Goodbye to cheque guarantee card

Just a bit of news that you may or may not be aware of:

From 1st July 2011, the Cheque Guarantee scheme is being withdrawn by Banks. 

This may not affect traders as much as it would a few years ago, probably due to the advent of new electronic payment methods such as Paypal, and customers willingness to use chip and pin cards.

This will apply, even if the expiry date on the card is after the 1st July 2011.  As most cards are multi purpose and used in cashpoints a number will still be in circulation.

Traders will need to decide if they wish to continue to accepting cheques.  However, as cheques are more widely used by personal service type industries, (they usually have additional client information) tracing a client for payment becomes less of a problem should they need recourse to debt recovery action.

Wiltshire Open For Business

Well, what have we been up to lately ?

We were out and about in Devizes recently.

On 10th and 11th May we attended the Wiltshire Open For Business event held at  The Corn Exchange in Devizes.

This was a popular event, and gave us an opportunity to meet local business owners, and find out their needs and offer solutions. 

 A number of workshops and seminars were also running to pool ideas and give information in specific areas.

When a main supplier ceases trading.

This becomes an issue when you have paid in advance for goods and services, or they are specialist sole suppliers.

Well what can you do ?
Business owners who are sole traders or in partnerships are still liable after trading has ceased.   Unless the owners become personally bankrupt you can challenge them through the courts, if discussions fail.

 Limited Companies

 In Administration
The administrator decides the future of the company, whether to rescue, sell on or put the company into liquidation.  Putting a company into administration usually incurs expensive administration fees in addition to the company’s existing debts.  These fees along with banks and other secured debts are generally paid out first.

  • You can approach the administrator to request a refund of  your deposit, but they are not obliged to pay if there is not enough money to repay you.
  • Where unfinished services are being provided, you can discuss this with the administrator, but he is under no obligation to get the work completed.
  • If goods were put by, you can request their delivery, or enter discussions with the administrator to buy them.
  • Companies sold to new owners can be approached over transactions with the old company, but they can refuse to help.

Liquidation
The liquidator will use the company’s assets to clear debts and money owed to secured creditors. He will ensure that the company is closed down in way which meets legislative requirements. 

  • Any stock will be sold to clear debts (even if you have already paid for some of it). You may be able to negotiate the purchase of your goods at a ‘knocked down’ price with the liquidator.
  • The liquidator is not obliged to finished uncompleted work, so the only thing left would be to go through the courts once the secured debts have been cleared.
  • Larger creditors may consider buying the assets of the company via a pre-pack arrangement.

Welcome to Blomfields

A big welcome from all of the Blomfields Team.
This has been our first live week with the new website and new look.   We hope you like it, we do.

We intend to write a weekly blog on topical subjects. If there is a subject you would like us to cover please let us know. Complex topics will be dealt with more extensively either in our newsletter or on a personal basis where applicable.