Company insolvencies in August 2026: what the figures mean for your cash flow

This article is for business owners who want to know how many companies are failing, which sectors are most affected and what that means for their own cash flow. The Insolvency Service publishes company insolvency figures every month. The latest, released on 18 September 2026, cover August. Below we set out what they show and the practical steps to protect your business. Smart Funding Solutions is a broker, not a lender: we compare whole-of-market options across 300+ lenders, arranging funding from £10,000 to £20 million.

01The headline figures for August 2026

According to the Insolvency Service commentary for August 2026, there were 1,946 registered company insolvencies in England and Wales in August. That was:

• 1% higher than July 2026, when there were 1,934.
• 3% lower than August 2025, when there were 2,007.

Over the 12 months to August 2026, the insolvency rate was 50.1 per 10,000 companies, or about one in 200, down from 52.5 in the 12 months to August 2025. In Scotland there were 73 company insolvencies in August, 23% fewer than a year earlier, and in Northern Ireland there were 7, 42% fewer.

02Which types of insolvency rose and fell

The total hides some sharp moves between the different procedures in England and Wales:

• Creditors' voluntary liquidations (CVLs): 1,431, down 4% on July and 9% on August 2025. CVLs, where directors choose to close an insolvent company, remain by far the most common route.
• Compulsory liquidations: 314, up 8% on July and 5% on a year earlier. These are usually started by a creditor, such as HMRC, petitioning the court.
• Administrations: 182, up 44% on July and 60% on August 2025. The Insolvency Service put this down to more than 250 connected companies in the real estate sector entering administration.
• Company voluntary arrangements (CVAs): 19, down 14% on July.

The rise in compulsory liquidations matters because it reflects creditors chasing debts through the courts. If you are behind with HMRC, it pays to act early. Our guide to Time to Pay versus a tax loan compares the two main ways to spread a tax bill.

03Which sectors are most affected

Over the 12 months to August 2026, the sectors with the most insolvencies in England and Wales were:

• Construction: 3,866 cases, 17% of those with an industry recorded, down 2% on the previous 12 months. See construction finance.
• Wholesale and retail trade, and motor repair: 3,395 cases, 15%, the largest fall among the major sectors at 9%. See retail business loans.
• Accommodation and food services: 3,201 cases, 14%. See hospitality business loans.

Administrative and support services, professional services and manufacturing followed. The Insolvency Service noted that most sectors saw fewer insolvencies than in the previous 12 months.

£600,000A transaction we arranged£600K arranged, then another £400K as the business grew.A fast-scaling national training provider needed £600,000. Further funding followed as it grew, including a £400,000 facility.

04What the figures mean for your cash flow

Insolvency figures matter even if your own business is healthy. When a customer fails, the invoices it owes you may never be paid in full, and that can put pressure on your own ability to pay staff and suppliers. A few steps reduce the risk:

• Check new customers' credit before offering terms, and review long-standing ones regularly.
• Watch for warning signs, such as a customer that starts paying later, asks for longer terms or disputes invoices it used to pay.
• Do not let one customer become too large a share of your sales. Concentration makes a single failure far more damaging.
• Keep a cash flow forecast that shows the effect of a big customer paying late or not at all. Our guide to cash flow forecasts shows how lenders read them too.

Administrative and support services, professional services and manufacturing followed.

05Funding options if cash is getting tight

The earlier you act, the more options you have. Lenders are far more willing to help a business that is under pressure but still trading normally than one already in arrears.

• Invoice finance releases cash tied up in unpaid invoices, and some facilities can include protection against customer bad debt.
• Debt consolidation loans combine several repayments into one, which can lower monthly outgoings.
• Refinancing an existing loan over a longer term can ease monthly pressure, though you may pay more interest overall.
• Working capital loans cover short-term gaps between paying out and getting paid.

If repayments are already hard to meet, our guide to managing business loan repayments explains why talking to your lender early helps. If your credit history has suffered, see bad credit business loans.

06What to watch next

The Insolvency Service lists its next company insolvency release, covering September 2026, for 20 October 2026. All releases are on the company insolvency statistics collection page. Monthly figures can swing, as August's administrations show, so the 12-month rate is a steadier guide to the trend.

If you want to strengthen your cash position before a slow customer or a tax bill tests it, get your Instant Quotes to see your lender matches instantly, with no credit check. Lenders make every decision, and all finance is subject to status.