The number of ‘zombie’ businesses (those that can only afford to pay the interest on their debt) has fallen significantly – down from 154,000 in August last year to just 69,000. 

According to the research from R3, it is the lowest number of zombie businesses since June 2012, when their surveys began.  

Clearly, more and more businesses are financing their way out of this situation largely due to a wide range of available funding, low oil prices and a strong pound.  
The continuation of low interest rates has also helped businesses get back on their feet. 

However, the research warns that 77,000 businesses would struggle financially if the interest rate rose by 1% or more. It could be a while yet though before this happens. 

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