Bigger UK companies performed well in May 2011, experiencing the largest fall in insolvencies compared to any other business size, according to Experian, which published its business insolvency index on Friday.
Companies with more than 501 employees saw a fall in insolvencies from 0.16% in May 2010 to 0.10% in May 2011 and those companies employing 101-500 employees saw the insolvency rate decrease from 0.14% in 2010 to 0.10% in 2011
Overall, There has been a small increase in the overall failure rate from 0.09% to 0.10% in May.
The regional picture is mixed with Yorkshire having the highest rate of insolvencies 0.13% an increase from 0.11% last year and the South West has performed best with only 0.06% of firms failing.
The South West experienced a fall in business insolvencies with just 0.06% of firms failing in May, compared to 0.07% the year before. The North East, Yorkshire, East Anglia and South East and East Midlands all saw small increases in the insolvency rate.
We wouldn't want to draw too many conclusions from one months figures but there is no doubt that many larger businesses are still very indebted and some of the banks are not that keen on calling in the loans as this would upset their balance sheets.... Larger businesses are also finding ever more creative ways to fund their capital requirements. There may also be more scope for cost saving measures in bigger businesses.
All businesses can save more by cutting costs. Have a look at our cost cutting pages.
We will shortly be publishing our statistics for businesses that have gone into administration in the first 6 months of the year. Watch this space!