Partly Cloudy

Partly Cloudy

max temp: 21°C

min temp: 14°C


R3 Eastern urges firms to assess credit risk of new customers

PUBLISHED: 08:00 03 February 2016

Frank Brumby, eastern region chairman of R3.

Frank Brumby, eastern region chairman of R3.


More than 30,000 businesses in the East of England were owed money by at least one supplier or customer which went into insolvency last year, according to research by the eastern branch of insolvency trade body R3.

The survey, part of R3’s regular Business Distress Index report, shows that a total of 34,000 local businesses, around 11% of those in the region, were creditors in an insolvency procedure in 2015. Of those businesses, a total of 20,000 were creditors in two insolvencies last year.

Nationally, the figures show that medium-sized businesses – those employing 51 to 250 people – were most likely to have been exposed to another firm or individual’s insolvency, with one-in-seven (14%) of these businesses owed money by an insolvent individual or company.

R3 Eastern chairman Frank Brumby, a director at Isadore Goldman in Norwich, said: “Day-to-day, businesses can encounter two classic problems: going for growth by taking on new customers without thoroughly checking their creditworthiness, and a failure to devise and implement controls to monitor their exposure.

“This leaves growing businesses, particularly medium-sized ones, as the most at risk of being exposed to others’ insolvencies.

“Although the UK insolvency regime is ranked as one of the best in the world, it is often the case that those owed money in insolvencies will not see all of their money returned. This, of course, can have a serious impact on a creditor’s finances.

“R3 would therefore urge businesses to take timely preventative measures and properly assess risks before trading with individuals or other firms. Doing so will minimise the chance of being exposed to others’ insolvencies from the outset.

Search hundreds of local jobs at Jobs24

Major exporting success is a step closer for East of England firms which have benefited from a multi-million pound government funding pot to help businesses gain an international foothold.

The senior team at award-winning Suffolk rooflight company, Sunsquare, showed Bury St Edmunds MP Jo Churchill around their factory last week.

Drinks group Konings has unveiled plans to expand capacity at the Copella fruit juice site near Sudbury, potentially creating more than 100 new jobs.

A total of 31 care providers have been selected as finalists for this year’s Suffolk Care Awards.

Tourists jetting to the UK “in their droves” to take advantage of the weak pound could spend up to £2.4bn on our high streets this summer.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24