The government is pressing ahead with its plans to make large businesses report on how quickly they pay their suppliers. Ministers believe the move will help smaller firms to grow and prosper. It comes as the latest figures show that SMEs are owed £26.3 billion in overdue invoices. From April this year, large companies and
The decision to leave the EU has already hurt business finances and will quickly lead to a rise in corporate insolvencies, according to a survey of its members by the insolvency and restructuring trade body, R3. Its figures show that 72% of respondents believe the referendum result will cause corporate insolvency numbers to rise by
The government has announced new regulations to help small businesses get paid quicker when supplying large companies. The new ‘duty to report’ will require large companies and limited liability partnerships (LLPs) to publicly report twice yearly on their payment practices and performance, including the average time taken to pay supplier invoices. It’s hoped this will
An estimated 3,633 companies entered insolvency in the third quarter of this year. That was increase of 2.2% on the previous quarter and a 1.1% increase on the third quarter of 2015. The figures were released by the Insolvency Service, which says the trend in case numbers has been fairly flat over the last year,
The government has announced measures to strengthen the Prompt Payment Code and reduce the financial pressure on businesses. The measures are outlined in a letter to signatories of the code from Small Business Minister Margot James, and Philip King, Chief Executive of the Chartered Institute of Credit Management. These are some of the key points:
The number of county court debt judgments against businesses in England and Wales has fallen to its lowest level for seven years. Figures compiled by the Registry Trust show there were 42,091 county court judgments (CCJs) recorded against businesses during the first six months of 2016, a year on year fall of 19%. The total
An increasing number of consumers are defaulting on payments even though they have sufficient funds to cope, according to recent research. A survey of 1,500 people carried out by Echo Managed Services found that 48% had withheld payments because of customer service or billing issues. Nearly 1 in 8 people had refused to pay an
A government proposal to have a 90-day moratorium for failing businesses could have serious consequences for creditors, according to the Chartered Institute of Credit Management (CICM). The warning comes from CICM Chief Executive Philip King in response to a review of the corporate insolvency framework being undertaken by the Insolvency Service (IS). One of the
More than 100,000 businesses were owed money by insolvent companies or customers in 2015, according to figures released by the insolvency specialists, R3. Medium-sized businesses were among those most at risk. One in seven of them were owed money by an insolvent individual or company. The president of R3, Richards Sykes, said: “Growing businesses encounter
Businesses can expect to face major financial difficulties over the coming year, according to research by the insolvency specialists, Begbies Traynor. The company’s Red Flag Alert, which monitors the financial health of UK companies, found that 268,898 businesses ended the final quarter of 2015 suffering significant financial distress. That was a 17% increase on the