Another dip for insolvencies

[Geoff T]

Just looking at the latest insolvency data for Q3 - courtesy of the Insolvency Service...

I was wondering what your thoughts are...

Do you think the "double dip recession" will happen (or already is)?

Do you think the number of insolvencies will increase as a result?

To put my tuppence-worth in, I think the answer to both is "yes"...

Your tuppences please...?

 

[akirk]

I think that it is a little more complex than that...

for example - we do a lot of advising start-ups / websites and graphic design for them. In a recession we see an increase - people who are being made redundant in an industry that isn't hiring - have a redundancy cheque in their hands - can't do anything else, so set up with lower overheads and undercut their previous company...

increase in businesses - some of which will fail and therefore affect the insolvency figures...

Alasdair

 

[Geoff T]

I agree Alasdair, but the thing is that insolvencies are still dropping year on year, I was wondering if people and businesses were looking to find other ways to resolve non-payment, rather than the traditional "Stat Demand" route...

Also of course is the number of those start-ups that will fail in the first 2 years...

And you have to start a discussion somewhere...

 

[akirk]

true

I think that probably suppliers are also offering less credit (nothing to back that up - just a perception) - cash up front does lead to less issues

Alasdair