P&A tackle Irish late payment problems
Major European manufacturers of homeware goods are turning to P&A Receivable Services Plc to tackle the growing problem of debt recovery in Ireland.
P&A, one of the UK’s top credit management companies, has set up a specialist debt recovery service in Ireland to help household names such as Moulinex and Tefal tackle an increasing problem of unpaid bills.
A culture of late payment in Ireland combined with the impact of the recession and a different legal system has left suppliers and manufacturers forced to write off debts.
In the first five months of 2010 there were 10,160 court judgements against Irish businesses – a 61 per cent increase from the first five months of 2009. Business credit publication Stubbs Gazette reported that the value of these judgements had risen by 500 per cent, from €133,770,000 to €655,000,000 for the same period.
Recent research by Experian showed that on average, in 2009, Irish businesses settled their bills 25 days beyond credit terms – five days slower than companies in Northern Ireland.
Senior credit and finance managers from major European manufacturers of homeware goods took their concerns about bad debt in the Irish retail sector to P&A’s specialist credit forum for the industry.
Now P&A are offering producers and wholesalers a new service based in Dublin to help them recover money and assets anywhere in the Republic of Ireland. UK companies can access the new service –believed to be the first of its type for a specific trade sector - through P&A’s Sheffield offices.
Divisional director at P&A Receivables Plc, Laurie Beagle, chairs the forum for the British Home Enhancement Trade Association (BHETA), said: “Our decision to operate a specialist service in Ireland is born out of a business need. The impact of the recession has hit Irish retailers hard with many going out of business. Forum members were feeling frustrated because the country’s different legal system makes it hard to collect debts.”
A leading manufacturers of household products, and members of the BHETA credit forum, welcomes P&A Receivables’ initiative.
Debbie Carroll, credit manager for Groupe SEB UK Ltd, manufacturer of top household brands such as Tefal, Rowenta and Moulinex, said: “To sue in Ireland is costly and the legal system is different and can be slow. We are finding that it can be a struggle to be paid on time.
“P&A’s local presence will allow us to have a collective, cost effective approach to tackling late payment.”
Laurie Beagle is the founder and chair of several international credit forums run by P&A which bring together credit and senior managers from corporates in diverse industry sectors.
P&A Receivable Services Plc is part of Sheffield-based The P&A Group, one of the largest independent insolvency and debt collection firms in the country, acting for multinational PLCs and financial institutions as well as accountants, solicitors and business advisors across the UK and Europe.