Business loan write-offs are at an all-time high, according to data from the Bank of England. Sterling write-offs to non-financial corporations – which just means businesses that aren’t banks – reached almost £2.5bn in the last quarter of 2010, higher than the previous record of £2.4bn in Q409 (at least as far back as 1993). This is about half a per cent of all loans to NFCs.
NFC write-offs make up half of all sterling write-offs, exceeding credit card write-offs, which also rose significantly q-o-q. Total write-offs are slightly below the Q409 record, mainly because write-offs are lower for individuals’ loans that are neither credit cards nor secured on dwellings.