Despite statistics showing late payment for SMEs continuing to rise, latest figures from Registry Trust have shown a drop in the number of CCJs against businesses in the UK in the last quarter of 2019.
CCJs mainly affect Limited (incorporated) companies in England and Wales. 2019 figures were down 27% compared to the same period in 2018. 21,373 firms were issued CCJs in Q4 of 2018, with only 15,626 issued in Q4 of 2019 – although it is a substantial drop, the value only dropped marginally (2%).
However, High Court Judgements did see a rise – there was an increase of 80% in England and Wales. (27 writs were passed in Q4 of 2019 and only 15 for the same period in 2019). There was also a 62% increase in the total amount claimed by judgments in 2019 at £7,545,465, against £4,655,373 from 2018. This data suggests that businesses are using High Court judgments for larger unpaid debts, rather than CCJs. Experts say that this could also be due to a growth in the commercial debt recovery sector and an increase in costs for businesses looking to recover non-payment through CCJs.
Controlaccount Plc offers a no collect, no fee arrangement on any commercial debts. Alternatively, we can collect through the Late Payment Act 2103 (LPA). For a no-obligation chat with our team, email here.
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