The UK construction industry is under immense pressure, potentially more than ever before. Our economy is volatile, with rising costs and labour shortages all posing serious challenges for the sector. But there is one huge issue that stands out as especially damaging. No, it's not Brexit, although that certainly hasn't helped. It is, in fact, the bad debt crisis.
Construction accounts for the highest rate of insolvencies across all UK sectors, and therefore, the risk of project disruption or total loss due to supplier or client collapse has never been higher. But what can be done to improve the situation?
For digital transformation experts responsible for enhancing resilience and efficiency across their construction business, now is the time to reassess financial due diligence and credit risk assessments. Embedding smart, real-time financial data into procurement and onboarding processes doesn’t just reduce exposure; it unlocks better growth opportunities and improves decision speed across commercial operations.
Red Flag Alert provides a powerful digital platform that delivers comprehensive financial insights through real-time, actionable business credit data. With just a few clicks, you can mitigate risk and identify opportunity. That means no spreadsheets, no guesswork; just standardised decision-making across your teams.
Start with a clear, risk-based filter. Set a minimum credit score threshold to eliminate high-risk entities early, freeing up time and resources for high-value opportunities. But don’t stop there. Trust us, credit scores are just the beginning.
Our proprietary insolvency score goes deeper than traditional credit ratings. Built on over twenty years of analytics and tested against hundreds of thousands of company outcomes, it helps you predict the likelihood of insolvency with far greater accuracy. It’s especially useful when assessing rapidly growing companies that may look profitable on paper but have fragile cash flow structures.
Due diligence isn’t only about avoiding risk; it's about spotting the opportunity that your competitors might have missed. Our organic growth score highlights businesses likely to grow turnover by 20% or more in the next year, helping your business prioritise partnerships that could drive your future pipeline.
Late payments are a chronic issue in construction. Our platform gives visibility into how reliably a company pays its suppliers, which is critical intelligence for the construction sector, helping with cash flow management and reducing delivery risk on projects.
Everyone knows by now that CCJs in any sector signal serious payment issues. Red Flag Alert provide real-time updates, available 24 hours a day, so you’re not blindsided by partners who can’t meet their obligations.
Most companies go insolvent within days of a winding-up petition being publicised. But did you know petitions are often filed weeks before they're made public? Our direct court feed uncovers hidden financial distress before it’s visible on the open market.
Understanding who is behind the company matters. Our reports instantly show you the directors’ past and present ventures, helping you assess patterns of success or repeated failure.
Larger construction firms often operate through multiple entities. Red Flag Alert reveals full group structures, so you’re not caught off guard by one seemingly healthy company falling with a struggling parent group.
We make complex reports simple. With instant access to profit and loss trends, overdue filings, and balance sheet health, you can flag red flags in seconds, without needing a finance degree.
Implementing financial due diligence processes doesn’t need to slow down your operations. Once embedded, Red Flag Alert checks can be completed in seconds, often faster than reading a paragraph of this article. More importantly, they’re a critical line of defence in a sector where bad debt and project risk are common and costly.
That’s why so many construction firms are making Red Flag Alert part of their digital transformation strategy, automating risk checks, improving supply chain resilience, and targeting healthier, faster-growing partners.
In a volatile market, financial due diligence in the construction industry is critical to avoiding risk and preventing bad debt. Red Flag Alert can help
The threats posed by money laundering are increasingly complex. You need a risk-based approach from Red Flag Alert to properly protect your organisation.
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