Spike in businesses struggling with debt

THE number of Northern businesses just paying interest on their debts has risen to 45,000 – up from 10,000 in May 2013, according to research by insolvency trade body R3.

Its figures show that 13% of businesses in the North are now in this position, the same as when figures peaked in February 2013.

R3 said interest only debt repayment is a key indicator of a "zombie" business, but insolvency practitioners suspect the increase is down to late paying customers and cashflow problems associated with growth.<... For the full story register now for free or login below...