United kingdom Daily news: Hope that worst may be over for small firms as the number of business insolvencies steadies

Rabu, 25 April 2012

Hope that worst may be over for small firms as the number of business insolvencies steadies

Hope that worst may be over for small firms as the number of business insolvencies steadies

By Helen Loveless

PUBLISHED: 09:39 EST, 25 April 2012 | UPDATED: 09:42 EST, 25 April 2012

The rate of business insolvencies has steadied new figures show, leading to hopes that the wave of firms going under may be declining.

The latest figures from data information provider Experian show the overall rate of businesses failing in March was 0.11 per cent, the same level as recorded in March 2011.

For some regions the picture is even brighter. The rate of business insolvencies in the North East - traditionally one of the hardest hit for insolvencies - fell from 0.22 per cent of the business population in March 2011 to 0.14 per cent in March of this year.

Signs of life: Business failures are easing at last.

The health of the business community in the North East, according to Experianâ€™s index, also rose from 81.71 in March 2011 to 84.50 in March of this year.

In the east Midlands the rate of insolvencies fell from 0.14 per cent in March 2011 to 0.12 per cent in March 2012.

Yorkshire, Wales and the West Midlands also saw a small decline in the rate of business insolvencies.

However, in the North West the rate of businesses going under rose from 0.11 per cent in March 2011 to 0.14 per cent, while the South East also saw the rate of business insolvencies increase from 0.08 per cent to 0.10 per cent over the same period.

Max Firth, managing director for Experianâ€™s business information services division says: â€˜March was a positive month for businesses in the North East and an improving financial score is encouraging. It highlights that even in regions which have experienced some of the highest rates of insolvencies over the past year there will be potential pockets of opportunities for organisations to extend credit and increase business.â€™

Sectors to have shown signs of improvement include the building and construction sector, where the rate of insolvencies fell from 0.20 per cent in March 2011 to 0.19 per cent in March 2012.