When a dispute arises in relation to unpaid invoices people often try to manage the situation themselves instead of seeking legal advice as they are concerned about being charged extortionate fees for a relatively small debt. Although the small claims track in the county court is relatively ‘user friendly’, an incorrect claim form can lead
Late payment of invoices has become so serious that the Government has set up a working group to help tackle the problem. Ministers also want businesses to sign up to its Prompt Payment Code, which already represents about 60% of the supply chain value in the UK. The Code is designed to encourage best practice and
The Office of Fair Trading (OFT) has updated its Debt Collection Guidance, which sets out the standards required of any business involved in recovering consumer credit debts. The revised guidance highlights specific practices that the OFT considers to be unfair, such as using Facebook, Twitter and other social networking sites to contact debtors. It says
The stakes have never been higher for businesses when it comes to dealing with the problem of late and non-payment of invoices. Record numbers of firms are going out of business every day. Their demise is often caused by their inability to recover money owed to them. Thankfully, there are many options available when it
Debtors may soon have to owe £3,000 or more before creditors can petition for bankruptcy. The current level is £750. The proposal to raise the threshold has been put forward by the Business Minister Edward Davey as part of the Government’s review of debt advice and personal insolvency. It follows a public consultation and call
Many businesses are failing to take simple steps that could protect them against late payers, according to research by the Institute of Credit Management (ICM). A survey of ICM members found that a quarter of them don’t use the payment performance data provided by B2B credit reference reports. Researchers also found that two thirds of
There’s been a large increase in the number of firms facing critical difficulties, according to new research. The Red Flag Report produced by Begbies Traynor shows that 186,554 UK businesses were experiencing significant or critical financial problems in the first quarter of this year. That was a 15% increase on the same period in 2010.
Struggling businesses could be ‘pushed over the edge’ Those are the findings of a survey of 500 companies carried out by the insolvency trade body R3. R3’s Business Distress Index, which covers the last quarter of last year, found that the number of businesses reporting decreased profits rose to 54% – an increase of 5%
The number of companies going out of business in England and Wales fell dramatically last year, according to figures from the Insolvency Service A total of 4,905 businesses went into receivership or administration, or entered into company voluntary arrangements in 2010. That was a fall of 23% on 2009, which was the record year for
New research has revealed that businesses are becoming increasingly worried about the twin problems of rising debts and falling profits. Surveys carried out by the insolvency trade body R3 show that one in five businesses (19%) are worried about the amount of debt they owe to their creditors. At the same time, more than 850,000