Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Business Debt Collection or Recovery. Unpaid Invoice
February 1 2021

£780,000 of bad debt written off at end of 2020

Marc Shoffman Industry News, News, Top 3 debt, Mark Halstead, Red Flag Alert, unpaid invoices

Almost £780,000 per day of money owed to businesses was written off in the final three months of 2020, research claims.

Data from financial risk technology provider Red Flag Alert found the value of bad business debt increased by 410 per cent annually in the fourth quarter of 2020 with £779,997 of unpaid debt written-off each day.

Insolvent debt grew by around £72m during the past quarter, whilst the UK’s total level of written off debt grew by 3.3 per cent in 2020, rising from £1.83bn to £1.89bn.

Read more: Covid-19 induced bad debts will cause banks to lose “somewhat less than £80bn”

Mark Halstead, managing director of Red Flag Alert, said this increase in insolvent debt reflects a rise in the value of county court judgements against businesses in the fourth quarter.

The Registry Trust recently reported the average value of CCJs against larger incorporated businesses rose by 39 per cent from £4,387 to £6,095,

Read more: A history of P2P’s bad debt sales

“This is indicative of the serious bad debt problem that’s building in the UK, with potential to cripple businesses in 2021/22,” Halstead said.

“Creditors are reverting to old fashioned high court writs to recover much needed cash.

“We can expect to see more and more aggressive debt recovery action this year, which will initially cause the failure of small businesses, but will have far-reaching impacts that also push large companies towards insolvency.”

He warned the level of debt could get worse once government support schemes are scaled back.

Read more: Insolvent business debt fell by £189m in last quarter due to Covid-19 support

EstateGuru passes €300m funding milestone Seedrs and Crowdcube warn businesses will suffer if CMA blocks merger

Related Posts

funding to businesses

Industry News, News, Top 3

Government to launch replacement future fund scheme

money UK

Industry News, News, Top 3

BBB sets out further details on recovery loan scheme

Forensic Expert Pressing TASK FORCE

Industry News, News, Top 3

Treasury launches £100m Taxpayer Protection Taskforce

Popular posts:

  • The House Crowd goes into administration
  • Chancellor unveils recovery loan scheme
  • Budget outlines plans for £15bn of green bonds in 2021
  • Sunak to announce stringent CBILS successor scheme
  • FCA warns The House Crowd investors against using…
  • Cyan Finance launches IFISA to help investors go green
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by