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 Information from our members was leading us to believe that the petition was due to be withdrawn (paid and not taken to the hearing date) which I advised Stuart of.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of days later, while Stuart was considering his options, we contacted him with an urgent update: the petition had been withdrawn that day.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.

The latest data on company insolvencies for January 2025 reveals a continuing trend of high insolvency numbers, despite a slight decrease from the record levels of 2023. The construction industry has been particularly affected, continuing to report the highest number of insolvencies across all sectors. Below is a detailed analysis of the insolvency landscape, with a focus on construction.

Overall Numbers and Trends

There were 1,971 company insolvencies in January 2025, marking a 6% increase from December 2024 (1,852) and an 11% rise compared to January 2024 (1,780). Although insolvencies remain high relative to historical levels, they are slightly lower than in 2023, which saw a 30-year peak.

The breakdown of insolvencies includes:

• 269 compulsory liquidations
• 1,546 creditors’ voluntary liquidations (CVLs)
• 142 administrations
• 14 company voluntary arrangements (CVAs)
• No receivership appointments

The rate of insolvency for the 12 months ending January 2025 was 52.6 per 10,000 companies, indicating that one in 190 companies entered insolvency during this period. 

Construction Industry at the Forefront of Insolvencies

The construction sector has been particularly hard-hit, accounting for 17% of all company insolvencies in 2024, with 4,032 firms going under. A combination of economic pressures and industry-specific challenges have intensified financial strain, leading to a rise in insolvencies. 

Breakdown by Insolvency Type

• Creditors’ Voluntary Liquidations (CVLs): Accounted for 78% of all insolvencies in January 2025. CVLs increased by 9% from December 2024 and were 14% higher than January 2024.
• Compulsory Liquidations: Decreased by 5% from December 2024 and 5% from January 2024.
• Administrations: Increased by 10% from December 2024 and 9% from January 2024.
• Company Voluntary Arrangements (CVAs): Declined by 13% from January 2024 and 18% from December 2024.
• Receivership Appointments: None were recorded in January 2025, continuing the trend of extremely low numbers in recent years.

Moratoriums and Restructuring Plans

Only one moratorium was registered in January 2025, and no restructuring plans were recorded. Since the introduction of these procedures in 2020, a total of 50 moratoriums and 26 restructuring plans have been registered at Companies House.

Conclusion

While the number of company insolvencies remains high, the figures for January 2025 suggest a mixed picture. The decline in compulsory liquidations and continued rise in CVLs reflect ongoing economic challenges. However, the construction sector remains a key area of concern, with persistent financial pressures leading to the highest number of insolvencies across all industries.

Looking ahead, the recent interest rate reduction offers a glimmer of hope for the construction sector, potentially easing financing conditions and improving demand in the housing market. However, the full impact will depend on broader economic trends, inflation levels, and the confidence of investors and developers.

For businesses in construction and beyond, proactive financial management and reacting to early warning signs remain crucial in navigating uncertain economic conditions.

We invite credit management teams across industries to make the most of the tools and services we offer:

Through our up to the minute trading experiences you can actively monitor payment patterns and the financial health of your customers and customer customers to stay ahead of potential issues.

Take advantage of our services to optimise cash flow management and effectively mitigate risks.

For tailored advice on overcoming financial challenges, contact us at 01527 503990.

HMRC interest rates for late payments will be revised following the Bank of England interest rate cut to 4.5%. The Bank of England Monetary Policy Committee announced on 6 February 2025 to reduce the Bank of England base rate to 4.5% from 4.75%.

HMRC interest rates are linked to the Bank of England base rate.

As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will reduce.

These changes will come into effect on:

• 17 February 2025 for quarterly instalment payments
• 25 February 2025 for non-quarterly instalments payments

You can find further Information on the interest rates for payments here.

How HMRC interest rates are set:

HMRC interest rates are set in legislation and are linked to the Bank of England base rate.

Late payment interest is currently set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.

The differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits.

The rate of late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time, while the rate of repayment interest fairly compensates taxpayers for loss of use of their money when they overpay.

The Bank of England’s recent decision to cut the base interest rate from 4.75% to 4.5% in February 2025 aims to stimulate economic activity amid concerns over stagnation. This move is expected to have several implications for the UK construction industry.

Positive Impacts:

1. Reduced Borrowing Costs: Lower interest rates can decrease the cost of financing for construction projects, potentially encouraging investment in new developments. This reduction in borrowing costs may make long-term investments in construction more attractive, leading to increased project initiations.
2. Improved Housing Affordability: Decreased interest rates can enhance housing affordability by lowering mortgage rates, which may boost demand for new residential construction. This uptick in demand could incentivise builders to initiate more housing projects.

Challenges and Considerations:

1. Delayed Recovery in Housing Sector: Despite the rate cut, the construction industry, particularly the housing sector, may not experience immediate benefits. The Construction Products Association predicted a 2.9% decline in output for 2024, with recovery anticipated in 2025 as interest rate cuts take fuller effect and consumer confidence strengthens.
2. Persistent Inflation and Material Costs: The Bank of England projects that inflation will temporarily rise to 3.7% in 2025 before returning to the 2% target. Elevated inflation can lead to increased costs for construction materials and labour, potentially offsetting the benefits of lower borrowing costs.
3. Sector-Specific Variations: While commercial and civil engineering projects have shown resilience, the residential construction sector has faced challenges due to previous high borrowing costs and economic uncertainty. The recent rate cut may gradually improve conditions, but a cautious approach from investors and developers could persist in the near term.

In summary, the recent interest rate reduction by the Bank of England is poised to provide some relief to the construction industry by lowering financing costs and potentially stimulating demand. However, the extent of its positive impact will depend on factors such as inflation trends, material costs, and the pace at which consumer and investor confidence recovers.