Bad debt owed to the farming and agriculture sector increased by 362 per cent last year as company failures rose.
Bad debt owed to the farming and agriculture sector has increased by 362 per cent on last year, as company failures rise across British industry.
Creditsafe’s Watchdog report revealed company failures in the sector had doubled from eight to 16 since the same period last year, leaving behind ‘bad debt’ owed to suppliers.
The industry was hit with £738,880 of bad debt in the last 3 months
The average amount owed to farming companies from failed businesses
The amount of bad debt owed to other companies from farming in the last 3 months.
The average owed to companies from failed farming businesses
There was a 30 per cent rise in the amount of company failures across the 12 sectors surveyed in the report.
However, there were some positives, with employment up 44 per cent on the year and the number of active companies rising by 10 per cent.
Creditsafe UK chief executive Chris Robertson said recent high profile failures seemed to have set a ‘worrying trend’ for the UK economy, alongside Brexit uncertainty.
“Despite a few green shoots of growth in the first quarter of the year, it is disappointing to see that across our 12 key sectors the UK is moving in the wrong direction yet again and continuing to add to levels of supplier bad debt,” he said.
“A 30 per cent jump in company failures is certainly a cause for concern and companies need to be future-proofing their operations and protecting themselves from potentially damaging business endeavours.”