New research from global information services company Experian has revealed a significant year-on-year fall in business insolvencies during July.
A total of 1,542 UK businesses failed last month – 33% fewer than the 2,312 insolvencies recorded in July 2009.
This equates to an insolvency rate of 0.08% of the business population in July 2010, compared to 0.12% the year before.
All business segments bar the largest companies (with 501-plus employees) saw insolvency rates fall year-on-year, the biggest improvements being amongst 101 to 500 employee companies. This segment saw 30 insolvencies in July 2010, 56% fewer than in July 2009.
A spokesperson for Experian said: “July’s data indicates that the SME population is faring much better in terms of insolvencies than it did this time last year. However, increasing failures at the top end of the market demonstrate clearly that there is a still a great deal of uncertainty.
“Given this ever-changing picture, it’s vital that organisations ensure they understand and proactively manage the risk that those they do business with exposes them to.”