A MESSAGE FROM ICSM CREDIT'S IAN CARROTTE: NOTES ON THE COVID-19 CRISIS - THE END GAME
Let's get back to work before the economy is trashed
Although I appreciate the powers that be have faced an unprecedented crisis with the Covid-19 virus they have not covered themselves in glory over how they’ve handled the economy.
Furloughing staff and offering loans and grants to companies have helped in the short term but having a total lock down and the language that goes with it has stalled the economy. Worse still they’ve made a swift recovery less likely due to the inflexible nature of the policy - for instance the issues of the two metre rule and airport quarantine plans. Will we get a V-shaped recession? Let's hope so but with so many out of work and zombie companies likely to crash later this year it suggests a long period of recovery similar to the one we had in 2008 with the Credit Crunch.
Keep a tight rein on credit
ICSM Credit exists to protect its members from bad debts and late payers. My advice has always been to keep a tight rein on credit and never to trade with firms who use their so-called 'good name' to extend payment terms. Sadly they frequently are the worst offenders at leaving their suppliers high and dry - so don't be tempted by large orders that come out of the blue from firms you've never traded with. ICSM Credit offers members accurate credit intelligence that is supplied by the people who know best - the suppliers of virtually every type of business in the UK.
The nation needs to get back to work and begin picking up the pieces of the economy by first opening up as much of the country’s businesses (with common sense social distancing in place) and injecting some cash flow into semi dormant firms as possible. We have speculated before about the type of recession that is likely to happen and although it is not yet official the downturn has already started.
All recessions are different
I’ve worked through four recessions and more than one or two dips in the economy and each one is different. This one will be different again as it is global and came about very quickly. You’d have to go back to the post World War One slumps to find a downturn like this one – and like now there was then a flu pandemic. The world has changed since then and so have economies so expect the unexpected.
On that note, do keep in touch and follow our insolvency and business news on the website and on Twitter, Facebook and LinkedIn - and if you don't receive our monthly newsletter then drop me a line I can send you a copy. And hopefully we'll see the very shallowest of recessions and be back to normal by Christmas.
Best wishes
Ian Carrotte
Proprietor of 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
ABOUT ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
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