Insolvency statistics and SME liquidations (2022) - All you need to know.
Recent insolvency statistics - 2022 overall
Let’s talk about a general overview of what 2022 insolvency statistics have looked like:
For the second quarter of 2022, insolvencies were higher than in the pre-pandemic period, these then proceeded to rise.
This was driven by Creditors’ Voluntary Liquidations. CVLs accounted for 89% of all company insolvencies
The industry with the most recorded insolvencies was construction.
Q1 2022: In the first quarter of 2022 the industry registered around 1,044 insolvencies. This has been marked as the highest level since quarter 1 of 2012
Q2 2022: During the second quarter of 2022 insolvencies rose by 13% compared to Q1 and 81% compared to Q2 2021.
Furthermore, the number of compulsory liquidations increased.
Q3 2022: The total insolvencies in Q3 decreased by 1% compared to Q2 2022. This was driven by a slight fall in CVLs, they accounted for 86% of all insolvencies, having an overall 2% decrease.
Increase of SME liquidations:
Inflation has created difficulties for everyone, but for small business owners, this has been detrimental.
Statistics show that there has been a 28% increase in enquiries about liquidation options at the end of 2022.
Businesses are struggling with the rising costs of energy and borrowing costs.
Over 30% of businesses are seeking help in order to escape bad debt.
But there is some good news! There are indications that inflation has fallen by nearly 10%. Hopefully, this means that SMEs are able to find a more stable trading environment soon.
Government support remains crucial for businesses to keep running.
The upcoming year:
Last year was defined by inflation, and unfortunately, 2023 seems like it will face the same challenges. Wage inflation, labour shortages and supply chain delays are some of the major issues businesses are facing at the minute.
2023 will surely be filled with challenges, but with the right plan of action and support you can make 2023 your year!
Silver insolvency solutions:
Silver Insolvency Solutions is here to help businesses with a difficult financial situations.
We will help you evaluate your past mistakes and prevent these from happening in the future. Our initial consultation is free and confidential, we will offer honest solutions for your situation.
We have over 40 years of experience in the industry and can help you solve issues, which feel impossible to face.
If you feel as though your business is going downhill, Silver Insolvency Solutions is the right place to go!