Corporate insolvencies saw a slight increase in the national figure this year, with the North East having the highest rate overall in the UK, according to a study by Experian, the business data group. Across the UK, the insolvency rate went up from 0.08 percent to 0.09 percent in September this year.
The number of businesses that became insolvent is compared with the total number of businesses in the UK to calculate the rate of insolvency. Businesses with more than 500 employees saw insolvencies drop by 25 percent, while Small and Medium Enterprises had the worst rate. Micro companies, who employ only a couple of employees, had the largest rise in insolvencies during September, with a 25 percent increase bringing the total number to 258. This figure is comparable to 0.06 percent of the total business population in the UK.
Although the number of companies becoming insolvent in the North East fell to 0.13 percent, down from 0.15 percent, the region still had the highest rate in the UK. The area with the lowest rate of insolvencies was Scotland at 0.07 percent, while the biggest increase in rates was the West Midlands which rose from 0.08 percent last September to 0.11 this year.
The managing director of Experian Business Information Services, Max Firth said:
“While larger businesses bucked the trend in September, our analysis underlines how important it is that companies understand the financial strength of their customers, suppliers and business partners. This kind of accessible and valuable insight can make all the difference to a business of any size.”
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