The latest insolvency figures could be comfort for many businesses
Insolvency is a scary word for any business. A business may enter insolvency when they are unable to pay debts and go out of business. A healthy cash flow could mean the word insolvency might not even have crossed your mind.
The latest statistics from the Insolvency Service might add to your reassurance even more. Figures show a decreased number of companies entering insolvency in 2016 compared to 2015.
Industries that may need to be cautious are construction, wholesale and retail sectors. The findings show they’ve experienced the highest number of new company insolvencies so far.
See the infographic below for figures that may be of interest to you (click on the image to enlarge).
Compulsory liquidation: This process is started by a court order (a winding up order) with a winding up petition presented to the High Court. Normally a creditor states the business owes a sum of money that it cannot pay (1).
Voluntary liquidation: A company can only be put into voluntary liquidation by its shareholders. The liquidator appointed must be an authorised insolvency practitioner. There are two types of voluntary liquidation, members’ voluntary liquidation and creditors’ voluntary liquidation (2).
Q1: January to March
Q2: April to June
Q3: July to September
Q4: October to December