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!

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

Moderated by Philip King (Non-Executive Director), the panel features Simon Howell (Tarmac), Rosie Payne (Saint-Gobain), Chelsea Ware (Travis Perkins), and Sue Chapple (Chartered Institute of Credit Management). Together, they explore the evolving market challenges facing credit managers in the construction industry, including geopolitical instability, rising energy costs, unpredictable customer cash flow, and fixed-price contract risks.

Key Takeaways & Discussion Highlights

• Market Uncertainty & Rapidly Moving Variables:

  • Unpredictability as the Only Certainty: Simon Howell highlights that geopolitical events and global issues are creating fast-moving impacts on energy and material inputs, making forecasting and assessing customer financial health far more difficult than in the past.

  • Outdated Financial Data: Traditional methods, such as relying on a customer's annual set of accounts, are no longer sufficient because circumstances change much faster than reporting periods allow.

• Cost Pressures & Energy Surcharges:

  • Manufacturing Cost Spikes: Rosie Payne points out that energy costs have severely impacted manufacturing processes.

  • Passing Costs vs. Customer Pressure: To cope with rising manufacturing expenses, businesses have had to introduce energy surcharges. However, this creates a delicate balancing act to avoid over-pressuring customers who are already struggling financially.

• Tightening Cash Flow & Unpredictable Payments:

  • Cash Tightening Across the Sector: Simon notes a widespread trend of delayed payments as customers seek to conserve cash in response to economic pressures.

  • Declining Market Sentiment: Overall sentiment across key sub-sectors, such as housing and house building, remains low, increasing risks across supply chains.

• Fixed-Price Contracts & Retentions:

  • Fixed-Price Contract Risks: Chelsea Ware calls attention to the resurgence of older fixed-price contracts. Subcontractors and suppliers locked into fixed rates are hit hard by unexpected price increases from suppliers, resulting in severely squeezed margins and cash flow issues.

  • Retentions & Detail Scrutiny: Retentions continue to create financial strains long after project completion. Credit teams are having to delve into far deeper detail regarding client retention agreements than was previously necessary.

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 market uncertainty in construction? 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!

Here are the podcast episode notes based on the provided audio file:

In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) shares the closing segment from a joint webinar held with the Chartered Institute of Credit Management (CICM).

Moderated by Philip King (Non-Executive Director), the episode features quick, actionable advice from industry experts, including Paula Swain, Nicola Hannant, Elysia Ady, and Ivan, followed by key takeaways and a wrap-up from Emma Reilly on how to implement statutory late payment interest effectively.

Expert Final Tips & Takeaways

• Paula Swain (Kearns Legal Services):

  • Review Contract Terms: Regularly review and update your business’s terms and conditions to ensure late payment interest is properly integrated.

  • Monitor Legislation: Keep a close watch on potential government updates regarding mandatory late payment charges and statutory enforcement.

• Nicola Hannant:

  • Drive Internal Education: Focus on proactive education across your business so all teams—from credit to sales—understand the legal standing and application of late charges.

• Elysia Ady (Top Service):

  • Make Charges Work for You: Ensure statutory late payment fees are structured and applied in a way that actively supports your business’s cash flow goals.

• Ivan Carvalho (CICM):

  • Stay Connected & Skilled: Engage continuously with professional bodies like the CICM for upskilling, training, and qualifications to keep abreast of industry updates.

• Audience Contributor (Kerry):

  • Don't Waive Interest Instantly: If a debtor requests that late payment interest or statutory compensation be waived, stand firm initially and attempt to collect it on behalf of your business/client rather than giving in right away.

    
    

• Emma Reilly's Key Wrap-Up Insights

  Explore "Per Invoice" Charging: Consider charging statutory compensation and interest per individual invoice rather than as a single lump sum, as this can significantly boost recovery outcomes.

• • Consistency & Team Clarity: Maintain a consistent policy across all branches and ensure internal teams understand why and how late payment legislation is being enforced.

  • Get Accounting Systems Ready: Align your accounts department on how incoming late payment interest and compensation are coded and documented (handling requests for separate invoices).

  • Partner with Your Debt Collection Agency (DCA): Work closely with your DCA or legal partners. Ensure they understand your parameters, cost coverage needs, and negotiation boundaries so they can act effectively when contacting debtors.

  To receive the information pack on charging statutory late payment interest mentioned in the episode, please click the link on Emma's name in the player notes.

  
  

  Webinar Announcement & Information Pack

  To sign up for the next webinar, please visit:

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

  
  

  Connect with Us

  Have questions about credit management or enforcing statutory interest? 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 special extra episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) takes you to Vertikal Days—the UK's premier trade event for the lifting, access, and height safety industries.

To explore the unique financial hurdles facing the sector, Tosin Ajayi from Toes In Video Production hit the show floor to speak directly with industry leaders. From navigating slow payers and extended payment terms to dodging corporate insolvencies, our guests share what keeps them up at night—and how insider credit intelligence keeps their businesses thriving.

In This Episode, You'll Hear From:

• Tom Brown (Head of Construction, Bear Business Finance) on balancing debt recovery with preserving long-term client relationships.

• Rachel (Marketing Manager, Radius Group) on the hidden operational costs of chasing payments and handling client administrations.

• James Selby (Owner, Access Lincs Limited) on keeping top of extended credit terms across the access sector.

• April Lawrence (Finance Director, J&M Crane & Transport Ltd) on mitigating cash flow delays and utilizing member-driven credit checks for new accounts.

• David Porter (Finance Director, The Hireman Limited) on the value of director visibility and real-time payment behavior tracking over traditional credit reports.

• Jamie (AP Lifting Gear) on gaining crucial sector-specific insights to assess customer reliability before extending credit.

Key Takeaways:

• Beyond Companies House: Standard credit reports often miss the full picture—real-time trading data and peer-to-peer intelligence are essential for spotting bad debt early.

• Relationship-First Recovery: Effective debt management isn't just about collecting cash; it's about resolving issues without destroying key commercial partnerships.

• Proactive Credit Checking: Vet new clients thoroughly using industry-specific insights to protect your cash flow from day one.

Connect & Resources:

• Top Service: Learn how to protect your cash flow at top-service.co.uk

• Media Partner: Video production by Tosin Ajayi at Toes In Video Production

Don't forget to subscribe, rate, and share this episode with your network!

Here are the podcast episode notes based on the provided audio file:

In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) introduces a discussion featuring Nicola Hannant from CEMEX and Paula Swain of Kearns Legal Services.

Moderated by Philip King (Non-Executive Director), the conversation addresses the real-world implications of charging statutory late payment interest. The panel explores how to retain clients after applying charges, whether late fees spark competitive customer loss, and how credit teams should handle complex scenarios like internal fraud discoveries or acceleration clauses in contract terms.

Key Takeaways & Discussion Highlights

• Retaining Customers After Applying Late Payment Interest:

  • Automatic Reviews: When an account is escalated to a "letter before action" stage, the account is placed on a pending status.

  • Selective Trading Periods: Even after a debt and its statutory compensation are settled, businesses may pause trading with that customer for 6 to 12 months to observe whether their payment behaviour stabilises externally (using platforms like Top Service).

  • Commercial Alignment: If a customer threatens to walk away over late payment fees, the credit team collaborates internally with the commercial/sales department to evaluate whether to negotiate the charges or hold firm based on the client's long-term value.

• Do Competitors Win Business by Not Charging Interest?

  • Zero Market Loss: Nicola notes that CEMEX does not see business loss to competitors simply because statutory charges are applied.

  • Red Flag Customers: Paula Swain points out that if a client's main concern is avoiding late payment charges, they may already be planning on paying late—making them a risky customer to hold onto anyway.

• Chasing Fraudulent Accounts Before Due Dates:

  • Statutory Interest Restrictions: If an account is identified internally as fraudulent and credit facilities are pulled before an invoice is officially due, creditors cannot charge statutory late payment interest or compensation at that stage, as the contractual due date has not yet passed.

  • Best Practice Action: Place the account on hold immediately. As soon as the original payment due date passes, escalate legal action as quickly as possible.

• Acceleration Clauses & Multiple Invoices:

  • Handling Acceleration Terms: If contract terms contain an acceleration clause (stating all future invoices become immediately due if one goes overdue), statutory late payment charges are generally only applied to the originally overdue invoices during initial collection efforts, rather than charging late interest across the accelerated future balance.

Webinar Announcement

To sign up for the next webinar, please visit:

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

Connect with Us

Have questions about credit management or enforcing statutory interest? Connect 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, Emma Reilly breaks down the fast-shifting UK construction landscape. From credit insurers tightening risk limits to upcoming parliamentary legislation aimed at cracking down on late payments, learn how construction businesses can turn market challenges into opportunities for profitable growth and cash flow protection.

Key Takeaways & Episode Highlights

1. Market Update: Credit Insurers Tightening Belts

• Reduced Coverage: Trade credit surveys across the building materials sector show insurers are growing increasingly cautious, leading to slashed or pulled credit limits on key accounts.

• Higher Costs & Stricter Terms: Insurers are hiking premiums, tightening renewal terms, and often delaying risk profile updates, leaving suppliers hesitating to trade.

• Proactive Risk Management: Rather than letting aged invoices sit, businesses must turn overdue debt into active working capital to fuel future deals.

2. Commercial Payments Bill (Late Payments Bill) Updates

Parliament is progressing new legislation targeting the £11 billion lost annually by UK businesses due to delayed invoices:

• 60-Day Hard Cap: B2B contract payment windows will be capped at a maximum of 60 days (30 days for public authorities); extended terms will be legally void.

• Mandatory Late Interest: Overdue accounts will automatically accrue simple interest at 8% above the Bank of England base rate, with no option to contractually opt out.

• Ban on Retentions: Construction retentions are set to be banned following a two-year transition period.

• Enforcement Powers: The Small Business Commissioner will gain statutory powers to investigate persistent late payers and issue fines of up to 1% of annual UK turnover.

• • Corporate Transparency: Large firms must publish board-level or audit-committee-level commentaries detailing poor payment performance and remedial plans.

  Action Steps for Construction Suppliers

• • Recover Debt Early: Use firm, professional debt recovery teams to collect unpaid accounts without damaging crucial trading relationships.

• • Leverage Data: Don't rely solely on insurer limits—use real-time, sector-tailored credit intelligence to set self-insured limits safely and close more sales.

  
  

  Connect & Resources

• • LinkedIn: Search for Emma Reilly Top Service to share feedback, suggest episode topics, or discuss credit management strategies.

  • Website: https://www.top-service.co.uk/contact-us/ Contact the Top Service team to optimise your credit risk management and debt recovery process.