Why Directors Delay Getting Advice

Published on : 16th March, 2023 | Updated on : 4th October, 2023

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Written ByRobert Moore

Marketing Manager

Rob has over a decade of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.

Rob is now working with the Board at KSA Group Ltd to develop strategic marketing programmes to support the business plan and drive more company rescues.

Robert Moore

There are many reasons why directors don’t act when they are worried about something. Here are a few possibilities:

Avoidance: When you are worried about something, it can be tempting to avoid it altogether rather than confront it. Procrastination can be a way of putting off dealing with the problem or issue, in the hope that it will go away or resolve itself.
Fear of failure: If you are worried about your business failing or not meeting expectations, you might put off taking advice because you are afraid of facing that failure. By not starting the task, you can avoid the possibility of failing and feeling bad about yourself.
Being Overwhelmed: When directors are worried, they may feel overwhelmed by the task at hand. Procrastination can be a way of avoiding the feelings of stress or anxiety that come with tackling a difficult or complex task.
Perfectionism: Some people may not take advice or delay doing so, because they have high standards for themselves and are worried about not being able to meet those standards. This can lead to a sense of paralysis, where they are unable to start the task because they are worried about not doing it perfectly.

Overall, delaying action or not taking advice is a common coping mechanism for dealing with worry and stress. However, it often makes the problem worse in the long run, as the task or issue continues to loom and causes more stress and anxiety. It’s important to recognize the reasons behind the business problems and work to address them in order to move forward and tackle the issue at hand.

This is something we can help you do! Call us on 0800 9700539 what have you got to lose!

Monthly Insolvency Statistics: February 2025

20th March, 2025 in Research and Statistics

After seasonal adjustment, the number of registered company insolvencies in England and Wales was 2,035 in February 2025, 3% higher than in January 2025 (1,978) but 7% lower than the same month in the previous year (2,188 in February 2024). Company insolvencies over the past year have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels. Company insolvencies in February 2025 consisted of 393 compulsory liquidations, 1,520 creditors’ voluntary liquidations (CVLs), 115 administrations and 7 company voluntary arrangements (CVAs). There were no receivership appointments. Compulsory liquidations were higher than in January 2025, while CVLs, administrations and CVAs were lower. The (seasonally adjusted) number of compulsory liquidations in February 2025 was the highest monthly number since September 2014.One in 191 companies on the Companies House effective register (at a rate of 52.4 per 10,000 companies) entered insolvency between 1 March 2024 and 28 February 2025. This was a decrease from the 57.6 per 10,000 companies that entered insolvency in the 12 months ending 29 February 2024. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.CVLsIn February 2025, CVLs accounted for 75% of all company insolvencies. The number of CVLs decreased by 2% from January 2025 and was 13% lower compared to the same month last year (February 2024) after seasonal adjustment.In 2024, the number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.Compulsory liquidationsSeasonally adjusted compulsory liquidations in February 2025 were 41% higher than in January 2025 and 49% higher than in February 2024. In recent months, compulsory liquidations have escalated. The greatest monthly number since September 2014 was February 2025.Compulsory liquidations rose 14% from 2023 to 2024, the highest amount since 2014. This increased from record lows in 2020 and 2021, despite constraints on statutory demands and winding-up petitions (leading to compulsory liquidations).AdministrationsThe number of administrations in February 2025 was 18% fewer than in January 2025 and 27% lower than in February 2024, after seasonal adjustment.In 2024, administrations rose 2% from 2023 and were slightly higher than 2015–2019 totals. Since 2022, administrations have increased from an 18-year low in 2021 during the COVID-19 epidemic.CVAsThe number of CVAs was 42% lower in February 2025 than February 2024 and 50% lower than in January 2025. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.What is causing the changes?The most common creditor in any insolvency is HMRC. In the last few months, having held back for many years as companies have recovered from the recent headwinds, HMRC is now losing patience with companies that owe tax.

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Monthly Insolvency Statistics: February 2025