Short answer: Before you chase a Ltd, LLP or PLC that has stopped paying, check whether it is heading for insolvency. Late or missing filings at Companies House, strike-off notices, new lender charges, other creditors' judgments and repeated broken promises are warning signs. Act fast while the company is still trading: once liquidation or administration starts, normal collection stops and you become an unsecured creditor.
An invoice that goes unpaid for a few weeks is a credit control problem. An invoice that goes unpaid because the customer is running out of money is a race. The creditors who notice the warning signs early, and push for payment with clear evidence, are the ones most likely to be paid before formal insolvency stops everything. This guide lists the signs to look for, the public checks you can run in a few minutes, what each insolvency procedure does to your claim, and what to do next.
This guide is general information for UK businesses, not legal or insolvency advice. Statutory references were checked on legislation.gov.uk on 22 October 2026. Primary reading: the Insolvency Act 1986, the Companies House register and insolvency notices in The Gazette. Speak to a licensed insolvency practitioner or solicitor if you are owed a large sum by a company that may be insolvent.
Warning signs in how the customer pays
- Payment dates keep slipping. A customer that used to pay on 30 days now pays at 60 or 90, or only after several reminders.
- Promises are broken. “The payment run is on Friday” becomes a pattern rather than a one-off.
- Round-sum part payments. Small, irregular amounts against a large balance, often with no remittance advice.
- New disputes appear late. Queries about work accepted months ago can be a way to buy time; see disputed commercial invoices.
- Requests for longer terms or a payment plan out of the blue, or a cheque or bank transfer that fails.
- Contact goes quiet. The finance contact leaves, the phone is not answered, or the director stops replying.
Warning signs on the public record
Most of these can be checked on the Companies House register and in The Gazette in a few minutes.
| Where to look | What to look for | Why it matters |
|---|---|---|
| Companies House: status | Anything other than “Active”, such as “Liquidation”, “Administration”, “Voluntary arrangement” or “Active – proposal to strike off” | Formal insolvency or strike-off changes how, or whether, you can recover |
| Companies House: filing history | Accounts or confirmation statement overdue. A private company must file accounts within 9 months of its year end (Companies Act 2006, s.442) | Late filing often goes with financial strain and can lead to strike-off action |
| Companies House: charges | New charges registered to lenders or invoice finance providers | Secured lenders are paid from charged assets before unsecured creditors like you |
| Companies House: officers | Several directors resigning, or a change of registered office to an insolvency practitioner's address | Can signal that the company is preparing for an insolvency process |
| The Gazette | A winding-up petition, a notice of a meeting of creditors, a moratorium, or a first notice of strike-off | These are formal steps that affect all creditors |
| Register of judgments | County Court Judgments from other creditors | Shows other suppliers are already having to sue; see can a company survive a CCJ |
Also check you have the right legal entity. If your invoice is addressed to a trading name, confirm which registered company actually owes you; see recovering unpaid invoices from a limited company.
What each insolvency procedure does to your claim
| Procedure | Effect on creditors |
|---|---|
| Part A1 moratorium | A short breathing space for a company trying to rescue itself. Section A21 of the Insolvency Act 1986 restricts enforcement and legal proceedings without court permission while it lasts. |
| Administration | Paragraph 43 of Schedule B1 stops legal process against the company without the administrator's consent or the court's permission. You claim through the administrator. |
| Company voluntary arrangement (CVA) | Creditors vote on a proposal to pay part of what is owed over time. If approved, it binds the creditors entitled to vote, even those who voted against. |
| Compulsory liquidation | After a winding-up order or appointment of a provisional liquidator, section 130(2) stops actions against the company without court permission. Payments made by the company after the petition was presented can be void under section 127. |
| Creditors' voluntary liquidation | The directors and shareholders put the company into liquidation. You submit a proof of debt to the liquidator and share in any dividend as an unsecured creditor. |
| Strike-off | The company is removed from the register and stops existing. Debts are very hard to recover unless the company is restored. |
Unsecured trade creditors are usually paid only after the costs of the procedure, preferential creditors and secured lenders, so the dividend may be small or nothing. That is why acting before formal insolvency matters.
What to do when you see the signs
- Stop extending credit. Pause further supplies on account, or move the customer to payment in advance, so the debt does not grow.
- Get your evidence together now. Contract or order, signed delivery notes or timesheets, the invoice and any written acceptance; see the proof of debt checklist. You will need the same documents for a proof of debt if the company does fail.
- Check for extra security. A director's personal guarantee or a retention of title clause over goods you supplied may give you a route that does not depend on the company.
- Escalate quickly and in writing. Send a final demand and a letter before action with short, firm deadlines rather than waiting another month.
- Consider instructing a collection partner while the company is still trading, for an undisputed debt owed by a Ltd, LLP or PLC.
- Watch the record. Recheck Companies House and The Gazette. If a first strike-off notice appears, you can object to Companies House before the notice period ends.
Statutory demands and winding-up petitions
Under section 123 of the Insolvency Act 1986, a company is deemed unable to pay its debts if a creditor owed more than £750 serves a statutory demand at its registered office and the company does not pay or settle within 3 weeks, or if enforcement of a judgment is returned unsatisfied. That can support a winding-up petition. It is a serious step, it should only be used for a debt that is not genuinely disputed, and it can push a company into liquidation where you end up as one unsecured creditor among many. See statutory demands for B2B debt and take advice before using one.
If formal insolvency has already started
Find the insolvency practitioner's details on the Companies House filing history or in the Gazette notice, submit your claim with the supporting documents, and keep copies. If you supplied goods on retention of title terms, tell the practitioner straight away. If you have not had VAT on the invoice back, read VAT bad debt relief. A collection partner cannot pursue a company in formal insolvency in the usual way.
Frequently asked questions
What are the main signs a customer company is going insolvent? Common signs are payments that keep slipping, broken promises to pay, part payments with no explanation, a new request for longer terms, overdue accounts or confirmation statements at Companies House, a first Gazette notice for strike-off, new charges registered by lenders, director resignations and County Court Judgments from other creditors. None proves insolvency on its own, but several together mean you should act quickly.
How can I check if a limited company is insolvent? Search the company on the Companies House register to see its status, filing history, overdue filings, charges and officers, and search the insolvency notices in The Gazette for winding-up petitions, liquidations and administrations. A status of liquidation, administration or a voluntary arrangement means formal insolvency has started.
Can I still collect a debt from a company in liquidation? Usually not in the normal way. Once a winding-up order is made or a provisional liquidator is appointed, section 130(2) of the Insolvency Act 1986 stops legal action against the company without the court's permission. You would normally submit a proof of debt to the liquidator and share in any dividend as an unsecured creditor.
What happens to my invoice if the company goes into administration? Paragraph 43 of Schedule B1 to the Insolvency Act 1986 puts a moratorium in place, so no legal process can be started or continued against the company without the administrator's consent or the court's permission. Send your claim to the administrator and keep your invoice, contract and delivery evidence ready.
What is a company moratorium under Part A1? It is a short breathing space, introduced by the Corporate Insolvency and Governance Act 2020, during which a struggling company is protected from most creditor action while it tries to rescue itself. Section A21 of the Insolvency Act 1986 restricts enforcement and legal proceedings while it lasts. The moratorium is publicised, so check the Gazette and the company's filings.
Should I wait before chasing a customer that seems to be struggling? Generally no. If a company is heading for insolvency, creditors who act early and with clear evidence are more likely to be paid before formal insolvency starts. Waiting usually makes recovery less likely, not more.
Can I object if a debtor company is being struck off? Yes. When Companies House publishes a first notice of intended strike-off in the Gazette, a creditor can object to Companies House before the notice period ends. Striking off ends the company's existence, so an unpaid debt becomes much harder to recover.
Can your partner take on a debt where the company is already in liquidation? Normally no. Once formal insolvency has started the collection partner cannot pursue the company in the usual way, and you would claim through the insolvency practitioner instead. We are an introducer, not solicitors or an FCA-authorised firm. Where a debt is accepted, the fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.
If a Ltd, LLP or PLC customer is showing the warning signs but is still trading, do not wait. Upload the invoice via corporate debt recovery or read how business debt collection works. The fee is 15% of what is recovered, payable only when you have been paid. Recovery is not guaranteed.