Scotland boasts lowest number of insolvencies

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Fewer companies in Scotland are going bust in comparison with other parts of the UK, research out today would suggest.

The latest business insolvency index from credit rating specialist Experian also points to an increased resilience among mid-sized firms across Britain.

Scotland had the lowest insolvency rate of the 11 geographic areas under examination – 0.03 per cent of the business population in March against a UK-wide figure of 0.08 per cent.

Today’s report echoes recent official figures from the Accountant in Bankruptcy, which showed sharp falls in the month-on-month and year-on-year rates of Scottish business failures.

Max Firth, managing director, Experian Business Information Services, said: “The fact that mid-tier businesses are seeing lower rates of insolvency is encouraging. These companies have struggled more than most during the recession as they are not necessarily small enough to be flexible, but are also not big enough to benefit from economies of scale.

“The overall rate of insolvencies for the first three months of 2013 is a significant improvement on the equivalent months in 2012.

“Today’s figures … suggest that companies are becoming much better at anticipating risk, getting their credit policies in shape and developing better relationships with customers.”

Building and construction saw a large year-on-year fall in the insolvency rate.