August Insolvency Figures Show A Sharp Rise
Company insolvency figures for August 2022 have just been released and they paint a bleak picture.
Company insolvencies in England and Wales were 43% higher year on year and 42% higher than pre-pandemic levels.
Creditors’ Voluntary Liquidations (CVLs) have had a huge impact on the number of company insolvencies having risen 33% compared to August 2021 and soaring 73% since August 2019.
In Scotland the number of company insolvencies have increased 18% compared to August last year and rocketed 33% higher than August 2019, pre-pandemic levels.
The Current Economic Landscape
Recession fears are brewing in the UK and across Europe as energy costs hit businesses, inflation is at a 40 year high and the cost of living squeeze is impacting consumer spending.
We are in for a rocky Q4 where disposable cash will be scarce and the continued rise of company insolvencies across the UK that we are seeing month on month this year not only indicate businesses are struggling to survive, but many are struggling to find the cash needed to pay outstanding invoices.
Why credit control is vital for your business for Q4
Here at Darcey Quigley & Co we have been banging the drum about the need for businesses to implement more robust credit control processes all year and now we have reached make or break point for thousands of businesses in the UK.
With so many businesses at risk of failure the credit cycle is extremely delicate. The important thing to bear in mind here is even if you do not think your business is close to collapse your customers might be. And if they owe you for outstanding invoices then this could mean trouble for you.
Always pull a company credit report on your customers
The very first step for all credit control processes is credit checking the companies you do business with, even if they are repeat customers who you have taken orders from before.
Fully understanding your customers is key and pulling a company credit report will give you an indication of their credit worthiness based on their financials and recent payment behaviour.
A company credit report will also give you a recommended credit limit for your customer that will give you an understanding of what credit terms to offer whilst mitigating the risk of late or non-payment.
Credit control resources
We have put together our best resources to help you implement better credit control processes and help shield yourself from the rising insolvency figures.
A Complete Guide To Credit Control
How Effective Credit Control Can Help You Avoid Debt Recovery
Your Guide to Sending Payment Reminders & Chasing Late Payment
A helping hand to your credit control department
Darcey Quigley & Co offer an outsourced ledger management solution to compliment your business. Whether you have an existing credit control team or you handle all finances yourself, our credit control management service is here to support your business and your existing team.
We diligently work through your sales ledger to ensure all of your outstanding invoices are paid on time, saving your business time, whilst we credit check, monitor and chase outstanding invoices. Our dedicated commercial debt recovery team are always on standby to step in and recover late payments, ensuring a healthy cashflow for your business.
Think of us as an extension of your credit control service. Our bespoke professional approach means your customers will not know that we are an external company working on behalf of you and we take great care not to impact the existing professional relationship you have with your customers.
We are here for you from the initial call to confirm receipt of invoices through to the payment being received.
Recovering outstanding commercial debt
Here at Darcey Quigley & Co we have been collecting commercial debts from around the world for the past 17 years. Our track record speaks for itself with a 5 star rating on Trustpilot.
Whether you have commercial debts in the UK or you have a customer overseas who is not paying you, we are here to help. Find out more about our UK commercial debt recovery services and our approach to international commercial debt recovery.
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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