Recent figures have shown that the number of businesses going to the wall in Scotland has seen a dramatic fall in the first quarter of the year.
According to the Accountant in Bankruptcy (AiB), the number of firms going bust in the first three months of the year fell by over a fifth.
While most small businesses in the UK went into shock when the recession hit, many have taken the opportunity to restructure, with a large number using invoice financing options, such as factoring, to improve cash flow.
By effectively reducing the reliance on credit streams, fewer firms are struggling with their bills. There was further good news that such strategies were having a positive effect, too.
Business rescue company Begbies Traynor reported that there are fewer businesses in trouble. According to the firm’s latest Red Flag Alert statistics, there has been a big fall in the number of Scottish firms in critical business distress.
Since 2012, the recovery solutions firm said, levels of distress have fallen by more than 50 per cent. This compares to a drop of just over a third at a national average.
However, Begbies Traynor also said that the number experiencing critical distress had risen from the last quarter of 2012. The company said that this was most likely a result of the seasonal trend, which sees an annual peak following the Christmas season.
As well as this, the statistics released by AiB showed that personal insolvencies in the period were down to the lowest quarterly level since the 2008 introduction of the Low Income Low Asset bankruptcy route.