Credit, Collections & Insolvency News
The number of companies in critical financial distress increased by a third (36%) in the last three months of 2022, according to figures from insolvency firm Begbies Traynor’s Red Flag Alert data. Businesses are struggling at an increasing rate as a combination of legacy Covid debt, inflation and greater pressure on consumers who are reining…
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A survey of over 1,000 UK small businesses has revealed that rising fuel and energy costs is now believed to be one of the greatest threats to SME survival in 2022. The SME Insights Report, published by small business insurance provider Simply Business, also found that one third (36%) stated tax and national insurance hikes are their greatest concern.…
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According to the latest PMI data by IHS Markit and CIPS, the headline construction PMI fell to a three-month low of 50.4 in November 2022, down from 53.2 in October 2022, reversing the previous upward trend which had been driven by a surprising increase in commercial activity. The recent fall indicates a slowdown in construction…
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The amount that restaurant business owners have been forced to lend to their own businesses has increased 12% in the past year, from £377 million in 2020/21, to over £424 million in 2021/22, according to audit, tax and advisory firm, Mazars Rising costs and falling restaurant sales has meant that more restaurant owners are having…
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The latest economic forecast from the Confederation of Business Industry predicts Britain’s economy will shrink 0.4% next year as inflation remains high and companies put investment on hold. The expected 0.4% fall in GDP is a downgrade from its previous forecast of 1% growth set in June. Business investment is expected to slump by 9%…
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The Institute of Directors (IoD)’s Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, fell to -64 in November, the second lowest figure on record (after the -69 registered in April 2020). In October 2022, the Index recorded a value of -60. The index of confidence in business leaders’ prospects…
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The number of overdue invoices in Scotland has reached its highest level for this year, according to new research insolvency and restructuring trade body R3. R3’s analysis of data provided by Creditsafe shows the number of invoices in Scotland that have gone past their payment deadline rose to 593,114 in October – the highest recorded…
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A new British Chambers of Commerce (BCC) survey has found almost half of SMEs say they will find it difficult to pay their energy bills once the Government’s Energy Bill Relief Scheme ends on 31st March 2023. A further 4% say they will not be able to pay their energy bills at all, while 37%…
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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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