New figures from the Office for National Statistics show that UK inflation reached a rate of 9 per cent in the year to April 2022, up from a rate of 7 per cent in March. Rising inflation, the cost-of-living crisis and the unwinding of government support are now being predicted to drive an ongoing increase in business insolvencies during 2022.
The news of the 40-year inflation high comes as credit insurer Allianz Trade predicts that UK business insolvencies will increase 37 per cent this year. According to Allianz Trade, sectors including construction, utilities and business services are leading this resurgence in insolvencies.
This rapid increase, Allianz Trade says, will see the UK become the first major European economy to return to pre-pandemic levels of insolvencies, after collapses were kept to a minimum due to emergency government measures and protections during the pandemic.
It is imperative to credit check and monitor both existing customers and new prospects. Please contact us today on 01604 217333 or email email@example.com to run a financial health check across your entire active ledger to identify potential late payers, see how your customers are currently paying other companies as well as monitor every client on your database.
Source: Business Sale Report