More Companies Continue To Fail Due To Insolvency
The swathes of companies going bust in the UK show no signs of slowing down as company insolvencies increase 16% in England & Wales and 21% higher in Scotland.
March corporate insolvency figures shows 2,457 businesses entered liquidation or administration in England & Wales. This is 16% higher compared to last year and even higher than pre-pandemic figures!
In Scotland there’s a similar story being told with 140 insolvencies, 21% higher year-on-year.
Creditors’ Voluntary Liquidations (CVLs)
The most problematic trend we are seeing is the continued rise of CVLs, companies forced into liquidation as a result of them not being able to pay their creditors.
2,011 CVLs were recorded in England & Wales in March, 9% higher than March 2022.
Of the 104 insolvencies recorded in Scotland, 61 were CVLs.
Businesses are being forced to close as a direct result of the late payment crisis gripping the UK!
What the rise in corporate insolvencies means for your business
Company insolvencies can have various impacts on your business, depending on the nature of your relationship with the insolvent company. Here are some possible implications:
If the insolvent company owes your business money, it is likely that you will not receive the full amount, or possibly any amount, that is owed to you.
This can cause cash flow problems for your business, especially if the amount is substantial.
Our advice is to act quickly if you are owed for outstanding invoices.
Supply chain issues
If the insolvent company was a supplier to your business, its insolvency could disrupt your own operations, as you may need to find alternative sources of supply.
This could lead to delays, increased costs, and potential quality issues.
If the insolvent company was a major player in your industry, its collapse could have a broader impact on the industry as a whole.
This could lead to changes in market dynamics, increased regulatory scrutiny, and reduced investor confidence.
Shielding your business from risk
As the number of companies going into liquidation continues to rise significantly it’s critical your business starts taking steps to protect itself from this threat to cashflow.
If you have unpaid invoices, you should address these first.
If they are slightly overdue you should be contacting the business who owes you chasing for payment.
Not sure where to start with chasing payment? Take a look at our article on chasing late payment with letters & emails.
In the event you aren’t getting anywhere after having chased your unpaid invoices it’s time to take action quickly to ensure the best chance of recovering what you’re owed.
Adding late payment charges to your account
Did you know you are legally entitled to add late payment interest, compensation, and debt recovery costs on top of your overdue amount?
Use our free calculator to find out exactly how much you are entitled to claim!
When you action a case with us here at Darcey Quigley & Co we endeavor to also recover late payment interest, compensation and debt recovery costs on your behalf, and we have a 94% success rate doing so.
Are you worried about your overdue invoices?
If unpaid invoices are playing on your mind let us see how we can relieve the burden.
Schedule a call for a free consultation with our debt recovery specialists.
Reasons why you should consider Darcey Quigley & Co for recovering 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.
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.
Connect with me on LinkedIn!