According to trade insurance company Euler Hermes, the UK is facing a 5% increase in company insolvencies before the end of the calendar year. The economic slowdown, increased late payments and rising input prices are all expected to take their toll on businesses. The prediction is in stark contrast to recent years, which have seen a fall in the number of insolvencies in the UK, although the Brexit result saw figures begin to rise towards the end of 2016. In fact, 2017 would be the first year since 2010 to see a total rise, if these initial estimations are accurate.
Expert insolvency help and advice
Euler Hermes’ findings show that the UK will record the largest increase in insolvencies of any EU economy, with the total number failing by 4% in Western Europe and 1% in Central and Eastern Europe. Valerio Perinelli, CEO of Euler Hermes UK, said: “The UK will be the only major European country to see a sizeable rise in business insolvencies in 2017. While the economy has remained resilient since the EU referendum, there is already evidence of additional strains”. A decline in the growth of global trade and a response to US interest rates can harm UK businesses in 2017. The number of failing larger businesses could lead to a ‘domino effect’ on suppliers, effecting small and medium enterprises. As Brexit negotiations begin in earnest, there is likely to be further economic uncertainty which could lead to businesses struggling. The Insolvency Experts provide company debt and insolvency advice, supporting you and your business and ensuring it takes the best course of action. If you are worried about the financial security of your business, or you’re facing the threat of liquidation, speak to one of our experts today.
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If you have any questions about insolvency or have concerns about business debt, get in touch with our specialists today. Contact us online and a qualified Insolvency Practitioner will get back to you as soon as possible or call us directly on 0300 303 8284 today.