Running a small business is hard enough at the best of times - but made doubly so if customers don't pay on time.

Making the news this week, the government minister responsible for small firms says 30 days should become the national norm. The issue is currently under the spotlight following the debacle surrounding the collapse of Carillion plc earlier this year, where it was revealed that the contractor was taking up to four months to pay its suppliers!

In an interview on Wednesday this week, the Small Business Minister, Andrew Griffiths said the government must “make it unacceptable for big business to finance their cash flow from small business.” They should fall in line with what the state does, which is pay suppliers within an “ethical” 30 days he said.

“Small businesses, if that money was in their bank account, they’d be investing it, they’d be growing their businesses, they’d be taking on new technology,” Andrew Griffiths was quoted. Apparently a consultation on the issue is “imminent.”

Reading around on the subject, a recent survey conducted by Dun & Bradstreet and the Small Business Research Centre uncovered pretty shocking statistics on how late payments are impacting UK SMEs. Of the 500 managers and small business owners that the survey spoke to, 58% said late payments are putting their companies at risk of outright failure.

According to this survey, SME respondents were owed an average of £64,000 in late payments, with 11% owed between £100,000 and £250,000 in unpaid receipts at any given time - which are quite mind-boggling figures.

Small businesses are particularly vulnerable to cash flow concerns, with 26% citing timely payments as the most important factor to the financial success of their companies. This is understandable, as it can be challenging for SMEs to secure short-term loans from banks and other traditional lending institutions.

One particularly disturbing statistic which stood out to me from this survey is that 15% of small business owners admitted to dipping into their personal savings to cover gaps due to late payments from customers. Whilst it's understandable why some would feel the need to go to these lengths to protect their company, it's surely only ever going to be a short-term solution and once which certainly isn't sustainable over any length of time.

What then, can small businesses do to protect themselves against the dangers inherent in late payments?

Ed Thorne, the UKI Managing Director of Dun & Bradstreet who conducted this recent survey says there are several courses of action a SME can take to mitigate themselves against the risks. "First," he says, "businesses should undertake due diligence when onboarding any new customers." He explains, "Even if a business is hard-pressed to turn down new clients, the insights that come from company credit reports can help keep the number of high- and low-risk customers in balance."

It is also suggested that small business owners can explore alternative lending arrangements with financial institutions. "As the issue of late payments gains urgency, more lenders are willing to extend limited funds to compensate for delays," Ed Thorne said. "Single-invoice financing can also provide a back-up option to aid cash flow."

Finally, it is advised that SMEs should actively monitor the financial health of their existing customers. Understandably where credit checks take place, it is normally only for new customers. The real risk it seems though, is when goods and services are provided on credit terms to customers already known to a small business. Business credit scores, ratings and payment behaviour are always of course liable to change. "Tracking the ongoing performance of existing customers, and acting when this behaviour changes therefore, can be the difference between being paid first and paid last – and make a real difference to a business’ financial health," warns Ed Thorne.

Is this problem of late payments something which you recognise within your business? Has it led to difficulties within the dealership? If so, what steps have you taken to combat the problem?

Please feel free to leave a comment below to share your experiences with our community of dealer readers. It would be interesting to hear what the independent dealer network’s take is on this subject.

We will look to publish a selection of your comments in a future issue of Service Dealer.

Reesink Turfcare has announced the retirement of Nigel Lovatt with "great sadness and genuine gratitude" for the role he has played in shaping the company over the 17 years he was with the business.

Nigel himself says he never anticipated the trajectory of his career as he “left school at 16 with a box full of spanners bought in the school holidays" to start his career as an apprentice agricultural engineer.

Nigel joined the company when it was Lely UK and had already built himself a reputation in the industry, in particular, in the region of Lincolnshire and Nottinghamshire working for a competitor manufacturer. Taking responsibility for the area as retail sales manager, Nigel grew the golf business from almost nothing to £1million in his first couple of years. A promotion to regional manager followed suit.

With that came new responsibilities, and he started working with the Reesink dealer network and retail partners from the north east to the north west. His role expanded to take in sports venues as well as golf, and when Reesink introduced the grounds range to the UK, that too.

Jeff Anguige, national sales manager at Reesink Turfcare, says, “Nigel has been instrumental in not only bringing in substantial business, but retaining it. He has a natural ability for sales and a natural aptitude with people. That is a winning combination, demonstrated by the fact that he grew the business exponentially in his time here, along with the fact that he was there at the beginning of our relationship with some of our biggest customers.” These customers include the England Golf Union, Royal Liverpool Golf Club, Manchester City Football Club, Manchester United Football Club, Liverpool Football Club and many councils.

“I have enjoyed every minute working with my dealers and customers and helping in their quest for the best quality grounds and courses. I have always considered it to be an absolute privilege to work with Toro, too," says Nigel. "My engineering background means I’ve been able to work closely with my customers to understand their needs and what will suit them best, providing advice and backing it up with a solution from one of the best manufacturers there is.”

Fresh from his recent success in Australia winning a Team Silver medal in the clay pigeon shooting World Championships, Nigel's retirement will heavily involve clay pigeon shooting and his role representing England Veterans. But, his presence will remain in the turfcare industry for some time yet.

With his apprenticeship in agricultural engineering Nigel has contributed to the components and mechanics of many of the Toro machines on the market today. He helped secure a third partnership with the England Golf Union and Woodhall Spa before he left and he leaves with many memories too, in particular, his role helping Royal Liverpool Golf Club in its preparation for The Open.

Jeff concludes by saying: “It’s always sad when someone leaves who has been a part of the company for as long as Nigel has, but when the person is as good at his job as Nigel has been, and as universally well-liked as he is, it’s safe to say he’ll be much missed.”

The first issue of Service Dealer Weekly Update Ireland was sent on Monday this week - and was met with excellent open rates.

The inaugural issue, specifically targeted for independent specialist dealers in the Republic, was opened by around 43% of recipients - which for a business-to-business newsletter are great numbers.

Service Dealer owner Duncan Murray-Clarke said, "We were very pleased at the reception given to Service Dealer in Ireland by our colleagues there.

"The UK version averages just over a 50% open rate (which is very high) - so I think that this is a great start for the Irish edition. It certainly looks like the concept has gone down fairly positively, proving as we suspected, there is the demand there for a title dedicated to the independent dealer sector.

"The most read story in the first issue was about how demand for mulchers and robot mowers is growing in Ireland - so it seems like groundscare matters will prove popular with the readership."

If you would like to receive Service Dealer Weekly Update Ireland every Monday afternoon click here and tick the Ireland box.

Kubota UK has announced the appointment of Martin Tyler as its field service manager.

This is a new management role created within the organisation to provide more support to its independent dealer network and end-user customers.

Martin will take full responsibility and control of all Kubota UK field service activities. This will include field product quality reporting, Kubota’s Customer Satisfaction Survey, Dealer Service Excellence, the development of service business activities and the resolution of any customer or dealer warranty enquiries.

Keith Miller, service & training manager at Kubota UK, said, “At Kubota, we are constantly investing in new and innovative ways in which we can enhance the service we provide to both our dealer network and end-user customers. The creation of this new role will provide a more focused approach to Kubota UK’s service provision.”

Bringing more than 20 years industry experience to his new role, Martin joined Kubota in 2014 as a regional service manager for the East of England, before being promoted to service supervisor for agricultural tractors. Previous to this, Martin spent the majority of his career at a New Holland dealer. He started as an apprentice and quickly rose through the ranks of senior service technician, warranty administrator and finally to service manager.

Martin commented, “Our dealer network plays a pivotal role in sustaining our position as a first-class machinery provider, so ensuring we can provide them the highest levels of service and support is paramount.

“The creation of this new role will enable Kubota to enhance its close working relationships with its dealers. It will ensure they have dedicated support and access to all the necessary tools and advice needed, to enhance their business operations. This in turn will lead to better service levels provided to our end-user customers.”

ScotGrass is set to return to Crichton Royal Farm at Dumfries in 2019 by the kind permission of SRUC.

The event, which is being held on Wednesday 15th May 2019, gives livestock farmers and grassland contractors the opportunity to see the latest grass conservation methods and machinery in action in field scale plots on a commercial dairy farm. Visitors will have the opportunity to see the latest grass harvesting machinery put through their paces in field scale plots.

Visitors will also have the chance to talk to industry experts on technical subjects affecting the livestock industry and those supplying products and services into the livestock sector.

Kayleigh Holden, event organiser, explained, "The AEA is extremely pleased to be back at Crichton Royal Farm which was also used for the 2016 event. The site in Dumfries offers excellent facilities for manufacturers to showcase their machinery to potential customers and visitors alike and we would like to thank SRUC for hosting the 2019 event."

ScotGrass is a triennial event which is organised by the AEA on behalf of industry exhibitors.

Balmers GM Ltd. has joined the GKB Machines’ network of groundcare dealers.

L-R: Balmers’ Sales Manager, Darren Barker, Tom Shinkins, GKB Machines’ Operations Manager and Jan Willem Kraaijveld, GKB Machines’ Director

One of the largest new and used groundcare businesses of its kind in the North of England, Balmers has been in business in Burnley for over thirty years, providing sales, spares, service and hire and covering a Lancashire down to North Manchester and across to West Yorkshire. Balmers were in talks with GKB’s Tom Shinkins in mid 2017 which led to initial demonstrations to customers of a GKB Sandfiller and Top Dresser. The result was Balmers becoming a GKB dealer.

“We like the quality build of the machines, no frills performance and they do what it says on the tin,” says Balmers’ Andrew Meeks. “We like the way the Sandfiller combines in one operation scarifying, removal and sand filling.”

Balmers enjoys a customer base of local councils and national contractors serving golf, football and cricket clubs. They say the partnering with GKB adds a new strength with the availability of the company’s range of natural and synthetic sports turf solutions.

Major Equipment has announced the appointment of Keith McCormick as their new Scottish and North of England sales representative, replacing Ivor Dobson who is retiring from the company after 14 years.

Keith McCormick

Keith joins Major Equipment from Walter Watson where he was responsible for sales throughout Ireland and the UK. With an eight-year tenure at Walter Watson, Keith is already a familiar face to the Scottish dealer network.

“We’re delighted Keith has joined the Major team,” says Eoin Murphy, Major UK General Manager, “he brings a wealth of technical and industry knowledge and we’re very much looking forward to working with him.”

“The Major product range is impressive with a great reputation for clever design and product reliability,” says Keith. “I’m really excited to be a part of the Major team.”

STIHL has expanded its range of VIKING mowers with the introduction of the MB 655 RS rear roller mower, which they say is suitable for landscapers and lawn care professionals.

Designed with ease of use in mind, the Briggs and Stratton engine features an auto-choke mechanism, meaning the recoil starter rope only needs to be pulled once.

For further comfort, the latest offering from STIHL includes a single speed driven rear metal roller with robust drive mechanism for increased service life and minimal strain. The mono-comfort handlebar, with super soft grip, is adjustable to three different heights allowing users to find the most suitable setting.

The cutting height can be precisely adjusted via a sprung-loaded lever on the left-hand side of the housing, whilst the Blade Brake Clutch stops the blade when the mower is stationary. Meanwhile, the high-lift blades combined with the aerodynamic housing produce a strong air current that the company says efficiently blows the grass cutting into the grass catcher box, even in wet conditions.

Due to the optimised design shape and air guide, the 70l box can be 100% filled, while the two-part design ensures easy opening and emptying. Additionally, to reduce time between emptying, the catcher box features an integral level indicator to show when its full.

STIHL say they have taken careful considerations when it comes to storage and maintenance, providing professionals with what they describe as a “durable and convenient” solution. The body design for example allows for easy access and maintenance of working parts, such as drive cables, pulleys and the drive belt.

Designed with a foldable handlebar, the new petrol mower utilises large wheels with high quality ball bearings for easy running, while the tread pattern provides better traction, as well as allowing for easy cleaning. Additionally, the bumper strips offer additional protection when mowing next to walls and edges and can be easily exchanged or replaced if they become marked or damaged.

John Deere has announced a new official supplier agreement with the Club Managers Association of Europe (CMAE), to further support the association’s vision of being the leading organisation for club management educational programmes.

The CMAE is a non-profit professional association for club manager education.

“We are delighted to partner with the CMAE and so make ourselves available to its membership for advice and support,” says Carlos Aragones, John Deere’s European turf sales & marketing manager. “Continued education is a core pillar of the John Deere philosophy and we look forward to supporting the CMAE in its quest to increase club manager education across Europe.”

The CMAE’s director of education Torbjorn Johansson adds: “As the CMAE continues to grow and evolve we are always pleased to welcome industry leading brands such as John Deere. Our stated aim is to continue with our evolution and execution of educational programmes.”

Under the terms of the agreement, both organisations will begin working together on the lead up to the CMAE’s annual conference, which will take place in November this year in Marbella, Spain.

Groundswell, the first UK show and conference wholly focused on no-till techniques, soil regeneration and the value of livestock in arable and mixed farming situations is back for its third year.

Groundswell is descibed by the organisers as a show designed ‘by farmers, for farmers’ who seek to change the paradigm of agriculture from extractive to regenerative.

It takes place at Lannock Manor Farm, Hertfordshire, featuring speakers, workshops and seminars; exhibitions from a wide range of innovative farming companies and field scale direct drill demonstrations.

Groundswell 2018 features a range of respected voices in No-Till and Organic agriculture and environmental sustainability, including:

• Dan Kittredge (USA), Founder and Executive Director of the Bionutrient Food Association (BFA), a non-profit whose objective is to increase quality in the food supply, is speaking in the U.K for the very first time
• Dr. Ademir Calegari (Brazil), a soil scientist with three decades’ experience in cover crop management
• Joel Williams, an independent soil advocate who unravels the links between healthy soils and plant health.
• Gary Markham, Land Family Business Accountants will report results from the first ever European No-Till Benchmarking Group comparing the profitability of no-till vs conventional farming.
• Respected UK farmers will share their experience of no-till in organic and conventional farm setup
•  Discussion Panels & Workshops, providing ample opportunity for guests to pose their own questions and engage in the debate, featuring:
  o AHDB
  o Affinity Water
  o The Soil Association’s ‘Innovative Farmers’
  o Agricology
  o The Pasture Fed Livestock Association

Groundswell is relevant for anyone in the farming or environmental sectors interested in the role that the soil plays in improving the environment, be it carbon sequestration, water catchment, ecosystems or human nutrition and food quality. 

“Groundswell is unique in the fact that you can spend a day learning the principles of Conservation Agriculture whilst also engaging with the organisations who can help make it a reality.” Says Paul Cherry, Host Farmer.

Paul says: “Now in its third year, Groundswell is growing bigger and better as more and more farmers see the opportunities available to them in reducing their costs at the same time as improving their soil. Groundswell offers a welcoming environment for two days of action-packed information exchange with some of the world's most experienced "soil caretakers" - the farmers, scientists and the organisations who all have a role in shaping the future of UK farming. This year we have a renewed focus on UK soils and situations to really help British farmers learn and get the best from their land as we face an uncertain future. It’s looking increasingly like Mr Gove’s anticipated ‘Green Brexit’ will reward farmers who focus on their farm’s soil and overall health, so for any farmer looking for ways to adapt to this scenario whilst maintaining viability as a food producer, Groundswell is the place to be.”

The Direct Drill Demonstrations are taking place on both days of Groundswell this year, illustrating seeding directly into standing cover crop with minimal soil disturbance.

The following manufacturers will there:

• Cousins of Emneth Ltd / Hutchinsons
• Dale Drills
• Sly Europe Ltd
• Simtech Aitchison
• Ryetec Industrial Equipment Limited
• Sky Agriculture
• Horsch UK Ltd
• Duncan AG
• P Tuckwell Ltd / John Deere
• Weaving Machinery
• Triton Seed Drills
• Jordan Engineering

Alongside the drill manufacturers there are 60+ Exhibiting organisations representing their services and products aimed towards farmers with an interest in Conservation Agriculture.

The event location is: Lannock Manor Farm, Weston, Hitchin, Hertfordshire SG4 7EE; it is within a mile of Junction 9 of the A1(M) in North Hertfordshire on Wednesday 27th and Thursday 28th June 2018

Delegate Tickets are available at £55 (+VAT) for one day or £85 (+VAT) for both days.

After months of designing and building, Cub Cadet has now launched its new website.

The company says the site has been created with the end user at the forefront of the design. They say it provides easier navigation and offers an enhanced user journey. The website is fully responsive, meaning it can be viewed just as well on smart phones and tablets as on a regular laptop or pc. This makes it easier for consumers to browse the site, even when they are on the go or even browsing in a dealer’s showroom.

Designed with the customer in mind, the site clearly defines the brand’s products and categories, with all existing products and new season models featured. Each product has a section on both the features and the specifications, making it simple for consumers to review and compare products.

The service and dealer locator pages guide people to locate their nearest dealer, and this is linked through from every product page. The new 2018 catalogue is also available to download, and there are pages on the history of the company and its many innovative designs, such as the xTreme Tight Turn and Cub Connect App.

“We are pleased to launch our new, user-friendly website, which we are confident provides an enhanced customer experience and will further develop our reputation as being at the forefront of garden machinery innovations,” said Phil Noble, field sales and technical manager for Cub Cadet UK.

Visit www.cubcadet.co.uk

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