IT supplier insolvencies fall

30 May 2014

The number of information and communication companies to go bust has fallen since the same time last year. According to the Exaro Insolvency Index, there are also less businesses entering insolvency since 2013. There were only three IT companies in administration this April compared to eleven last April. 

It’s been suggested the reason behind the decline in businesses entering administration is the ‘willing’ attitude from banks and lenders to support distressed businesses in the recovering economy. 

Winding up orders and liquidations of communication companies, however, are on the increase with Index figures showing 135 liquidators were appointed last month, compared to 119 in April 2013. 

Although the number of insolvent companies is falling, the threat of interest rates rising is something many small businesses may be unable to handle if it happens. Rates are currently very low so if things change, predicted for next year, many companies could end up on the brink of insolvency.