The UK’s business community is at its strongest financially since July 2008, according to Experian’s insolvency index.

The index recorded an average financial strength score of 81.14 among active businesses during October, up from 79.8 in October 2008.

Small businesses (with one to two employees) in particular were the most resilient, representing only 0.06% of business failures during October. 

However, the business insolvency rate did increase from 0.09% in September to 0.10% in October.

Rolf Hickman, managing director of pH, an Experian company, says: “Throughout 2008, the average financial strength score had been seeing a downward trend, but 2009 has seen a reversal.  The financial solidity of UK businesses has been improving over the year. 

“This has impacted on the insolvency rate, which has remained fairly stable since July, with a slight increase in October.  If the financial strength of businesses continues to improve, we could see insolvencies maintain a low level and even start to fall.”