Credit, collections & insolvency news
Analysis of the Bank of England’s data by Ebury has found that debt repayments halved in Quarter 3 (Q3) 2023 compared to the previous quarter with SMEs are continuing to pay down the significant debt pile accumulated through the pandemic. SMEs have accelerated debt repayments amid the soaring cost of borrowing as interest rates have…
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SME business owners have revealed that cash flow is the biggest challenge for nearly half of the respondents. Almost half (48%) of small to medium enterprises cited cashflow as the largest single challenge their business was facing, according to research by Millbrook Business Finance. This was followed by the cost-of-living crisis (32%) and energy prices…
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New figures released by the HMRC have indicated that the amount of tax owed to the Exchequer but remaining unpaid totalled £45.5 billion as of the end of September 2023, a slight reduction from the £45.9 billion balance for the quarter ending 30th June 2023 but still well above pre-pandemic levels. The total debt comprises £7.8…
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New research by NerdWallet has found that over half (55%) of businesses still have outstanding invoices from the last tax year (2022/23). The problem also seems to be getting worse with time with just under half (46%) of SMEs were left with more unpaid invoices at the end of the 2022/23 tax year than the…
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One in ten SMEs that have struggled to access funding eventually folded according to research from Shawbrook. The research found that three quarters (72%) had experienced difficulties accessing funding. While one in ten of this group eventually saw their business fold, funding challenges caused other obstacles for a much broader range of SMEs. 29% of…
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The latest Begbies Traynor Red Flag Alert report has painted a worrying picture forbusinesses with nearly 40,000 companies are revealed to be in a critical financial situation as the pressure of higher interest rates, resilient inflation and weaker consumer confidence take their toll. Begbies Traynor says that these pressures are now clearly being seen beyond…
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Business confidence rose to 39% in October, a three-point increase, to reach the second highest level in 2023–surpassed only in August (41%) according to Lloyds bank business barometer. The confidence level this month is significantly above the long-term average of 28% and contrasts sharply with the Barometer reading of just 15% in October 2022, in…
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The proportion of businesses blaming profit warnings on tighter credit conditions has risen to the highest level since the financial crisis, according to new data from EY-Parthenon. UK-listed companies issued 76 profit warnings between July and September 2023, marking the first time the quarterly total has fallen year-on-year since 2021. Prior to Q3 2023, warnings…
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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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Around two-in-five self-employed workers would switch to a salaried job if they could secure the same income, and around one-in-eight would accept a 20% pay cut to switch, according to new analysis by the Centre for Economic Performance (CEP) at the London School of Economics and Political Science (LSE). The report found stagnant incomes and…
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Latest data that showed the annual rate of CPI inflation was 6.7% in August, down slightly from 6.8% in July. Commenting on the data Kitty Ussher, Chief Economist at the Institute of Directors, said “This slight fall in the headline rate of inflation is better than was expected given the increased cost of petrol in…
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Nearly half of businesses in the UK have been negatively impacted by cost of borrowing, according to new research from the British Chambers of Commerce (BCC). Ahead of this week’s interest rate decision, new research by the BCC Insights Unit shows nearly half of firms say the cost of borrowing is negatively impacting their business. When asked if their company is directly impacted by the current interest rate – whether…
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