Credit, Collections & Insolvency News
Analysis of the Bank of England’s data1 in Ebury’s SME Borrowing Tracker shows that SMEs decreased their debt by £4.4 billion across 2024, reinforcing nearly three years of falling debt among SMEs, following the significant ‘debt pile’ accumulated during the pandemic. However, the final three months of 2024 marked the first quarterly uptick in SME…
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Newly published research has revealed that nearly one in three firms surveyed (31%) believe they’ll need to embark on a wave of redundancies in the coming year according to research Evelyn Partners. The research also showed that 30% of business owners polled say it’s likely they’ll default on debt over the next 12 months. The research…
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The value of bad debt suffered by small businesses has surged by a staggering 127 per cent in the last six months, according to a report by SME funder, Bibby Financial Services (BFS). According to the latest SME Confidence Tracker from Bibby, businesses have written-off an average of nearly £40,000 in unpaid invoices in the…
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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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New research by the Business Debtline has revealed the impact of the cost of living crisis on struggling small business owners, with a majority of callers to the free debt advice survey going without essentials and worrying about meeting their commitments – and a third turning to credit to help cover essential household bills. The…
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A new survey by NerdWallet has found that over half (55%) of businesses still have outstanding invoices from the last tax year (2022/23). Business debt seems to be getting worse with time, as 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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A Freedom of Information request to the British Business Bank by Purbeck Personal Guarantee Insurance has revealed the current level of debt and arrears associated with the Bounce Back Loan Scheme (BBLS). The Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan Scheme (RLS). Purbeck’s analysis shows that over 145,000 BBL loans worth £3.8 billion…
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New research published by Bibby Financial Services (BFS) has revealed the extent to which the UK’s small and medium sized enterprises (SMEs) are exposed to substantial debt stress with the average bad debt amongst UK SMEs jumping by 61 percent. The average level of debt has risen from £10,329 in Spring 2022, to £16,641. Currently,…
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Cost pressures, falling revenues and a growing reliance on debt to prop up cashflows are among the gloomy findings of the latest Small Business Index (SBI) from the Federation of Small Businesses (FSB). The quarterly temperature-taking survey reveals the greatest level of pessimism among small business owners outside of lockdowns, with a net confidence score…
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The value of UK business loans written off by banks nearly doubled in the last quarter of 2021, rising 87% from £190 million in the third quarter to £356 million in the fourth quarter according to research by debt advisory specialists ACP Altenburg Advisory. Altenburg explains that write-offs of loans have been subdued throughout the…
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An economic research report by Atradius has found that many developing countries are facing a triple crisis in 2022 with the impact of the pandemic is being felt across the globe, particularly in small island economies which have historically been heavily reliant on tourism. Existing debt vulnerabilities were only aggravated by the pandemic. With global…
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The number of business insolvencies (liquidations and receiverships) in Scotland rose by 58% in October 2021 when compared with October 2020 according to latest Accountant in Bankruptcy (AiB) figures. In October 2021 there were 68 company insolvencies registered in Scotland, 58% higher than in October 2020 but 18% lower than in October 2019. This comprised…
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The Government has announced new laws and a Code of Practice to resolve the remaining commercial rent debts accrued because of the pandemic, Under the new code, commercial tenants will be protected from eviction until 25th March 2022, this follows government action last year to provide firms with breathing space and help protect jobs when…
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