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Bad Debts , Cash Flow, Chasing Invoice Payments, Collections, Credit Control, Credit Management, Debt Collection, Debt Recovery, Getting Paid, Getting Paid On Time, Getting Paid Overseas, International Credit Control, Outsourced Sales Ledger, Outsourcing Receivables, Outsourced Credit Control, Outsourcing Receivables Management, Slow Payers, Slow Payments, Late Payments, Late Payers, Debtors Late Paying, Creditors Pressing – are there any more ?

Manchester Building Society is in talks to sell its commercial bank Whiteaway Laidlaw.

The Royal Bank of Scotland is reportedly in exclusive negotiations to buy the bank, which employs around 17 staff, has a loan book of £30m and total assets of over £40m.

Whiteaway Laidlaw was acquired from Argos and Homebase owner Home Retail Group by the mutual in 2007.

It could reportedly fetch £10m.

Sources confirmed Manchester Building Society was in discussions to sell, adding that it was aiming to capitalise on demand for banking licences by businesses seeking to enter the market without having to go through the Financial Services Authority’s registration process.

“Banking licences are attracting significant premiums and in those circumstances the building society is interested in cashing in. It’s easier to buy an existing licence than set up a new bank, which can cost millions of pounds.”

Whiteaway Laidlaw specialises in lending to small and medium-sized firms and personal customers but was considered non-core by Home Retail Group and faced closure before Manchester Building Society stepped in with a deal in early 2007.

Assets come in various forms and CFS can help if you are looking to acquire assets for your business or are looking to re-finance existing assets such as Plant & Eqipment, Commercial Vehicles, to release cash for your business.

One of the common causes is the use of short-term funding, such as an Overdraft Facility, to buy Fixed Assets, i.e. Plant and Equipment, Vehicles etc. Cash Flow becomes tight and the overdraft becomes “hardcore” thus making it very difficult for a business to trade out of a shortage of cash.

Cash Flow Finance, otherwise known as Factoring or Invoice Discounting, has been in existence for over 40 years. Those who do not fully appreciate the ways in which it can help a business, in the short, medium or long-term, do not always understand the flexibility, efficiency and cost savings it may bring.

A typical scenario:

• The company standard terms are 30 to 60 days to Debtors and the same to Creditors

• In theory, as the company debtors pay their invoices, so creditors are also being paid

• However, the company credit control is a little stretched and debtors are late paying

• In the meantime, creditors are not prepared to wait, and

• The bank will not extend the overdraft facility, as the security has no extra comfort margin

• Consequently cash flow gets very tight, with suppliers, PAYE and VAT pressing, but the company has

• Debtors who, although a bit slow in paying, are still good for payment.Solution:

A manufacturing company has a bank overdraft, fully secured against personal assets, such as propertyUsing the existing Debtors, whom, for example stand at £100,000, we can immediately unlock up to 90%, providing payment history is satisfactory.

This will release cash, but also, for a cost-effective service charge, the Factoring Company can handle the TOTAL credit control function. This allows the company management to concentrate on more profitable business areas, such as increasing sales or deploying staff to other key areas of the business.

In addition, the release of cash into the business may also improve supplier terms such as discount for early settlement.

CFS provides short and medium-term bridging loans. Whatever the requirement, we can help you.Bridging Finance is the most appropriate form of finance where speed is essential to take advantage of purchase opportunities, where traditional lenders cannot offer finance, due to time or risk constraints.

CFS has unique arrangements with FSA Regulated Independent Institutions that will save you considerable costs against your existing providers.

contact CFS to see how we can help your business save money.

The UK market is likely to remain on tenterhooks this week as investors await news on which parties will form the next British government. The most likely scenarios now appear to be either a Lib/Lab coalition, a Lib/Conservative coalition, or the Conservatives going it alone with the help of minor parties. But until a concrete outcome emerges, and decisive action in the fight against our fiscal deficit can be announced, the uncertainty is expected to undermine market performances.

There is plenty more to keep investors occupied beyond UK shores, not to mention the opportunities presented to long-term contrarian investors if volatility continues.

“Despite the short-term uncertainties in the UK, we are investing in a global market and, globally, there are bigger factors at play than the outcome of the UK election,” commented Simon Haines, manager of the Threadneedle Mid UK 250 Fund on Friday. “On the negative side, concerns about debt levels in countries with far more pressing problems than the UK, such as Greece, will continue to weigh on confidence. But on the positive side, the global economy is in recovery mode, growth in Asia and emerging markets is particularly strong and company fundamentals are in good shape. It is worth remembering that 70% of UK corporate earnings come from outside the UK, and companies in the US, Europe and Japan also have considerable exposure to fast-growing emerging markets.”

Returning our spotlight to home soil, insurers could be in play Monday morning as Prudential has reportedly reached an agreement with the Financial Services Authority that will see the insurance giant set up a £1 billion backstop fund to placate concerns over its capital position once it has acquired AIG’s Asian arm, AIA in a $35.5 billion (£24 billion) deal.

Royal Bank of Scotland will also be eyed following weekend reports that Richard Branson’s Virgin Money is no longer in the running to buy more than 300 branches from the part-nationalised bank. The remaining three bidders for the forced sale are Santander, BBVA and National Australia Bank.

Monday
The week is set to start quietly on the corporate front but on the economic front will be kicked off with a delayed announcement from the Bank of England. The Monetary Policy Committee postponed last week’s interest rate and fiscal stimulus decision to avoid any risk that its policy could influence the UK general election. Still, the MPC is widely expected to maintain the status quo, keeping rates at their record low and quantitative easing on hold.

In other economic news, Germany’s balance of trade and current account should provide insight into the health of once of Europe’s strongest member states.

Tuesday
First half results from budget airline easyJet are expected to convey recent struggles for air transport players on Tuesday, as could first quarter numbers from InterContinental Hotels Group.

As the week’s economic agenda starts to fill up, UK investors will have the latest RICS housing market survey, industrial production figures, and the BRC sales monitor to contend with, while Germany’s consumer price index and the ABC consumer confidence reading in the US will present a more global view of economic developments.

Wednesday
The BoE inflation report, combined with the latest data on UK unemployment, will be closely watched for further indications of how robust the economic recovery is looking and whether the UK is strong enough to weather the debt-beating measures proposed by the Conservative government.

On the same day, a flash estimate of the EU’s gross domestic product will provide information on how the economic region is faring as a whole, while Germany’s own GDP estimate will likely juxtapose against information coming from the UK and weaker European states such as Spain and Portugal.

Looking further afield, data due from the US includes the balance of trade, MBA mortgage applications and the Treasury’s Budget statement.

On the corporate front, British food caterer Compass Group will post interims, while oil explorer Tullow Oil and mid-cap housebuilder Barratt Developments will both update the markets with their interim management statements. Full year results from FirstGroup will focus attention on the transport sector, while Barclays shares are likely to feel the pressure of trading exclusive of dividend rights.

Thursday
More news from the travel and leisure industries on Thursday, with interim numbers from holiday operators Thomas Cook Group and Holidaybreak, while Sainsbury’s final results will provide insight into the retail industry. Full-year figures from 3i Group and interims from Euromoney Institutional Investor will represent the investment and financial services arena.

In economic news, the UK will unveil its balance of trade report, while the European Central Bank report comes out of Brussels and the US announces labour market data and import and export price indices.

Friday
Winding down at the end of the week, North America will provide the main focal point for those watching economic indicators. Business inventories, capacity utilisation, industrial production, retail sales and retail sales inventories are all due for release on Friday.

The increased uncertainty over the economic outlook, rising level of debt and doubts over Greece’s ability to finance its ongoing debt requirement, led to the European Union (EU) and International Monetary Fund (IMF) announcing a joint rescue package on 25 March 2010. Whilst the headline details of this loan were outlined, key details such as the exact size, cost and term were missing, resulting in nervousness in financial markets.

The uncertainty continued to build in early April, with the four largest banks in Greece requesting access to the remaining €17 billion from the state support package established in 2008, followed by downgrades to Greece’s sovereign debt.

On 22 April, Greece’s fiscal deficit was upwardly revised to 13.6% of its GDP – the 4th such revision in the last year; uncertainty prevailed once again and markets reacted accordingly. Greek government bonds were heavily sold and the euro hit an 11 month low versus the US dollar as foreign exchange investors took a flight to safety (source: FT, April 2010). These events led to Greece formally requesting the aid proposed by the EU/IMF earlier in the month.

Speculation began to spread that this rescue package was not nearly large enough to meet Greece’s near term financing requirements and ratings agency Standard & Poor’s was next in line to downgrade Greece’s debt, this time to ‘junk’ status (BB+), reflecting the heightened status of the debt crisis.

Confidence continued to diminish in Greek sovereign debt to such an extent that their government bond yields moved around 8% higher than UK gilts, reflecting the increased risk, until news that EU ministers and the IMF had taken unprecedented steps to help. Loans of €110 billion were approved to avert sovereign default in return for Greece’s commitment to a €24 billion austerity package, or spending cuts, targeted at reducing the budget deficit from 13.6% to less than 3% by 2014.

Crisis averted?

The immediate prospect of default has been averted. However, market reaction to the €110 billion international rescue package was muted on concerns that such extreme belt tightening raises doubts over Greece’s economic growth and does not completely eliminate the prospect of future defaults.

The €110 billion of loans will meet the bulk of Greece’s financing needs over the next three years, but confidence will still need to be regained if future government debt issues are to become a viable source of finance once again.

The challenge ahead for Greece is tackling the tough targets in the austerity package, without several of the tools usually required to help boost growth. Monetary policy remains loose and therefore has limited use as a stimulus; the membership of the euro-zone removes the possibility of deflating the currency to boost investment from overseas; global growth is unlikely to be sufficient enough to drag Greece along with it. Alongside the economic risks is the political risk that the Greek government will back down in the face of civil unrest including a series of general strikes and riots.

Nevertheless, whilst uncertainty remains, the important first steps have been taken to ensure financing is in place to enable Greece to function and the hope is that the fear of a country defaulting has been nipped in the bud