Employment agencies are risking bankruptcy and take-over by going into in to debt in attempts to gain an advantage over competitors, according to research by Plimsoll Publishing
The survey of 1,000 recruitment agencies found that 84 per cent were in debt, with over half increasing their level of borrowing last year. Only 144 companies showed no debt at all. 35 per cent of businesses owed over £360,000 to debtors – double the national average.
David Patterson, general manager of Plimsoll, said, "Companies with high levels of debt are vulnerable because they have no backup, so are at risk of being snapped up by cash-rich competitors looking to invest surplus revenue. Businesses using debt just to stay in the game should watch out."
By Matt Adey