More British Firms Face Financial Trouble

The number of British businesses with financial problems is on the increase, according to a report by. insolvency practitioners Begbie Traynor.

They have revealed that 147,836 firms got into trouble in the final three months of 2010, a 4 percent increase from the previous year.

There was a 20 percent increase in companies in trouble from the previous quarter.

Small businesses are expected to be the worst affected in the year to come.

The report found that 3,018 companies were in the “critical” category, owing £52.7 billion to creditors and suppliers.

Executive chairman of Begbies, Ric Traynor said: “For smaller businesses, we are entering the darkest hour before the dawn as they face the dual challenges of weak domestic demand and greater pressures from larger competitors and business customers looking to preserve their own profitability.”

Ricky Steedman