Posts Tagged ‘insolvency statistics’

COVID Economic Impact; Corporate Insolvencies Start Rising; and Six Rules of Business Success

Posted on: August 17th, 2020 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

To start this Business Finance Bulletin, we review a new report from the SME Finance Monitor team which looks at the economic impact of COVID in terms of current and future performance.

The Insolvency Service has released the latest corporate insolvency figures for July. Whilst the number of firms entering some form of insolvency has increased compared to June, when benchmarked against July 2019, the numbers are down. We look at why that is.

To wrap up, a positive message! A study undertaken by Allica Bank and the Centre of Economics and Business Research has revealed the six rules of business success. Which ones will you follow?

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

Business Finance Bulletin · COVID Economic Impact; Corporate Insolvencies Start Rising; and Six Rules of Business Success

You can also ready the transcript of this Business Finance Bulletin edition.

Transcript of The Business Finance Bulletin Week of 17th August 2020

The COVID impact on businesses; corporate insolvencies starting to rise; and the six rules of business success. All of this and the latest Business Finance Bulletin.

Let’s start this Bulletin by taking a look at a topic that I can’t fail, but to cover; and that’s the economic impact of the Coronavirus.

COVID Economic Impact

A new report has come out by the SME Finance Monitor team, taking a look at this impact. The SME finance monitor team have been producing reports and surveys since 2011, typically on the mindset of small business owners, their financial performance, and looking at attitudes to raising finance, but the latest report for quarter two 2020 focuses on this economic impact for all the 4,000 small businesses that they spoke to.

Their quarter two 020 survey found that 87% of businesses say they have been negatively impacted by coronavirus; essentially the vast majority of businesses in the UK, which obviously doesn’t come as a surprise.

Where is this impact showing?

Well, 46% of them have said that they’ve seen a greater than 50% reduction in sales, and many of them don’t see an immediate recovery, if any sales at all, over the coming months. But the biggest impact is possible in an area that’s of most concern which is forward planning.
Looking at the numbers, 52% in 2019 said that they were planning for growth. That figure in 2020 has now changed to 24% planning for growth. So, we can see there’s a big reduction in business owners who are thinking positively.

In fact, 51% of those businesses surveyed said that the worst is yet to come; it hasn’t even started. Not really a good outlook in terms of mindset for many small businesses. So it’s a case of just keeping an eye on what the market is doing.

One area that small businesses are concerned about is repayment of debt. 29% of them have said they are concerned about their ability to pay the new debt that they have taken on. Obviously they’re referring there to CBILS and Bounce Back loans, and it’s coming back to a message that I’ve been giving out for a number of times over these Bulletins which is that in March to April and June next year, we’ll see the first few payments on these Bounce Back and CBILs will come into play. So you’ve really got to plan ahead for repaying those facilities. So, a pretty bleak outlook, but I’m sure as the months go by that positivity will start to return

Corporate Insolvency Statistics

Regretfully. I need to continue the negative theme in this section, by taking a look at figures from the Insolvency Service as regards to the number of firms that entered into some sort of insolvency arrangement in July, 2020. And the figures for July do show an increase.

The number of businesses that entered into some sort of insolvency arrangement increased by 29% compared to the numbers in June. So, we can see some stresses now starting to come out. But interestingly, you compare that figure to the number of businesses that went into insolvency in July 2019, and the figures drop by 34%.

Why this drop? Well, there’s three things at play here. Number one, during the lockdown period, the courts obviously were not transacting much, so there’s a big backlog of firms that are trying to go into insolvency. It will take some time to work its way through the system.

Secondly, up until the 30th of September 2020, nobody can issue a Statutory Demand or Winding Up petitions against firms where they’re owed money. The temporary ban means that once that 30th of September deadline goes, creditors can issue a Statutory Demand, and Winding Up petitions, then we’ll see numbers really coming through.

The third thing of course, is that many businesses have been thrown a temporary lifeline in terms of CBILs and Bounce Back loans. Perhaps they would have fallen over before now, but the temporary relief probably doesn’t really solve the underlying problem.

If you are a firm in financial problems, don’t forget that your first action is to seek professional advice. Speak with your accountant or ideally an Insolvency Practitioner. Those are the ones who will be able to give you good advice on what steps you can take to protect yourself and your business.

Six Rules of Business Success

I’d like to finish this Bulletin on a positive note by sharing a study carried out by Allica Bank and the Center for Economics and Business Research. This study has uncovered the six rules to business success.

So what are those rules?

Rule number one is to hold regular training.

Staff are our biggest asset and therefore we should be investing in training to make sure, for example, that they provide top quality customer service. Don’t forget, training is just that it’s an investment; it’s not a cost. So hold regular training

Rule number two is focus on innovation.

We’re living in a fast-changing world with new ways of delivering our products and our services, so make sure that you’re at the cutting edge of innovative new ideas. Just make sure that your competition don’t get there before you by focusing on innovation.

Rule number three is to have a vision.

Sit down and plan ahead. What do you want your business to look like in one year, three and five years? Having a vision, prompts you to take the actions on a day to day basis. So have a vision for your business.

Rule number four is to expand your reach.

What we’re talking about here is just to have a look at whether there new markets you can tap into. Are there new products and services that you can offer? Just take a look at how you can get your message out differently. Perhaps use different social media channels. There are ways that you can change the way you operate in order to expand your reach.

Rule number five is re-invest in your business.

What we’re talking about here is don’t sit on your cash. You really now got to start investing for the future, so look at how you can get the best return on the resources that you’ve got by continually reinvesting in your business.

Rule number six is to explore your network.

There are a plethora of opportunities out there. If you only spoke more to your clients, to your colleagues and even your business colleagues as well; just tap into the vast network that is out there in order to help you improve your business.
There are six tips on rules for business success. Sit down, go through them and seeing how you can implement them in your business.

Wrap Up

That’s it for another Business Finance Bulletin. I hope you enjoyed it and if you did, please give it a like and a share. I look forward to being with you again next time and in the meantime, have great, successful, safe and profitable week.

Business Confidence Rises, Barclays Loan Cashback, and Company Insolvencies – BFB 285

Posted on: February 3rd, 2020 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

A positive start to this week’s Business Finance Bulletin with news from Lloyds Bank in their monthly Business Barometer survey that business confidence is on the rise. What are business owner’s view on the impact of Brexit though?

We look at the announcement from Barclays of the launch of a loan cashback scheme with support from the British Business Bank. The cashback is a nice bonus for businesses looking to expand via funding.

To close, less positive news with a look at how many businesses entered some form of insolvency in 2019. The figures from the Insolvency Service do feature a glimmer of hope for 2020.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Spotify, Stitcher or itunes channel.

Prompt Payment Code, Knowing Your Numbers, and Company Insolvencies – BFB 256

Posted on: May 4th, 2019 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

With increasing focus being given to tackling late payment, we open our latest Bulletin with news of tough actions taken by the Prompt Payment Code organisation to ensure its members adhere to guidelines.

A survey on how many business owners have a grip on their financial performance and key indicators reveals that many have a lot to learn. We look at why it is important to know your numbers especially when it comes to raising finance.

To close the Bulletin, we review the latest company insolvency statistics released by the Insolvency Service for Quarter 1 2019. Perhaps not unexpectedly, the figures make gloomy reading.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Spotify, Stitcher or itunes channel.

Budget Finance Boost, Iwoca Lloyds & Open Banking, Company Insolvencies – BFB 233

Posted on: November 3rd, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

With the 2018 Budget behind us we open this Bulletin by looking at finance-specific measures. The British Business Bank, the home to the government finance raising schemes, received several boosts from the Chancellor with the aim of securing business access to finance, particularly post-Brexit.

Earlier in 2018 we looked at the launch of Open Banking and how it is going to revolutionise applying for and controlling finances. How useful Open Banking is going to be is highlighted by the announcement from Iwoca that it has agreed a link up with Lloyds which will speed up access to finance.

To close this Bulletin, we review the latest quarterly statistics from the Insolvency Services. The Quarter 3 figures make gloomy reading with the number of businesses entering into an insolvency arrangement reported as on the rise.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Barclays and Marketinvoice, Company Insolvencies, and Business Borrowing – BFB 226

Posted on: August 4th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In recent Bulletins, we have shared news of various collaborations between finance providers. The latest is an announcement from Barclays Bank of a tie-up with online Invoice Discounting firm MarketInvoice. This is another example of Old World meets New World.

The most recent statistics to Quarter 2 2018 on company insolvencies has been released by the Insolvency Service. Not surprisingly, but not of any less concern, is the news that insolvencies are on the rise. What impact will the latest increase in Interest Rates have on those businesses already struggling?

To close this Bulletin, our monthly look at borrowing levels among small business. Once again, from the latest Bank of England and UK Finance figures, business owners still appear to be reluctant to borrow and instead are busy hoarding cash.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Barclays Green Trade Loan, Business Insolvencies and Xero on Late Payments – BFB Epsd 213

Posted on: May 5th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

To open our latest Bulletin, news of how businesses involved in sustainable activities can now benefit from a tailored finance solution offered by Barclays Bank. The Green Trade Loan is aimed at supporting environmentally-focused businesses in need of working capital.

Turning to more sobering news, we review first quarter figures released by The Insolvency Service on the number of businesses entering insolvency arrangements. Unfortunately, the statistics show an increase compared to the first quarter of 2017.

To close this Bulletin, interesting findings from Xero, the online accounting software provider, and the FSB about late payment experience among its clients and members. If you undertake work with larger businesses or public sector, you are more likely to get hit by delayed payments.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Increase in Insolvencies, Small Business Funding Support and Credit Checks – BFB Epsd 205

Posted on: March 10th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Following a recent spate of high-profile company administrations, we open this Bulletin discussing the Euler Hermes Global Insolvencies Index which has revealed how in 2018 the UK is set to witness the second largest global increase in insolvencies. When linked with the latest bank lending figures, it looks like 2018 is turning out to be a challenging year.

Alternative lenders are continuing to announce the allocation of funds specifically focused on supporting small businesses. We look at funding pots set aside by Iwoca and Metro Bank designed to assist regional and national small businesses.

Do you credit check customers you give credit terms to? To close this Bulletin, we have a reminder of why it’s important to check your customer’s creditworthiness before you extend credit terms.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Corporate Insolvencies in 2017, Duty to Report Payment Practices and Business Plans – BFB Epsd 200

Posted on: February 3rd, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

Here we are with the 200th episode of the Business Finance Bulletin – another milestone achieved in bringing you the latest small business finance news and tips.

We start this episode by taking a look at the 2017 corporate insolvency figures released by the Insolvency Service. Whilst the whole year makes sombre reading in terms of an increase in the number of businesses entering insolvency proceedings, the last quarter of the year though does make better reading.

One tool the government has in its toolbox to help tackle late payment is the Duty to Report requirement imposed on larger business in April 2017. We take a look at the payment practices of these firms as revealed in the first six monthly report.

When it comes to business planning, many business owners shy away from preparing a Business Plan because they are unsure what to include. To close this Bulletin, we share a quick content guide focused on four key areas.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Bank Referral Scheme Launch, Insolvency on the Up, SME Finance Updates – BFB Epsd 144

Posted on: November 4th, 2016 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

After 18 months in the planning the government’s Bank Referral Scheme has been launched. In this episode of the Business Finance Bulletin we look at how the scheme is designed to improve small business access to finance.

Despite post-Brexit confidence remaining relatively high we take a look at the latest statistics from the Insolvency Service, which reveals an up-tick in the number of businesses going down the insolvency route.

On a more positive note we close the Bulletin looking at news from the Bank of England that bank lending to small businesses continues to rise. We also share news from Crowdcube on how they are supporting a record number of businesses looking to raise finance by selling equity.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Tweets

What Our Clients Say

  • Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.

    Shayne Yates | Welsh Government Regional Centre Service Mid Wales
  • I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.

    Max Cooper of Manchester
  • Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!

    Kay Hyde | Hyde & Hyde Architects
  • Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.

    Gaz Jabeen | Bollywood Burn Out
  • Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.

    Angela Holloman-Coombes | Connective HR

Contact Us

    [recaptcha]