THE ECONOMIC recovery and ultra-low interest rates are keeping insolvencies low, as Experian data today shows the fifth consecutive monthly fall.
A total of 1,609 firms became insolvent in September, a rate of 0.07 per cent – down from 0.08 per cent or 1,679 in the same month last year.
Large firms, with over 501 staff, saw per cent to 0.1 per cent, while the rate plunged from 0.16 per cent to 0.09 per cent for those with 100 to 500 employees.
By sector the insolvency rate for construction and building fell from 0.14 per cent to 0.11 per cent, the eleventh consecutive year-on-year monthly drop.
Banking and financial services saw the rate fall from 0.15 per cent to 0.1 per cent.
“The drop in larger company insolvencies is welcome news, and it is encouraging to see that some of the key drivers of the economy such as construction and financial services are performing well,” said Experian’s Max Firth. “By having a good handle on the financial position of both suppliers and customers, firms can keep on top of risks, as well as investing in growth areas where possible.”