Credit, collections & insolvency news
New research by Kearney has found that the global share of ‘zombie companies’ has risen 5% year-on-year in 2022. The study shows a net increase of 95 zombies globally, rising from 1,893 in 2021 to 1,988 in 2022. The research estimates the number of zombie companies to rise by over a fifth (21.5%) across the…
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Analysis of the Bank of England’s data by Ebury has found that debt repayments halved in Quarter 3 (Q3) 2023 compared to the previous quarter with SMEs are continuing to pay down the significant debt pile accumulated through the pandemic. SMEs have accelerated debt repayments amid the soaring cost of borrowing as interest rates have…
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SME business owners have revealed that cash flow is the biggest challenge for nearly half of the respondents. Almost half (48%) of small to medium enterprises cited cashflow as the largest single challenge their business was facing, according to research by Millbrook Business Finance. This was followed by the cost-of-living crisis (32%) and energy prices…
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Bank-to-business lending is forecast to contract 0.5% this year according to EY ITEM Club, as economic challenges and high borrowing costs dampen businesses’ appetites to borrow. The forecast says net lending to SMEs has been much weaker than to larger businesses this year, with the latest Bank of England data showing loans to SMEs were…
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New figures released by the HMRC have indicated that the amount of tax owed to the Exchequer but remaining unpaid totalled £45.5 billion as of the end of September 2023, a slight reduction from the £45.9 billion balance for the quarter ending 30th June 2023 but still well above pre-pandemic levels. The total debt comprises £7.8…
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New research by NerdWallet has found that over half (55%) of businesses still have outstanding invoices from the last tax year (2022/23). The problem also seems to be getting worse with time with just under half (46%) of SMEs were left with more unpaid invoices at the end of the 2022/23 tax year than the…
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The number of invoices being paid after their due date in Northern Ireland fell more than 35% in September 2023 compared to the same period in 2022, according to new research from R3, the UK’s insolvency and restructuring trade body. R3’s analysis of data provided by Creditsafe shows that overdue invoice numbers in Northern Ireland…
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Small businesses in the UK are facing a worsening late payment crisis, with payment times hitting a three-year high. According to Xero’s quarterly small business index, small firms are waiting an average of 29.4 days to be paid by their customers, with payments in September being made 7.7 days after the due date. The manufacturing…
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The Federation of Small Businesses (FSB) has labelled the upcoming Autumn Statement a watershed moment for the Government to cement its commitment to the small business community and cultivate conditions that focus on business recovery. The call comes exactly one month before the Chancellor delivers his speech to set the economic agenda for the next…
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New research by Intuit has found that UK small business credit card spending up by 22% since the pandemic amidst funding challenges. With elevated inflation and high-interest rates, small businesses have increasingly depended on their credit cards, with the current spending being 20% higher, on average, than they were before the pandemic. At the same…
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The Government has announced tougher measures to tackle the issue of late payments to small businesses. These new measures will be included in the upcoming Prompt Payment & Cash Flow Review, due to be published shortly and will improve delivery and enforcement of policies, enabling more small businesses to get paid on time. Late payment…
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A Government watchdog set up to tackle late payments has reclaimed less than £800,000 for small businesses since June 2021. The Office of the Small Business Commissioner, launched in December 2017, has recovered £8.5 million owed to small businesses, with £7.8 million retrieved before June 2021. The Commissioner attributed the lower amount recovered to resolving…
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Analysis of the Bank of England’s data on SME lending shows that through the first half of 2023 SMEs saw net lending decrease by £5.3 billion. The research by Ebury has highlighted the urgency with which businesses are now making debt repayments in the aftermath of the various Covid-19 loan schemes and the rising cost…
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