Small businesses are increasingly concerned about their ability to repay bank and other finance debts, research conducted for Business Club has revealed.

Nearly half (46pc) of small businesses were worried about their ability to repay debt in the three months to April, up from 34pc in the previous quarter, a regular analysis of the financial position of companies by insolvency trade body R3 revealed.

Frances Coulson, R3’s president, said: “An alarming minority of the business community are struggling to address their financial woes. That things aren’t improving for these businesses at a time when monetary and fiscal policy should be benefiting them is a real concern. These businesses are likely to fall on hard times when interest rates inevitably rise, making it more difficult to service their debt.”

The ability to repay debts to trade creditors was also a marked concern. More than a third of small companies (38pc) said they were worried about debts to trade creditors, up from just 14pc in the previous three months. Worries over outstanding tax also rose, b.....Read more HERE