Equifax business failures data supports reports that SME’s are tackling late payments

Posted on 27. Sep, 2010 by Collections Recon in Collection News, Press Releases

According to the latest figures from Bacs, the number of companies feeling the impact of late payments in June 2010 has fallen by 20% in six months. This new data is supported by leading business information specialist, Equifax, whose own intelligence has shown a drop in business failures during the first half of 2010. It appears that despite continuing difficult trading conditions, businesses are doing their best to keep their heads above water, and manage potential threats to their survival, such as bad debts.

Equifax’s Business Failures analysis shows that in August 2010 there was a reduction in the number of businesses that went bust across every sector compared to the same period last year. Overall there was a 13.2% drop year on year. There was also an 8.2% decline for August compared to July.

“The recent figures produced by Bacs are very uplifting and it’s encouraging to see that companies appear to be ensuring they conduct best practise in all areas of their business,” comments Nic Beishon, Head of Equifax Commercial Information Solutions. “Indeed, Equifax’s Business Failures tracking supports the theory that organisations are very closely monitoring their debt recovery, cash flow and costs.

“Of course, we are still trading in a challenging economic climate and it is essential that businesses know their customers and use basic credit checks and monitoring, alongside valuable initiatives, such as the Prompt Payment Code. In particular, Equifax Credit Communities provides a very effective tool for businesses to share information on the payment behaviour of customers.”

A real-time data intelligence sharing tool that provides the facility for members of the community to add and share trusted up to the minute information on the account behaviour of their customers, Equifax Credit Communities can provide businesses with an early warning to review payment terms, as well as endeavour to recover outstanding invoices more quickly. It offers members the facility to update and share both negative and positive information on customer accounts, including payment terms, stopped or bounced cheques, County Court Judgments, bankruptcy, opened accounts and increased credit limits.

Available online, Equifax Credit Communities offers a unique email alert system, allowing members to immediately taken into account any changes in a customer’s credit or financial status.

“When making any business lending, account opening or on-going credit management decisions it is important to see as much relevant customer information as possible,” concludes Nic Beishon. “And the Equifax Credit Communities service tackles this challenge – providing a depth of knowledge across a broad spectrum of businesses.

“As speculation continues about whether the UK is heading for a double-dip recession, businesses are still vulnerable to bad debt and the risk of bankruptcy. However Equifax’s Business Failures Report and the new Bacs data do seem to indicate that all the right actions are currently being taken by UK businesses – and the organisations that support them – to survive in the continuing difficult trading conditions.”
Business Credit Management (UK) Ltd (BCM UK)

Tags: data support, equifax, SME