Company Insolvencies Soar 40%
The number of company insolvencies in England Wales have soared 40% in May 2023 compared to May 2022, with 2,552 companies failing last month.
This was driven by a 38% increase in Creditors’ Voluntary Liquidations (CVLs), with 2,181 companies winding up due to not being able to pay their creditors outstanding balances.
In Scotland company insolvencies rose 4% in May this year vs 2022 figures, with 97 companies failing. 57 of these were CVLs.
What does this mean for your business
Such a significant rise in companies going bust should be sounding off alarm bells.
It has consequences for the UK economy as a whole and could have a direct impact on your own business.
If your customers are other businesses then there is a serious risk these customers could be at risk of insolvency, even if you do not perceive your own business to be threatened with closure.
Unpaid invoices will rise
As more businesses close, the balances they owe for unpaid invoices will likely be lost, triggering a chain reaction across industries as their suppliers then lose out and may then have difficulties themselves paying their overheads.
Contractual Obligations
Other businesses that have contracts or agreements with the insolvent company may face challenges.
These contracts may be terminated or renegotiated during the insolvency process, impacting revenue and future business prospects.
Reputation and Confidence
Corporate insolvencies can shake investor and consumer confidence in the affected industry or sector.
The failure of a high-profile company can lead to a loss of trust in other businesses operating within the same market, making it harder for them to attract investment or maintain customer loyalty.
Industry Impact
In certain cases, the insolvency of a major player in an industry can have a ripple effect on the entire sector.
This can lead to market consolidation, reduced competition, and increased barriers to entry for new businesses, making it more challenging for other companies to thrive.
Opportunities for Competitors
Insolvencies can create opportunities for competitors to expand their market share, acquire assets or intellectual property, or attract talent from the failed company.
Competitors may also benefit from reduced competition and potentially higher pricing power.
Race against time to recover your unpaid invoices
We are seeing a ticking time bomb of company insolvencies as they continue to rise.
If you are owed for overdue invoices it is time to take action or else risk losing out on what you are owed.
Schedule a call for a free consultation with our debt recovery specialists.
Why choose Darcey Quigley & Co to recover your overdue invoices
- We operate on a no win, no fee basis.
- Cases actioned within 1 hour with 48 hour turnaround.
- 93% success rate recovering overdue invoices.
- Fees starting from just 3%.
- Recover late payment interest and compensation on your behalf with an 89% success rate recovering additional charges.
- UK & International coverage.
- Rated 5 Stars on Trustpilot.
Did you know you can claim late payment interest & compensation on your overdue invoices?
The Late Payment of Commercial Debts Act means business are legally eligible to add late payment interest and compensation on their overdue invoices.
Find out how much you can claim with our free calculator!
Lynne is the Founder and CEO of Darcey Quigley & Co.
She is passionate and determined to help businesses get overdue invoices paid quickly.
Having worked within the credit management industry for over 27 years and ran UK leading commercial debt recovery specialists Darcey Quigley & Co for over 16 years, Lynne has helped businesses recover commercial debts from every continent across the globe.
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