New report highlights agents’ cash problems

Report by Steve Jones

AGENTS are facing mounting debt as they battle to stay afloat and compete in the new marketplace, a new report has revealed.

The study showed eight out of 10 agents had some form of debt last year with almost 100 admitting they are forced to borrow cash to avoid going to the wall.

Almost half increased their level of debt last year while 35% have twice the average level of debt.

The study, carried out by financial analysts Plimsoll stated: “Two key reasons seem to be increasing travel agents’ formal lending. They are financing losses to keep afloat and stay in the marketplace and, for 96 companies, borrowing money is a means of staying in business.”