11 March, 2009
A recent report by credit analysts Experian indicates that the 16,591 business failures in the first nine months of 2008 represented a 22 per cent increase over the same period in 2007. Furthermore, the rate of failure is increasing, with nearly 6,000 failures in the three-month period ending in September.
The increase in failures was widely spread across all industry sectors, with London, Wales and Scotland having the highest failure rates.
Experian advises businesses to keep a close eye on the current payment trends of customers and to address any payment issues with good customers early on. Other danger signs are the delayed filing of annual accounts and returns and the presence of county court judgments. Getting information on the 'people behind the company' is also suggested where credit is being extended to small companies.
Vigilance is crucial when times are hard and businesses that do not take care over who they sell to or fail to manage properly the level of their credit risk are taking a big chance in the present business environment. We can help you collect overdue debts and tighten the terms of trade under which you make supplies or can advise you of the best steps to take if you are having difficulty making payments on time.