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When a business has insufficient cash to pay its current debts then it is insolvent. However, in order to protect your own business, it is important to be alert to all the possible warning signs of impending insolvencies and to take whatever action you can to protect yourselves.

Read our ECA Guidance on understanding and protecting yourself from insolvency - here.


Considerations for your business

More businesses ‘go bust’ coming out of recession than during recession; the ‘credit crunch’ has left the banks nursing their own balance sheets; as a consequence, funds to bolster under capitalised businesses are hard to come-by. Funds for investment are also in short supply. Developers are being starved of the funds they need in order to ‘kick-start’ their activities.  Insolvencies will ensue. 

Structuring  your activities accordingly, consider the following seven issues to help your business in difficult times: 

1.   Market Research 
2.   Customers 
3.   Tendering
4.    Pricing & Quotations,
5.    Suppliers and Subcontractors
6.    Pre-Contract
7.    As Works Proceed and the Act of Insolvency itself

These issues are explained in further detail below.

Read more


Guidance Note: Debtor Insolvency

(PDF, 235 kB)

This guidance is intended to inform Members of the considerations and risks surrounding circumstances in which parties owing Members money have entered into an insolvency process.

Published 20 Mar 2019Last reviewed 20 Mar 2019

Late Payment of Commercial Debt Regulations

(WORD, 124 kB)

A joint publication with the BESA (Building Engineering Services Association) explains the Late Payment of Commercial Debt Regulations

Published 30 Mar 2017Last reviewed 30 Mar 2017