The latest insolvency data for April 2025 has just landed – and while there’s a slight dip from last year, signs of strain are still evident, especially in the construction industry.

2,053 companies entered insolvency across England and Wales – a 3% increase from March, but 5% lower than April 2024. While numbers have eased slightly compared to 2023’s 30-year high, overall volumes remain well above historical averages.

Breakdown of April 2025 Company Insolvencies:

• 1,544 Creditors’ Voluntary Liquidations (CVLs)
  
• 379 Compulsory Liquidations (the highest monthly figure since 2014)
  
• 105 Administrations
  
• 24 Company Voluntary Arrangements (CVAs)
  
• 1 Receivership
  

The 12-month rolling insolvency rate now sits at 52.5 per 10,000 companies, or 1 in every 190 businesses – a notable improvement from last year, but still cause for caution.

Construction: Still Top of the Insolvency Table

Once again, construction tops the list of hardest-hit sectors, with 4,111 company failures in the 12 months to March 2025 – 17% of all insolvencies with known industries.

This persistent trend reflects the tough environment many in the industry are navigating:

• Materials and labour remain costly, and project delays continue to wreak havoc on cash flow.
  
• Employer National Insurance rises have added to overheads, especially hitting smaller firms.
  
• And while some indicators (like interest rates) are showing signs of improvement, construction businesses are still under heavy pressure to maintain financial stability.
  

Our Take

We’re seeing more firms caught off guard – not necessarily due to bad management, but because warning signs are missed or action is taken too late. It’s no longer enough to simply “keep an eye on things.” Construction companies need to be more proactive than ever.

What You Can Do Next

In uncertain times, credit control becomes one of your strongest defences. We recommend:

• Monitoring your ledger for signs of payment stress – late payers are often the first signal something’s not right.
  
• Chasing overdue invoices quickly and consistently – don’t let cash slip through the cracks.
  
• Using professional support – our recovery team at Top Service knows construction. We’re specialists in securing payment quickly, professionally, and effectively.
  

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

Administration confirmed: 15th May 2025

At Top Service, our trading experiences tell a story — and when enough chapters are written, our members take action. Here’s how we supported them through the Corbyn Construction collapse:

Early Warning Signs Detected

• Over 100 adverse trading experiences reported: late payments and non-payments.
• Corbyn added to our Exclusive Watch List in early 2023.
• By August 2023, it appeared on both our most adverse experiences list and most viewed companies list.
• While generic agencies were still offering credit limits as late as 7 May 2025, Top Service removed its credit limit on 9 November 2024 — for the second time.

Administration Timeline

• Nov 2024 – Corbyn files a notice of intention to appoint administrators
• Groundworks and concrete frame specialist with £32.8m turnover and just £436k profit (year ending June 2023)
• 12 CCJs totalling £122,152 prior to collapse
• Administration confirmed: 15 May 2025

Results for Our Members

Top Service were instructed in a third party capacity and collected over £1.3 Million.

This is why construction suppliers rely on Top Service.

We provide real-time intelligence, sector-specific insights, and proactive alerts that help you spot risk early and take informed action.

If you’re a construction supplier relying on generic credit data, you could be left exposed.

Our service is built exclusively for the construction industry — and the results speak for themselves.

🛠️ Talk to us about how we help you trade safely.

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