Increase in late payments effects in corporate insolvencies
5 Sep 2016

According to new research from the insolvency and restructuring trade body, R3, at least one fifth of UK corporate insolvencies throughout the past year were caused by late payments or insolvency of another company.

An industry survey revealed that late payments for goods were the major cause of 23% of company insolvencies in 2015 and in 20% of cases, it was due to the failure of a supplier or customer.

Andrew Tate, president of R3 said “A business can have a great product and great staff, but if it doesn’t get paid for what it sells, or if it is over-reliant on a supplier or a customer, things can go wrong very quickly.”

“On the surface, late payment or the failure of another company can seem like factors outside a business’ control, but there are plenty of steps  a business can take to reduce the risks posed by its supply chain and customer base” continued Tate.

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