Report looks at local business failure rates

The business failure rate for Geelong is expected to hit 5.4 per cent over the next 12 months.

The Business Risk Index by CreditorWatch reveals the current failure rate for the region is 4.7 per cent.

However the region has among the lower rates of failure than other areas including Melbourne’s west.. where it is expected to increase by more than one per cent over the next year.

CreditorWatch says regional areas are expected to record lower rates of failure than areas of Melbourne, due to a number of factors.

That includes regional areas leaning towards lower risk industries such as agriculture and healthcare, lower commercial rent levels and older populations with lower debt levels.