North East insolvencies fall again

The North East has seen a more dramatic drop in the number of businesses hit by insolvency than anywhere else in the UK

The Tyne Bridge
The Tyne Bridge

The North East has seen a more dramatic drop in the number of businesses hit by insolvency than anywhere else in the UK.

According to the latest Business Insolvency Index from information services company Experian, the insolvency rate plummeted from 0.13% in June last year to 0.08% in June 2013.

The UK, on average, showed a drop from 0.08% to 0.07%.

This is the second consecutive month to show a year-on-year fall,

Max Firth, managing director at Experian Business Information Services, UK and Ireland, said: “This is good news overall – we’ve already seen several months of low but level insolvency rates and the fact they have come down further indicates that firms are operating with more confidence than in recent years.

“However, as businesses start to think about growth and companies start to restock and rehire, the insolvency rate could well go up as cash flow becomes an issue.

“This makes it all the more important for SMEs to understand who they are supplying, how quickly they pay, and think about what credit options are open to them in advance.”

Building, construction, property, the motor trade and retail saw notably pronounced improvements.

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