Credit, Collections & Insolvency News
With vaccination campaigns ongoing, trade credit insurer Atradius has predicted that the global economy will grow by 6.2% and is recovering fully from the major economic downturn in 2020 caused by the Covid-19 pandemic. Atradius new Economic Outlook forecasts a 2021 growth rate of 6.2%, higher than was expected six months ago. As most economies…
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Latest monthly figures from the Insolvency Service have indicated that business insolvency numbers across England & Wales fell by 9.3% to 1,094 in July 2021 compared to June’s figure of 1,206, and increased by 13.4% compared to July 2020’s figure of 741. Of the 1,094 registered company insolvencies in July 2021 there were 1,007 CVLs,…
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Latest figures released by Accountant in Bankruptcy (AIB) have indicated that Scottish business insolvencies rose by 36% in July 2021. The figures show that there were 72 company insolvencies registered in Scotland, this was 36% higher than in July 2020 but 26% lower than in July 2019. The business insolvencies comprised of 14 compulsory liquidations,…
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Latest statistics from the Insolvency Service have shown that Northern Irish personal and business insolvencies numbers decreased in July. In July 2021 there were 142 personal insolvencies in Northern Ireland, the figures were 11% lower than July 2020 and 28% lower than July 2019. The insolvencies consisted of 121 IVAs, 14 DROs and seven bankruptcies. There were…
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Research by the LSE’s Programme on Innovation and Diffusion (POID) has found that one in sixteen businesses say that they are at risk of closure in the next quarter. The research notes that this period is set to see the Government withdraw critical coronavirus support, such as the furlough scheme. The research found that during…
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The Government has revealed new insolvency legislation that will protect businesses that accrued debt and arrears as a result of the Coronavirus crisis. Under the new rules, new provisions will be introduced that will ringfence rent debt caused by ‘enforced closures’ and set out a process of binding arbitration to be undertaken between landlords and…
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GlaxoSmithKline (GSK) has been reinstated to the Prompt Payment Code after meeting the more demanding requirements of the reformed Code. Two entities of GlaxoSmithKline (GSK) – GlaxoSmithKline Consumer Healthcare (UK) Trading Limited and GlaxoSmithKline UK Limited, were suspended from the Code on 1 November 2019, after their payment reports from January – June 2019 failed…
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An Institute of Directors (IoD )survey of over 700 Directors has shown that 44% of businesses are currently experiencing staff shortages – a development that risks undermining the recovery and stoking emerging inflationary pressures. Of those affected, 65% attribute worker shortages to the UK’s long-term skills gap, whilst 4 in 10 are struggling with a lack of potential…
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A survey of small businesses has found that 59% used government loans or furlough schemes during the pandemic, around 3.5 million businesses. The YouGov poll commissioned by Lawbite also revealed that at least 10%, which could represent as much as 354,000 SMEs, could not now afford to repay the loan due to the impact of…
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Two companies who fraudulently applied for thousands of pounds worth of Covid support loans have been wound up in the courts. The two separate companies submitted false documents to at least 41 local authorities and the Government’s Bounce Back Loan scheme to secure £230,000 worth of grants put in place to support businesses during the…
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Two thirds (66%) of SME leaders who received financial support from the Government’s Covid loan schemes say it’s likely their business will default on the loan, according to new research1 from Nucleus Commercial Finance. This equates to 2.3 million SMEs who anticipate never repaying their loan. The anticipated default rate increases to 75% for small…
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Over half of UK SME businesses expect their profits to increase according to a new report by Azets. In the company’s inaugural SME Barometer, which surveyed 760 Azets SME clients across the UK and the Nordics (401 in the UK), the survey revealed that despite the economy, Covid-19 and competition ranking in the top three…
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The Financial Reporting Council (FRC) has fined KPMG £13 million over the firm’s role in the sale of the mattress company Silentnight to the private equity firm HIG. The accounting watchdog also severely reprimanded KPMG and ordered it to appoint an independent reviewer to establish ‘root causes’ of its failings. David Costley-Wood, former Partner and…
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