I told you it was a busy week. On Monday, I got myself down to Leicester Tigers Rugby club for a meeting of the Leicester Business Club a group of people with businesses to mpromote and ideas to share and learn.
The evening was about websites, both design and SEO and hardware. I was particularly interested in this as I am trying to get my site, which is hosted and was created on a platform, ranked better in google. Obviously I blog, you know that as your reading it, but I also create articles for the web, but I need to know more.
Anyway the presentations were good, but the opportunity to meet and sell was great as well.
I'll be joining as I think that it will be a good source of leads and revenue streams in the medium term.
Wednesday 15 July 2009
Utility Warehouse
What a busy week so far and it's only Wednesday. Last night a pal of mine took me to a very inspiring presentation from the folks at Utility Warehouse. They are an Aim listed company which essentiallly buys utilities auch as gas and electricity, phone and broadband and them sell it on to it's members. The brilliant thing is that the sell on price is less than the price of buying off of the utility companies themselves and they guarantee this.
Not many people have heard of them as thye do no marketing, and instead use multi level sales which rewards individuals who sign up other members.
The key point for me was that commissions were earned for life so someone you sign up esarns a commission albeit a small amount for the life of their membership. The key then is to get lots of members to join and also get some of those members to also be agents. This is what I did.
A pal of mine is an agent and he asked me if I wanted to be one, and so I paid my fee and now I am.
The great news for someone taking teh services is that over the course of the year savings of £800 can be made and it costs nothing to join as a member.
What would you do with £800? Why would you not take up this offer.
Anyway of you are interested please drop me an email, you could be a click away from saving £800.
Not many people have heard of them as thye do no marketing, and instead use multi level sales which rewards individuals who sign up other members.
The key point for me was that commissions were earned for life so someone you sign up esarns a commission albeit a small amount for the life of their membership. The key then is to get lots of members to join and also get some of those members to also be agents. This is what I did.
A pal of mine is an agent and he asked me if I wanted to be one, and so I paid my fee and now I am.
The great news for someone taking teh services is that over the course of the year savings of £800 can be made and it costs nothing to join as a member.
What would you do with £800? Why would you not take up this offer.
Anyway of you are interested please drop me an email, you could be a click away from saving £800.
Thursday 9 July 2009
Alliance and Leicester PPI mis-selling
I met with a chap yesterday who came to me with a debt problem after a little chat I was about to send him on his way, but we drifted on to what he did for a living. He said he worked for Alliance and Leicester as a contractor in the PPI department. he said he spent his days agreeing to pay back PPI commission on loans that people had taken out where the PPI was a pressurised sale. In two years between January 2005 and the end of 2007 some 210,000 loans were agreed with PPI on them , where the sales staff were encouraged to persuade anybody who questioned the inclusion of PPI to take it.
The cheques being sent out ranged from anywhere between £60 and £3,000 depending on the amount of the loan and the time over which it was being paid.
This struck me as quite astounding, and after a little reading I found that Allinace and Leicester has been fined £7,000,000 for this mis-selling. As well as them fines were also heaped on Liverpool Victoria in the amount of £840,000 and £1 million for The HFC.
I'm going to try to find out who else has been fined and post the information up here so those who have suffered understand they can claim.
The cheques being sent out ranged from anywhere between £60 and £3,000 depending on the amount of the loan and the time over which it was being paid.
This struck me as quite astounding, and after a little reading I found that Allinace and Leicester has been fined £7,000,000 for this mis-selling. As well as them fines were also heaped on Liverpool Victoria in the amount of £840,000 and £1 million for The HFC.
I'm going to try to find out who else has been fined and post the information up here so those who have suffered understand they can claim.
Wednesday 8 July 2009
Credit Card Companies Falling Down on Data Protection Requirements
One law for one and one law for another. That's how it seems to me today. I try to help people understand whether or not they have a credit card agreement which complies with the strict requirements of the Consumer Credit Act. To so this I do a Subject Access Request, under the Data Protection Act 1998. It is s simple request and the obligations likewise are simple. Make available what you have that relates to me.
So now in relation to SAR's for Credit Cards I am getting back a file of charges that have been levied. If I am lucky I get a pile of statements three inches think. What I seek and what I don't get is a copy of the original agreement signed (presumably) by both parties). Now why might that be? Perhaps it's because the agreement that exists (if indeed it exists) is not enforceable.ie it doesn't contain precribed trems as required by the CCA 1974.
If it doesn't have those terms it is not enforceable. Simple. So by not supplying a copy of this document by way of a subject access request, they give the applicant no chance to assess if he has to worry about the card being enforceable.
To counter this I now send each case that doesn't have an agreement sent within 40 days, to my solicitor who makes and application to court for an order that the agreement be supplied.
This causes the card company a problem as they have to comply or they can't enforce the agreement, but if they do try to comply they will be shown as not having an enforceable agreement.
If you have a problem getting your agreement. Call me and I'll set my lawyers on the case.
So now in relation to SAR's for Credit Cards I am getting back a file of charges that have been levied. If I am lucky I get a pile of statements three inches think. What I seek and what I don't get is a copy of the original agreement signed (presumably) by both parties). Now why might that be? Perhaps it's because the agreement that exists (if indeed it exists) is not enforceable.ie it doesn't contain precribed trems as required by the CCA 1974.
If it doesn't have those terms it is not enforceable. Simple. So by not supplying a copy of this document by way of a subject access request, they give the applicant no chance to assess if he has to worry about the card being enforceable.
To counter this I now send each case that doesn't have an agreement sent within 40 days, to my solicitor who makes and application to court for an order that the agreement be supplied.
This causes the card company a problem as they have to comply or they can't enforce the agreement, but if they do try to comply they will be shown as not having an enforceable agreement.
If you have a problem getting your agreement. Call me and I'll set my lawyers on the case.
Tuesday 7 July 2009
Why an Administration might be right for your business
The company administration is now an extremely popular method for a company to deal with its financial problems. In the last quarter of 2008, some 2000 companies took advice and opted for the administration solution.
When an administration is proposed, it is generally with the intention of saving the whole or part of the company as a going concern, proposing a CVA or achieving a better realisation than might be achieved if the company does not enter into an administration.
If the company has a trading business that would be affected by any cessation in trade, then an admin must be considered. Any closure of stores, or for instance a public house, may lead to loss of confidence, and a resulting loss of trade.
If the company is a people business and relies on its staff, then it will want to protect those staff and the relationships they have. A liquidation may cause a people business to lose staff, and contracts before a rescue package can be put in place.
It would also work for a business that deals with perishable items and this can be combined with a centre-bind which would help the administrator sell these items before they spoiled.
The proposed administrator will prepare his proposal, and present it to court. If the court thinks that there is merit in the proposal, time will be given to see those plans through to fruition. The administrator will then have three months to complete matters before the order expires. He may apply for more time if required, but he must show a reasonable chance of success.
In the vast majority of cases a proposed administrator will have an exit route in mind and move very quickly to put that in place, before those deals expire.
If you have a business that is in trouble, but you think that it can be saved. You need to call an insolvency practitioner now, so they have the best chance of getting maximum value from what is left.
Why a small business man should close an insolvent business
Company Winding Up A company winding up is the mechanism by which an insolvent business legally ceases to trade with the help and assistance of an insolvency practitioner. It is often called a creditors voluntary liquidation. As a company director you need to be constantly aware of the financial position of your business, and take steps, if you conclude that the company is insolvent, not to increase the debt levels. If you conclude after a review that the company can be turned around, then you are allowed to trade it, but such decisions need to be minuted at meetings and evidence of the steps taken documented. A failure to do this can later result in an action against a director for wrongful trading. If you conclude that whatever steps you take the business will still ultimately fail and may increase in losses, then as a director you are obliged to take steps to close it down. For many the route taken will be the Creditors Voluntary Liquidation. If the company has an underlying good business, but will not trade through its problems then the business should be closed, but it could continue in another guise, with a pre-pack sale to a phoenix company. The liquidation is begun by directors reporting to the shareholders, that the company should cease to trade. They will then generally approach an insolvency practitioner to help prepare a statement of affairs and call a meeting of creditors, who will ultimately vote to liquidate the company. If you are unsure of the procedure take advice from some one such as an insolvency practitioner who will be ideally placed to help you take the first steps, which will include preparing the necessary paperwork, and also getting the finance in place for a pre-pack if so required. It is generally thought advisable for directors to take the bull by the horns and begin the winding up process themselves as it is a clear sign of corporate responsibility. This will go to your favour on the report that a Liquidator must prepare for the Secretary of State. The winding up process is not difficult but it is understand that it can be emotional. It is common place to have feelings of guilt about closing down a business. If you have dealt with suppliers for many years you will feel bad about not paying them. I suspect that for too long many of you have even paid suppliers out of your own pockets. That is not the point of a limited company enterprise, It exists to protect personal liability. If you continue to trade whilst insolvent, you risk wrongful trading as I outlined above. It is better for all to take steps to close down the insolvent business and if appropriate pre-pack the sale of the going concern to a clean company, that way jobs are saved, no further losses are incurred and your suppliers can trade afresh with a solvent entity. Remember you do not have to face this alone, but by delaying making the call, could make matters worse for your creditors, and ultimately that may reflect upon you.
Monday 6 July 2009
Factoring- It could be for you.
As I write this the most almighty storm is raging overhead. The internet is intermittant and the sky is very dark. It could be an analogy for your business. However, if you have a ledger of invoices then you may be able to release the funds help up in those for instant cash flow. Read the following and contact me if you need any further assistance in this area, or you would like to talk to someone about how factoring may help you.
Factoring
Factoring: Is it for your business?
Factoring
Factoring: Is it for your business?
Factoring can be a great way for some companies to raise finance and shift borrowing off of their balance sheet. It is an alternative but similar to invoice discounting. It has its pro’s and con’s. If you are closing one business and maybe looking to pre-pack the solution into a liquidation or an administration, then we will be able to finance your wishes.
Advantages:
It is among the quickest way to get advance cash. - Overhead charges get automatically reduced with the cut in invoice processing activities.
Getting cash with factoring helps in eliminating the risks of bad debts as these can be insured against.
The business owner becomes free of various other obligations connected with the invoice processing like depositing cheques and entering payments.
The task of debt collection is undertaken by the factoring company and so it helps the company by releasing time for it to concentrate on value added activities.
It gives an opportunity to offer credit terms to customers without hindering cash flow.
Factoring brings no extra liability in balance sheet and hence does not result in creating hassles while obtaining other types of financing.
Early payment discount is another benefit of factoring. Payment of bills before the scheduled time brings in many benefits in the form of discounts.
It is an easy way to have an access to unlimited capital as with an increase in sale more money becomes immediately available to business owners.
Some other benefits include building credit, quick and easy process, concentration on marketing and securing new accounts and no long-term obligation.
Disadvantages:
The biggest disadvantage is it makes the process complicated as it acts as an extra link in the process. However we have good links with a number of companies and can advise at the outset whether or not we can your deal away.
It is useful for companies with disputes and queries to hold up payment which may result in claw backs.
The ambit for borrowing gets narrowed, as account receivables will not be available for security. Many banks often require this to be available for them to add onto other borrowing.
Factors may want to get your customers examined and may have influence over your ways of doing business. This is usually the case where there are few customers of high value.
In case the customers do not repay the money, you have to pay their amount entwined in factoring. It can lead to the inability to draw down full amounts each month.
It is costlier than other sources of finance though it is competitively priced.
Few customers don’t want to deal with a third party and are not interested in factoring.
Friday 3 July 2009
Business Liquidation - a fresh start
I get a lot of calls from people asking what the personal affects of closing down their company will be. Everybodies situation is different and a bit of time spent with someone can help tremendously. If you liek what you read on the blog and you want your own persnal chat, feel free to contact me.
You are here because you know that your business is in trouble and you want to know what your options are. Bottom line is you want to know what you can do to make this thing work and if it can’t what it will cost you.
Let’s start with you first. If you have personal guarantees and the company is going to fail, unless you can roll these across into a new co, then these will fall on you to discharge. That can be managed, as you can either negotiate full and final settlements, you can debt manage these or ultimately pop them into an IVA.
In most cases, if you are talking to a professional early enough, they can convince any bank that the solution lies in taking this business forward in another guise, not with the same limited company shell but in a new fresh business created out of the old with no debt, fresh ideas, a new impetus and without any of the baggage that encumbered the last company.
A liquidation may be seen as a death of one business, which is true, but it can also a birth of a new business, with a clean start, with no anchor to hold it back. It will have a chance to thrive, and grow. Professionals will help it source its finance, they will help it cut it’s cost base and with their guidance it will enter the most challenging corporate environment that many of our generation will ever have known.
This is not a moment for the timid, but then only the brave ever put their head above the parapet in any event. Do you still have that drive that you had when you first went into business, and can you still rise to the challenge that faces us all out there? Mostly can you work for someone else? No, I thought not. So if you have a business that is failing and yet you still have the zeal that first made you want to set up in business on your own in the first place, consider closing the old company and phoenixing with a new company. You can have the same ideas, same workforce, but without the debt that crippled the last business. If you have no-one who you can turn to follow the links at the base of this article..
http://www.helpwithdebtuk.com
You are here because you know that your business is in trouble and you want to know what your options are. Bottom line is you want to know what you can do to make this thing work and if it can’t what it will cost you.
Let’s start with you first. If you have personal guarantees and the company is going to fail, unless you can roll these across into a new co, then these will fall on you to discharge. That can be managed, as you can either negotiate full and final settlements, you can debt manage these or ultimately pop them into an IVA.
In most cases, if you are talking to a professional early enough, they can convince any bank that the solution lies in taking this business forward in another guise, not with the same limited company shell but in a new fresh business created out of the old with no debt, fresh ideas, a new impetus and without any of the baggage that encumbered the last company.
A liquidation may be seen as a death of one business, which is true, but it can also a birth of a new business, with a clean start, with no anchor to hold it back. It will have a chance to thrive, and grow. Professionals will help it source its finance, they will help it cut it’s cost base and with their guidance it will enter the most challenging corporate environment that many of our generation will ever have known.
This is not a moment for the timid, but then only the brave ever put their head above the parapet in any event. Do you still have that drive that you had when you first went into business, and can you still rise to the challenge that faces us all out there? Mostly can you work for someone else? No, I thought not. So if you have a business that is failing and yet you still have the zeal that first made you want to set up in business on your own in the first place, consider closing the old company and phoenixing with a new company. You can have the same ideas, same workforce, but without the debt that crippled the last business. If you have no-one who you can turn to follow the links at the base of this article..
http://www.helpwithdebtuk.com
Wednesday 1 July 2009
An Introduction to Bankruptcy
An Introduction to bankruptcy
Bankruptcy is often seen as the last resort in solving any debt issues, but I do not subscribe to this. On this site you will find the pros and cons of bankruptcy, and the myths of an IVA. Please read these and it will become apparent that bankruptcy has been and remains a far more utilised debt solution than the IVA.
The consequences of becoming bankrupt may mean you lose your house, it could prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for a period of time. Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be. This year some 80,000 individuals will become bankrupt.
Bankruptcy can be a daunting experience. Taking customers through the bankruptcy process, even attending court with you if necessary, is a particular area of expertise within Help With Debt UK. We have handled the bankruptcy process for a huge number of customers and can make it a quick and painless process, providing it is the right solution for you.
How do I know if I need to pursue the bankruptcy option?
The easy way to find out is to call one of our expert debt advisors. They will, very quickly, get to understand your current financial position and advise the best way to solve your situation. The conversation is completely confidential, free of charge and without obligation. We are just here to help.
What is bankruptcy?
Bankruptcy means that all your debts (subject to a very few minor exceptions) are written off on the instant you are made bankrupt. If you have disposable income you may be required to pay this to the Official Receiver for a maximum of three years. However as part of what we do we configure your disposable income to reduce as much as possible the potential of having to make income payments. You will generally be discharged from bankruptcy in a year or less. If you have equity in your property or valuable assets you may have to release these to the Official Receiver.
Bankruptcy is often seen as the last resort in solving any debt issues, but I do not subscribe to this. On this site you will find the pros and cons of bankruptcy, and the myths of an IVA. Please read these and it will become apparent that bankruptcy has been and remains a far more utilised debt solution than the IVA.
The consequences of becoming bankrupt may mean you lose your house, it could prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for a period of time. Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be. This year some 80,000 individuals will become bankrupt.
Bankruptcy can be a daunting experience. Taking customers through the bankruptcy process, even attending court with you if necessary, is a particular area of expertise within Help With Debt UK. We have handled the bankruptcy process for a huge number of customers and can make it a quick and painless process, providing it is the right solution for you.
How do I know if I need to pursue the bankruptcy option?
The easy way to find out is to call one of our expert debt advisors. They will, very quickly, get to understand your current financial position and advise the best way to solve your situation. The conversation is completely confidential, free of charge and without obligation. We are just here to help.
What is bankruptcy?
Bankruptcy means that all your debts (subject to a very few minor exceptions) are written off on the instant you are made bankrupt. If you have disposable income you may be required to pay this to the Official Receiver for a maximum of three years. However as part of what we do we configure your disposable income to reduce as much as possible the potential of having to make income payments. You will generally be discharged from bankruptcy in a year or less. If you have equity in your property or valuable assets you may have to release these to the Official Receiver.
How to Defeat a Statutory Demand
How to deal with a Statutory Demand.
We get lots of calls to the office from people who have been served with statutory demands via the post from debt collection agencies, such as 1st Credit, Connaught, Lowells, Robinson Way and Cap Quest.
Many are confused as to what they should do as the the Demand will mention that if the document is not dealt with within 18 days then after 21 days a petition can be presented. We can suggest that from experience this will not happen. The demand is being used as a debt collection tactic, and the Debt Collection Agency really has no intention of spending it's money on the considerable costs of petitioning for your bankruptcy.
We would advocate using the credit card write off service as a cost effective way or a) dealing with the demand and b) dealing with the debt. It will have the effect of putting the debt collection agency to proof that they have the right to collect the debt. In our experience they will be unable to comply with our requests for evidence of their right to enforce payment which will then lead to our ability to get this debt written off.
So if you have been served with a statutory demand from a debt collection company, such as 1st Credit, Connaught or Lowell, please contact us and we can use our skill and experience to bring an end to your worries.
We get lots of calls to the office from people who have been served with statutory demands via the post from debt collection agencies, such as 1st Credit, Connaught, Lowells, Robinson Way and Cap Quest.
Many are confused as to what they should do as the the Demand will mention that if the document is not dealt with within 18 days then after 21 days a petition can be presented. We can suggest that from experience this will not happen. The demand is being used as a debt collection tactic, and the Debt Collection Agency really has no intention of spending it's money on the considerable costs of petitioning for your bankruptcy.
We would advocate using the credit card write off service as a cost effective way or a) dealing with the demand and b) dealing with the debt. It will have the effect of putting the debt collection agency to proof that they have the right to collect the debt. In our experience they will be unable to comply with our requests for evidence of their right to enforce payment which will then lead to our ability to get this debt written off.
So if you have been served with a statutory demand from a debt collection company, such as 1st Credit, Connaught or Lowell, please contact us and we can use our skill and experience to bring an end to your worries.
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