Over a quarter of UK companies have suffered a hit to their finances following the insolvency of a customer, supplier or debtor in the last six months, according to new research.
The research found the financial impact of the insolvency of another business was described as very negative by one in ten UK companies, and as somewhat negative by 16 per cent of respondents.
The figures are evidence of the so-called domino effect, where one companys insolvency will increase the insolvency risk for others.
In Q1 2018, following a spate of high profile insolvencies involving large companies such as Carillion or Toys R Us, underlying insolvencies climbed 13 per cent from the previous quarter.
Andrew Tate, spokesperson for R3, the busine…
Read the full article at: http://www.bmmagazine.co.uk/news/one-in-four-uk-companies-insolvent-due-to-customer-insolvency/
