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Creditsafe’s 2016 A Year in Review, a complete guide looking at company start-ups, closures, directors, CCJ's and much more. Download the full review for free here.
London has been pushed off the top spot for the most insolvencies throughout all regions in the UK during 2016 according to our ‘2016 A Year in Review’. For 3 consecutive years, London saw the most insolvencies in the UK with 6,775 in 2013, 5,690 in 2014, and 3,215 in 2015; however although the amount of failures has risen once again in 2016 for London, with 4,473 insolvencies it is no longer the region with the highest amount of companies closing their doors. Yorkshire and Humberside has taken the lead with 5,722 company closures, almost double the amount of 2015 for that region.
This is bad news for the previously promised ‘Northern Powerhouse’ as the North are now ahead with insolvency levels compared to the South.
The amount of bad debts being issued in London had risen once again after dropping in 2015 from 2014. A bad debt is when a company has money owed to them by a company that becomes insolvent, therefore they have no way of recovering that money.
Although the amount of bad debts issued still isn’t as high as 2014, there were still an additional 1,851 bad debts being issued to companies in London with a total worth of over £353,000,000. The average bad debt value was worth £42,194, which could be a lot to recover for a small business and is well over the national average. However as the main business hub of the UK, this is to be expected.
Although London saw a rise in company closures and bad debts issued, companies in that region maintained an average credit rating of 61 which is deemed as ‘low risk’ on the Creditsafe system and a strong company to do business with.