The Business Rescue Service expressed concern at the latest Government personal and company insolvency statistics

Despite the rate of bankruptcies having slightly decreased, the UK economy could still present a threat to number of firms, particularly small businesses. The Business Rescue Service give their reaction. End Quote

(1888PressRelease) March 04, 2011 - Despite a slight decrease in bankruptcies, there are indications the economy could still present a threat to a substantial number of firms this year. The figures revealed 1 in 138 UK businesses went into liquidation last year, accompanied by record numbers of personal insolvencies.

2010 saw 16,045 UK firms going into liquidation, accompanied a record 155,418 individual insolvencies, which will have included some sole traders. According to the figures, individual insolvencies had increased by 0.7% in comparison to 2009. Whilst bankruptcies were marginally down, other formal debt management agreements had actually increased. However, funding to free debt management advice agencies is currently in jeopardy. Analysts are concerned that decreased access to advice will have an untimely negative impact on both individuals and UK commerce. The Business Rescue Service team gave their response for sole traders and companies facing financial difficulties and company insolvency:

"Its clear many firms are still under pressure this year. Our most important advice is to seek help as early as possible. Some of the legal methods to resolve financial difficulties are time-sensitive… Sometimes we find a director comes to us for advice when the problems have been mounting over a period of time. Unfortunately, by then not all these avenues will still be open to them. The same applies to sole traders, who find themselves personally liable for their business debts. The sooner we can advise directors, managers and sole traders, the sooner they can begin to access legal protection".

The final quarter of the year also saw a 5.8% increase in compulsory liquidation figures on the previous quarter. The Business Rescue Service point to the potential for public sector cuts to adversely affect overall growth, alongside a plateau in staff wages. Additionally, some economists predict unemployment will also rise. There are further concerns surrounding interest rate rises from the Bank of England. Combined with estimates that creditors are losing £20 million each day, business lending could become increasingly costly and/or more difficult to access. The Business Rescue Team had this advice:

"We have long established relationships with commercial finance institutions and can therefore sometimes provide our clients with access to business funding. In all cases, we advise on the legal route, which will gain the strongest possible position for the business, no matter what the circumstances. We often work with creditors to negotiate terms and conditions and support companies through all legal remedies to problematic business debt. We work with tax arrears; Individual and Company Voluntary Arrangements; Administration including 'Pre-Pack' solutions; voluntary liquidation and recovery afterwards. Our ultimate aim is always to formulate a comprehensive and cost-effective business rescue package".

Businesses can gain the team's support no matter what the company's current difficulties. They also offer a 'business health check' to firms not yet facing company insolvency. Any sole trader, director or manager can gain immediate expert advice in confidence by calling today on 0845 468 2395 or sending an email to:
https://secure1.namesco.net/businessrescueservice.co.uk/contact_us.shtml

http://www.businessrescueservice.co.uk

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