In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) introduces an extract from a joint webinar with the CICM.

Moderated by Philip King (Non-Executive Director), the panel features Chelsea Ware (Travis Perkins) and Rosie Payne (Saint-Gobain) discussing current trends in collections. They explore whether overdue debts are rising, how credit teams manage "can't pay" versus "won't pay" scenarios, the increase in payment plan requests, and how to spot "red flag" invoice disputes.

Key Takeaways & Discussion Highlights

• Overdue Debt Trends & Cash Flow Bottlenecks:

  • Payment Delays on the Rise: Chelsea Ware notes that while a substantial volume of payments continues to come through, delays, payment plans, and cash flow strains are noticeably increasing across the construction supply chain.

  • Ripple Effects on Subcontractors: Main contractors delaying payments creates a trickle-down effect on subcontractors and sole traders, leaving multiple businesses vulnerable to a single client non-payment.

  • Unexpected Insolvencies: Alongside long-monitored accounts showing warning signs, credit teams are seeing unexpected failures driven by short-term cash flow freezes.

• "Can't Pay" vs. "Won't Pay" Dynamics:

  • Shift Toward "Can't Pay": Rosie Payne points out that sluggish cash flow across the supply chain means most current delays stem from genuine financial struggles rather than simple unwillingness.

  • Managing Payment Plans & Flexibility: With record requests for payment plans and split payments, credit teams are having to adapt, flex credit limits, and evaluate clients on a case-by-case basis to keep trade moving safely.

• Tactical Invoice Disputes & Red Flags:

  • Disputes as Cash Flow Shields: Disputes often increase during tough economic periods as clients seek excuses to delay payments.

  • Spotting Red Flags: A major red flag occurs when a client who rarely queries invoices suddenly places an entire set of overdue invoices into a Proof of Delivery (POD) query.

  • Operational Readiness: To counter tactical delays, credit teams must ensure backend operational processes (automatic PODs, order acknowledgements) are robust, removing excuses and enabling swift payment demands.

Webinar Announcement

To sign up for the next webinar, please visit:

👉 https://www.cicm.com/cicmevents.html

Connect with Us

Have questions about managing credit risk or handling disputed debts? Reach out on LinkedIn:

• Emma Reilly: Search for Emma Reilly Top Service on LinkedIn.

Subscribe to Minimise Debt, Maximise Cash on your favourite podcast platform so you never miss an episode!

In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) shares an extract from a joint webinar with the CICM.

Moderated by Philip King (Non-Executive Director), the conversation features Simon Howell from Tarmac. Simon provides an insider's look into how construction insolvency trends are currently playing out, how credit managers can spot early warning signs, and the current state of the credit insurance market.

Key Takeaways & Discussion Highlights

• Customer Insolvency Landscape:

  • Navigating Ongoing Disruptions: Construction businesses have faced a sequence of major hurdles over recent years, from the aftermath of COVID-19 to energy price spikes following the Russia-Ukraine conflict.

  • Predictable Insolvencies: Despite cash flow pressures across the sector, many recent insolvencies have not come completely "out of the blue." Instead, businesses displaying long-standing financial strains are showing visible warning signs that credit teams can spot and act upon early.

  • Smarter Risk Spotting: Credit professionals have become increasingly adept at identifying early indicators of distress and taking proactive measures before a debt becomes unrecoverable.

• Credit Insurance & Market Cover Trends:

  • Excess of Loss Policies: Tarmac utilizes an "excess of loss" insurance structure with non-cancellable limits. This approach allows them to manage a significant portion of the risk internally while securing consistent, reliable cover.

  • Market Normalisation: Across the broader market, credit insurance availability has largely normalised rather than seeing sudden, widespread withdrawals of cover.

  • A Competitive Market: The credit insurance sector remains highly competitive, with insurers continuing to focus on providing valued services alongside cover.

Webinar Announcement

To sign up for the next webinar, please visit:

👉 https://www.cicm.com/cicmevents.html

Connect with Us

Have questions about managing credit risk or navigating construction insolvencies? Reach out on LinkedIn:

• Emma Reilly: Search for Emma Reilly Top Service on LinkedIn.

Subscribe to Minimise Debt, Maximise Cash on your favourite podcast platform so you never miss an episode!

In this September update, Emma Reilly shares how Top Service members are navigating current industry challenges, recovering aged accounts, and protecting their cash flow.

What's in this episode:

• Record Debt Recovery: Why August wasn't a slow month for Top Service members, and how clear consequences for non-payment drive results.

• £1M Fraud Prevention Milestone: How construction-specific trading data helped prevent nearly £1 million in direct fraud losses over the past 12 months.

• Team & Member Celebrations: Recognizing team achievements and new CICM accreditations.

• Preparing for Q4: Key steps to review your credit management strategy before heading into the final quarter.

Connect with Us:

• LinkedIn: Search Emma Reilly Top Service to connect and share your feedback.

• Subscribe: Hit subscribe on Spotify or your favourite podcast platform so you never miss an update!