Credit, Collections & Insolvency News
More than two out of every five (41%) established small and medium businesses (those with between 10 and 100 employees) across the UK expect to shut their doors permanently, be forced to conduct mass redundancies or close locations within the next 12 months. Whilst more than one in three (39%) fear their business will be…
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A new report from BDO has revealed a sharp decline in economic output and optimism last month, with both down to their lowest levels since the third national lockdown in February 2021, as record-high inflation continues to dampen the economy and prompt fears of a recession. The latest figures indicate that inflationary pressures are to…
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Almost one in four families (over 8 million) across the UK will receive £324 from the government this month as the latest cost of living payments are sent out from today (Tuesday 8th November 2022). Those who qualify via tax credits will receive it by the end of the month. A first grant of £326…
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Payments to small businesses were made on average 8.2 days late in September. This is the highest late payment time since August 2020 according to the latest data from Xero, the global small business platform. Xero’s Small Business Index, based on anonymised and aggregated data from hundreds of thousands of small businesses, found that in…
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With inflation hovering at a 40-year high, managing day to day cash flow has become the primary reason for small business applications for finance, according to iwoca’s latest SME Expert Index. A survey of brokers has revealed that managing cash flow is the most common loan purpose for over two in five small businesses (42%)…
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Profit warnings issued by UK-listed companies in Quarter 3 2022 reached their highest third-quarter total since 2008, according to EY-Parthenon’s latest Profit Warnings report. In total, 86 profit warnings were issued between July and September 2022, compared to 51 in the same period of 2021, an increase of 69% and a 34% increase from Q2…
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Research from spend management cloud provider, Ivalua has revealed that more than a third of UK businesses (36%) have extended payment terms for suppliers in the last 12 months, due to the impact of COVID-19 (62%), Brexit (39%), and rising energy costs (38%). The research reveals the true impact of late payments on the supply…
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New research from insolvency and restructuring trade body R3 reveals Scottish firms had almost 1.7 million overdue invoices on their books in the last quarter. R3’s analysis of data provided by Creditsafe shows 1,696,445 invoices were overdue in Scotland in Q3 – an increase of 7.1% from Q2’s total of 1,583,353. Scotland and the West…
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More than 600,000 UK companies are in critical financial distress, according to a Red Flag report by Begbies Traynor. The latest data reveals that the number of companies rated as being in ‘critical financial distress’ continued to rise rapidly in the third quarter of 2022, jumping by 25% compared with the same period in 2021…
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The cost of borrowing money has reached its highest level since 2010, according to a survey of 87 Chief Financial Officers (CFOs) by Deloitte. Over half of CFOs (56%) rate credit as costly while over a third of finance leaders (39%) note that new credit is not easily available. The financial market impact of the…
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The latest report from the National Audit Office (NAo) into the Covid-19 business support schemes criticizes the Government for not doing more to prevent mistakes and fraudulent claims when rolling out the programs. The NAO said a total of £4.5 billion or nearly 4.6% of the total cost of the Government’s £96.9bn emergency Covid-19 support…
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The British Business Bank (BBB), which helps small businesses access finance, has warned that smaller firms face a challenging few years on the back of the economic downturn. The BBB said lending to start-ups and the smallest businesses could be particularly vulnerable to the impact of economic uncertainty as they often do not have collateral.…
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Britain’s small and medium-sized businesses (SMEs) are owed on average £147,141 in late payments, nearly £74,000 more than in 2019, according to research by Dun & Bradstreet. Following the fallout from Covid-19 and Brexit, plus late payments and rising inflation, it comes as no surprise that 61% of SMEs are struggling to pay back loans, according…
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