SCOTTISH CORPORATIONS FACE JUDGMENTS TOTALLING £2.2M IN Q3 2019

Small businesses faring much better as judgment values fall

The amount owed by Scottish corporations to creditors rose to £2.9million in the third quarter of 2019, a rise of 39 percent on the £2.1million owed in the third quarter of the previous year, according to figures released today (5th December 2019) by Registry Trust.

Overall, the total value of decrees against Scottish businesses of all types rose to £3.6million in Q3 2019, an increase of 24 percent over the year. However, the number of judgments rose by only 7 percent from the previous year’s figures.

Non-incorporated companies, generally much smaller businesses, fared much better seeing a fall in the total and average values, which were down by 13 and 16 percent respectively.

Scottish claimants or pursuers have been increasingly taking out decree judgments valuing over £1,000 against non-corporate businesses, despite the total value of debt in Q3 2019 dropping to £655,220 and averaging in at a £4,853.

In contrast, the number of consumer decrees fell by 14 percent compared to last year’s Q3. A decrease in the number and value of consumer decrees suggests better management of debt by consumers in Scotland.

There were 4,859 debt decrees registered against consumers in the third quarter, with a 14 percent decrease bringing the total value to £13.2million. The average value of consumer decrees also fell to £2,715, rising a mere 0.67 percent compared to the same period of 2018.

Ordinary cause decrees against consumers in the third quarter of 2019 dropped by 9 percent to 493, showing a decrease in number of decrees across the board for consumers. The total and average values fell to £6million and £12,347 respectively, a positive outcome for Scottish consumers.

The number of small claims against consumers also fell by 15 percent in Q3 2019 to 4,366, total value following suit with a 11 percent decrease on Q3 2018 figure’s to £7.1million. However, the average value increased by five percent to £1,627, with pursuers taking out fewer but larger small claims decrees against consumers.

Registry Trust is the non-profit organisation which collects decree and judgment information, in Scotland it collects information on small claims, summary, ordinary cause and simple procedure sheriff's court decrees.

Trust chairman Mick McAteer said: “Accurate data on judgments (or decrees) promotes responsible lending and borrowing and is an important indicator of the state of the economy and household finances. Registry Trust data suggests that larger Scottish companies are facing a more difficult time. But, the picture is more favourable for smaller companies and consumers”.