Business Insolvency Levels Improve

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Business insolvencies have fallen slightly in June, according to Experian’s latest Business Insolvency Trends report.

0.08% of the business population became insolvent in June, a small improvement on 0.09% in the previous month.

SMEs with between 1-100 employees were the only group to see improvements in their insolvency rates.

Those businesses with 101 or more employees overall experienced an increase in the rate of insolvencies. Firms with 101-500 employees experienced a 0.16% failure rate, compared to 0.08% in June last year.

Max Firth, Managing Director, Experian Business Information Services, UK&I said:

“Although the overall figures for June show a fairly stable environment at the moment led by smaller firms, the higher insolvency rate at the top end of the business world will have an impact on the supply chain.

“Many smaller suppliers, unless they have a good credit management process in place, will find themselves short of a major customer and left with unpaid bills.  They will need to move quickly to fill the gap in their customer base.

“When taking on new business, it is vital they start to monitor the health of both customers and suppliers. They can be forewarned of any issues and be in a better position to deal with the impact of another business’s failure.”

Across the UK’s five biggest industries, the leisure and construction sectors saw the biggest improvements. Particularly for firms in the leisure sector, this is the third consecutive month of falling insolvencies. Business insolvencies have fallen slightly in June, according to Experian’s latest Business Insolvency Trends report.

0.08% of the business population became insolvent in June, a small improvement on 0.09% in the previous month.

SMEs with between 1-100 employees were the only group to see improvements in their insolvency rates.

Those businesses with 101 or more employees overall experienced an increase in the rate of insolvencies. Firms with 101-500 employees experienced a 0.16% failure rate, compared to 0.08% in June last year.

Max Firth, Managing Director, Experian Business Information Services, UK&I said:

“Although the overall figures for June show a fairly stable environment at the moment led by smaller firms, the higher insolvency rate at the top end of the business world will have an impact on the supply chain.”

“Many smaller suppliers, unless they have a good credit management process in place, will find themselves short of a major customer and left with unpaid bills.  They will need to move quickly to fill the gap in their customer base.”

“When taking on new business, it is vital they start to monitor the health of both customers and suppliers. They can be forewarned of any issues and be in a better position to deal with the impact of another business’s failure.”

Across the UK’s five biggest industries, the leisure and construction sectors saw the biggest improvements. Particularly for firms in the leisure sector, this is the third consecutive month of falling insolvencies.

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