The risk of marketing to SMEs has significantly reduced as UK businesses saw the lowest rate of insolvencies since June 2007 according to the latest report by information services company Experian.

Firms with one-two employees had the lowest insolvency rates and larger businesses also experienced continued success as those with over 501 employees had the best financial strength score.

Experian show January saw business failures drop to their lowest point in three years with only seven in every 10,000 businesses going under (0.07 per cent). The report indicates a safer business environment as there was an increase of eight per cent in the combined financial strength score for UK companies.

Rolf Hickmann, MD of PH feels optimistic about the future of the UK business economy but insists "it is too early to predict whether we are fully out of the woods." He continues, "It's encouraging to discover that not since the current financial crunch started have so few firms become insolvent in a single month."

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