2016 will be mentioned in history books of the future; depending who the authors affiliate with, and what will happen when it's all over, Brexit and its repercussions will be either glorified or vilified. But so far, almost a year later, 2017 has been a year filled with uncertainty for everyone. Ongoing political instability, like a noxious pandemic, is hitting grass-root start-ups and SMEs alike.
A poor economic climate has seen many companies cutting their losses before things get any worse. The last quarter of 2016 and the first of 2017 saw a huge leap in business insolvencies; the issue over tax rate increases making up the minds of anyone wavering. So catastrophic have the changes being that some say it's comparable to the aftereffects of WW2. So, if your business looks to be in trouble, take some comfort in knowing you're not alone.
As a creditor, you will undoubtedly encounter many different financial situations that put your investments and cash flow at risk. It is your duty (and in your best interests) to protect yourself from potential hazards and to arm yourself with a plethora of knowledge relating to potential situations that could arise concerning the business you are crediting/supplying a service too. Understanding the various laws and legal practices surrounding business operation will allow you to stay ahead of the game and ensure that you receive what you are owed.
One particular form of business that you may have heard of is the Phoenix Company - The formation of this type of company as you will see can drastically affect your ability to regain owed debts. Due to this factor, it is hugely important to understand exactly what this type of company is, and what implications its creation can have for associated creditors.
As we all know, the UK public voted to exit the European Union. Now every business, big or small doesn’t quite know what to expect from the decision. As the country goes on negotiating with the EU, small businesses, especially those whose supply chain reaches outside of the UK, have to embrace an undefined future. But what does that really imply to your small business?