THE
MEDIA
The
new
buzzwords
being
spewed
out
by
all
and
sundry
are
'dot.com
failure'.
No
sooner
than
the
venture
capitalists
stop
pouring
truck
loads
of
cash
into
anything
looking
remotely
like
tomorrow's
sliced
bread
bin,
we
have
to
suffer
the
'I
told
you
so
club'
from
the
media
and
those
who
can't
tell
a
web
page
from
a
web
site.
Currently
we
have
Cutting
Edge
on
Channel
4
(UK
TV
channel)
informing
the
viewers
that
no
UK
Net
company
has
made
a
profit
and
show
us
why
this
is
so
through
following
a
number
of
web
start
ups
that
were
obviously
going
to
encounter
problems
from
day-one.
We
know
viewers
want
to
see
disasters
and
Channel
4
duly
oblige
with
their
version
of a
cross
section
of
UK
Net
businesses.
QUESTION
&
ANSWER:
Can
Pay,
Wont
Pay
-
Cant
Pay
We
have
two
interesting
cases
in
this
edition,
one
debtor
trying
to
contact
the
creditor,
and
the
other
debtor
attempting
to
avoid
the
creditor.
QUESTION
FROM
CASE
1
My
partner
and
myself
signed
a
computer
loan
with
a
shop
that
has
now
gone
bankrupt.
The
loan
for
was
£1.5K
and
I
put
the
loan
in
my
sole
name
as
my
partner
had
not
been
working
long
enough
to
get
a
loan
too
easily.
The
private
finance
side
of
this
loan
came
from
the
fact
that
we
could
not
lend
enough
from
the
loan
company
through
the
shop
to
buy
the
computer
so
the
shop
set
up a
'private
loan'
to
be
paid
by
standing
order
through
my
current
account.
The
only
documentation
we
have
is a
photocopy
of
the
agreement
signed
by
myself
and
my
partner
with
a
rubber
stamp
of
the
shop
detailing
the
dates
and
amount
of
the
loan.
Earlier
this
year
my
partner
was
injured
and
we
ran
into
financial
difficulty
and
I
wrote
to
the
shop
premises
detailing
our
problems
and
proposals
for
repayment,
complete
with
expenditure
breakdown.
I
telephoned
the
shop,
but
when
the
call
was
answered
the
store
at
the
back
of
the
original
shop
site
answered
and
found
my
letter
in
the
post
box
where
it
had
been
for
some
time.
They
duly
informed
me
that
the
shop
concerned
had
gone
bankrupt
some
time
ago.
I
have
since
written
to
the
owner
of
the
bankrupt
shop
via
his
bankers,
the
details
obtained
from
the
standing
order,
a
couple
of
months
ago
offering
payment
of
£40
per
month.
More
than
two
months
have
now
passed
and
still
no
reply.
The
letter
I
sent
was
from
both
my
partner
and
myself
and
gave
daytime
and
evening
telephone
numbers,
but
we
have
not
been
contacted.
Basically
we
are
still
struggling,
as
although
my
partner
has
just
started
work
having
been
off
since
February,
his
employment
is
only
part
time
and
I
had
to
spend
some
unpaid
time
off
work
nursing
my
partner
back
to
health.
What
I am
asking
is
do
we
need
to
legally
pay
this
'private
finance'
as
we
are
getting
no
response
at
all
from
the
shop
owner?
and
all
we
signed
was
a
hand
written
photo-copy
of a
private
agreement.
ANSWER
The
'Agreement'
is
at
the
centre
of
this
issue.
An
agreement
for
credit
must
be
one
that
is
regulated
by
the
Consumer
Credit
Act
(and
state
as
such
on
the
agreement)
where
the
finance
is
provided
to
an
individual,
and
not
an
incorporated
business.
Any
other
form
of
agreement
is
unenforceable
by a
court.
That
said,
there
could
be a
case
for
a
personal
arrangement
between
'friends',
but
not
something
that
would
probably
be
taken
to
court.
When
someone
says
that
they
went
bankrupt
they
mean
one
of
three
things
(I'll
assume
the
Agreement
is a
regulated
one):
a)
The
LIMITED
COMPANY
was
officially
liquidated
by
an
appointed
liquidator,
who
will
trawl
through
the
records
of
the
business
and
write
to
you
asking
for
payments
to
continue
to
be
paid
to
them.
b)
The
garage
owner
was
a
SOLE
TRADER
and
as
the
proprietor,
he/she
was
officially
declared
bankrupt
and
the
administrator
of
the
bankruptcy
will
will
trawl
through
the
records
of
the
business
and
write
to
you
asking
for
payments
to
continue
to
be
paid
to
them.
This
passage
is
relevant
to
both
a)
and
b)
above:
They
cannot
demand
all
of
the
balance
unless
your
'agreement'
allowed
for
this
if
you
defaulted
on
payment.
If
all
of
the
amount
should
have
been
re-paid
by
now
(i.e.
all
the
balance
is
also
all
arrears)
the
full
amount
can
be
demanded,
and
court
action
taken.
c)
The
garage
was
EITHER
a
limited
company,
or
run
by a
sole
trader,
and
he/she
has
closed
the
doors
and
walked
away:
Sole
Trader
or
Limited
Company
will
give
you
a
bit
more
on
this
subject.
The
effect
is
that
both
creditor
and
debtor
are
dropped
(although
still
due).
I
would
have
thought
in
this
scenario
that
if
he/she
did
walk
away
that
they
would
contact
you
and
let
you
know
where
to
send
the
'private
loan'.
I
would
say
that
for
one
reason
or
another
the
debt
is
payable,
but
there
is
plenty
of
scope
for
a
payment
arrangement
should
anyone
contact
you.
The
debt
can
be
called
void
six-years
after
your
letter
to
the
bank,
as
this
was
your
(fair)
effort
to
contact
the
creditor.
It
is
very
unlikely
that
this
debt
would
be
on
your
credit
record.
COMMENT
In
such
cases
it
is
always
wise
to
send
a
letter
to
the
last
known
address
of
the
creditor
(or
bank
in
this
case
as
no
address
was
known)
and
preferably
recorded
delivery
for
proof
of
posting.
More
than
this
you
cannot
do.
QUESTION
FROM
CASE
2
I
need
advice
about
a
debt
I
owe
to a
book
club
which
is
now
being
dealt
with
by a
debt
recovery
agency.
I
live
in
shared
flats
and
never
received
the
books
I
ordered
and
certainly
never
signed
for
any
thing.
What
powers
do
they
have
to
collect
the
debt?
Are
they
for
instance
permitted
to
enter
my
property?
Are
they
likely
to
take
me
to
court?
How
will
this
affect
credit
ratings
etc.
FIRST
ANSWER
If
we
assume
that
all
books
were
dispatched
but
not
received
by
you,
and
that
you
did
NOT
order
any
further
books
after
the
first
delivery
did
not
arrive,
the
following
would
be a
way
to
deal
with
the
debt.
You
should
immediately
call
the
creditor
(the
book
supplier)
and
inform
them
that
you
have
not
received
any
books
and
explain
why...
...you
ordered
books
by
mail
order
and
those
books
EITHER
failed
to
arrive
or
were
intercepted
by
one
or
another
of
the
flats
residents...
...further,
that
in
your
opinion
the
books
should
have
been
delivered
direct
to
you
and
not
left
in
an
open
environment,
and
that
a
'recorded
delivery'
was
what
you
expected
to
receive...
...inform
the
creditor
that
you
will
not
pay
for
something
that
you
did
not
receive
and
you
will
defend
any
legal
action.
Further,
the
creditor
should
refrain
from
debt
recovery
action
and
if
they
so
choose,
commence
legal
action...
...back
up
your
telephone
call
with
a
recorded
letter
of
your
own:
quote
your
telephone
call,
the
date,
time,
and
contact
name...
...at
all
times
reinforce
that
you
will
not
pay
for
something
you
did
not
receive...
...a
debt
collector
cannot
enter
your
home,
or
take
any
of
your
belongings
(under
any
circumstances).
The
creditor
has
to
take
you
to
court
and
win
a
judgment
(county
court
judgment)
before
enforcing
the
judgment
with
a
bailiff
(who
does
have
certain
rights
when
enforcing
court
orders)...
...if
the
creditor
succeeded
with
a
judgment
against
you,
your
credit
file
will
show
the
debt
for
six-years.
Your
credit
file
probably
shows
this
mail
order
book
credit
agreement,
and
you
must
insist
that
the
creditor
takes
action
to
remove
this
entry.
FOLLOW
UP
QUESTION
1)I
did
find
an
opened
box
from
the
company,
but
this
was
at
the
bottom
of
the
stairwell,
and
only
contained
2 of
the
6
books
I
ordered.
This
was
in
September,
and
I
have
not
contacted
them
as I
have
been
very
busy,
and
I
didn't
think
I
should
have
to
pay.
I
didn't
receive
an
invoice
for
some
time,
but
finally
received
on
for
£20,
which
was
the
offer
price.
I
get
most
of
my
post
sent
to
another
address,
as I
have
had
some
go
missing
previously,
but
am
worried
that
I
may
not
have
received
all
their
correspondence,
and
that
I
haven't
responded
to
what
they
sent
me.
How
am I
affected
in
this
situation?
2)The
matter
has
now
been
transferred
to a
debt
recovery
company,
and
they
are
demanding
the
full
normal
cost
price
of
the
books
about
£120,
would
I
have
to
pay
this?
I
have
only
received
one
letter
so
far,
but
it
does
threaten
or
hint
at
legal
action
if I
don't
pay.
Would
they
take
me
to
court
over
such
a
small
sum,
and
if
so
what
would
be
the
time
scales
involved?
3)
What
would
they
have
to
do
to
bring
a
court
case
against
me?
How
much
time
would
I
have
to
respond
to
this,
and
what
extra
costs
would
I be
liable
for
if I
wanted
to
settle
out
of
court,
or
if
the
court
found
against
me?
4)
Do
debt
recovery
companies
have
to
inform
you
before
making
a
personal
visit?
If
not
what
is
the
legal
situation
if
they
call
around?
What
happens
if I
just
ignore
it?
What
is
their
likely
course
of
action
to
be
in
the
next
6
weeks?
AGAIN
I
WOULD
BE
GRATEFUL
FOR
A
PROMPT
REPLY
AS
THIS
MATTER
IS
URGENT.
FOLLOW
UP
ANSWER
We
are
unable
to
go
into
your
case
at
such
a
level.
You
are
looking
for
specific
information,
and
to
do
this
requires
questions
(from
us)
and
answers
(by
you).
However,
we
will
say
that
you
should
call
the
creditor
(as
we
advised
in
the
earlier
message)
and
then
you
can
stop
'second
guessing'
them:
if
the
creditor
insists
you
talk
to
the
debt
company,
then
do
so.
Make
a
deal
to
pay
it
off
over
a
few
months:
you
obviously
received
the
goods,
and
that
is a
strong
case
on
the
part
of
the
creditor.
COMMENT
In
the
debt
recovery
industry
this
is
known
as a
'can
pay,
won't
pay'.
There
is
nothing
in
the
questions
to
suggest
that
this
debtor
cannot
pay
the
debt:
just
that
they
want
to
look
at
every
possible
angle
not
to
pay:
the
admission
in
the
second
question
that
the
books
WERE
delivered
bares
this
out.
Further,
although
this
person
writes
"AGAIN
I
WOULD
BE
GRATEFUL
FOR
A
PROMPT
REPLY
AS
THIS
MATTER
IS
URGENT",
they
have
never
contacted
the
creditor!
Without
taking
the
'moral
high
ground'
this
is
the
type
of
debtor
that
causes
'real'
hardship
cases
to
be
'tarred
with
the
same
brush'.
1.
TYPES
OF
BUSINESS
FINANCE
Business
finance
comes
in
many
guises
and
from
many
sources.
The
days
of
getting
a
loan
from
your
bank
or
going
without
are
over.
Most
realistic
businesses
can
access
finance:
sometimes
a
specialist
is
needed
to
put
the
package
together
so
as
to
'sell'
the
finance
application
to
the
provider.
We
list
the
main
options
below:
Leasing
When
a
business
needs
to
purchase
an
asset
(goods)
between
a
fax
machine
and
an
aircraft
but
has
little
capital
(cash)
or
wants
to
keep
its
cash
for
other
reasons,
leasing
is
the
preferred
method.
Vat
is
paid
and
reclaimed
by
the
lessor
(supplier)
and
rental
payments
are
tax
deductible
as
an
expense
for
the
lessee
(you).
A
lease
is
fixed
for
a
term
of
between
two
and
seven
years
and
will
involve
a
deposit
of
three
payments+.
Title
to
the
goods
remain
with
the
leasing
company,
and
it
is
they
who
benefit
from
any
residual
value
at
the
end
of
the
lease
term.
If
you
want
to
maintain
using
the
asset
after
the
agreed
period,
the
leasing
company
may
accept
an
annual
payment
equal
to
one
months
rental
as a
token
payment.
Maintaining
full
payments
after
the
initial
period,
and
having
to
give
notice
after
the
initial
period
is
'sharp'
business
practice.
Lease
Purchase
As
'Leasing'
(above)
but
with
the
option
to
purchase
the
asset
at
the
end
of
the
lease
period.
The
payment
may
be a
token
payment
of,
say,
£50
for
a
three-year-old
computer,
to a
£10,000
'balloon
payment'
for
a
car.
Any
type
of
business
asset
can
be
lease
purchased,
for
example
cars,
commercial
vehicles,
industrial
plant
and
machinery
and
computers.
Low
initial
rental
and
repayment
periods
of
between
two
and
seven
years
help
cash
flow
and
liquidity.
Repayments
are
fixed
at
the
outset.
Capital
allowances
can
be
claimed
by
your
business
and
you
own
the
asset
at
the
end
of
the
agreement.
Contract
Hire
(Purchase)
This
is
used
for
acquiring
new
and
reliable
vehicles
for
two
to
three
years,
and
can
be
with
or
without
maintenance
cover.
Again,
all
payments
are
tax
deductible.
Title
to
the
vehicle
can
be
bought
at
the
end
of
the
hire
period
for
a
significant
'balloon'
payment.
Buy
and
Lease
Back
A
business
with
fixed
assets
that
they
own
(plant,
machinery,
equipment,
vehicles)
and
has
a
financial
worth
can
be
re
financed
to
raise
capital
(cash)
for
use
in
the
business.
In
theory,
the
asset
worth
should
match
the
required
finance.
Factoring
\
Invoice
Discounting
As a
funding
option
available
to
companies
that
provide
a
product
or
service
on
credit
terms
to
their
customers.
The
purpose
of
the
finance
is
to
give
you
access
to
immediate
funds,
without
having
to
wait
for
the
customer
to
pay
the
invoice.
This
is
particularly
beneficial
to
those
of
you
who
are
in a
growth
period
and
committing
more
working
capital
to
customer
credit
\
debtors.
The
company
lending
you
the
money
will
agree
that
for
all
invoices
raised
you
will
have
available
80-85%
of
the
value
of
the
invoice
at
you
disposal.
You
do
not
have
to
take
available
amounts.
The
cost
structure
is
similar
to
that
of
an
overdraft:
you
pay
a
service
fee
and
an
agreed
percentage
above
bank
base
rate,
calculated
on
the
amount
of
funding
you
require
and
the
length
of
time
your
customer
takes
to
pay
the
invoice.
The
main
difference
between
'factoring'
and
'invoice
discounting'
is
that
factoring
includes
the
factor
(the
lender)
providing
credit
management
(revenue
collection),
and
the
factors
involvement
is
known
to
your
customers.
If
you
need
help
raising
business
finance
go
to:
Finance
Application
____________________________________________________________________________
UNSECURED
LOANS
Are
you
a UK
home
owner
or
tenant
with
a
less
than
perfect
credit
history?
We
have
loans
to
suit
every
situation
at
Ukloan24
____________________________________________________________________________
2.
SMALL
BUSINESS
TOO
BUSY
WITH
RED
TAPE
TO
HELP
ITS
SELF?
It
seems
that
the
USA
does
not
have
the
sole
right
to
mess
up
public
duties.
A
recent
survey,
for
the
Department
for
Education
&
Employment
(DfEE),
about
work-home
balance
has
been
conducted
without
the
input
of
70%
of
the
UK's
businesses:
those
businesses
with
less
than
five
employees.
The
survey
about
flexible
working
rights
and
the
balance
of
work
and
home-life
in
the
private
sector
was
heralded
as a
major
source
of
statistical
information.
But,
as
922,000
of
the
1.3m
UK
businesses
(representing
70%
of
all
businesses)
did
not
take
part,
the
findings,
if
used,
will
affect
those
who
suffer
more
than
any
other
sector
with
home/work
balance:
businesses
with
less
than
five
employees.
When
questioned
by
the
Chamber
of
Commerce
about
the
omission,
the
DfEE
said
that
they
did
not
want
to
put
an
un
necessary
burden
on
small
business
by
having
them
deal
with
endless
questionnaires:
UNBELIEVABLE
if
it
were
not
true!
Any
policy
resulting
from
the
current
survey
WILL
burden
every
small
business!
DO
IT
AGAIN,
PROPERLY!
And
this
time
don't
do
us
any
favours
by
leaving
us
out:
2.1m
people
have
a
big
say.
And
we
say
don't
cut
costs
or
corners
as
there
is
little
resource
left
in
any
small
business
to
deal
with
bad
policy!
The
figures.
Small
Business
has:
2.1m
employees
in
922,000
businesses
(excluding
sole
traders
which
makes
the
situation
even
worse).
Medium
and
Large
Business
has:
16.5million
employees
in
378,000
businesses
(but
working
conditions
are
far
better
in
the
this
group).
____________________________________________________________________________
COMPANY
REPORTS
First
class
reports,
county
court
judgments,
turnover,
cash
flow,
directors
and
lots
more
information
to
help
you
make
the
right
decisions.
Don't
t
