The Registry Trust has released statistics for January to March 2019 which show a 12% increase in County Court Judgments (CCJ) against businesses. 35,779 judgments totalling £107.2m against businesses were registered in that 3-month period. This is a 6% rise from the level in Q1 2018.
The average value of the CCJ’s was £2,997 which is a 5% reduction from the value in Q1 2018.
Mick McAteer, deputy chairman of the Registry Trust commented:
“Business judgment data is an important indicator of the state of the economy. The numbers and value of judgments have risen for the third year in a row. But it is worth noting that these levels are still well below the peaks seen just after the financial crisis in 2009”
Martin Kingman CEO of Professional Legal Collections Limited notes:
“The increase is a worrying trend for UK plc as a whole. Businesses need to ensure that they are protecting themselves and carrying out due diligence before offering lines of credit.”
Our top 5 tips to help you protect your business are:-
1. Ensure you know who it is you are entering into an agreement with;
2. Carry out a credit check to give you a recommended contract limit and overall trading credit limit.
3. Do not offer credit beyond the recommended limit without getting additional security (such a a retention of title clause or personal guarantee in place).
4. Ensure you have up to date and signed terms of business or a bespoke contract in place to offer your business maximum protection.
5. Act quickly if the account goes beyond terms and speak to us as specialists if you are in any doubt about the best steps to take.
Dated: 4 August 2020
*Nothing in this article constitutes legal advice or gives rise to an advisor/client relationship. Specialist legal advice should be taken in relation to your specific circumstances. This article is provided for general information purposes only. Whilst we endeavor to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and we do not accept any liability for error or omission as it is based upon our interpretation of the law. Please be aware that the legal circumstances may have changed since this article was first published in August 2020 and you should contact us for specific up to date advice on your circumstances.changed since this article was first published in August 2020 and you should contact us for specific up to date advice on your circumstances.
