It’s all too easy to close a business so can we change insolvency rules for good !

Useful statistics – 85 % of ALL SME businesses suffer the pain of bad debt annually.

In fact, it is estimated that £21 BILLION was written off throughout 2023 in bad debt alone.

Now if you have somebody like Corp & Comm in your corner, your likelihood is that we’d be able to recover some of those monies.

However there is an alarming growing trend of companies ‘going bust’ or closing, to then simply ‘phoenix’ or start again with a new business simply with a slightly different trading name but with the same dubious people at the helm.

This practice is immoral, dishonest and unfair to the hard working businesses that suffer the pain of somebody else’s shady practices.

Stat Alert – Company insolvencies are at their highest they’ve been for 14 years. Around 20% of legitimate business closures are as a direct result of none payment of their invoices. If we could reduce the ease people can avoid paying their debts, we could reduce the number of companies who are no longer getting paid and stop innocent companies shouldering the pain of bogus businesses.

The challenge is it’s currently all too easy for a dubious business owner to purchase items and assets, raise a load of debt against a company, conduct some shady deal to transfer these assets to their ‘new’ company that is free of debt and fold the first debt ladened company. All these dodgy dealings carry no repercussions to the Directors themselves, not one !

We have to make people think twice before simply putting their company into insolvency. If there was more accountability when it came to insolvency, would it make people think twice about closing their business so readily ?

Our MD Rob Lewis was granted an audience with our local MP Robbie Moore, to discuss how we change legislation surrounding company insolvencies. Mr Moore was shocked to hear the staggering values of sums that small business has to burden and how easy it is to evade payment and he vowed to raise the matter in Parliament.

We must push for change to insolvency rules. If it eases the burden of debt on hard working businesses and ultimately leads to some of that £21BILLION making it’s way back into our economy, who wouldn’t ? ?…..

We’ll keep everyone posted as to how our campaign goes.