CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Collapse in numbers of UK ‘high risk companies’
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Collapse in numbers of UK ‘high risk companies’ PDF Print E-mail
Wednesday, 25 November 2015

The number of ‘high risk companies’ in the UK has shrunk massively. The new Graydon Risk Barometer shows that in 2007, just before the financial crisis, 16.23 percent of the 1.7 million active UK companies were so unhealthy financially that they caused a serious business risk. 


Now, in 2015, this number has decreased to 9.59 percent. The reason for this spectacular decrease is that the economic crisis filtered out a lot of the unhealthy companies. Some remain though, hidden by low interest rates.

When the financial crisis was at its peak, in 2008, the number of unhealthy companies rose to over 18 percent of the total business population.

Alan Norton, Head of Intelligence at Graydon UK says, “Two major factors explain the collapse of the high risk companies. The first is the effect of the financial crisis. This filtered out financially unhealthy companies. The difficult conditions forced many of these companies into insolvency. The Graydon Risk Barometer shows in fact that the crisis had a positive effect on the health of the overall UK economy. The second reason is related to the financial crisis in the sense that financial institutions strengthened their criteria for providing credit. Thus only companies that could prove their financial health could get money to do business. As a result, high risk companies were once again filtered out of the economy.”

The decrease of these high risk companies is positive for the overall UK economy. Norton cautions, “But, despite this, it is still very important to monitor your customers. Any changes in a customer’s behaviour should be noted and appropriate action taken to ensure payment is made and the sale is completed. When interest rates do rise (depending upon the size and speed of the rises) we are anticipating a large increase in high risk companies and increased insolvency rates as a result."
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197