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Enter a company name or number to organise available public-record indicators. The result is a prompt for verification, not a diagnosis of insolvency or payment behaviour.
10 warning signs a company is about to fail
Accounts filed late (or not at all)
Companies House data shows a strong correlation between late filings and subsequent insolvency. If a company has missed its filing deadline, it either cannot afford to prepare accounts or does not want creditors to see them. Both are bad.
Net liabilities on the balance sheet
When total liabilities exceed total assets, the company is technically balance-sheet insolvent. Many companies trade through this temporarily, but sustained net liabilities combined with other warning signs is a serious red flag.
Auditor flags "material uncertainty" over going concern
Auditors are professionally cautious. If they explicitly state there is material uncertainty about the company's ability to continue as a going concern, take it seriously. This language appears in the audit report within the filed accounts.
Multiple CCJs in short succession
A single county court judgment might be a dispute. Multiple CCJs in a 6-month window means multiple creditors have already tried and failed to get paid through normal channels. The company is not paying its debts.
Director resignations
When non-executive directors, finance directors, or company secretaries resign in quick succession, they may be distancing themselves from the failing company. Directors can be held personally liable for wrongful trading if they allow the company to incur debts they know cannot be repaid.
Charges (debentures) filed recently
A new charge registered at Companies House means the company has pledged assets as security for borrowing. If multiple charges appear in a short period, the company may be taking on emergency debt to cover cash-flow gaps. Your position as an unsecured creditor weakens with every new charge.
Gazette notices (winding-up petition, strike-off)
A winding-up petition means a creditor has asked the court to liquidate the company. A strike-off notice (First Gazette Notice for Compulsory Strike-Off) means Companies House is about to dissolve it. Both are near-terminal indicators.
Switching to micro-entity accounts (hiding detail)
A change in accounts format may reflect eligibility, reporting choices, or a change in circumstances. It is not by itself suspicious or evidence of insolvency. Compare the filings and obtain advice if the distinction matters.
Rapid director/shareholder changes
A sudden change of directors or share transfers (especially to overseas parties or nominee companies) can indicate the original owners are distancing themselves before insolvency. Check who the new directors are and whether they have a history of failed companies.
Suppliers reporting non-payment
If other businesses in your industry are reporting that the company has stopped paying, do not assume you will be the exception. Trade credit information travels slowly through informal networks. By the time it reaches you, the company may already be weeks from collapse.
What "going bust" actually means
"Going bust" is not a legal term. In practice, it refers to one of three formal outcomes:
Liquidation
The company is wound up. Assets are sold, creditors are paid (partially), and the company ceases to exist. Can be voluntary (directors choose) or compulsory (court-ordered after a winding-up petition).
Administration
An administrator takes control to try to rescue the business or achieve a better result for creditors than immediate liquidation. Often involves a sale of the business (including pre-packs to connected parties).
Dissolution (strike-off)
The company is removed from the Companies House register. No formal insolvency process, no administrator, no liquidator. Directors sometimes use this route to avoid scrutiny. Creditors can object to the strike-off within 2 months of the gazette notice.
What to do if you suspect a company is failing
- Review exposure carefully. Check the contract, approval process, service obligations, and evidence before changing credit terms or payment arrangements. A refusal does not establish why a company is experiencing difficulty.
- Document the account. Reconcile invoices, scope, due dates, disputes, and communications. Obtain advice before making demands or taking an insolvency step.
- Check your contractual protections. Review your terms for retention of title clauses, personal guarantees, and parent company guarantees. These survive insolvency and give you options the average unsecured creditor does not have.
- Set up continuous monitoring. A single check gives you a snapshot. Monitoring alerts you to new filings (CCJs, charges, gazette notices, director changes) as they happen. Problems escalate fast.
- Diversify your supply chain or customer base. If one company accounts for a large share of your revenue or a critical input, start onboarding alternatives before you are forced to.
One search. 72 risk signals. 12 registers.
RecoupIQ organises 72 automated checks across 12 source groups where relevant public data is available. It highlights evidence to verify and questions to ask. It does not tell you that a company is failing or that a particular action will succeed. £29 Quick Check, no subscription required.
Check a company nowRelated guides
- Company going into administration: what creditors need to know
- Check company winding-up petition (UK)
- Is this company legitimate? How to check
- Check company CCJs UK
Monitor companies you trade with
A single check shows you the risk today. Monitoring shows you the moment it changes. RecoupIQ monitoring (from £19.99/mo) alerts you within 24 hours of any warning signal: gazette notices, director changes, new charges, late filings, or status changes. Available via the web dashboard or the Microsoft 365 Trust Check app (per-seat for teams). RecoupIQ is a Microsoft partner.
See monitoring plansLast reviewed: July 2026. General information for UK creditors. Not legal advice. RecoupIQ Ltd, Company No. 16947526, ICO ZC077511. Microsoft Partner.