Revised forecasting figures from credit insurance provider Euler Hermes, in response to changes in market conditions, predicts an increase in corporate insolvencies to the end of the year. Their figures foretell a 1% increase in corporate insolvencies for 2016, compared with figures from 2015, as well as a 3% increase for 2017 when compared to performance this year.
An early indicator of an upswing in insolvencies is a slowdown in payment. UK companies across the board are reporting higher levels of slow payment by both their UK and overseas customers. As an example, the insurer Euler Hermes advises that within the UK construction sector alone, reports of late payments are 30% higher this year than last. With concerns that today’s late payment is often tomorrow’s insolvency, these numbers are a warning of troubles ahead.
Businesses concerned with the negative figures can set-up a credit insurance policy quickly and simply. They should contact The Channel Partnership on 01275 817320.