Businesses should seek expert advice early to survive insolvency crises, says ICAEW

“The difference between businesses that survive and thrive and those that fail is how well they manage difficulties”, comments Clive Lewis, Head of Enterprise for the Institute of Chartered Accountants for England and Wales (ICAEW) as his organisation warns that business insolvencies are set to increase in Quarter 1, 2018.

With more than a century’s experience of helping businesses manage credit effectively, we at CPA are eminently well qualified to endorse Clive Lewis’s view that —

“Owner/managers must know where they are on the decline curve – help must be sought early as they move beyond underperformance into a period of stress, before they reach crisis point. If they do so, it is possible to move away from insolvency, towards crisis management, stabilisation and finally onto recovery.”

While ICAEW’s underlying 2017 business insolvency figures showed an 11% reduction compared with the previous year, figures for Quarter 4 (Q4) showed a mixed picture, with fewer business insolvencies than in Q3 but no change in individual insolvencies.

ICAEW believes that these figures will deteriorate for businesses during Q1 2018, as consumers reduce their discretionary spending post Christmas in favour of basics, such as food. As well as more business insolvencies, ICAEW predicts more personal bankruptcies, particularly individual voluntary arrangements.

If you supply goods or services on credit, then CPA has the ability proven over decades to help ensure you avoid financial crises wherever possible and act early to counter them when they are unavoidable.

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