ONE THIRD OF SMALL BUSINESSES ARE HIGHLY IN DEBT



October 12th, 2021.



One third of UK small businesses are now highly in debt, according to the Bank of England – more than double since pre-Covid.


The Bank of England expects a rise in the number of small businesses that collapse this year as the economy recovers and restrictions on landlords issuing winding-up orders are removed.

In its quarterly financial stability update, the bank warns that many of these small businesses in unsustainable debt had never borrowed before, and some would not have met pre-pandemic lending criteria.

The central bank said SMEs accounted for two-thirds of the £79bn increase in UK corporate debt between the end of 2019 and the first quarter of 2021 as they used Government Covid-19 emergency financial support just to stay afloat.


For the full story at smallbusiness.co.uk CLICK HERE.
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