The construction industry experienced the highest number of insolvencies in the 12 months to May 2025, accounting for 17.2% of all insolvencies in England and Wales, according to the Insolvency Service. By rough comparison, construction firms accounted for 14% of all registered businesses in the UK in 2024. 

 

 

The total number of construction firms becoming insolvent in the 12 months to the end of May 2025 was 4,056. This was a 5.8% decrease on the 4,305 insolvencies recorded in the year to May 2024, and a 26.0% increase on the 3,218 in pre-pandemic 2019.

 

The importance of knowing your customers before offering credit terms is therefore crucial for your business in managing cashflow.

 

Contact us on 01604 217333 or visit www.creditassist.co.uk to obtain the most accurate failure risk ratings and credit limits, along with most reliable company payment behaviour data available in the UK.