Alarming rise in level of firms with cashflow difficulties

DEBT RECOVERY firm Lovetts said it has seen an 'alarming' increase in cashflow difficulties faced by UK businesses during the past year, exceeding levels last seen during the recession.

In 2015, 56 per cent of County Court Claims to recover debt resulted in a County Court Judgment (CCJ) because the debtor was unable to pay. This is the highest level seen in more than six years.

The findings underline warnings from Chancellor George Osborne that 2016 has opened with a “dangerous cocktail of new threats” and support recent reports of a downturn in business confidence.

Hide Ad
Hide Ad

Lovetts said it has seen a similar pattern in its own debt recovery activity for clients.

The number of cases where the claim has converted to a CCJ was 44 per cent in 2015, up from 38 per cent in 2014.

Lovetts said: “There have been various warnings about the state of the UK economy, with some saying it may be the toughest year for the global economy since the financial crisis.”