UK SME Insolvency and Invoice Finance Demand Statistics 2026
There were 23,872 company insolvencies in England and Wales in 2024, 5% fewer than the 25,163 in 2023, which was the highest yearly total since 1993 (Insolvency Service). Most were creditors' voluntary liquidations. These are counts of insolvencies; no public source measures how many of these companies used, or were refused, invoice finance, so this page does not claim a link.
Key statistics
Company insolvencies registered in England and Wales in 2023, the highest yearly number since 1993. Source: Insolvency Service, Company Insolvency Statistics December 2024
Company insolvencies registered in England and Wales in 2024, 5% fewer than in 2023. Source: Insolvency Service, Company Insolvency Statistics December 2024
Share of 2024 company insolvencies that were creditors' voluntary liquidations (18,840). Compulsory liquidations were 14% (3,230) and administrations 7% (1,597). Source: Insolvency Service, Company Insolvency Statistics December 2024
Companies on the Companies House register that entered insolvency in 2024 (52.4 per 10,000), down from 57.2 per 10,000 in 2023. Source: Insolvency Service, Company Insolvency Statistics December 2024
Companies in England and Wales that entered insolvency in the 12 months from 1 October 2025 to 30 September 2026 (49.9 per 10,000 companies on the effective register). Source: Insolvency Service, company insolvency statistics September 2026 (read 3 November 2026)
Owed to UK businesses in late payments at any given time, on average £17,000 per business affected. Source: Department for Business and Trade and the Office of the Small Business Commissioner, late payments research (31 Jul 2025)
Businesses that close each year because of late payment, about 38 a day. Source: Department for Business and Trade and the Office of the Small Business Commissioner, late payments research (31 Jul 2025)
Bank of England base rate, last changed 5 November 2026. Most invoice finance discount charges are set as a margin over it. Source: Bank of England
| Metric | Value | Source |
|---|---|---|
| Company insolvencies, England and Wales, 2023 | 25,163 | Insolvency Service |
| Company insolvencies, England and Wales, 2024 | 23,872 | Insolvency Service |
| Companies entering insolvency, England and Wales, 12 months to 30 September 2026 | 1 in 200 (49.9 per 10,000) | Insolvency Service, September 2026 |
| Creditors' voluntary liquidations as a share of 2024 insolvencies | 79% (18,840) | Insolvency Service |
| Administrations, 2024 | 1,597 | Insolvency Service |
| Companies entering insolvency, 2024 | 1 in 191 | Insolvency Service |
| Owed in late payments at any given time | £26bn | DBT and Office of the Small Business Commissioner (2025) |
| Businesses closing each year because of late payment | 14,000 | DBT and Office of the Small Business Commissioner (2025) |
| Bank of England base rate | 4% | Bank of England |
Source: Insolvency Service, Department for Business and Trade and the Office of the Small Business Commissioner, Bank of England
View as plain-text Markdown
### Key figures | Metric | Value | Source | | --- | --- | --- | | Company insolvencies, England and Wales, 2023 | 25,163 | Insolvency Service | | Company insolvencies, England and Wales, 2024 | 23,872 | Insolvency Service | | Companies entering insolvency, England and Wales, 12 months to 30 September 2026 | 1 in 200 (49.9 per 10,000) | Insolvency Service, September 2026 | | Creditors' voluntary liquidations as a share of 2024 insolvencies | 79% (18,840) | Insolvency Service | | Administrations, 2024 | 1,597 | Insolvency Service | | Companies entering insolvency, 2024 | 1 in 191 | Insolvency Service | | Owed in late payments at any given time | £26bn | DBT and Office of the Small Business Commissioner (2025) | | Businesses closing each year because of late payment | 14,000 | DBT and Office of the Small Business Commissioner (2025) | | Bank of England base rate | 4% | Bank of England | Source: Insolvency Service, Department for Business and Trade and the Office of the Small Business Commissioner, Bank of England
What the numbers mean
Company insolvencies in England and Wales reached their highest level since 1993 in 2023. They fell slightly in 2024, mainly because there were fewer creditors' voluntary liquidations, while compulsory liquidations rose to their highest level since 2014 (Insolvency Service).
Government-backed research puts the number of businesses closing each year because of late payment at 14,000. Invoice finance deals with one part of that problem: the wait between sending an invoice and being paid. It does not fix a business that is losing money, and it can be withdrawn if a lender is worried.
This page used to show further figures, such as a 73% liquidation share, 4,076 administrations and several survey figures, that did not match the Insolvency Service's own release or that we could not find in the linked sources. We have corrected or removed them.
FAQs
Does invoice finance reduce the risk of insolvency?
It can help with one cause, waiting to be paid, by releasing cash tied up in unpaid invoices. It does not make an unprofitable business viable, and it adds a cost. Government-backed research links late payment to 14,000 business closures a year.
How does the base rate affect the cost of invoice finance?
Most discount charges are set as a margin over the Bank of England base rate, plus a service charge. The margin is agreed with each lender, and most lenders do not publish it, so you need a quote.
What is the difference between a creditors' voluntary liquidation and administration?
In a creditors' voluntary liquidation the directors decide the company cannot pay its debts and appoint an insolvency practitioner to close it. Administration is used when the business might be rescued or creditors might get more back. In 2024, 79% of company insolvencies were creditors' voluntary liquidations and 7% were administrations (Insolvency Service).
How can I check an invoice finance provider?
Look the company up at Companies House. Invoice finance for limited companies is generally not regulated by the FCA, so many providers have no FCA entry for it; if a provider says it is authorised, check the FCA Register.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam was managing director of Penny, a UK invoice finance business, from July 2020 to November 2023. His career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library. Career record.
Published · Last updated