Over the past six months, many businesses have had a false sense of security. A raft of government support schemes have been keeping them afloat — but these will be ending soon. So how devastating will the lockdown be on SMEs? The Insolvency Landscape It may seem strange that global insolvencies are actually down on last year’s figures. The UK is typical of this, with a fall of over 20%, in spite of so many hig
If there’s one thing that unites virtually all SME business owners, it’s the scourge of late payments. This is always a problem, especially for those operating on narrow margins, but the pandemic seems to have turned it into a crisis. The Scourge of Late Payments The great majority of SMEs don’t enjoy the huge cash reserves and almost unlimited credit enjoyed by the giant companies. If they’re
Since the Covid-19 lockdown began, it’s been difficult not only to initiate claims for debt recovery, but even to enforce orders already granted by the courts. This is because many enforcement visits have been suspended, making repayment entirely dependent on the debtor choosing to obey the order. However, the lockdown is being gradually eased. We can eat at a restaurant, enjoy a pint at a pub and even have a h
It’s a sad reality that in the coming months, as government support schemes for businesses wind down, we are likely to see a high number of companies going into liquidation. On occasion, this can be a planned, natural end to a business, but most often it’s forced on the directors by economic reality. So what exactly does liquidation involve? Solvent Liquidation There are sometimes reasons for winding up a
As you’re no doubt aware, in March the government brought in measures effectively preventing landlords from evicting tenants during the coronavirus lockdown. This was originally intended to run until this month, but the government has now extended the moratorium on evictions until 23rd August 2020. What Does This Mean for Me? One expected announcement that hasn’t materialised is that tenants would be gran
Did you know that your business email footer must contain specific pieces of information by law? The Companies Act (UK letterhead legal requirements) states that all business must display the following business details on their letterheads. The name of their business The part of the country that the business is registered The registered company number The address of the registered office Furthermore – if you’re a par
Every day brings more news of major businesses in trouble due to the coronavirus lockdown. Airlines have been particularly hard hit, for example, with Virgin Atlantic cutting 3,000 jobs and closing their Gatwick operation, while British Airways are also considering pulling out of Gatwick. The problems aren’t confined to big business, though. Depending on the sector, many SMEs have also been badly hit. The Chall
The cost of recovering debts through High Court Enforcement can be substantial — although considerably less than writing off the debt. However, there’s general confusion about one element — VAT. Should it be paid by the creditor, the debtor or not at all? Why Would You Use High Court Enforcement Officers? If you’ve received a court judgement in your favour for a debt that you’re owed but the debtor doesn’t immediatel
If you’ve been a landlord for any length of time, you’ve probably experienced the procedure when a tenancy ends by mutual consent. Among the steps that must be taken is the return of the tenant’s deposit. This is usually a fairly straightforward process, but occasionally there may be a dispute over what exactly you need to return. Regulations About Deposits When you take a tenant’s deposit at the beginning of the ten
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