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2012 sees drop in insolvencies

20 March 2012

			2012 sees drop in insolvencies

The number of companies failing have fallen at the start of this year, according to new figures.

Corporate insolvencies are down by 3.7% in the first quarter of 2012 compared with Q1 2011 and the first three months of 2012 were 19.9% lower than the same time period in 2010.

Based on data published today (19 March) by the commercial credit referencing agency Graydon UK the number of corporate insolvencies during the first quarter of 2012 was also 22.8% down on the same period in 2009.

Graydon UK external spokesman Gordon Skaljak said: “The good news is we are seeing a decrease in the number of business failures.

“However, although the threat of a double dip recession may appear to be receding, it is still important for businesses to identify both opportunities and risks if they want to increase their businesses efficiency and bottom line growth.

“It’s also important businesses build up a strong credit rating in order to be able to secure alternative sources of funding quickly should their cash flow take a hit, this takes time and businesses must act now to do this.”

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