Business failures ‘past their peak’

Most of the downward turn in business start-ups is over and things are expected to improve, an industry specialist has stated.

Nic Bayley, the head of product for Barclays Local Business, claimed that the worst is over for failing businesses and those facing bankruptcy.

“Business closures are past their peak and are likely to level off shortly,” he said.

While the company expects some further decline, the amount of small and medium enterprises could “pick up” by next year, he added.

He praised firms that had been prudent with their finances in the current economic climate.

“Small businesses have kept their borrowing in line with their assets, rather than borrowed excessively,” he noted.

Research from Barclays found that 380,000 businesses were expected to start up during 2008.

Recently, companies were advised to offer support to employees struggling with debt management by medical insurers Bupa, as health problems can be caused by stress over financial issues.

By Jamie Price