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Corporate debt consultancy customers 'rely on Time to Pay scheme'

Date Added: 17/11/2010  

Business owners such as those at firms employing the services of a corporate debt consultancy have indicated that a squeezing of the Time to Pay scheme could be dangerous to their prospects.

According to insolvency trade body R3, the programme is "invaluable" to small businesses.

But Steven Law, president of R3, pointed out that there is a danger firms could become "zombie companies" and need to take the advice of a corporate debt consultancy if they rely on the scheme too heavily.

"We believe that it is important that it remains available as a breathing space for viable businesses, but that it is not used as an alternative credit facility," he said.

A poll recently found that almost a third of insolvency experts believe that changes to the Time to Pay programme would be the most harmful thing the government could do to damage potential growth.

Chair of the British Interactive Media Association Justin Cooke recently called for the government to get the banks lending to firms such as corporate debt consultancy customers.

Posted by Miles Pritchard

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