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.

Confidence among businesses has fallen according to the latest ICAEW/Grant Thornton UK Business Confidence Monitor (BCM), indicating that the economic recovery will slow in the second half of 2010. Despite uncertainty as to the impact on the recovery of the Coalition Government’s plans to reduce public spending, the BCM’s financial performance indicators suggest that the financial health of UK businesses continues to improve.

Key findings for Q3 2010 include:-

• The Business Confidence Index (BCM) has declined since Q2 2010. It fell from +25.5 to +21.5, a fall of four points

• Nearly a fifth (19%) are now less confident about the coming year – up from 14% in Q1 2010 • Despite this, turnover and profit growth returned to positive territory for the first time since the start of 2009. Growth of 1.6% and 1.7% respectively are reported for the year to date

• Businesses expect to increase prices by only 0.9% in the next twelve months which points to limited inflationary pressures and no need for interest rate rises for some time

Michael Izza, CEO of ICAEW, said: “UK businesses that came through the recession are now facing the challenge of surviving the recovery. They still don’t know what the future holds and are uncertain about how the mood of fiscal austerity will impact the economic recovery. Government needs to deliver on its commitment to ensure Britain is open for business while taking the tough decisions required to tackle the deficit.”

Scott Barnes, CEO of Grant Thornton, said: “There is a mixed picture for business across the UK’s regions and some sectors continue to struggle more than others. Clearly economic conditions remain tough but there are signs that some companies are looking to switch from short-term survival measures to opportunities for growth. The recession has changed the business landscape and the measures businesses have taken to survive may make them stronger as the recovery begins to take hold.”

Fall back of confidence

Since the last BCM, the coalition government formed and undertook an Emergency Budget which outlined a combination of public sector spending cuts and tax rises. A Comprehensive Spending Review (CSR) and Pre-Budget Report (PBR) are also expected later in the year. Economic growth was unexpectedly high in Q2 2010 (1.1%) and is anticipated to slow down as the effects of the inventory cycle wear off. Further down the line, cuts and tax rises will start to take effect on overall economic activity. All these factors have lead to a degree of uncertainty among businesses.

Improvement in financial performance

There has been a noticeable improvement in the financial health of businesses. Turnover and gross profits have increased and the yearly growth rate in exports has risen to 2.2% from 1.3% in Q2 2010. Looking ahead, capital investments are expected to grow by 2% over the next 12 months, from static growth, and R&D budgets are set to increase by 1.4% – positive signs, but still well below pre-recession growth rates.

Small increase in recruitment expected

Businesses have reported the smallest annual fall in staff numbers since Q1 2009, expecting the number of employees to increase by 1.1% in the next year. With more vacancies becoming available, employee movement becomes more frequent. 13% of businesses feel that staff retention is a greater challenge compared to a year ago though only modest salary growth is expected – 1.5% in the next twelve months.

Inflationary pressures ease

Businesses expect to increase selling prices by on average 0.9% over the next year, while they expect input prices to rise by 1.4%. The number of firms with below normal stock levels continues to fall in this quarter, with the share of businesses with below normal stock levels down to 14% from 26% a year earlier. These findings suggest that businesses’ price expectations remain relatively anchored.

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.

The latest half year statistics from the Registry Trust Limited have revealed the number of County Court Judgments (CCJs) in England and Wales are down 23.4% on this time last year.

There were 355,922 CCJs in total in the first half of 2010, compared to 464,556 in the first half of 2009.

The average judgment amount for consumers was found to be £3,765 – which is 5.4% down on last year, when the figure stood at £3,982.

The average corporate judgment amount was slightly more, at £4,384, although this has still declined by more than 10% since last year, when the average amount was £4,901.

Commenting on the figures, Kevin Still, debt expert and director of Atlantic Financial Management, said: “There has been a marked drop in the number of County Court Judgments (CCJs) in England in Wales, representing a reduction of over 71,000 in CCJ volumes.

“The majority of these are now processed through the CCBC, bulk processing centre, in Northampton. The average debt balance on a CCJ has dropped to £3,765 from just under £4,000 in the first half of 2009.”

However, Mr Still warned that processing debts through the courts can be expensive. He said: “As a Debt Management Company we would much prefer to negotiate a viable repayment arrangement with the creditor before legal action is enforced.

“Where a client on a Debt Management Plan (DMP) has taken a responsible action by seeking debt advice then there is usually a basis for negotiation with company they owe money to.

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.