The number of Scottish businesses going to the wall continues to fall, according to new statistics.
In a sign of further improving trading conditions, professional services firm KPMG said its quarterly study of business failures showed the number had fallen “significantly” for the third period in a row.
Meanwhile, full-year figures for the 12 months to September revealed a 33% reduction on last year, with the total of 837 representing the lowest level of liquidations and administrations since the banking crisis hit late in 2008.
KPMG head of restructuring Blair Nimmo said the figures showed an improving economic environment was helping more firms keep their heads above water.
But he warned that while banks and creditors were now less inclined to force defaulting companies under, many firms are still struggling to attract the finance they need to grow.
“As we take the first steps toward recovery, our figures suggest an increasingly more benign environment, with trade creditors, banks and the HMRC now more likely to explore alternative solutions rather than taking insolvency action,” Mr Nimmo said.
“It may be too soon to say whether this will translate into investment for growth as, although the number of new insolvency cases to come across our desks continues to fall, our debt advisory practice remains busy with companies, both large and small, who are still struggling to access finance.”
KPMG’s research revealed 230 insolvencies during the three months to the end of September a 27% decrease on the total of 316 reported during the same period the previous year. The result followed falls of 46% and 45% during Q1 and Q2 respectively.
While the number of administrations held steady during the quarter, a fall in the number of liquidations which typically affect smaller companies accounted for the overall reduction.