News detail

Business Insolvency rates at 3 year low!

Experian reported yesterday that:
Insolvency rates among UK businesses are at their lowest number in three years, a new report has revealed.Experian's new Insolvency Index for August reveals that the rate of businesses going under dropped to 0.07 during the month, its lowest point since June 2007.Furthermore, the average financial strength rating across all sectors - which is given as a score out of 100 - increased from 80.79 in August 2009 to 81.06 in August 2010.

Smaller firms did very well in particular, with their score reaching 82.22 this year compared to 81.32 in August 2009.
Max Firth, managing principal of pH, an Experian company, said the results of the index reveal how quickly fortunes in business can change.

"This month's picture is very different to the one we saw back in March this year when all regions, bar one, saw an increase in insolvencies and the rate was almost double at 0.11 per cent," he commented.

The news comes despite a recent Bank of England report showing that lending to businesses, and smaller firms in particular, is still falling.