Inflation Rates

The surprise news that the rate of inflation remains higher than government estimates at 8.7%, in addition to recently announced mortgage interest rate hikes, are a significant concern to many businesses and traders in Scotland. It had been hoped that a drop in the rate of inflation would afford some breathing space to businesses following the troubles of the last few years. Unfortunately that does not appear to be the case.

David Alexander Partner & Head of Debt Recovery dalexander@gilsongray.co.uk

As we have heard many times, corporate and personal insolvencies are on the rise and with continuing high rates of inflation, supply chain issues and a lack of skilled and unskilled staff, many businesses are on their knees; none more so than in

Craig Darling Partner cdarling@gilsongray.co.uk

the hospitality and licensed trade sector.

It is important that business owners think carefully about their next steps in these difficult times. Early warning signs of financial difficulties are incredibly valuable; and by knowing what to look out for, a business has more time to be able to react to any problems. Unless the business takes action to address its financial difficulties, problems can quickly accelerate.

If there are issues coming up, like falling margins and overdue invoices, it is far better that a business seeks expert advice early. This can often be the difference maker between riding out the worst of what is to come and struggling and perhaps failing to survive.

Overdue invoices can be dealt with swiftly and usually successfully if advice is sought from specialist debt recovery agents. There is still cash available in the market place, it is just that those in possession of it are not parting with it as quickly as they once did. An experienced agent can make all the difference in seeking payment of overdue accounts, whether at pre-litigation stage, or during the course of formal court proceedings.

Falling margins and staff shortages are not so easy to fix, and businesses experiencing those difficulties are advised to seek advice sooner rather than later. Time very much is of the essence for businesses suffering those difficulties. We are all aware that these are very difficult times and the last time the Scottish market faced such difficulties was in the financial crisis of 2008/9. It is important to note though that the market place is in a much better place than it was back then.

There is significantly more capital available in the market at this time, and there are more options available to businesses facing difficulties than ever before, including many more sources of finance. Seeking advice quickly on these matters though is imperative.

If a business is suffering, then support and assistance is available, whether through active negotiation with creditors, restructuring, or a formal insolvency process. Whatever requirements a business may have we are here to help.

Gilson Gray is well placed to assist any businesses suffering these difficulties. Our Debt Recovery Department is run by David Alexander and was recently voted the Debt Recovery Team of the Year at the 2022 Law Awards of Scotland. Our Restructuring and Insolvency Team is led by Craig Darling and he is best placed to assist any businesses wishing to seek funding or to discuss restructuring their businesses.