Around £12m people in the UK are required to file a Self Assessment with HMRC every year detailing their earnings.  The January 31^st deadline for Self Assessment returns is approaching fast and those who file late will face fines of at least £100.

The January 31^st deadline also applies to payments of tax for which late payers will be fined and charged interest.  The fine can be as much as 100% of the tax bill if HMRC feel that a tax payer has deliberately evaded payment.  HMRC collectors may personally visit those who default and, in the event of non payment, HMRC may start bankruptcy proceedings as a last resort if more than £5,000 is owed.

The Government’s Small Business Commissioner is advising sole traders and partnerships to chase any monies owed to them as a matter of urgency:

“You can’t pay your tax if your customers don’t pay you” says Liz Barclay, Small Business Commissioner.

Emma Reilly, MD of specialist construction collections agency Top Service Ltd says:

 “If you need to free up some cash it’s not too late to instruct us to recover your overdue accounts in time for the HMRC deadline.  Call us for a chat on 01527 51880 if you need any help”.

Anyone struggling to pay their Self Assessment tax bill on time can find help from HMRC here:

https://www.gov.uk/difficulties-paying-hmrc

National Insolvency figures published (14 December 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in November 2022 was 2,029:

• 21% higher than in the same month in the previous year (1,676 in November 2021), and
• 35% higher than the number registered three years previously (pre-pandemic; 1,505 in November 2019).

There were 290 compulsory liquidations in November 2022, more than 5 times as many as in November 2021 and 7% higher than in November 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. In October and November the numbers of compulsory liquidations were higher than the pre-pandemic comparison months, due to 95 petitions from a single bank.

In November 2022 there were 1,595 Creditors’ Voluntary Liquidations (CVLs), 5% higher than in November 2021 and 50% higher than November 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.

What makes Top Service Different?

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance: What has happened from the time the business filed its last set of accounts to the time the credit check is performed?

Top Service Insider Intelligence is construction-specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for trade credit. 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

What you need to know about Top Service:

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.

• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.

• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 

• We have more than 30 years of experience in collecting commercial and contract debts.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

The complex nature of construction contracts means it is all too easy for construction businesses to pay you later than is agreed or even pay less than you are entitled to.

The problem is exacerbated in times of economic unpredictability, when cash retention becomes a greater priority for many businesses.

It means recovering debt and monies owed is an expensive process for businesses within the construction sector. Generally there will be a cost involved in retrieving your debt, as well as your time taken.

Is there anything you can do to help recoup some of these costs?

The good news, is yes, you can.

You are entitled to claim statutory interest on late payments for goods and services.

If you currently have any debts owed to you, Top Service offers a debt recovery service, exclusively for businesses within the construction sector. We can help you claim statutory interest from late payers.

What does a late payment mean on commercial debts?

As a construction business who is overdue payment, to know if you are entitled to claim statutory interest, you need to fully understand what a late payment means on a commercial debt, and therefore at which point you can claim statutory interest.

If you have offered credit terms and agreed a payment date, a late payment is when you have not been paid within the period set out in the credit terms and therefore by the agreed date.

In cases where credit terms have not been established and agreed, there is a default period of 30 days from either completion of the work or the day the customer receives the invoice, whichever happens first.

If, however, a contract clearly states that there are no credit terms, payment is due as soon as the goods or services are delivered. For instalment payments, interest runs from the day after an instalment is due.

What is statutory interest?

Simply put, statutory interest is your legal right to charge interest on late payments.

How to claim interest on a debt?

Emma Reilly, Managing Director of Top Service, explains,

“If you want to claim interest on a debt, we advise to put your intentions forward in a written notice.

You should send a letter to your customer, or debtor, informing them of:

• The work you carried out or supplied
• The interest that is owed to date, and the ongoing daily rate

It is important to realise you have the right to claim interest under the Late Payment of Commercial Debts (Interest) Act 1998.

Your letter will clarify to the recipient how much their late payment is costing their own business.”

How much interest can I claim on my debt?

Currently, the statutory interest rate is set at 8% above base rate.

If an alternative interest rate has been specified in a contract, you cannot claim statutory interest. Instead, you must claim contractual interest at the agreed rate.

To help you calculate how much interest you should be charging, Top Service has created a handy interest calculator for both statutory interest and contractual interest.

What is the statutory interest rate?

The statutory interest rate was introduced in three stages through the Late Payment of Commercial Debts (Interest) Act of 1998 and the Late Payment of Commercial Debts Regulations 2002 and 2013.

The first stage of the Act allowed small businesses to claim interest from large businesses and public sector entities. A small business is classed as such when it has 50 or fewer employees.

In November 2000, this legislation was extended to also allow small businesses to claim statutory interest from other small businesses. By November 2022, interest could be charged by all businesses including public sector organisations.

Further amendments were introduced in 2013 regarding compensation payments, time to pay and fixed penalty charges.

How can Top Service help with your debt?

Top Service provides a comprehensive debt recovery service for construction companies. We use our construction and financial expertise, as well as experienced negotiation skills, to act on your behalf in recovering bad debt.

We provide the following services:

Chasing letters and emails

Debt recovery

Pre-litigation

Retention collection

Post insolvency debt collection

Collections consultation service

Our debt recovery service is a valuable solution across all scenarios, including if you’d prefer to continue trading with your debtor, you believe there might be a dispute or there has been very little third party collection activity to date.

Emma Reilly, Managing Director of Top Service, comments,

“Our team here is highly trained at recovering debts for our customers, and have great experience within the construction sector.

For us, part of the debt recovery process is educating our customers to improve their financial processes going forward, which is debt prevention.

Our Insider Intelligence membership is a great resource for debt prevention, which helps our 3000 plus Members with a competitive advantage within the construction sector. In particular, the trading experiences is what really sets us apart from other credit reference agencies.

Trading experiences are where members share their experiences within the community as to who are they working for, and whether they are being paid on time, late, or not at all.

The best part is, membership to our Insider Intelligence only costs £49 + VAT per month and there are no fixed contracts involved. And often, the statutory interest we help our customers to recover is more than the £49 membership, meaning they effectively pay their membership fee from the money we help them to recover. It’s a win win!”

Read a case study showing how our Trading Experiences saved Top Services’ Members hundreds of thousands of pounds in potentially bad debt.

If you’d like more information about the Top Service debt recovery service exclusively for the construction sector, please call 01527 518800 to speak to a member of our expert team.

National Insolvency figures published (14 October 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in October 2022 was 1,948:

• 38% higher than in the same month in the previous year (1,410 in October 2021), and
• 32% higher than the number registered three years previously (pre-pandemic; 1,477 in October 2019).

There were 242 compulsory liquidations in October 2022, more than 4 times as many as in October 2021 and 2% higher than in October 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. October 2022 was the first time that the number of compulsory liquidations was similar to the pre-pandemic comparison month. This was partly caused by a large number of petitions from a single bank, which accounted for 45 of the compulsory liquidations in this month.

In October 2022 there were 1,594 Creditors’ Voluntary Liquidations (CVLs), 28% higher than in October 2021 and 53% higher than October 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.

What makes Top Service Different?

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance: What has happened from the time the business filed its last set of accounts to the time the credit check is performed?

Top Service Insider Intelligence is construction-specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for trade credit. 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

What you need to know about Top Service:

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.

• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.

• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 

• We have more than 30 years of experience in collecting commercial and contract debts.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

At Top Service we promote the use of great customer relationships to support our members’ business growth and help to improve cash flow.

To improve cash collections it’s important to understand that this part of the business is as important as any other. Provide support or even extra training & credit management tools to the person or people responsible for chasing invoices.

For us, credit management starts right at the beginning of your customer relationship. There are few simple steps you can take that will make big improvements:

If Cash is King then Information is Queen

Use a credit application form. This will help you to deliver a great service to your customer and will also help you to collect information that will help you if you need to carry out due diligence checks prior to deciding whether to extend credit facilities or collect money from a customer. You can also help to prevent delays in payment by understanding what your customers need to be able to make payment.

Your credit application should support your relationship with your customer, it should include information to help you deliver a great service, support you with getting invoices paid on time and collate useful information for if you need the support of a 3rd party collections agency.

Reacting to information will be key. You should be monitoring your customers so you’re aware of any changes. If you’re notified of a new CCJ, check how much is outstanding from your customer and in cases where you perhaps aren’t due to chase an invoice until the end of the month, put a phone call in now or at least start chasing a little earlier than usual.

Start Your Collection Process Early – Before Invoices Are Due

Once you’ve provided your goods or service to a new customer and raised the invoice – check in on them. How did they find the service you provided? Did they receive the invoice OK? Do they need to place any further orders?

By carrying out these customer service checks you’re not only standing out from your competitor, you’re building great customer relationships, helping your business to grow and also going someway to get your invoice paid on time.

Checking there are no queries, that the invoice has been received and that your customer has everything they need to make payment can only have a positive impact on your payment terms.

Make Your Invoice Work For You

Your invoice is one of your best opportunities to be paid on time. Make your invoice as informative as possible, whilst keeping everything clear and easy to understand.

Give your customer all the details they need to make payment, include your bank details and any reference numbers they should include, if you accept and expect card payments give your customer the telephone number they should call to make the payment. Invoice promptly and accurately.

These seemingly simple steps can have a big impact. 

Evaluate & Act

Take time to evaluate the reasons invoices aren’t being paid. Are there a lot of queries on invoices? What are the queries –  is there a simple step or a change in procedure that could be taken prior to the invoice being raised that could reduce the queries?

Are your customers claiming invoices aren’t received?  Is there a quicker, more effective way you could be sending invoices? Are you sending invoices to the correct address? Or are going to a site address and then having to be forwarded to the head office address?

Spot Changes

Keep an eye on anomalies, if your customer is later than usual making payment. Find out why, it could be as simple as an invoice has been mislaid. Or it could be something more serious that you need to act upon.

Use a Supporting 3rd Party – That Understands Your Business & Your Needs

Consider using a third party to support your credit control. It’s likely that if you’re having to chase your customer for payment, then they are also being chased by other creditors. Using the right 3rd party at the right time can be of real benefit. It doesn’t need to be an aggressive process. Your chosen 3rd party should work with you and be able to provide a range of solutions that work for you and also for the relationship you have with your customer.

Our team can provide you with individual advice and support if you need it and we also have a credit control healthcheck available on our website that is free for members to use. We will review the check and provide bespoke advice to you and your business.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

Trading experiences, available exclusively through Top Service, are instrumental in protecting its membership of UK based construction companies from crippling bad debt.

In the following case study we will highlight a particular example where trading experiences saved one of our members hundreds of thousands of pounds. The submissions of information from members led to Top Service removing the credit limit for a contractor that was heading for liquidation, while standard credit reports from other credit reference agencies continued to suggest a safe credit limit of £10,000.

Firstly, we will summarise the trading experiences service.

What is Top Service’s trading experiences service?

Top Service is the only credit reference agency in the UK exclusively for the construction sector. The trading experiences scheme from Top Service has over 3000 construction industry members.

The members share their trading experiences through the community, telling us who they’re working with and whether they are being paid on time, late or not at all. By having access to these trading experiences, our members are able to make better and more informed decisions about extending credit facilities to a new customer. Our trading experiences allow members to have a better idea of what to expect; are they likely to be paid on time, late or have to look at third party action for collection?

Case study – Global Site Services

Global Site Services was a skip hire company that became insolvent in July 2022. Their most recent accounts were filed on 30^th September 2020, leaving a period of 22 months without updated credit information. On the surface, the company appeared creditworthy; there were no warning signs in a standard credit report.

The information submitted by Top Service trading experiences members told a very different story. The volume and severity of the trading experiences, and proactive investigations by our debt recovery team, resulted in us removing the suggested credit limit in 2020, over two years prior to the liquidation of the company.

We sent early warning notifications to our members to deal with this company with extreme caution while other credit reference agencies were still recommending £10,000 + credit, even in the days before liquidation. We know that trading experiences saved our members hundreds of thousands of pounds.

Client testimonial from Brianplant (Humberside) Ltd, illustrating how trading experiences helped them to avoid bad debt in their dealings with Global Site Services

Global Site Services approached Brianplant Ltd for tens of thousands of pounds over several years, and each time they were rejected due to Top Service trading experiences. Jane Kyme, Office Manager, said, “If it wasn’t for the trading experiences, based on a standard credit report we may well have opened the account and lost a serious amount of money”.

Jane explained that just looking at standard credit information and using trade references supplied by the applicant, simply isn’t enough. An applicant is always going to provide trade references for businesses they pay on time, probably purely for the reason of using them for that purpose. Jane said that almost all of their credit decisions are made using our trading experiences, because they are the truth, the real way that an applicant trades with other people.

Of Global Site Services, Emma Reilly, Managing Director of Top Service, said, “We had numerous requests to review our credit limit in light of the large credit limits that other agencies were suggesting, however, through our trading experiences we were aware of information that wasn’t available to the other agencies so we maintained our position. This position saved our members thousands of pounds, as shortly after the company went into liquidation.”

Contact Top Service for more information about being part of the trading experiences community.

National Insolvency figures published (14 October 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in September 2022 was 1,679:

• 16% higher than in the same month in the previous year (1,453 in September 2021), and
• 11% higher than the number registered three years previously (pre-pandemic; 1,508 in September 2019).

In September 2022 there were 1,379 Creditors’ Voluntary Liquidations (CVLs), 4% higher than in September 2021 and 25% higher than September 2019.

Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the coronavirus (COVID-19) pandemic, although there were over 6 times as many compulsory liquidations in September 2022 compared to September 2021.

What makes Top Service Different?

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance: What has happened from the time the business filed its last set of accounts to the time the credit check is performed?

Top Service Insider Intelligence is construction-specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for trade credit. 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

What you need to know about Top Service:

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.

• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.

• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 

• We have more than 30 years of experience in collecting commercial and contract debts.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

Written by Zahida Shah, Trainee Solicitor at Silverback Law

Following our previous article on the Small Claims Track, this month we will be talking about matters that are allocated to the Fast Track, and what this means.

What is Fast Track?

When a claim is brought at court, and a Defence is received, the court will allocate it to one of three ‘tracks’ which will determine how that case will be handled:

• Small Claims Track
• Fast Track
• Multi Track

In most instances, matters are allocated to the Fast Track if they are straightforward and of a value between £10,000 – £25,000.

What is the Procedure?

Fast Track Claims can take around 12 months from issue to get to a trial at Court.

It is worth noting that a Claim could settle, or the action be discontinued before it ever gets to trial. As with all Defended Litigation, parties are encouraged to liaise with each other, with a view to settle the matters at any time during proceedings.

Proceedings would generally involve a series of steps (all of which would be led and managed by your appointed legal representative):

1. Pre-Action

1. The Claimant is obligated to follow any relevant Pre-Action Protocols before issuing a Claim. This is also a very useful opportunity to learn of the Opposition’s disputes and to narrow down the issues so that the Claimant can assess the strength of their own Claim, even at this early stage.

• Statement of Case

• Issue Claim – The Claimant will need to issue a concise statement of the nature of the claim and specify the remedies which it seeks. It is often useful to also provide separate, detailed Particulars of Claim.

• Response to Claim Received – If the Defendant is unable to file a Defence within 14 days after the service of the Claim, they will need to send an Acknowledgement of Service. They will then have a further 14 days to file their Defence.

• Notice of Defence Received – the Court will send the Claimant the Notice of Defence which also provides a deadline by which the Claimant should confirm if they wish to continue with proceedings. This is known as a Notice of Intention to Proceed (NIP). This is another opportunity to re-evaluate and consider the risks and costs implications of continuing to trial.

NOTE: If the Claimant does not provide a NIP, the Court would actually Stay the Claim (pause indefinitely). The Claimant would then need to make an Application to lift the Stay, incurring a Court Fee and the legal costs of preparing such an Application.

• Assess for Strike Out of Defence – If there is no evidence of reasonable grounds for a Defence, the matter may be suitable for Strike Out.

To avoid all parties incurring unnecessary costs, the Claimant should make such an Application as early as possible.

• Directions

• Complete Directions Questionnaire -The Court will ask for the return of a Directions Questionnaire to establish information such as:
  • whether you have requested a Stay to try and settle the matter
  • if you intend to instruct an expert
  • who your witnesses are
  • what are their dates of unavailability (as any witness providing a statement will most likely need to attend the trial in person)

This will help the Court determine whether the provisional allocation to the Fast Track is correct.

• Complete Draft Order for Directions – The Claimant will also be asked to complete a Draft Order to try and establish the following:
  • how long a trial should be listed for
    • how long you think you will need to prepare your case for trial including collating Witness Statements
    • if you will need expert evidence and the type of expert

The Court will ultimately issue directions/deadlines based on the needs of the case, and these must be adhered to.

NOTE: It is essential to complete the Directions Questionnaire, or you risk having the case struck out by the Court.

• Allocation

• Notice of Allocation to the Fast Track Received – The Court will usually provide further directions within the Notice of Allocation, setting down deadlines for disclosure of documents to the other party and exchange of Witness Statements.

• Payment of Trial Fee – The Court will also provide a deadline to pay the non-refundable Trial Fee, which is currently set at £545.00 for Fast Track trials.

• Disclosure

5.1 Disclosure of all documents that have a bearing on the case – You must actively search for, and disclose, all relevant documents that you now have, have had, or have access to if held by someone else.

This includes anything relevant, even if they are harmful to your own case as much as those that are helpful.

Documents can take many forms including images, emails and mobile phone texts.

• Exchange of Witness Statements

•  A Witness Statement is a formal document that contains a Witness’s account of the facts relating to a particular dispute.

The purpose of a Witness Statement is to provide written evidence to support a particular party’s case. Should the matter go to trial, a Witness Statement is the evidence in chief for that individual and you may be cross examined on the content of it. 

• Trial Preparation

• Prepare a Brief to Counsel – In addition to the witnesses, it is likely you will appoint Counsel to appear at trial on your behalf. They will serve a summary of the case which will also include all the documents and information required to put forward.

•  Prepare the Trial Bundle – You usually prepare one Trial Bundle which includes notices and orders the court has sent out, the parties’ statement of cases, witness statements and any other relevant correspondence and documents. Parties need to try and agree the content in advance.

•  Send a Costs Summary – Parties will need to prepare their own Costs Summary, so the Court has a clear breakdown of your costs in litigation, including any disbursements. This will be a considered document when awarding costs.

• The Trial

A Fast Track Trial is likely to last a day and is usually conducted in person.

Please refer to our previous article ‘The Small Claims Track’ which provides further information in respect of what to expect at trial.

You may be surprised to know that many Claims settle with trials looming round the corner and Settlement Orders being put before Judges at the trial hearing!

Should you consider a Settlement?

Unlike in the Small Claims Track, should a Claimant discontinue on a Fast Track case, they run the risk of the Defendant seeking the costs incurred defending the matter.

As such, the safest option is to agree with the Defendant to what is known as a Drop-Hands Settlement Offer. This is an offer whereby parties mutually agree to withdraw their claim with each party bearing its own costs. Such an Offer needs to be carefully drafted, particularly if it is being put forward by the Claimant.

Can you recover your Costs?

At trial, the general costs rule is that the winning party will usually be awarded its legal costs. However, in reality, recovery tends to be in the region of 60-70%.

As with any matter, the cost of bringing a Fast Track Claim all the way to trial could exceed the sums being sought for damages, negating your overall recovery. Your lawyer ought to provide the best information possible in respect of anticipated costs, how they will be calculated and your likelihood of being successful.

Costs of litigation can vary depending on many factors including how reasonable the opposition is and how many steps the parties go through before the matter is resolved. It is sensible to talk about a budget with your solicitor, who can then keep this under review at the various stages of the proceedings and warn you when costs are exceeding expectations.

Your lawyer should also be able to advise you as to potential next steps which will allow you to make a well-informed decision about what to do next.

Summary

It is often the case that the parties have exhausted all the Pre-Action Protocols and the only way forward is to issue proceedings and to go through litigation. However, all parties need to consider the overriding objectives and proportionality, as well as being commercially minded about bringing a claim.

Most Fast Track matters do not go all the way to trial because parties decide to settle, having taken into consideration the issues, risks and costs involved in continuing litigation.

An experienced and commercially minded lawyer can make all the difference in a Fast Track matter. There will always be litigation risk, but a good lawyer should advise you on the best strategy to mitigate such risk, whist being mindful of costs and the likely prospects of your claim, to help you achieve the best outcome.

For further advice on commercial litigation matters, please contact Vishal Mahay, Head of Commercial Litigation at Silverback Law on vishal.mahay@silverbacklaw.co.uk

National Insolvency figures published (16 August 2022) by the Government’s Insolvency Service have indicated that the number of registered company insolvencies in August 2022 was 1,933:

• 43% higher than in the same month in the previous year (1,348 in August 2021), and
• 42% higher than the number registered three years previously (pre-pandemic; 1,365 in August 2019).

In August 2022 there were 1,662 Creditors’ Voluntary Liquidations (CVLs), 33% higher than in August 2021 and 73% higher than August 2019.

Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the coronavirus (COVID-19) pandemic, although there were almost four times as many compulsory liquidations in August 2022 as in August 2021, and the number of administrations was more than twice as high as a year ago.

What makes Top Service Different?

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance: What has happened from the time the business filed its last set of accounts to the time the credit check is performed?

Top Service Insider Intelligence is construction-specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for trade credit. 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

What you need to know about Top Service:

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.

• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.

• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 

• We have more than 30 years of experience in collecting commercial and contract debts.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.

Written by Keith Tully, partner at Real Business Rescue

With business insolvencies on the rise and organisations of all sizes struggling to deal with rapidly increasing costs, spotting the red flags of business failure is now more important than ever.

Fortunately, there are certain issues, both strategic and day-to-day, which signal problems ahead and can forewarn you to take the action needed. So what issues might provide a warning that your business is in decline?

You’re constantly chasing late payments

Consistent late payments subtly cause decline, but they can also sound the death knell for many businesses. Primarily, this is because the money isn’t coming in, but chasing overdue payments also consumes your time, diverts your attention, and prevents forward motion.

There’s a lack of cash

If there’s insufficient cash available to pay the bills as they become due, it’s a sign that the company could be insolvent. Lack of cash insidiously destabilises a business over time. This instability isn’t always obvious, however, if there’s no useful management information available, such as cash flow forecasts and debtor days.

You cannot secure new credit or borrowing

At some point suppliers and lenders will refuse to extend lines of credit or grant new borrowing when a business is in decline. Coupled with poor cash flows it leaves the business unable to move forward, and exposed to the possibility of legal action by its creditors.

Credit management is ineffectual

With no effective credit management policy in place, it’s easy to unwittingly take on customers who pay late. Regularly credit checking new customers is essential for business health, but ongoing checks on existing customers should also be made to confirm their financial situation hasn’t changed.

There’s no clear management information

If you don’t have useful information to steer your decisions, it’s a definite red flag for the business. Confirming your cash position is the first step, but being able to quickly access clear information on other areas of the business, such as how long your customers are taking to pay, is also essential.

Important customers are leaving

If one or more key customers leave it can seriously, and very quickly, affect your organisation’s cash flow, leading the business towards severe decline. It’s difficult to overcome the loss of predictable income from major customers, especially if it represented a significant proportion of the business’ monthly turnover. Business failure can occur due to wide ranging problems but awareness of the issues and their impact on business can help you deal with the situation successfully. Taking positive steps early on, such as reliably collecting in monies owed and minimising bad debts, can slow financial decline and ultimately enable growth.

For further information on identifying factors to suggest a business may be failing, please contact Keith Tully at Real Business Rescue on 0800 644 6080. Keith specialises in restructuring and turnaround support for businesses concerned about cash flow pressure and the threat of insolvency. He’s worked in business turnaround for more than 30 years.

What makes Top Service Different?

When mainstream agencies look at credit information they number crunch. They use the last set of accounts and any public record information to produce credit limits and scores. It’s a pretty good way to look at credit information but it can overlook information that a person notices, for instance: What has happened from the time the business filed its last set of accounts to the time the credit check is performed?

Top Service Insider Intelligence is construction-specific information that provides up to date, relevant, reliable information to enable more informed business decisions to be made when accepting an application for trade credit. 

As the only credit reference and debt recovery agency specific to the construction industry, we make it our mission to ensure our members receive the most up to date, credit information and company trading experiences. Our insider intelligence can make a real difference between company profit and painful write-offs. 

What you need to know about Top Service?

• Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
• Fast, effective collections. We know that speed is of the essence, so all collections are given top priority.  We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
• Fully compliant.  We have been trading for 30 years and we have always taken compliance very seriously.  We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA).  All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards. 
• We have more than 30 years of experience in collecting commercial and contract debts.