UK business insolvencies have fallen 15% year-on-year during February, according to the latest Insolvency Index from Experian.
The total number of insolvencies fell by 15.1% during February compared to the same month last year, from 2,160 in 2009 to 1,834 in 2010.
This brought the rate of insolvencies down from 0.11% to 0.10%.
Although the North East saw the highest rate of insolvencies, it was also one of two regions to see the highest improvement, from 0.20% in Feb 2009 to 0.15% in Feb 2010. The other region to see the biggest year-on-year improvement was Wales, from 0.14% to 0.08%.
The largest companies, with 501 or more employees, saw the greatest insolvency rate improvement year-on-year from 0.20% to 0.10%.
The non-food retailing sector saw the rate of insolvencies fall from 0.20% in February 2009 to 0.14% in February 2010.
The overall financial strength score of UK businesses continued to improve, fro 79.76 in February 2009 to 81.18 in February this year. The smallest businesses (with one to two employees) saw the most improvement in their financial strength scores, from 80.50 in February 2009 to 82.48 in February 2010.
Rolf Hickmann, managing director of Experian company pH said: "Small businesses have far more flexibility than any other business type. It is easier for small businesses, with just one or two employees, to easily make adjustments to their operations and pull in the reins when times are difficult. For larger businesses, there is the security that comes with size and a well-established structure, so insolvency rates among there business types are also low. However, mid-sized businesses, which are seeing the highest rates of insolvencies, are too large to be flexible and too small to rely on a strong and established structure."