UK cash flow reality check: insolvencies high, scrutiny rising

What changed this week?
Three UK-only signals point in the same direction: insolvencies remain high, the regulator is pressing harder, and personal debt solutions are still running hot. For credit managers and FDs, that means less time to wait and see — and more incentive to act early. (GOV.UK)

Insolvencies: still too many, for too long
The latest monthly company figures show 2,000 insolvencies for September in England & Wales. CVLs continue to dominate. This isn’t a surge; it’s a stubborn high plateau. If your collections workflow still assumes a gentle return to normal, you’re lending your working capital to customers who may never repay. Tighten your “days-to-action,” and put decision gates into the process so stalled files don’t age quietly. (GOV.UK)

Regulation: the spillover few credit teams plan for
The FCA’s enforcement leadership made it plain this week: speed, data and outcomes. That has spillover effects even outside regulated balance sheets. When lenders, brokers or fintech clients enter remediation mode, the first casualty is cash-out timing. Build regulatory signals into credit monitoring (mentions on FCA pages, live consultations, or enforcement-related updates). Where risk rises, switch to milestone billing, deposits or security rather than offering free credit while the customer deals with the regulator. (FCA)

Individuals: elevated DROs keep the pressure on
High Debt Relief Order volumes change behaviour in the long tail of your ledger: directors and owner-managers become cautious, stretch suppliers and avoid commitments. Don’t take it personally — treat it as a forecast. For borderline accounts, create short settlement offers with clear expiry dates; for larger balances with assets, be ready to enforce proportionately. The faster you move, the better your seat in any subsequent distribution. (GOV.UK)

Your next steps (UK/GEO-focused)

1. Rescore exposure for London/South-East clients in regulated sectors and for national counterparties in construction/retail.
2. Refresh templates: up-to-date LBAs, enforceable retention of title, and confirmation of director details.
3. Escalate earlier: if silence follows your LBA, make a clear enforcement choice within days, not weeks.
4. Stay courteous: fair, firm, human. It works — and protects relationships you still value.

About Athena Collections
We’re here to make recoveries calm, quick and commercial. If you want a short, punchy plan for your toughest five accounts this month, we’ll map it — no jargon, no drama, just steps that get you paid.

(Sources: Insolvency Service monthly stats; FCA enforcement speech.) (GOV.UK)