Licensed Insolvency Practitioners and Business Turnaround
SMEs and Coping With Critical Events. Licensed Insolvency Practitioners Can Help
Recent research by Legal & General has shown that a worrying number of British businesses fear that they would face closure within less than a year if their venture encountered a ‘critical event’ – such as the unexpected death of a key employee. The research also picked up data on credit card and other types of borrowing to cover costs amidst a general feeling of uncertainty about the future.
This article looks in more detail at some of the report’s findings, and points out how Licensed Insolvency Practitioners can help with turnaround and recovery.
The Findings of the Legal & General Research
The research, which was carried out by insurance company Legal & General, and publishes in a report entitled Stat of the Nation’s SMEs, found that:
- around 65 per cent of UK small and medium-sized enterprises (SMEs) have some form of business debt – an increase of 33 per cent over figures recorded in 2011.
- an increasing number of businesses are turning towards borrowing in order to get by. During the period studied, it found that the average SME borrowed around £176,000.
The Researchers discovered that 19 per cent of respondents had borrowed £50,000 or more on a credit card to cover their costs, while a further 19 per cent of business owners said that they had been forced to take out a personal loan in order to prop up their business.
Furthermore, 67 per cent of business owners said that they feared closure, should a ‘critical event’ hit their business – while 53 per cent believed that the death or illness of a key employee would push their enterprise over the edge within one year or less.
These are Uncertain Times for Business
The news comes at a time when economic and political uncertainties are weighing heavily on the minds of many British business owners, as separate studies have previously revealed, including one carried out by the Federation of Small Businesses (FSB) regarding Brexit. This study found that eight per cent of SMEs would consider closing down if Brexit had a negative impact on their ability to access EU talent.
As Licensed Insolvency Practitioners, We’re Here for When it isn’t Business as Usual
In our experience we often see SME business owners doing the best they can under difficult circumstances, but often doing so without seeking the kind of advice that can help them turn things around. Tom Gardiner, one of our Licensed Insolvency Practitioners, and Head of Antony Batty and Company’s Brentwood office commented:
“Any critical event will adversely affect a business and in uncertain times this is especially the case.
Here at Antony Batty & Company, we deliver all of the formal and informal solutions to business owners and managers that you would expect from a Business Recovery firm with Licensed Insolvency Practitioners. Furthermore, and unlike many of our competitors, we are truly independent, and offer large firm thinking from local insolvency experts at sensible prices.
At the first sign of difficulty or hint of distress it is imperative that business owners and managers consult with a Licensed Insolvency Practitioner and the earlier the consultation the more options will be available.”
Antony Batty & Company has helped many businesses facing financial difficulties recover, from dealing with HMRC Arrears, helping with cash flow problems and creditor pressure issues to finding new sources of finance.
Need Help with Insolvency, Recovery or Turnaround?
If you or your business is facing insolvency, the sooner you contact us, the more we can help.
If your business is facing financial difficulties, or even insolvency, contact us or call us on 0208 088 0633 for a FREE initial discussion. The sooner you contact our licensed insolvency practitioners, the more we can do to help. Click here to see some of our testimonials and case studies. We’re here for when it isn’t business as usual.