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LATEST NEWS & EVENTS Time to Pay 'being abused by businesses'  Businesses who may be talking to an insolvency lawyer are using a tax-easing scheme as an alternative credit facility, it is claimed. Frances Coulson, president of the commercial insolvency trade body R3, believes the Time to Pay initiative is resulting in "zombie companies". "If a business is on their third or fourth referral that should act as a warning sign; it indicates that there are underlying problems with the business's cash flow," she remarked. R3 members have recently seen a lot more Time to Pay applications turned down, Ms Coulson noted. Of the £970 million still due for payment, around £320 million is on track to be paid in the future but £650 million has not been paid as initially agreed, she explained. Ms Coulson noted, however, that the initiative has played an essential part in keeping corporate insolvency numbers down. Her comments come after R3's latest Business Distress Index revealed that six in ten (59 per cent) businesses are experiencing some sign of distress such as decreased profits or reduction in sales volume. Rick Munro, corporate recovery partner at Lamport Bassitt, said: "Companies struggling to pay their creditors when payments fall due would be well advised to seek advice from a corporate recovery solicitor earlier rather than later when the range of options available and goodwill on offer is greater." Posted by Alex McLean 
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