The majority of industry experts believe that the UK’s decision to leave the EU will lead to an increase in the number of corporate insolvencies within the next 12 months. According to a member study by R3, 55% of insolvency and restructuring businesses feel that their finances have taken a hit since the Brexit vote last June. The survey also found that 76% of insolvency practitioners believe that a hard Brexit process will lead to a rise in corporate insolvencies.
A soft Brexit process however is expected to be less risky for businesses and individuals, although one per cent of those surveyed feel that this approach could lead to a significant increase in insolvencies and 39% think it will have no impact.
Co-Owner Tom Rolfe commented “Companies need to be mindful of the risks they face in the future and take appropriate action to protect their business against future risks. The vast majority of our enquiries come from companies who have suffered from a bad debt rather than those who are actively preparing for an increased risk.”
Here at The Channel Partnership, we help businesses protect against the risk of insolvency. For more information please contact one of our specialist advisors on 01275 817320.