Business failures leap as credit crunch hits companies

News

09 April, 2008

The credit crunch appears to be having an impact on North West businesses warns law firm Forbes Solicitors.

Corporate failures in the region have increased 24.7% in 12 months, according to industry figures released this week by Experian®, the global information services company.

Tony Pullen, Managing Director of Experian's Business Information division, commented: "These figures are hugely significant, highlighting the impact the continued credit crunch is having on businesses. It's the first overall increase across the UK, in failures, that we've seen for 12 months and demonstrates the nervousness there is in the economy. The message for businesses right across the board in this uncertain economic environment is clear. They need to exercise caution with regards to their risk exposure and the customers they choose to deal with."

Alison Nelson of Forbes Debt Collect commented "It seems no matter how well a business is run, debtors will always find a way to avoid payment which causes havoc with cash-flow. You can protect your business against bad debt with a few simple and timely steps such as tightening up systems and having the correct terms in place. Should these not prove effective Forbes provide a debt collect service that ensures swift collection whilst maintaining your customer relationships."

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