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In any time of economic uncertainty, there’s likely to be an increase in companies going into liquidation. The recent collapse of Wilko has focused our attention on this issue, and no doubt many company directors are feeling nervous. The position of a director of an insolvent company can be problematic in certain circumstances. In general, however, there shouldn’t be too much to worry about. Insolvency fo

There are various reasons why you might need to examine another company’s books. You should certainly do so if you’re considering investing in the business, but you may also want to get a better idea of their finances before offering credit. But what should you be looking for? Turnover? Profit? Or is it better to look at cash flow? Why Is Cash Flow Important? Profit and turnover each give only a very partial picture

Buy Now Pay Later (BNPL) has grown massively over recent years, with options to defer payment being offered for everything from clothing to groceries. Used responsibly, this can be an effective method of obtaining credit to give flexibility in budgeting. However, it can also lead consumers into spiralling debt. The government promised to introduce regulation for the sector, but recent reports suggest they’re consider

Business owners generally focus most on the sales that bring in the income, rather than on their suppliers. That’s understandable, but it can also be short sighted. Recent research by retail bank Aldermore has found that well over half of SMEs have suffered supply-chain problems in the past year — and this has cost a total of £1.9 billion. Why Are There Supply Chain Delays? Disruptions to supply chains have been goin

There have been many signs recently that the economy is in trouble, most obviously the most recent announcement of interest rate rises. Another troubling sign, though, has been given less publicity — a sharp rise in business insolvencies in May. What’s behind this, and what does it mean for you as a business owner? The Rise in the Figures Business insolvency figures have been rising for a while, but it’s been possibl

In these times of financial stress, large numbers of people, both consumers and small business owners, are seeking debt advice. A good deal of the advice out there is excellent, but there are exceptions. There’s been concern expressed for some time about the referral fees charged by debt packaging companies and whether this creates bad advice. It seems that the Financial Conduct Authority (FCA) share this concern, an

While the current economic problems in the UK can’t really be laid at the feet of consumers, there’s no doubt that widespread poor financial management isn’t helping matters. This ranges from naivety in investment to a general “have it now, pay tomorrow” culture that’s fuelling debt. A recent survey suggests that this isn’t set to improve. The study, by Compare the Market and MyBnk, found that only 41% of young adult

During the Covid pandemic, surprisingly few companies went into administration. This was because a raft of government support measures, such as furlough and bounce-back loans, allowed struggling companies to survive. But this is over, now, and it’s showing, with new issues adding to the effect. The number of companies entering administration in March 2023 was the highest for three years. The Covid Effect on Administr

Are you being held back by cash flow problems caused by late payment of invoices? You’re not alone. A recent report by Time Finance found that SMEs are owed an average of about a quarter of a million pounds in outstanding invoices. At the same time, the Federation of Small Businesses (FSB) has reported that 52% of small businesses have experienced late payments. Are you among these? And, if so, what can you do about

The Insolvency Service has released figures which show that nearly 88,000 Individual Voluntary Arrangements (IVAs) were registered in England and Wales in the course of 2022. This represents the highest figure since 1990, when records began. So what are IVAs, why have they increased so much, and what might it mean for you as a creditor? What Is an IVA? Introduced in 1986, an IVA is a formal alternative to bankruptcy