It’s getting towards the end of the month and there’s nothing left in the account. You still have some bills to pay and you don’t know how you’re going to meet them. Sound familiar? Then, as you’re watching TV, up pops an advert for a payday loan company. Hey presto, all you need to do is make a quick telephone call, or go online, and all your financial woes will be a thing of the past!
The Government has announced that it intends to increase the minimum level of debt for which an individual can be made bankrupt from £750 to £5,000.
It’s been a tough few years, but hopefully things are at last looking up. Orders are starting to come through and the business world looks a much rosier place.
With the economy continuing to show signs of recovery, more SMEs are feeling confident about their future. However, this doesn’t mean they are all completely stable, as recent research shows that a growing number are exhibiting financial difficulties. Read more
For both politicians and the media, pre-packaged sales of businesses out of administration (or “pre-packs”) are often highly controversial, particularly when the sales are back to the directors or management of the failed enterprise. There is a perception that pre-packs are often abused by unscrupulous directors to simply “dump debts” and start afresh free of troublesome liabilities, and all for far less than the true value of the business.
Often one of the major obstacles preventing SMEs from growing, or in some cases surviving, is the lack of available finance. Even those with the right credit history don’t always get the help they need from the major banks.
New research published by the accountancy practice Wilkins Kennedy shows that retail insolvencies were at their highest level in 2013 for five years. The figures highlight that despite the economic recovery, the number of retailers falling into financial difficulties continues to grow. For the year to the end of March 2014, 1,287 retailers became insolvent.
When a company requires corporate recovery advice or enters the insolvency process, it shouldn’t necessarily mean the end of the business. In many instances, the company remains viable and could be saved through a process of restructuring.
Even if you have the world’s greatest products or services, and even if you have the world’s greatest business model, your business will never succeed or be profitable if it doesn’t get paid for what it sells.