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Are you one of the many SME owners who have been forced to close your business, wholly or partially, during the Covid-19 lockdown? If you have Business Interruption insurance that covered closure due to disease, you may have been one of the policyholders refused payment by your insurer. However, there’s good news. A ruling by the Supreme Court on the 15th January has established that in most cases closures due

2020 has been a difficult year in so many ways. Quite apart from the struggles of living in lockdown, the disruption has had a devastating effect on many bank balances. Two recent reports show the growing level of hardship many households are facing and the debt burden being taken on to cope with this. 30% of Households Facing Hardship Research by the Resolution Foundation suggests that incomes have fallen significan

During the first Covid-19 lockdown, we were in unknown territory, and rules had to be worked out on the go. This time, we’re more used to being locked down, and regulations (many of which are much the same as for tiers 2 and 3) have been put quickly in place. And this includes the regulations for enforcement visits for writs of control, writs of possession and serving eviction orders. The Rules for Writs of Con

Late payment has for a long time been the scourge of small businesses, and this has only got worse during the pandemic. Many businesses are suffering severe cashflow problems as a result, including the risk of closure. However, there are signs the government is finally contemplating action to help struggling businesses facing this issue. The Scourge of Late Payments Most small businesses operate on very narrow margin

The options open for people who fall into debt have needed reform for some time, but the Covid-19 pandemic has made the issue urgent. The Money Advice Trust has now published a new briefing, urging the government to commission a full review of the options for debt management. The Debt Crisis The need for review of debt options was already being urged before this year. In 2018, the Money Advice Service (now part of th

The past six months have been hard on everyone, and many SMEs have found themselves struggling financially. The government has created a variety of opportunities allowing businesses to borrow money or defer payment, but this has come at a price — high levels of unsustainable debt. Financial Predictions for Business A recent report by TheCityUK has predicted that UK businesses, the vast majority of which are SMEs, are

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

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