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10 | Diversification
extremely pleased to be able to help the SME A: Credit card and loan reclaim businesses
market and bring a facility like this to the who argue that certain contracts are non- Case study 3:
attention of small businesses and mortgages enforceable. Debt management specialists’
brokers alike, at a time when access to tradi- overseas properties; where companies guar- Tax Assistance
tional lines of finance are closed or severely antee rental incomes.
restricted. The funding compliments the full Gary Starr, director of the ICE Group,
range of commercial finance currently offered Q: Why did you choose network marketing? explains how his company moved into giving
to our clients. A: We already try to save money on our help on tax and gives further information
We have already helped small businesses clients’ mortgages so this was a natural about its ICE Tax Assistance service
across the country with this product and they extension to further reduce outgoings for
have complimented us on how easy and flexi- customers; it was not so much network The hazy days of summer 2007 seem like a
ble it is and how they can now carry on with marketing that we were interested in. As lifetime ago. Property prices in the UK were at
their day-to-day business without the constant much as it was the opportunity to save cus- an all time high, car sales were through the
worry of finding the next rent or mortgage tomers money at the same time as making roof and UK businesses were blissfully
payment. We have also seen a influx of money, the fact that Euphony operated in unaware of the storm that was brewing across
enquires from brokers, IFAs and accountants as a MLM, was just an added bonus. the Atlantic - a storm that would spread across
up and down the country with clients who the world and lead to the collapse of the bank-
have been turned down by their bank, and are Q: How does it work? ing system, unemployment, recession and the
only to please to help. A: Whilst I was never interested in building a worst economic climate since the Great
team, my main focus was that we would Depression.
build customer numbers. However we nat- So here we are in March 2009. Whilst the
urally discuss what we are doing with our Credit Crunch may not be the first headline
friends and colleagues, and just over 3 that you see on the news or the front page
Case study 2:
months down the line, we have 70 consult- headline on every newspaper that you read
ants in our organisation, with the services anymore, it is certainly something that is at
Network marketing
to match. the forefront of every business in the UK.
Whether you are a Sole Trader, Partnership
Q: What do you have to do? or Limited Company, it is probably fair to say
Simon Wright, a mortgage adviser hit hard A: We just do an assessment of customers’ that you will have had a better trading year in
by the recession, has turned to network mar- utility bills in the same way we review their 2007 than in 2008. With many businesses
keting to supplement his income. He has mortgages, if we can save them money struggling for survival, those that have man-
been using his network of contacts to sell (which is usually the case) they switch over aged to weather through the storm so far will
Euphony utility and telephone services and to Euphony. More and more clients are face an unwelcome problem of having to pay
shares his experiences with us willing to do this even if it means a saving their tax liabilities at a time when cash flow
of £5.00 per month, we feel this is a sign of has never been so important.
Q: Who are you? the times. Such is the magnitude of the problem that
A: My name is Simon Wright; I have a BSC the government have launched the Business
(Hons) in Construction management and Q: How much do you get in? Payment Support Scheme (BPSS) to assist
qualified with FPC exams in 1997. I have A: The revenue which has been produced has businesses. The BPSS offers businesses in tem-
spent 2 years as a trainee; 5 years as a pen- been invaluable to the business, as this is porary financial difficulty the opportunity to
sions and investment Adviser; and a further very much a part time business, the returns pay corporation tax, income tax, national
six years as an area sales manager managing are great. As the effort required to get paid insurance contributions, PAYE, VAT and other
a team of mortgage consultants and IFAs. for new Euphony customers is quite low, we taxes owed to HM Revenue & Customs
Then I set up my own mortgage business in feel that the hourly rate is more than worth (HMRC) to a timetable that they can afford
2005. it, I would estimate this at £35 per hour, and without surcharges on payments involved.
which equates to a normal mortgage fee, As of 16th January 2009, the BPSS scheme
Q: Why did you feel you had to look around but without the hassle of all the paperwork, has seen over 20,000 businesses defer over
for something else to do? or the 6 weeks delay before getting paid. £350 million of tax. Whilst these may seem
A: During the end of 2007 we saw like-for-like like impressive figures, the BPSS scheme has
business drop by 5 per cent; during 2008 Q: Anything else you feel would be of interest barely scratched the surface. There are well
business levels were down a further 35 per to mortgage advisers? over 5 million businesses in the UK and yet
cent, which meant that we were effectively A: For most mortgage advisers, we sell the the numbers that have contacted the BPSS
going backwards. I saw the Euphony oppor- mortgage and have to wait two to three scheme is a small percentage.
tunity as a result of an introduction by a yearsbefore we can approach the customer This is the same for the amount of tax
contact I do business with. Clearly there for more business. With Euphony, we owed. Previously reported there was reported
were various people cold calling the office can contact all our client base right away to have been billions in unpaid tax owed to
for us to try new areas of business but none as there are no restrictions on utilities HMRC. Although this is likely grown further
of these appealed to us. After three meet- in the same way as mortgages. From this year, there is still a lot of tax that hasn’t
ings with a Euphony consultant (Mark a customer service point of view, this yet been deferred.
Joyner) we decided that this was the oppor- means we are staying in touch with The BPSS Scheme supports tax debts that
tunity we were looking for. them - and they love the phone call as have accrued since it’s inception in November
it is about saving them money. We have 2008. The scheme only applies to those who
Q: What other areas had you thought about found this to be a win, win situation all have notified HMRC prior to the debts falling
moving into? round. due. With the scheme not taking into account
March 2009 Commercial finance Introducer www.mortgageintroducer.com
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