Are you looking for business finance?
Research reveals that 79,207 construction businesses have experienced “critical financial distress” in the three months leading up to the 30th of September 2022, an increase of 9% from the previous year.
Data from the County Court Judgements (CCJ) shows a 24% increase in the number of construction businesses being issued with a CCJ and owe more than £5,000 in corporate debt. A total of 561 construction businesses were in this situation in Q3 2022, compared to 453 in Q3 2021.
The factors causing financial hardship for construction businesses include the impact of rising inflation on the economy, higher prices for labour, materials, and energy, as well as additional pressure to repay the government’s COVID support loans granted to help businesses through the pandemic.
Begbies Traynor partner, Julie Palmer said, “Having emerged from the pandemic, many companies were hoping for an economic boom but that has simply fizzled out, as supply chain issues and the invasion of Ukraine have taken their toll by driving up raw material and energy costs and reducing both business and consumer confidence.
“We are now in a very high inflationary environment that’s piling pressure on businesses that were already weakened by the shock of the pandemic.”
“Businesses that borrowed to survive for years are stuck with levels of debt that they may be unable repay – especially with interest rates expected to rise to circa 6 per cent in 2023,”
To get further information about this news story, or to seek financial help for your business, email construction@maffinancegroup.co.uk, call 0115 958 6872 or fill in an enquiry form below.
Have Any Questions?
Qualified Team Available
In the UK the financial year begins on the 6th of April of the current year and ends on the 5th of April of the following year.
The number of supermarkets offering EV charge points is set to increase by 59% in 2024.
Half of all local authorities now have an electric vehicle charging strategy in place.
The Chancellor has today unveiled the contents of this year's Budget in the House of Commons.
The Bank of England has held interest rates at 5.25% for the fourth time in a row, but cuts are expected later in the year.
New research from Aldermore’s Green SME Index has revealed that 489,000 UK small and medium-sized businesses (“SMEs”) qualify as 'green'.