Zombie Firms Dragging Down Business

7th December 2017.

Thousands of “zombie firms” are holding back the economy by soaking up credit that could be used to finance the businesses of the future, a study has claimed.


The Organisation of Economic Co-operation and Development (OECD) recently released a study on the impact so-called ‘zombie firms’ are having on Britain’s productivity and the overall economy. The report strongly suggests a clear out of these firms will allow the country to grow more quickly.

Zombie firms have long been a source of great concern from financial bodies like The Bank of England and The Office for Budget Responsibility. These small businesses are just about surviving on the surface but do not have capital to expand or to drive industry.

The OECD claims that zombie firms are a “drag” on productivity, as they prevent investment and skills from flowing to other more successful businesses, as well as slowing down the progression of new practices and new technologies within the industry.

Our historically low interest rates were blamed for enabling these companies to limp on without being forced to restructure.

Nonetheless, the OECD insists that Britain is not the only large nation to this problem. While only 3.85 per cent of the UK’s 2.5 million companies are “zombies”, 10 per cent of Spanish firms, 5.8 per cent of Italian businesses and 7.6 per cent of Japanese companies qualified.

The study found that the UK would achieve a 0.4 per cent increase in productivity if it pushed out the crippled firms.

 The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

See all our latest news here!

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

Watch the video to find out how CPA can help you!

How many excuses are there for non-payment?

Click the image to discover step by step advice on how to deal with them!






Discover how to improve your cashflow in 3 steps.

Click the image to find our answer to the question “How can you get paid on time?”





Read our blog – Debt collection agency

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog -What is a credit management company?

Read our blog -Credit Management that works!

Read our blog – How to select a debt collection agency

click to see read about our successes

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.