Business insolvency rate falls for North East

New figures from Experian, a global information services company, have revealed that the rate of business insolvencies steadied in March 2012 with 0.11% of the UK’s business population failing, the same level as recorded in March 2011.

The North East of England, a region that has traditionally been one of the hardest hit for insolvencies, recorded a significant improvement in failure rates, declining from 0.22% of its business population in March 2011 to 0.14% in March 2012. This was the biggest year-on-year improvement of any region.

The health of the business community in the North East – measured using an average of Experian financial strength scores attributed to local businesses – rose from 81.71 in March 2011 to 84.50 in March 2012.  Only businesses in the East Midlands recorded a bigger average improvement in financial strength, from 81.82 in March 2011 to 84.89. 

Max Firth, UK MD for Experian’s business information services division, said: “March was a positive month for businesses in the North East and an improving financial strength 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.

“However, the North East does still have the second highest insolvency rate in the UK, so it is vital that businesses fully understand the financial risks associated with firms they deal with. This message is pertinent across the UK, regardless of region or sector. Where there are risks there are also opportunities.”

Did you find this article useful?

Posted by Billy Taylor (100)

Written on 4th May 2012

Find other articles written by this user



Add Comment

Please Register

Please register to use the full range of our site's features: renew your subscription, post a blog, comment against news articles, view Dealer Support magazine online

Latest Added

Spicers reveals product range extension

'Limitless Range' extension underway

Written By Austin Clark 8th October 2015

NEMO appoints digital marketing executive

New recruit joins dealer group from Travis Perkins Group

Written By Austin Clark 8th October 2015

Dealer scoops funding for local charities

Total of £14,000 of 5 Star Charitable Trust funding presented to worthy causes

Written By Austin Clark 7th October 2015

Most Viewed

Rugby World Cup tips for employers

What can you do to encourage employees to enjoy the celebrations without disrupting…

Written By Austin Clark 18th September 2015

How colour can be used to promote…

The experts at reveal how the psychology of colour can be used to help…

Written By Austin Clark 7th September 2015

Avery reveals shopping with small…

With trust in big business at an all-time low, research signals a new era in consumer…

Written By Austin Clark 1st September 2015