We are midway through the first month of 2026, and from all of us at Top Service Ltd, we wish you a very happy New Year.

As we move into 2026, the UK construction sector continues to operate in a uniquely challenging environment. Economic data from late 2025 shows construction output remained subdued, driven by weaker demand across both residential and commercial markets. While there have been pockets of resilience, particularly within civil engineering, overall confidence across the industry remains cautious.

One of the clearest indicators of this pressure has been insolvency levels. Throughout 2025, construction continued to account for one of the highest proportions of corporate insolvencies in the UK, often representing around 16–17% of all business failures. Smaller and specialist subcontractors were particularly exposed, highlighting just how vulnerable businesses can be when operating on tight margins and under cash-flow pressure.

Although insolvency figures fluctuated during the year, the underlying trend was consistent: financial stress remains a significant risk across the supply chain.

At Top Service Ltd, we spent time reviewing the insolvencies in 2025 that had the greatest impact on the construction sector — and on businesses like yours. Two examples stand out.

Corbyn Construction Ltd entered administration on 15 May 2025, with over £120,000 in County Court Judgments at the point of appointment. Our team issued an early warning in November 2024, enabling members using our services to act decisively. As a result, almost £1 million in overdue invoices was successfully recovered before administration.

Similarly, Sheen Lane Developments Ltd went into administration on 26 March 2025, with £246,000 in outstanding CCJs. Following an early warning issued in October 2024, our team successfully collected £250,000 for members prior to the company’s collapse.

These examples clearly demonstrate the importance of reacting early to changes in credit information, accelerating escalation when risk indicators appear, and managing overdue invoices on a case-by-case, informed basis rather than relying on generic processes.

Our team also identified a significant rise in scams and fraud during 2025, with last year described internally as the most challenging they have experienced in this area. Fraud continues to have a serious impact not only on individual businesses, but on confidence across the wider construction industry.

We understand that as we head into 2026, anyone responsible for credit management within construction is facing pressure from every direction — including:

• Late payments and ongoing cash-flow strain
• Rising labour, material, and operational costs
• Increased overtrading risk as businesses chase volume

All of these factors reinforce the need for robust, proactive credit management — something we take very seriously at Top Service Ltd.

By working with us, you gain access to our market intelligence, specialist services, and experienced team, all focused on protecting your cash flow and reducing your exposure to risk. Now is the right time to ensure you fully understand where and how we can support your business.

Please contact us to explore how Top Service Ltd can help you strengthen your credit processes — and together, let’s make 2026 a more secure and successful year.

The latest insolvency figures are in, and while headline numbers dipped at the end of 2025, risk in the construction supply chain remains very real.

In December 2025, 1,671 companies across England and Wales became insolvent:

• 10% lower than November 2025
  
• 13% lower than December 2024
  

While this monthly fall is welcome, it mirrors normal volatility rather than a meaningful recovery. Insolvency levels remain elevated by historical standards, particularly for voluntary closures.

What the Numbers Show

December 2025 insolvencies included:

• Creditors’ Voluntary Liquidations (CVLs): 78% of all cases
  
• Compulsory liquidations: down 4% on November
  
• Administrations: down 21% month-on-month
  
• Company Voluntary Arrangements (CVAs): low and declining
  
• Receiverships: none recorded
  

CVLs continue to dominate, underlining a clear trend: more businesses are choosing to shut down voluntarily, often after prolonged cashflow pressure and mounting debt.

Construction: Still Under Pressure

Although December saw a short-term dip overall, the past four years have recorded the highest CVL volumes since records began in 1960.

For construction, this matters.

Voluntary liquidations are particularly damaging for suppliers and subcontractors:

• Less warning
  
• Limited recovery prospects
  
• Outstanding balances are often written off entirely
  

Even when demand exists, tight margins, rising costs, and delayed payments continue to push construction firms toward closure rather than recovery.

What’s Driving the Trend?

Despite the December slowdown:

• Compulsory liquidations in 2025 were at their highest level since 2012
  
• Administrations fell overall in 2025, suggesting fewer companies are able, or willing to restructure
  
• CVLs in 2025 were 10% lower than the 2023 record high, but still historically elevated
  

This points to a market where businesses are running out of road, not just experiencing temporary pressure.

Insolvencies by Industry: Construction Remains the Most Exposed

The number of insolvencies in the 12 months to November 2025 was:

• Construction
  • 3,950 insolvencies
  • 17% of all cases with industry recorded
  • The highest of any sector, reflecting sustained pressure from tight margins, rising costs, and ongoing cashflow disruption
    
• Wholesale & Retail
  • 3,773 insolvencies (16%)
    
• Accommodation & Food Services
  • 3,372 insolvencies (14%)
    
• Administrative & Support Services
  • 2,451 insolvencies (10%)
    
• Professional, Scientific & Technical
  • 1,983 insolvencies (8%)
    
• Manufacturing
  • 1,970 insolvencies (8%)
    

Key takeaway:
Construction continues to lead all sectors by insolvency volume, underlining the need for early action, tighter credit control, and real-time construction-specific risk intelligence.

Our Take – What This Means for You

At Top Service Ltd, we look beyond headline statistics.

As the UK’s only credit reference agency dedicated solely to the construction industry, we use real-time, construction-specific trading data shared by our members to identify distress months – often over a year – before insolvency occurs.

What we consistently see:

• Payment delays are creeping in, long before failure
  
• Sudden changes in payment behaviour
  

In the current environment, late payment is no longer just a nuisance; it’s often the first sign of collapse.

This isn’t the time to rely on outdated credit reports or annual accounts. It’s the time to act on live intelligence from inside the industry.

What Should You Do Now?

• Review and tighten payment terms where needed
  
• Monitor customer behaviour: missed payments, CCJs, director changes
  
• Use live credit alerts, not static reports
  
• Act early on overdue debt
  
• Speak to specialists who understand construction risk
  

Still Trading in a High-Risk Sector? Stay Protected.

Insolvency numbers may fluctuate month to month, but construction remains one of the most exposed sectors in the UK economy.

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, you 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

January is a critical time for construction businesses. With tight margins, long projects, and the financial pressure of overdue invoices rolling over from last year, cash flow can start the year under strain.

At Top Service Ltd, we help construction suppliers and merchants minimise debt, maximise cash, and start the year with confidence. Our specialist credit management solutions are designed specifically for the UK construction sector, giving you real-time intelligence, proactive support, and expert guidance.

Why January is the Perfect Time for a Credit Control Review

Many businesses enter the new year without a proper credit reality check. Some common pitfalls we see in January include:

• Overdue invoices carrying over from the previous year
• Letting old debt slide in the hope it will “resolve itself”
• Limited visibility of debtor days and credit limits
• Lack of monitoring for insolvency or late payment risk

Even small oversights can have a significant impact on cash flow, so taking a proactive approach now can protect your business from larger problems later in the year.

2026 Credit Management Checklist

Starting the year strong means reviewing and updating your processes. Here’s a practical checklist for construction businesses:

✔️ Have you reviewed your credit limits?
✔️ Are payment terms being enforced consistently?
✔️ Do you have clear visibility of debtor days?
✔️ Are you actively monitoring insolvency risk?

If you’re unsure about any of these, your cash flow could be exposed. Top Service can provide the tools, intelligence, and support to fill those gaps.

How Top Service Supports Construction Businesses

We understand the challenges of construction complex projects, multiple trading partners, and variable payment behaviours. Our services help you stay protected at every stage:

• Credit Information & trading experience: Real-time insights from thousands of trading partners
• Company and director monitoring: Identify linked or high-risk companies early
• Proactive collections support: Targeted debt recovery before overdue invoices escalate
• Expert guidance: Tailored advice when you need it most

Early Awareness Protects Your Business

January is also the perfect time to raise insolvency awareness. Being informed about companies showing signs of financial distress can make the difference between recovering funds and writing them off.

By monitoring customers and suppliers, staying on top of overdue accounts, and acting quickly, construction businesses can reduce credit risk and improve cash flow from the very start of the year.

Your Credit Management Goals for 2026

What’s your priority this year? Some of the most common goals we see include:

• Reducing late payments
• Improving cash flow
• Minimising credit risk
• Strengthening insolvency awareness

Top Service can help you achieve these goals with sector-specific intelligence and actionable support, giving you the confidence to trade safely.

Start the Year Strong with Top Service

Don’t let overdue invoices and credit risks slow your business down. Whether you need guidance, monitoring, or debt recovery support, we’re here to help you start 2026 with stronger cash flow and greater confidence.

📞 Call us today on 01527 503990
✉️ Email: sales@top-service.co.uk

The latest company insolvency figures for England and Wales provide a welcome (though cautious) signal for the construction sector.

In November 2025, there were 1,866 registered company insolvencies, down 8% on October and 7% lower than November 2024. While insolvency numbers across 2025 remain slightly higher than last year, they are still significantly below 2023, which saw the highest annual insolvency levels in 30 years.

For construction businesses operating in an environment defined by tight margins, extended payment terms, and ongoing cost pressures, these figures matter — not just as statistics, but as indicators of risk across the supply chain.

A Closer Look at the Numbers

The majority of insolvencies in November 2025 were creditors’ voluntary liquidations (CVLs), accounting for 1,461 cases. These are typically used when directors conclude that a business can no longer meet its obligations, a familiar scenario in construction where cash flow can deteriorate quickly following delayed payments, cost overruns, or the failure of a key client.

There were also:

• 250 compulsory liquidations, down 21% on the previous month
  
• 136 administrations, a slight increase month-on-month
  
• 18 company voluntary arrangements (CVAs)
  
• One receivership appointment
  

The reduction in compulsory liquidations is particularly notable. These often follow sustained creditor pressure or HMRC action, so the decline may indicate that fewer businesses are being pushed to the crisis point, or that more directors are acting earlier.

At the same time, the increase in administrations and CVAs suggests a growing willingness to explore restructuring and rescue options, rather than allowing businesses to fail outright.

Construction Still Most Affected Sector – November 2025

In November 2025, construction remained the sector most impacted by company insolvencies:

• Construction: ~15–18% of all insolvencies – the highest of any sector
  
• Wholesale & retail trade: ~16%
  
• Accommodation & food services: ~14%
  
• Administrative & support services: ~10%
  
• Manufacturing: ~8%
  

Even as total insolvencies fell compared with October, construction businesses continue to face cashflow pressures, contract challenges, and rising costs, keeping sector risk elevated.

Our takeaway: Creditors and suppliers should keep a close eye on cash flow and payment behaviour, and businesses should consider early action to protect liquidity and manage exposure.

What This Means for Construction Businesses

Construction remains one of the sectors most exposed to insolvency risk, not just at a company level but across entire project chains. When a contractor, subcontractor, or key supplier fails, the impact can be immediate and far-reaching.

Key structural challenges remain:

• Long payment cycles and retentions, which restrict working capital
  
• Price volatility in materials makes fixed-price contracts riskier
  
• Dependency on a small number of contracts or clients
  
• Knock-on exposure when another party in the chain collapses
  

Although the 12-month rolling insolvency rate has dipped slightly to 52.9 per 10,000 companies, this does not remove the need for caution. Insolvency rates have risen from the unusually low levels seen during 2020–21 and, while still well below the peaks of the 2008–09 recession, the risk landscape remains challenging.

It is also important to note that the apparent moderation in insolvency rates is partly due to the number of registered companies more than doubling over the past decade. In practical terms, failures remain a regular feature of the commercial environment.

Early Indicators From A Creditor Perspective

For construction businesses, insolvency is rarely sudden. Financial distress typically develops over several months, leaving early warning signals that creditors can identify through credit monitoring, payment behaviour, and commercial intelligence.

Creditors should be alert to:

• Deteriorating payment performance, including slower settlement of invoices, partial payments, or increased reliance on extended terms
• Changes in supplier behaviour, such as requests for revised terms, staged payments, or early-settlement concessions
• HMRC-related risk indicators, including signs of PAYE, VAT, or CIS arrears, or repeated Time to Pay arrangements
  
• Evidence of contract underperformance, where rising labour or material costs are eroding margins and increasing cash dependency
• Escalating creditor activity, including frequent chaser correspondence, statutory demands, or the emergence of winding-up threats
• Overtrading indicators, where turnover increases, but liquidity weakens, suggesting contracts are being used to fund short-term cash gaps
• Withdrawal or tightening of third-party support, such as reduced bank facilities, bonding capacity, or insurance cover
• Reduced financial transparency, including delayed filings, inconsistent management information, or limited visibility over work in progress and profitability
  

Businesses exhibiting multiple indicators are typically operating under sustained cashflow pressure.

Our Take

The November figures point to stabilisation rather than recovery.

The fall in liquidations is encouraging, but the dominance of CVLs shows that many businesses are still reaching the point where directors feel they have no viable alternative. For construction, this reinforces a long-standing truth: cash flow, not profit, determines survival.

We are also seeing a gradual shift toward earlier intervention, with more companies exploring administration or CVAs before creditor pressure becomes overwhelming. That is a positive development — but only for those who act in time.

Construction businesses that stay close to their numbers, actively manage supply-chain risk, and seek advice early are best placed to navigate the months ahead.

Strengthening Your Foundations

If you operate in the construction sector — whether as a contractor, subcontractor, developer, or supplier — now is the time to review your financial position and risk exposure.

• Are you confident in your cashflow forecasts?
  
• Do you understand your exposure to supplier or client insolvency?
  
• Do you have a plan if a major contract underperforms or payments are delayed?
  

Early advice can make a critical difference. Speaking to an experienced advisor before problems escalate can help protect your business, your projects, and your people.

📩 Contact us today to see how our insight and support can help you manage credit risk, minimise debt, and protect cashflow.

The Bank of England has announced a reduction in the base rate, a move welcomed by many UK businesses after a prolonged period of high borrowing costs.

For the construction sector, where margins are tight and projects are often financed over long periods, lower interest rates may offer some short-term relief. However, from a credit management perspective, it’s important to look beyond the headline.

A base rate cut does not eliminate the underlying risks that construction suppliers and merchants face daily.

Lower Rates, But Ongoing Pressure

A reduction in the base rate can:

• Lower borrowing costs for businesses using overdrafts or variable-rate finance
• Ease pressure on working capital for some contractors
• Support investment decisions over the longer term

However, in construction, cash flow is rarely constrained by borrowing costs alone. Late payment, slow payment, and customer insolvencies remain the most significant threats to financial stability across the supply chain.

In recent months, insolvencies in construction have remained elevated, and payment behaviour has become increasingly uneven. A lower base rate does not automatically improve how or when customers pay.

Why Credit Risk Still Needs Close Attention

From our experience working closely with construction suppliers and merchants, rate changes often create a false sense of reassurance.

While some customers may benefit from reduced finance costs, others may still be:

• Struggling with project delays
• Absorbing rising labour and material costs
• Managing cash flow under pressure

These stresses often show up first as changes in payment behaviour, long before a formal insolvency event occurs.

That’s why proactive credit management remains essential, regardless of where interest rates sit.

What Construction Businesses Should Be Doing Now

A base rate cut is a good moment to review your exposure and ensure your credit processes are fit for purpose. Practical steps include:

• Monitoring customers closely for changes in payment behaviour
• Reviewing credit limits and terms, particularly for larger or long-running projects
• Taking early action on slow payments, rather than waiting for balances to escalate
• Using up-to-date, sector-specific intelligence, not just historic filed accounts

In construction, the businesses that protect their cash flow best are those that act early — not those that react once a problem becomes unavoidable.

Supporting Construction Through Changing Conditions

At Top Service Ltd, we specialise in credit management solutions designed specifically for the UK construction sector. We help our members understand what’s happening in real time across the industry, so they can make informed decisions and protect their cash flow, whatever the wider economic climate.

Interest rates will continue to move. Payment risk will continue to exist.
The key is having the insight and support to stay one step ahead.

If you’d like to review your current exposure or discuss how to strengthen your credit management approach, our team is here to help.

Why the best business outcomes still depend on people talking to people.

By Philip King FCICM

I was privileged to represent Top Service at the 2025 CICM CreditFest events held in Birmingham, Manchester, London, and Leeds in recent months. They were great events and it was suggested I might share some of my thoughts with a wider audience through this magazine.

Let me start with the warning I gave the attendees at each event. There’s nothing here that you don’t already know. Rather, my intention is to make us think about how we communicate and consider if an alternative medium might make us more effective.

Chambers Dictionary defines communication as “to succeed in conveying one’s meaning to others”. That’s surely what we all set out to do when we start interacting with anybody so why does it sometimes go so spectacularly wrong?

The pitfalls of modern communication

I’m sure we’ve all misunderstood the intention of an email and reacted more stridently than we should, or we’ve sent something quite innocuous but the tone or wording we’ve used has resulted in it being misinterpreted and led to some backtracking and explanation. Might a conversation have worked better?

I recently shared a disastrous chatbot exchange which resulted in me being asked about facial or fingerprint recognition, and avoiding fees and charges, presumably because the bank hadn’t yet taught the bot about CIFAS markers being raised on an account! Eventually, a real conversation produced a satisfactory outcome.

Has the phone fallen silent?

Let’s talk about the phone. I wonder how Alexandra Graham Bell would have felt in 1876 if he’d known how little the device he invented would be used for its intended purpose 150 years on. A Uswitch survey in 2024 found that 25% of 18-34 year-olds never answer their phone. They want a text first or respond by text before having a conversation.

And whatever happened to simple telephone conversations. These days, I suggest a follow-up conversation to someone and they tell me they’ll send me a meeting invitation. I then sit in front of my computer, while they sit in front of their computer, as we look at each other for ten minutes and have the conversation. It can be useful but is it really always necessary?

Communication is a people thing

People buy from people, people pay people, people talk to people.

That’s why I have a bad taste in my mouth, before I’ve even started eating, when I’ve stood at the podium at a restaurant entrance being ignored by several staff members waltzing backwards and forwards until the appointed person comes across and greets me with a big smile. If only staff were trained to acknowledge customers when they see them waiting.

That’s why Mrs King didn’t buy a car from a particular dealership earlier this year. The salesman didn’t smile, didn’t make eye contact, didn’t seem interested, and just went through the motions without showing any real interest. The car was probably ideal but the interaction failed. People buy from people.

That’s why in 1978, at the start of my career in credit, I used to telephone a customer every Monday morning; we’d chat about the weather, football, weekend activities and all manner of things, but rarely mentioned money. If I called him on Monday, his weekly cheque would arrive on Wednesday. If I didn’t call him, it wouldn’t. People pay people.

Some conversations, and especially difficult ones, need more than just words. When we sit with someone, we pick up the unsaid. Body language, eye movement, gestures all help us to learn what’s going on beneath the surface and gain a better understanding. These are real people conversations: telephone, Zoom, email won’t cut the mustard.

When talking pays off

In my presentation I shared some examples of Top Service members who had benefitted from the organisation’s passion for conversations and sharing. Two were from member support activity and two from the debt collection team.

A member was concerned about an application for a £75,000 credit line from a potential customer. Her call into the team generated some further calls and the team identified that the application was fraudulent. As a result, the member – and several others – avoided being duped into supplying significant sums. Another member was nervous about an application for substantial credit. Her call into the team led to the unearthing of a number of other similar applications, alongside negative information. They, and other Top Service members, declined the facilities requested and were saved from substantial losses.

The close monitoring of a winding-up petition allowed the debt collection team to act when the petitioner was paid and the petition withdrawn. Quick action allowed the full six-figure sum to be collected in full within 11 days of instruction, with an additional £10,000 recovered for late payment interest and compensation charges.

The final example related to a member of the debt collection team noting a complete change in the tone of voice from a member of the debtor’s accounts team who moved from “the payment will be on the next run” to “I need to get authorisation to add to the next payment run” when it had failed to arrive. The collector spotted nuances in the voice of the other party. As a consequence, further digging revealed an as yet unadvertised winding-up petition. The Top Service member supported it and got paid.

All four examples pay tribute to the monitoring activity and speed of contact but, more importantly, they demonstrate the value of real and timely conversations that allowed quick decisions to be made. People working with people get positive results.

Try it and see the difference

My challenge to CreditFest attendees was to go away and think before one interaction each day. Will a text elicit a simple piece of information without adding to the recipient’s inbox? Is it quicker to wander to someone’s desk and ask them for an update and avoid the writing, responding to, and reading of emails? Could popping your head round the boss’s door and asking for a chat, or picking up the phone, work better than creating a long email chain providing the background and story, then answering questions that arise, before getting into the process of agreeing next steps?

Do that enough, it will become a habit, and we’ll be more effective. Why not give it a try.

Philip King FCICM is a non-executive director at Top Service Ltd

After a brief period of stability, corporate insolvencies have begun to climb once more.

In October 2025, England and Wales recorded 2,029 company insolvencies —
🔺 2% higher than September 2025 (1,995)
🔺 17% higher than October 2024 (1,739)

While 2025 remains slightly above 2024 levels, activity is still below the 30-year high seen in 2023.

Breakdown of Insolvencies

• Compulsory liquidations: 301
  Up 8% from September and above 2024 averages — showing creditors (including HMRC) are taking a firmer stance.
  
• Creditors’ voluntary liquidations (CVLs): 1,592
  Stable and still the dominant insolvency route, accounting for almost 80% of all cases.
  
• Administrations: 119
  Down from September.
  
• Company voluntary arrangements (CVAs): 17
  Flat month-on-month.
  

Construction Sector Breakdown

Total construction insolvencies: 436

(Up slightly from 421 in September, and broadly aligned with the 3-month range of 420–450)

Insolvency types within construction

• Creditors’ Voluntary Liquidations (CVLs): 333 cases (76%)
  Smaller contractors and specialist trades continue to dominate failures, driven by cashflow compression and late payment culture.
  
• Compulsory Liquidations: 71 cases (16%)
  A steady rise through 2025, signalling tougher action from creditors — especially HMRC.
  
• Administrations: 28 cases (6%)
  Larger firms attempting rescue, restructuring, or pre-pack sales.
  
• Company Voluntary Arrangements (CVAs): 4 cases (1%)
  Still rare but used occasionally to secure breathing space.

Construction-Specific Trends You Need to Know

• Finishing trades, M&E, joinery, and fit-out contractors remain the most vulnerable — together accounting for almost half of October’s construction failures.
  
• Delayed payments continue to be one of the primary triggers of insolvency, particularly for subcontractors with projects that involve a high volume of materials.
  
• Inflation easing hasn’t translated to relief, as financing costs and retentions continue to pressure margins.
  
• Tender prices remain competitive, putting further strain on firms unable to absorb fluctuations.
  
• Civil engineering stays comparatively stable — fewer failures, larger firms, and more predictable pipelines.

Our Take — What Should You Do?

October’s figures confirm that construction remains one of the most distressed industries in the UK. Insolvencies have risen again, and pressures on subcontractors and specialist contractors are intensifying.

While national insolvency rates have softened slightly over the past year, the construction sector has not benefited from the same easing. Cashflow volatility and late payments continue to put contractors at risk.

The message remains clear: Stronger credit management, early risk detection, and tighter cashflow control are essential to protect your business.

Being proactive begins with understanding the risks specific to your customers, projects, and supply chain.

👉 If you’d like tailored strategies to safeguard your position and build resilience, our team is here to help.

Credit management isn’t just about collecting money — it’s about building great business relationships that support long-term growth and stability.

For businesses in today’s fast-paced environment, especially across the construction and trade sectors, effective credit control is key to maintaining healthy cash flow. The best businesses understand it’s not simply about chasing payments; it’s about trust, communication, and professionalism.

You Shouldn’t Ever Have to Chase a Client for Payment

In an ideal world, every client would pay on time.

Sadly, we don’t live in that world.

There are countless reasons and excuses for late payment, but only some are genuinely out of your control. The good news? Many can be avoided with a proactive approach.

• Payment disputes should be ironed out before you deliver goods or services.
  
• “Invoice not received” excuses disappear when you confirm who invoices should go to and follow up to ensure they’ve been received.
  
• “Already paid” responses can be prevented by keeping your bank reconciliations up to date.
  
• “Invoice under query” situations reduce when you respond quickly and learn from previous issues.
  
• Clients unable to pay can often be identified early through regular credit monitoring and risk checks.
  

Of course, things don’t always go to plan — but the more you can do before invoicing or delivery, the fewer headaches you’ll have after.

A little time and effort spent on how you grant, monitor, and control credit will help keep your cash where it should be — in your bank account, more quickly.

1. Set Clear Credit Terms from the Start

Transparency builds trust. Always confirm your payment terms upfront — including due dates, late payment fees, and any early settlement incentives. Clarity prevents confusion and sets professional expectations.

2. Know Your Customers

Take time to understand who you’re doing business with. Run credit checks, monitor payment behaviour, and watch for early signs of financial strain. Good credit information helps you minimise risk and maximise cash.

3. Communicate Early and Often

Don’t wait for problems to arise. Send reminders before invoices are due and follow up promptly when payments are late. Staying polite, consistent, and professional protects relationships while ensuring accountability.

4. Build Relationships, Not Barriers

Good credit control is as much about people as it is about process. Strong, respectful relationships encourage honesty and loyalty — and loyal customers pay faster. Work collaboratively to solve issues rather than letting them escalate.

5. Review and Refine Regularly

Credit control isn’t a one-off task — it’s an ongoing process. Regularly review your systems, credit policies, and communication methods to make sure they’re still effective and aligned with your business goals.

The Bottom Line

Good credit control isn’t about chasing — it’s about consistency, clarity, and communication. By building trust and managing risk effectively, you’ll strengthen your customer relationships, protect your cash flow, and help your business — and your customers — thrive.

Because when you minimise debt, you maximise cash.

Construction insolvencies remain high as overall UK insolvency levels stabilise in September 2025.

Overview

The latest figures from the Insolvency Service show that business failures across England and Wales remain stubbornly high, and construction continues to feel the brunt.

With 2,000 registered company insolvencies in September 2025, levels are holding steady compared to both August (2,046) and the same month last year (1,967).

While this stability might seem encouraging, insolvency volumes across the first nine months of 2025 remain slightly higher than in 2024 and broadly in line with 2023, a year that marked the highest insolvency total in over 30 years.

Headline figures at a glance

• 2,000 company insolvencies were registered in September 2025
  
• Comprising 281 compulsory liquidations, 1,578 creditors’ voluntary liquidations (CVLs), 124 administrations, and 17 company voluntary arrangements (CVAs)
  
• One in 189 companies on the Companies House register entered insolvency in the year to September 2025, a rate of 52.9 per 10,000 companies
  
• This is slightly down from 55.0 per 10,000 in the 12 months to September 2024
  
• The construction sector continues to experience the highest insolvency levels, accounting for 17% of all cases over the past year
  

Construction: still under pressure

Construction remains the hardest-hit sector, with 3,934 insolvencies recorded in the 12 months to August 2025, 17% of all UK business failures.

The sector continues to struggle under the weight of rising costs, tight margins, and persistent payment delays. Many firms are still feeling the knock-on effects of fixed-price contracts signed during the volatile 2022–23 period, where material and labour costs rose sharply.

While overall insolvency numbers have steadied, there’s little doubt that cashflow challenges continue to test even long-established businesses. Late or failed payments up the supply chain remain a major contributing factor.

A longer-term view

It’s worth remembering that while insolvency numbers remain elevated, they’re still far below the 2008–09 recession peak, when 113.1 companies per 10,000 failed.

The number of active companies has more than doubled over that period, which means that while the rate of insolvency is lower, the real-world impact, particularly for those in construction, remains significant.

The positive takeaway is that the rate of increase appears to be slowing, hinting that the sector may be moving into a more stable phase, even if pressures persist.

Practical steps for construction firms

Periods like this underline the importance of strong credit management and early debt control. Proactive firms can significantly reduce their risk of loss through the following actions:

1. Keep credit data up to date: Regular checks on clients and suppliers can flag early signs of distress.
   
2. Monitor payment behaviour closely: Sudden changes in payment patterns can signal emerging problems.
   
3. Act early on overdue debts: Prompt, professional recovery action can protect cash flow and relationships.
   
4. Review exposure to high-risk accounts: Adjust credit terms where necessary to limit potential losses.
   
5. Encourage open communication: Understanding your customers’ cashflow pressures can help you plan and negotiate effectively.
   

Our view

Our team continues to see the knock-on effects of high insolvency levels across the construction sector. Even well-managed firms are feeling the strain from late payments, extended credit terms, and reduced margins.

The message is clear: early visibility and action make the difference. Businesses that monitor customer credit, manage debt exposure, and take early steps to recover overdue payments are far more likely to stay resilient — even when trading conditions remain challenging.

At times like these, credit control and debt recovery aren’t just about chasing payments; they’re about protecting relationships and cash flow. Knowing who you’re trading with, keeping close tabs on changes to their financial health, and acting promptly when risk increases can help prevent problems before they become losses.

How can we help

If you’re concerned about late payments or want to strengthen your credit management processes, our specialist construction credit and debt recovery team can help. From real-time credit data to effective recovery strategies, we’re here to help you protect your business and keep projects moving.

Background

In May 2025, a new member joined Top Service — marking their fourth company within the same group to take advantage of our industry-leading credit management and debt recovery services.

The group’s decision to extend membership across all its businesses reflects its confidence in Top Service’s results and our understanding of the construction sector’s unique credit challenges.

The Challenge

Shortly after joining, the member encountered an overdue account with a balance of £10,725.28, which had been outstanding since 31 August 2025.

Despite reasonable efforts to obtain payment directly, the debtor failed to respond, prompting the member to pass the case to Top Service on 1 October 2025.

The Solution

Upon receiving the case, Top Service immediately commenced the recovery process.
In line with Late Payment Legislation, statutory charges and interest were added, bringing the total amount owed to £11,370.85.

Our experienced team quickly established communication with the debtor, leveraging both our professional approach and our established reputation for effective, results-driven collections within the industry.

The Result

Within just 5 days, the full balance — including all late payment charges — was paid in full.

Zero cost – The collection fee was covered by the additional compensation and interest, meaning our service didn’t incur any costs.

Notably, Top Service had already issued 10 previous chasing letters to this same debtor in recent months, relating to debts totalling over £120,000 — all of which were successfully settled.

This latest success further demonstrates how consistent use of Top Service helps reinforce prompt payment behaviour across the industry.

Member Testimonial

“We are making good use of the services across all businesses. We find the free chasing emails and the No Win No Fee debt collection services very worthwhile.

Key Highlights

• New member success: First debt recovered within 5 days of referral
  
• Full recovery: £11,370.85 (including late payment charges) paid in full
  
• Group confidence: Fourth company in the group to join Top Service
  
• Proven effectiveness: Debtor had previously cleared £120,000+ in debts after Top Service intervention

Need a second opinion on a tricky overdue account?
📞 Ask an Expert – our credit control advisors are here to help.