Credit, Collections & Insolvency News
The Bank of England has warned that rising interest rates are putting British companies at higher risk of corporate defaults, with the proportion of non-financial companies experiencing debt-servicing stress expected to hit 50% by the end of the year, up from 45% in 2022. The proportion rose to 70% for medium-sized companies, meaning corporate debt…
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Businesses in Scotland had 131,396 fewer unpaid invoices on their books in July 2023 than July 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 Scotland have fallen from 552,897 in July 2022 to 421,501 in July…
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New data from Begbies Traynor has revealed that there has been an increase in the number of North West firms faceing significant financial distress as inflation and interest rates bite. In Quarter 2 of 2023, the number of firms in the North West operating in ‘significant’ financial distress was 45,579 according to the research. This is…
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A hike in the interest rate charged for late payment of taxes means that customers who fail to pay their taxes on time will face a 7.75% late payment fee, up from the current rate of 7.5%. Quarterly instalment payee will see the change come into effect on 14th August, while for non-quarterly instalment payments,…
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Thousands of companies are running out of time as the burden of rising interest rates, unmanageable debt, subdued consumer confidence, higher material and labour costs, and wider economic uncertainty combine to put considerable pressure on businesses across the country, according to the latest Begbies Traynor Red Flag Alert. The latest data is sourced from a…
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An improvement in jobs and sales growth across UK small businesses in June has been largely offset by increasing late payments and a slowdown in wages growth, according to the latest data from global small business platform Xero. The company Small Business Index, based on anonymised and aggregated data from hundreds of thousands of small…
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A new report has revealed that more than a quarter (26%) of small business owners believe that they will be forced to cease trading if the outlook for their business does not improve – a potentially detrimental blow to the UK economy. The SME Insights Report, published by small business insurance provider Simply Business, also found…
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New research by Aldermore has found that £1.9 billion lost in income small and medium-sized enterprises (SMEs) as a result of supply chain delays. 3.3 million (60% or three in five) small and medium-sized enterprises (SMEs) have experienced supply chain delays in the last year, losing an average of £625,000 in income each as a…
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HMRC has been accused of profiteering from self-employed workers over the rate it charges on late payments. Analysis shows that while taxpayers have been charged 7% on late payments, those who are owed a refund from HMRC receive interest of just 3.5%. Julia Kermode, founder of IWORK, said “HMRC is profiteering from self-employed workers at…
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New research by the Business Debtline has revealed the impact of the cost of living crisis on struggling small business owners, with a majority of callers to the free debt advice survey going without essentials and worrying about meeting their commitments – and a third turning to credit to help cover essential household bills. The…
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Energy suppliers are set to file a record number of winding-up petitions against businesses as companies struggle with soaring energy costs according to new research by Harcus Parker. Court filings show that there have been more than 400 attempts by suppliers to shut down companies to reclaim their energy debts over the past decade. The…
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Businesses are spending over 71 days per year – more than a quarter of the working year chasing late payments, according to the annual European Payment Report from credit management services provider Intrum. The 26th edition of Intrum’s report surveyed more than 10,000 companies across 29 European countries, shedding light on the challenges that businesses…
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A new survey by NerdWallet has found that over half (55%) of businesses still have outstanding invoices from the last tax year (2022/23). Business debt seems to be getting worse with time, as 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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