Credit, Collections & Insolvency News
The Insolvency Service has published its latest which indicates that the overall number of company insolvencies decreased by 23% in Q2 2020 compared with 3,848 in Q1 2020 to 2,974 in Q2 2020), and by 33% when compared with Q2 2019 (4,425). Commenting on the figures Colin Haig, President of R3, the insolvency and restructuring…
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Sharp distinctions in approaches to managing cashflow and business continuity planning by SMEs and the corporate world have been revealed in the latest edition of the ACCA UK and The Corporate Finance Network (The CFN) SME Recovery Tracker. Closing on the 29 July, the results show that 86% of accountants in the corporate sector have…
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Small and medium-sized (SME) business leaders have issued a warning that late payments have reached new heights since the COVID-19 pandemic crisis and it is putting their recovery at risk. New research from Intuit QuickBooks has revealed that while chasing late payments has always been a challenge for SMEs, one in five (21%) believe the…
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The Government has announced that consumers who pay for goods in advance will now be protected if retailers go insolvent under new proposals. Under existing rules, if a company becomes insolvent, goods paid for in advance that are still in its possession may be considered as assets belonging to the business. These goods can be…
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Latest research by Red Flag Alert for Quarter 2 (Q2) 2020 has recorded seven consecutive quarters of increased financial impairment resulting in a record 527,000 businesses in significant financial distress at the end of June 2020 – an increase of 33,000 since the beginning of the year. The research also finds that this represents a…
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R3, the insolvency and restructuring trade body, has hit out at changes to HMRC’s creditor status, which were confirmed after the Finance Bill received Royal Assent earlier this week. Under the legislation, HMRC will become a preferential creditor in insolvencies from 1 December, which means it will be paid in full before a number of…
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The Consumer Council for Water (CCW) – the voice for water consumers has revealed that most water retailers improved their performance during 2019-20 as written complaints from business customers fell by almost a fifth. The latest figures indicate an end two successive years of rising complaint levels among business customers in England, during which time…
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Audit, tax and consulting firm RSM has called on Government to urgently consider extending the temporary Covid-19 regulatory relief – the Corporate Insolvency and Governance Act, to three months beyond the date on which it is currently set to end. The firm says an extension will allow consumer-facing businesses more time to bolster their debt…
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A survey from Deloitte has shown that CFOs do not expect businesses to see a quick bounce back from the coronavirus crisis, with many saying demand is unlikely to recover until the second half of 2021. The survey saw 49% of finance bosses say they do not expect demand at their firm to return to…
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Almost one third (30%) of European businesses have been forced to cut staff or wages to survive during the pandemic, with business finances set to be further stretched when government support winds down, according to a new survey from accountancy and business advisory firm BDO. In total, two thirds (65%) of European businesses polled by…
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A Recruitment director has been banned from managing companies for six years after paying himself a £150,000 bonus just before his company entered into liquidation. The investigation found that on 15th July 2020, Roy Davies from Rochdale, Lancashire, is banned for six years from acting as a director or directly or indirectly becoming involved, without…
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It is feared that up to 780,000 firms employing three million could go bust in the next year if they cannot defer repayments on government-backed loans. The figures highlight the risks if urgent action to tackle the projected £35bn of unsustainable debt from Covid-19 loans is not taken according to a new report by The…
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The Covid-19 pandemic crisis is affecting the European payments landscape with businesses facing unparalleled uncertainty according to late insight research by European credit management specialist Intrum. The report indicates sharp drops in GDP across Europe are now pushing down revenues for businesses, restricting cash flow while increasing pressure on businesses to manage their cash and…
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