The North West saw the "most alarming" increase in businesses entering financial distress during the first three months of 2021, according to new figures from Begbies Traynor.
The firm's latest Red Flag Alert for the first quarter shows that 70,496 businesses could be classed in financial distress, up 18% from 59,915 during the final three months of 2020.
Begbies Traynor added that Northern Ireland's figures of 11,619, up from 9,822, was also "alarming" while businesses in London experienced a 46% year-on-year increase in significant financial distress, and a 14% quarter-on-quarter increase from 167,591 to 190,829.
Overall, the research has recorded 723,000 businesses in significant financial distress after the largest numerical quarterly leap (93,000) recorded in the research since its new version was launched in 2014.
Begbies Traynor also found that there has been a 42% increase in significantly distressed companies since Q1 2020 (509,000 - Q1 2020, 723,000 - Q1 2021).
Financial distress in the transportation and logistics sector increased by 56% (12,191 - Q1 2020, 19,055 - Q1 2021), was up in the real estate and property services sector by 51% (56,482 - Q1 2020, 85,165 - Q1 2021), rose in the financial services sector by 50% (12,975 - Q1 2020, 19,466 - Q1 2021) and was up in the construction sector by 47% (65,564 - Q1 2020, 96,557 - Q1 2021).
The Red Flag Alert has been measuring and reporting corporate financial distress since 2004.
Begbies Traynor partner Julie Palmer said: "The dam of zombie businesses could be about to break. The last 12 months have undoubtedly been some of the hardest that many businesses have ever encountered.
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"We must remember that this is no ordinary recession and while businesses have had significant assistance from central government, large parts of the economy have been put on hold with substantially reduced revenues.
"Opening the doors of consumer-facing businesses on April 12th may well seem like a big step in the right direction for many of these companies as they try to shake off the traumatic trading of the last 12 months.
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"However, our experience shows that unmanageable levels of debts and subsequent overtrading are likely to be the hidden icebergs waiting to sink even the highest profile businesses.
"However, businesses that were profitable before the pandemic, have manageable debt and are still relevant in the post pandemic world could flourish and be the real winners in this climate.
"They need guidance and need to act quickly. In a market that is moving fast dithering companies will be swept away in the sheer force of distress that is forcing its way across the 海角视频."
Executive chairman Ric Traynor said: "With the 海角视频 insolvency rate estimated to rise by more than 50% in 2021 these latest red flag figures make for grim reading.
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"Despite the unprecedented central government support offered to 海角视频 businesses it is now clear that many companies are struggling under the weight of increased debt combined with poor revenue streams.
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"The termination of this support will leave many businesses exposed to the true scale of their debt, and in many cases this will be simply unsustainable, with research indicating that some companies will be unable to even meet their interest repayments.
"This rise of insolvencies will not just be the well documented 'zombie' businesses but credible businesses who have suffered disproportionately because of the pandemic.
"The availability of credit insurance is also likely to be a factor as cover is either withdrawn, restricted or simply becomes too expensive for companies.
"Additionally, the re-opening of the economy also presents hidden risks for many companies. Overtrading will be a real risk for many and companies should monitor their cashflow very carefully - especially as credit lines have been stretched to breaking in many cases.
"However, the longer-term worry for the 海角视频 businesses are the structural changes the pandemic has brought to many aspects of our life.
"While some might say that the changes to the retail landscape were long overdue, with a move to online trading, other sectors will be impacted longer term by changing customers' needs.
"All businesses should take seriously these threats, examine their model and adapt if they are going to survive."