For Business

Credit insurance to strengthen your business

By Emma Drew

April 23, 2015

Credit insurance to strengthen your business

With only 3 weeks to go we are well under way with preparations for BIBA 2015, 13-14 May, at Manchester Central.

2015 speakers include William Hague, Jeremy Paxman, Professor Brian Cox, Andrew Strauss, Baroness Tanni Grey-Thompson and Kevin Keegan, and with an even wider array of credit-themed cocktails available on our stand, you’d be mad to miss out!

BIBA Credit Management and Bonds Scheme, arranged by Perkins Slade, will be at stand E77. Our experienced team will be on hand to present this unique scheme exclusively for brokers.

The conference offers the perfect forum to meet with the team, learn more about the scheme and join us for a mocktail – or cocktail prepared by our professional mixologist.

Register for BIBA 2015.

We look forward to seeing you at the show.

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Protect your business from the dangers of the supplier effect

By Emma Drew

January 12, 2015

Protect your business from the dangers of the supplier effect

A Credit Managers worst fear is to have a key buyer enter insolvency; last years’ Phones 4u case is a prime example of this. Any prudent manager would have assessed this risk and taken into consideration their 20 year track record and £80m+ profits to approve a significant credit limit.

 

This is why when the company suddenly failed, their trade creditors were in excess of £100m. The press provided blow by blow accounts regarding the reasons; concluding that their failure was due to their main suppliers Vodafone and EE terminating contracts, leaving Phones 4 U without any contracts to sell.

Phones 4u isn’t the only company to experience severe difficulties due to what we call the ‘supplier effect’. Late last year we also saw shares in the on-line travel agency eDreams plunged 59% on the Madrid stock exchange after British Airways and Iberia said they were withdrawing their fares from three of its websites.

Leading accountancy and advisory firm, Ernst & Young has confirmed that UK Plc issued 69 profit warnings in Q3 2014, the highest third quarter since the recession. The indication is that companies are over-estimating the pace of recovery.

Perkins Slade has an experienced Credit team able to tailor policies around the specific needs of your clients’ business to help mitigate such risks and protect them from unexpected loss.

 

For more information contact our Credit team today on 0121 698 8149 or via email: creditteam@perkins-slade.com

 

 

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Perkins Slade works with new partner to grow credit insurance business

By Emma Drew

June 13, 2014

Perkins Slade works with new partner to grow credit insurance business

Perkins Slade is partnering with the Credit Insurance Alliance (CIA) to support and grow the company’s credit insurance book of business.

In the CIA, Perkins Slade has found a like-minded independent broker who is also a specialist in credit insurance risks. CIA company directors, Deana Kearns and Eileen Barter, have each been working in the credit insurance industry for over twenty five years. Deana and Eileen are both very experienced and highly regarded within the industry, by both insurers and other brokers.

The company believes CIA’s advice and support will further enhance the core strength of the services Perkins Slade offers businesses seeking this type of cover.

Speaking about the new relationship, Perkins Slade CEO, Nick Tamblyn, commented,

“At Perkins Slade we have been looking for a strategic partner to help us further enhance our offering in this very specialised field. It was important to us to identify and attract an organisation with not only the right blend of expertise, experience and peer respect, but also a similar philosophy to that of Perkins Slade, which is based on putting client service at the apex of the business mission.

This philosophy has helped Perkins Slade succeed in a very competitive market and we believe, that in CIA, we have found the ideal partner with similar values to our own.”

For more information contact our credit insurance team by email at credit@perkins-slade.com or call 0121 698 8000, alternatively visit our web site.

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Challenges facing UK businesses in 2013

By Emma Drew

February 5, 2013

Challenges facing UK businesses in 2013

2012 will be remembered as a difficult year as the Eurozone slipped back into recession in an environment of accelerated difficulties in both the public and private sectors.

We find the prospects and forecasts for 2013 show not much is changed. With the UK’s economy contracting by 0.3% in the final quarter of 2012, it increases the likelihood of a further threat of a triple dip recession during the course of 2013. Growth is close to flat which extends the trend seen for some time.

We are now entering the sixth consecutive year of economic crisis, placing increased pressure on companies’ balance sheets. Among the many risks to monitor in 2013, we also have the extended recession in the Eurozone as well as the number of company failures, which over recent months has been soaring. A number of major businesses have failed in the last year with high profile names such as Comet, Jessop’s, HMV and Blockbuster all failing in the last six weeks alone.

It is safe to say it has been difficult in all trade sectors. The construction and retail sectors have found it particularly challenging and the steel sector is also vulnerable due to overcapacity and falling demand in China.

UK businesses have, on the face of it, managed to steer through challenging economic waters, but below the surface the outlook for company insolvencies does not look likely to improve. Continuing economic stagnation could trigger a new wave of business failures, particularly among companies struggling to generate the revenues required to continue trading while paying down debts.

‘Zombie companies’ is a term coined to describe businesses that are marginally profitable or making small losses, but falling short of true viability. A typical zombie company will be highly geared, but unable to pay anything more than the interest due on outstanding debts. As such they are reliant on continued support from lenders. Banks are becoming increasingly concerned about the turnaround prospects of these businesses.

The problems associated with turning under-performing companies around are becoming more acute, with actions taken by HMRC and bad debts as the most likely triggers of failure. Lenders continue to cite tight working capital, marginal profitability and inability to repay capital as the main areas of concern.

Whilst many companies have excellent credit management procedures with sophisticated systems, no amount of good credit control can prevent some of the factors mentioned above preventing their customers falling delinquent or becoming financially distressed.

Credit insurance does offer a practical means of assisting and supporting companies to manage and mitigate their risk. It provides ‘before the horse bolts’ information plus a constant monitoring system that will alert the business to the first signs of their customers getting into distress.

Information, communication and transparency remains the key to them being able to do this and companies are now well used to providing what is required in order to keep their credit lines open. Insurers will also offer practical advice whether the debt is insured or uninsured on what to do once their customer has actually failed, thereby minimising loss.

Credit Insurance has evolved since the difficult times of 2009 and 2010 and insurers are very much open for business. They can tailor structures and programmes around the actual needs of the business. All efforts are being made to support businesses to trade out of these economic doldrums, whether it be support to get the country building or additional Government support through UK Export Finance to provide payment certainty to businesses trading further afield in more volatile territories.

Sally Del Principe
Associate Director – Credit

For more information or to talk to Sally about how your business could benefit from credit insurance call 0121 698 8000 or email credit@perkins-slade.com

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BIBA Scotland 2012

By Emma Drew

October 10, 2012

BIBA Scotland 2012

With just over four weeks to go we are well under way with preparations for British Insurance Brokers Association (BIBA) Scotland Conference 2012, 14 November, at Airth Castle Hotel.

The day will have the theme ‘Insuring the Future’ and will give brokers in Scotland the opportunity to explore the key issues facing the sector.

BIBA Credit Management and Bonds Scheme, arranged by Perkins Slade, will be on stand 11. This exclusive scheme for BIBA members provides affordable cover at a time when capacity is still limited on the open market. Our scheme can help you to enhance your customer proposition and block attacks form competitors as well as reducing client failure by encouraging robust credit management.

On the day, Credit Development Executive, Darren Felsenstein, will be chairing a session at 3.05pm on trade credit insurance entitled ‘Protect your business’. This lively presentation will look at: what the Scheme covers, how BIBA can support you in promoting these products to your clients, what the benefits are for you and your clients, and how you access the Scheme.

Speaking about the conference, BIBA Regional Chairman, Kenny Whitton said, “We have a long tradition of running successful events for our Scottish members and we have plans to introduce some fresh ideas into our 2012 conference to make it even more valuable and relevant to those brokers. With the challenges we face, it’s vital that we work, learn and develop together. We enjoy a great level of support from exhibitors and sponsors and once again will be offering insurers and other service providers the opportunity to also get involved so that we create a day that is fully-inclusive for the benefit of all those working in the insurance sector in Scotland.”

Click here for more information on BIBA Scotland 2012

We look forward to meeting you at the show.

Perkins Slade is authorised and regulated by the Financial Services Authority.

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BIBA 2012

By Emma Drew

April 20, 2012

With just under four weeks to go we are well under way with preparations for BIBA 2012, 16-17 May, at Manchester Central. Journalist and broadcaster Andrew Marr will be chairing our trade credit seminar, and with an array of credit-themed cocktails available on our stand, you’d be mad to miss out!

BIBA Credit Management and Bonds Scheme, arranged by Perkins Slade, will be at stand E55. Our experienced team will be on hand to present this unique scheme exclusively for brokers.

The BIBA 2012 conference offers the perfect forum to meet with the BIBA Credit Management and Bonds team, come along to stand E55 to learn more about the scheme and join us for a mocktail – or even a cocktail prepared by our professional cocktail mixologist.

On Thursday 17th May, 10.30am, Associate Director and Credit Team Manager, Sally Del Principe, will be participating in the seminar on trade credit insurance. This lively session, chaired by Andrew Marr, will explore and explain how brokers can help their clients to cover their trade credit risks, and where to get that specialist help, whilst creating an additional income stream for themselves. Click here for more information or to register for BIBA 2012.

We look forward to seeing you at the show.

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