More businesses seek advice as financial crisis bites deep

A legal firm is offering a free initial consultation to any local businesses concerned about their future.

Ellisons Solicitors, based in Suffolk, says rising numbers of firms are seeking advice on insolvency as they look to find a way through the ongoing economic crisis.

It has seen enquiries come in from businesses throughout East Anglia and across a diverse range of industry sectors.

The consultation offer comes amid fears that thousands of businesses across the UK face collapse as they try to balance rising costs and demand in a competitive market.

Scott Porter, Partner and Head of Corporate Insolvency at Ellisons, said: “It is inevitable there will be an increase in insolvencies this year when you take into account energy price increases, supply chain issues (delays and increased costs), repayments on bounceback and CBILS loans, and loss of confidence from investors and consumers. All while spending cuts and tax bills due from pandemic profits (when they may have been artificially inflated by furlough, grants and other support) are set to bite.

“Hospitality seems to be getting hit quite hard but we are seeing enquiries from various sectors across Suffolk which are struggling to cope.”

While help was at hand for businesses throughout the pandemic, thanks to low interest rates and government backed Covid support, the war in Ukraine has seen energy prices skyrocket, interest rates rise dramatically and most government financial help end all at the same time, making this a crucial time for businesses to review their position.

Mr Porter said businesses were being hit doubly hard with many struggling to hold on. “If you do have concerns about your business or want to understand your obligations as a director and your risk of personal liability if your business strays into financial difficulty, get in touch and we will be there to help.”

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