It continues to be a harder market for insolvency professionals in 2015.
Begbies Traynor have just announced that their six months figures to 30th September 2015 are down on the previous year as corporate insolvencies have fallen 10% year on year.
Typically, larger firms like Begbies rely on their referrals from banks who have taken a much more supportive view of businesses needing help than in the previous recession.
For us, we continue to be busy at the smaller SME end of the market.
We do see a trend in the companies that come to us for help in that they usually have one of two problems:
- The first is that they have built up substantial debts to HM Revenue and Customs and the amount that they owe is often 30% plus of their total debt.
- The second is that they have substantial liabilities to pay employees redundancy pay if they are laid off. This makes it impossible for the business to downsize as they do not have the spare cash to do it.
Both of these trigger the Government’s Redundancy Payments Office to pay out staff what they are owed.
2015 also saw the introduction of new insolvency fee rules and you can read more on this subject in the article written for The Gazette here.