business services employers expect to be the busiest of all the sectors, with 87% hopeful of making new hires.

Barclay Meade’s ‘Tracking UK Recruitment’ 2012 Q1 report also revealed:

• Two thirds (66%) of businesses feel restricted by the Government’s employment legislation and would like to see changes made to help them fulfil labour solutions
• While experts continue to debate the future economic landscape, the general consensus among the UK business community is that the outlook is hopeful. Almost two thirds (65%) of firms are cautiously optimistic about trading conditions for the next six months
• The expense of hiring new staff is an increasing problem for employers, with 52% reporting as a barrier to recruitment in the first three months of 2012, up from 20% in Q4 2011

Nigel Lynn, managing director of Barclay Meade, says: “The services, manufacturing and construction sectors have made a strong start to the year and there is a sense that businesses are looking to increase their market share, by investing in talent which can improve the commercial value of their organisation.

“As Mervyn King pointed out in January, the recovery is likely to take a ‘zig-zag pattern of alternating positive and negative growth’ and this will obviously impact on the hiring activity of UK firms as they take confidence from the state of the economy.

“Despite many business owners calling on the Government to ease employment legislation, reform made by Vince Cable which doubles the time an employee has to work for a company before being able to make an unfair dismissal claim, will be contributing to the increased optimism shown among employers. Whether this can continue will depend on whether the Government can do enough to stimulate business growth long-term.”

In August 2011 we unveiled a new chat system embedded on to our website, so that prospective and current clients could speak with us online during office hours.  In November 2011 we announced that a new CRM instruction system had been developed to assist client’s instruct us easier than ever before.

Continuing our trend of constant development and improvment, we are now delighted to announce that by the end of June 2012, we will be officially launching an online payment system that will allow debtors to make payments on their accounts 24 hours a day, 7 days a week.

The online payment system has been in development for a number of months and will be thoroughly tested by our I.T support team before it is made available to the public.

We look forward to bringing you further updates on this system shortly.

UK firms paid their bills on average 24.67 days after agreed terms, compared to 25.33 days late in Q1 2011. It also represents an improvement of more than one full day compared to Q4 2011, when businesses paid their bills 25.97 days late on average.

The most noteworthy improvement came from firms with more than 501 employees. Payment performance amongst these larger businesses improved by over two days year-on-year, from 33.69 days beyond agreed terms in Q1 2011 to 31.54 days in Q1 2012. This is the fastest rate these businesses have paid their late bills since Q4 2007.

The second largest improvement came from firms with 101 to 500 employees. These businesses improved payment times by almost a day, from 24.62 days in Q1 2011 to 23.67 days in Q1 2012.

Max Firth, UK Managing Director for Experian’s Business Information Services division, said: “Across the UK we have now seen two quarters of improving payment performance, which suggests that an increasing number of firms are creating and enforcing more robust credit management and collection policies.

“The improvement seen by the UK’s largest businesses is supported by the feedback we have had from some of our larger clients. They are keen to better understand and address the impact of their payment behaviour on smaller suppliers, and are using payment performance data to find out where they are having the greatest impact and where things can be improved.”

Regional performance
Payment performance improved most for firms in the West Midlands – from 26.69 days in Q1 2011 to 23.92 days Q1 2012.

The North West region was the only one to see its average payment performance deteriorate – from 29.14 in Q1 2011 to 35.23 days Q1 2012. However, the short term view shows a small improvement – from 35.54 in Q4 2011 – suggesting that while the past year has been tough for firms in this region, short term cash flow did improve.

Industry trends
The latest index shows that 23 out of 34 sectors saw their payment performance improve during Q1 2012.

Of the UK’s five biggest sectors – business services, building/construction, property, IT and leisure/hotel – property sectors firms improved the most. During Q1 2012, property firms paid their overdue bills more than two days faster than in Q1 2011.

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.

In addition to our ISO accreditation, throughout the last 12 months we have continued to improve our quality standards by joining TATOC,  the largest consumer association for timeshare owners in Europe with 92 resort members throughout Europe representing 350,000 timeshare families & the Credit Services Association (CSA), the only National Association in the UK for companies active in relation to unpaid credit accounts, debt recovery agencies, tracing and allied professional services.

Our continuing endeavours demonstrate to our clients that our quality standards are immaculately and consistently well maintained.

If you would like to know how our services can assist your business in maximising their collections, please contact us by telephone on +44 (0) 151 515 3014 or email us.

The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.

A sharp fall in construction output was behind the surprise contraction, the Office for National Statistics said.

A recession is defined as two consecutive quarters of contraction. The economy shrank by 0.3% in the fourth quarter of 2011.

Wednesday’s figure is an early estimate and is subject to at least two further revisions in the coming months.

The ONS said output of the production industries decreased by 0.4%, construction decreased by 3%, and output of the service sector increased by 0.1%.

It added that a fall in public sector investment had contributed to the particularly large fall in the construction sector.

Some have questioned the validity of the ONS’s figures, particularly on the construction industry, which has been volatile in recent quarters.

But Joe Grice, chief economic adviser to the ONS, said the construction data was based on a survey of 8,000 companies and had been carefully checked and double checked.

The latest figures supported the view that the economy had been “flattish” in the past few quarters, he added.

Shortly after the data was released, the pound fell half a cent against the dollar to $1.6093, and half a cent against the euro to 1.2184 euros.

The UK economy was last in recession in 2009.

‘Missing link’

The BBC’s chief political correspondent, Norman Smith, said the Treasury was again blaming the difficulties facing the UK economy on the eurozone, with sources saying the eurozone is predicted to enter recession and therefore “it would be hard for the UK to avoid one”.

Some 40% of the UK’s exports go to the eurozone.

The Treasury also pointed to the fact that unemployment in the UK is now falling, our correspondent said.

But the Institute for Public Policy Research said the figures were “a further blow for the government’s reputation for economic competency”.

“It is clearly not good news, the missing link in the economy has been confidence,” said Graeme Leach, chief economist at the Institute of Directors.

“These are relatively small falls, so we shouldn’t be too alarmist.

“[But] regardless of the figures, it is the message that comes out to business – to be cautious – exactly when we want them to be a little more aggressive in terms of recruitment and investment.”

‘At odds’

However, some pointed to other recent business surveys, which painted a more positive picture of the economy.

“These figures are at odds with the experiences of many UK businesses, which continue to operate with guarded optimism,” said David Kern, chief economist at the British Chambers of Commerce.

He added that he expected the preliminary estimate to be revised upwards when more information became available.

The preliminary figure is based on only about 40% of the information that will be used to reach later figures.

The first estimate of GDP for the last three months of 2011 showed a contraction of 0.2%, which was later revised to a contraction of 0.3%.

Please note: Information in this blog post is content property of the BBC  and a full version of the article can be found by clicking here.

CBC International Director, Roy Caligari will address the Modint International Collections conference tomorrow to discuss a number of factors relating to Debt Collection and legal practices here in UK, in order to assist Dutch companies trading with organisations oversees.

The event itself has been arranged by Modint, a trade association for the fashion, interior design, carpets and textiles industries.

Roy will be joined in Holland by contemporaries from Germany, Belgium & Denmark who will be discussing hints & tips, offering advice and taking questions regarding each of their respective countries.

More information on this event can be found by clicking here.

As many of our regular followers will know, in December 2011 we launched Resort Recoveries, our Timeshare Debt Recovery brand which operates in conjunction with our affiliation with TATOC (‘The Association for Timeshare Owners Committees’).

Over the last few years CBC International has received instructions from numerous resorts within Europe & Asia.  Due to our successes within this industry we decided to develop Resort Recoveries as a standalone brand.

Resort Recoveries debuted at the TATOC annual conference in Warrington in March 2012 and received a number of positive comments from both resort operators and industry commentators.

In April 2012 our hard work was rewarded when we received our first set of instructions under this new banner. We have also had positive discussions with five other operators who look set to utilise our services over the next few months, so things do look extremely positive.

Throughout 2012 we hope to develop this brand further and we certainly would welcome the opportunity to demonstrate our abilities to prospective clients, as we have no doubt we would be able to provide outstanding customer service and quality results.

If you would like to discuss how we could assist you, please contact Client Services Manager Stephen Rose on +44 151 515 3014 or click here to send him an email.

And more businesses reported an increase in new customers and confidence, suggesting a more positive year ahead for small and medium-sized businesses.

The Business Factors Index from leading independent invoice finance provider Bibby Financial Services, has been charting the performance of its client base across key industry sectors including manufacturing, construction and business services, for the past five years from a base point of 100.

Traditionally seasonal factors mean the average performance for the first quarter of the year is low. But in 2012 it reached 100.3 which is the highest level for Q1 since 2008 when it was 90.4. This suggests there could be increased growth throughout the year if there is similar increased activity in the remaining quarters.

In addition the Index analysed the outlook among 500 SME business owners which also depicts a more positive Q1 as almost half of businesses saw a significant rise in the number of new and former customers returning.

The report found 45 per cent have seen former customers returning during Q1, compared to 33 per cent in the last quarter of 2011. And 41 per cent say they have been able to welcome new customers, up from 32 per cent in the previous quarter.

The encouraging activity during Q1 is coupled with a rise in the number of businesses applying for funding with almost one in five, (17 per cent) extending their external finance facilities.

Business funding in a range of forms has seen an increase in applications from traditional bank facilities to alternatives such as invoice finance and asset-based lending. The Breedon Report from the Department of Business Innovation and Skills (BIS) released in March, has placed a new emphasis on the importance of these funding options for businesses in need of financial support.

Edward Winterton, executive director for Bibby Financial Services, says: “We are encouraged by this strong start to the year among our own client base of 4,000 as we feel this could be indicative of an uplift in activity across the economy.

“In simple terms, if we see year-on-year improvements like this during the rest of 2012, it will be a welcome return to growth, although there is still a long way to go before we can talk about full recovery.

“There are concerns about the level of growth in the economy of course, but we have seen business funding rising during this quarter which we believe is a result of the extra business coming through the doors, and that will help SMEs plan for growth if the economy starts to improve as we hope.

“Applications for a range of funding options have increased from traditional bank loans and overdrafts to more flexible solutions such as invoice finance. This is an option that the Government has said it is keen to see more businesses take up following the publication of the BIS Taskforce report into non-bank lending earlier this year.

“As a leading invoice finance provider for almost 30 years, we understand how important it is to support businesses through difficult times and provide a funding solution that is not only flexible but grows with the needs of the business as they start to benefit from the good times.”

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.

BDO’s Output Index, which points to business conditions one quarter ahead, has risen above the crucial 95.0 mark that indicates growth for the first time since summer 2011, indicating positive economic growth for mid-2012. The increase from 93.5 in February to 95.7 in March puts the Output Index at its highest level for nine months, suggesting that short term economic prospects for the UK will continue to strengthen.

Yet looking further forward, business confidence for the second half of the year is more muted. BDO’s Optimism Index – which predicts business performance two quarters ahead – fell from 98.0 in February to 96.7 in March. It remains above the important 95 level, but lingers below the robust 100.0 mark that equates to average UK trend growth. This suggests the recovery is headed in the right direction, but moving there slowly.

Similarly, a knock to the Manufacturing Optimism Index indicates poorer prospects for the back end of 2012. Confidence has fallen below 95, from 96.9 in February to 94.6 in March, signifying that businesses are expecting manufacturing growth to slow later in the year. This can be attributed to stubbornly high crude oil prices, as well as sluggish growth in the eurozone area – a key export market for UK goods – heightened by fears regarding Spain’s ability to repay its increasing debts.

Peter Hemington, Partner, BDO LLP, commented: “It’s encouraging to see positive signs for UK growth in the short term, but it’s two steps forward followed by one step back at the moment, as the overall recovery is likely to be a slow one. Businesses face low demand from Europe and China and high commodity prices globally, meaning tough trading conditions for UK exporters.

“It’s vital that the Government takes steps to ensure the economic recovery is broad-based – long term economic success hinges on a stable and confident manufacturing sector. If British firms are to meet the Chancellor’s recent challenge to double exports to £1 trillion by 2020, then they’ll need a clearer and more explicit framework and strategy to relieve pressure on manufacturers and encourage investment in infrastructure and innovation.”

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 FSB’s ‘Voice of Small Business’ Index shows business confidence has bounced back from the record lows reported at the end of 2011. Overall the Index, which surveyed more than 3,000 FSB members, shows confidence rising for the first time in a year, with more than half of those surveyed aiming to grow in the 12 months ahead.

The survey shows considerable optimism about the scope for businesses expansion with a third of firms looking to increase capital investment plans.

However, the findings also show these plans to expand could be under threat from rising overheads, weak customer demand and concerns over the cost and availability of finance.

Demand factors and weak domestic conditions are the dominant concern cited in the survey. Two in three small businesses considered the domestic economy to be a major obstacle to achieving their aspirations. Fuel was identified by more than 60 per cent of firms as a major cost driver, with upward cost pressures being seen from rent and labour costs too.

More than one in five firms cites access to finance as a major barrier to growth, with 41 per cent of loan applicants being refused. The FSB has called for the Government to look at alternatives to bank finance, such as peer-to-peer lending and the role than community development finance institutions can play in boosting the amount of finance that is available to small firms.

The FSB is also pressing the Government to create a Small Business Administration which would champion the needs of small businesses at the highest level and provide a single focus on issues such as access to finance and procurement.

John Walker, National Chairman, Federation of Small Businesses, said:

“It is a testament to the hard work and determination of the UK’s small businesses that, in the face of rising costs and falling demand, they are still more confident about the year ahead and are looking to expand.

“The Government must bolster this confidence by doing everything in its power to remove the barriers to growth which our members have highlighted. That means taking action against rising energy and regulatory costs. It means looking at the proposals the FSB has put forward to give small businesses realistic alternatives to bank finance. And it means putting small business concerns at the heart of key government decisions through the creation of a US-style Small Business Administration.”

Key findings:

The Small Business Index made a strong recovery after a slump (-24.5) in the last quarter and now stands in mildly positive territory at 2.2

The deterioration of UK regional business prospects was reversed, re-establishing the gulf between the economically more successful southern and eastern regions and other parts

Small businesses consider credit to be both difficult to access and hard to afford

This is borne out by statistics showing high loan refusal rates (40.6%) and elevated interest rate demands for many firms

Nearly a quarter (22.9%) of small businesses are exporters, and those that sell abroad are largely optimistic about their foreign sales in the near-term

The balance of businesses reporting falling revenues rose to the highest level since the first half of 2010

All sectors reported better business prospects for the following three months, with business services again leading the field; however, those dependent on household spending still slumped

New evidence on small business profit expectations suggests that margins will fall in the coming three months regardless of a mild upturn in revenues

The three months preceding the survey saw the largest net balance of firms shedding staff in survey history, but the employment outlook has improved markedly

Fuel and utility costs still put pressure on small firms, with a majority reporting significant cost increases

The economic situation, weak consumer demand, utility costs and access to finance are cited as the most likely barriers to achieving the largely sanguine growth aspirations of small businesses

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.