Bosses urged to seek debt advice
Thu, 22 Oct 2009
Business owners should be taking every step possible to safeguard the future of their businesses as the downturn ensues, it has been suggested.
A spokesperson for the UK Insolvency Helpline claimed that many firms are draining resources because of a lack of cash, increasing the risk of corporate failures.
He said there has been a 30 per cent increase in calls made about insolvency in recent months, attributable to the fact the banks are recommending this course of action.
The spokesperson said that in many cases, debts have got to the point where firms need to take initial advice.
"We are seeing a huge increase across the board, from all different types of companies," he added.
"It's a domino theory. First of all it is personal debt and then eventually it then goes to company debt."
Business rescue group Begbies Traynor has predicted a 'deluge of business failures' in 2010, as part of its latest report.
The group suggests that the UK may be at the mid-point of a 'W' shaped recession, but at present, the number of companies with significant and critical financial problems has fallen in absolute terms; both year on year, and quarter on quarter.
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