A quarter of UK companies say they’ve suffered a hit to their cash flow and longer-term finances because of the insolvency of a customer over the last six months. The research by the insolvency and restructuring trade body, R3, found the financial impact of the insolvency of another business was described as “very negative” by
The Federation of Small Businesses (FSB) has called on the UK’s leading companies to address the issue of late payments. FSB Chairman Mike Cherry sent a letter to the leaders of the FTSE 100 companies urging them to lead the way in eliminating late payments that can cause huge cash flow problems for smaller firms.
A sole trader has won a long running battle against a bankruptcy order after his business got into difficulties due to a cash flow crisis. The trader, Mr Rafferty, bought and sold packaging machinery. Some his customers were late settling invoices, so he was unable to pay £14,000 to a company called Sealants International Ltd.
The government has outlined plans to provide more protection for small and medium-sized businesses who supply companies that become insolvent. It also wants to prevent directors from unfairly shielding themselves from the effects of insolvency. Ministers say that in the worst cases, directors can even profit from business failures while workers and small suppliers lose
The number of companies entering insolvency in England and Wales rose to more than 17,000 last year, according to research by the trade body R3. That was an increase of 2.5% compared with 2016. Duncan Swift, deputy vice-president of insolvency and restructuring trade body R3, said: “The slight rise in corporate insolvencies across 2017 as
There’s been a rise in the number of firms experiencing financial difficulties as the rate of business growth slows to its lowest level in four years. Research by the insolvency and restructuring trade body, R3, found that the number of companies reporting one or more signs of growth fell to 53% in September 2017, down
Good cash flow is the life blood of any business so it’s essential to monitor overdue invoices and act quickly to ensure payment. Failure to act promptly could mean your firm incurs damaging losses if a defaulting customer becomes insolvent and can’t afford to pay you. There are several early signs that a customer may
More than 30 of the government’s biggest suppliers have voluntarily committed to pay 95% of invoices within 60 days – and to work towards adopting 30 days as the norm. The commitments are part of the Prompt Payment Code (PPC) initiative, which aims to ensure that small businesses are paid on time. The PPC sets
More than 79,000 businesses in the UK say they would not be able to repay their debts if interest rates were to rise by even a small amount. That’s an increase of nearly 60,000 since last September. The figures are based on a long running survey conducted by the insolvency and restructuring body, R3. Its
The recent changes to corporation tax loss relief could lead to more business failures, according to the insolvency specialists, R3. From 1 April this year, companies are only allowed to write off 50% of past losses from future corporation tax bills, rather than the previous 100%. The changes are expected to raise £1.6bn over the