General Business Files

The UK registry at Companies House provides a useful service for limited companies. In addition to incorporating and dissolving companies they also maintain the national register. This involves the recording and storing of data relating to all UK incorporated companies and LLP’s. Historically most records were updated by the submission of manual forms. This would include the submission of company accounts, change of address forms and forms appointing new company officers as well as many other documents. Whilst this system has served a purpose for many years it is far from secure as signatures are not checked and changes are implemented without further checks.

Identity fraud has increased over recent years, which meant that the previous system at Companies House was open to serious abuse. Companies have found their records have been updated without their knowledge. Individuals can masquerade as company officers, open bank accounts and enter into fraudulent contacts. It has been too easy for too long for businesses to be deceived and for companies to be hijacked

However, Companies House has now introduced some basic protective measures that limited companies in the UK can adopt. Firstly they have introduced ‘WebFiling’. This is an electronic online filing system. It allows companies to make changes to their company details online. Instead of posting forms to Companies House changes can now be made in minutes online. To increase security there are two simple security procedures used. A security ‘authentication code’ is issued for each company and users require a security code to access the software.

The second security improvement is that users can sign up for Companies House ‘PROOF’ service. This means that they will no longer accept manual paper forms to make changes to your company records. This stops the opportunist from simply completing forms and posting them to Companies House. Any paper forms will require further authorisation from existing officers.

Whilst these two points should reduce identity theft companies can also ‘monitor’ their companies filing. This does not literally require daily monitoring of Companies House. For a small fee of £0.50 per annum Companies House will inform you by email every time a document if filed at Companies House for your company. This includes manual and electronic filing. This means that you can double check all changes made to your company without leaving your desk.

These three simple to implement measures should help protect the future identity of your limited company. Not only will you have piece of mind but you will save your company time and money by filing online.

Incoming search terms :

Are your clients taking up to 60 days to pay their invoices? This is a very common situation and a significant cause of stress to many business owners. Unfortunately, having a profitable business does not necessarily mean that you have a reliable cash flow. Quite the opposite, many times a business may have great profits and a very unreliable cash flow.

How can this be? Simple. Your clients are paying you in 60 days, but you need to pay employees every week, rent and suppliers. Although the numbers may work in the long term, in the short term you are left with very little cash. This is unless you have a lot of money in the bank to cover the deficits.

But, what do you do if you are new, growing or just don’t have a lot of funds in the bank? Get a business loan? Unlikely. Business loans are hard to get. A better option would be to use invoice discounting. Invoice discounting is a form of financing that is not offered by a bank – it’s offered by a factoring company.

Invoice discounting, as it name implies, involves selling your invoices for immediate cash, at a small discount. Its value proposition is very simple. Are you willing discount between 1.5% to 6% from your invoices to get paid now? Consider that many business owners offer a 2% discount to businesses that pay within 10 days. So, invoice discounting offers a similar proposition.

Of course, invoice discounting (or invoice factoring as it is also called) is not for every business. It works best when your profit margins are above 15% and if you use the accelerated funds to pay for business expenses or to pursue new business opportunities.

Factoring companies always purchase your invoices in two installments. The first installment, referred to as the advance, covers up to 85% of the invoice. The remaining 15% (less the discount) is rebated once the customer actually pays the invoice.

Invoice discounting is easy to obtain and can be set up in days. The biggest qualification requirement is to have invoices from reliable clients. So, if you are sitting on a whole bunch of slow paying invoices, be sure to consider invoice discounting.