Insolvency Rates In The North

Recent Government figures show that businesses in the North have the highest insolvency rates in the country. The average for England Wales was 0.8% but within the Northern region there were variations. Worst were the Yorkshire and Humber regions where almost 1.3 businesses became insolvent in 2017, in the North East it was 1.2% of businesses and just over 1% of businesses in the North West became insolvent 2017. So perhaps here in the North West can draw some comfort from the fact that our figures are slightly better than our near neighbours across the Pennines.

However, this is not a time to be complacent. We all know that it is tough out there and this is amply demonstrated by the fact that in November Vauxhall announced plans to axe 241 jobs at its Ellesmere Port car plant following a 400 job cut last year and another 250 job cut earlier this year. There is considerable uncertainty at the moment and inevitably that affects businesses and perhaps more importantly the attitude of those who lend to businesses or who offer credit terms. Many people will say that the insolvency figures once again demonstrate the North/South divide and this may be true but until that gap is closed we have to work with what we have and it is more important then ever that businesses take professional advice to avoid just being another Government statistic.

It is a false economy for a business to take a new Lease of business premises without making sure that they know what they have signed up to.

It is foolish to extend generous credit terms to someone that you do not know very well, particularly if all of a sudden you become their favourite supplier and the amount of their orders increases significantly. This does not necessarily mean that you are better than the competition but perhaps that nobody else is prepared to offer them credit.

It is heart breaking to see a business fail that you have built up and cherished but even more so if you have invested a lot of your personal money in the business without seeking to protect your investment.

No one can guarantee that any business will weather the storm, but there is much that can be done to minimise the risks and a lot of it starts with getting the right professional advice.

If any of the above scenarios sound familiar then contact Fiona Gaskell to discuss how you can protect your business.