Paul Taylor from Taylored Credit Management delivered this session as part of a full days introductory session to new Credit & Risk professionals at the end of 2018. The scale of fees changes so please contact us if you want an updated version. You need to hear the presentation but here are the slides, get in touch for more information or to arrange training for your Credit Control team.

1. Paul Taylor CMgr FCMI MCICM

2.  Paul Taylor – Chartered Manager & Credit Geek
 Head of Credit & Risk – Top 100 company
 22 years experience spanning various industries
◦ FMCG
◦ Telecommunications
◦ Freight/Logistics
◦ Security/Fire
◦ Retail Operations
◦ Construction
 Fellow of the Association of Credit Professionals
 Fellow of the Chartered Management Institute
 Member of Advisory Council for CICM & VC NI
Branch

3. A lawful and legally recognised association, corporation, partnership,
proprietorship, trust or individual.
A legal entity has the capacity to…
• Enter into agreements or contracts
• Assume certain obligations
• Incur and pay debts
• Sue and be sued in it’s own rights
• Be accountable for illegal activities
• Be a Shareholder
A legal entity cannot…
• Marry
• Vote
• hold Public Office

4.  Corporate
 Private Limited Company
 Public Limited Company
 Personal/Business/Non-Limited
 Sole Trader
 Partnership
 Limited Liability Partnership

5.  Private Limited Company
◦ Usually shown as LTD, Ltd, Limited
◦ Liability is limited to the value of the shareholdings
◦ Shareholdings are Private and cannot be bought
◦ The Company is legally bound to file annual accounts
 ROI – 10 months of their Financial Year end
 UK – 9 months of their Financial Year end
◦ The Company is legally bound to file an annual return
◦ Directors and Shareholders may differ
◦ The Company may be owned by another, referred to
as a Holding Company

6.  Public Limited Company
◦ Usually shown as PLC, Plc
◦ Differences between Public & Private
◦ Shareholdings are Public and can be openly bought
◦ Stocks are floated on the stock market like the FTSE

7.  Sole Trader
 An individual person who is the exclusive
owner of a business, entitled to keep all profits
after tax has been paid but liable for all losses.
 Liability is unlimited
 There is no obligation to file accounts or any
documents whatsoever, anywhere

8.  Partnership
 A Business organisation made up of 2 or
more people who is the exclusive owner of a
business, entitled to keep all profits after tax
has been paid but liable for all losses.
 Liability is unlimited – The partners are jointly
& fully liable for all debts incurred in full
 There is no obligation to file accounts or any
documents whatsoever, anywhere

9.  Limited Liability Partnership (LLP)
 A partnership in which some or all partners have
limited liability
 It exhibits many elements of partnerships and
corporations
 One partner is not responsible or liable for another
partner's misconduct or negligence
 Mainly used by Professional firms – Solicitors &
Accountants
 Becoming more widely used within this industry
 Not legally bound to file accounts, optional

11. Paul Taylor CMgr FCMI MCICM

12.  Small Claims Court can be used on balances
◦ Up to £300 £30 fee
◦ Up to £500 £50 fee
◦ Up to £1,000 £70 fee
◦ Up to £3,000 £100 fee
◦ Costs are added to the value of the debt
◦ Costs incurred are not recoverable in full from the
losing party
◦ Once issued – the debtor has 21 days to take action

13.  County Court can be used on balances
◦ Up to £5,000 £165 fee
◦ Up to £15,000 £185 fee
◦ Costs are added to the value of the debt
◦ Costs incurred are recoverable in full from the losing
party
 Costs to complete undisputed circa. £650-£700
 Costs to complete disputed circa. £1,500-£2,500
◦ Once issued – the debtor has 21 days to take action

14.  High Court can be used on balances
◦ Exceeding £15,001 £200 for issue of Writ
◦ Costs are added to the value of the debt
◦ The process is lengthy and costly
◦ Costs incurred are recoverable in full from the losing
party
 Costs to complete undisputed circa. £750-£850
 Costs to complete disputed circa. £5,000-£25,000+
◦ Once issued – the debtor has 21 days to take action
In High Court cases, new guidelines are
forcing both sides into Pre-action Protocol
Meetings/Hearings

15.  Basic Court processes
◦ On receipt of proceedings, the debtor has 3 options:
 To admit liability and…
 pay the debt/claim
 ask for time to pay
 To dispute the debt and/or counterclaim
◦ Exit options are:
 Paid in full – Case dismissed
 Default decree granted
 Hearing listed and both sides heard
 Decree granted or case dismissed with/without an order for
costs

16.  Basic Enforcement Processes
◦ Once a decree/judgement has been granted
◦ All enforcement via the EJO
 1 Notice of Intent to Enforce £20
 2 Full enforcement application £X
◦ Request to appear for examination of affairs
◦ Summons to appear for examination of affairs
◦ Conditional Order for Warrant of Arrest
◦ Issue of a Bench Warrant for Arrest

17.  Basic Enforcement Options
◦ Instalment order
◦ Order Charging Land
◦ Garnishee Order/Attachment of Debt Order
◦ Attachment of Earnings
◦ Order Appointing Receiver
◦ Seizure Order
◦ Certificate of Unenforceability

18.  Insolvency can be used on balances
◦ Exceeding £750 Very aggressive approach
◦ Expensive at circa.
 £1,700 for a Bankruptcy
 £2,200 for a Court Ordered Winding Up/Compulsory Liq.
◦ Usually reserved for higher balances
◦ Can be started to instil a sense of urgency with our
debt

19.  Insolvency process
◦ Service of a Statutory Demand £145-£185
 Payment must be made within 21 Days of proper service
◦ If no payment is made, a Bankruptcy or Winding Up
Petition can be lodged
◦ When lodged this includes a date of hearing
◦ The hearing must be advertised in the relevant
Gazette A great stick for Limited Companies
The bank freezes assets &
accounts when advertised