Business insolvencies start to creep up
Published: 09 December, 2011
NOTTINGHAM: The latest Insolvency Index from Experian has revealed that 0.10% of the business population became insolvent during October, compared to 0.08% in October 2010.
The South West of England was the best performing region at 0.06% while the West Midlands overtook the North East as the worst performing region with an insolvency rate of 0.13%.
The average financial strength score for UK businesses was 78.44 in October. However, large companies saw their financial strength score improve from 84.84 in 2010 to 85.81 in October 2011.
Max Firth, UK and Ireland managing director for business information services at Experian, commented: "While 0.10% represents a very small percentage of the UK's business population failing in October, we are seeing an increase in insolvencies across most sizes of business.
"As a result of this, more businesses are now acutely aware of the importance of having a good understanding about the companies they deal with. Using commercial information to gain insight into a customer, partner or supplier's financial health is a highly effective way to helping businesses make even smarter decisions in today's environment."