UK Insolvencies Set to Jump

6th March 2018.

Britain is poised to suffer the second largest increase in business failures of any leading global economy this year, a trade credit insurer has warned.

Euler Hermes has predicted that Britain is set to see a massive rise in insolvencies, with only China experiencing a sharper increase in corporate insolvencies in 2018. The weakness in the Pound and the pressures from the European Union are having an effect on profit margins and business investment. The continued late payment culture of the UK, as well as the rise in interest rates, are also weakening many businesses across the country.

At the Credit Protection Association, we aid many of our members who are on the brink of insolvency. We encourage business owners to seek our services before charging over that brink as our expertise and debt recovery experts can stop you from becoming another statistic.

Milo Bogaerts, chief executive of Euler Hermes UK and Ireland, said: “The rise in insolvencies has the potential to start a domino effect of overdue or non-payment, which can impact large companies and smaller suppliers throughout supply chains.

“At the same time, two possible base rate increases this year may progressively translate into higher interest costs for companies and households.”

Insolvency should always be a major concern for business owners, and ignoring its possibility leaves businesses vulnerable to economic downturns and issues within the supply chain. Since Brexit, many business owners have been reluctant to invest in large projects and business confidence has been shaky as a result. Businesses do not only need extra cash to offset any insolvency concerns, but also the confidence that their business will not run into trouble further down the line.

At the Credit Protection Association, our thorough credit reports and credit checking facilities allow our members to keep their businesses safe. We also provide monitoring tools to allow our members to scrutinise their customers in the long term. You can have the most successful and thriving business, but if you aren’t privy to all your customers and suppliers’ financial past and present, it could all come crashing down.

If you think you are in danger of becoming another insolvency statistic, don’t despair. If you are struggling with your cash flow and concerned for your business’ prospects, come to CPA first before you consider liquidation. We will recover bad debt, chase late payers, and you will be back in the driving seat in no time!