Business Insolvencies lower in Scotland
Scottish businesses are less likely to enter insolvency than those in the rest of Britain, according to new analysis.
Data released by Creditsafe said firms in Scotland have a 7% higher average credit rating than those in England and Wales. It rated companies north of the border as having a “good” level of creditworthiness while those in the rest of Britain are ranked as “creditworthy”.
According to the company’s figures, Scottish businesses have an average credit rating of 55, compared to a rating of 52 for England and Wales. Creditsafe’s ratings are a predictor of potential business insolvency and indicate the risk associated with trading with an enterprise.
The figures showed the biggest gap was in the health and other community services sector, where Scotland scored 59 while England and Wales had a rating of 54.
David Knowles, business development director at Creditsafe, said: “There is a lot of debate at the moment as to whether an independent Scotland would be good for its businesses or not.
“This research shows that Scottish companies, on the whole, have a higher level of creditworthiness and have a lower chance of entering insolvency than their counterparts in England and Wales.
“However, this does not necessarily mean Scottish companies would be better off going it alone. There is a huge amount of inter-connectivity between companies all across the UK.”