ICSM Print Industry Insolvency News: ICSM's Ian Carrotte answers questions from trade organisation PICON on how to avoid bad debts
By Harry Mottram: The print industry is notorious for bad debts and liquidations – in part due to the shrinking sector of newspapers and magazines as consumers turn to online versions. Since the late 1980s circulations have slowly reduced in size putting a squeeze on cash flow and advertising revenue which in turn has seen printing outfits going to the wall, seeking mergers or downsizing in scale. The last 40 years has also seen technology have an impact whether its pre-press, digital v off-set litho or huge cuts in staffing levels as the main print unions saw a collapse in power and membership. Brochures, leaflets and direct mail have seen similar drops in production in those four decades while packaging, labels and wide format printing for trade show backdrops, vehicle wraps and retail point-of-sale displays have boomed.
Firms unable to service their debt, generate new business or simply balance the books can cause headaches for suppliers chasing up payment. Ian Carrotte of ICSM was responding to some questions from the printing trade group PICON about being paid by struggling firms or reluctant payers. Simon Jamieson asked: “What are the warning signs to look out for assessing risk of default?”
The ICSM CEO said: “If there’s one piece of advice, I’d give to anyone in business, it is to be aware. Keep abreast of the business media news and local information online or in the press – it can give you an early warning of firms in trouble. Is your client using other suppliers to spread their debt and are they paying on time or making excuses for late payment? Are they planning to sell up or cutting staff numbers? All signs that all is not well.”
PICON is the leading industry trade association representing manufacturers and suppliers to the Printing, Papermaking and Paper Converting sectors giving business advice to their members, from small SMEs to large multi-nationals, with concerns about payment by clients a big issue for many. Simon asked ICSM about how things have changed in credit control since it’s been a few years since one of the print industries big beasts North Star collapsed back in 2008 leaving a trail of debts.
Ian said: “I remember that – and since then there’s been a few more. Even then in the early noughties being paid was still unchanged for decades. It’s been a few years since I’ve heard the excuse, ‘the cheque’s in the post.’ Things may have changed with internet banking, but clients still use the same old excuses: the financial director is on holiday; the next payment run is next month; we haven’t got your invoice, or we have no record of the work. Banks will still hold onto your payment for up to four days under the BACS system – no different when they had to ‘clear cheques’ in the old days but at least you no longer have to rely on the postal service.”
“Interesting,” replied Simon. “But how can organisations such as ICSM help clients make credit decisions with confidence.”
“ICSM helps members of PICON to make credit decisions with confidence by comparing the payment records of a wide range of business sectors,” said Ian in reply. “We get wind of companies in trouble long before administrators are called in through our system of credit intelligence. Our members are often the first to flag up if a firm is in trouble – our members are collectively each other’s watch dogs. With free credit reports, access to local and national credit data - and our history of flagging up unreliable companies and directors ICSM gives you peace of mind.”
Bettine Pellant of PICON said that Picon works to lobby against adverse legislation from Government, protecting the integrity of the industry and making it simpler for suppliers and manufacturers to operate. The organisation dates to 1918 and has gone through a number of changes over the years but still remains true to its main purpose of championing the printing trade and its allied industries in the face of a changing economic landscape.
For more on PICON visit https://picon.com/
Struggling with Late Payers or Bad Debt?
ICSM offers expert credit management and debt recovery solutions that help businesses like yours get paid fast.
• Free online suite of legal letters and final demands
• Specialist team ready to recover unpaid invoices
• Polite, professional mediation to preserve customer relationships
• Hardline legal options when needed
• Late payment interest, compensation, and fees recovered under the Late Payment of Commercial Debts Regulations 2002
Why Act Early?
Passing overdue accounts to ICSM early increases your chances of full recovery. Our multi-channel approach—calls, emails, and letters—ensures the right message reaches the right people at the right time.
We understand that non-payment often stems from miscommunication. That’s why we focus on resolving issues while protecting your reputation.
• Email the CEO: Ian.carrotte@icsmcredit.com and request to recieve the ICSM newsletter which lists firms that are in trouble
• Call: 01454 322234
• www.icsmcredit.com
• Express Park, Bridgwater, Somerset, UK
Follow us on Facebook at (20+) Facebook and LinkedIn