We are delighted to share that in the last 12 months, our efforts through our debt recovery services have resulted in successfully collecting over £100 million for our members of the construction industry. 

This milestone is a testament to our commitment to professionally representing our members in a collections capacity, our drive to achieve results and the hard work & expertise of our team.

Our Approach to Debt Recovery

We approach debt recovery with a drive to achieve results, efficiency and expertise, this in combination with a team of skilled collectors with a proactive approach to collections, our construction industry expertise & using our industry specific credit information, has resulted in significant collections made for our members. 

We understand that trading relationships can be delicate and the subject of debt recovery can be a sensitive topic, this is why our approach in collecting your overdue balance will change depending on your trading relationship. 

Every case passed to us is unique and this is why our teams are not scripted and will work with you to create a bespoke collection strategy suited to your case. 

Our debt recovery services have no collection no fee, so if we are unsuccessful in collecting your overdue balance, there is no commission to be paid. 

Speak with one of our team members today on 01527 503990 to find out more about our debt recovery services.

The Insolvency Service has released the latest statistics for August 2024, offering key insights into the state of insolvency in the UK. These figures are essential for businesses looking to understand the current economic climate and adapt accordingly.

Key Highlights for August 2024:

• Total Company Insolvencies:
  There were 1,953 company insolvencies, representing a 9% decrease from July 2024, and a 15% decrease from August 2023.
• All types of company insolvency were lower in August 2024 compared to July 2024.

Breakdown of Insolvency Types:

• Creditors’ Voluntary Liquidations (CVLs):
  • 1,542 cases, down 7% from July 2024.
  • While showing a monthly drop, CVLs remain the dominant form of company insolvency.
• Compulsory Liquidations:
  • 279 cases, a 12% decrease from July 2024, but 6% higher than August 2023.
• Administrations:
  • 112 cases, a significant 25% decrease from July 2024.
  • This sharp decline suggests fewer companies opted for administration in August.
• Company Voluntary Arrangements (CVAs):
  • 20 cases, marking a 20% decrease from the previous month.

Yearly Comparison of Insolvency Types (August 2023 vs August 2024):

• Overall Insolvencies:
  August 2024 saw 333 fewer cases than August 2023, reflecting a 15% decline.
• Year-on-Year Insolvency Trends:
  • Compulsory Liquidations: Increased by 6%.
  • Creditors’ Voluntary Liquidations: Decreased by 15%.
  • Administrations: Dropped by 40%, indicating a significant reduction in this type of insolvency.
  • Company Voluntary Arrangements (CVAs): Surged by 82%, highlighting a growing preference for structured recovery agreements.

Month-on-Month Comparison (July to August 2024):

• Overall Insolvency Figures:
  August 2024 saw a 9% decline in insolvencies compared to July 2024, with 191 fewer cases.
• Month-on-Month Changes by Type:
  • Compulsory Liquidations: Down 12%.
  • Creditors’ Voluntary Liquidations: Down 7%.
  • Administrations: Down 25%.
  • Company Voluntary Arrangements (CVAs): Down 20%.

Insolvency Rate:

Between 1 September 2023 and 31 August 2024, one in 180 companies on the Companies House effective register entered insolvency. This equates to 55.5 per 10,000 companies, slightly higher than the rate of 55.4 per 10,000 for the same period in the previous year.

We encourage all credit management teams across the industry to stay vigilant and seek out the most valuable tools and information available. To learn more about how we can help you minimise risk and maximise cash flow, call in to speak with one of our experts today on 01527 518800.

In the world of construction, where timelines stretch over months and sometimes years, managing cash flow can be a challenge. One of the most overlooked aspects in this arena is the retention fund—a small but significant percentage of the contract value held back by the main contractor. This practice, while common, often leads to large sums of money being left unclaimed, simply because it’s not a priority. But what if we told you that these retention funds could be the hidden gem in your finances?

Understanding Retention

Retention is a percentage, typically between 1.5% and 5% of the contract value, that the main contractor withholds to ensure that any defects in the work can be rectified before the final payment is made. Half of this retention is usually released upon the satisfactory completion of the project, while the remaining 50% is held back until the end of the maintenance period—a time frame that can stretch beyond 12 months after project completion.

The idea behind retention is simple: it provides a financial safety net for the contractor, ensuring that any post-completion issues are resolved before the final payment is made. However, for many in the industry, chasing these funds can be a tedious and time-consuming process, often resulting in the money being forgotten or deprioritised.

The Cost of Forgetting Retention

Retention funds may only represent a small percentage of the total contract value, but when multiplied across several projects, they can add up to a substantial amount. The problem is, many businesses simply don’t have the time or resources to follow up on these payments, especially when the maintenance period can stretch over a year.

This delay in collecting retention can have significant impacts on a company’s cash flow and overall financial health. With construction margins already tight, leaving money on the table can mean the difference between a profitable year and a financial struggle.

A Specialist Approach to Retention Collection

Recognising the challenges that many construction companies face in collecting retention, our team of specialists offers a service designed to take the hassle out of the process. With over 30 years of experience in the construction industry, we understand the intricacies of these contracts and have developed a streamlined approach to ensure that our clients receive what they’re owed.

Our “No Collection, No Fee” model means that we only take a commission—25%—when we successfully recover your funds. This risk-free approach has been a game-changer for many businesses, allowing them to focus on their core operations while we handle the complex task of retention recovery.

Don’t Let Retention Slip Through the Cracks

In an industry where every penny counts, retention is an untapped resource that too many businesses overlook. By actively managing and collecting these funds, construction companies can unlock a valuable source of revenue that can improve cash flow and support ongoing operations.

If you’ve been putting off chasing retention payments, now is the time to act. With the right support, you can ensure that this hidden gem in your finances doesn’t go unclaimed.

For more information on how we can help with retention collection, contact us today.

It’s no secret that the surety market has hardened and we are currently experiencing a contraction of capacity, restriction of acceptable wordings and underwriters, and their reinsurers, are being far more risk adverse than previously. 

With this in mind, we spoke to our friends over at Attis Credit Solutions about the impact the changes in the market are having. 

There have been significant market failures within the construction sector and some sizable bonds called over the last twelve months.

Increasing inflationary pressures, a general lack of liquidity, material and labour shortages, fallout from the covid pandemic and continued implications of BREXIT, all have a part to play in the spike in construction insolvencies we have recently seen. 

As published in a number of articles recently, due to the adverse sector conditions QBE and First Underwriting have made the decision to stop providing capacity into the construction sector, adding to the temporary lack of overall capacity. 

Despite the above challenges Surety bonds continue to be an attractive alternative to guarantees issued by a bank, especially relevant, considering banks often take a secured position and ringfence funds to the aggregate value of the guarantees issued. A surety is unsecured, freeing up working capital to use for growth and development.  

Positively, QBE can still be accessed via the Evolution MGA, and we have seen two new market entrants in the past 24 months, actively writing construction. We are also expecting new market entrants writing construction in the short to midterm on strongly rated paper – it’s not all doom and gloom!

Considering the challenges currently facing the surety market it is of paramount importance to ensure you have a specialist surety broker who is proactive, forward thinking and maximises the potential of the surety market to gain you competitive advantage. 

Emma Reilly, CEO at Top Service Ltd adds:

Whilst surety bonds remain an attractive option for large projects they nor other credit insurance options entirely replace the need for robust and effective credit management practices and tools. In the right circumstances, surety and trade credit insurance work extremely well when coupled with the right credit information and recovery options. 

It remains of paramount importance that suppliers to the construction industry understand who they are dealing with, the risks associated with who they are dealing and how the potential failures of their customers, customers can impact the trading relationships. 

Remaining vigilant and reacting quickly to critical financial changes, leadership changes and changes in payment patterns to other suppliers should remain top of the list to support businesses with minimising debt and maximising cash. 

Insights from the latest insolvency statistics released by The Insolvency Service for July 2024. These figures offer a valuable look at the current insolvency landscape in the UK and can help your business navigate these challenging times.

Key Highlights from July 2024:

Total Company Insolvencies: There were 2,191 company insolvencies in July 2024, reflecting a 7% decrease from June 2024, but a 16% increase from July 2023.

Types of Insolvencies:

• Creditors’ Voluntary Liquidations (CVLs): 1,691 cases, down 9% from June 2024, but still making up 77% of all insolvencies.
• Compulsory Liquidations: 320 cases, the highest monthly number since August 2018, up 5% from June 2024, and 27% higher than July 2023.
• Administrations: 155 cases, marking a 10% decrease from June 2024.
• Company Voluntary Arrangements (CVAs): 25 cases, up 9% from the previous month.

Month-on-Month Comparison:

Company insolvency numbers in July 2024 were lower than in June 2024.

📅 In July 2024, there was an 7% decrease in insolvency cases compared to June 2024, marking a decrease of 172 cases.

Month-on-Month Changes in Insolvency Types (June to July Comparison):

• 🚫 Compulsory Liquidations: Increased by 5%
• 📈 Creditors’ Voluntary Liquidations: Decreased by 9%
• 🏢 Administrations: Decreased by 10%
• 📄 Company Voluntary Arrangements: Increased by 9%

Yearly Comparison of Insolvency Types:

📈 Comparing July 2024 with the same month in the previous year reveals a notable increase. There’s been a 16% increase in insolvency cases, with July 2024 witnessing 301 more cases than July 2023.

Changes in Insolvency Types Year on Year:

• 🚫 Compulsory Liquidations: Increased by 27%
• 📈Creditors’ Voluntary Liquidations: Increased by 15%
• 🏢 Administrations: Increased by 6%
• 📄 Company Voluntary Arrangements: Increased by 32%

🔍 The decrease in overall insolvencies month-on-month may seem encouraging, but the significant increase in compulsory liquidations signals the importance of remaining vigilant. With the right tools and strategies, you can minimise risk and safeguard your business’s cash flow.

For tailored advice on how to navigate these trends and protect your business, our team of experts is ready to assist you. Contact us today at 📞 01527 518800 to learn more about how we can support your credit management efforts.

A Winding-Up Petition can significantly impact a company, especially with the rising number of Compulsory Liquidations. It’s crucial to grasp the processes, risks, and consequences involved.

In our final installment, we shed light on the public visibility of winding-up petitions and their implications.

Special thanks to Alison Beard and our partners at Silverback Commercial Law Services Limited for their invaluable support throughout this series. Together, we’re empowering businesses with essential legal insights.

A Winding-Up Petition can have a detrimental impact on a company and with the number of Compulsory Liquidations rising it’s important to understand the processes, risks and consequences of Winding-Up Petitions, we explain these below.

Special thanks to Alison Beard at Silverback Commercial Law Services Limited Law for their support.

In this series we explore the outcomes of petition hearings, starting with scenarios where petitions are dismissed or rescinded.

Join Emma Reilly FCICM and Alison Beard from Silverback Commercial Law Services Limited as they continue to delve into winding-up petitions, outlining the process and consequences of potential compulsory liquidation.

In this installment of our series, we continue to explore petition hearing outcomes. Join us as we delve into adjourned and withdrawn petitions and their impact on the winding-up process

A Winding-Up Petition can have a detrimental impact on a company and with the number of Compulsory Liquidations rising it’s important to understand the processes, risks and consequences of Winding-Up Petitions, we explain these below.

Join our CEO Emma Reilly FCICM and Alison Beard from Silverback Commercial Law Services Limited Law as they discuss the process to support and how to navigate them effectively.

A Winding-Up Petition can have a detrimental Impact on a company and with the number of Compulsory Liquidations rising it’s important to understand the processes, risks and consequences of Winding-Up Petitions, we explain these below.

Part 3 of our series explores the cost implications of winding-up petitions and the procedural journey involved.

Special thanks to Alison Beard at Silverback Commercial Law Services Limited Law for their support.