The boss of the Association of British Insurers, Mark Shepherd, has said that the number of insurance claims made so far this year has reached its highest level in ten years. What has brought this on?
Small businesses are particularly at risk when it comes to unpaid debts. Even just a couple of late payments could put your business in a difficult situation, and as a result, it is essential that you take an active role in debt recovery. The process of debt recovery can be challenging and time-consuming, but unfortunately, for small businesses, a vital part of succeeding. While larger companies can afford to swallow losses, SMEs often simply do not have the money to ensure proper cash flow while carrying even smaller amounts of unpaid debt.
Consider the following scenario:
Joe Lollipop Limited has been trading for a number of years from 5 Glebe Street, Glasgow. This is also the company’s registered office.
A new report published by KPMG shows that one-in-ten Scottish firms show "zombie-like symptoms". But what does this mean and are 'zombie' firms a risk to other businesses?
The recent study by KPMG showed that 9% of the 1100 firms analysed in Scotland were under financial pressure. These so-called zombie firms suffered several difficulties, including static turnover, a decline in turnover, tight margins, limited ability to invest and high levels of debt. This figure was the highest of all UK nations.
Debt Advisory charity, StepChange has informed of the alarming number of Scots facing problem debts.
The charity helped 30,000 people in Scotland who were having difficulty with financial issues. Of that number, 46% were having problems with council tax arrears.
The report produced by the charity ‘Scotland in the Red’ highlighted that the cost of problem debt to the public was around £750million.
The issue of late payments is having a severe impact on UK businesses, with a recent estimate by QuickBooks highlighting that one-in-seven firms have been unable to pay their employees on time as a result of cash flow issues.
Some businesses have even had to turn down projects as a result of being unable to pay staff members to carry out the work, suffering a loss of around £26,000 on average.
New data has revealed that more than 1000 businesses went bust in 2018 while they waited to be paid by clients or customers. This startling data from Begbie Traynor highlights the importance of debt recovery to the success of small business and the massive problem of late payment in the UK.
Stephen Cowan looks at summary warrants and the powers and effects they can have.
Why are your terms and conditions of doing business important? In particular, why are non-standard terms so important? And how are they relevant to avoiding or recovering unpaid debts?
In simple terms, this is where you can put all the details about the provision of goods and services by your business and create a legally binding document to protect the business in the event of a complaint, dispute or failure to pay for goods and services supplied in a timely manner or not at all.
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