The number of IT companies falling into insolvency has risenby just shy of 5% adding to the growing evidence that companies are finding itharder to stay in business.
According to figures from Experian the number of technology companies enteringinsolvency for the third quarter rose 4.9% to 149 bringing the total for theyear to 465.
Tony Pullen, managing director of Experian’s businessinformation division, advised companies to keep a close eye on customers andsuppliers and make sure they had the means to pay.
“Given the difficult tradingconditions and rise in insolvencies, it is important that businesses take theright steps to safeguard the supply of their goods and services. The best approach is to continually monitorcustomers’ and suppliers’ commercial integrity against financial performance,credit risk information and payment behaviours,” he said.
Last month, Graydon warned that thenumber of insolvencies could rise after the credit reference agency reported a20% increase in companies going to the wall in the first three quarters of theyear.
The figures come at a time when thegovernment has cut interest rates to the lowest level for 50 years and theprospect of tax cuts is being floated.