CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Importance of advisory work grows for insolvency profession as clients seek flexible arrangements â€
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Importance of advisory work grows for insolvency profession as clients seek flexible arrangements †PDF Print E-mail
Monday, 03 April 2017
Restructuring and advisory work is an increasingly important focus for professionals who advise insolvent businesses, according to a survey by insolvency and restructuring trade body R3.

A large majority (68%) of respondents said that demand for advisory work had increased in recent years, with over half saying this is because awareness of business rescue options has increased, or creditors or debtors want to avoid statutory insolvency proceedings,

Statutory insolvency work is still of vital importance to restructuring teams, however. Such work takes up around three-fifths of practices’ time and delivers an average of around two-thirds of practices’ revenues.

Insolvency training stands teams and individuals in good stead when undertaking advisory work, the survey found, with 77% saying it is advantageous to have such training when discussing potential assignments with clients, and under one in ten (8%) reporting it as a disadvantage. A background in insolvency is also helpful when actually carrying out advisory work, according to an overwhelming 90% of respondents, with no one at all calling it a disadvantage.

Andrew Tate, R3 president, commented: “Even as the business environment for insolvency and restructuring work changes and evolves, professionals with insolvency skills are well-placed to provide support and advice on business rescue and restructuring to the UK’s business community. Statutory insolvency work may remain a fundamental element of the profession’s business model, but our skill-set means we can provide valuable advice in a variety of situations.

“Advisory and restructuring work is a natural fit with an insolvency practitioner’s or insolvency lawyer’s core strengths and professional experience, and R3 members are uniquely placed to offer support to distressed businesses both inside and outside the statutory insolvency regime.”

Advisory work sits happily alongside insolvency appointments, say a majority of survey respondents: 62% say advisory work is complementing formal insolvency work, while just 15% say that advisory work is supplanting formal insolvency work.

The biggest challenge when taking on advisory work is clients not seeking advice soon enough, say an overwhelming 83% of respondents, followed by a lack of awareness of the skills insolvency practitioners can offer (65%) and a resistance to paying fees for advice (61%). Four in ten (39%) cited a lack of protection from creditors when restructuring outside a formal insolvency process, and a quarter (25%) stated that creditor intransigence was a challenge to successful advisory work.

Firms are most likely to offer a combination of financial and operational advisory services (49%); 24% offer only financial advisory services and 6% offer only operational advisory services.

Andrew Tate adds: “Insolvency and restructuring professionals provide a valuable contribution to the business world and to the wider economy, far beyond what might be traditionally expected of us. In these uncertain times, the expertise that we can offer will be more necessary and more valuable to clients than ever."
 
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