“In our credit management procedures, we engage with two agencies for credit information. One is a mainstream agency, and the other is Top Service because of their construction industry-specific information.

Recently, when assessing a potential customer seeking a credit account, our primary provider’s data seemed satisfactory at first glance. However, upon cross-referencing with Top Service’s industry-specific insights, a completely different picture unfolded. This led us to decline the credit account, potentially saving our business £10,000. This is why we love using Top Service. Their unparalleled industry-specific information enables us to make well-informed credit decisions, safeguarding our business against bad debt risks”.

Sydenhams have a long tradition of supplying Timber & Building Materials throughout the Central South West region of England. They joined Top Service Ltd in August 2002, to help manage risk, minimise debt & maximise cash. 

What sets us apart? Our specialised focus on the construction industry and access to exclusive trading experience data make us an invaluable resource for companies operating in this sector. As the only credit reference & debt recovery agency in the UK exclusively for the construction sector, Top Service is dedicated to providing a one-of-a-kind credit information service specifically designed for the construction industry.

Offering real-time trading experience data shared by our members, updated minute by minute Top Service delivers the most relevant and insightful information to help you understand potential customers’ payment behaviour. Enabling you to make the best & most informed credit decisions for your business. Our data provides valuable insights including: whether you can expect to be paid on time, late, not at all or even whether you should expect disputed claims. Or crucially if your potential customer is approaching your business because they are on stop elsewhere.

This construction specific data is instrumental in helping businesses to minimise debt & maximise cash by making the best credit-related decisions.

Included in our credit reports are suggested credit limits, credit risk scores, county court judgment information & everything else you would expect from a credit report.

Our commitment to providing relevant, accurate, and up-to-date credit information tailored to the construction industry makes us a valuable partner for businesses in this sector.

Choose Top Service for unparalleled insights and support in making well-informed credit decisions within the construction industry.

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MJG Timber Ltd is a wholesale quality timber trade supplier, they decided to join Top Service Ltd in October 2023 to help manage risk, minimise debt & maximise cash. 

Introduced in 2020, the Restructuring Plan builds on the principles of a Scheme of Arrangement (A compromise or arrangement between a company and its members or creditors), but importantly prioritises the rights of creditors who stand to benefit from the terms of the plan, allowing them to take precedence over those classes of creditors with less or no economic benefit. Our friends at PKF has provided us with an exceptional guide that is packed with invaluable information.

Restructuring Plans – The Key Facts

• A Restructuring Plan is a statutory procedure under which a binding, but flexible arrangement can be made between a company facing financial difficulties and its creditors.  The process is designed to enable the company’s rescue as a going concern.

• Much like a Scheme of Arrangement, The Restructuring Plan enables a company to restructure its balance sheet and may also provide the necessary stability to support new lending (whether debt or equity).  Future operations can then be focused on growth as opposed to paying down historic debt. 

• A Restructuring Plan is subject to the approval of creditors who are arranged into various classes; any class of Creditor that would under normal circumstances have no economic interest, may now be excluded from the process with the approval of the Court, (which must ultimately sanction the Plan).

• More significantly, those classes of creditor who are likely to receive some form of financial return may also be compromised by a Restructuring Plan, as long as they receive more than they would otherwise have received if the Plan were not implemented.

• This ‘cross-class cram-down’ differentiates Restructuring Plans from other similar procedures. It allows those creditors with an actual economic interest to approve such Plans without being held to ransom by creditors who would otherwise not benefit at all.

Restructuring Plans – The Process

• Step 1 – Initiating the Process

The company must be experiencing difficulties or be likely to encounter such difficulties in the short term.  The process can be instigated by any one of the company’s directors, creditors, or shareholders applying to Court to seek approval to convene meetings of creditors and members.

• Step 2 – First Court Hearing

A first Court hearing will be held to consider whether:

• The company meets the eligibility criteria (i.e. it is insolvent or likely to become so)
• All classes of creditor have been correctly identified/formulated.
• Any classes of creditors or members who should be excluded on the basis that they have no genuine economic interest.

• Step 3 – Convening of Meetings

If the Court consents to the meetings being convened, a formal Notice will be sent to the creditors and members.  At the meetings, the votes of the creditors and members are recorded.  The requisite majorities are 75% by value of those present and voting in each class, which if achieved, will result in a second Court hearing.  If the majority threshold is not met, the process ends.

• Step 4 – Second Court Hearing and subsequent insolvency

At this hearing, the Court will determine whether to sanction the Plan, for which it has absolute discretion.  It should also be noted that even If the Restructuring Plan is approved, but the company subsequently enters into another insolvency process, “bound creditors” will continue to be compelled to abide by and will only be able to claim in the second proceedings for their compromised debt.

Thank you to our friends at PKF GM for producing the facts around Restructuring Plans for our use. 

A message to Top Service members from Emma Reilly FCICM, CEO at Top Service Ltd & Credit Expert

For more than three decades we have been seeking feedback from both clients and team members about how we can improve our services and elevate our levels of customer service.  The majority of our service enhancements over the years have been as a result of this valuable feedback for which we are very grateful.

As we grow it becomes more difficult to effectively capture ideas, suggestions and feedback from team members so we have recently launched a ‘Lunch With A Director’ initiative where every team member has the opportunity of one-to-one time with a director over a nice lunch.

We’ve had a really positive response from our team so far.

We have a highly skilled and experienced workforce who add so much value in terms of insights and new ideas and we can’t wait to be able to spend one-to-one time with everyone in the coming year.

Never underestimate the power of completing and submitting your insolvency paperwork—it’s your key to navigating the insolvency process as a creditor! We asked our friends at PKF to share their thoughts with us and our members.

Submitting a proof of debt form when receiving notice of an insolvency is important as this will not only mean your claim is submitted for dividend purposes, but it will also allow a creditor the chance to have their say on the outcome of the pre-appointment process, and later on in the insolvency as it progresses.

Due to the limited and variable time frames of insolvency processes, timely submission is paramount to safeguarding creditor rights. 

Once the proof of debt form is submitted, creditors gain several benefits:

• Have a say on who is appointed in the insolvency.
• Air any concerns about how an entity behaved.
• Have a say on the costs of the insolvency.
• Have a more direct say on how the insolvency progresses by forming a committee.

Submitting a claim gives access to the insolvency paperwork, which in turn allows a creditor the opportunity to vote on the appointment of an alternative insolvency practitioner of choice to replace the proposed firm of practitioners. This is done by using a proxy vote. This alternative insolvency practitioner could be a trusted insolvency partner firm who, if appointed, would have a more hands on approach to investigating a creditor’s concerns.

Having access to the paperwork and progress reports also allows a creditor to keep track of developments and to vote on decisions such as the insolvency practitioners fees. This keeps costs lower and could therefore mean more funds allocated to the dividend pot. In turn, this could mean enhanced returns to creditors.

If an appointment of an alternative insolvency practitioner of choice is unsuccessful due to voting outcomes, then another option to have a more hands on approach as a creditor is to request and vote in favour of a creditors committee. This will allow creditors a greater say in key decisions of the insolvency process.

All of the above are important reasons as to why submitting claims and proxies as a creditor in an insolvency are important and should not be delayed. 

Given the complexity and duration of insolvency processes, creditors may find themselves overwhelmed by paperwork and communication demands. The Creditor Services team at PKF offer a free service to all Top Service members and can assist with the following:

• Advice and support regarding any formal or non-formal insolvency process.
• A bespoke lodging and proxy management service which alleviates the administrative burden for creditors and reports back on all insolvencies in a simplified format.
• Representation at creditor meetings.
• Seeking the appointment of licensed insolvency practitioners of PKF to investigate insolvent entities and creditor concerns.

If you would like to more about the services offered to Top Service members by PKF Creditor Services, please get in touch via creditorservices@pkfgm.co.uk

There were 1769 company insolvencies registered for January 2024, reported by the Insolvency Service. 

Made up by:

339 compulsory liquidations

1294 creditors voluntary liquidations

120 administrations 

16 CVA’s

Compared to January 2023, there has been a 5% increase in company insolvencies in January 2024.

A proactive approach to credit management will help to support businesses through what is expected to be a difficult first quarter of 2024. 

Understanding what credit management information, tools and services are available to your business will help you to achieve your business financial goals.

Amidst the news that the UK has officially entered recession, businesses are seeking ways to minimise debt and maximise cash flow. 

The economy shrunk by a larger than expected 0.3% between October and December, after it had already contracted between July and September. The UK is in recession if it fails to grow for two successive quarters.

A proactive approach to credit management can support you and your business in achieving these goals.

We are working with thousands of construction businesses, supporting them to secure a successful future.

Communities in the London boroughs of Newham and Southwark are to benefit from the acceleration of thousands of new homes, across three major brownfield regeneration projects, through a pioneering partnership.

Reflecting the strong need in London for affordable homes, 40 per cent of the new homes on two of the sites, which have planning permission, are to be genuinely affordable for local people. The first homes should be ready in 2027 alongside retail and leisure facilities.

The three projects are:

• Twelvetrees Park, Newham. The 26-acre site is being transformed into a mixed-use neighbourhood including close to 4,000 homes, of which 40 per cent will be affordable, a secondary school, park, playground and 177,000 square feet of commercial space. The funding will support the second of four phases to regenerate the former depot and coach park.
• Bermondsey Place, Southwark. Nearly 1,400 homes, 40 per cent of which will be affordable, created across a 5.4-acre former light industrial site, alongside a network of public parks, playgrounds, commercial spaces, footpaths and a one-acre civic square. Funding will bring together several parcels of owned land to ignite progress.
• Beckton Riverside, Newham. Up to 2,800 private and affordable homes, subject to planning consents, will be created under the first phase of delivery across a larger site of 28 acres. Following planning consent, the funding will expedite vital infrastructure works on the former gasworks.

Read More here: https://www.gov.uk/government/news/major-regeneration-investment-to-accelerate-8000-new-homes-in-newham-and-southwark?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=e382ed9a-e608-4980-b28e-e949420a05b8&utm_content=daily