Insolvency practitioners MGJL conducted a survey of 1100 business owners across the UK, to discover the financial pressure points that are crippling the nation’s small and start-up businesses.
Just under half (48.78%) of the UK businesses surveyed stated that they would not have the physical assets to support their business through tough financial times. A closer look revealed that 35% of these businesses fell within service based categories such as tech, business consultancy and IT/software industries.
Worryingly, a further 44% stated that they have absolutely no physical assets within their start-up business (within their first 5 years of operation).
These results were echoed by a report released in 2016 by The Telegraph revealing that 50% of small businesses fail within their first 5 years of trading. So it’s unsurprising that many of these young businesses could face devastating financial difficulty over their next few years of trading.
Insolvency practitioner, Mike Gillard from MGJL described why these small businesses shouldn’t fret over their lack of physical assets and how IPs can help businesses recover in these difficult situations.
“Businesses who find themselves with no physical assets and faced with liquidation shouldn’t need to worry. We have often worked closely with business accountants to help service-based businesses find a quick and easy solution when they find themselves with no physical assets to liquidate”
With more digital and services based companies popping up across the country, the need for highly qualified and experienced IPs like MGJL is more important than ever. No business can tackle these issues on their own and there are many ways in which a business can recover from any financial issues that may arise.