Are more businesses going bust? Company insolvencies in September 2026

This article is for business owners asking whether more companies are going bust, which sectors are most affected and what that means for their own cash flow. The Insolvency Service published its company insolvency figures for September 2026 on 20 October 2026. 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.

01Are more businesses going bust?

Not overall. According to the Insolvency Service commentary for September 2026, there were 1,882 registered company insolvencies in England and Wales in September. That was:

• 4% lower than August 2026, when there were 1,953. That August total is higher than the 1,946 first published last month, as monthly figures are provisional and can be revised.
• 5% lower than September 2025, when there were 1,973.

Over the 12 months to September 2026, about one in 200 companies became insolvent, a rate of 49.9 per 10,000 companies, down from 52.8 a year earlier. The Insolvency Service notes this is much lower than the peak of 113.1 per 10,000 seen in the 2008 to 2009 recession, partly because the number of companies on the register has more than doubled since then.

02Which types of insolvency rose and fell?

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

• Creditors' voluntary liquidations (CVLs): 1,420, about 1% fewer than in August and 9% fewer than in September 2025. CVLs, where directors choose to close an insolvent company, remain the most common route.
• Compulsory liquidations: 341, up 6% on August and 25% on a year earlier. These follow a court order, usually after a creditor such as HMRC petitions to wind the company up.
• Administrations: 102, down 44% on August and 20% on September 2025. The Insolvency Service says recent swings were driven by more than 250 connected real estate companies entering administration between March and August 2026.
• Company voluntary arrangements (CVAs): 19, the same as August and 12% more than a year earlier.

The rise in compulsory liquidations is the figure to watch, because it shows creditors taking companies to court over unpaid debts. 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 have the most insolvencies?

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

• Construction: 3,873 cases, 17% of those with an industry recorded. See construction finance.
• Wholesale and retail trade, and motor repair: 3,364 cases, 15%. See retail business loans.
• Accommodation and food services: 3,208 cases, 14%. See hospitality business loans.
• Administrative and support services: 2,202 cases, 10%.
• Professional, scientific and technical activities: 1,897 cases, 8%.
• Manufacturing: 1,827 cases, 8%. See manufacturing finance.

Every sector making up at least 8% of cases saw fewer insolvencies than in the previous 12 months, with falls ranging from 10% in wholesale and retail to 2% in construction.

04What about Scotland and Northern Ireland?

The figures for Scotland and Northern Ireland are not seasonally adjusted, so they are compared with the same month a year earlier:

• Scotland: 117 company insolvencies in September 2026, 14% more than in September 2025. The 12-month rate was 49.0 per 10,000 companies, down 3.1 on the previous 12 months.
• Northern Ireland: 45 company insolvencies, 61% more than a year earlier. The 12-month rate was 42.6 per 10,000 companies, up 5.3.

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05What do 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 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.
• 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.
• Know your rights on late payment. Our report on the Commercial Payments Bill explains the new rules on the way.

Costs are rising too: our report on inflation reaching 3.5% covers what it could mean for interest rates. For the wider data, see our UK small business statistics.

06Funding 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.

07What to watch next

The Insolvency Service lists its next company insolvency release for 17 November 2026. All releases are on its company insolvency statistics collection page. For last month's figures, see company insolvencies in August 2026. Monthly totals can swing, as this year'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 payer 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.