Ian Carrotte of ICSM Credit

Too many smaller firms are 'crashing and burning' due to big companies going bust

Almost half a million firms and businesses in the UK have major financial problems with a record number of insolvencies registered at Companies House.
Research form insolvency experts Begbies Traynor revealed that in the property, construction, retail and leisure sectors in the third quarter of 2019 there was an 8% rise in companies teetering on the brink of insolvency.
Julie Palmer of the firm said: “Three years on from the referendum and the latest Red Flag research highlights just how businesses are struggling as a result of uncertainty and a lack of investment. With a considerable increase in the number of businesses suffering significant financial distress in the last three years, there is growing frustration among businesses that they cannot plan for the future and the whole economy is lagging as a result.”
A look at haulage and logistics listed as insolvent in The Gazette in only the last couple of weeks shows an alarming attrition rate for the sector. Logistic Solutions North East Limited have appointed liquidators, there’s a winding up petition for Low Field Logistics Limited while GFH Logistics Limited and SCB Logistics Limited have appointed liquidators – and so the list goes on and on.
Ian Carrotte of ICSM Credit said: “The economy was prevented sliding into recession with a growth of 0.3% in the last quarter overall, but there are worrying signs. We have not seen so many firms going to the wall in the printing, haulage and construction sectors since the credit crunch in 2008.”
He said the factors included concerns over the outcome of the General Election called for December 12, the on-going wrangles over Brexit but also the global nature of the economy.
“The trade dispute between China and the USA is not helping,” he said, “business is crying out for some stability and until our politicians can get their act together over Brexit the blood bath of firms crashing and burning will continue.”
ICSM Credit helps to protect its members from the cold winds of the economy by keeping them abreast of news of ailing companies.
Ian Carrotte said: “Companies like Carillion can have a domino effect, as if a company is hit with a bad debt like Carillion they may be unable to pay their suppliers and sub-contractors and so on down the line. Big firms going bust simply force more firms to go under – and that is part of the explanation as 2019 has seen some big names go down – and they drag others with them. That’s why joining ICSM Credit for less than a tank of diesel helps to keep firms in the know as to who not to allow too much credit and if possible avoid all together.”

ICSM Credit’s Free Micro Debt Recovery Service

Let ICSM Credit do the chasing of those debts you would normally write off and if we can recover the debt, we will send it over to you minus a fee. Micro debt recovery covers invoices less than six years old of up to £750. If paid ICSM Credit’s fee is 40% of the amount with you receiving 60% of the original invoice. If nothing is received, there’s no charge. It’s not a debt collection service but a tried and tested system of emails, letters and reminders – and it usually works.

Contact Ian Carrotte on 08448 54850 or email him on ian.carrotte@icsmcredit.com to find out more.