The rate of business insolvencies in the UK is slowing down,
research by Experian shows.
The average financial strength score – which predicts the
likelihood of a business failing in the next 12 months, with 100
being the least likely and 1 being the most likely – for businesses
in Great Britain rose from 79.46 in January 2009 to 81.37 in
December 2009.
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According to Experian, this has been helped by an overall
improvement in the time it takes businesses to pay their
suppliers.
“In 2009, businesses in Great Britain managed to climb back to a
better place financially,” said Rolf Hickmann, managing director of
pH, the Experian company that conducted the research.
The research showed that in 2009, the businesses most successful
at avoiding insolvency were the very smallest and the very largest
ones, with the highest insolvency rates among mid-range
businesses.
“Many more businesses are taking steps to protect themselves
from the risks of not getting paid, the impact on them if a key
supplier or customer goes but, and indeed the risk of insolvency
within their own businesses.
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By GlobalData“With this in mind, businesses need to not only proceed with
caution when it comes to both new and existing business clients,
but also ensure that their own house is in order, so that they
themselves are appealing prospects for business.”
Jason T Hesse
