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: January 2025

19th February, 2025 in Research and Statistics

After seasonal adjustment, 1,971 companies became insolvent in January 2025, up 6% from December 2024 and 11% from January 2024. After three years, the average absolute change between consecutive months has been 12%.After declining in the early 2000s, company insolvencies soared during the 2008-09 crisis. Government support measures during the COVID-19 epidemic in 2020 and 2021 reduced monthly volumes to their lowest ever. Creditor Voluntary Liquidations (CVL) numbers rose above pre-pandemic levels in 2022, although compulsory liquidations and administrations remained low. CVLs reached a record high and compulsory liquidations matched 2015-19 levels in 2023, bringing insolvency numbers to a 30-year high. The 2024 total was slightly lower than 2023 because CVLs decreased more than other insolvency categories.Figure 2: Company insolvencies during the second half of 2022 have reached 2008-09 recession levels. English and Welsh monthly firm insolvencies by type, January 2000–January 2025, seasonally adjusted.CVLs CVLs represented 78% of company insolvencies in January 2025. CVLs rose 9% from December 2024 and 14% from January 2024 after seasonal adjustment. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in January 2025 was 5% fewer than in December and January 2024. Administrations January 2025 saw 10% more administrations than December 2024 and 9% more than January 2024 following seasonal adjustment. CVAs The number of CVAs decreased by 13% in January 2025 compared to January 2024 and 18% from December 2024. Numbers remain low compared to historical levels. There were 9% more CVAs in 2024 than in 2023 and approximately 80% more than in 2022, which had the lowest yearly total since 1993. Despite this increase, 2024's number was just under 60% of the 2015–2019 average.

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Monthly Insolvency Statistics: January 2025

Will I Go Bankrupt If I Am A Director Of A Company That Goes Bust? Business Asset Disposal Relief Can I Sell My Company’s Assets Prior To A liquidation Help for Struggling Businesses What To Do If Your Business Or Company Is In Financial Trouble How Can I Legally Take Money Out Of My Limited Company? Company Insolvency in Scotland Secured And Unsecured Creditors – What Is The Difference? How Long Does It Take To Liquidate A Company? Trading Whilst Insolvent – Worried Directors Guide Are Directors Liable For The Debt In A Limited Company? Cheapest Way To Liquidate a Company

UK SME companies run by women are less likely to go bust than companies run by men. Companies Run By Women Less Likely To Go Bust UK SME companies run by women are less likely to go bust than companies run by men.

Why Directors Delay Getting Advice

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