Insolvencies normalise, but a trade war brings new risks.
Analysis from Atradius (published one day after President Trump’s ‘Liberation Day’) suggests that while the ongoing trade war and higher tariffs will negatively affect growth, the impact on insolvencies may be limited, with global insolvencies remaining stable in 2025 before declining by 5% in 2026. Atradius’ baseline scenario indicates that the Asia-Pacific region could see […]
Data indicates a rise in corporate distress in Europe.
The latest Weil European Distress Index (WEDI) suggests an increase in corporate distress across Europe, which, as of February 2025, reached its highest level in six months. Germany and the UK (see paragraph above) have experienced particularly sharp increases, with German corporate surging to its highest level since July 2020, the height of the pandemic. […]
62% of UK firms with trade exposure to the USA say US tariffs will negatively impact them.
A snap poll of more than 600 businesses by the British Chambers of Commerce (BCC) has revealed that 62% of UK firms with trade exposure to the US expect to take a hit from the tariffs. Looking at the breakdown, 20% report a significant negative impact, 42% report some negative impact, 16% report no impact, […]
UK compulsory liquidations in February were at their highest level in over five years.
The latest UK insolvency data has shown that corporate insolvencies increased by 2.9% in February 2025 to a total of 2,035 compared to January 2025’s total, and decreased by 7% compared to February 2024’s figure of 2,188. Tom Russell, Vice President of R3, commented: “The monthly increase in corporate insolvencies is driven by a rise […]
11.2% of UK companies are in distress.
The latest Weil European Distress Index (WEDI) indicates that business distress levels in the UK have seen particularly sharp increases compared to most of Europe, with levels at their highest since September 2023. The latest data shows that 11.2% of UK companies are in distress, compared to 9.8% the previous year, and the proportion of […]
Six in 10 UK small businesses say late payments prevent them from reaching their full potential.
A new GoCardless report, commissioned by the Federation of Small Businesses, highlights the growing issue of late payments for small and medium-sized businesses (SMBs) in the UK. A survey of over 2,000 SMBs found that 45% have experienced more late payments than last year, with 50% expecting the problem to worsen over the next 12 […]
China: Extended payment terms ease the impact of rising payment delays.
Coface’s latest survey on Chinese corporate payment behaviour reveals that the average payment terms for Chinese companies increased from 70 days in 2023 to 76 days in 2024. Although payment delays remained largely stable, rising slightly from 64 days to 65 days, Coface calculated that this indicates that the overall waiting time between product delivery and […]
Trade tensions and Eurozone weakness cloud the UK’s economic outlook.
A new UK Economic Conditions report by Tokio Marine HCC notes that the UK’s 2025 growth outlook remains disappointing, as trade tensions with the US escalate and the eurozone’s weak performance, especially in Germany, impacts UK trade. In January, the OECD and the IMF projected real GDP growth in the UK at 1.7% and 1.6%, […]
Insolvencies normalise, but a trade war brings new risks.
Analysis from Atradius (published one day after President Trump’s ‘Liberation Day’) suggests that, while the ongoing trade war and higher tariffs will negatively affect growth, the impact on insolvencies may be limited, with global insolvencies remaining stable in 2025 before declining by 5% in 2026. Atradius’ baseline scenario indicates that the Asia-Pacific region could see […]
2022–2026: Five successive years of increasing insolvencies.
Allianz Trade’s latest Global Insolvency Report predicts that global business insolvencies will continue to rise over the next two years. After a 10% increase in 2024, insolvencies are projected to grow by 6% in 2025 and 3% in 2026—resulting in five consecutive years of rising insolvencies from 2022 to 2026. However, the possibility of a […]
Supporting SMEs: The role of trade credit insurance in building economic resilience
ICISA has published a white paper titled “Supporting the Economic Powerhouse: How Trade Credit Insurance (TCI) Supports SMEs, and How to Build on This for Growth and Prosperity.” The paper highlights the critical role SMEs play in the global economy and discusses TCI’s role in promoting resilience. While the proportion of SME business underwritten can […]
Exporting products or services overseas has become the top challenge facing one in three mid-sized businesses.
Barriers to international expansion are among the top pressures facing UK businesses over the next six months, according to BDO’s latest survey of 500 mid-sized business leaders with turnovers between £10m-£300m. Exporting products or services overseas has become the top challenge facing one in three mid-sized businesses (34%) due to disruption from delayed deliveries and […]
Small business growth forecasts fall for the first time since July 2024.
The percentage of UK small business owners predicting growth (33%) has dipped to a nine-month low, according to the latest quarterly data from Novuna Business Finance Business Barometer study. Whilst 45% see Q1 as a standstill period, there is a four-year high in the percentage of small businesses saying they will contract by the end […]
Five years after Brexit. Was it worth it?
Atradius has published an article in which its Senior Advisor, Silvia Ungaro, notes that, although it would have been a tumultuous five years even without Brexit, Brexit appears to have compounded recent challenges, with one analysis revealing a £140 billion shortfall in the UK economy, as a direct result of leaving the EU. “The trade […]
February’s insolvency numbers paint a picture of both struggle and resilience.
New data from Creditsafe has found that February’s insolvency data paints a picture of both struggle and resilience. 2,364 businesses across the UK and Northern Ireland declared insolvency in February 2025 — a 28% rise from January but 10% lower than the same time last year. Creditsafe notes that it’s a mixed signal: while the month-on-month […]
Corporate insolvency levels reached the highest seen in January in more than five years.
The latest data from the Insolvency Service shows that corporate insolvencies in England and Wales increased by 6.4% in January 2025 to a total of 1,971 compared to December 2024 and increased by 10.7% compared to January 2024’s figure of 1,780. Tim Cooper, President of R3 and a Partner at Addleshaw Goddard LLP, commented: “The […]
A sharp increase in zombie companies in the UK mid-market.
According to new research from BDO, the number of UK mid-sized businesses at risk of becoming a ‘zombie’ company has risen. In the last 12 months, 15.9% of mid-sized businesses have been deemed to be at risk of being so-called ‘zombie’ companies — an increase of 3.5% compared to the previous year’s figures. The BDO […]
UK: Late Payment, Business Distress & Insolvencies The number of UK companies delaying payments beyond 100 days reaches an all-time high.
New research from Good Business Pays reveals a concerning increase in slow payments among UK businesses, with the number of companies delaying payments beyond 100 days reaching an all-time high and several major companies identified as among the worst for slow and late payments. The Spring Watchlist, which examined over 6,000 companies’ payment performance, is […]
Coface’s 2025 Country Risk Handbook is now available.
Coface has published its Country Risk Handbook for 2025. The latest edition delivers a detailed analysis of over 160 countries, integrating macroeconomic indicators, sector-specific assessments, and political risk evaluations. The analysis includes: Detailed country-by-country economic indicators and forecasts Sector-specific risk assessments across 13 major industries In-depth political risk analysis and its impact on business operations […]
Is the UK back after the “painful Brexit episode?”
Coface has indicated that, following a period of intense political turmoil, the UK is now on a path to greater stability and gradual recovery, supported by easing corporate insolvencies, lower interest rates, and pro-growth policies in the pipeline. For example, the Planning Bill, set to be introduced in March, is expected to benefit the construction […]
74% of medium-sized businesses in the UK are worried about the impact of late or failed payments.
According to a LondonLovesBusiness article, recent research by Atradius reveals that, while 65% of UK businesses remain confident in their ability to navigate challenges and sustain growth, rising costs are prompting action. Of those surveyed, 57% plan to increase prices to offset the impact of budget changes, while 36% are willing to absorb the additional costs, even […]
The Trump effect: Trade credit insurers brace for growing demand.
Global Trade Review (GTR) has reported that experts are predicting that US President Donald Trump’s protectionist trade policies will likely boost demand for credit insurance as firms grapple with non-payment threats. The Berne Union’s Business Confidence Trends Index reveals that credit and political risk insurers anticipate a jump in demand for short-term policies. The report says, […]
Coface’s 2025 Country Risk Handbook.
The latest edition of Coface’s flagship publication is now available. It delivers a detailed analysis of over 160 countries, integrating macroeconomic indicators, sector-specific assessments, and political risk evaluations. The analysis includes: Detailed country-by-country economic indicators and forecasts Sector-specific risk assessments across 13 major industries In-depth political risk analysis and its impact on business operations Special […]
The UK private sector expects activity to fall again.
Private sector firms expect another significant fall in activity over the next three months (weighted balance of -22%), according to the Confederation of British Industry’s (CBI) latest Growth Indicator. Expectations are broadly unchanged from December, which were the weakest in over two years. This pessimism was widespread across the private sector. Business volumes in […]
The number of UK sectors with falling output increases.
The number of UK sectors reporting falling output rose to eleven in December 2024, up from eight in November, and the highest number since September 2023, according to data from the latest Lloyds UK Sector Tracker. The number of sectors with growing demand was one less than in November (four) and came as the number […]
The percentage of UK enterprises that fear closure in the next three months has hit a two-year peak.
The percentage of UK small business owners predicting growth (33%) has dipped to a nine-month low, according to the latest quarterly data from Novuna Business Finance. While 45% see Q1 as a standstill period, there is a four-year high in the percentage of small businesses saying they will contract by the end of March (13%), […]
One in five UK-listed companies issued a profit warning in 2024.
EY-Parthenon’s latest Profit Warnings report found that one in five (19%) UK-listed companies issued a profit warning in 2024, the third highest annual proportion in twenty-five years, behind only the 2020 pandemic (35%) and the impact of the dot-com bubble burst and 9/11 in 2001 (23%). EY-Parthenon’s report found that UK-listed companies issued 274 profit […]
Historic jump in the number of firms in critical financial distress.
The latest “Red Flag Alert” report from Begbies Traynor reveals “a worrying” 50.2% surge in the number of businesses in the UK entering ‘critical’ financial distress in the final quarter of 2024. Of the twenty-two sectors covered by Red Flag Alert, twenty-one saw a noticeable increase quarter-on-quarter in the number of businesses in ‘critical’ financial […]
Insolvencies in 2025 look set to increase in countries that account for 50% of global GDP.
Allianz Trade’s latest Country Risk Atlas suggests that the global average of the structural business environment (SBE) in 2024 was worse compared to pre-pandemic levels, with eighteen countries seeing a deterioration in their score. In addition, the global average of commercial risk scores, which stood below 2 (Medium) pre-pandemic, moved closer to Sensitive risk, while […]
Trade credit insurers reinstate cover for Asos suppliers.
Drapers has reported that trade credit insurers Atradus and Coface have reinstated cover for Asos suppliers. Atradius and Coface restored cover last month after withdrawing it in 2023 due to concerns over the fashion retailers’ falling profits and the challenging economic environment. The Times also reported that another trade credit insurer, Cartan Trade, has opened up cover for […]