UK insolvencies soar 33.6 percent in August

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UK insolvencies soar 33.6 percent in August

The number of company insolvencies in Britain is increasing due to a significant increase in last month's insolvencies. In August, company bankruptcies surged to 2,308 in August, a 33.6 percent increase compared to July. ''S corporate insolvency figures were their highest for this month in four years as a mixture of long-term economic issues, director fatigue and creditor pressure saw more firms enter an insolvency process in an attempt to resolve their financial issues or shut their doors,' said Nicky Fisher, president of R3, the UK's insolvency and restructuring trade body. The number of directors winding down their firms is increasing as creditors' voluntary liquidations continue to rise. The monthly compulsory liquidation numbers reached their 'highest' in four years last August, as creditors continue to pursue the money they are owed. Atradius UK's commercial head, James Burgess, said the firm's own data reflects a'staggering' increase in claims for late or failed payments. Atradius UK said that the number of claims for late or failed payments reported in quarter two of 2023 was 26 percent higher than in the same period in 2022 and 165 percent higher than in Q2 in 2021. This means that businesses aren't yet out of the woods, Mr Burgess said. Mr Burgess added that: never' go into insolvency overnight, and there were a number of warning signs that suppliers should look out for beyond just late payments. These may include taking advantage of full credit lines, a change of banks, or a high turnover among senior managers. It's crucial firms have robust and updated financial insights and forecasts and at a time of high volatility, this could be a crucial factor as to whether a company flourishes or fails, Burgess said. The number of companies insolvencies is on the rise globally, with nations such as France and Germany having a significant impact on the economy as a result of slow or stagnant economic growth. If you're having difficulties paying wages, staff or suppliers, if stock is piling up, or if you're worried about your business and its finances, that's the time to speak to a qualified accountant, Ms Fisher said.