ICSM Credit warns suppliers of holiday firms, airlines and travel agents to 'chase unpaid invoices' as sector collapses

Ian Carrotte of ICSM Credit said the coronavirus crisis has hit suppliers to one of the main sectors of the economy – namely the holiday, aviation and travel industries.

“We’ve had a lot of feedback from members who supply these industries,” he said, “they include printers, sign-makers, self-employed contractors of all types and transport firms and they are all very worried over getting paid. Plus they don’t see any future work if some of these household names go into administration. People said Thomas Cook were too big to fail – now a number of firms are in trouble as planes are grounded and holidays cancelled.”

The chancellor Rishi Sunak has said the Government were not minded to bail out airlines following a request from Virgin Atlantic for £7bn and instructed them to seek cash from shareholders. Only as a last resort would he consider any type of support.

Pleading their case the International Air Transport Association (IATA) said the industry was facing a wipe out as ticket sales had collapsed with the majority of planes grounded worldwide.

Ian Carrotte said credit lines to airlines, airports and holiday firms should not be extended by suppliers as there was a real danger many of those businesses would not pay up if they collapsed.

“Keep a tight grip on credit control,” he said, “outstanding invoices should be chased down and members of ICSM Credit can use our free legal letters to put pressure on reluctant payers. It is likely that some companies are using the coronavirus crisis as an excuse not to pay.”

ICSM Credit

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk