SMEs dominate the latest annual insolvency statistics and highlight the lagging impact of Covid on small business, ASIC says.
Its series 3 data, based on liquidators reports, shows more than eight out of 10 companies entering administration in FY23 had assets of $100,000 or less while just one in 20 had $1 million or more.
However, when it came to liabilities almost one-third owed more than $1 million and almost 500 companies of the 5,440 reports collapsed with debts above $5 million.
ASIC said small to medium size corporate insolvencies continued to dominate external administrators reports with an average of three to four causes of failures for each company.
The most common reported causes were inadequate cash flow or high cash us…
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