When it's not a good time to be young!
Companies House has seen a significant increase in new business incorporations in the last two years. Around 800, 000 to be exact. But as an any credit analyst will tell you, the majority of companies that fail do so in their first two years of existence. So for a large number of new companies, the economic downturn and credit crunch have come at exactly the wrong time. Graydon will be keeping its eye on the liquidation statistics as they roll out through the year, and check to see just how many of the failures are newly incorporated concerns. Our assessment of the situation is that 2008 is not a good time to be young!!