Debt Recovery Blog – increase in company failures still to materialise

The rate of company failures slowed during Q3 despite an increase in corporate insolvencies during the first half of this year, according to data published today.

The data, compiled by commercial credit referencing agency Graydon UK, showed that the number of corporate insolvencies will be 4.5% lower than the number recorded during the same period of 2010.

A spokesperson for Graydon UK, commented that long-predicted and expected rise in company insolvencies is still failing to materialise, amid the severe stresses the global economy has come under in recent months, not limited to the Euro Debt crisis.

Whilst the number of firms entering insolvency rose during Q1 and Q2 of this year we are now seeing a decline in the number of business failures, something which may swing the pendulum back over for some, in respect of business optimism.

During such perilous times businesses need to be especially vigilant in monitoring the risks of doing business, both with current and new customers and suppliers. They should also carefully assess their supply lines and customer base to determine their exposure to any high risk sectors and in doing so, look to lessen the potentially devastating impact cause by the non-payment of invoices and resultant cash flow problems and bad debts.

If you are concerned about late payments, your customers becoming insolvent, or wish to speak about services such as Outsourced Credit Control or Debtor Tracing call Liverpool Debt Recovery specialist, CCDR for a no obligation discussion about how we can reduce your debtor days.