Credit, Collections & Insolvency News
The cost of late payments to small businesses has more than doubled in two years, reaching £1.6 billion at the end of 2023, according to a report by Xero. The latest quarterly data shows small firms were paid, on average, 6.1 days late during the last three months of 2023. This figure shows no signs…
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Nearly one in three (31%) of business owners anticipate the potential closure of their businesses by the end of 2024 according to research by Novuna Business Cash Flow. Novuna says that the prospect of numerous businesses facing closure is sobering, a reality underscored by a recent ONS report, showing just 3% of businesses had temporarily…
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EY Item Club is predicting that bank lending is expected to remain subdued this year, with elevated interest rates tamping appetite for borrowing. The report says that bank lending to businesses will rise by only 0.8% amid weak demand for credit and restrictive borrowing costs. EY says that although the Bank of England is expected…
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Latest data analysis by Mazars has found that on average a dozen construction firms are going bust every day after 4,370 firms collapsed last year. In the year to the end of November, 4,370 companies went insolvent compared to 4,086 in 2021/22 and 2,481 in 2020/21. This reflected a 7% increase in insolvencies from 2021/22…
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Quantuma appointed administrators of peer-to-peer (P2P) lender ABLRate. Brian Burke, Sean Bucknall and Andrew Hosking from business advisory firm Quantuma as Joint Administrators of the P2P lending platform Aviation and Tech Capital Limited and ABLRate Assets Limited have operated a Peer to Peer (P2P) lending platform and facilitated crowdfunded loans which were used to finance…
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Eight in ten small business owners (81%) are planning to develop their companies in 2024 according to research from Novuna Business Finance. The research shows that over a third (33%) are focusing on new initiatives to increase income, whilst a fifth (20%) are looking to reduce their fixed costs. With around nine in ten small…
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A fall in customer numbers and spending is a top challenge for almost two fifths of mid-sized businesses (39%) over the next six months, as high costs remain a pressing challenge for households and companies alike, according to new data from accountancy and business advisory firm, BDO. According to BDO’s latest bi-monthly survey of more…
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The fourth quarter of 2023 saw financial services business volumes contract for the first time since June 2020, according to the latest CBI Financial Services Survey. Volumes are expected to be broadly flat over the next three months. The quarterly survey, conducted between 21 November and 15 December, also showed that optimism and profitability were…
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CFOs of the UK’s largest firms are optimistic about prospects for their own businesses as they enter 2024, according to Deloitte’s latest CFO survey. Sentiment among finance leaders has risen for the second consecutive quarter – to well above average levels – with a net 11% of CFOs more optimistic about the financial prospects of their…
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Small businesses (SMEs) in the UK face costs £10,000 higher than they were during the same period last year according to new research by Liberis. The research also indicates that the cash buffer provided by various government-led Covid Business Interruption Loans is quickly depleting. Small businesses, which have relied on these loans to weather the…
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The monthly Bank of England base interest rate announcement causes increased anxiety to two thirds of SME business owners according to a new study from Recognise Bank. The SME Mental Health Report 2023 surveyed the areas of business and events that have a significant impact on mental health, with the monthly announcement affecting 66.4% of…
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The number of SMEs using credit to fund insurance has risen as they battle to keep on top of increasing business costs according to research from Premium Credit. The analysis found 52% of firms now use credit to pay for insurance compared with 50% when it reported last year2. The average amount borrowed is nearly £1,100.…
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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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