Archive for July, 2011

Federal Management Announces New Partnership With Frontline Collections

Thursday, July 28th, 2011

Federal Management have given formal announcement of their exciting new corporate partnership with Frontline Collections, strengthening their debt collection operations across the UK & Overseas.

Under the New Partnership, Frontline Collections will be solely concentrating on the Private & consumer debt collection sector and this will allow Federal to focus solely on further developing their high level services in the Commercial, Corporate & Executive markets.

Frontline, whose Head Office is in Manchester, have quickly developed a reputation for delivering a professional and direct service. Already boasting prestigious clients in the Financial Services industry, Frontline expects considerable growth over the next 12 months as demand rises for their Low Cost Debt Recovery Services.

Federal Management’s Managing Director said “This is an exciting new venture that will see everybody benefit, especially our clients. Federal Management’s modus operandi can now solely be largely tailored around the Corporate & Commercial Sectors in which we are so prolific.” He further adds: “From an internal perspective also, it will allow us to significantly improve our working practices & further develop the expertise of our highly trained personnel.”

Federal Management will now largely deal with Commercial & Executive Debt Recovery allowing Frontline to cater specifically for the Private & Consumer Markets that deal with predominantly lower Debt Values.

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Stock Markets Rise After New Aid Package to Greece

Friday, July 22nd, 2011

After the Eurozone reached an agreement to help resolve the debt crisis in Greece, Stock Markets have made positive movements upwards.

Increases in the UK’s FTSE, Germany’s DAX and France’s CAC gained more than 0.5% in early trading with Japan’s Nikkei up an impressive 1.2%. Furthermore, increases were seen on the Euro against the dollar.

Eurozone leaders have a greed to provide a further 109 billion euros ($155bn, £96.3bn) financial aid package to Greece. Private lenders have also agreed to contribute towards the package which sees Greece given decades more to repay the debt.

Shares in banks also continued to rise after seeing sharp gains on Thursday as the Royal Bank of Scotland, Barclays and Credit Agrcole (France) were all up more than 3%.

Mark Rutte, the Dutch Prime Minister said:

“We have sent a clear signal to the markets by showing our determination to stem the crisis and turn the tide in Greece, thereby securing the future of the savings, pensions and jobs of our citizens all over Europe.”

The 109 billion-euro package includes:

Various options to extend Greece’s repayment terms and reduce the amount it repays.
Voluntary private sector participation in these options, so that banks share taxpayers’ burden.
Doubling the length of repayment terms for the Irish Republic and Portugal, both of which have received financial assistance previously.
Additional powers granted to the European Financial Stability Facility to buy up bonds and to make credit available to countries such as Spain and Italy that are not at immediate risk of insolvency.
The Institute of International Finance (IIF) – a global trade body representing big banks and other major lenders – said the planned debt restructuring would target participation by 90% of Greece’s private sector lenders.

Tags: debt crisis, eurozone, greece, stock markets
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HMRC Appoints Ten Debt Collection Agencies to Collect £1bn

Thursday, July 21st, 2011

Her Majesties Revenue & Customs (HMRC) have appointed ten different debt collection agencies to pursue outstanding debt of £1 billion.

HMRC confirmed in a tender-award notice that the contracts were worth £70 million pounds and last year the Treasury announced that up to £1 billion a year would be recovered by debt collection agencies. 2010-2011 saw a commercial debt collection trial with 4 companies being used with the aim of collecting £140 million.

The debt collection companies will be collected older and smaller debts which frees up HMRC to pursue the larger outstanding amounts.

It is understood that before a debt is passed to the debt collection agencies the debtor in question will receive a notice from HMRC to give them a final chance to come to an agreement over the outstanding amount.

Tags: debt collection, debt collection agencies, Her Majesties Revenue & Customs, HMRC
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Fears Over Europe’s Debt Crisis Causes Stock Markets to Fall

Monday, July 18th, 2011

A healthcheck on banks failed to calm worries over Europe’s debt crisis as stock markets fell on Monday.

The Royal Bank of Scotland was down 3.8% and BNP Paribas 3.1% as financial shares were hit hard. The FTSE 100 saw a drop of 0.9% with France’s CAC 40 and Germany’s Dax down 1.4% and 1.9% respectively.

On Friday the European Banking Authority published results of a stress test on the finances of European banks. Eight of the banks tested failed the stress test on their finances while sixteen others were said to be “near a danger zone.”

The news has seen investors continue to plough money into gold with the price of the metal topping $1,600.00 for the first time recently.

Investors are also concerned with the failure of the Obama administration to agree a debt ceiling deal with the US in danger of defaulting on its debts unless new rules can be agreed by Congress to enable further money to be borrowed by Washington.

Thursdays sees eurozone leaders attending a summit to thrash out a second “bail-out” package for debt riddled Greece.

German Chancellor Angela Merken, said that private investors who would be contributing to the bailout would need to provide clear commitments and went on to describe the summit as “urgently necessary” and that she wanted “a result.”

John-Claude Trichet, head of the European Central Bank called for Governments to stick together and speak as one, saying that the debt crisis can be overcome if they all stick together.

Mr Trichet said:

“It is a question of will and determination. The countries of Europe have always demonstrated that they pull together when the challenges are very high.”

Mr Trichet also repeated that Greek bonds will not be accepted as collateral for loans if the countries debts are defaulted. However, an orderly default is believed to be the only way that the Greek debt crisis can be resolved by some economists.

Lee Hardman, Bank of Tokyo Analyst said:

“On the face of it, the tests highlight that the European banking sector is in better health than expected, although crucially investor concern will remain over the credibility of the tests given that the tests did not include an assessment of the impact of sovereign defaults.”

The euro also fell as dealers bought up Swiss francs and yen. In trading in Asia the euro fell at one point to a record low against the Swiss franc of 1.1365.

Tags: bank of tokyo, debt, european banking authority, european central bank, eurozone, financial stress test, german chancellor, greece, greek
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Looking For a Debt Collection Agency? Let Us Help …

Wednesday, July 13th, 2011

If you are looking for a debt collection agency then finding the right one can be quite a daunting task. In the UK alone there are hundreds to pick from ranging in size from small one man bands to large corporations with employees in the thousands.

The problem is, which one to choose? You know you need to choose one of them – you have a legitimate debt to be collected and you want to ensure that you find the debt collection agency that is best suited for the task.

Let us help. The following guidelines will help you to find the rightconsumer or commercial debt collection agency for you.

The debt collection agency that you choose should represent you, or your company, in a professional manner and provide a satisfactory rate of recovery while maintaining your public image or brand. As with anything, you want to get as much back as possible for as little as possible up front but when it comes to a debt collection agency you really do get what you pay for. If you overlook this factor you can end up with a commercial or consumer debt collection agency that not only prejudices your chance of a successful recovery but can also damage your own reputation.

The debt collection agency you choose should be:

Fully licensed members of the Credit Services Association (CSA)
Experienced in the recovery of your specific type of debt or related industry.
Experienced in the type or age of debt you are looking to have recovered. An invoice that is 30 days overdue is a completely different kettle of fish to one that is 2 years overdue.
Is ISO accredited to ensure the level of service provided is optimal.
Provides you with regular updates as to the progress of your account to keep you informed of what is happening.

If the company you choose can tick all of the boxes above then you are well on the way to finding a debt collection agency who is right for you.

Tags: debt collection, debt collection agency, guidelines, who to choose
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Would You Buy an Insolvent Company?

Monday, July 11th, 2011

There is a large amount of companies that are currently being advised for sale with deceptively high price tags where the owner of the business has been led to believe they will receive a huge amount for their business. However, upon closer inspection many of these companies either have arrears to HRMC and other creditors, or are on existing Time to Pay arrangements with HMRC.

The report by K2 Business Rescue shows that a large amount of companies are insolvent but this information only tends to surface when an interested party actually performs due diligence and it is becoming a major worry for potential investors who may be looking to purchase new companies to fit in alongside their existing businesses.

It is fair to say that the majority of business buyers, irrespective of experience, don’t have the required knowledge to perform the necessary due diligence on a company and asses its potential. The company for sale might be characterised by a failing TTP, creditor pressure, contractual obligations, asset finance agreements, onerous or unwanted leases, all of which have been ignored while the owners try to sell. It is common for owners to try and protect their personal guarantees from being activated which would happen in liquidation or an asset sale via pre-pack administration.

It is possible, however, that a potential buyer or investor may work alongside existing directors to come to an arrangement with creditors or debt collection agencies to protect the business.

Buying a business or company in financial difficulty is traditionally done via a pre-pack administration. Insolvency companies promote this as a “clean break” and “leave creditors behind” but it is rare for that to be the case.

In addition to the commercial challenges, pre-pack administrations are being scrutinised following outrage by unsecured creditors. While there is no requirement to consult creditors the perception of abuse has put them under the spotlight.

This may result in CVAs becoming more popular, especially as they involve consultation with creditors whose approval is needed.

Tags: arrears, companies for sale, HMRC, insolvent
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48% More Buyers are Obtaining Mortgages

Sunday, July 10th, 2011

In the last three months, West End specialist estate agency, LDG, has seen a 48% increase in buyers using mortgages to finance their purchases.

In the first quarter of 2011, 73% of LDG’s buyers paid cash for their properties, but this has now dropped dramatically to just 25%.

Ben Everest, a partner at LDG, comments:

“This huge swing in how property purchases are financed is very interesting and there could be a number of reasons for the shift.”

“For example, buyers who have large cash deposits may be opting to lock in to fixed rate finance deals while interest rates are still low; it was announced today (7th July) that rates will remain at 0.5%, but it is anticipated that they will rise later in the year.”

“Whilst mortgage availability is still a big problem at the lower end of the market, those who have large deposits are able to access favourable repayment rates and so the predicted capital appreciation which London properties can expect to achieve in the long term can eradicate the costs of borrowing, leaving buyers with more cash capital to use for other ventures which can give them a good return on their money.”

“The property market in the West End is very consistent at the moment; as anticipated, the spring market saw an increase in transaction volumes.”

“For both the first and second quarters of this year, around 60% of our buyers have been purchasing main family homes, and just under 20% have purchased for investment purposes.”

“These trends correlate closely with the first half of 2010, and I expect the consistency to remain as we move into the third quarter of 2011.”

“Similarly, the nationalities of our buyers continue to reflect those which we experienced last year; around 60% are from the UK, 20% are from countries within the EU, and a final 20% are from the rest of the world.”

“The London property market continues to attract foreign buyers as it is viewed as a ‘safe haven’ for investment and the weak pound means that buyers from Europe and the Middle East can benefit from exchange rates.”

Tags: finance, mortgages, purchases
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London Borough issues bailiff tender

Saturday, July 9th, 2011

The London Borough of Richmond upon Thames is seeking two bailiff companies to assist the recovery of council tax, business rates, and overpaid housing benefits over a three year period.

The contract will begin at the start of November this year and run until the end of October 2014, but the successful firms will have the option to extend for a further two years in 12 month increments.

Tenderers must provide the council with financial statements covering the last three years, during which they must have achieved a minimum annual turnover of £100,000. Tenderers must also have indemnity insurance and be prepared to increase their cover if required.

Tags: bailiff, council tax, debt recovery, housing benefit, london
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Central London prices rise 34% since March 2009

Tuesday, July 5th, 2011

Prices of prime London property rose 0.9% in June 2011, contributing to annual growth of 8.3%, report Knight Frank.

Prices have risen 34% since their recent post-credit crunch low in March 2009. Prices are now at a record high, 2% higher than their previous peak in March 2008.

Demand is holding steady as new supply looks set to surge – prices will continue to grow, albeit at a slower pace in the second half of 2011. Knight Frank revises its forecast for prime central London price growth from 3% to 9% this year

Liam Bailey, head of Knight Frank Residential Research, comments:

“Price growth in the prime central London market continued through June with a further 0.9% rise in prices. Aside from a brief stumble last autumn, prices have been rising strongly since April 2009, and prices are now 2% higher than their previous peak in March 2008.

“Looking behind the headline numbers for price growth, activity measures are pointing to continued strong conditions in the central London market over the next few months.

“While the number of exchanges fell year-on-year in June by 9%, this was not unexpected, bearing in mind the surge of sales prior to 6 April as buyers tried to complete their sale under the old 4% £1m+ stamp duty rate rather than the new 5% rate.

“More tellingly there appears to be a new wave of sales coming through, with the volume of properties going under-offer (sold subject to contract) rising by 52% year on year in June.

“On the demand side the number of new buyer registrations has held steady (up slightly by 0.4% this June compared to June 2010), although viewings volumes were up 8% over the same period.

“If demand has risen marginally, supply has risen more rapidly – much to the relief of buyers who have faced thin choice in the market for the last 18 months.

“Stock volumes have risen 12% in the year to June, but there is more in the pipeline – with the numbers of new instructions rising 55% in June compared to last June.

“In the light of ongoing strong conditions in the market, we have revised our 2011 forecast for prime central London prices upwards from 3% growth to 9% over the year – this forecast assumes a slowing in price growth in the second half of the year, driven in part by rising supply and a more competitive environment for vendors.”

Tags: annual growth, knight frank, london property, prices
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