Business decrees at record low – but warning signs at lower end

Registry Trust collects decree and judgement information from jurisdictions across the British Isles and Ireland. In Scotland it collects information on small claims and summary causes, and ordinary cause decrees. A decree is incontrovertible proof that debt has not been managed.

There were 3,523 business decrees in Scotland during 2016, 24 percent fewer than the previous year, according to the non-profit organisation.

The total value surged to £45.8 million, the highest on record, but this was due to an unusually large decree against one company during the third quarter of the year worth £20.8m. Excluding this decree, the total value fell 13 percent to £25 million and the average rose five percent to £7,095.

Excluding the single large decree, the average value of a company decree rose 20 percent to £11,054 compared with an 18 percent decrease to £3,732 for generally smaller unincorporated businesses.

“Scots are on top of their borrowing more than ever before, according to our latest evidence,” said Registry Trust chairman Malcolm Hurlston CBE. “This is good news for the economy ahead of Brexit uncertainty. Small unincorporated businesses may need to be on the alert though. We are beginning to see them being pursued in the courts for smaller and smaller debts. Getting on the register is something they should take steps to avoid as more efficient lenders are finding the court solution pays.”

In 2016 Registry Trust received 30,644 requests to search the register for Scotland online at www.trustonline.org.uk. Through Trust Online anyone in Scotland can search for decrees and similar information registered against businesses and consumers in any jurisdiction across the British Isles and Ireland. “It is a unique benefit for firms to be able to check the debt record of any person or business with which they may be transacting,” said Mr Hurlston. “Negative information would certainly make me think twice.”