August 20 2017
The latest statistics released by the Insolvency Service show a large rise in corporate insolvencies. However, adjusting the figures for the effect of a one-off event the underlying numbers have fallen.
In England and Wales
The figures from the Insolvency Service also show that corporate insolvencies as a percentage of the population of active businesses rose dramatically after recessions, peaking at 2.6% after the 1990s recession and 0.9% after the 2008 crash, compared to the current rate of around 0.5%.
Samantha White, CEO of My Credit Controllers, commented on the new figures:
"It is to be welcomed that the underlying number of company insolvencies have fallen. Insolvency rates tend to increase dramatically in a downturn and fall back while the economy is performing well. With signs that economic growth is faltering, caution is advisable when it comes to managing your debtors. Of course, news that the overall level of corporate insolvency has dropped would be of little comfort to a company that is owed money by another that has gone into liquidation. Whatever the economy is doing, it's always the right time to manage your creditors and collect your payments quickly. "
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