The Business Rescue Service give their reaction to figured published that shows company insolvencies are still at high levels in the country.
(1888PressRelease) March 04, 2011 - Experts at the Business Rescue Service recently spoke out about figures released this month indicating high levels of liquidation and company insolvency in the UK. Quarterly data revealed more companies entered administration than during the previous quarter. Coupled with negative GDP in the same quarter, many analysts are still extremely concerned about the level of company insolvency within the UK economy.
The figures may appear initially positive, with a marginal decrease of 0.6% for the number of company insolvencies. However, 642 firms entered administration, compared with 633 for the previous quarter. Since administration is typically used by larger enterprises, this figure has provoked some concern among leading business analysts. The Business Rescue Service gave their opinion of the outlook for UK firms:
"There are some analysts predicting that austerity measures will become increasingly problematic for many businesses in the year to come. We are currently advising businesses of all sizes, from sole traders right through to large corporations. We are certainly aware that many are still enduring particular challenges for any number of reasons. Austerity measures may be impacting their customer base along with changes to tax. And we have also seen important restrictions introduced for HMRCs Business Payment Support 'Time To Pay' Scheme, for higher levels of debt. We have actually developed a specialism in supporting companies with tax arrears and for many there is no doubt this has been a lifeline".
The number of compulsory company insolvencies has risen to its highest level since the first quarter 2010.
"It could be that recent rises in personal insolvencies is having a corresponding effect on a company's trading activities. We know many sole traders certainly need support in this arena, since we offer them advice on debts for which they are individually liable. It could be that creditors are noting some improvements in the economy and allowing less time to pay as a result. Yet the business may not be benefitting from any such improvements as yet. In these cases, we may offer another lifeline. We are able to negotiate with creditors, which may allow the business more time to pay. We also negotiate Company Voluntary Arrangements - or CVAs as they are known as - again to allow companies to continue trading. We also work closely with independent finance houses, which can obviously be of great benefit for those clients looking for commercial finance."
Any sole trader, manager or company director looking for support with individual or company insolvency was advised to contact the Business Rescue Service Team as soon as possible. They advise on all aspects of business recovery. This includes support for cash flow issues, tax problems; CVAs, administration, compulsory or voluntary liquidation and how to resume trading afterwards. Call today on 0845 468 2395 for advice from their highly experienced business recovery experts.