Business debt judgements rise by 25%

The total value of UK business judgments rose sharply by 25 percent during the first quarter of the year, according to figures released by TrustOnline.The figures also show that the total number of judgments against businesses was up 8 percent on the same quarter in 2017. Over the same period the number of online searches by people checking judgment status grew by seven percent, compared to Q1 2017, to just under 75,000 searches.

The average value of a business judgment also increased, rising by 16 percent. The total value of UK business judgments in the county courts sharply rose by a quarter compared to the first quarter of 2017.

Malcolm Hurlston CBE for Trust Online said “Judgments against businesses clearly show failure in financial management. This quarter’s increase is a warning sign and it would be good to see an equivalent rise in searches.”

Responding to the figures showing the rise in judgments against businesses the Money Advice Trust said the figures were‘concerning’ as demand for business debt advice grows

Jane Tully, Director of External Affairs at the Money Advice Trust, the charity that runs Business Debtline said “The rise in judgments against businesses is concerning and reflects the increase in demand for business debt advice that we are seeing at Business Debtline. Last year we helped over 36,000 small business owners and self-employed people in debt, 11,000 more than in 2016.”

Statistics:

• Judgments against businesses Q1 2018 (compared with Q1 2017)

o    Total number: 33,010 (up eight percent)

o    Total value: £105.1m (up 25 percent)

o    Average value: £3,183 (up 16 percent)