Debt decrees against Scottish businesses hit record low

A decree is incontrovertible proof that debt has not been managed.

There were 976 business decrees in Scotland during the third quarter of 2016, a year on year decrease of nine percent. Owing to an unusually large ordinary cause decree against one company worth £20.8 million, the total value surged 462 percent to £25.9 million. Excluding this decree, the overall average value rose 22 percent to £5,222 as the total value increased 11 percent on the same period last year.

The main reason for the fall in the number of decrees was a 17 percent decline in decrees against unincorporated businesses, which are typically smaller firms. The number of corporate decrees remained relatively static. Again ignoring the decree worth £20.8 million, the average value of a corporate decree rose 26 percent to £6,955, while the average non-corporate decreee increased six percent to £3,395.

“It is good to see small firms leading the way as businesses in Scotland manage debt better,” said Registry Trust chairman Malcolm Hurlston. “Small firms are often more exposed but they have prospered in calmer waters. Stability is important in pre-Brexit time.”

In Q3 2016 Registry Trust received 7,821 requests to search the register for Scotland online at www.trustonline.org.uk.

Through TrustOnline 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.”

Registry Trust is the non-profit organisation which collects decree and judgment information from jurisdictions across the British Isles and Ireland. In Scotland it collects information on small claims and summary causes, and ordinary cause decrees.