The latest
Government figures on insolvency (published 7th November 2008) show an alarming increase in the number of business failures. There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in the third quarter of 2008, an increase of 10.5% on last quarter and a 26.3% increase on the same period last year.
Add this to the 27,087 personal insolvencies in the same period and you can see the recession in the UK is really starting to bite.
Even if your industry sector or your business is still doing well in this economic climate now is the time to start to be more cautious with customers – especially new ones. Check their credit rating before taking them on, reduce the length of credit you offer them and make sure you act swiftly if they fail to pay one of your invoices. Take the
Zero Tolerance Approach to Bad Debt and you won’t go far wrong. Your business might be recession proof – but you’ll only survive if you customers continue to pay!
If you are one of the businesses struggling in these difficult times – and there are many, you are not alone – you might want to read “
Keeping your business going when the going gets tough” on the
Cousins Business Law website.
Gary Cousins, Business Lawyer
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.