Credit Risk Guide – How the World views the UK (2 of 24 Part Guide)
Following on from my last post on 10 September 2014 in looking at the Credit Risk Guide of the world, today we look at Britain and what it has to offer on a global scale.
Recently, there has been a flurry of political activity within the UK, most recently with the YES/NO vote of Scotland, imagine what economic changes it would have bought to light, if Scotland had decided to vote as an independent country. Tax and economic threats where beginning to clamber here, especially with larger companies, looking to pull out, causing disruption to the Scottish economy.
Similarly, with the upcoming elections in May 2015 coming up, many outside of the UK are keen to see what will happen to the political and economic landscape.
Although domestically, the UK are known to have the largest number of tech start up’s, the majority of these are driven mainly by large foreign investment. This works well, due to a small interest rate set by the Bank of England, but this is likely to change as domestically, there has been a shift in employment figures, a rise in housing prices to show that perhaps there is a glimmer of hope for us Brits.
Having stayed out of the EU single policy has helped Britain, most notably as the performance of the Pound is strong amongst other world leading currencies such as Dollar, and the Yen. This could change, but overall this has remained stagnant, and perceived as being within the top ten of the world’s stable economies with lots of multinationals flocking to the UK, to set up their EMEA hub.
The business leaders and influencers of UK, are keen to open up trade and there is a large emphasis on the UK assisting entreprenuers, soloprenuers take up on obtaining a loan, crowd funding, Growth Acceleration, and other activities surrounding export finance and the opportunities to build better bridges with the rest of Europe and the World.
With a Risk Rating of 1 given under a scale of 1 to 5 here, with 1 being the less riskiest – there are many public sector services suffering as a result of the recent recession, but generally by having a nurtured structure in place UK Customers (provided that you have contact with them), means that you would eventually get paid.
The following looks what you, if your business is based abroad can do better to understand your Customers in the UK.
Large and small Customers alike make sure that your relationships with your contacts in the UK are ripe and counteractive as if with any relationship that turns sour, getting money out off debtors in the UK are going to be difficult. If they feel your Customer Service is appalling, then so can be the relationship and this could in turn cost you hundreds and thousands of pounds in legal fees if your Team/Company/Department do not tackle the problem early on.
PESTicide your Customer? What?
So, they seem to be nice on paper, and the credit check turns out to be ok, but what else can I check. Well, social media is a great way to start. The more established their media footprint, the better it is for you to understand their habits and whether or not it would be of benefit to you to start trading with them. This comes under the PEST (Political, Economical, Social and Technological) forecast that all businesses should utilise when understanding their Customer’s needs.
Already done business in the UK, but not getting paid
Generally, the UK are perceived as being able to pay their debts off. There are some squeezes on companies being able to pay, but the government are at present (or at time of writing) quite generous in assisting businesses pay their debts off (but only if they request the help initially). The classification on the UK, is that the majority of businesses are able to clear off their debts.
If all else fails…..
Sometimes legal action is not worth it. It could be that the company when they were undergoing a transaction phase with you had the funds, or requested more time, then one needs to be aware of the factors that are associated with companies that cannot pay. A he said/she said/they said argument can sometimes spiral out of control. In many cases, it is worthwhile to just pick up and negotiate a way out which is beneficial for all parties.
So, are you a business based abroad, looking for some intellect or knowhow as to what to do in terms of getting in touch with your UK based Customers, and/or do you need someone based locally to assist you and your business to gain better business control.
Do you need to understand the UK Enforcement laws better, then fear not as help is at hand.
For this and any other information, please contact www.doug-carr.com who would be able to assist you further.