UK insolvencies drop but risks for medium sized firms

May 18-The latest Insolvency Index from Experian has revealed a year-on-year fall in UK business insolvencies during April. The total number fell by 15.1%, from 2,274 in April 2009 to 1, 818 in April 2010.
Rolf Hickmann, managing director of pH, an Experian company, said: Our analysis shows that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose their company to.
It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging. For the largest business, there is the flexibility that comes with economies of scale, so insolvency rates among these extremes of business type are also low.
Mid-sized businesses do not typically have the luxury of either of these benefits and can face the most pressure, he added.