A Utility Companies' Credit Circle?

According to Credit Today, Max Griffiths, the head of credit risk at British Gas Residential, has apparently suddenly realised that sharing customer data early is a more effective way of getting paid in the short term - or at all! - than trying to collect a debt later on.

And I couldn't agree more. The question here, though, is - sharing with whom? And how, and to what extent?

Mr. Griffiths, speaking at the Credit Today Utilities Conference in Manchester, talked about 'accessing external credit data', but I have to say that the article published in Credit Today's on-line news gave me the distinct impression that the 'external credit data' he was talking about was that collected by other utility companies rather than the standard credit data collected by, for example, a credit reference agency.

Mr. Griffiths did acknowledge that all utility companies were obliged to use customer data correctly - but added that there was a lot a value in finding out how customers were behaving 'elsewhere'. And where, exactly, is 'elsewhere'?

Is Mr. Griffiths really contemplating a gigantic utility-based credit circle? And if he is, does he contemplate that circle abiding by the strict rules that govern all credit circles?

I can visualise the credit circle. It's the circle obeying the rules that I'm having a problem with.

Sales and Credit - What Happened to the Rapprochement?

When a Sales Department is in the driving seat and has the bit firmly between its teeth it can, frankly, drive any Credit Department (and me!) into the ground and up the wall.

I've heard and read a lot over the last year or so about the new 'cordial relationship' that was supposed to be developing between these two opposing factions - and I have to say that I had great hopes that there would actually come a time when each would truly understand the motives and aims of the other and make appropriate allowances accordingly.

Sadly, having spent the last two weeks chasing really quite piddling sums of money owed by very large companies to other very large companies - and, of course, listening carefully (and attempting to comply!) with the urgently expressed desires of both Sales and Credit as to my conduct whilst doing so - I don't believe that my hopes are likely to be realised in either the short or the long term.

I managed, at the end of the day, to do a reasonably good job all round without upsetting anyone's Sales Department or (heaven forbid!) anyone's customers - but I was left with the feeling that neither one was behaving very sensibly.

Surely it isn't difficult for any Sales Department to understand that nothing is sold until it is paid for, and if a great many things are not paid for then cash flow will suffer.

And surely any Company, however large, must be aware that a whole series of unpaid debts - however small each of those debts happens to be - is going to put up a red flag somewhere and cause a potential credit problem someday.

TGIF!

Free Events from the FPB - and Free Advice from Creare Design

The Forum of Private Business is hosting a series of free breakfast networking events featuring Creare Design , a web design and search optimisation company.

The events are being held at various locations around the country, will take place between 8:00 and 10:00 a.m., and are designed to help SMEs boost their on-line business profile. You can check on dates - and reserve your place (or places!) - on the Forum's site.

Considering the importance of an optimal on-line presence these days, it would be worth travelling to your nearest venue to take advantage of any advice you can pick up from Creare. We have rather arrived at the point where a business without a website is automatically 'written off' as a non-starter by many potential customers - and it is, of course, very important that a company's website is capable of attracting new customers, and doesn't just get lost in the huge world of the world-wide web.

Two hours is not a lot of time to get to grips with getting the best out of your own particular www dot co dot uk, but it's better than nothing - and it's free.

Never Be Your Own Lawyer

Years ago, when I was working for Harry Goodrich, Harry got involved in a case against him that would have best left to someone else to deal with. I could say a lot about Harry, but the only thing I need to say here is that he was an excellent Solicitor and that acting as his own lawyer ruined him.

Like 'do-it-yourself' credit management, 'do-it-yourself' debt collection is something that anyone can learn. The principles are relatively simple; there are numerous relatively simple books to learn from - and a glance at Amazon.co.uk shows that people are buying those relatively simple books in relatively large numbers because they can and want to learn, and because self-sufficiency is very satisfying as well as being much cheaper than relying on somebody else.

This blog - like those relatively simple books - has always been about doing things yourself, and I am a great believer in self-sufficiency, but I have to say that there are limits to DIY. It's important to recognise them.

The Workplace Parking Levy

Let's ignore for the moment all of the reasons put forward in support of the Workplace Parking Levy and the arguments against it, and concentrate on a single - and very important - question.

Can such such a tax be legally imposed on private land, whether Leasehold or Freehold, that is the property of a business that had planning permission to provide parking for its customers and staff when it entered into a contract to purchase or occupy the land and the buildings thereon, if any?

I am no expert at Conveyancing - in fact I always disliked Conveyancing very much, and my memory of whatever I was once forced to learn of it is therefore extremely vague - but it seems to me that if there were to be a legal right to impose such a tax on land the property of a business, then a legal right to impose the same tax on land the property of private individual would necessarily ensue. That would, of course, result in everyone unfortunate enough not to own a garage having to pay to park their vehicle in their own (already heavily mortgaged!) driveway.

This Levy has been nicely wrapped in 'green', environmentally pleasing phrases, but when one takes off the pretty paper, I fear that one will only find a dangerous little stealth tax lurking in the box.

And How is Your Bank Treating You These Days?

The Forum of Private Business is hosting a questionnaire on behalf of the Office of Fair Trading in an effort to find out whether SMEs are being denied credit without a valid reason - or are, in the alternative, being offered credit at extortionate rates - by banks and other financial institutions that seem to have become increasingly 'risk averse'.

The survey covers a range of banking issues, takes only a few moments to complete, and is completely confidential. It is open to all SMEs, and can be accessed at www.bit.ly/cPVVcf

The Forum hopes that as many SMEs as possible will take part in this survey - and, indeed, it would to be advantageous to business generally if there were a very large response to it.

Lending fell again in July. Banks and their industry groups are claiming that lending is down because demand is down, and claim that they are doing everything they possibly can to increase the flow of finance to business. This survey is part of an ongoing process to discover whether that is - or is not - the case.

We have most of us, I think, had cause to complain at one time or another about the abitrary - and sometimes incomprehensible - behaviour of the financial institutions that are an unavoidable part of being in business, but we have never before had the opportunity to actually make a complaint.

Don't waste this chance! The next one could be a long time coming.