Statistics released by the Office of National Statistics (ONS) show that company insolvencies in England and Wales have fallen for the fifth quarter running.
Despite this fall, Business Debtline, which provides expert debt advice to struggling businesses, has witnessed a 40 per cent year on year increase in the number of calls taken by its business debt advisors.
Paul Crayston, spokesperson for Money Advice Trust, the charity which rins Business Debtline, said,
“The continuing fall in company insolvencies is good news, but we need to be aware that it doesn’t necessarily tell the whole story. The increase in the number of calls Business Debtline advisers are taking suggests more and more small businesses are facing difficult times. That fewer of these businesses are being forced down the road of insolvency should be seen as a victory for free debt advice during these turbulent economic conditions.”
“We have found that 78 per cent of those businesses which call our services are able to agree and maintain a deal with creditors after receiving advice from one of our experts – a clear demonstration of how effective debt advice can be, not just for those struggling with their finances, but for creditors also.”