Company insolvency rates have traced a steady downward trend throughout 2013, according to Experian, but that does not mean everybody is out of the woods.
Big businesses in particular may be at risk, as in July the insolvency rate rose slightly among those with over 100 employees, and fairly substantially in those with over 500 workers.
At 0.15% – compared with just 0.08% a year earlier – the largest firms are now actually among those most at risk, compared with a national average company insolvency rate of just 0.08%.
Max Firth, managing director of Experian Business Information Services UK&I, says: “A whole quarter of dropping insolvency rates is really positive news, but the fact that larger companies have seen quite a rise shows that we are not out of the woods yet – especially as this can trickle down the supply chain to smaller companies.”
As such, businesses of all sizes need to be prepared for individual risks – and small firms are among those told to remain vigilant, to check the financial condition of their suppliers and customers, and to act promptly when the alarm bells sound.