Five practical tips for insolvency practitioners

It seems like almost every day there’s another high-profile insolvency. So many businesses are struggling at the moment, and the landscape continues to fluctuate. Rising interest rates, stubborn inflation, threats of tariffs and distinct changes to consumer behaviour are applying pressure across multiple sectors.  

In my role, I speak to a lot of companies that monitor and deal with insolvency. And let me tell you, the rates are extremely high.  It’s sad that a lot of companies are struggling to break even, but that’s where insolvency practitioners come in. In fact, they’re more vital than ever to help businesses navigate the murky world of financial distress.

As a long-time advocate for smarter, data-led approaches to insolvency, I’ve worked closely with practitioners across the UK. Here are my top five practical tips drawn from those experiences to help insolvency practitioners operate more efficiently, compliantly, and commercially.

1. Leverage data to gain visibility into your accountants’ client portfolios

While strong relationships with accountants are essential, many insolvency practitioners lack real-time insight into the financial health of the businesses within those networks. By investing in technology and data platforms, you can monitor those client portfolios proactively identifying potential distress signals before the accountant even picks up the phone. This transforms you from a reactive service provider into a strategic, data-driven partner.

2. Use triggers from data to time your engagement

You don’t need to be in constant contact with every accountant in your network. Instead, use Red Flag Alert to monitor for significant changes and warning signs of insolvency, such as declining credit scores, CCJs, or directorship changes.

I’d recommend setting up multiple monitoring streams directly within from client base. These real-time signals should guide when and how you re-engage, whether it’s a coffee catch-up, webinar invite, or advisory conversation. Whatever your process is, make sure you’re on hand at the key time to offer advisory services by utilising data to dictate the timing and value of your touchpoints. This maximises your effectiveness and opens time for forging new, high-potential relationships.  

Remember, position yourself as a trusted partner and not just a last resort. This approach builds trust and often results in deeper, longer-term client relationships.

3. Target newly established accountants to build long-term referral relationships

Collaboration is crucial, and my advice would be to not just focus on established firms. Actively seek out newly incorporated accountancy practices. These start-ups are building their client bases and networks from scratch, making them highly receptive to forming new professional partnerships. Reaching out early with a LinkedIn message, email, or event invite position you as their go-to insolvency contact before anyone else does. Nurture these relationships and stay visible in their networks.  

Attend industry events, contribute insights, and make it easy for them to get in contact when they’re ready for support. Don’t just wait for referrals, these newer companies are waiting to be introduced to you.

4. Use insolvency data to identify secondary opportunities

Insolvency often has a ripple effect. Using Red Flag Alert’s real-time data, you can identify who may have been affected by recent problems in the market. These businesses can face sudden financial strain or bad debt and need your support. Secondary victims may need restructuring or insolvency advice themselves, presenting a valuable and often overlooked source of opportunity.

Using our platform, you can spot trouble early. Far too often, by the time a company reaches an insolvency practitioner, the signs of distress were visible months earlier. Accessing our financial health insights allows you to track clients and prospects more effectively, identifying red flags before they escalate into formal proceedings.

Tools like Red Flag Alert offer daily updates on changes in credit ratings, CCJs, late payments, and director movements, providing a competitive edge in proactive client acquisition.

5. Analyse competitors to uncover referral gaps

Spend time understanding who your local competitors are working with, the types of cases they're handling, and which accountants are feeding them work. This insight can reveal introducers you've overlooked or previously struggled to engage. Knowing who’s winning which work, and who’s working with who, helps you refine your targeting strategy and uncover warm leads in your network.

My final thoughts

The insolvency profession is changing. The most successful insolvency practitioners in today’s market are those who think like advisors, act like marketers, and operate like data analysts.

At Red Flag Alert, we’re proud to support the profession with tools that make their lives so much easier. If you’re an insolvency practitioner who would like to see how we can help you identify opportunities, manage risk, and improve efficiency, get in touch today.