UK Companies face losses of £1.86 billion in bad debt write offs despite the Government’s COVID-19 support measures.
Businesses are set to write off £20million more in bad debt this year, compared to 2019.
This is according to new data from the UK’s number one insolvency scorecard, Red Flag Alert, which shows businesses are set to write off £20million more in bad debt this year, compared to 2019.
• Companies set to write off £1.86 billion in unpaid invoices this year
• Total level of insolvent debt rises by £20million this year
• Average value of insolvent debt increases by 7%
• Retail, construction, hotel and travel sectors see some of the largest rises in bad debt
Red Flag Alert’s most recent ‘Write Off Report’ data from 13th November 2020 shows total levels of written off business debt in the UK have risen by 1% so far this year, increasing from £1.84bn to £1.86bn.
The retail sector has seen one of the largest rises in written off debt in 2020. However, the construction sector, is where write offs have risen by £31million to £283million.