Credit Crunch in the “Real Economy”
According to Ernst & Young and the Federation of Small Businesses, small businesses are facing their own “credit crunch” because their invoices are not being paid on time. Experian report a rise in corporate insolvency in the first quarter of this year by 8.5% as against the same period last year.
Our own experience and that of others that we speak to, is that clients are more frequently contacting us for advice where they have long outstanding debts owed to them and their customers are about to enter into an insolvency procedure. We hear of lenders (whether banks or hedge funds) seeking repayment of their loans. Our advice to clients is to act now and reduce their exposure to their customers, whether as to the level or age of debts or by obtaining security for payment. We have substantial experience of managing and recovering debt. We have acted for clients of all sizes with portfolios of debt for many years and debt collection is one of the core services we offer. We can and would be pleased to advise and assist clients and contacts further.
For further information please contact Jeremy Lederman, Tammy Evans or Tom Murphy.
Please note: the contents of the Cumberland Ellis News Bulletin are designed for guidance only and is not intended to be a substitute for detailed legal advice. Consequently, whilst every care is taken to ensure that the information is accurate, we cannot accept responsibility for any liability to any person as a result of any errors or information which is found to be misleading.
