Figures that came out earlier this week from the Registry Trust show a sharp increase in County Court Judgments (CCJs) against companies in England and Wales in the first quarter of the year, rising to over 29,000 – a 36% increase compared to the first quarter of 2016. While their average value fell by 24% to £2,712, overall the total value of business CCJs rose by 4% to £81m.
A CCJ is often taken by a creditor when a business falls behinds on payments owed to them and an arrangement to repay what is owed can’t be worked out.
At Business Debtline, we are concerned over this spike, which bucks previous trends that showed a decline in CCJs. This year we’ve seen an increased demand for our services, with calls to our helpline up as businesses feel a squeeze. In an uncertain business environment, our advisers see both sides of the financial challenge facing small companies and the self-employed – with some calling us because they are falling behind on payments themselves, and others as they are struggling due to late payments owed to them.