Over 100,000 UK businesses were owed money from insolvent companies in last year, according to a new report from trade body R3, which found medium-sized businesses were more likely to be exposed; 14% of medium-sized firms were owed money by an insolvent company 2015. The research also revealed that 4% of businesses employing between two and five people were creditors in over five insolvencies 2015 (23,000 businesses), the highest proportion of any business size in this situation. On average, all businesses should be a creditor in one insolvency procedure every five years. As we previously noted, the rate at which UK property companies entered insolvency reached its highest point in six years in last year, due to rising property values prompting lenders to put "zombie" companies out of their misery and reclaim their assets.
Over 100,000 UK businesses were owed money from insolvent companies in 2015, according to a new report from trade body R3, which found medium-sized businesses were more likely to be exposed; 14% of medium-sized firms were owed money by an insolvent company last year. The research also revealed that 4% of businesses employing between two and five people were creditors in over five insolvencies last year (23,000 businesses), the highest proportion of any business size in this situation. On average, all businesses should be a creditor in one insolvency procedure every five years. As we previously noted, the rate at which UK property companies entered insolvency reached its highest point in six years in 2015, due to rising property values prompting lenders to put "zombie" companies out of their misery and reclaim their assets.