More than 50% of insolvencies involve customers who previously paid promptly. On average companies are likely to lose more than three active customers each year to financial distress and/or Administration/Liquidation
With a 10% profit margin, £100,000 additional sales are required to cover a £10,000 debt.
Sophisticated corporate fraud is also on the increase; we can help minimise this risk.
Are Your Company’s Assets Protected?
- Debtors can represent up to 60% of a company’s assets
- This represents a significant unprotected risk on your balance sheet
- Late payments can destabilise cash flow
Business insolvencies are expected to rise dramatically;
- UK Government support measures are likely to have depressed corporate insolvencies in Q2 and Q3 in 2020, leading to a backlog.
- It is expected corporate insolvencies will be much higher in the first half of 2021 compared with previous years. It now looks likely they will be even higher than the average 60% increase experienced at the height of the global financial crisis in 2009.
- Automotive, retail, food service and construction are likely to be deeply impacted.
At Linda Scott Associates, we provide our clients with a thorough service to ensure their Business is protected. We help minimise the occurrence of unforeseen losses and ensure cash-flow is promptly replenished when the unforeseen does happen.
It’s not too late to join them!
Our team would be delighted to assist you with any requirements.
Call us today on 0141 632 7758 or email your requirements to: Info@lsa-ltd.co.uk