Automotive retail insolvency fell in March from 58 to 42 businesses in comparison to the same month last year, according to the latest statistics from the Experian Business Insolvency Index.
Insolvencies across all medium sized businesses reduced in March from 2,112 to 1,736.
The insolvency rate among businesses with 25-50 employees fell by 0.07% from 0.24% in March 2012 to 0.17% in March 2013 – almost back to the levels seen in March 2007 of 0.16% and nearly half their peak of 0.35% in March 2009.
Insolvencies also fell by 0.07% among businesses with 11-25 employees, down from 0.25% in March 2012 to 0.18% in March 2013.
The analysis shows that across the UK, the insolvency rate remained a 0.08% of the business population for the second consecutive month this year.
Max Firth, Experian business information services, UK&I managing director, said: “The fact that mid-tier businesses are seeing lower rates of insolvency is encouraging.
“These companies have struggled more than most during the recession as they are not necessarily small enough to be flexible, but are also not big enough to benefit from economies of scale.
“The overall rate of insolvencies for the first three months of 2013 is a significant improvement on the equivalent months in 2012 – from 0.27% to 0.22%.
“Today’s figures point to a more benign trading environment and suggest that companies are becoming much better at anticipating risk, getting their credit policies in shape and developing better relationships with customers.”