THE number of corporate insolvencies in Scotland has fallen by 22 per cent in the latest quarter amid the improvement in the economy, official figures have shown.

However, experts said the rise in interest rates which economists have pencilled in for next year could result in the failure rate increasing again.

The latest figures published by the Accountant in Bankruptcy will boost hopes that life is getting easier for firms in Scotland as the recovery becomes entrenched following a long downturn.

The agency recorded 209 insolvencies in the three months to September, down 59 on the 268 in the same period of 2013.

The total number of insolvencies in the latest quarter was some 16%, or 41, lower than the 250 recorded in the preceding three months.

The figures include compulsory and creditors' voluntary liquidations but exclude administrations.

Bryan Jackson, business restructuring partner at BDO accountants in Scotland, said the third quarter fall in insolvencies reflected the relatively benign economic conditions prevailing in Scotland.

He said: "Low interest rates, the falling energy costs, and the increase in demand have all lead to a period when many businesses can start to contemplate growth once more."

The latest numbers appear more encouraging than those for the second quarter, when the number of corporate insolvencies increased by 35.9 per cent on the same period of last year.

Mr Jackson noted activity is increasing in some sectors that were hit hard during the downturn that followed the global financial crisis of 2008, including property and construction.

However, he also noted the fall in insolvency numbers may partly reflect the slowdown in activity in corporate Scotland in the downturn.

"There's been no lending for six years. That lack of activity is now coming through," said Mr Jackson, whose comments highlight the role played by banks in many liquidations.

He added: "A lot of insolvencies tend to be in the first few years of a business."

Matt Henderson, head of restructuring at Johnston Carmichael accountants, said banks had become reluctant to put firms into insolvency, preferring to adopt a consensual approach to addressing problems. Ahead of the publication next month of details of the number of firms that have gone into administration recently, Mr Henderson said the market was very quiet in Scotland.

But he said any increase in interest rates from the current historic lows could result in more insolvencies, by making it harder for firms to service borrowings and encouraging banks to act to recover debts.

Yvonne Brady, head of corporate restructuring at law firm HBJ Gateley, said the slow down in corporate insolvencies was a sign of an improving economy.

Noting the Bank of England is expected to raise the base rate from 0.5 per cent next year, she said: "When that happens I would not be surprised to see an upturn in corporate failures as vulnerable companies succumb."