Patisserie Valerie has recently been hitting headlines as the business has possible irregularities from potentially fraudulent books. The company essentially has a £40 million black hole in it’s finances, and urgently needs a buyer to save the brand as well as 3,000 employees.
Unfortunately, the future doesn’t look too bright with the company’s secretary Chris Marsh having recently been arrested, suspended and released on bail. And there’s also the current investigation being led by the Serious Fraud Office.
But even if one puts the cake chain and its woes to one side for a moment, what about all of the small suppliers at risk?
It is estimated that the food service industry comes in about fifth on the list of industries that suffer most from late payments. And there are warning signals from other industries too: just this week, an unprecedented 34 small energy companies missed a recent deadline to pay their dues under the renewables obligation scheme, which is used to subsidise wind and solar farms.
They collectively owe £103 million, plus interest. And many are believed to be charging unsustainably low prices. Ofgem, the sector regulator, has written to industry heads to raise its concern over these late payments and staff have even been quoted to say the issue could trigger a “bloodbath” among small suppliers.
So back to the restaurant and catering industry. With big companies such as Patisserie Valerie struggling financially, it’s almost guaranteed that there will be knock on effects for smaller suppliers further along the chain.
But when sizeable companies are at risk of protracted default or insolvency, there is little smaller players who punch above their weight can do, to ensure that any work they’ve already delivered will definitely be paid.
That’s where InvoiceInsure comes in. For just a small monthly fee, our trade credit insurance allows you to protect your finances from possible folds. If, in the worst scenario, one of your client’s does go bust or faces protracted default, you have the peace of mind in knowing that you will get any money you are owed, and that our debt collectors will be taking care of the process for you.
It’s easy for larger businesses to see their suppliers as just a number, but we know that you aren’t just that. Your company has a name, and livelihoods attached to it. Late payments aren’t a victimless crime, but they are a preventable one. There’s no point running a business unless you get paid, but sadly it seems that ensuring a client pays on time appears to be getting harder.
Taking out invoice insurance is a simple step to a safer and more secure business. It helps to safeguard your cashflow too. Most importantly, it gives you piece of mind that your money is being protected. Don’t delay and put your business at risk. Take out invoice insurance today.
We’d be delighted if you get an invoice insurance quote for by clicking the link below – it’s a simple process and won’t take long.
Giulia Macgarr