As reported by the BBC yesterday, there has been a surge in adverts which suggest people can get rid of their debts or loans simply by selling them.
The Office of Fair Trading (OFT) has warned borrowers to ignore these misleading adverts, confirming that debts cannot legally be sold without a lender's permission. Consumers who are worried about their debts may understandably be attracted to the idea of getting rid of them in this 'easy' way, but as always, if something seems to good to be true it probably is.
The first step in tacking the issue of debt is to establish exactly how serious the issue is, what options are genuinely available and which of these is likely to deliver the most suitable result for your individual circumstances.
The Debt Helper offers a quick and easy way of doing all of this with it's online Debt Analyser. It's free to use and only takes 2 minutes to enter your details and get an initial evaluation.
read more....
Wednesday, 24 June 2009
Monday, 22 June 2009
Businesses failing through increased customer defaults
Businesses worldwide are suffering financially and in many cases actually failing themselves through the domino effect of their business customers defaulting on credit terms, often as a result of their own customers in turn failing to pay up or even going bust. In a vicious spiral default on credit terms between businesses are rippling like dominoes through the business world causing further defaulted payments and in some cases businesses are being forced into administration being unable to continue without the vital cashflow all businesses need to survive.
Whilst defaults have always been a risk when invoicing business customers on credit terms, the risk as it has been in recent decades has in the global recession changed fundamentally for a number of reasons:
1. in the current economic climate, most businesses are experiencing reduced sales, turnover & profits compared to recent times, leading to in many cases extended settlement of bills and invoices to their suppliers and in some cases insolvency or administration of the business.
2. businesses with customers in the above circumstances suffer delays or total failure in the expected and crucial receipt of payments for goods & services provided which in turn adversely affects it's own cashflow and ability to pay it's own invoices due.
3. traditional 'bail-out' solutions such as overdrafts or other assistance from it's bankers have increasingly been reduced or withdrawn.
Michael Cooke, Business Risk Consultant at The Insurance Helper comments: "It's very frustrating to see an otherwise solvent and sound business suddenly dragged into financial difficulties or even into administration through no real fault of their own as a result of unpaid invoices, especially when it's as a result of the domino effect and they had used appropriate due diligence in setting credit limits for customers but those customers then default due to unforeseen external factors.
"Many businesses we work with feel protected through their use of initial and ongoing credit checking of customers and the setting of appropriate credit limits combined with the option of pursuing debtors through the courts for unpaid debts or the use of debt collection companies to resolve bad debts; however, it's a sad fact that with the withdrawal or reduction in short-term funding from banks to cover the funding gap while debts are recovered, some businesses are simply unable to survive long enough without the crucial cashflow in the business to actually recover the debt, and just go bust themselves before recovering the monies owed.
"It's because of these aspects that Trade Credit Insurance is more vital for businesses today than it has ever been. The global downturn and resulting business failures and associated Trade Credit Insurance claims have led to some of the smaller and less sophisticated Trade Credit Insurers frantically reducing cover and increasing premiums, however we work with specialist providers which through the use of unrivalled business information databases and extensive knowledge of this risk type are able to continue offering quality cover and speedy settlement of claims to our business clients at very reasonable premiums." read more....
Whilst defaults have always been a risk when invoicing business customers on credit terms, the risk as it has been in recent decades has in the global recession changed fundamentally for a number of reasons:
1. in the current economic climate, most businesses are experiencing reduced sales, turnover & profits compared to recent times, leading to in many cases extended settlement of bills and invoices to their suppliers and in some cases insolvency or administration of the business.
2. businesses with customers in the above circumstances suffer delays or total failure in the expected and crucial receipt of payments for goods & services provided which in turn adversely affects it's own cashflow and ability to pay it's own invoices due.
3. traditional 'bail-out' solutions such as overdrafts or other assistance from it's bankers have increasingly been reduced or withdrawn.
Michael Cooke, Business Risk Consultant at The Insurance Helper comments: "It's very frustrating to see an otherwise solvent and sound business suddenly dragged into financial difficulties or even into administration through no real fault of their own as a result of unpaid invoices, especially when it's as a result of the domino effect and they had used appropriate due diligence in setting credit limits for customers but those customers then default due to unforeseen external factors.
"Many businesses we work with feel protected through their use of initial and ongoing credit checking of customers and the setting of appropriate credit limits combined with the option of pursuing debtors through the courts for unpaid debts or the use of debt collection companies to resolve bad debts; however, it's a sad fact that with the withdrawal or reduction in short-term funding from banks to cover the funding gap while debts are recovered, some businesses are simply unable to survive long enough without the crucial cashflow in the business to actually recover the debt, and just go bust themselves before recovering the monies owed.
"It's because of these aspects that Trade Credit Insurance is more vital for businesses today than it has ever been. The global downturn and resulting business failures and associated Trade Credit Insurance claims have led to some of the smaller and less sophisticated Trade Credit Insurers frantically reducing cover and increasing premiums, however we work with specialist providers which through the use of unrivalled business information databases and extensive knowledge of this risk type are able to continue offering quality cover and speedy settlement of claims to our business clients at very reasonable premiums." read more....
Monday, 15 June 2009
UK Business Protection Gap Reaches £1.1TN
The UK's business protection gap has now reach the dizzy height of £1.1tn, reveals Legal & General following their recent research into this heavily over-exposed sector.
According to L&G, this gap includes a corporate debt exposure of just under £300bn, a shareholder protection shortfall of over £400bn and a key person protection gap of over £400bn.
As part of this survey Legal & General quizzed members of the British Chamber of Commerce. The survey results show that 44 per cent of business owners believe that their business would fold within 12 months of the death or critical illness of a key person. However, disturbingly only 4 per cent of business owners questioned had shareholder protection in place and 48 per cent had no formal agreement to establish what would happen in the event of the death of a business owner.
Of the businesses surveyed around half have corporate debt, but just 46 per cent of these businesses have any cover in place to enable the debt to be paid off if the business suffered the absence of a key person through death or critical illness.
The Insurance Helper's head of specialist protection Michael Cooke commented: “This data from L&G, whilst useful in clarifying the precise numbers involved; and L&G should be commended for clarifying them, again underlines the size and risks of the huge protection gap that we have been tirelessly closing with our business clients for a number of years now.
"It's disconcerting just how few businesses are prepared to survive potentially disastrous events such as the death or critical illness of a key person or business owner, which will always trigger fear uncertainty and doubt among the staff, suppliers and creditors of the business and it is usually the actions resulting from this that will cause a business to fail.
“It is the responsibility of the owners, partners or directors in businesses to protect the business from failure by ensuring that it's staff, it's suppliers and it's creditors remain confident that the business will survive such challenges through putting in place the appropriate insurances to provide adequate funding to meet the challenges that such events are likely to present.”
Business owners or directors wishing to discuss their exposure and how business protection can most cost effectively be utilised to protect their businesses can contact Michael Cooke on 0845 003 0065 or via www.theinsurancehelper.co.uk read more....
According to L&G, this gap includes a corporate debt exposure of just under £300bn, a shareholder protection shortfall of over £400bn and a key person protection gap of over £400bn.
As part of this survey Legal & General quizzed members of the British Chamber of Commerce. The survey results show that 44 per cent of business owners believe that their business would fold within 12 months of the death or critical illness of a key person. However, disturbingly only 4 per cent of business owners questioned had shareholder protection in place and 48 per cent had no formal agreement to establish what would happen in the event of the death of a business owner.
Of the businesses surveyed around half have corporate debt, but just 46 per cent of these businesses have any cover in place to enable the debt to be paid off if the business suffered the absence of a key person through death or critical illness.
The Insurance Helper's head of specialist protection Michael Cooke commented: “This data from L&G, whilst useful in clarifying the precise numbers involved; and L&G should be commended for clarifying them, again underlines the size and risks of the huge protection gap that we have been tirelessly closing with our business clients for a number of years now.
"It's disconcerting just how few businesses are prepared to survive potentially disastrous events such as the death or critical illness of a key person or business owner, which will always trigger fear uncertainty and doubt among the staff, suppliers and creditors of the business and it is usually the actions resulting from this that will cause a business to fail.
“It is the responsibility of the owners, partners or directors in businesses to protect the business from failure by ensuring that it's staff, it's suppliers and it's creditors remain confident that the business will survive such challenges through putting in place the appropriate insurances to provide adequate funding to meet the challenges that such events are likely to present.”
Business owners or directors wishing to discuss their exposure and how business protection can most cost effectively be utilised to protect their businesses can contact Michael Cooke on 0845 003 0065 or via www.theinsurancehelper.co.uk read more....
Tuesday, 9 June 2009
Hitachi Capital Closes UK Insurance Operations
According to information received today from a leading administrator of Hitachi Capital Insurance Europe Ltd's PPI business, Hitachi Capital has decided to close down its UK insurance operations and as a result will no longer be offering Payment Protection Insurance.
Hitachi Capital stopped accepting new business through it's direct to consumer operations in Q1 this year and subsequently also stopped new business via intermediary channels in Q2.
At the time of writing there is no information about this on Hitachi Capital's website, but we understand that all existing policyholders will be written to on the 12 month anniversary of their policy start date and given 60 days notice that their cover will cease. We have been assured that this will not affect any policyholders currently in claim or who might make a valid claim prior to their policy being cancelled.
Michael Cooke, Insurance Expert at The Insurance Helper, comments: "Over the past 6 months a number of PPI providers have either hiked their premiums, reduced the quality of their cover, pulled products from the market or withdrawn from it entirely; Hitachi Capital are just following suit in order to protect their margins from the deluge of claims that have already poured in to PPI schemes and which, if you look at the greater economic outlook, will probably get even worse.
Any clients who have a PPI policy with Hitachi Capital need to consider, with the trend of products either increasing in cost, decreasing in quality or disappearing altogether, should they wait until their policy is cancelled before finding a replacement and take whatever if anything is available at that time, or act now while there are still some decent products available to be sure that they are not left without a seat when the music stops?"
The Insurance Helper offers a range of PPI policies to suit all clients circumstances whether they have a mortgage or not and with cover of up to £2,000 per month irrespective of income, mortgage or rent amounts. You can discuss your needs and get a free no-obligation quote by filling in a secure online quote request form or by calling 0845 003 0065. read more....
Hitachi Capital stopped accepting new business through it's direct to consumer operations in Q1 this year and subsequently also stopped new business via intermediary channels in Q2.
At the time of writing there is no information about this on Hitachi Capital's website, but we understand that all existing policyholders will be written to on the 12 month anniversary of their policy start date and given 60 days notice that their cover will cease. We have been assured that this will not affect any policyholders currently in claim or who might make a valid claim prior to their policy being cancelled.
Michael Cooke, Insurance Expert at The Insurance Helper, comments: "Over the past 6 months a number of PPI providers have either hiked their premiums, reduced the quality of their cover, pulled products from the market or withdrawn from it entirely; Hitachi Capital are just following suit in order to protect their margins from the deluge of claims that have already poured in to PPI schemes and which, if you look at the greater economic outlook, will probably get even worse.
Any clients who have a PPI policy with Hitachi Capital need to consider, with the trend of products either increasing in cost, decreasing in quality or disappearing altogether, should they wait until their policy is cancelled before finding a replacement and take whatever if anything is available at that time, or act now while there are still some decent products available to be sure that they are not left without a seat when the music stops?"
The Insurance Helper offers a range of PPI policies to suit all clients circumstances whether they have a mortgage or not and with cover of up to £2,000 per month irrespective of income, mortgage or rent amounts. You can discuss your needs and get a free no-obligation quote by filling in a secure online quote request form or by calling 0845 003 0065. read more....
Friday, 5 June 2009
Rents dip 6.1% from last year, 0.4% down in April
Average rent levels fell 0.4% to £635 per month for Your Move’s tenant clients in April.
Rents declined 6.1% compared to one year ago, from £677. Tenants signing up to a lease in April 2009 are saving an average of £1,050 a year compared with those who took up a new lease at last year's peak of £723 in July.
According to the data available from Your Move, the cheapest areas for rental property are in the North West of England and Yorkshire & the Humber, where rents are averaging £467 and £494 per month respectively. By contrast, rents in the North East and East of England have increased by 10.6% and 11.3% respectively in April, to £608 and £729.
Your Move's Managing Director David Newnes commented: “Stock levels are still relatively high in many areas of the country, giving tenants more choice and compelling landlords to compete on price. But interest in the sales market is picking up and reluctant landlords who were forced by the chronic lack of buyers to let their properties in the short term are now beginning to put properties back on the market, so supply is very gradually dwindling.
“Tenants had a lot more leeway to negotiate on price six months ago when the sales market was worse.”
One of the possible reasons for this decline, which corresponds with Your Move's own 1.2% decline in new tenant registrations, is the recent new-found opportunity being grasped by many first-time buyers who for the first time an some months are able to afford to buy properties as a result of the downturn on house prices. Were it not for the ongoing limitations in mortgage availability & criteria which still keeps many would be first time buyers from getting on the housing ladder, it is likely that rents may have dropped further still. read more....
Rents declined 6.1% compared to one year ago, from £677. Tenants signing up to a lease in April 2009 are saving an average of £1,050 a year compared with those who took up a new lease at last year's peak of £723 in July.
According to the data available from Your Move, the cheapest areas for rental property are in the North West of England and Yorkshire & the Humber, where rents are averaging £467 and £494 per month respectively. By contrast, rents in the North East and East of England have increased by 10.6% and 11.3% respectively in April, to £608 and £729.
Your Move's Managing Director David Newnes commented: “Stock levels are still relatively high in many areas of the country, giving tenants more choice and compelling landlords to compete on price. But interest in the sales market is picking up and reluctant landlords who were forced by the chronic lack of buyers to let their properties in the short term are now beginning to put properties back on the market, so supply is very gradually dwindling.
“Tenants had a lot more leeway to negotiate on price six months ago when the sales market was worse.”
One of the possible reasons for this decline, which corresponds with Your Move's own 1.2% decline in new tenant registrations, is the recent new-found opportunity being grasped by many first-time buyers who for the first time an some months are able to afford to buy properties as a result of the downturn on house prices. Were it not for the ongoing limitations in mortgage availability & criteria which still keeps many would be first time buyers from getting on the housing ladder, it is likely that rents may have dropped further still. read more....
Thursday, 4 June 2009
L&G increase MPPI premiums by 20%
Legal and General has joined numerous other providers and increased its mortgage payment protection insurance premiums by around 20 per cent.
The increases, averaging 20 per cent, are part of L&G’s ongoing review and analysis of the MPPI market.
A L&G spokeswoman says: “It was a result of looking at the current risks with the changes in the current economic situation. We felt, unfortunately, that we had to increase our prices to reflect what else is happening in the market." The premium increase will vary depending on whether the policy includes accident, sickness and unemployment cover, and over what term the policy has been in force.
Michael Cooke, director at leading insurance broker The Insurance Helper comments: "The MPPI marketplace has seen unprecedented turmoil in recent months, and this is yet another example of the rate hikes we've witnessed."
It's not all doom & gloom though, as Mr Cooke continues: "Fortunately for our clients, we continue to have access to some great MPPI products at very good premium rates, with Unemployment cover from £2.50, Accident & Sickness from £1.26, or ASU from just £2.75."
MPPI quotes can be requested on 0845 003 0065 or via the website.
read more....
The increases, averaging 20 per cent, are part of L&G’s ongoing review and analysis of the MPPI market.
A L&G spokeswoman says: “It was a result of looking at the current risks with the changes in the current economic situation. We felt, unfortunately, that we had to increase our prices to reflect what else is happening in the market." The premium increase will vary depending on whether the policy includes accident, sickness and unemployment cover, and over what term the policy has been in force.
Michael Cooke, director at leading insurance broker The Insurance Helper comments: "The MPPI marketplace has seen unprecedented turmoil in recent months, and this is yet another example of the rate hikes we've witnessed."
It's not all doom & gloom though, as Mr Cooke continues: "Fortunately for our clients, we continue to have access to some great MPPI products at very good premium rates, with Unemployment cover from £2.50, Accident & Sickness from £1.26, or ASU from just £2.75."
MPPI quotes can be requested on 0845 003 0065 or via the website.
read more....
Bank of England Maintains Bank Rate at 0.5% and continues with £125 Billion Asset Purchase Programme
The Bank of England’s Monetary Policy Committee today voted to leave the Bank base Rate unchanged at 0.5%. This record low rate has remained unchanged since it was first reduced to this level in March, and is expected to remain for at least the rest of this year.
The Committee also voted to continue with its 'Quantiative Easing' programme of asset purchases totalling £125 billion financed by the issuance of central bank reserves.
The Committee expects that the announced programme will take another two months to complete. The scale of the programme will be kept under review.
The minutes of the meeting will be published at 9.30am on Wednesday 17 June.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A £75 billion programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The programme was increased to a total of £125 billion on 7 May 2009.
Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm
Purchases of almost £80 billion have been made under this facility since its use for monetary policy purposes was first announced after the Committee’s March meeting. read more....
The Committee also voted to continue with its 'Quantiative Easing' programme of asset purchases totalling £125 billion financed by the issuance of central bank reserves.
The Committee expects that the announced programme will take another two months to complete. The scale of the programme will be kept under review.
The minutes of the meeting will be published at 9.30am on Wednesday 17 June.
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A £75 billion programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The programme was increased to a total of £125 billion on 7 May 2009.
Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm
Purchases of almost £80 billion have been made under this facility since its use for monetary policy purposes was first announced after the Committee’s March meeting. read more....
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