Welsh insolvencies: “Let’s avoid landslide.”
By Effective Communication
A South Wales business recovery specialist has urged caution on future interest rate moves.
With Welsh insolvencies up this summer, Sandra McAlister said: “Any rate rise will need careful management if we are to avoid a landslide in corporate failures.”
Mrs McAlister, who heads Swansea-based insolvency practitioners McAlister and Co, was reacting to news that the number of insolvencies in Wales rose by 38.46 per cent year-on-year.
“Despite the banks assertion that lending to Welsh business’s is increasing this is evidence that funding for the smaller SME’s remains out of reach and is clearly reflected in the regions insolvency rates.
“Whilst an improved picture for larger firms is a positive step low interest rates continue to mask widespread problems amongst corporate borrowers and any rate rise will need careful management if we are to avoid a landslide in corporate failures”.
New statistics from business information services firm Experian show there were 54 insolvencies in Wales, representing 0.1 per cent of the region’s business population. This was up from 0.07 per cent a year earlier.
UK-wide, the rate of insolvencies also increased, with 0.1 per cent of UK businesses failing, a rise from 0.08 per cent the previous July.
However, the data indicated that large companies were more resilient, with a 13 per cent fall in insolvencies among businesses employing 501 or more staff.
Mrs McAlister said: “Our firm handled six liquidations in July.
“Despite the assertion by banks that lending to Welsh business’s is increasing, the new figures provide evidence that funding for the smaller SME’s remains out of reach. This is clearly reflected in the regions insolvency rates.
“Whilst an improved picture for larger firms is a positive step, low interest rates continue to mask widespread problems amongst corporate borrowers.”
Tags: Insolvency, McAlister and Co, Sandra McAlister, Swansea business
