SMEs in financial hot water

SMEs are at financial risk following a change in the law that means they are unable to claim back money owed to them if a supplier goes bust or does not pay their debts.

The law was implemented this April, and as a result many smaller businesses will not be able to afford to take legal action against businesses that owe them money.

Latest data from Encompass Corporation, amongst lawyers and insolvency professionals, shows that over 40% believe that claims will not proceed because of the change in the law and a lack of available funding.

Read the full report below:

SMEs unable to claim debts following law change

SMEs are at financial risk following a change in the law that means they are unable to claim back money owed to them if a supplier goes bust or does not pay their debts. The law was implemented this April, and as a result many smaller businesses will not be able to afford to take legal action against businesses that owe them money.

The LASPO survey results:

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View the LASPO results infographic here


about encompass

Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.

want to turn regulation compliance
in to a competitive advantage?

Contact us today to arrange your personalised consultation of encompass. Discover how our KYC automation software can help your business accelerate onboarding and give you peace of mind that you are regulator ready.

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