High-profile insolvencies hitting the headlines this year, including once industry leaders such as British Steel and Thomas Cook, have shown that no business is infallible. Research from Atradius forecasts that this isn’t an issue that’s going to disappear any time soon.
Its global report highlights that not only are insolvency rates increasing for the first time since the financial crisis of 2008, but the UK is set to be the worst hit – with forecasts predicting a 10 per cent rise before the end of 2019. Compare this to the 2.8 per cent average increase across the world’s developed markets and the scale of the issue becomes clear.
Brexit uncertainty, which our own research shows is a key concern for UK businesses, will no doubt have played a key part in this rise. Given the Brexit delay and upcoming election, clarity still seems a long way off. Action must be taken to ensure the rate of insolvencies doesn’t continue to grow into 2020.
Brexit and beyond
Last month, we became a founding signatory of the SME Funding Charter to affirm our continued support of UK SMEs through Brexit and beyond. Our funding products are tailored in such a way that they’re perfect for any eventuality, whether combating ongoing uncertainty or going for growth. We appreciate that no two businesses are the same, and one size doesn’t fit all so are committed to ensuring we understand exactly what challenge your client is facing, what makes them tick, and how we can support their ambitions.
We use this knowledge to offer businesses the asset-based finance solution they need at the right time, as well as offering broader support as part of the long-term relationships we build with clients.
Whether businesses are at risk of insolvency or are pushing for growth, brokers have an important role to play in ensuring their clients are not only provided with support, advice and consultancy, but are also connected with the right funding partner as and when finance is needed. Working with a partner that’s able to provide the flexible funding solution catered specifically to the business’ ambitions and challenges is crucial. Brokers and such partners working together can go a long way to help reduce the amount of insolvencies and help British business thrive in 2020.