Insider Media Limited

The number of businesses failing in the East Midlands rose by more than 12 per cent in July, according to data from Nottingham-based Experian.

Analysis from the data provider said that 0.10 per cent of the business population went bust in July.

The North West and Yorkshire had the highest rates of failure in the UK.

Experian's figures show that the East Midlands had a total of 110 insolvencies during the month - up 12.2 per cent on July 2010.

Across the country, Experian reported that 0.10 per cent of the business population failed during the month - up from 0.08 per cent in July 2010.

The research also revealed that the largest companies in the UK were faring better than others with those employing 501 or more employees experiencing a 12.5 per cent year on year drop in insolvencies.

Max Firth, managing director of Experian Business Information Services, said: "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, this doesn't lessen the need for all organisations, regardless of their size or sector, to be mindful of the risks their customers, suppliers and partners can expose them to.

"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."