Business Failure Rate

February 28, 2012 by staff 

Business Failure Rate, Global information services company Experian has reported that the rate of insolvencies fell from 0.11% in December 2011 to 0.07% this January – the same rate as in January 2011.

According to Experian’s latest Business Insolvency Index, the fall in the UK’s insolvency rate was led by businesses with 101-500 employees. Failure rates among these mid-sized businesses fell from 0.21% in December to 0.10% in January.

The index also highlighted an improvement in the financial health among businesses – from 83.73 in December to 84.01 in January.

While most business segments experienced comparable insolvency rates to those seen 12 months ago, the insolvency rate of firms with more than 501 employees reached 0.20% in January, up from 0.07% the year before.

Regionally, firms in Yorkshire led the way with the biggest improvements – from an insolvency rate of 0.15% in December to 0.09% in January. This was followed by firms in London and the South-East, improving from 0.10% and 0.11% to 0.05%.

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