Time For A Business Health Check?

Signs of insolvency and how to start a conversation with a client facing financial distress.

At Worrells, all too often, we meet with a client whose business’s restructuring options may be limited or no longer viable, as they have ignored the warning signs for far too long.

In 2026, ten key indicators of insolvency to look out for:

1. Continuing trading losses.

2. Outstanding taxes and other statutory liabilities.

3. Poor relationship with the current financier and an inability to borrow further funds.

4. No access to alternative finance.

5. Inability to raise further equity capital.

6. Suppliers placing the client on cash on delivery.

7. Creditors are being paid outside their normal trading terms.