The number of businesses rated as being in critical financial distress jumped by 36% to 2,229 in Q4 2022, compared to the same period a year ago, in the latest Begbies Traynor Red Flag report.

Firms found to be in critical distress typically hold minor county court judgments (CCJs) of more than £5,000 filed against them. Significant distress is defined as those with CCJs of less than £5,000.

Records of judgments are kept for six years unless the business pay the full amount within a month.