Experian’s latest report about the financial state of UK businesses has revealed a fall in the number of insolvencies occurring at the start of 2012, dropping to the lowest level since January 2011.
The rate of company collapse decreased to 0.07%, down from 0.11% in December 2011.
Encouragingly smaller firms showed the most marked improvement in insolvency rate, as the Government has indicated it is particularly hoping such sized businesses will prosper and help fuel economic growth.
There was further positive news in Experian’s latest findings as the financial health of businesses also improved, increasing from a rating of 83.73 in December to 84.01 in January.
UK Managing Director of Experian’s Business Information Services, Max Firth, said, “January generally tends to be a good month, with many businesses benefiting from the Christmas trade. When coupled with steady improvements in the underlying financial strength of businesses, it means that we can entertain some cautious optimism for the months ahead.