Latest Insolvency Statistics – Businesses Should Remain Vigilant
The latest UK insolvency statistics were released earlier this month. They show a continued increase in the number of corporate insolvencies but a drop in the number of personal insolvencies.
Between July and September 2011, 4,242 companies entered liquidation (an increase of 6.5% from July to September 2010). During the same period, 206 companies entered into company voluntary arrangements (an increase of 29.6% from July to September 2010).
Between July and September 2011, 9,567 individuals entered bankruptcy. This is a significant drop of 31.2% from the same period last year. The number of people entering individual voluntary arrangements remained steady with there being 13,048 during July to September 2011.
Paul Hatton, comments “A positive to take from the latest figures is that the number of personal insolvencies has dropped. The number of company insolvencies remains high but steady. The total number of insolvencies shows that businesses need to remain careful and vigilant when providing credit. A business takes a significant risk if it extends too much credit to customers or takes too long to pursue outstanding invoices. If a customer becomes insolvent, the business faces the prospect of receiving no payment at all. Businesses should consider taking other steps to help minimise the risk of extending credit to a customer who is unable to pay, such as credit checks in advance, clear terms and conditions and personal guarantees.”
“The economy continues to place companies and individuals under financial pressure. Businesses should keep on top of the amount of credit allowed to customers and act promptly if there are warning signs about the customer’s ability or willingness to pay.”
If you would like to know more about insovency contact our litigation team on 0845 0738 445 or email firstname.lastname@example.org