The rate of insolvencies among UK businesses fell by 30% last month year-on-year, according to Experian.
A total of 1,542 British firms failed in July, an insolvency rate of 0.08% of the business population, This compared to 2,312 in July 2009 with a 0.12% rate.
Meanwhile, Experian's Insolvency Index also shows the financial strength score of UK businesses in July was 80.93. This was up on the 80.61 recorded in July 2009 but down on the 12 month high of 81.37, seen in December 2009.
Max Firth, managing principal of pH, an Experian company, says: "July's data indicates the SME population is faring much better in terms of insolvencies than it did this time last year, however, increasing failures at the top end of the market demonstrates clearly there is a still a great deal of uncertainty.
"Given this ever changing picture, it is vital organisations ensure they understand and proactively manage the risk that those they do business with exposes them to."
Other findings suggest every region of the UK saw year-on-year falls in insolvency rates with Scotland recording the lowest rate at 0.05% and Yorkshire experiencing the highest, of 0.13%.
The only segment of businesses that saw a rise in insolvencies was those with more than 500 workers. Those employing between 101 and 500 people showed the most improvement.
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently