New measures proposed to tackle late payments to small businesses
May 13th 2026The government has announced a package of reforms aimed at tackling late payments to small businesses, including new enforcement powers, mandatory interest on overdue invoices and limits on how long larger companies can take to pay their suppliers. Carly Davies, our Debt Recovery Manager provides an update. The changes would give the Small Business Commissioner new authority to investigate payment practices, resolve disputes and impose financial penalties on companies that repeatedly pay…
New crackdown on directors trying to avoid their company debts
January 20th 2026The Insolvency Service is setting up a new team to tackle rogue directors who try to avoid paying their company debts. Carly Davies, our Debt Recovery Manager, reports. The Abusive Phoenixism Taskforce will have a staff of 50 people to investigate suspicious company insolvencies. It will have a budget of £25m. The service’s Director of Investigation and Enforcement Services, Dave Magrath, said: “This is welcome funding which will help the Insolvency Service tackle rogue directors…
Avoid cash flow problems – set clear Credit Terms from day one
December 2nd 2025Late payment is one of the most common causes of financial stress for businesses. A company can be profitable on paper but still struggle if cash is not arriving in time to meet wages, rent and supplier invoices. For many firms, the difference between stability and insolvency lies in how effectively they manage credit. The first step is ensuring that payment terms are set out clearly from the very start.…
Directors ordered to pay £1m for defending hopeless insolvency petition
July 16th 2025Two company directors have been ordered to personally pay the costs of a creditors’ petition to wind up their firm, after the High Court found they pursued a speculative and self-interested defence they did not believe in. Carly Davies, our Debt Control Manager, reports on this recent case. Mrs Justice Joanna Smith ruled that Paul Hilton and Matthew Welsh, directors of MPB Developments Ltd, were the “real parties” behind the company’s failed…
Directors banned for accepting orders that could not be fulfilled
March 31st 2025A husband-and-wife team have been banned from being directors after their struggling furniture company accepted orders from customers that could not be fulfilled. Carly Davies, our Debt Control Manager, reports. George and Williamina Hay were directors of DWH Trading Ltd, which sold adjustable beds and chairs, mostly to elderly and vulnerable customers. The company was struggling financially by April 2023 but continued to take orders and payments from customers in the following…
New pledge to crack down on late payments to small businesses
October 16th 2024The government has pledged to support small businesses and the self-employed by tackling what it calls “the scourge of late payments”. Rob Winder Senior Associate Chartered Legal Executive in our Dispute Resolution team provides an update. Delays to payment of invoices cost small businesses £22,000 a year on average and lead to 50,000 closures a year. The government is now consulting on tough new laws designed to hold larger firms to account. In…
Company insolvencies higher now than during Covid pandemic
September 9th 2024The number of company insolvencies in July was higher than any month during the Covid pandemic, according to the latest figures from the Insolvency Service. Carly Davies, our Debt Control Manager provides an update. After seasonal adjustment, the number of registered company insolvencies in England and Wales in July 2024 was 2,191. That was 16% higher than the same month in the previous year (1,890 in July 2023). The number of company…
Corporate insolvencies increase by more than 60% in two years
January 3rd 2024The number of corporate insolvencies has increased by more than 60% over the last two years, according to the latest figures from the Insolvency Service. Carly Davies, our Debt Control Manager provides an update. They increased by 17.6% in October 2023 to a total of 2,315 compared to September’s total of 1,969, and increased by 18.5% compared to October 2022’s figure of 1,954. The increase was 64.2% from October 2021’s total of…
New measures to help small businesses tackle late payments
November 8th 2023The Government has announced a new set of measures to help small businesses tackle the issue of late payments. Carly Davies, our Debt Control Manager provides an update. The measures will be included in the upcoming Prompt Payment & Cash Flow Review and are designed to improve delivery and enforcement of policies, enabling more small businesses to get paid on time. Late payment of invoices and long payment terms are key issues…
Debt collection methods to ensure your business gets paid
July 6th 2023Debt collection and credit control can be a challenge for any business. Yet failure to deal swiftly and effectively with debtors can threaten your viability and put your future and the future of your employees at risk. Carly Davies, our Debt Control Manager, reports. Here are some of the key approaches to ensuring prompt payment. Negotiation This is the obvious first step. It requires frank communication with the debtor to discuss the…
