Credit, Collections & Insolvency News
Business confidence in the UK has plunged into negative territory as companies grapple with a crisis from the rising cost of doing business according to the ICAEW. The research found that business confidence falls into negative territory after record peak last year with the cost of doing business now pushing UK closer to recession amid…
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A survey of 885 UK-based retail investors has revealed how investors are managing their portfolios in light of high inflation, low growth, subsequent recession risks and the Conservative leadership contest new research commissioned by HYCM has found. The survey found that the majority (62%) of investors believe the UK will enter a recession before the…
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Data analysed by Mazars show the number of struggling firms striking Company Voluntary Arrangements (CVAs) with creditors has fallen 47% in the past year since a 2020 change to the law made HMRC a preferred creditor when firms go bust. CVAs, in which struggling firms strike agreements with their creditors to pay off debts, have…
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Hospitality bosses are calling for an emergency VAT cut as the sector deals with soaring energy bills. New research has suggested that most bars and restaurants are dealing with “significant” energy cost hikes whilst a majority are also seeing dramatic increases in their food and drink costs. The new data also reveals that supply chain…
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The value of overdrafts used by small and medium-sized enterprises (SMEs) has grown 18% from £8.3 billion in May 2021 to £9.8 billion in May 2022 as the financial stress in small businesses rises according to research by UHY Hacker Young. UHY Hacker Young says that the rise in overdraft use is concerning as overdrafts…
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One in three UK small and medium enterprises (SMEs) say their survival is dependent on accessing finance by the end of the year, new research from NerdWallet has revealed. The company surveyed 500 senior decision-makers within UK SMEs. It found that 33% fear their business will collapse if they are unable to access finance (such…
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The UK Services sector is responsible for the biggest month-to-month spike in overdue invoices last month according to new analysis by Sidetrade. UK Services companies saw the biggest month-to-month leap from June to July 2022 with over a quarter (26.8%) of supplier invoices issued to them being deemed overdue last month, compared to one-fifth (20.6%)…
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The number of companies in ‘critical financial distress’ has increased by 37% in the past year, insolvency specialists Begbies Traynor has warned. The latest Begbies Traynor Red Flag Alert report has revealed the financial strain continuing to be faced by thousands of British businesses. The research found that the number of companies rated as being…
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The knock-on impact of soaring energy prices is being felt strongly by the UK construction sector as businesses face delays to new work while continuing to operate with disrupted global supply chains. According to the latest PMI data by IHS Markit and CIPS, the headline construction PMI fell to 48.9, down from 52.6 in June, showing…
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HMRC is to revise late payment interest rates after the Bank of England increased its base rate to 1.75%. The Bank of England Monetary Policy Committee voted on 4th August 2022 to increase the Bank of England base rate to 1.75% from 1.25% HMRC interest rates are linked to the Bank of England base rate. As…
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Small business owners are concerned about the possibility of a recession, according to iwoca’s latest quarterly SME Expert Index. With both the cost of living and of doing business climbing, over three quarters of brokers surveyed (77%) say their small business clients are worried about the possibility of a recession. By contrast, fewer than 7%…
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Taxpayers have been left to foot a £421 million bill to cover Covid debts, after one in 12 businesses defaulted on state-backed emergency loans according to latest data from the Department for Business, Energy and Industrial Strategy. The data show that around 8% of 1.6m borrowers – roughly 130,000 – failed to repay their debts…
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Analysis by Xero Small Business Insights and Accenture has found that the average UK small business faces a cashflow crunch when monthly revenues are not enough to cover outgoings. The report also found cash flow challenges are undermining the growth and operations of at least 9 in 10 small businesses in the UK. The report…
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