The Analysis News & Opinions
Opinion
Firms are more eco- focused following Covid
Two thirds of Britain’s SME business leaders say they are now more environmentally conscious in the wake of the coronavirus pandemic, according to new research Our survey, jointly commissioned by Opus
Energy and Haven Power, part of Drax Group, found that SME bosses are having to make bolder decisions as they prepare for a brave new business world. In total, 66% admit that their own leadership requires a greater degree of bravery in decision making since the pandemic. The news comes as the UK begins to move
out of lockdown, and firms begin to identify processes for the new world. Although over half (59%) say the pandemic has increased the importance of sustainability, the need to stabilise their firm is holding them back from making bigger leaps in the sustainability. Three quarters (75%) of those questioned
feel they need to run their firm differently, with a focus on new ways of working, and almost half (45%) are looking to offer the option of working from home as they seek to provide employees with more flexibility. Dealing with COVID-19 and the climate
emergency is the greatest challenge the world has possibly ever faced. Business leaders recognise they need to be braver and more agile in their decision making to manage short-term priorities of stabilising their businesses and protecting employees. But they also realise that as we navigate out of lockdown, it is more important than ever to make sure sustainability is at the heart of their operations.
Paul Sheffield Managing director, Drax’s Customer’s Businesses
FCA HCST report
The FCA has published the findings of a review into relending by firms that offer high-cost credit. The review, which was completed prior
to the coronavirus pandemic, highlights concerns about poor practices by some firms and notes nearly half of consumers regretted borrowing more money. As firms in this sector begin to lend again,
the report sets out the FCA’s expectations on how they must treat consumers. The review found that levels of debt
increased as consumers took additional credit from high-cost lenders. Some consumers said they experienced financial difficulties as a result, including missing payments and prioritising repayment of debt over other expenses. In some cases, this led to anxiety and stress. Nearly half of consumers who
took part in research commissioned for the review said they regretted their decision to borrow more money, and for some products this rose to over 60%. The review raises several concerns about
firms’ conduct, including poor practice in the use of online accounts and apps to encourage consumers to borrow more, and marketing messages which emphasised the ease, convenience and benefits of taking more credit. Some firms suggested that consumers could
use additional borrowing, for example to take a holiday, and reinforced the message by including imagery of exotic locations. Some firms appeared to use ‘nudge’ techniques such as appealing to social norms by conveying a message that relending is common practice and normal behaviour.
Panel discusses company resilience
A group of leading experts have been brought together to discuss some of the key issues around how businesses can improve their resilience strategy during recession. HighRadius and CCRMagazine brought
together the online panel made up of Gail Armstrong, head of invoice to cash GB and IE at Siemens; Sue Chapple, chief executive of the CICM; Brian Lewis, former credit manage of Hanson; and Gwyn Roberts, VP, order to cash at HighRadius. It was chaired by Stephen Kiely, editor of CCRMagazine. They tackled important questions such
as ‘for 2020, how has the planned vs. actual changed with respect to credit risk, insolvencies, and tech-adoption?’, ‘credit teams have gained a lot of strategic importance to the CFOs office – how have
the credit managers adapted to the current scenario to meet the senior management’s expectations?’, ‘the crisis has called out the need for a resilient credit process, how should the credit teams re-evaluate the credit policy? What metrics should they be looking at while evaluating their customer portfolios?’ and ‘while transitioning to an agile credit model what potential challenges could you face?’ You can still listen in to the insights of the
panel session at
https://www.highradius.com/ resources/webinar/credit-managers-role-in- cfos-resilient-framework/
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www.CCRMagazine.com
August 2020
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