Governance

Credit Clearing and the Missing Middle, Part 3 Clearing thrives when businesses outgrow the coins in their purse. In this instalment we move from mediaeval market fairs, as explored in the previous article, to purpose-built clearing institutions. From the Bank of Amsterdam in 1609 to the London bankers huddled in a Lombard-Street tavern in 1770, the idea was the same: share the maths, spare the money. …

Credit Clearing and the Missing Middle, Part 2 The History of Clearing Clearing, at its core, is about paying as many debts as possible with the minimum use of cash, resulting in more efficient trade at lower risk. While this sophistication may sound modern, versions of the practice can be traced back centuries. …

Credit Clearing and the Missing Middle, Part 1 The global economy feels dominated by large corporate players and financial institutions, while at the grassroots, small and medium-sized enterprises (SMEs) have to navigate an obstacle course of tight credit conditions, cashflow challenges, and uncertain demand. Yet these smaller businesses collectively represent 99. …

Late payments don’t just hurt individual businesses Late payments are sometimes viewed as a minor inconvenience, a simple delay that businesses can manage with a bit of financial juggling. The reality however, is that late payments have far-reaching impacts that extend beyond the immediate frustration of cashflow issues. In tightly interconnected local economies like Merseyside, these delays can cause significant knock-on disruptions, affecting not only the individual businesses involved but also the wider community. …