Without a doubt the answer is yes. Although the latest economic figures from The Insolvency Service showed slowing growth in the UK for the first quarter this year, it is clear to me that less and less businesses are facing insolvency issues.
The latest insolvency statistics for January to March 2015 also showed a fall between 8.6% and 18.6% in liquidations and personal insolvency depending on the type of insolvency procedure used. This is a dramatic fall when you consider it takes in all of England and Wales.
At Kirks, the businesses we currently meet and help through their financial problems have changed in the last few years. It used to be companies who were suffering from a sharp fall in sales would come and see us for advice. Now it is much more common that the reason they are seeking help is because they have accumulated debts they cannot service, sometimes going back up to five years.
A particular problem for these businesses is old tax and vat debts that they have been trying to manage with payment plans. H M Revenue and Customs finally lose patience and decided to wind these businesses up and put them into liquidation. In these cases, directors that take advice early on will have more options on the outcome than if they just bury their heads in the sand.
If you would like to know more about these statistics or have questions about insolvency and liquidation, contact us today for expert and free initial advice.