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.<... You can carry on reading TheBusinessDesk.com for free, but you have reached the maximum number of pages an unregistered user can view. To register for an account, click here or login below...