Latest report indicates increase in insolvency figures

Latest report indicates increase in insolvency figures

The latest red flag research report for Q3 2021 from Begbies Traynor, which monitors the financial health of UK businesses, has indicated an increase in insolvency figures. This is due, according to Ric Traynor, executive chairman of Begbies Traynor Group, partly because “Companies are taking a tougher line to recover debts, as evidenced by the recent rise in insolvency levels…. real concern amongst many SME directors about their ability to pay back Government backed bounce back loans with many directors exploring short to medium term insolvency options.”

There has been a 139% rise in CCJ’s during Q3 2021 as businesses resort to using the courts to recover debts. The research also revealed 562,550 businesses in “significant financial distress”, with a 17% rise in “more serious critical business distress” in the past quarter.

It is also the case, according to Mr Traynor, that “…many directors say that HMRC is taking an increasingly aggressive line in chasing debts, particularly those who have defaulted on time to pay arrangements and thirdly many businesses are coming under considerable pressure from landlords chasing debts”. Read the full story from Accountancy Today.

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If you are a director of a company and are facing issues with debts, or if you have general financial problems, then please get in touch and we can discuss the various options you have available to deal with the issues. Contact Richard Ludlow, Dan Sherlock or Alistair Rustemeyer or call 01732 441695 for an initial conversation on your individual options.