Significant increase in bad debts reported to the MIA
06 Mar 2013
The MIA operate the only FREE, monthly credit reporting service in the UK motorsport industry, exclusively for its members. This special service gives an insight into the position of bad or outstanding debts throughout the year, using information reported by members, in confidence.
As a warning to members, the MIA reports that in the final five months of 2012, the scale and size of the bad debts reported were at an all-time high, more than double the value of bad debts reported 12 months earlier.
Chris Aylett, CEO of the MIA, says “This valuable data signals an increasingly weak cash position in the final few months of 2012, across the industry. This may affect the ability of some companies to meet financial commitments in the first period of 2013 – particularly if the bad debts reported fail to be settled. We recommend all members be, particularly, prudent with their customer credit checks, and to work closely with essential suppliers to ensure finances are in place to meet commitments. We encourage all members to participate in our monthly free credit reporting service so they can monitor the sources of bad debts for themselves”
For more information on the credit report, please click here