Bank your cheques promptly ….
Although the use of the cheque seems to be diminishing with new technology enabling electronic transfers, standing orders and direct debits there are still a large number of businesses that rely on ’The Cheque’.
The Payee (receiver of the cheque) must recognise that the cheque itself is only the ‘promise to pay’ and not cleared funds – it can therefore not be relied on until it has been banked and cleared.
Each bank has a ‘clearing process’ which should meet the requirements of the 2-4-6 cheque clearance implemented by all UK Banks and Building Societies.
2 – 4 – 6 refers to the number of ‘Working days’ after a cheque has been paid into an account.
- The cheque is shown in your account on the day you bank it
- 2 working days after the cheque is banked interest will be paid by the bank (or reduce the interest you pay)
- 4 working days after the cheque is banked the funds are available to use ….BUT
- It is not until the end of the 6th working day after banking that you can rely on that money not being recalled
What does this mean to you the creditor…….
You do not own the funds paid until 6 working days after you have paid the cheque into your account
- Ensure you bank cheques promptly
- Check your bank statements regularly for ‘Returned Unpaid’
- Never draw on an uncleared cheque
Your relationship with Lane and Co…….
- Inform us promptly when you have received a payment of any kind relating to an ongoing file
- Tell us immediately when you have a ‘bounced cheque’, it could significantly alter the progress of your file
The Financial Ombudsman has published an online technical resource providing more detailed information on banking, follow the link for more information financial-ombudsman transfers payments and cheques
NB:- Although the 2-4-6 cheque clearance is the clearing process at the moment – there will be significant changes in 2017…. Watch this space.
Compulsory EPC rating of an ‘E’ standard by 2018
Landlords are under increasing obligation to ensure their properties are compliant with current Health and Safety laws and in a fast changing legal environment it is crucial that Landlords are fully up to speed with the standards expected of them.
Are you aware of the compulsory EPC rating of an ‘E’ standard by 2018. This standard must be met otherwise it will be illegal for you to rent out your properties that do not achieve an E rating or above by the deadline. In the meantime see below what action you can take to achieve this standard:
Action – Check the energy efficiency of your home
It is a legal requirement to provide an EPC certificate in the lettings process and to have this displayed when a property is advertised for rent.
An EPC will show what improvements can be made to save money spent on keeping your home warm and help reduce climate change. The RLA offers an EPC service in partnership with gas-elec.
Landlords can prevent Excess Cold by:
- Ensuring that the home is properly insulated: lofts should have at least 270mm of insulation, and wall cavities should be insulated too.
- Installing heating systems that can be controlled by the occupant. Central heating systems are more efficient than separate room heaters. Thermostats should be able to be set so that the main rooms are at 21°C during the day and bedrooms are at 18°C.
- Draught proof any gaps around windows and doors.
Action – Insulate and draught proof to avoid condensation
- insulate the loft
- draught proof windows and external doors
- consider cavity insulation
- consider double glazing
Double glazing is not as cost effective in terms of recouping your investment as quickly through energy savings alone when compared to other measures such as draught proofing and insulation. However it is an attractive feature when letting a property and does increase the energy efficiency of your property.
Action – effectively ventilate the home
- Provide suitable low level background ventilation to the property without excessive heat loss or draughts.
- Ensure that your tenants understand how to use fans and open the windows.
- Ensure that existing air vents are not blocked, or decorated over, and that trickle vents on windows and doors work correctly.
- install ventilation in kitchens and bathrooms
- sufficient ventilation in cupboards and wardrobes
- Explain to your tenant that the cost of running the extractor is lower than they might think. It is often assumed that extractor fans are expensive to run but effective ventilation will reduce the risk of other health hazards caused by damp and mould.
To find out more, please visit the RLA website that has useful tips for landlords
Recovering a Trade Debt – What are your options?
When your debtor doesn’t pay, what can you do?
When trying to recover a fairly modest trade debt from a company a business does have a number of different options to consider…..
- Court proceedings
- Insolvency proceedings
- Statutory Demand
- Winding-up petition
- Reaching a settlement
- Negotiation
- Mediation
To see the full article on your options follow the link – Recovering a Trade Debt – Your Options
Alternatively – If time spent considering the pro’s and con’s is stopping you running your business – why not…
Leave your Debts in our Capable Hands
Welcome to the next Buray Rajania
Indy gave birth to the new addition to their family on Friday 10th February.
Baby Kaiden arrived weighing 7lbs 6ozs.
Both mum and baby are doing well – how cute is he?
Leave your debts in our capable hands
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