Euler Hermes estimates that approximate 17 per-cent of small – medium sized companies are at risk of insolvency in the next four years when the Covid support schemes wind down. This compares to 7 per-cent of businesses in Germany and 13 per-cent in France.
Euler Hermes looked at profitability, capitalisation and interest coverages as indicators as to how well businesses can pay interest on debts. It stated it could predict corporate distress 4 years prior to the banking crisis.
The sectors most at risk of insolvency were; Automotive – 33%Energy – 25%Construction – 20% Insolvency numbers during the Covid pandemic were relatively low as the government underwrote £75bn of emergency loans to small companies.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or should you or your company be facing financial difficulties and you need to chat, please telephone Charlotte Hutchinson on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices. Our initial meetings are free and without obligation. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.
Because we are an independent insolvency practice, we keep our overheads low and have put systems in place to deal with simple liquidations at an affordable price of from £1,995 + VAT + Disbursements. Our MVLs are from £995 + VAT + Disbursements.