Armageddon of Corporate Insolvencies Continues
The Armageddon of corporate insolvencies we’ve witnessed all year shows no sign of slowing down, after some frightening statistics were shared from the month of November.
2,029 company insolvencies were registered in England and Wales last month, an increase of 21% year on year and 35% higher than pre-pandemic levels!
The scene in Scotland paints a similar picture with a rise of 13% in registered company insolvencies year on year and a dramatic rise of 36% compared to pre-pandemic levels.
The number of Creditors’ Voluntary Liquidations (CVLs) reported in November 2022, 1,595, is stark as they currently sit 50% higher than pre-pandemic levels meaning we are still feeling the economic impact.
Where do we go from here?
We have already seen the number of company insolvencies hit a 13 year high earlier this year and the signs tell us that company insolvencies will only continue to rise through 2023.
After entering a recession in October this year, the BCC does not expect the UK economy to return to growth until Q4 2023.
The effects of a year-long recession is going to have a disastrous impact on businesses across the country, meaning many will be unable to afford to pay their debts, putting hundreds of thousands of companies at risk of failure.
Don’t lose out on monies you are owed
Even if you don’t think your business is at risk of insolvency there is a big chance that your customers could be.
When a business becomes insolvent it is extremely difficult to recover any monies they owe.
If you are owed money from another business, the longer you leave it the harder it will be to recover and the higher likelihood that you will need to write it off as bad debt.
The key to recovering what you are owed is acting quickly.
You need to always be on the ball when it comes to chasing payments as soon as they become overdue.
By being proactive you are encouraging payment to be made sooner rather than later.
Regularly following up with your customers regarding payment will give an indication as to whether a payment is likely to be made.
When payment is not made on time and you either hear excuses or get the cold shoulder it is critical you escalate matters, fast!
How we can help your business
Here at Darcey Quigley & Co we’ve been recovering commercial debts from all over the world for the past 17 years.
We approach commercial debt recovery with the relationship between you and your client in mind. We understand the relationship with customers is a priority for the majority of our clients so you can continue to do business together.
We tailor our approach to ensure brand protection, recovering your overdue invoices, whilst also protecting the business relationship you have with your customer.
Why choose us
Risk-free debt recovery – No Win, No Fee
93% success rate recovering overdue invoices
Dedicated credit management consultant handling your case
Cost effective – fees from just 3%
Recover additional late payment interest & compensation
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Meet our credit management and commercial debt recovery content writer, Declan!
With a keen eye for detail and a passion for educating others, Declan is committed to creating informative and engaging content that empowers readers to get a firner grasp of their credit control to improve their cashflow.
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