ADVERTISEMENT

Features

Overcoming the insolvency crisis

We are currently seeing firms across all sectors endure financial difficulties. Not only is the ceasing of government provisions just taking effect, new external pressures are also impeding businesses. As it nears make-or-break for these firms, what advice can be given to help secure their best possible outcomes?

ADVERTISEMENT

At the end of 2021, we were beginning to witness the incline in corporate insolvencies after the support of Government-backed loans were wound-down and the ability to pause debt repayments ceased. County Court Judgments (CCJs) against businesses increased by 139% in Q3 2021 and corporate debt increased by £1.9tn to £6.6tn in 2020, with 52% of UK businesses incurring “toxic debt” that they said they “may never” be able to repay.A warning was issued by Julie Palmer, partner at Begbies Traynor, that the number of insolvencies is to “dramatically increase” in 2022 – and it seems she stands correct.

Show More
Back to top button