Following the cessation of the various Covid related support packages and the insolvency protection measures coming to an end we have seen reports of compulsory liquidations increasing by 76%.
High levels of inflation, increases in interest rates, supply chain issues and a collapse in consumer confidence have struck some businesses hard as they try to regain their feet and return to a degree of normality.
At this same challenging time creditors who are owed £750 or more will now be able to submit winding-up petitions against businesses. The figure previously was much higher at £10,000 or more.
The expectation is that we will see more liquidations and business closures in the months ahead.
If you are reading this and thinking that you are grateful for your present financial position and feel fortunate that you survived the worse of the pandemic you may want to give a thought to those that owe you money and how robust your credit control systems are.
Do you see changes in payment patterns, are once regular payers slipping and now need chasing? Are you doing enough to reduce the risk to your own business?
With forecasts of tough trading conditions remaining for the year ahead you need a plan that protects your business from the failure of others.