Rising Employment May Pose Threat to Business Solvency

The rising employment rate in Australia is not good news for everyone, according to prominent bankruptcy attorney Victor Sahn. Mr Sahn has proposed that the falling national unemployment rate could have a devastating impact for companies wavering on the edge of insolvency.

More employed citizens across the nation puts more money into circulation, which generally has the effect of increasing the inflation rate. But because a key defence against rising inflation is increasing interest rates, Mr Sahn predicts that companies who were surviving on access to low-cost capital will no longer be able to.

The unemployment rate has been falling slightly since January this year, according to the Australian Bureau of Statistics, from 6.4% to 6.2% in February, and further to 6.1% in March. According to MrSahn’s forecasts, this means that many Australian firms may struggle to stay afloat financially in the upcoming months.

If your company is facing increasing debt and impending insolvency, Insolvency Services Australia (ISA) can help. ISA is a team of licensed insolvency practitioners who can help any business suffering from a financial crisis. We provide services in liquidation, deed of company arrangements and voluntary administration.

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Our expert insolvency specialists offer free and impartial corporate insolvency advice. To get started on getting your company’s finances back on track, call ISA today on 1800 003 883. We are available 24 hours a day, seven days a week, to assist you with your queries.


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