Best Financial Advisors in Coulsdon

The Key Signs of Financial Distress. With c.50,000 UK businesses facing critical financial distress, taking early action is vital, but directors must know what to look for. Recent figures from Red Flag Alert show that nearly 50,000 UK businesses are facing critical financial stress, thanks to a toxic cocktail of debt hangover from Covid, high interest rates, inflation and energy prices and hikes to corporation tax and the National Living Wage. In addition, the report also found that 539,900 UK firms were facing “significant” financial stress by the end of 2023, Many of these companies are likely to become insolvent and face liquidation, but what can these businesses do to attempt to address the issues they are facing? Early action is vital. Before looking at the different options available for resolving financial distress and looming insolvency, it’s important to understand what financial distress is and how to spot the key signs. Only then can early and correct action be taken.