Large companies in the UK are bucking the national trend with insolvencies dropping in July 2011, according to the Insolvency Index by Experian.
It was reported that 13 per cent fewer large firms failed during July 2011 when compared to July 2010, potentially encouraging international investors to make an overseas money transfer into the UK economy.
While the overall financial strength score of businesses in the UK dropped from 80.93 in 2010 to 79.84 in 2011, large British companies saw their rating climb nearly two points to 86.13.
Large businesses are classed as those employing 501 people or more, while smaller businesses, at 51 to 100 employees, experienced the biggest annual increase in insolvencies.
Max Firth, managing director of Experian Business Information Services, commented: "When a large company becomes insolvent it can create a domino effect in the surrounding economy, so the improvement in insolvency rates with firms with more than 500 employees is good news."
However, he said that the success of larger businesses doesn't mean they can afford to ignore the risk that customers, suppliers and partners can expose them to.
Mr Firth continued: "It is vital that businesses fully understand the financial strength of those they do business with by checking their commercial credit score and late payment trends."
The index also revealed that Scotland maintained the lowest insolvency rate at 0.07 per cent, while Yorkshire maintained its July 2010 rate of 0.13 per cent.
The north west of England saw 0.14 per cent of its firms fail - more than any other region in the country.