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The good news is that insolvencies in businesses decline in 2012

The latest Business Insolvency Index from Experian the world’s largest information and services provider, has revealed that in 2012, 0.86 percent fewer UK firms failed than previous year and 1.04 percent of businesses failing, as compared with 1.10 percent in 2011. The year came to an end with the month of December seeing 0.08 percent of businesses fail. This is in contrast to 0.11 percent during the same month of 2011, and is the lowest percentage that has been recorded since the month of December 2007.

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The analysis of the insolvency statistics throughout 2012 shows an increasing stable situation for businesses The rate of insolvency remained mostly unchanged (between 0.25 between 0.25 and 0.27 percent) for each quarter of the year. This is an improvement from the year 2011, where the range was 0.26 and 0.29 percent.

The most significant increase in the number of insolvencies was observed by companies employing between 51 and 100 people Insolvency rates dropped from 2.22 percent during 2011 and 1.83 percent in 2012. It was closely followed by companies with 26-50 employees who saw their insolvency rate drop to 2.21 per cent from 2.59 percent in 2011 and companies with employees between 11-25 with an insolvency rate that fell from 2.60 percent during 2011 and dropped to 2.35 per cent in 2012.

The only notable year-on-year increase in the number of insolvencies was seen in the biggest firms, all with over 500 employees. They witnessed an increase of 1.46 percent in 2011, to 1.61 percent in 2012. Additionally, micro-firms that have a couple of employees also saw an increase of the rate of insolvencies, ranging between 0.71 percent to 0.73 percent.

Particularly, those who had the most troubled times during the downturn saw the greatest improvement.

which was 1.25 percent, but there’s still a long need to be done before we can reach the pre-recession level of 2007, which was at 0.97 percent.

“This is reflected in the minor increase in the number of bankruptcy among larger businesses that underscores the need for businesses to remain alert to any changes that could affect their business. Continuous monitoring of all customers and suppliers regardless of their size is crucial, as the effects of corporate insolvencies could be felt throughout through the entire supply chain.”



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