With any luck if you are in a pension plan either personally or through your company, if it has been running long enough you might just fulfill your ambitions of having a comfortable retirement, but that will not be the case for the majority.

As a race us Brits have long looked at the property we own as something to be passed on to our children when we die, but with recent events more people are looking at using their property to subsidise their own life after retirement from work.

Safe Home Income Plans (SHIP) is the UK trade body for Equity Release product providers and they have been lobbying and campaigning for more acceptance of their products in the financial market place for some time following adverse publicity towards the product in its early form.

Things have certainly moved on and with the current market unlikely to fulfill our pension dreams, equity release does offer an alternative form of funding our retirement to avoid this period in our lives becoming a complete nightmare.

In the third quarter of 2010, SHIP have reported a 4% growth in sales from their providers, the largest quarter on quarter growth since 2008.

Andrea Rozario, Director General of SHIP said:

“The equity release market has returned to growth with the largest quarter on quarter increase since mid-2008.   The financial services industry has had a tough couple of years and this move clearly illustrates increased customer demand.    It also shows that the work undertaken by SHIP – and its members – to increase the wider acceptance of this product range is having an impact.

“It is interesting to note the swing from lump sum mortgages being the most popular product to drawdown dominating the market.  This reflects the change in the type and number of providers as well as consumers attitudes to borrowing.  With the current economic turmoil and resulting consumer uncertainty, many consumers favour drawdown mortgages which allow them to gradually access the equity in their homes.  The sales of reversion mortgages have also increased.

“This quarter’s figures provide us with a strong platform for growth in the remainder of 2010 and a firm foundation on which to expand the market in 2011.   In addition, the cuts announced in the recent spending review will hit all sectors of the population and may lead to more people seriously considering equity release.”

Anyone that has ever been curious enough to follow the links enclosed on such messages will probably be as cynical as I am. The web-pages that you will be sent to will show screen shots of fat cheques from Google AdSense and similar who pay out thousands of pounds a day/month to the said author.

Of course anyone who has this information wouldn’t possibly be expected to pass his expertise on without some sort of reward, this will be an upfront one off payment.

Now I accept that the foundation of the internet is all about sharing information, but if you or I had a sure fire way of making money would we want to share our knowledge and wealth with people that you do not even know.

The answer is obviously NO, and neither do these guys. They make their money from selling you or I their product which I would cynically suggest entails us selling that same information to others,rather like pyramid sales.

There will always be those amongst us who are tempted by the ‘get rich quick’ methods to be found on the internet, but for someone looking to make a regular income from the internet what are the options?

One option is to write paid product reviews for a certain website, this is particularly interesting if you have a favourite manufacturer or supplier that you often purchase goods from and the income can offset some of the cost of the products that you would buy anyway.

It is also possible to get manufacturers to send free sample products, which you get to keep as a reward for writing a review.

Another source of income is through writing articles that can be posted to blogs and the like, these would need to be original content and well researched and written. It would be best to contact blogs or websites beforehand to see that it is worthwhile pursuing.

A more realistic income might be achieved by selling unwanted items on eBay or similar selling sites. If you have good resources there is a good possibility of making an income from buying and selling on these sites.

While none of these suggestions will make you rich, if done on a frequent basis they are the sort of things that can earn you some income via the internet.

Subsequent to the failure of holiday providers such as Destinations for Africa, Monster Travel, Goldtrail, Sun4U and Kiss Flights,  Charles Duncombe says that “Over 250,000 people will probably be affected by travel companies going bust in this winter.”

Worrying times for anyone who prefers to take their holidays outside the traditional summer season, but perhaps not that surprising as Duncombe points out;

“It is in the summer season when the travel sector is at its busiest and should have the most money. Travel companies should not go bust in the summer. The reality that many have means that, regrettably, there are a number of travel companies who will probably be using summer’s temporary positive cash flow to keep them going. As the summer fades and the bookings start to dry up so will the cash flow and more travel companies are likely to suffer a similar fate. It could easily be another 5 companies with 50,000 passengers each.”

It is fair to say that from the thousands of travel companies in the UK only a handful are likely to go bust so the chances are slim, but Holidays Please offer the following advice to help make the right choice when choosing a holiday;

1) Make sure that your holiday is ATOL protected so if the tour operator or airline go bust you will get your money back (or get repatriated free of charge if you are left stranded)

2) If you have booked with a travel agent then make sure they are ABTA protected.

3) If you pay on a credit card rather than debit card sometimes your credit card company will be able to get your money back.

4) Take out high end travel insurance. It may not cover you for the whole cost of the holiday but it can cover you for supplementary costs (such as hotel stays etc..) if there are delays on flights.

5) Look for any signs of financial troubles with the company that you are looking to book with. Search on Google for terms such as the “[name of holiday company] redundancies” and “[name of holiday company] financial loss”

6) Look for holiday companies that sell “long haul” holidays. These are holidays that are to far away destinations outside Europe. These companies are likely to have more constant sales throughout the year rather than the feast and famine that can destroy short haul travel companies.

7) Do not book with companies that are a lot cheaper than other companies. If there is a holiday company that is radically cheaper than prices advertised in elsewhere then they are likely to be trading on wafer thin margins. This means they won’t have a cushion for major events like ash clouds and airline strikes. It is better to pay £50 more for your holiday and enjoy it than lose the whole cost of the holiday.

Happy Holidays!

Despite often clearly spelling out their payment terms SMEs are having to wait an average of 41 days over the agreed payment terms from many of their customers.

Recent research shows that in 37% of cases customers are stretching payment terms by up to three months and at any one time £24billion is owed to SMEs.

The increase in VAT will only worsen the situation warns the Law Society and urges small business owners to guard against the problem of late payment.

The Society says that not enough businesses are aware of the protections available to them which safeguard against cash flow blockages. Solicitors will be able to help SMEs take advantage of these.

Law Society President Robert Heslett says:
“Average commercial debts caused by late payments are high in the UK, and for SMEs a lack of cash flow can be crippling. With credit less available to those businesses from banks, late payments have a far more serious consequence for SMEs.

Considering the amount of red tape SMEs and start-ups are faced with, it is no surprise that seeking protection against late payment from customers does not come top of the to-do list. However, it could be the difference between the business surviving or not, especially in the uncertain economic climate.

A carefully worded contract drawn up by a solicitor between a business and their commercial customers can include clear terms on late payments, including penalty clauses and strict time frames for payment. Such terms can act as an effective deterrent for late payment and encourage timely payment for services, thus avoiding these terms coming into play.”

The Law Society says that contracts between businesses which include late payment clauses need to become a common feature of the SME market. The European Union is currently looking at updating a directive aimed at tackling late payments such is the impact on the SME sector across Europe as a whole.

Robert Heslett adds: “Many smaller businesses perhaps felt the recent budget did not do enough to tackle cash flow problems head on, and although the EU is looking at it, the safest bet is to protect against cash flow blockage between the customer and the business with a solid, solicitor-drafted contract.”

Avoiding court
The Law Society says that should SMEs and start-ups hit problems with customers failing to meet payment deadlines, court is not the only next-step option. Alternative Dispute Resolution and mediation are alternatives for SMEs.

Law Society President Robert Heslett says: “There is a presumption that going to court is the only course of action when late payments cannot be resolved. However, many solicitors specialise in ADR and mediation, which can prove an effective way of solving the problems for SMEs and other businesses. ADR and well-drafted contracts can be effective in avoiding the last option, going court.”

If your company is already up and running or is in its earliest stages, the bank has a selection of business accounts that could be ideal for your needs. If you fall into the former category but are unhappy with the service you are currently getting, you may find switching banks is the right way to go. In these cases Lloyds TSB’s business banking department will do all it can to make the transition as easy as possible. Those in the latter stage however may be looking for all the help they can get and it is here they may also find they’re well catered for.

In order to help manage cashflow and resources in an effective way, Lloyds TSB has produced a selection of guides for both the experienced and novice entrepreneur. The bank has also produced a charter for small businesses which is designed to underline exactly what type of support can be offered across pledges that could provide help in the toughest of economic times.

The selection of guides also includes details on how to plan for these conditions and how changes in the market can impact your venture. Information on how to encourage customers to pay up on time is also featured, as is advice on how to monitor money flows between you, your customers, suppliers and employees. A selection of downloads, podcasts and webinars that support some of these issues are also available via the Lloyds TSB business banking website, meaning you have direct access to tips from a selection of experts once you are onboard.

The bank also has a partnership with Sage, one of the biggest suppliers of business management software in the UK, which provides users various free tools. In addition to this there is a 90-day trial version of Sage Start-up that will show you how to get to grips with some of the key issues that affect new businesses. Information available from the Institute of Credit Management is also available that covers subjects like knowing your customer, invoicing, credit insurance and treating suppliers fairly.

All of the above, in conjunction with access to a dedicated relationship manager that will help you make the most of your new business account, could mean that Lloyds TSB could be a great partner to have in getting your project where you want it to be.

Restrictions put in place by the financial institutions to make the business of borrowing money may have been eased slightly, but too late in many cases to help the many businesses that demanded help a year or more ago.

The government’s may have saved the high street banks, but in doing so left many business of all sizes having to fend for themselves. The results of this are still clear to see with news of job losses around the whole of Europe almost on a daily basis.

The fact is that none of us are safe from the constant talk of job losses and redundancies and many have already adjusted to living on a more frugal budget as they do not know if they will be next.

There are many amongst us who use our credit cards on a daily basis and have built up a balance that is becoming a struggle to deal with. In the past it was easy to transfer outstanding balances to another card offering zero interest for a given period, giving some reprieve to the borrower who could make plans to clear the debt without incurring further charges.

These zero percent offerings are almost a thing of the past in today’s climate, but there are still some low APR credit card offers around. The Republic of Ireland’s third largest credit card provider MBNA  for instance are currently offering zero per cent on transfers to their Platinum Card for a period of the first ten months.

The Platinum card is one of a range of credit cards that are acceptable in over 29 million retail outlets and 1.2 million ATMs around the world, making it one of the best credit card deals in Ireland right now.

This is of course all perfectly legal in the UK and is not only a huge benefit to the company directors of such underhand businesses, but is also incredibly lucrative to liquidation and administration advisers, who will leave little for creditors to pick over.

The FPB give their description of ‘phoenix companies’ as;

“A phoenix company exists where the assets of one limited company facing liquidation are moved to another business. Often, some or all of the directors remain and the new business frequently operates in the same area as its predecessor.”

Most business owners will have experience of ’serial’ phoenix company operators in their own locality and will be very wary of dealing with them, particularly on credit terms.

The problem is that when these companies go bust they normally owe a substantial amount of money which creditors have absolutely no chance of getting. This has a knock on effect down the chain of supply, with everyone suffering except the crooked directors.

MP for Portsmouth South, Mike Hancock said:

“The Better Payment Practice Campaign found that a quarter of companies have fallen foul of ‘phoenix companies.’  Obviously, smaller businesses in particular need to get all the money that is owed to them and even one default can make the difference between an otherwise well-run company going bust or continuing in business.”

The actual figure from the Insolvency Service recorded 35,242 people in England and Wales were declared insolvent, a 28% increase on the same period last year.

It represents the highest figure since records began in 1960 and there appears to be no let up as figures will only rise as unemployment continues to increase.

Anthony Cork, director at accountants Wilkins Kennedy, said;

“Those who have already suffered job losses are just beginning to be represented in these figures but there are many more behind them who are still battling to weather the storm.  Historically unemployment has continued to rise even as the economy begins to recover, and this means that personal insolvencies can only soar even further. Things are likely to become very bloody indeed.”

Some good news is that company insolvencies fell by almost 10% in the period, with 1,300 businesses suffering compulsory liquidation, with a further 1,578 in the first stages of the winding up process.

With the current state of the economy it would not be a surprise to see the figures reach even higher levels in the new year as many businesses and individuals over stretch themselves in the Christmas period.

traditional pawnbroker sign

The UK’s biggest pawnbroker, H&T which has over 120 branches across the country has said the business is trading well ahead of expectations as cash strapped Britons continue to trade in their valuables for cash.

H&T have opened 56 new outlets in shopping centres across the UK over the last year, recognising the growing recession fuelled surge in demand for their services. The company are planning a further twelve shops in the coming months.

The pawnbroker chain deals almost exclusively in gold and diamond set jewellery and say they have ‘benefited considerably’ since June 2009 with higher Gold purchasing volumes.

H&T which started out in 1897 as Harvey & Thompson with a shop in London’s Vauxhall Bridge Road, says that the current trend may not be sustainable and has therefore taken premises on short term leasing.

The number of pawn broker outlets in the UK has risen by 25% to over a 1,000 in the last five years.

The deal will see Tesco selling fifteen of its stores and two of its distribution centres to a 50-50 joint venture company owned by Tesco and the unnamed pension fund.

All properties will be leased back to the joint venture on 30-year RPI-linked leases, with an average initial yield of 5.2% for the stores and 6.3% for the distribution centres.

The deal is  the latest phase in the firms ongoing programme to release value from its property portfolio – a programme that was started in 2006 and now with a transaction value of £3 billion. It aims to keep 70% of its properties on a freehold basis, a level that is maintained through new store openings.