Highlighting a stable picture amongst businesses, the data shows that during September, 0.08 per cent of the business population (1,679 companies) failed.
Smaller firms, all those falling into the categories of between 1 and 50 employees, saw the greatest improvement in their average insolvency rate compared to September 2011. This was led by firms with 26 to 50 employees that saw their insolvency rate fall from 0.23 per cent to 0.19 per cent, while firms with 6 to 10 employees saw their insolvency rate fall to 0.13 per cent, the lowest since January 2011.
The only year on year increase in insolvency rates came from larger firms; all those with between 51 to 500 employees.
Max Firth, Managing Director, Experian Business Information Services, UK&I said:
“Overall insolvency figures are down and the picture remains stable, which is encouraging. In addition, we’ve seen real pockets of improvement, such as in the West Midlands and South West, which have both seen a drop of over 30 per cent. Also encouraging are the lower rates of insolvencies among some of the small firms. However in contrast, larger firms experienced a slight increase in insolvencies, which may lead to smaller firms that were supplying to them, experiencing a knock on effect.
“This highlights the need for firms need to be prudent and consider their credit management practices in order to survive. Risk planning and monitoring their financial health and that of their customers and suppliers can make or break a business.”
