Veritas makes the difference to IPs as insolvencies rise in Q3

According to the Insolvency Service, the number of underlying company insolvencies in England and Wales increased in Q3 2018, both on the previous quarter and on the same quarter in 2017. Company insolvencies rose by almost a fifth (19.3%) when compared with the third quarter of the previous year.

A total of 4,308 companies entered insolvency in Q3 2018, of which the majority 71.6% (3,083) were as a result of creditors’ voluntary liquidations, 20.7% higher than Q2 2018.

Jenny Oldfield, founder and CEO of Veritas, commented on the findings of the report: “This is the first time that there has been 4,000 corporate insolvencies recorded in one quarter since the start of 2014 and we can expect that the IP profession will continue to receive a flood of instructions as we enter 2019. We also know the impact that high profile insolvencies can have, with the consequent inevitable domino effect on the supply-chains of these companies.

At this time, it is particularly important to stress that there is a chasm of difference between an FCA Licensed and Chartered Institute of Credit Management qualified credit management team with a strategic focus on effecting a successful turnaround and a typical debt collections company in addressing the pressing needs of the IP market. With constant and critical time pressure to effect turnarounds, it is imperative that IPs are able to access experienced teams quickly that understand the dynamics of the insolvency and turnaround market and that can hit the deck running on assignments.”

Jenny continued: “With over 16 years’ experience behind us, the Veritas team is uniquely placed to deliver assignments, either on a pre-administration or post administration instruction basis, working with phoenix companies. Our seasoned and supportive virtual credit management resource can enable IPs to take on more assignments and scale at a time when they are arguably running at their most lean.”

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