Business debt a growing problem in Scotland

Many businesses in Scotland are struggling with massive debts which could force them to go under in the coming months, according to a report from accountancy practice Campbell Dallas.

The group are forecasting a massive surge in the number of businesses that go bankrupt or fold before it gets that far over the course of 2008.

David Hunter, head of business recovery for Campbell Dallas commented, "Suppliers are finding it particularly difficult to pass on rising costs to their customers. That's the first part of the problem."

He added, "At the same time, banks are not as generous as they used to be, and because of the way they've tightened up their own practices, they're accelerating the end for businesses that are already struggling."