Purbeck Insurance Services says that the latest company insolvency figures show that cashflow pressure remains acute for UK small businesses, after creditors’ voluntary liquidations rose again in February.
Official data for England and Wales showed 1,878 company insolvencies in February 2026, including 1,473 creditors’ voluntary liquidations, 249 compulsory liquidations, 146 administrations, and 10 company voluntary arrangements. CVLs accounted for 78% of all cases and were up 11% on January, although still 3% lower than a year earlier.
Todd Davison, managing director of Purbeck Insurance Services, said: “The latest insolvency data paints a worrying picture for UK SMEs, despite a slight easing in the annual trend. The rise in CVLs highlights the ongoing cashflow pressures facing small businesses. Many viable businesses remain under significant strain from inflationary pressures, higher borrowing costs, and reduced consumer demand.”
Davison said the rise in voluntary liquidations matters because it can indicate that directors are choosing to wind down before options narrow further. He also said demand for personal guarantee insurance remains strong as business owners try to balance access to finance against the risk of personal liability if trading deteriorates.
The pattern in the official data supports that caution. Compulsory liquidations were lower than both February 2025 and the 2025 monthly average, while administrations stayed above the year-earlier level. That mix suggests the pressure on smaller companies is not disappearing, even if the broad annual trend has eased from the post-pandemic highs.
Purbeck said directors should move early rather than wait for options to close. In line with that message, businesses under strain may want to seek early advice before cashflow pressure becomes harder to manage.
