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When was the last time you looked at your supply contracts and the terms and conditions contained within them?
Now may be a good time to have a review in the context of Section 233B into Insolvency Act 1986 (“233B”) as the exemption for small entities expires on 30 September 2020. (233B (15)).
233B relates to The Corporate Insolvency and Governance Act 2020 (“CIGA”) which came into force 26 June 2020.
Specifically, 233B is to do with Insolvency and when a company you supply enters a formal insolvency process.
This means that as a supplier, “upon the commencement of a relevant insolvency procedure, you are prevented from terminating for any reason, if the right to terminate arose, but was not utilised, before the customer entered into the relevant insolvency procedure”.
In addition, “upon the commencement of a relevant insolvency procedure, a supplier is prohibited from making the continued supply of goods and services conditional upon the payment of outstanding charges relating to a supply made before the commencement of such insolvency procedure”.
Now more than ever, it is important to keep an eye on who you supply. From a credit control and debt collection perspective, our team can help you manage your collections, saving you time and ensuring collections are managed and maintained, alleviating pressure on your cash flow.
In terms of your role as a supplier, our team can also provide advice for creditors of an insolvency procedure and if necessary, we can put you in touch with specialist solicitors and insolvency practitioners, using our extensive network of trusted and experienced contacts.
If you want to speak to someone about debtor collections, insolvency advice both for creditors or directors or cash flow assistance to include finance brokerage, do not hesitate to get in touch with the team.
My Debt Recovery, My Insolvency & My Invoice
*Source: http://constructionblog.practicallaw.com/supplier-beware-the-ciga-2020/
