Credit, Collections & Insolvency News
The Monetary Policy Committee (MPC of the Bank of England has moved decisively to curb inflationary pressures by raising the interest base rate from 3.75% to 4%. Commenting on the 8-1 decision of the Monetary Policy Committee of the Bank of England to increase interest rates to 4%, Anna Leach, Chief Economist at the Institute…
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Following HMRC’s announcement of its plan to take PAYE and VAT from businesses through direct debit, UHY Hacker Young has warned that such measures could tip several businesses into insolvency. From April 2029, the UK government plans to introduce mandatory automated Direct Debit payments for VAT and PAYE (Pay As You Earn) return liabilities The…
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Suppliers to the retail sector are urged to closely monitor payment risk as businesses enter the critical Christmas trading period amid weak consumer confidence and rising costs. Trade credit insurer Atradius says the golden quarter could expose a growing divide between resilient retailers, who can keep investing, and those facing greater financial pressure. Atradius’s latest…
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Latest Red Flag Alert research from BTG has revealed that the number of UK businesses in ‘significant’ financial distress increased by 1.6% year-on-year to a record 738,144 in Q3 2026 and the highest level since the research began in 2004. The findings indicate the extent of the financial pressures facing businesses. BTG’s latest research also…
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The Finance & Leasing Association (FLA) is calling for greater collaboration between lenders, industry bodies and policymakers following concerns raised by members about emerging trends in loan stacking and the potential consequences for the financial resilience of UK businesses. Loan stacking occurs when businesses take out multiple loans or financing arrangements, sometimes in quick succession,…
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Trade credit insurer Atradius says weather volatility and rising costs may put further pressure on Britain’s food supply chain. Atradius says that it saw agriculture claims increase over the summer, while food claims were modestly higher across the latest three-month period. Meanwhile, new data shows agriculture claims rose during the winter following the hot, dry…
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Chief Executives (CEOs) of the UK’s biggest businesses are feeling much more upbeat about the growth prospects for their businesses than in 2025, ranking joint third globally, according to KPMG’s 2026 Global CEO Outlook. The findings of the annual KPMG survey represent the views of 1,400 CEOs, including 150 from some of the largest businesses…
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SMEs are relying on premium finance and finance from insurers ahead of other forms of credit as they borrow more to ensure cover remains affordable, new research from Premium Credit. Nearly two out of three (64%) fund insurance policies with premium finance or finance from insurers, the study found. With respondents using multiple forms of…
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UK SMEs are facing growing cash flow pressure, with 40 per cent saying they have been forced to cut customer payment terms to protect their own finances, according to the latest SME Confidence Tracker by the UK’s largest independent invoice financier, Bibby Financial Services (BFS). With the Commercial Payments Bill yet to be passed, and…
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The UK risks developing an AI adoption divide between businesses embedding AI across their operations and those still experimenting with the technology, according to new NatWest research. The study of 1,400 UK SMEs and mid-market businesses found that 44% currently use AI and a further 41% expect to adopt it within five years. However, only…
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Latest data from Enterprise Nation has shown that 42% of small firms have been paid late during the past 12 months, compared with a range of 24% to 34% through 2023 and 2024. Among businesses employing staff, the incidence of late payment has more than doubled since summer 2024. The report also cites Small Business…
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The IoD Directors’ Economic Confidence Index, which measures business leaders’ optimism about the UK economy’s prospects, rose to -49 in August, from -63 in July 2026. Conversely, business leaders became slightly less optimistic about the prospects for their own organisations, with confidence falling to -5, from -2 in July. Most of the survey’s underlying indicators…
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The latest Red Flag Alert research from BTG has revealed that the number of businesses in ‘critical’ financial distress in Q2 2026 stood at 53,756, following a year-on-year increase of 9.0% from Q2 2025. More than 53,000 UK businesses are now in critical financial distress, with a further 674,000 firms experiencing significant financial distress. The number of businesses in critical…
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