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Insolvencies surpassed 12,000 in 2024, according to Alares’ latest credit insights report.
Alares attributed much of this to catching up from the COVID-19 lull. From 2020 to 2022, there was a net reduction of 8,500 insolvencies. However, this trend reversed in 2023 and 2024, when there was a net increase of 4,000.
Small business debt restructuring has emerged as a way for small businesses to reorganise their debt and continue operations. As the graph shows, this trended upward for most of 2024.
Small business restructuring involves negotiating with creditors to alter loan terms and payment schedules or even reduce the amount owed. This allows struggling businesses to manage their debt and avoid insolvency.
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