High interest rates following the pandemic when many organisations took out loans to survive mean an average of 7,000 businesses per quarter are expected to become insolvent next year.
The second quarter of 2023 saw over 6,700 businesses declare insolvency in Britain, more than double that of a typical quarter during the pandemic, according to consultancy the Centre for Economic and Business Research (CEBR).
Moreover, it added the worst is yet to come. The Bank of England has raised its main policy rate from 0.1% in December 2021 to 5.25% today, and the CEBR forecasts this to peak at 5.75%.
These higher borrowing charges will add pressure to those already paying back loans, as well as deterring investments in new projects and equipment…
Read the full article at: https://www.cips.org/supply-management/news/2023/august/insolvencies-expected-to-spike-as-rate-rises-hit-supply-chains/