Credit, Collections & Insolvency News
New research from independent SME funder, Bibby Financial Services (BFS), has highlighted a significant threat to the UK economy as banks appear to be retreating from lending to small businesses. Data from BFS’s latest SME Confidence Tracker report reveals that while almost half (43%) of UK SMEs say their need for external finance has increased…
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KPMG has been given a record fine for failings in its auditing of construction company Carillion which collapsed in 2018 and led to a loss of thousands of jobs. The Financial Reporting Council (FRC) said the firm has been fined a total of £30 million, this has been reduced by 30% after co-operation and admissions…
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Latest figures from the Office for National Statistics (ONS) has shown that GDP grew 0.2% in August, and 0.3% between June to August. The services sector was the biggest contributor with growth of 0.4%. Consumer services were down 0.6% after a 10.8% fall in sports, amusement and recreation activities. Production output fell 0.7% whilst construction also…
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The number of SME owners securing personal guarantee insurance (PGI) for a business loan doubled in September 2023 compared to the same month in 2022 according to research byPurbeck Personal Guarantee Insurance. The research found that SME business owners are now taking on loans that are on average £388,494 from £357,016 in Q3 2022 – an increase of close…
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Financial services activity held relatively firm in Q3 of 2023, despite some softening from a buoyant second quarter. Optimism and business volumes growth were quick in the three months to September, although to a lesser extent than the previous quarter, according to the latest CBI Financial Services Survey. The quarterly survey, found that Financial Services…
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New research by Intuit has found that UK small business credit card spending up by 22% since the pandemic amidst funding challenges. With elevated inflation and high-interest rates, small businesses have increasingly depended on their credit cards, with the current spending being 20% higher, on average, than they were before the pandemic. At the same…
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The Government has announced tougher measures to tackle the issue of late payments to small businesses. These new measures will be included in the upcoming Prompt Payment & Cash Flow Review, due to be published shortly and will improve delivery and enforcement of policies, enabling more small businesses to get paid on time. Late payment…
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The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, remained subdued at -26 in September 2023, similar to August’s reading of -28. This is the fourth consecutive month in which economic confidence has been relatively low, following a large drop in June. Order books were suggestive of…
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Business confidence fell to 36% in September, a five point dip from the 18-month high (41%) recorded in August, as companies saw a decline in both economic optimism and trading prospects for the year ahead. While confidence has fallen it remains higher than the first three months of 2023 (20%). Firms’ trading prospects were down…
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Companies are tightening their belts as cost pressures increase but business retains optimism for the near future according to new research from Grant Thornton UK LLP’s Business Outlook Tracker. Rising interest rates and high costs have forced many businesses to cut spending, freeze pay increases and restructure operations as they grapple with cost pressures, new…
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A Government watchdog set up to tackle late payments has reclaimed less than £800,000 for small businesses since June 2021. The Office of the Small Business Commissioner, launched in December 2017, has recovered £8.5 million owed to small businesses, with £7.8 million retrieved before June 2021. The Commissioner attributed the lower amount recovered to resolving…
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The UK economy is heading for a slowdown in growth in the second half of the year, according to KPMG. With interest rates reaching their potential peak, attention will turn to fiscal policy, however, the upcoming general election could prolong the uncertainty for businesses and delay investment. High-interest rates, continued uncertainty and low productivity could…
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Analysis of the Bank of England’s data on SME lending shows that through the first half of 2023 SMEs saw net lending decrease by £5.3 billion. The research by Ebury has highlighted the urgency with which businesses are now making debt repayments in the aftermath of the various Covid-19 loan schemes and the rising cost…
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