Tsunami of Debt

Independent businesses now owe four times as much debt as they did a year ago, and this is compounded by the fact that many have also had to take on government-backed loans.

The prospect of a large number of business closures is concerning for the country at large, and will impact the prospects for survival of many other small businesses who have outstanding debts to collect from these failed businesses.

To mitigate this risk it is always crucial to get your payment process right from the start to ensure that unpaid invoices don’t keep stacking up.

The UK's small shopkeepers are struggling under a £1.7bn mountain of debt, a former retail chief has warned. Independent High Street businesses now owe four times as much as they did a year ago, said Bill Grimsey, ex-boss of Wickes, Iceland and Focus DIY. The warning comes in his latest report into the future of town centres and High Streets. Unless the government steps in, the UK could face a "tsunami" of shop closures this autumn. "But they've also been forced to take on government-backed loans, which they would not have normally been able to get because their balance sheets wouldn't allow it.They are struggling to manage a mountain of debt and need help." The review is calling for a government "forgiveness" scheme to write off such loans for viable small businesses. A Treasury spokesperson said: "Our unprecedented £350b...

https://www.bbc.co.uk/news/business-57855682