CreditorWatch’s latest Business Risk Index shows that business-to-business payment defaults dipped 11.8% in May and are now 18.3% below their December 2024 peak. Insolvencies also eased, falling 0.9% from April to May, and have fallen by 12% compared to their November 2024 high.
After a difficult 18 months, this shift suggests that many businesses are starting to regain control over cash flow and operational risk. It’s a promising signal that cost-of-living pressures and high interest rates, while still challenging, are no longer pushing as many firms over the edge.
Sectors like construction and retail remain fragile, but the national trend is encouraging – particularly for SMEs that have weathered the worst.
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