The latest information from Deloitte detailing company insolvency data shows that there’s been a significant fall in the number of companies entering administration. The figures for January to September 2013 are 16.4% lower than for the same period in 2012, indicating that there has been an overall improvement in trading conditions.
In the first nine months of this year, a total of 1,224 businesses went into administration compared with 1,464 in the same period last year. Against 2011 data, when 1,581 companies folded, there has been a fall of 22.5%.
The construction industry is leading the way in this recovery, in part due to improvements in the housing market. This sector saw administrations down by 30.5%. In the hospitality and leisure area they decreased by 24.6% and there was a further 9.6% fall in retail administrations.
Companies Facing Administration
For companies which are having financial difficulties, it’s important that they seek the right insolvency advice at the earliest opportunity. However small they feel the problems might be, getting professional support from an insolvency company can be the difference between the business continuing or going under. They might be able to find a way round the problems or ensure the company is in the best position if it needs to be sold.
It’s important not to see the need for insolvency advice as a sign of failure. It doesn’t mean that the business is necessarily going to have to close — it simply needs some assistance. The main problems that insolvent companies have are that they either can’t pay their debts due to cash-flow issues or their assets are worth less than their liabilities.
An insolvency company will work with them to develop strategies to try to rectify the situation. They can talk to both creditors and debtors to help ease the cash-flow problems. The main aim will always be to try to save the business. Obviously, this isn’t always possible, but by getting help early enough the company will be putting itself in the best possible position.
The team at tri group can provide insolvency advice for both businesses and individuals who are facing financial issues. For help and support on your individual circumstances, please contact one of our experienced team.