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Response to National Insolvency Report: Monthly Statistics June 2021

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National Insolvency figures published (16 July 2021) by the Government’s Insolvency Service have indicated a 19% increase in business insolvencies in England and Wales compared to the previous month’s figure of 1,014, this is a rise of 63% compared to June 2020’s figure of 741[1].

The number of registered company insolvencies in June 2021 was 1,207 this was 63% higher than the number registered in the same month in the previous year (741 in June 2020), however this is 18% lower than the number registered two years previously (pre-pandemic; 1,466 in June 2019)[2].

The overall reduction in company insolvencies compared to June 2019 can be attributed to the restrictions placed on winding up petitions giving a much lower number than of compulsory liquidations. To help protect businesses from insolvency, several changes were introduced under the Corporate Insolvency and Governance Act (2020) (Coronavirus) including the restriction of statutory demands and winding-up petitions which have previously been extended on several occasions up until 30th September 2021. [3]

“The true picture of the impact of company and individual insolvencies to the construction industry is likely not to be fully understood until the 12 months ending 2021. We advise our members to consider alternatives in their debt collection procedures for example, in response to reduced operational running of the courts, taking the opportunity to not send overdue accounts straight from credit control to legal action but using a third party in between will help save on court costs and the frustrations involved of taking legal action.  We advise members to look at their options for collection, take advice from their collections service provider on the best course of action and consider all options, a one-step approach is not always the most effective.” Emma Miller, Company Director Top Service Ltd

Are you struggling to recover the money you are owed?

Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.

We welcome the opportunity to talk to you about any bespoke changes you would like to make to our debt recovery procedures to fit the culture you have for maintaining customer relationships, whilst addressing the need to keep cash flow as fluid as possible for your business. Please contact our collections team to talk through any individual cases or to explore how else we can support you,” Emma Miller, Company Director Top Service Ltd.

Contact our helpdesk team today on 01527 518800 to discuss how Top Service can support and help you protect your business.