New Fair Payment Code.
With the support of the Department of Business and Trade, the UK’s Small Business Commissioner has announced that it will launch a new Fair Payment Code later in Autumn 2024. The new Code will reward businesses that adopt fair payment practices for suppliers of all sizes and will include a set of fair payment principles […]
October sales growth stagnates, signalling a challenging festive period.
According to BDO’s latest High Street Sales Tracker, total retail sales across discretionary spend categories grew by +4.1% in October, compared to an overall sales decline of 1.7% for the same month last year. Last month’s growth was driven primarily by online sales, which increased by +9.1% compared to October 2023, while, in comparison, in-store […]
SME exporters are consistently more likely to report decreased exports compared to before the pandemic and Brexit.
The latest Trade Confidence Outlook, conducted by the British Chamber of Commerce (BCC) Insights Unit, shows the percentage of SME exporters reporting increased exports has fallen back in Q3 by 5% after an uptick in Q2. Overall, 22% of SME exporters in the UK reported an increase in export sales, 24% reported a decrease, and […]
UK company insolvencies in October 2024 were 34% higher than in September.
New data from Creditsafe has found that 2,941 companies in the UK became insolvent in October 2024 – a 34% increase compared to September and 17% higher than the same month in 2023. 16% of insolvencies in October came from within the UK construction sector. High-profile cases included Hadden Construction and C.G. Godfrey Ltd, which […]
Business bad debt has increased by 127%.
According to a new report by Bibby Financial Services (BFS), the value of bad debt suffered by small businesses has surged by “a staggering” 127%. BFS’s SME Confidence Tracker found that businesses have written-off an average of nearly £40,000 in unpaid invoices in the last 12 months, up from an average of £17,500 in the […]
Profit warnings issued by UK-listed companies reach a two-year high.
Analysis by EY-Parthenon shows that UK-listed companies issued eighty-four profit warnings in Q3 2024, an 11% increase compared to the same quarter in 2023 and the highest quarterly total for two years. According to EY-Parthenon, unusually, the latest rise in warnings wasn’t triggered by a sudden economic downturn, a one-off event, or a sudden increase […]
A record number of UK businesses are now in significant financial distress.
The latest Begbies Traynor “Red Flag Alert” research reports that the number of companies in the UK facing ‘significant’ financial distress has increased by 5.1% in Q3 2024 to 632,756 businesses – 32.3% higher than Q3 2023 (478,176). According to Begbies Traynor, the increase was driven by noticeable increases in distress in the Utilities (+19.3%), Food & […]
Debt Collection Handbook UK 2024.
Atradius Collections has published its International Debt Collection Handbook. The UK handbook explains the different regulations and procedures for debt collections in the UK, presents a snapshot of the UK’s economic situation and covers the following topics: Debt collection costs, Prescription, Payment methods, Types of companies, Retention of title, Safeguard measures, Legal procedures & legal […]
Construction bankruptcies look set to peak in 2025.
A new report from Allianz Trade suggests that construction bankruptcies are showing sharp increases across the eurozone this year, but the peak has not yet been reached and will follow next year. The latest figures show an increase in insolvencies (compared to a year ago) of +20% in Germany, +21% in Belgium, +31% in France, […]
Allianz Trade anticipates a sharp rise in global business insolvencies for 2024.
When Allianz Trade released its first global insolvency forecasts in February, the company was already expecting a strong increase in 2024 (+9%) followed by a stabilisation in 2025. However, recent developments have led to an even grimmer picture, with a +11% rise now forecast for this year, followed by a peak in 2025. Business insolvencies […]
China’s economic troubles ripple worldwide.
Atradius has published an article that warns that as the Chinese economy continues to falter, the spillover is expected to impact exposed economies around the world. Although no country is entirely immune from the effects of China’s economic woes, Asia-Pacific economies occupy the top positions in the league table of risk. In terms of trade, […]
Asia expects insolvencies to rise as China’s economy slows.
Atradius’ latest Payment Practices Barometer has reported that a rising level of insolvency risk has emerged as a major concern looking ahead for half of companies across Asia, with widespread worries it could negatively impact B2B trade on credit. India, Indonesia, Japan and Singapore are the markets most preoccupied about future insolvency risk, but worry […]
Construction giant collapse sees 2,200 jobs cut
Thousands of people have lost their jobs after the UK operations of the international construction giant ISG collapsed into administration. Some 2,200 workers have been made redundant with immediate effect, joint administrators EY said in a statement on Friday. The business, owned by the US firm Cathexis, had been struggling financially for some time. Attempts […]
663 insolvencies in the UK last week – here’s a sector-by-sector breakdown
The UK experienced a total of 663 insolvencies last week, representing a 19.53 per cent decrease from the previous week, according to a report by Red Flag Alert. Of these, 453 occurred across ten major sectors, showing a 16.88 per cent reduction compared to the previous week. This report provides a quick analysis of insolvency trends across various […]
Coface predicts UK economy will improve but insolvencies are expected to rise
In a recent article, Andrew Share of Coface expects the UK economy to improve due to increased consumer spending and reduced inflation. The Office for Budget Responsibility predicts growth of 0.8% in 2024, compared to Coface’s own forecast of 0.5%. However, Coface urges caution, as insolvencies are still rising and typically take longer to respond […]
The conflict between sales and credit through the eyes of a customer
Despite extensive discussions and analysis of the conflict between credit and sales personnel, many companies continue to encounter this challenge. Moreover, there are still companies that actively foster and embrace this conflict, considering it beneficial and conducive to productivity. It seems like the conflict arises due to differing priorities and objectives. Sales teams are […]
How to perform customer credit checks
A large unpaid invoice can jeopardise the growth of your business or even lead your company to insolvency. A customer credit check on your existing and potential customer is your first line of defence to ensure they will pay your invoices in due time. How to assess the credit risk of a company? How to […]
The trade credit insurance implications of ISG’s insolvency.
According to Construction News, sector experts have warned that contractors may find it harder to access finance as providers reassess risk in the wake of ISG’s collapse (the £2.2 billion turnover firm – ranked 6th in the latest CN100 rankings – called in administrators from Ernst & Young in September). James Burgess, Head of Commercial at Atradius, […]
UK Export Finance is making its credit insurance more accessible with a new online portal.
UK Export Finance (UKEF) has launched an online portal for credit insurance applications. This means that UK businesses can apply for government export insurance without being required to complete a PDF form, a feature intended to shorten the application process significantly. UKEF notes that this is particularly valuable for SMEs, which may face challenges securing […]
16% of German companies report ultra-long overdue payments.
Coface’s latest survey on corporate payment experience in Germany shows that, although the payment behaviour of German companies remains stable, the increase in credit risks from accumulated overdue payments and the pessimism of German companies about their current situation is striking. 16% of German companies reported ultra-long overdue payments that have a share of 2% […]
The global insolvency surge isn’t over just yet.
Atradius’ latest Insolvency Outlook, September 2024, forecasts a 23% increase in global insolvencies in 2024, with significant increases in countries adjusting from low insolvency levels or experiencing spikes, such as Australia, New Zealand, Sweden, Canada, the Netherlands, and the US. Denmark is the only country with a substantial decrease. Of the twenty-nine markets that Atradius […]
French businesses are experiencing increased payment delays and rising insolvencies.
Coface’s latest survey on payment behaviour in France shows that 85% of companies (82% in 2023) have experienced payment delays, with the majority indicating that they are longer (51 days compared to 48.2 days last year) and more numerous. Although no sector has been spared, the automotive, energy, pharmaceuticals, agri-food, financial services and construction sectors […]
The global economy is expected to grow moderately this year.
Atradius’ latest Insolvency Outlook, September 2024, suggests that the global economy is expected to show a moderate expansion of 2.7% this year – remaining steady but with low growth by historical standards. Atradius predicts that, despite a relatively slow start to the year, the US economic outlook for 2024 remains positive – with a gradual […]
The UK manufacturing sector reports a uniformly disappointing set of results.
According to the CBI’s latest Industrial Trends Survey, UK manufacturing output volumes fell sharply in the three months to September and are expected to decline again in the three months to December. This is the first time expectations have been negative since November 2023. Output decreased in fourteen out of seventeen sub-sectors in the quarter, […]
Heavy discounting squeezes UK retailers’ margins further in the run-up to the ‘Golden Quarter’
According to BDO’s latest High Street Sales Tracker, total UK retail sales grew by +4.7% compared to September last year. This was largely driven by online sales growth in what was another disappointing result for high street stores in the lead-up to the so-called ‘Golden Quarter’. Online sales growth of +11.6% is likely a result […]
More than a quarter of businesses reported a decrease in their turnover in August 2024 compared with July 2024.
New data from the Office for National Statisttics (ONS) has found that 26% of trading businesses reported a decrease in their turnover in August 2024 compared with July 2024. This is an increase of 3% compared to last month and the highest proportion reported since January 2024; in contrast,14% reported an increase in their turnover, […]
Most UK trade sectors show a year-on-year increase in business distress, with construction at the top of the list of distressed sectors.
The latest Business Distress Index statistics from Real Business Rescue shows that construction remains the UK sector with the greatest number of businesses in significant financial distress at 89,824 in Q2 2024 vs 83,332 in Q4 2023, followed by Support Services (89,763), Real Estate & Property Services (65,919), Professional Services (50,683), General Retailers (42,992), and […]
Outstanding payments in 2024 are more common than at the height of the pandemic.
According to a new joint report from Cebr and iwoca, the number of UK suppliers offering repayment terms over sixty days to customers has surged from just 7% of suppliers in 2020 to 17% in 2024. In addition, 84% of suppliers say they have to adjust payment terms for business customers, nearly twice (46%) the […]
SME late payments have increased by 48%, with £348 billion in outstanding payments.
According to research from Aldermore’s SME Growth Index, over 3.6 million (72%) UK SMEs have some form of outstanding late payment from customers, leaving them £96,772 out of pocket on average. The total value of late payments has increased from the end of 2023, up 41% from £68,715. On average, SMEs are likely to wait […]
UK government crackdown on late payments.
The UK government has unveiled new measures to support small businesses and the self-employed by tackling “the scourge of late payments,” which, according to the Smart Data Foundry, costs SMEs £22,000 a year and, according to FSB research, leads to 50,000 business closures a year. The government will consult on “tough” new laws that will […]