The business landscape has always been a challenging terrain, with companies navigating economic ups and downs in their quest for success. Historically, struggling businesses often look to the Christmas and New Year trading period as a ray of hope for better prospects in the coming year. However, recent trends in the UK economy, particularly in the North West, paint a stark picture with over 400 insolvencies reported in the run-up to November 2023.


Access to funding slowing down

One of the significant challenges facing businesses today is the slowing down of access to funding. The ease with which companies could secure commercial funding in the past is diminishing, and this is causing ripples across various sectors. The North West region’s experience is just one example of a broader trend affecting businesses nationwide.


Banks withdraw overdrafts and short-term finance

A contributing factor to the slowdown in funding access is the withdrawal of overdrafts and other forms of short-term finance by banks. As costs rise, financial institutions are reevaluating their risk profiles and tightening their lending criteria. This has a direct impact on businesses that relied on these financial lifelines to navigate cash flow challenges and unforeseen expenses.


Rising cost of borrowing

With banks retracting overdrafts and short-term financing options, businesses are forced to explore alternative forms of borrowing. Unfortunately, this comes at a cost. The fees and interest rates associated with these alternatives have increased, adding an additional burden to businesses already facing economic headwinds. The implications are clear – companies need to adapt to these changes or face increased financial strain.


Conundrum of overdue invoices

Despite the surge in insolvencies, there seems to be a silver lining in the form of a decline in the number of overdue invoices. This improvement could be attributed to the historically easy access to commercial funding that businesses have enjoyed. However, the winds of change are blowing, and the economic landscape is evolving. Another reason for the fall is the fact that businesses are having their debts written off due to becoming insolvent or filing for bankruptcy.


The imperative of timely payments

In this challenging economic environment, the onus is on businesses to ensure they get paid on time by their clients. Timely payments are not just a matter of financial prudence; they are crucial for a company’s survival. Here at Premium Collections, we are reputed as a debt recovery agency, supporting clients with advice and showcasing the importance of proactive credit control and effective invoice management. The insights provided through our service offer valuable strategies for businesses to safeguard their cash flow and minimise the impact of overdue invoices.


Premium Collections Ltd help businesses based both in the UK and internationally, to amicably recoup money owed from their customers. We work on a no-win no-fee basis and with competitive fees only applied when your customer invoice has been paid. We are on a mission to help businesses succeed with improved cashflow in 2024! So please contact our Managing Director, Paul Daine, for a no-obligation discussion if you are worried about unpaid invoice. Call +44 161 962 4695, or you can email