100,000 businesses owed money from insolvencies
Over 100,000 UK businesses were owed money by suppliers or customers entering an insolvency procedure during the last year, according to research by insolvency trade body R3.
In total, 113,000 businesses, about 6% of all UK firms, were creditors in an insolvency procedure in 2015. SMEs – those employing 51 to 250 people – were most likely to have been exposed, with one-in-seven of these businesses owed money by an insolvent individual or company.
Phillip Sykes, R3 president, says: “Growing businesses encounter two classic problems: going for growth by taking on new customers without properly checking their creditworthiness; and a lack of controls to monitor their exposure. This leaves growing businesses, particularly medium-sized ones, as the most at risk of being exposed to others’ insolvencies.”