It was announced last week that insolvencies hit a six-year high last year amid uncertainty ahead of Brexit and stagnating economic growth.
The number of company administrations in England and Wales increased by 24 per cent in 2019, according to figures from the Insolvency Service.
Commenting on the findings, the Federation of Small Businesses stressed the need for the upcoming Budget on 11 March to include pro-business measures, particularly where our £2.5 billion late payment crisis is concerned.
There are many underlying reasons why companies may fall into administration or insolvency. Here are six key signs your business may be at risk of over-trading:
- Outgoings exceed actual cashflow and you are borrowing money to keep up
- Profits are down and margins are tight
- Employees are over-worked and unhappy – productivity is falling
- Emphasis has shifted from quality to quantity
- Customers are complaining and losing confidence
- Infrastructure, systems and processes are buckling under the pressure of the increase in demand for your product or service
If you have any concerns about your personal financial position or that of your business, speak to our experts at BM Advisory – the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get back on the right track.
Contact Andy Pear or Mike Solomons of BM Advisory for more information and an initial free consultation, or get in touch with your usual Beavis Morgan Partner.