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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

Eighteen months after the last Covid restrictions were lifted, it might be expected that SMEs would be relying less on new technology, especially technology allowing their employees to work from home. However, a survey last month suggests this is far from the case. SMEs Are Still Relying on Technology A study in September by Novuna Business Finance shows that 67% of small business owners consider technology to be hav

With the recent steep rises in the Bank of England’s interest rates, it was inevitable that mortgage repayments were going to rise. However, a recent survey suggests that the position is worse than most people expected. It’s now expected that monthly repayments will rise by an average of £617. The Research Results According to research by The Mortgage Lender (TML), 80% of homeowners are concerned about rising rates,

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

If a company enters into any form of insolvency, whether it’s a company voluntary arrangement, a pre-pack administration or a restructuring plan, it’s likely that one of the major creditors will be HMRC. It’s often believed that any taxes owed have to be paid first, before any other debts have to be considered. However, the situation is far from simple. Some recent cases have supported HMRC’s claims, while others hav

During the pandemic, SMEs worldwide assumed this was as bad as it got, and by this time things would have improved. In fact, 2023 seems to be even worse than the height of lockdown — in fact, the worst the economy has been since 2008. Strangely, though, this doesn’t appear to be causing gloom among business owners. A recent survey suggested that the vast majority of SMEs in the international business community are op

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