Protect your business using insolvency searches

Following political change and continued rising prices, many businesses are feeling prolonged pressure on profitability and weaker cash flow buffers. Therefore, a customer not paying their invoices could have a catastrophic domino effect.

Invoices may not be paid because a customer refuses to pay. However, in some instances, it’s because they can’t pay. Therefore, carrying out appropriate credit checks and insolvency searches is more important than ever.

An insolvency search is a critical due diligence process for businesses to identify if a company or individual is facing insolvency or has been involved in insolvency proceedings. This search provides businesses with insight into the financial health of potential clients, partners, or suppliers, helping mitigate risks associated with unpaid debts or failed partnerships.

An insolvency search typically reveals court records, bankruptcy filings, and administration orders, often accessible through sources like The Gazette, allowing businesses to make informed decisions and protect themselves from financial exposure. Conducting regular insolvency searches is essential for maintaining strong, secure business relationships and ensuring sustainable growth.

The Gazette is an official and permanent public record that is published every working day of the week. It formally combines three publications: The London Gazette, The Belfast Gazette, and The Edinburgh Gazette.

Statutory notices posted in The Gazette inform the public and creditors about a business’ insolvency, as well as creditors owed, contact details, the insolvency practitioner (IP), and upcoming meetings.

Under the Insolvency Act 1986 and The Insolvency (England and Wales) Rules 2016, these notices are a legal requirement and have become the primary source for insolvency information in the UK.

The Gazette will list:

• Notice code 2502 – substituted service of petition
• Notice code 2504 – bankruptcy orders – partnerships
• Notice code 2505 – administration orders
• Notice code 2506 – amendment of title of proceedings
• Notice code 2507 – appointment of trustees
• Notice code 2508 – notice code to creditors
• Notice code 2509 – notice code of intended dividend
• Notice code 2511 – final meetings
• Notice code 2512 – annulment of proceedings
• Notice code 2515 – discharge orders
• Notice code 2516 – annulling, revoking or rescinding orders

Directors and sole traders may be listed on the Insolvency Register, but the Gazette should be checked if you are screening a company.

In short, knowledge is power. If a company is listed, they’re currently going through financial difficulty, or have recently come out of a troubling time. Therefore, providing them with credit is a high-risk action that may leave you out of pocket. This information may lead to different terms or influence whether you extend credit or not.

While many companies go through the insolvency period and go on to thrive, some don’t. Estimated company voluntary arrangement (CVA) success rates vary, but, at the end of 2023, the UK government reported there was a 44% increase in compulsory liquidations from 2022, just 4% lower than 2019 pre-pandemic levels. Administrations also increased 27% from 2022 but were 14% lower than in 2019.

A company voluntary arrangement (CVA) is a legal agreement between a lender and a creditor to help manage debt when repayments get difficult.

It helps make repayments more manageable and aims to get businesses back on track. This could mean paying all or part of the debt off within a set period of time. These payments are made through an IP, who’ll ensure creditors are paid in the correct priority order.

To get started, a business must prove that an agreement will provide more value to creditors than liquidation. This could include evidencing future estimated earnings and proving the business has sufficient working capital to continue trading. If successfully proven, an agreement will be set in place.

During the CVA period, creditors will stop charging interest and chasing payments, but the business mustn’t take out any new credit without permission. Creditors must agree to the CVA and businesses should expect some fees for set-up and payment handling.

Once all money owed is paid, the agreement ends and collections stop.

Please note that partnerships may require a partnership voluntary arrangement (PVA) and individuals may seek an individual voluntary arrangement (IVA) instead of a CVA. These agreements may be known by different names in Scotland and Ireland, for example, debt relief notices.

If a potential customer has a CVA, they shouldn’t be seeking out credit without prior approval from their IP. However, you should still run in-depth checks.

You can do a basic search of The Gazette. However, if you would like to save your searches or create editions, you will need to make an account. Head to the ‘all notices’ section and you can search by numerous categories including location, date, and company information.

At Allianz Trade, as part of your trade credit insurance, we protect your business by monitoring all available information, which is not limited to insolvency and companies registers, and assessing trade credit risk in real time.

In our most recent Global Insolvency Report, we stated that 2024 started with insolvencies above pre-pandemic levels in most advanced economies and that we expected another acceleration in global business insolvencies as the year progressed, before a stabilisation in 2025.

These figures meant that protection quickly became very important. But, why choose Allianz Trade?

Part of the global Allianz insurance group, Allianz Trade consistently monitors over 83 million companies worldwide with 1,700 credit analysts based in 62 countries. Our trade credit insurance indemnifies for the value of goods or services you have delivered, should a customer default on payment.

However, we can also analyse the creditworthiness and financial stability of your customers, vetting them before deals are made and potentially preventing losses. We monitor all available publicly available information, including but not limited to the insolvency registers and Companies House records.

Taking out a policy with Allianz Trade will enhance your existing credit control procedures, help you to improve your profitability by safely increasing your exposure to more customers, and ensure you remain competitive by offering open credit terms when your competitors can’t.

You’ll have the peace of mind to grow your business knowing that we’ll give you regular updates on the financial health of your customers and prospects.

Visit our credit insurance page to find out how we can help and request a quote online.