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Desperate sellers of business property have hit an all time high with enquiries for quick fire sales up 118% in 2008 – showing that distressed finances need to be addressed before it's too late.

Property Portfolio Rescue, a distressed asset company, has painted a bleak picture from its data. It says unemployment is set to exceed three million before the end of 2009, repossessions are set to reach 82,000 in 2009 and by quarter two 2009 company liquidations are expected to push 6,000.

The company says the majority of their sellers, in excess of 2,900 in Q4 of 2008, are in long-term arrears and are facing future repossession. As a result, it says PPR enquiries are proving to be an accurate lead indicator for future repossessions, one quarter on. Based on this trend, it says there will be 82,000 repossessions by the end of 2009.

It also says increasingly small businesses are being forced to divest property assets in order to generate cash flow and avoid insolvency. This is a last resort and one that never has to be got to. For every small business owner there are always financial alternatives to consider before having to sell up.

Nick Hopkinson, director of Property Portfolio Rescue, says: "The biggest issue driving enquiries is the immense pressure that businesses and landlords are being put under by their banks. The index is a very real indicator of an ever-worsening cycle of distress, resulting in unemployment exceeding three million before the end of the year.

"This is just the tip of the iceberg in terms of the number of businesses currently in trouble – many of whom are seeing falling revenues, rising debts and unpaid creditors. Government initiatives are welcomed but have come too late to help small businesses that were showing signs of distress six months ago and are now at a point of no return. We urge business owners to act at the first sign of cash flow problems and look to restructure debt as soon as possible."

SOURCE: Property Portfolio Rescue, 16/02/09

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