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Life has been challenging for businesses for several years now. Brexit and the Covid pandemic were joined by global conflict in pushing up prices, for businesses as well as consumers. And that only looks likely to get worse, with the effects of October’s Budget and punitive tariffs being imposed by the USA. Two recent reports have highlighted the extent of the problems facing UK businesses. Profit Warnings in 2024 A

Insolvencies are on the rise. 2023’s company insolvencies were the highest since 1993, with the level of Creditors’ Voluntary Liquidations the highest since at least 1960. Company Directors are normally protected from personal liability in these cases — as long as they follow the rules. Failure to do so, however, can have serious consequences. The Rise in Company Insolvencies Over 25,000 companies entered insolvency

Businesses haven’t had it easy over the past few years. Brexit, Covid, international crisis, inflation — they’ve all taken a chunk out of businesses, especially small ones. The recent Budget has made things even more difficult. In a recent survey, nearly a third of business said that they believe they’ll need to make redundancies next year, with a similar number expected to be forced to default on debts. What Has Cau

If you’re a small business owner, you don’t need me to tell you that times have been hard for the past few years. It’s easy to assume things are improving now. After all, both inflation and interest rates have been falling this year. Unfortunately, very little of this gain seems to have been passed on to SMEs. So why is this, and what can you do about it? Fall in Inflation and Interest Rates Inflation in the UK hit a

Late payments have long been the scourge of small businesses, especially when doing business with larger companies. The Covid pandemic and the recent economic crisis have made this worse, but there’s some light on the horizon. The Government recently announced a three-pronged attack on late payments. The Problem of Late Payments As I reported last month, the latest figures for late payments show that the proble

Late payments constitute one of the biggest threats to the survival of small businesses. Unlike large corporations, most small or micro businesses don’t have the reserves to manage without regular cashflow coming in, and any substantial delay in payment of the money they’re owed could potentially force their closure. Which makes the latest statistics particularly worrying. Figures show that over half of i

Business insolvency figures can provide a valuable clue as to the state of the economy, but the picture isn’t always straightforward. Over the past few years, in particular, figures have sometimes been skewed by the effects of the pandemic. Many failing businesses were artificially propped up by government support, pushing the figures up when they finally entered insolvency. The figures for July 2024 have been

The private rental sector has been volatile for some time, with changing regulations, fast-rising rents and difficulties for landlords, and that doesn’t look like ending any time soon. What with a reduction in the buy-to-let market, further increases in the cost for tenants and uncertainty over what measures the new government might bring in, the whole sector is holding its breath. A Fall in the Buy-to-Let Mark

SMEs may need to access finance for various reasons. Perhaps they have plans for growth requiring money up front, or maybe there’s a delay in their cashflow — a particular problem in recent years, as the scourge of late payments has grown worse. Recent figures, from various sources, have shown both good and bad news about financing small businesses. A Third of SMEs Need Finance to Survive The most alarming figu

Bankruptcy is often seen as a badge of shame, a sign of failure — but is it really? The legal state of bankruptcy was actually introduced in the 19th century as a protection for debtors, who could previously have been thrown into prison until their debt was cleared. So is bankruptcy the end of the world, or should it be seen as a tool that can be used to get back on your feet when things have gone seriously wrong? Wh