Credit, collections & insolvency news
A poll of over 700 Institute of Directors (IoD) members following the Chancellor’s Budget Statement has found that two-thirds (67%) of business leaders feel negatively towards the Autumn Budget and two-thirds (67%) think that it does not support the Government’s growth mission. Separately the IoD Directors’ Economic Confidence Index, which was polled wholly before the…
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New analysisfrom Premium Credit has shown that the Construction sector borrows the most to fund insurance but the Wholesale and Retail Trade sector is the fastest-growing. Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, shows 55% of SMEs now use some form of credit to pay for insurance borrowing an…
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Businesses need to change the way they respond to global risks if they want to stay competitive, according to a new report from accountancy and business advisory firm BDO. The firm’s annual risk report found that business leaders are facing almost permanent disruption. Indeed, 84% of respondents to its survey said that the global risk…
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Over half (53%) of UK businesses have been forced to reject potential customers due to a lack of risk visibility, with 61% stating that excessive workload forces them into reactive firefighting instead of proactive risk management according to research by Dun & Bradstreet. The study of compliance decision makers reveal increased pressure on compliance teams,…
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A survey by invoice finance company Novuna Business Cash Flow has found that 34% of SMEs could cease trading if unable to secure funding. The figure contrasts sharply with the surprising revelation that 50% of SMEs have not sought any form of financial assistance since November 2023, despite the precarious position many find themselves in…
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The levels of ‘critical’ financial distress jumped dramatically in Q4 2023, up 25.9% on the prior quarter (Q3 2023: 37,772), leaving more than 47,000 businesses near collapse in the UK at the start of 2024 according to Begbies Traynor. This represents the second consecutive period where critical financial distress has grown by around a quarter.…
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Nearly 4,500 retailers are in critical financial distress as lacklustre Christmas sales performances, combined with persistent inflation and interest rates at levels not seen in decades, pile on the pressure according to a report by insolvency firm Begbies Traynor. Critical financial distress rose considerably across the whole retail sector, with Food & Drug Retailers up…
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The private sector activity fell slightly in the three months to December (weighted balance of -8%, from -11% in the three months to November), according to the CBI’s latest Growth Indicator. The latest decline extends a stretch of one-and-a-half years without growth, a trend which firms expect to continue in the new year (-6%). Services…
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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 difficulty small business owners are experiencing accessing funding without having to sign a personal guarantee has become clear according new analysis by Purbeck Insurance. The company say that October 2023 saw the largest number of small business owners ever recorded, taking insurance to mitigate the risk of signing a personal guarantee as a condition…
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Business confidence fell to 36% in September, a five point dip from the 18-month high (41%) recorded in August, as companies saw a decline in both economic optimism and trading prospects for the year ahead. While confidence has fallen it remains higher than the first three months of 2023 (20%). Firms’ trading prospects were down…
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The Bank of England has warned that rising interest rates are putting British companies at higher risk of corporate defaults, with the proportion of non-financial companies experiencing debt-servicing stress expected to hit 50% by the end of the year, up from 45% in 2022. The proportion rose to 70% for medium-sized companies, meaning corporate debt…
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New data from Begbies Traynor has revealed that there has been an increase in the number of North West firms faceing significant financial distress as inflation and interest rates bite. In Quarter 2 of 2023, the number of firms in the North West operating in ‘significant’ financial distress was 45,579 according to the research. This is…
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