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How much of its expected income should a small to medium-sized enterprise be able to lose, without facing a significantly heightened risk of business insolvency?

When a customer fails to pay, it is sometimes possible to successfully pursue an overdue invoice; but when that customer’s business has failed completely, recovering the funds may be impossible.

According to figures from Experian, 76% of all SMEs have experienced the latter in the past five years, 19% losing between £5,000 and £10,000, and a substantial 35% losing more than £10,000.

Nearly a third (32%) did not state that they check customer credit ratings at least once a year – or supplier credit ratings, for that matter.

And even more, 34% of those surveyed, only started carrying out any such checks after the first incident that lost them money.

Finding yourself on the creditor list of a failed company can be a major cause for concern, particularly if you are already perilously close to entering into business insolvency.

But insolvency advice is available to help restructure and recover – and to help ensure you do not turn into a liability to your own creditors, from being a creditor in your own right.