Surge in covid loan defaults suggests more insolvencies are coming, accountant warns

By Tom Lowe2023-09-13T11:19:00

Source: Shutterstock

Number of construction firms which have defaulted on bounceback loans has jumped by 40% in a year, according to Price Bailey

A surge in construction firms defaulting on covid loans suggests the number of failures like that of Buckingham Group are likely to rise, new analysis has found.

Evidence gathered by accountant Price Bailey also suggests that industry bosses are underestimating their insolvency risk at a time when high interest rates are increasing the cost of servicing loans.

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