Credit, Collections & Insolvency News
The percentage of small businesses predicting growth for the next three months (28%) remains largely unchanged from last quarter (27%) – although 78% of enterprises go into the summer fearing the economic impact that geo-political and economic tensions will have on their businesses, according to new research from Novuna Business Finance. Based on polling a…
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The IoD Directors’ Economic Confidence Index, which measures business leaders’ optimism about prospects for the UK economy, dropped back to -63 in February 2026, from -48 in January. Business leaders’ confidence in their own organisations also fell, to +1 in February from +14 in January. There were also declines in many of the underlying indicators,…
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Latest Red Flag Alert research from Begbies Traynor has revealed a considerable 43.8% year-on-year increase in ‘critical’ financial distress in Q4 2025. Throughout 2025, UK businesses continued to grapple with a prolonged period of economic uncertainty, rising operating costs driven by inflation and higher wages, increased tax burdens, elevated interest rates, and weakened consumer demand. The persistence…
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New data analysis by Growth Flag has highlighted that thousands of UK firms projected to deliver strong growth next year are already showing signs of financial strain. The research, which analysed more than 4.3 million UK businesses, found a shrinking pipeline of firms achieving strong growth and a widening base of companies under pressure. Just…
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New data from Purbeck has shown that 38% of SME loans taken in October were purely for working capital, to sustain cash flow. This is the highest proportion the business has recorded since the start of 2025. According to the latest Barclays Business Prosperity Index, 55% of SMEs have paused investment plans amid heightened economic…
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New research by Purbeck Insurance Services has revealed that one in three SME loans has a personal guarantee (PG) in place. With 36% of these loans for working capital to keep the business afloat, Chancellor Rachel Reeves is being urged to avoid any further measures that would raise operating costs and increase the burden on…
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Business confidence in the UK’s services sector has significantly declined in the quarter to August, albeit at a somewhat slower pace, according to the latest CBI survey. Companies are facing profit squeezes due to rising costs and falling sales, leading to reduced hiring and investment. With average selling prices rising at a much slower pace…
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A record number of companies are in “critical financial distress according to latest Red Flag Alert data, which shows that there are 49,309 firms on the brink of insolvency. The figures mark a 21.4% increase from a year ago. All 22 sectors surveyed reported a rise in ‘critical’ financial distress over the previous 12 months.…
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As economic pressure mounts and further tax hikes loom, over half (54%) of small and medium-sized businesses (SMBs) say one more major cost hike could force them to shut down. The same number believe today’s economic climate is even more volatile than the Covid-19 crisis, according to research by Dext. The research shows that a year…
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A survey from the Confederation of British Industry (CBI) indicates that private sector businesses anticipate a decline in activity over the next three months. The companies expect activity to fall at a firm pace in the three months to September (weighted balance of -18%). Expectations are less negative relative to May, but extend a period…
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Business decision-makers are becoming ‘paralysed’ by constant crisis and their excessive caution is limiting growth opportunities, a new report from accountancy and business advisory firm BDO has warned. In total, 84% of international business leaders surveyed as part of BDO’s annual Global Risk Landscape Report 2025 said the global risk landscape is now, more than ever, defined…
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One in five small businesses are turning to credit cards to manage cash flow, highlighting a growing trend among entrepreneurs facing unpredictable income and rising expenses. While credit cards can offer flexibility and short-term relief, relying on them without a strategy can quickly spiral into high-interest debt and financial strain. The British Business Bank found…
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One in five (19%) UK-listed companies issued a profit warning in 2024, the third highest annual proportion in 25 years, behind only the 2020 pandemic (35%) and the impact of the dot-com bubble burst and 9/11 in 2001 (23%). EY-Parthenon’s latest Profit Warnings report found that UK-listed companies issued 274 profit warnings last year – including 71…
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