The total number of insolvencies in the third quarter of 2013 was 230, a fall of 27% on the same period last year, following falls of 45% and 46% in the two previous quarters, compared with the same periods in 2012.
Company failures in the year to September 30 fell by a third to 837 - a 33% reduction from a year earlier, and the first time an annualised drop has been recorded since 2008.
Liquidations fell by 30% to 704 in the third quarter against 2012, while administrations and receiverships remained static at 30. Blair Nimmo, head of restructuring for KPMG in Scotland, suggested a number of factors were behind the drop in insolvencies.
He said:"As we take the first steps toward recovery, our figures suggest an increasingly more benign environment, with trade creditors, banks and the HMRC now more likely to explore alternative solutions rather than taking insolvency action."
However Mr Nimmo was more cautious on whether the trend would help to fuel economic growth and added: "It may be too soon to say whether this will translate into investment for growth as, although the number of new insolvency cases to come across our desks continues to fall, our debt advisory practice remains busy with companies - both large and small - who are still struggling to access finance."