Rise in small businesses seeking financial distress support

Based on those contacting the firm’s mentoring and advice service, this volume now outpacing the volume of calls it received at the height of Covid-19 hospitalisations. 

From 1 January 2022 to the end of August, Purbeck saw a 67% increase in businesses utilising its support and mentoring services compared to the same period in 2021 - a period that covered the third national lockdown and the steepest rise in Covid-19 admissions to hospital. So far in September, calls to the service are 80% up on 2021. 

Purbeck Personal Guarantee Insurance managing director Todd Davison said: “Purbeck is used to supporting businesses in financial distress – this is part and parcel of the insurance we offer - but clearly many firms have been deeply concerned about making ends meet in the face of rising costs.  

“While news of a slight easing of Consumer Price Inflation in August was welcome, economists warn it is likely to rise again later in 2022. Cancellation of the planned rise in corporation tax and a reversal of the 1.25 percentage point rise in National Insurance contributions may help many small businesses in the coming months and we welcome news of the widening of eligibility for the Start-up Loan Scheme.”