The latest Insolvency Index from Experian®, the global information services company, has revealed that the rate of insolvencies dropped to 0.07 per cent in August, which is the lowest point since June 2007.

In addition, the average financial strength score for businesses increased from 80.79 in August 2009 to 81.06 in August 2010. The biggest increase in financial strength came from the smallest businesses (with 1 to 2 employees) – from 81.32 in August 2009 to 82.22 in August 2010.

Max Firth, Managing Principal of pH, an Experian company, said: “This month’s picture is very different to the one we saw back in March this year when all regions, bar one, saw an increase in insolvencies and the rate was almost double at 0.11 per cent. Augusts’ figures also show an easing off of the North South divide we saw in June, with the North East going from the region with the highest insolvency rate to one of the seven regions that shared the lowest insolvency rate of 0.06 per cent. It continues to be evident how quickly fortunes can change and the importance of closely monitoring the financial health of the suppliers and customers that businesses of all sizes deal with.”

Other key highlights include:

* Over half of the UK’s regions experienced the lowest rate of insolvencies at 0.06 per cent.
* Businesses in the South West led the increase in financial strength with their score rising from 82.23 in August last year to 82.73 in August 2010.
* The largest businesses (more than 501 employees) were the only ones to see an increase in the insolvency rate, in comparison to businesses of other sizes, from 0.09 per cent in August 2009 to 0.14 per cent in August 2010.
* The Leisure and Hotel industry saw the biggest increase in financial strength, going from 78.10 up to 79.34 in August 2010.

The financial strength of businesses in the Food Retailing sector fell the furthest – from 78.58 in August last year to 75.74 this year, making it the sector with the lowest score.

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

Although still better off overall, people living in the south of the UK have been hit the hardest by the economic downturn, says independent market analyst Datamonitor.

The south, and London in particular, has witnessed a severe reversal of fortune during the recession with its affluent population decreasing by nearly half a million, according to the Datamonitor report published in August.

And to make matters worse, latest figures from the Institute for Fiscal Studies (IFS) predict the coalition Government’s first budget will hit poorest families the hardest with the likelihood they could lose over 5 per cent of their income, implicating future debt problems.

“The future months are going to be difficult for specific pockets and sectors of the UK population,” warns John Fairhurst, managing director for national debt solution provider Payplan.

“The population in the southern half of the country, particularly families with young children, have been hit hardest by the recession and it could now be a difficult time ahead for them along with other poorer sectors of the UK.

“And while credit card statements still carry the excesses of the summer holidays, Christmas is fast approaching and coupled with the prospect of expensive winter fuel bills, people could find themselves facing even bigger financial worries.”

The advice to anyone in this predicament or with a debt problem is to get help sooner rather than later – while there’s time to resolve matters.

“If you’ve been made redundant, if your income has been cut, if you’re struggling to keep up with credit repayments and money issues seem to be getting out of control, seeking debt advice doesn’t mean you’ve failed,” says Mr Fairhurst. “It’s probably the best step you can take.

“The number of customers who say ‘we wish we’d come to you earlier’ is staggering. And while the practical assistance of helping manage their finances is key, it’s the peace of mind this then brings, which really makes a difference for them. We can’t emphasise enough how debt can drag you down and when families and children are involved, it can be so much worse.”

A debt advice specialist such as Payplan will be able to provide free and impartial advice to people with debt problems. Helpful information can also be found by contacting the Citizens Advice Bureau or the National Debtline.

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

A study of 100,000 companies published today by business information agency Vision-net.ie has found that more than 38,000 are ‘high-risk’ and showing signs consistent with business failure.

Vision-net.ie also found that more than €1 billion of unpaid debt has been left behind so far this year by companies which have gone into liquidation.

Vision-net.ie defines high risk businesses as those deemed to be performing badly on a number of key business measurements.

These include deteriorating liquidity, reduced or negative cash flows, lower sales or profits, over reliance on debt, significant interest repayment burdens, poor stock control and other key balance sheet indicators.

The Vision-net.ie study was conducted over an 18-month period. It found an increasing number of high-risk companies in the hospitality and restaurant sector.

Vision-net.ie also found that firms incorporated within the last 10 years were facing the greatest trading difficulties. The average age of a company in the high-risk category was 9.73 years. Vision-net.ie says this suggests many of these companies were incorporated during the ‘boom’ years.

One-third of business failures are most likely to occur between the months of October and December, while 1,800 businesses are expected to go into liquidation this year.

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.