Debt judgments against Scottish businesses falls

The non-profit organisation, which collects judgment information from jurisdictions across the Britain and Ireland found there were only 875 judgments against businesses in Scotland in Q1 2016, 42 percent lower than the same period in the previous year.

In Scotland the Registry Trust collects information on small claims and summary causes, and ordinary cause decrees.

A judgment is incontrovertible proof of unmanaged debt.

The body found that the total value of judgments north of the border was £4m for the first three months of 2016, a year-on-year fall of 16 percent.

This contrasts with the surprise hike in judgments during the first three months of 2015.

There was some divergence in the performance of incorporated and unincorporated businesses since the decrease in the number and value of corporate judgments was greater.

The number of judgments against incorporated businesses fell by 47 percent to 337, compared with the 36 percent decrease for non-corporates to 538. Similarly, the total value of judgments against corporates fell 25 percent to £1.6m, which contrasts with the eight percent decrease against non-corporates to £2.5m.

“The first quarter of 2016 brought good news for businesses in Scotland, great and small,” said Registry Trust chairman Malcolm Hurlston CBE. “But not too much can be read into the results of one quarter in isolation.”

In Q1 2016 Registry Trust received 8,062 requests to search the register for Scotland, the bulk of which were made online at www.trustonline.org.uk.

TrustOnline allows anyone to search for judgments and similar information registered against businesses and consumers in any jurisdiction across the British Isles and Ireland.

“It is a unique benefit for consumers 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.”