Rise in CVLs highlights the ongoing cashflow pressures facing small businesses

LONDON - EntSun -- Rise in CVLs highlights the ongoing cashflow pressures facing small businesses

Purbeck Insurance Services responds to the newly released company insolvency figures for February 2026

March 2026:  Todd Davison, MD of Purbeck Insurance Services says: "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.

"At Purbeck, we are particularly concerned about the increase in voluntary liquidations, which often indicate that directors feel they have exhausted all refinancing or turnaround options. With the number of compulsory liquidations also sitting below last year's levels, it is clear that directors themselves are choosing to close their companies before matters escalate further.

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"Demand for personal guarantee insurance continues to be strong, as owners look for ways to manage the personal financial exposure that accompanies new lending. In the current environment, directors are trying to balance the need to fund their business with the risk of personal liability should the business fail.

"We urge SMEs to seek early advice—whether from lenders, advisers, or specialist providers—before financial pressures become unmanageable. The earlier support is sought, the better the chances of stabilising the business and protecting both the company and its directors."
www.purbeckinsurance.co.uk

https://www.gov.uk/government/statistics/company-insolvencies-february-2026/commentary-company-insolvency-statistics-february-2026