Scottish debt decrees fall to record low

The number of debt decrees registered against Scottish businesses fell to the lowest recorded level during 2016, according to figures released today by Registry Trust.

There were 3,523 business decrees in Scotland during 2016, 24 percent fewer than the previous year. The total value surged to £45.8m, the highest on record, but this was due to an unusually large decree against one company during the third quarter of the year worth £20.8m. Excluding this decree, the total value fell 13 percent to £25m and the average rose five percent to £7,095.

Excluding the single large decree, the average value of a company decree rose 20 percent to £11,054 compared with an 18 percent decrease to £3,732 for generally smaller unincorporated businesses.

“Scots are on top of their borrowing more than ever before, according to our latest evidence,” said Registry Trust chairman Malcolm Hurlston CBE. “This is good news for the economy ahead of Brexit uncertainty. Small unincorporated businesses may need to be on the alert though. We are beginning to see them being pursued in the courts for smaller and smaller debts. Getting on the register is something they should take steps to avoid as more efficient lenders are finding the court solution pays.”