Business insolvency fell in July, new figures reveal

Posted 19/08/2010

New research has revealed that business insolvency fell in July, particularly among small to medium-sized enterprises (SMEs).

Figures published by Experian showed that 1,542 British firms failed last month, down by 30 per cent year-on-year.

The financial score of companies was also found to have improved on July 2009, with a value of 80.93 as opposed to 80.61.

Max Firth, spokesperson for Experian, explained that while SMEs in particular are suffering less as a result of insolvency, there is still uncertainty.

“Given this ever-changing picture, it is vital organisations ensure they understand and proactively manage the risk that those they do business with exposes them to,” he added.

In March this year, a survey by trade organisation R3 found that 28 per cent of SME owners were worried about insolvency should Britain slip into a double-dip recession.

R3 president Peter Sargent said anyone who is worried their firm may be on the route to insolvency should seek help from an expert sooner rather than later.