Opportunities for stability and growth in 2025

Christine Cullen is Managing Director of CRIFVision-net

As businesses and consumers navigate ongoing cost and labour pressures, the latest data on commercial and consumer judgments highlights both the challenges and opportunities for financial resilience across Ireland.

While 2024 recorded a significant rise in court judgments awarded against both companies and individuals for failure to settle debts, it must be acknowledged that this comes during a period of acute cost pressures across many sectors, with outstanding debts from Covid also playing a part.

Now may be an opportune time for both businesses and individuals to strengthen their ?financial planning and recovery strategies to prepare for any ?future challenges. Businesses in particular, may wish to place emphasis on reaching gearing levels that are sustainable for their business model and to secure long term growth.

Commercial judgments reflect changing economic dynamics

Interest rates should also be considered when evaluating the utility of debt in running your business. In the years preceding the outbreak of the Covid pandemic and the Ukraine War, Europe enjoyed a period of historically low rates, which was a ?positive resource for SMEs.

In recent times we’ve seen first-hand how some economic shocks just cannot be predicted and it’s important to note that judgements do not necessarily always imply an inherent negligence in business planning.

According to Crif-Vision net data, the number of commercial judgments increased in 2024, reaching a total of 1,400, up from 700 in 2023—an indication of shifting financial conditions for companies. The total value of these judgments rose to over €28.3 million, marking an increase of almost €12 million compared to 2023.

Despite these figures, businesses could strengthen their financial health through proactive measures such as restructuring, enhanced financial planning, and improved cash flow management. Those organisations who are taking steps to navigate these challenges by implementing more robust financial strategies and seeking alternative funding solutions will be better positioned for sustainable growth.

Consumer judgments

Consumer judgments also saw an increase in 2024, with 1,888 judgments awarded—631 more than in 2023. The total value of consumer judgments rose to €227.4 million.

While some large cases contributed to this figure—including a €159 million judgment against a hotelier in the first quarter—the overall trend suggests that risk management and analysis in issuing credit is becoming more important than ever. Businesses that stay in tune with the ?economy can gain an advantage make informed decisions and planning ahead – especially when it comes to managing credit terms and cash flow effectively.

On a positive note, awareness of financial planning and debt management solutions is increasing. More consumers are seeking advice on managing their finances, restructuring debt, and exploring solutions that enable long-term financial stability. The state Money Advice and Budgeting resource is also a fantastic, confidential resource for individuals with debt management issues.

Proactive financial strategies

The rise in judgments across both the commercial and consumer sectors highlights the importance of proactive financial strategies. Businesses and consumers are recognising the need for early intervention, whether through professional financial guidance, restructuring opportunities, or alternative financial support options.

Business owners are not alone in facing their financial challenges. Many financial institutions and advisory services are stepping up to provide support, offering tailored solutions to help individuals and businesses navigate their financial situations more effectively. This trend demonstrates a shift towards a more informed and prepared approach to financial management which can only help.

A positive outlook for the future

These figures are a reminder of the importance of financial resilience, and they highlight the many opportunities available for businesses and consumers to take control of their financial future ahead of time. With the right planning, strategic support, and proactive decision-making, financial challenges can be transformed into opportunities for stability and growth.