More older companies are applying for insolvency than start-ups.
That's one of the findings by Deloitte, which says the number of companies filing for insolvency decreased by 18 per cent in the first three months of 2020, compared with the same period in 2019.
The group says it is too early to say whether Covid-19 has had an effect on the figures, but do expect over the next three months for more companies to have money woes.
David Van Dessel, from Deloitte, explains why older businesses may be applying for insolvency.
"The number of companies that reach that age bracket, and perhaps it's the point in time where a company moves from being small to medium, which requires the additional working capital, which means that companies are committing precious resources to expand their businesses, which in turn creates risk and they could be falling at that risk point when they move from small to medium."
