Credit reporting firm illion finds that the number of small businesses at risk of collapse has jumped by 20 per cent in a year, while large firms have seen a 20 per cent reduction in insolvency risk.The data suggests hundreds of thousands of small businesses are at an elevated risk of folding during the next year.
In other words, it looks at how long businesses are taking to pay their invoices, to get an idea of how close they are to collapse.Its latest report shows hundreds of thousands of businesses are showing an elevated risk of failure. "And just the sheer portion of businesses that were rated as 'severe risk of failure' in the coming year actually has jumped about 80 per cent in the past year," warns Mr Hasseldine.The smaller the business, the more at risk it is of failure.
"Spending with department stores that has been broadly stable has been at odds with spending in retail clothing stores, down eight 8 per cent." "Energy, rent, insurance, the cost of borrowing, the spectre of potentially another interest rate rise."There's relatively strong demand coming through in some sectors but when that cost of doing business has increased exponentially, that makes it really difficult to trade.""It's a worry for us because normally small business leads into the broader economy and that's certainly what we've seen in the '70s, '80s and '90s recessions.
Administration Illion Credit Agency Alan Oster COSBOA Economy Recession Downturn Interest Rates Inflation Costs Cost Of Doing Business
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