Article from June 2016. Follow the link for more recent information on how to assess your credit risk.
Monthly statistics from InfolinkGazette have revealed that there were 13,700 ordinary, unsecured and unpaid creditors in January, with an average value of £21,300, totalling £292 million. This statistic fell slightly in February, which had 12,800 and an average value of £13,400, totalling £172 million.
8% of the unsecured and unpaid Creditors during the period under review had reported a negative net worth in their last filed accounts and 23.6% had reported a negative working capital.
Greg Connell, Managing Director of InfolinkGazette commented “The toxic combination of poor financial health, a lack of credit insurance and unsecured creditor losses, incurred as a result of customers going out of business, is in itself a factor in business failure. As we have previously reported, unsecured and unpaid creditors are more than three times as likely themselves to succumb to creditors liquidation, than the national average.”
Tom Rolfe, Co-Owner of The Channel Partnership adds “Having Credit Insurance is about so much more than just protecting you against bad client debt and insolvencies. As well as the insurance policy, it is also about good credit management, information about potential risk and minimising risk, and helping your business to be as profitable as possible. It makes sense therefore that businesses who choose not to protect themselves against bad debt are three times more likely to become insolvent if a client goes bust, than other UK companies.”
Here at The Channel Partnership we have been providing credit insurance policies and surety bonds since 1992.
Protect against the threat of unsecure creditors by contacting us on 01275 817320 to talk about your options. Our approach is much different to other providers and we will work with your business to find the right solution to help you grow and develop and if we can’t provide the right solution, we’ll let you know so you can find one that is.