According to recent insolvency statistics from Infolink, total unpaid/unsecured credit losses totaled over £1.9 billion for the second half of the year, up 6% on the first half of the year. 80,000 ordinary unpaid trade creditors (excluding 8,000 occurrences of HMRC as creditors) lost an average of £23,900, from 5,178 insolvencies. The average asset shortfall for unsecured creditors in each Insolvency was approximately £499,000.

At least 20% of the unpaid creditors don’t have sufficient financial reserves to stand the losses they are incurring; almost 10% of the unpaid creditors are themselves insolvent and 15% have a working capital deficit.

With only 10% of unsecured creditor losses covered by a trade credit insurance policy and 20% of unsecured creditors not having the financial reserves to stand the trade credit losses, it is hardly surprising that unsecured creditors are more than 3 times as likely to enter insolvency proceeding themselves, when compared to rest of the business universe.