Late payments and other ‘objective problems’ are responsible for a massive 96% of all bankruptcies in the EU each year, according to figures from the European Commission.
In an official memo on the subject, the Commission calls such bankruptcies “honest failures”, as opposed to those arising from deliberate fraud by the entrepreneur involved.
Many of these are first-time entrepreneurs – and the Commission adds that those who go on to launch a second business are often better prepared for such disruptions.
The Commission is now working to make it easier for first-time bankrupts to re-enter the market by launching a second business.
“A failure in entrepreneurship should not result in a ‘life sentence’ prohibiting any future entrepreneurial activity, but should be seen as an opportunity for learning and improving,” the memo states.
However, it does little to help those who are affected by late payments and similar issues with their first business – leaving it in the control of the company owner to avoid bankruptcy.
At the Cash Protection Agency, we work with businesses big and small to pursue outstanding debts and deliver ongoing credit control services to help make sure client payments are received more promptly.
While some non-payment may still occur, we can pursue those outstanding invoices in the correct manner, applying statutory interest and other appropriate charges to the balance, and retrieve for you the maximum possible funds while leaving you free to run your business.