More businesses will struggle to balance their books in 2014.
Coventry, UK (PRWEB UK) 23 January 2014
The prediction comes ahead of the release of official Company Liquidation statistics for the first quarter of 2014, due from The Insolvency Service in the Spring.
Insolvency Answers has examined The Insolvency Service quarterly Corporate Liquidation statistics from the start of 2003 to the third quarter of 2013 and found that in 7 of the past 10 years, the number of company liquidations in the first quarter of each year was higher than each of the last two quarters of the preceding year.
January in particular can be a difficult month for many business owners, as credit taken out in the final months of the previous year becomes payable in the New Year. Add to this the December quarterly rents payable on 21 December and the result is that a huge strain is put on cash flow.
SMEs (Small to Medium Enterprises) face additional financial pressure in the New Year, as consumers have often ‘spent up’ over Christmas, having less disposable cash in the New Year.
Insolvency Answers’ director, Tony Mitchell, commented “Historically, during economic recoveries, company insolvencies have risen. The current economic recovery we are now witnessing has so far been very gradual, so we haven’t seen the traditional increase in the number of insolvencies. However, many commentators are predicting a stronger recovery in 2014, and against a backdrop of cash flow difficulties to fund growth and cautious bank lending, more businesses will struggle to balance their books in 2014.”
About Insolvency Answers
Insolvency Answers is a trading name of Cranfield Business Recovery. It launched http://www.insolvencyanswers.co.uk for the New Year. The corporate insolvency website offers business owners the opportunity to complete a confidential online assessment and receive a tailored video response from director and Insolvency Practitioner, Tony Mitchell, suggesting the best way forwards for their financial problems.
Based in Coventry, Cranfield Business Recovery is run by three directors: Tony Mitchell; Brett Barton and Patrick Murtagh with a combined experience of over seventy five years helping business owners and company directors to solve their company’s financial problems. The business recently became a Strategic Partner of the Coventry & Warwickshire Chamber of Commerce.
Tony Mitchell added: “We are very excited by the launch of our new website. We hope that this website will make it easier for business owners with companies in financial distress to find the help they need. We want to reassure struggling directors and business owners that professional help is available, as well as practical advice on the best way forwards.”
Notes to Editors:
Insolvency Answers is a trading name of Cranfield Business Recovery Limited: a registered company in England and Wales; company number 04328632.
Tony Mitchell is licensed by the Association of Chartered Certified Accountants to act as an Insolvency Practitioner in the United Kingdom (IP No: 8203).
Insolvency Service Corporate Insolvency Statistics can be found here: http://www.insolvencydirect.bis.gov.uk/otherinformation/statistics/201311/index.htm
(Tel) 0800 917 9007, 02476 7655 3777