Reviewed: 10th October 2016
In 2015, the wholesale and retail industry suffered the second highest number of insolvencies in the UK, according to figures from the Insolvency Service. A similar trend has continued into 2016, and with only the construction industry experiencing more insolvency events, it is a worrying time for owners of wholesale and retail businesses.
High street retailers are facing increased business rates following the recent 2017 revaluation, and with higher rentals and greater competition from the ever-developing online sector, the potential for further decline is significant.
So is there anything you can do to mitigate the risks of insolvency for your own business?
By obtaining expert guidance, you’ll be aware of the best types of funding for your business and understand the options should your situation decline further, being able to prepare for the worst and act quickly if necessary.
A licensed insolvency practitioner (IP) can tailor their advice to your business, using experience and knowledge of the industry.
If your bank is unwilling to lend, or alternative options just seem a better fit for your business, you could be eligible for previously unconsidered sources of funding. Merchant cash advances, for example, can provide an ongoing supply of working capital based on the value of your debit and credit card sales.
Creditors may be open to reducing repayment amounts, and allow you to pay over a longer period of time. If your business owes money to HMRC, it is vital they are contacted as soon as you know that a payment will be missed.
You may be able to agree a formal Time to Pay arrangement, or use the skill and experience of an insolvency practitioner to negotiate on your behalf. The input and negotiating skills of an expert carries weight with HMRC, and the fact that you have sought professional advice demonstrates your determination to repay what is owed.
There are a range of formal routes into insolvency, which although not an ideal situation, could help your business out of financial trouble in the longer-term.
At Real Business Rescue, we focus on business turnaround and recovery by providing advice tailored to each client. The wholesale and retail trade has been a volatile industry in recent years, and a post-Brexit economy will bring more challenges to business owners in terms of staffing and legislative changes.
Call one of the team to discuss your situation in complete confidence, and find out more about how we can help. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 55 UK offices or a place of your convenience.
12th December 2018
Small and medium-sized enterprises (SMEs) across the UK are paying increasingly large sums of money to collect amounts owed to them by their clients and customers.Read More
4th December 2018
The number of independent retailers who closed down outlets during the first half of this year reached a record high level for any comparable period.Read More