Surge in insolvencies as furlough ends
ICSM has predicted for weeks that there would be a rise in business collapses once the Chancellor Rishi Sunak’s money ran out. Money that is the furlough scheme that has pumped billions into companies to get them through the covid crisis.
Ian Carrotte of ICSM said 1,446 companies had gone under in September – a 7.2% increase on the previous month as the scheme came to an end. He said: “It is no surprise these firms are going bust as many have not been able to trade due to the lockdowns, HGV driver shortage, labour shortages and debts as their overheads still have to be paid. Overall September’s figures are more than 50% up from the same month in 2020.”
The Insolvency Service said: “A recent Bank of England report found that a third of UK’s small businesses were classified as highly indebted with debt levels of more than 10 times their cash balances, compared with 14% before Covid-19.”
Ian Carrotte said too many firms were allowing companies in trouble to have extended credit terms with little prospect of being paid if they go into administration. He said: “We have been offering free ICSM membership and free legal letters this autumn so to help firms get paid. The legal letters often do the trick as they come from ICSM – one of the most respected credit intelligence groups in the UK. And our debt collecting service pulls in hundreds of thousands in unpaid invoices for members every year. If you don’t get paid – don’t delay.”
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk