March 2025 saw a slight dip in company insolvencies across England and Wales, but the numbers remain worryingly high—and construction continues to bear the brunt.

According to the latest government data, there were 1,992 registered company insolvencies in March 2025, down 2% from February’s 2,032, but still 9% higher than March 2024. Although we’re no longer at the historic highs of 2023, the current levels are a far cry from stability. These figures serve as a reminder: volatility is far from behind us, particularly for industries already stretched thin by rising costs, delayed projects, and prolonged payment cycles.

Construction: Still Leading the Pack—for All the Wrong Reasons

Once again, the construction industry recorded the highest number of insolvencies in the 12 months leading to February 2025—4,046 cases, accounting for 17% of all company insolvencies where the industry was known. This marks construction as the most affected sector, continuing a trend that has persisted over the past two years.

Why is construction struggling? The sector faces a perfect storm: persistently tight margins, increasing materials and labour costs, long-standing late payment issues, and the ongoing impact of high interest rates on project financing and property development. Add to that the increased risk aversion from lenders and clients, and it’s easy to see why many firms are reaching breaking point.

At Top Service, we’ve seen firsthand how even well-run construction businesses are being caught in the crossfire—especially subcontractors and SMEs who often operate with limited cash buffers.

Breaking Down the Numbers

• Creditors’ Voluntary Liquidations (CVLs) continued to dominate, making up 77% of all insolvencies in March. These rose slightly—up 1% from February and 8% year-on-year—suggesting that many companies are choosing to wind up before cash flow pressures become fatal.
  
• Compulsory liquidations dropped 24% from their 10-year high in February but still remained higher than both the March 2024 level and the 2024 monthly average.
  
• Administrations rose by 17% month-on-month and 30% year-on-year, hinting at an uptick in attempts to restructure or sell businesses before total collapse.
  
• While low in volume, Company Voluntary Arrangements (CVAs) surged by 143% from February and were 89% higher than in March 2024, indicating renewed interest in alternative turnaround options.
  
• The rolling 12-month insolvency rate now stands at 53.1 per 10,000 companies, or 1 in every 188 companies—down from 55.8 the previous year but still elevated by historic standards.
  

It’s worth noting that although total insolvencies over the last year are slightly down from 2023’s 30-year high, they remain significantly above pre-pandemic levels.

Long-Term Picture: Risk Hasn’t Gone Away

While the headline rate may suggest slight easing, the underlying conditions remain tough. The construction sector, in particular, is still walking a tightrope. Even as insolvency rates per capita remain below 2008-09 levels (thanks to a larger register of active companies), the pressure on businesses is intense.

Government support during the pandemic helped stem the tide—but we are now seeing the delayed impact of debt burdens and inflationary costs. The question for the months ahead is whether these insolvency levels represent a new normal, or if we’re heading for further structural adjustment.

Our View

We’re urging construction businesses to stay proactive—tighten credit control, renegotiate payment terms where possible, and be wary of overtrading. Even modest drops in insolvency numbers shouldn’t be mistaken for a sign of stability. The data paints a clear picture: this is a sector still deep in the fight for resilience.

If you’d like to speak with us about how to protect your business or a client’s in these conditions, reach out. We’re here to help you navigate the risk and stay ahead of the curve.

Overview

With fraud on the rise across the construction industry, taking proactive steps to protect your business is more important than ever. Opening trade credit accounts comes with an inherent level of risk—not just around payment delays or defaults, but the growing issue of fraudulent activity.

At Top Service, we see this risk daily. From false identities and stolen details to completely fabricated companies, the methods fraudsters use are evolving. As the construction sector’s #1 credit reference agency, we believe in sharing insights and supporting our customers in taking smarter, preventative action.

Why Due Diligence is Crucial

When extending credit, you’re essentially investing in someone else’s ability to pay. But if that someone isn’t who they say they are, the risk is far greater.

The issue isn’t just non-payment—it’s the permanent loss of goods, disruption to supply chains, and financial instability that could have been avoided with some simple but effective checks.

Fraudulent activity reported to us recently includes:

• Stolen company identities used to secure goods
• Fake companies with real-looking websites, contact details, and accounts
• Individuals posing as employees of genuine firms to place high-value orders

In every case, there were warning signs that could have prompted further investigation.

Spotting the Warning Signs

Here are a few credibility concerns and inconsistencies you should never ignore:

• Unfamiliar email addresses from genuine-looking companies
• Urgent or unusual order volumes, particularly on a first transaction
• Delivery address mismatches (mailboxes, residential locations, or empty units)
• Communication gaps (e.g. phone numbers that go straight to voicemail or bounce back emails)

How to Protect Your Business

Here are simple, actionable steps you can take:

1. Use a Credit Application Form

Gather essential details:

• Company name and registration number
• Entity type (e.g. Ltd, Sole Trader)
• Key contacts and decision-makers
• Delivery addresses
• Contact phone numbers and emails

2. Verify the Information

Don’t just collect it — check it:

• Use a credit reference agency (like Top Service) to verify the company
• Review director history for patterns like multiple dissolved companies
• Check if others in the industry have flagged the business as a credit risk or potential fraud

3. Pick Up the Phone

If an order seems unusual, call the company directly using details from their official website (not the order form) and confirm:

• That the person works there
• That they have authority to place the order
• That the order itself is legitimate

This one action can stop a fraudulent transaction in its tracks.

4. Be Wary of Delivery Instructions

Avoid orders that request:

• Cross-loading at anonymous locations
• Third-party delivery without verification
• Last-minute delivery changes or pressure

5. Test Your Own Processes

Create an internal test order or use a fake identity to apply for credit. Did the order get through too easily? Use this to assess and strengthen your internal fraud prevention procedures.

What If You Suspect or Fall Victim to Fraud?

• Report it to Action Fraud or by calling 101
• Share it with your trade association and credit reference agency
• Use it to reinforce your future credit policies

Final Thoughts

Fraud can be sophisticated, but so can your defences. Trust your instincts. If something doesn’t feel right, it probably isn’t. We’re here to help you make better-informed decisions that protect your business.

Need help tightening your credit process? Ask an expert today.

The Bank of England is expected to lower the base interest rate from 4.5% to 4.25% at its meeting on 8 May 2025. This move comes in response to slowing inflation and wider economic challenges. While the rate cut may seem small, it could have a real impact on the construction industry—and for the credit managers supporting it.

What to Watch For in the Construction Sector

Lower Borrowing Costs

A cut in interest rates means cheaper loans and finance. This is good news for construction firms, especially smaller ones that rely on borrowing. It may encourage more investment and project activity.

Action: Keep a close eye on customers taking on more debt. Cheaper borrowing can sometimes hide financial problems.

Better Cash Flow

Lower rates can ease pressure on cash-strapped businesses, improving their ability to pay on time—at least in the short term.

Action: Review payment terms. Some customers may be in a better position to pay sooner, but it’s important to check that improvements are genuine.

More Projects Starting Up

Cheaper finance can lead to more residential and commercial developments. This means your customers may be busier—but your exposure to risk could increase too.

Action: Make sure credit limits reflect both the customer’s finances, the experiences of other suppliers and the amount of work they’re taking on.

Higher Risk-Taking

While lower rates can help, they can also encourage riskier behaviour—especially from firms trying to recover or grow quickly.

Action: Look again at high-risk accounts. Update credit ratings and monitor these businesses more often.

Boost in Confidence

A rate cut can lift confidence across the industry. Businesses may become more open to new projects, suppliers, and partnerships.

Action: Work closely with commercial teams. Support growth where it makes sense—but keep credit controls in place.

Final Thought

This small rate cut might not grab headlines, but for credit professionals in construction, it matters. It brings new opportunities—but also fresh risks. Now’s the time to stay alert, support commercial goals, and manage exposure with care.

Background

Stuart, a director of new Tech Roofing Limited, reached out for support regarding an outstanding debt totaling £120,309.00, with the oldest invoice date being November 2024 and was 79 days overdue, when passed to Top Service. 

He had been introduced to our services by another satisfied member and was frustrated by the non-payment from his customer. Stuart asked how we could support him with collecting the money owed. 

Our Approach

During our conversation, I explained that we’re more than just a debt recovery service but also provide:

Unlimited Credit Information – Allowing businesses to make informed decisions.
Unlimited Company & Director Monitoring – Helping track financial stability and potential risks.
Chasing Support – Including three formal chasing letters and unlimited chasing emails to help recover overdue payments.

Stuart was particularly impressed with the insights our credit information, shared trading experience data and monitoring service had to offer and was made aware of information he didn’t know about the company, prior to the call.

Critical Development: Petition Alert

During the evaluation I identified that a winding up petition has been presented against the debtor company, which meant we needed to really think about the strategy. Information from our members was leading us to believe that the petition was due to be withdrawn (paid and not taken to the hearing date) which I advised Stuart of. 

Additionally, I explained his options:

• He could support the petition but with no guarantee of receiving payment.
  
• The company might settle the petition and continue trading.
  

Resolution & Debt Recovery Success

Just a couple of days later, while Stuart was considering his options, we contacted him with an urgent update: the petition had been withdrawn that day. This meant our approach needed to shift.

Because of the high amount owed, we had been monitoring the petition closely, ensuring Stuart received an immediate update when its status changed.

Following our updated recommendations, Stuart instructed us to proceed with active debt collection. The case was swiftly passed to our collections team, and chasing began immediately.

Additionally, I confirmed that Statutory Interest and Late Payment Compensation could—and, in our opinion, should—be applied. This added over £9,000 to the balance.

The Result? Full Recovery in Just 11 Days!

Total amount recovered: £130,000+

• £120,000 – Original invoice amount
  
• Remaining balance – Late Payment Interest & Compensation
  

Zero cost to Stuart – The collection fee was covered by the additional compensation and interest, meaning our service didn’t cost him a penny.
Immediate financial relief – Avoiding what could have been a significant financial loss for his business.

Outcome & Testimonial

Recognising the value of our service, Stuart formally instructed us to recover the debt. Given previous missed payment promises and failed repayment plans, he was confident that our expertise would secure the best possible outcome.

⭐ Testimonial from Stuart Belcher, New Tech Roofing Limited  ⭐

“I can’t thank the team enough for their support. The information provided was invaluable, helping me navigate a high-risk situation with confidence. Their expertise in debt recovery meant I was able to recover outstanding funds quickly, avoiding what could have been a significant financial loss for my business. The service was professional, proactive, and incredibly effective. I highly recommend them to anyone looking to strengthen their credit control and debt recovery processes!”

Recover What’s Yours Without the Hassle

Struggling with overdue payments? Let us help you get back what you’re owed—professionally and efficiently. Contact Us Today

Today, Sheen Lane Developments Ltd has filed a Notice of Appointment of an Administrator. The appointed administrators are Quantuma Advisory Ltd.

This information follows the update we provided in January 2025.

As you may recall, on 6th January, Sheen Lane Developments Ltd filed an Administration Application.

Thanks to our early warning alert issued in October 2022, 10 Top Service members were able to act quickly and recover their money by instructing us to pursue debt collection on their behalf.

By early 2022, we had identified the average payment delays from Sheen Lane Developments, which allowed our members to make informed credit decisions and integrate this exclusive insight into their credit risk assessments and collection processes.

The latest financials for Sheen Lane Developments show the company had 22 employees, a pre-tax loss of £26,987.808, and a negative net worth of -£8,701,634. The company’s working capital stood at £4,467,188.

Since November 2024, the company has accumulated 5 County Court Judgments (CCJs), totaling £254,099.00. We expect the company to owe at least £4 million to trade creditors.

Overview of Insolvency Trends

The latest data on company insolvencies in February 2025 paints a concerning picture for many industries, with construction continuing to bear the brunt of high insolvency numbers. In February 2025, the number of registered company insolvencies in England and Wales was 2,035, reflecting a 3% increase compared to January 2025. However, this marks a 7% decrease when compared to February 2024, indicating a slight decline from the record levels seen in 2023.

Insolvency breakdown:

• 393 compulsory liquidations
• 1,520 creditors’ voluntary liquidations (CVLs)
• 115 administrations
• 7 company voluntary arrangements (CVAs)
• No receivership appointments

For the 12-month period ending February 2025, the insolvency rate stood at 52.4 per 10,000 companies, equivalent to one in every 191 companies entering insolvency. Although this rate is lower than the peak levels observed during the 2008-09 recession, it remains significantly higher than historical averages.

Construction: The Hardest-Hit Sector

The construction industry continues to face the highest number of insolvencies, accounting for 17% of all company insolvencies in the 12 months leading to January 2025. With 4,031 construction firms failing, it remains a key area of concern.

The ongoing pressures facing the construction sector are not new, but they have intensified in recent months

With the introduction of increasing National Insurance (NI) contributions for employers this will undoubtedly add further strain to businesses across the sector. The government’s decision to raise employer National Insurance rates in an effort to fund social care and the NHS means that construction companies will face higher costs for their workforce at a time when cash flow and profitability are already under pressure. These increased costs may be particularly burdensome for smaller firms that have tighter margins and limited cash reserves.

This change has added another layer of financial uncertainty for construction companies. The higher National Insurance contributions, combined with other economic pressures, are forcing many to reassess their staffing levels and operational capacity, which could potentially delay or scale back ongoing projects.

Outlook & Next Steps for Credit Managers

While recent interest rate cuts offer some relief, construction firms still face significant risks. Proactive credit management is crucial.

At Top Service, we help credit professionals:
✔ Spot Early Warning Signs using real-time payment and trading data
✔ Maximise Cash Flow through expert insights and credit solutions
✔ Recover Overdue Invoices using our specialist recovery services, ensuring you get paid faster and reduce bad debt exposure

Don’t wait until it’s too late—take action now. Call us at 01527 503990 to protect your business.

We recently celebrated another incredible 20-year anniversary—congratulations and a huge thank you to Shelley Tatlow! Over the past two decades, Shelley has grown with the company, building her industry knowledge by working across all departments. We truly appreciate your dedication and hard work. Watch now and enjoy reflecting on your amazing journey!

Introduction

Relying solely on generic credit reference agencies to assess a company’s financial health can leave you exposed to unexpected risks. In construction, where margins are tight and late payments are common, you need a full picture of a customer’s payment behavior—not just their credit score.

While credit reports provide useful insights, they only tell part of the story. So, what other sources of payment information can help you make stronger credit decisions? Let’s break it down.

1. Real-Time Trading Experiences

Credit scores are often based on historical data, meaning they might not reflect a company’s current financial behavior. This is where real-time trading experiences make all the difference.

✅ See exactly how a business is paying suppliers right now
✅ Identify clients with a history of late or missed payments
✅ Spot trends before they turn into bad debt

🔹 Example: A company might have a strong credit score but has recently started paying suppliers 60+ days late. Without real-time trading data, you wouldn’t know this until it’s too late.
📌 Our Solution: We provide up-to-the-minute payment trends so you can see exactly how your customers are paying their suppliers today—not six months ago.

2. Industry-Specific Payment Insights

Construction payment behavior is different from other industries. Standard credit reports don’t always account for:

• Seasonal cash flow fluctuations
• Project-based payment structures
• Delays caused by slow-paying main contractors

🔹 Example: A subcontractor might appear financially stable, but if they rely on payments from a slow-paying main contractor, their cash flow could be at risk.
📌 Our Solution: Our industry-specific insights help you understand construction payment patterns, so you can avoid risky clients before they become a problem.

3. Public Records & Legal Filings

Legal filings and public records are indicators of financial distress that don’t always show up in credit reports. Some key indicators include:

✅ County Court Judgments (CCJs) – Signs that a company has failed to pay creditors
✅ Winding-up petitions – Indications that a business is close to collapse
✅ Liquidation filings – Confirms when a company is shutting down

🔹 Example: A contractor may have a decent credit score but has multiple CCJs filed against them in the past year—this is a serious warning sign.
📌 Our Solution: We monitor trading experiences and industry trends to spot early warning signs of insolvency, helping you act before it’s too late.

4. Payment References from Industry Peers

Word-of-mouth is still one of the most powerful risk assessment tools. Speaking to other suppliers who have dealt with a potential client can provide insights no credit report can.

✅ Get firsthand accounts of a company’s payment reliability
✅ Identify clients who delay payments to some suppliers but not others
✅ Spot businesses that prioritise certain payments over others

🔹 Example: A supplier might report that a client pays within 30 days, but another supplier says they take 90+ days—this inconsistency is a warning sign.
📌 Our Solution: We gather anonymous industry payment experiences so you can see what others in construction are experiencing.

Final Thoughts

While credit reports are useful, they’re not enough on their own. To fully protect your business, you need a multi-layered approach that includes:

✔️ Real-time trading data to see current payment trends
✔️ Industry-specific insights that go beyond generic reports
✔️ Legal and public records to catch warning signs early
✔️ Peer payment references for firsthand payment experiences

Want to make smarter credit decisions? Let’s talk.
📞 Book a Free Consultation

Introduction

In the construction industry, late payments aren’t just an inconvenience—they can throw your cash flow off track, delay projects, and put your business at financial risk. Yet, many firms still operate without a clear credit policy, exposing themselves to bad debts and unreliable payers.

A well-structured credit policy is your best defense against late payments. It sets clear expectations, protects your revenue, and ensures you get paid on time. So, what should your credit policy include, and how do you make it work for your business? Let’s break it down.

Why Your Business Needs a Credit Policy

A credit policy isn’t just for large corporations. Whether you’re a small subcontractor or a major supplier, having a clear policy helps you:

✅ Reduce bad debt risk – Define who qualifies for credit and on what terms.
✅ Improve cash flow – Faster payments mean smoother operations and fewer cash shortages.
✅ Avoid awkward disputes – Clear policies prevent misunderstandings and payment delays.
✅ Make informed credit decisions – Know when to extend credit and when to require upfront payment.

Without a structured credit policy, you risk working with unreliable customers who may delay or refuse payments altogether.

5 Essentials of a Strong Credit Policy

1. Define Who Qualifies for Credit

Not every customer should be given credit terms. Your policy should outline who qualifies based on:

• Credit reports & financial health
• Real-time trading experiences with suppliers
• Business history & reputation in the industry

🔹 Pro Tip: Don’t rely solely on credit scores. A business with an average score may still have a habit of paying late. Check real-time payment trends to see if they pay suppliers on time.

2. Set Clear Credit Limits

Once you determine a customer is eligible for credit, establish:

• The credit limit you’re willing to extend
• Payment terms (e.g., 30 days, 60 days)
• Penalties for late payments

Avoid vague wording like “Payment due upon receipt.” Instead, be specific:
✅ “Invoices must be paid within 30 days of issue. Late payments will incur a 5% monthly fee.”

3. Establish a Clear Payment Process

Your credit policy should outline how customers should make payments, including:

• Accepted payment methods (bank transfer, direct debit, etc.)
• Invoice format & frequency
• Contact details for billing inquiries

🔹 Pro Tip: Businesses that invoice promptly and systematically are more likely to get paid on time. Automate your invoicing process instead of manually chasing payments.

4. Have a Defined Collections Process

No one likes chasing unpaid invoices, but having a structured follow-up process prevents small issues from becoming major cash flow problems. Your policy should include:

• When reminders are sent (e.g., 7 days before due date, on due date, 7 days overdue)
• Actions taken at each stage (friendly reminder → formal notice → debt recovery)
• The point at which external debt recovery services step in

🔹 Pro Tip: The sooner you escalate overdue accounts, the higher your chances of recovering the full amount. Don’t wait months before taking action.

5. Communicate & Enforce Your Policy

A credit policy only works if:

✅ It’s communicated upfront – Include it in contracts & onboarding documents.
✅ Your team enforces it consistently – Sales and accounts teams should follow the same rules.
✅ No exceptions are made – Allowing “one-time” rule breaks sets a risky precedent.

🔹 Pro Tip: Use credit application forms to document agreements and obtain a signed acknowledgment from clients. This strengthens your legal position if disputes arise later.

How to Get Started with Your Credit Policy

If you don’t have a formal credit policy yet, now is the time to put one in place. Here’s how to start:

📌 Step 1: Review your current payment processes—where are the biggest delays?
📌 Step 2: Identify your ideal client profile and set clear credit eligibility criteria.
📌 Step 3: Draft clear credit terms and document your payment & collections process.
📌 Step 4: Make it official—include your policy in contracts & onboarding documents.
📌 Step 5: Monitor, adjust, and enforce it consistently.

Struggling with Late Payments? We Can Help.

At Top Service, we’ve been helping construction businesses manage credit risk and recover unpaid invoices for over 30 years.

✅ Real-time trading experiences to identify high-risk customers before they become a problem.
✅ Industry-specific credit reports for smarter decisions.
✅ Debt recovery services to help you get paid—fast.

🔹 Need help setting up a strong credit policy? Get in touch today.
📞 Book a Free Consultation

Final Thoughts

A well-crafted credit policy is more than just a document—it’s a powerful tool that keeps you in control of your cash flow. It’s not just about getting paid; it’s about building a sustainable business with less risk and fewer payment headaches.

By taking a proactive approach to credit control, you can eliminate financial stress and focus on growing your business.

We are delighted to announce that Top Service Ltd has been awarded the Gold Award under the newly launched Fair Payment Code, introduced by the Small Business Commissioner in January.

As a company committed to supporting fair payment practices in the construction sector, we applied for the award on the day of its launch and are proud to now be officially recognised at the highest level.

The Fair Payment Code aims to improve payment culture and tackle late payments, a persistent challenge in the industry. While this is a positive step forward, we believe there is still work to be done. Greater awareness, adoption, and integration into business risk assessments will be key to ensuring the initiative has real impact.

Emma Reilly, CEO of Top Service Ltd, commented:

“This is a great step forward for the industry, but to truly transform payment culture, we believe fair payment practices should be made a legal obligation. We are proud to lead by example and champion positive change in the construction sector.”

We look forward to continuing our work in supporting suppliers and subcontractors with credit information, debt recovery, and risk management solutions – helping businesses navigate the challenges of the industry with confidence.

For more information on how we can support your business, contact us today.