Credit, Collections & Insolvency News
The incomes of self-employed people are ‘falling like a stone’ amidst economic disruption caused by Covid-19, according to charity the Money Advice Trust, which runs the Business Debtline advice service. The warning comes after Chancellor Rishi Sunak told MPs that constructing a scheme to protect the self-employed who are losing work because of the Coronavirus…
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Accounts payable teams have the power to halt the rise in fraud during the current crisis according to FISCAL Technologies. The company says tackling financial fraud is more important now than ever – the key is the ability to maintain order and efficiency The ongoing impact of the coronavirus outbreak has seen an increase in…
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The estimated total bill to taxpayers for responding to the collapse of Thomas Cook is at least £156 million, with some costs not yet known, a new National Audit Office (NAO) report has found. Thomas Cook collapsed on 23rd September 2019 and all flight and holiday bookings were cancelled, leaving an estimated 150,000 customers potentially…
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Laura Ashley has filed for administration after failing to secure £15 million of emergency cash to stay afloat. The move puts around 2,700 jobs at risk.The company said that owner MUI Asia was not willing to provide the extra cash, and could not secure a loan from elsewhere. In a statement the company said “The…
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Coronavirus poses an existential bankruptcy threat to the hospitality industry according to trade body UK Hospitality. The trade body has warned that thousands of businesses in the UK’s hospitality sector could face bankruptcy following Government advice that people should avoid visiting pubs, restaurants and bars. UK Hospitality. says that during the first in a series…
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The ban on football fixtures, due to Covid-19, could cause an insolvency crisis which will hit Football League clubs hard, warn experts at Begbies Traynor. Paul Stanley, regional managing partner for Begbies Traynor in Manchester, said “Cashflow through the turnstiles is what keeps football clubs afloat. It’s the pies, pints and programmes sold at the…
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A sharp rise in the number of people ‘dying in debt’ has led Begbies Traynor to expand a specialist team. The company says that the number of cases involving the insolvent estates of deceased people is rising, largely due to more ‘hidden debts’ or unpaid care home fees being discovered. When the liabilities of an…
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Over two-thirds of UK SMEs (69%) have reported significant pressures on their cash levels according to latest insights from business lender MarketFinance. This is in large part down to businesses paying for supplies earlier than anticipated because of coronavirus-related stockpiling and fears of deeper disruptions to transport (road, air and rail) linkages. Additionally, on orders…
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The Budget has confirmed plans to grant HMRC ‘preferential status’ in insolvencies from December 2020, says insolvency and restructuring says trade body R3. Business groups, including R3, have described this policy as a threat to business lending and business rescue. From December, debts owed to HMRC by insolvent businesses will be repaid in advance of…
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Hundreds of thousands of British SMEs have been turned down for property finance in the past five years, a new study by Together has revealed. Nearly a quarter of small and medium-sized companies said they had struggled to find the funds to move or expand – with inflexible lenders and a shortage of suitable property…
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The Bank of England has announced a number of measures to respond to the economic shock from Covid-19. In a statement, the Bank of England’s said that its role is to help UK businesses and households manage through an economic shock that could prove sharp and large, but should be temporary. The Bank’s three policy…
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The Federation of Small Businesses (FSB) has urged the Chancellor to unleash small business confidence at today’s Budget by making good on manifesto pledges and introducing a raft of measures to support those suffering from coronavirus-linked disruption. The FSB would like to see an immediately deliver manifesto commitments to increase the Employment Allowance, reduce business…
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The Chartered Institute of Credit Management (CICM) has confirmed it has transferred the hosting and administration of the Prompt Payment Code to the Small Business Commissioner’s (SBC) office in line with the Government’s stated ambition to bring all late payment initiatives under a single umbrella. Since its launch in 2008, the Code has played an…
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