Large amounts of debt can be a massive red flag if it’s a company you are about to enter into a business arrangement with. A recent survey however might help you decide which is the best part of the UK to be doing business in if you want to avoid potential problems with debt recovery.
The survey undertaken by company formation firm Turnerlittle.com found that Northern Ireland had the highest level of debt per business at £98,192 per business which is considerably higher than the UK region with the least debt per business, the East of England, which had an average debt level of £22,472.
What these findings reveal, however, is far from clear cut when considering the underlying health of the business environment in these regions. Possible reasons for the low level of debt in the east of England could be down to a lack of investment in business innovation which is something that may be holding businesses back in this region.
The national average company debt level for SMEs in the UK was calculated at £33,840 with the South West of England, Scotland and Wales all exceeding this figure, which suggests a healthier balance between debt levels and investment in these areas.