Top Service News
May 2025: Insolvencies on the Rise – What It Means for Your Business
Published on
Top Service Ltd – Credit Intelligence for Construction
The latest insolvency figures are in—and once again, the construction industry is under pressure.
In May 2025, 2,238 companies across England and Wales became insolvent:
- 8% increase from April
- 15% higher than May 2024
This includes:
- 1,734 creditors’ voluntary liquidations (CVLs)
- 354 compulsory liquidations
- 136 administrations
- 14 company voluntary arrangements (CVAs)
CVLs now account for 77% of all insolvencies, a clear sign that more businesses are choosing to close voluntarily, often due to unsustainable debts.
Construction: Still the Most Impacted Sector
In the 12 months to April 2025, 4,032 construction businesses became insolvent—17% of all cases where the sector was identified.
That’s more than:
- Wholesale and retail (3,615)
- Accommodation and food services (3,369)
- Manufacturing (1,970)
The construction sector continues to face the sharpest end of credit risk, despite demand, operating costs, tight margins, and cashflow pressures are forcing many firms to exit the market.
What’s Driving the Numbers?
While insolvency rates are still below the 2008–09 peak, the upward trend is clear:
- Insolvency rates are now 53.0 per 10,000 companies (up from 50.4 in April)
- May saw a 7% drop in compulsory liquidations (after April’s 10-year high)
- But administrations increased by 28%, indicating more companies are trying to restructure before shutting down
Our Take – What This Means for You
At Top Service, we go beyond the numbers. As the UK’s only credit reference agency dedicated solely to the construction industry, we use real-time, construction-specific trading data—shared directly by our members—to spot early warning signs of financial distress long before insolvency hits.
Often, our members report delayed or inconsistent payments from a company up to a year or more before it enters insolvency. This shared insight gives our network the edge: the ability to act early, tighten credit terms, or stop supplying altogether, potentially saving thousands in bad debt.
We’re seeing a shift in the industry: companies aren’t just paying late—they’re going under, often through CVLs, leaving suppliers exposed. This isn’t the time to just be careful—it’s the time to be proactive, and that starts with information you can trust.
If you’re supplying, contracting or subcontracting in this environment, credit risk is real—and growing.
What Should You Do Now?
- Review payment terms and tighten where needed
- Track changes in customer behaviour – missed payments, sudden CCJs, changes in directors
- Use live credit alerts to stay informed
- Act early on overdue debts – don’t wait for insolvency to strike
- Speak to experts who understand your industry
Insolvency numbers aren’t falling. Construction is still the most vulnerable industry.
At Top Service Ltd, we help construction businesses:
- Minimise debt exposure
- Make confident credit decisions
- Get paid faster
- Stay one step ahead of insolvency risk
Let’s Talk – With the right tools and real-time industry-specific data, your business can trade safely, without the surprises.
Stay ahead. Minimise risk. Maximise cash.
We’re here to help – whether it’s insight, tools, or recovery.
Call us on 01527 503990 or visit top-service.co.uk