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Look for more: Bankruptcy Insolvency Practitioners in Bradford
We are an established insolvency practice, dealing with all aspects of personal and corporate insolvency. Together with our expertise in business recovery or turnaround and access to several areas of funding, we are well placed to identify solutions to any business debt problems.
Last Thursday the Bank of England confirmed that it will hold interest rates at 0.5% for a 27th consecutive month.So, what are the implications of this in the business world? The latest figures show a 0.5% increase in GDP in the first quarter. With such a low level of growth, businesses are only just keeping their heads above water; an increase in interest rates would have seriously hindered possibilities of additional growth. Hopefully the interest rate freeze will aid survival of struggling businesses and decrease the second quarter’s insolvency rate in relation to the 4% increase in the first quarter.Despite no movement in the rate, Insolvency Manager at Kingsland Business Recovery, Rehan Ahmed is advising a cautious approach to additional surrounding costs. ‘Our goal is to assist business with financial difficulty. The interest rate freeze is good for consumers, but with inflation rising and projected to reach 5% by the end of June; it is the increase in general costs like supplies, fuel and utilities that are causing business to have to cease trading and maybe consider formal insolvency options. These costs are a real danger to businesses at the moment and need to be maintained’.In short, the interest rates remaining stagnant have given businesses the freedom to focus on other increasing costs. Unfortunately it may not mean a decrease in insolvency, but it will certainly help in what is one of the worst recessions in the last 100 years.
Liquidation Administration CVA Bankruptcy IVA Pre-pack Administration
R3 ACCA Insolvency Practitioners Association
Mon-Fri 09:00-18:00, Sat 09:00-13:00
2009
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