Figures from Experian suggest that business insolvency advice may not only be needed by companies facing liquidation, but also by their suppliers.
According to the global information services provider, £4.7 billion in debt is left behind in the UK each year by companies that are wound up or go bust without settling their outstanding invoices.
The figure is based on data from the year 2000 until present-day – but the recession paints a starker picture in recent years.
In 2011, for instance, £5.9 billion was left by 36,000 indebted firms that were wound up voluntarily, with £11.7 billion left by business insolvency proceedings concerning another 21,000 firms.
“Failing to detect signs of deterioration, and not reacting before a customer or supplier gets to the insolvency or dissolution stage, can be crippling for some firms,” says Experian’s managing director of business information services in the UK and Ireland, Max Firth.
If you have reason for concern about any supplier or customer within your supply chain where their business insolvency could impact on your own cashflow or profitability, we can offer insolvency advice to help you prepare for such shocks, whenever they may occur.