The number of business insolvencies declined 15% during April compared to the same month last year, according to data released by Experian.

Companies with 11-25 employees saw the greatest improvement year-on-year in the insolvency rate and the smallest businesses (with 1 to 2 employees) saw the most improvement in their financial strength scores.

"Our analysis shows that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose their company to," said Rolf Hickmann, managing director of pH, an Experian company.

"It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging."