Davenports – Helping You Through The Economic Crisis

As the economic crisis starts to bite, often the first to feel it are the small businesses. However, there are many steps that can be taken in order to reduce the effects and to ensure that you come out the other end stronger and ready to take advantage of recovery. Davenports have a range of offerings that are designed to re-enforce all of the accepted advice on business survival. Here are our top tips and how we will address them for you.

Control expenditure

Every business has scope for reducing costs. You should be carrying out an audit of all of your expenditure and a good place to start is with your true costs of paper processing. Using Davenports all processing is electronic ensuring that postage and printing costs are reduced whilst also reducing your carbon footprint at the same time.

Collect debts with enthusiasm

Many small businesses find that payments to them are late and that valuable management time is taken up with chasing debts. Davenports can manage all of your debt problems leaving you free to develop new markets and position yourself for recovery.

Focus marketing

Too many businesses cut their marketing costs when times are hard. The surviving companies continue to market but focus their work so as to get the maximum return on their marketing investment. Disappearing from the radar is a sure fire way of people thinking you have gone. Davenports can assist you in keeping a strong presence in the marketplace through their web design services.

Maintain and improve quality

In difficult times the customer has to feel valued. You need to ensure that you are offering a level of service that reflects this. Paying your bills on time and processing in a professional manner all helps to convince people that you are a reputable business. Davenports accountancy services linked to debt management can ensure that you provide a quality service whilst also ensuring that you do not run into cashflow problems.

Don’t be complacent

You may feel that you have everything under control and that you have all the suppliers that you need. However, if you are finding things tight so may many of your suppliers. By choosing Davenports you not only have a supplier with a long track record of quality service delivery, you also minimise your dependence on suppliers by using one supplier for a number of services. Sensible businesses always have an alternative in these difficult times.

Be honest about your business

Burying your head in the sand about the true state of your business will do you no good and will probably lead to things getting worse. Davenports understand that it is difficult in today’s business world to be perfect at everything. We are realistic enough to accept the shortcomings of our clients and we are happy to work with them to resolve them. One of our favourite phrases with our clients is that we offer to ‘unmuddle things for them. So let us help you to face up to the challenges within your business.

Position yourself for recovery

In order to be best placed for recovery you need time to innovate and develop new markets. This is impossible to do if you spend all of your waking day fire-fighting and trying to survive to the next dawn. Davenports service offerings are designed to leave you free to be the innovator that you started out as before the economic situation started to bite.

We are not someone that wants to tell you what to do. We are an organisation that exists to work in partnership with you, releasing your potential to return to being a business owner, not a business slave. All of our offerings are designed to tackle the real problems facing you and businesses like you. They aim to ensure that we will be working together in the good times as well as the present ones.

Take responsibility for your own destiny

In difficult times it is easy to do nothing and blame everything from the Government to the problems with mortgages on the other side of the Atlantic. The trouble with that approach is that failure becomes a self fulfilling prophesy. Those businesses that use this time to strengthen the way they do business, position themselves for new markets and see the present situation as an opportunity for the future will be the ones to benefit. Davenports exists to help those that want to look for a way forward rather than those that want to adopt a blame philosophy.

Remember:

There are three types of people in this world –

• Those that make things happen
• Those that watch things happen
• Those that say ‘what the hell happened’.

If you want to be someone that makes things happen, please contact us.

Un-Muddling and Fire-Fighting

Are your accounts in a state? Wish you could just make them disappear? Try our fire-fighting and un-muddling service! We’ll take the load off your hands. We take your paperwork in any state - even if it’s stuffed into bin bags!

Visit our fire-fighting and un-muddling page.

How customers of Icelandic banks can access their funds

Do you bank in Iceland?

Business Link, BERR, and HM Treasury have worked together to answer your questions

Important Definitions
The arrangements are different for depositors who are eligible for compensation from the Financial Services Compensation Scheme (”retail” depositors) and those who are not, so it is important that you understand which description applies to you.

The Financial Servcies Compensation Scheme (FSCS) covers most private individuals and small businesses and some charities according to rules set by the Financial Services Authority (FSA).

The general criteria from the FSCS is that to be defined as a smaller company two of the following need to apply to you:

• your turnover should not exceed £6.5 million
• your balance sheet total should not be more than £3.26 million
• your total number of employees should be less than 50

The criteria for eligibility are set out in more detail in Chapter 4 of the Financial Services Authority (FSA) Compensation Sourcebook, which is part of the FSA Handbook. You can find the FSA Compensation Sourcebook on the FSA website. You can also find information regarding your criteria on the FSCS website or by phone   020 7892 7300  .

If you meet the FSA’s criteria you are eligible for compensation from the FSCS and are referred to as “retail” depositors below.

Questions and Answers

• Will I be able to access funds?
• I have deposits of over £50,000 with one of the banks, have we lost our money?
• How and when can I access my money?
• Exactly what transactions are allowed and what aren’t?
• One of my customers claims to be affected by the crises and is using this as an excuse not to pay me. How do I check? Can I still invoke my statutory late payment rights?
• Who do I speak to if I have questions not addressed by the answers above or I want more detail?

1. Will I be able to access funds?

The Chancellor has put in place arrangements to ensure that all retail depositors in the Icelandic banks of Landsbanki (including their “Icesave” products), Heritable, and Kaupthing Singer and Friedlander (including their “Edge products”) will receive their money in full.

The following information applies to retail depositors only.

Heritable

Deposits in Heritable have been transferred to ING Direct. These products include the two, three, four, and five year fixed-rate bonds, easy access, online saver, direct saver, 50 plus saver, and the 60, 90 and 120-day notice accounts. You can continue to access your account in the same way as you did previously.

The FSCS understands that a small number of eligible Heritable depositor accounts have not transferred to ING Direct. If this applies to you, you will receive your money in full by applying to the FSCS. The FSCS will be sending these account holders an application form to claim compensation shortly.

Find more details on the FSCS website or by phoning   0207 892 7300  .

Kaupthing Singer & Friedlander

All deposits in Kaupthing under the “Edge” brand have been transferred to ING Direct. You can continue to access your account in the same way as you did previously.

Find more details on the ING Direct website.

A small number of eligible Kauthping depositor accounts have not been transferred to ING Direct. If this applies to you, you will receive your money in full by applying to the FSCS.

Find more information on the FSCS website or by phoning   0207 892 7300  .

Icesave

All retail depositors in Icesave will receive their money in full. The Government is working with the Icelandic Authorities to clarify the position of Icesave and the Financial Services Compensation Scheme are putting in place practical arrangements to allow depositors to receive their money as quickly as possible.

Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.

The following information applies to all other depositors.

Heritable

Heritable, the UK subsidiary of Landsbanki, is in administration in the UK. Any creditor should contact Heritable on   020 7493 6621  .

Kaupthing Singer & Friedlander

The UK subsidiary of Kaupthing also in administration in the UK and creditors should contact the call centre there on   08451 31 32 33   or   08451 31 32 34  .

Landsbanki and Glitner

Both Landsbanki and Glitner are in receivership in Iceland. The Government is working with the Icelandic authorities to establish what this means for UK creditors.

We will update this site as soon as further information is available.

2. I have deposits of over £50,000 with one of the banks, have we lost our money?

The following information applies to retail depositors only.

If you are an FSCS eligible depositor (as defined above) in the Icelandic banks of Landsbanki (including their “Icesave” products), Heritable, and Kaupthing Singer and Friedlander (including their “Edge products”) you will receive your money in full.

The following information applies to all other depositors.

Heritable

Heritable, the UK subsidiary of Landsbanki is in administration in the UK. Any creditor should contact Heritable on   020 7493 6621  .

Kaupthing Singer & Friedlander

The UK subsidiary of Kaupthing also in administration in the UK and creditors should contact the call centre there on   08451 31 32 33   or   08451 31 32 34  .

Landsbanki and Glitner

Both Landsbanki and Glitner are in receivership in Iceland. The Government is working with the Icelandic authorities to establish what this means for UK creditors.

We will update this site as soon as further information is available.

3. How and when can I access my money?

Heritable

If your funds have been transferred to ING Direct you can continue to access your account in the same way as you did previously.

If you are an FSCS eligible depositor but your account has not been transferred to ING Direct you will receive your money in full by applying to the Financial Services Compensation Scheme (FSCS). The FSCS will be sending these account holders an application form to claim compensation shortly.

Find further details on the FSCS website or by phoning   0207 892 7300  .

If you are not FSCS eligible, the UK subsidiary of Landsbanki is in administration in the UK. Any creditor should contact Heritable on   020 7493 6621  .

Kaupthing Singer & Friedlander

All deposits in Kaupthing under the “Edge” brand have been transferred to ING Direct. You can continue to access your account in the same way as you did previously.

Find further details on the ING Direct website.

A small number of eligible Kauthping depositor accounts have not been transferred to ING Direct. If this applies to you, you will receive your money in full by applying to the Financial Services Compensation Scheme (FSCS).

Find further details on the FSCS website or by phoning   0207 892 7300  .

If you are not FSCS eligible, The UK subsidiary of Kaupthing is also in administration in the UK and creditors should contact the call centre there on   08451 31 32 33   or   08451 31 32 34  .

Icesave

All retail depositors in Icesave will receive their money in full. The Government is working with the Icelandic Authorities to clarify the position of Icesave and the Financial Services Compensation Scheme are putting in place practical arrangements to allow depositors to receive their money as quickly as possible.

Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.

Landsbanki and Glitner

Both Landsbanki and Glitner are in receivership in Iceland. The Government is working with the Icelandic authorities to establish what this means for UK creditors.

We will update this site as soon as further information is available.

4. Exactly what transactions are allowed and what aren’t?

If your funds are with Landsbanki the following applies to you.

On 8 October 2008, the UK Government froze funds owned, held or controlled by the Icelandic bank Landsbanki, including those owned, held or controlled in relation to that bank by the relevant Icelandic Authorities or the Government of Iceland. This was to help ensure that UK wholesale depositors of Landsbanki are treated fairly.

The Treasury has issued a general licence providing for certain exemptions to the asset freeze in order to ensure that the asset freeze does not adversely impact on businesses and other customers of the bank.

Enquiries can also be directed to the Asset Freezing Unit at HM Treasury:
e-mail: assetfreezingunit@hm-treasury.gsi.gov.uk, fax: 020 7451 7677,
telephone:   020 7270 5664   or   020 7270 5454  .

The legal obligations arising from the freezing order are set out in the following documents:

(1) The Landsbank Freezing Order 2008. Find the Landsbank Freezing order on the Office of Public Sector Information website.

(2) Licences issued by HM Treasury to provide for authorised exemptions to the asset freeze. Download information on licences to provide for authorised exemptions to the asset freeze from the HM Treasury website.

5. One of my customers claims to be affected by the crises and is using this as an excuse not to pay me. How do I check? Can I still invoke my statutory late payment rights?

Ask your customer to give you some evidence that they are affected - they should be able to show you a statement from one of the banks listed above with their own company name on it. You will then be able to use the information above to work out how they are likely to be affected or whether it is just an excuse for delaying payment. This does not affect your statutory late payment rights.
6. Who do I speak to if I have questions not addressed by the answers above or I want more detail?

• ING Direct - find details of how transfers will be managed on the ING Direct website.
• Financial Services Compensations Scheme - find further detail on the FSCS website or by phoning   020 7892 7300  .
• If you are a creditor and have any queries with regards to your accounts with Hertiable you should contact Heritable on   020 7493 6621  .
• If you are a creditor and have any queries with regards to your accounts with Kaupthing you should contact the call centre there on   08451 31 32 33   or   08451 31 32 34  .
• Any businesses that have banking issues related to the assets freeze that are not addressed by the current general licence should contact the Asset Freezing Unit at HM Treasury using the following email address: assetfreezingunit@hm-treasury.gov.uk.

Helping SMEs through the Credit Crunch

The hardest job for small and medium sized enterprises (SMEs), particularly in the current economic climate, is managing their cash flow.

Davenports now offer an invoicing service to all their clients, allowing their clients to concentrate on bringing in the money, whilst Davenports focus on getting the invoices out.

The service is not as expensive as you might first have thought, for a small flat fee per invoice Davenports will raise the invoice and either post it out or email it direct to the client’s customer.  The fee also includes the invoice being entered directly into the client’s accounts, preventing the need for double entry and associated bookkeeping fees.

For more about Davenports services or how they can assist you during the credit crunch why not contact us today.