The number of IT companies falling into insolvency has risen by just shy of 5% adding to the growing evidence that companies are finding it harder to stay in business.
According to figures from Experian the number of technology companies entering insolvency for the third quarter rose 4.9% to 149 bringing the total for the year to 465.
Tony Pullen, managing director of Experian’s business information division, advised companies to keep a close eye on customers and suppliers and make sure they had the means to pay.
“Given the difficult trading conditions and rise in insolvencies, it is important that businesses take the right steps to safeguard the supply of their goods and services. The best approach is to continually monitor customers’ and suppliers’ commercial integrity against financial performance, credit risk information and payment behaviours,” he said.
Last month, Graydon warned that the number of insolvencies could rise after the credit reference agency reported a 20% increase in companies going to the wall in the first three quarters of the year.
The figures come at a time when the government has cut interest rates to the lowest level for 50 years and the prospect of tax cuts is being floated.