News

Corporate Insolvencies on the Rise

May 05 2017

New statistics released by the Insolvency Service reveal the increasing risk of default that faces businesses that offer credit to their customers.

In England and Wales

• 3,967 companies entered insolvency in Q1 2017
• This is a 4.5% increase on the underlying rate in Q4 2016 and 5.3% higher than Q1 2016
• This is the third consecutive quarter with a rise in insolvencies

Sectors that produced the most corporate insolvencies in 2016

• Construction: 2,554
• Wholesale and retail trade; repair of motor vehicles: 2,060
• Accomodation and food service activities: 1,540
• Administrative and support services: 1,424
• Manufacturing: 1,361

Samantha White, CEO of My Credit Controllers, said

"These figures underline the importance of making sure your customers are paying you in a timely way. Struggling companies only pay the suppliers that they absolutely have to, so proactive management of credit control will help you avoid getting caught with a bad debt from a company that later goes into administration."

You may also be interested in these articles:

How to check if your customer has gone bust

What to do if a customer goes into administration owing money

How we can Help:

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