26 March 2021: People think that the insolvency side of our business is busier during a recession. They also assume that business insolvencies have increased during the lockdown.
They are wrong on both counts.
During a recession a business in difficulty may “just about manage”. It is when things start to pick-up again that they can’t get their hands on the working capital required to fund an increase in trading. They over-trade and fail for want of cash.
During lockdown the Insolvency Courts have largely been closed and restrictions on petitions against companies has meant that liquidation numbers are significantly down. Businesses have, with support through furlough payments and loans, been able to “hang in there”.
However, as the green shoots of spring emerge and the end of lockdown appears on the horizon the pent-up storms look set to be unleashed. Not all businesses that have managed to hang in there this time will make it
If you are worried about steering a course through the turbulent times that lie ahead call us. We will happily meet you, virtually or, in due course, in person, and be a sounding board. We can help put your worries and concerns into perspective and suggest ways of managing and mitigating them. We’ve been here before. You want the survival of the business for the future, not another line in the obituaries column.
BRI pride themselves on giving the right advice first time, every time. Please call any one of the experienced management team for a free initial consultation in complete confidence and without obligation.