How to find out if a company is in liquidation?

Before engaging in business with a company, it’s important to check whether they’re in financial difficulty or have outstanding debts.

Knowing how to verify a company’s insolvency status is a crucial skill that can protect your business interests.

This guide explains why it’s important for you to know the financial status of any company you engage in business with and how to find out if a business is in liquidation.

Why is it important?

Financial protection

Financial protection is critical when dealing with other businesses.

For example, you need to know if they’re solvent.

If you don’t know how to find out if a company is in liquidation, you might end up paying out of pocket for any goods or services already delivered.

Business planning

Understanding the financial stability of your suppliers helps you mitigate risks to your supply chain and avoid costly disruptions.

In situations where your primary component supplier becomes insolvent, your production could halt abruptly, forcing you to source alternatives at prices above market value.

Legal considerations

Trading with a company in liquidation can also have serious legal implications, particularly if you’re extending credit or entering new contracts.

Debt recovery

If a company that owes you money enters liquidation and you fail to register yourself as a creditor promptly, any chance you have of recovering even a portion of your funds may disappear completely.

Knowing how to check if a company is in liquidation is a fundamental part of due diligence before entering significant business relationships or making substantial investments.

Regular monitoring of the financial health of your business partners allows you to take proactive measures rather than reacting to a crisis and risk destroying your business.

How to check if a company is in liquidation

Fortunately, the insolvency status of most companies is public information, and it’s fairly easy if you’re looking for how to check if a company has gone into liquidation.

Here are two methods you can use:

Companies House

The Companies House website has a useful search tool that allows you to check the trading status of any registered business.

All you need to do to access this information is to have the company name or registration number.

Visit the website, enter that information, and you’ll have almost everything you need to know about the company’s status and filing history.

You’ll get all the information you need on whether the business has ceased trading, any insolvency details you should know about, and whether the company has already been dissolved.

If the company is dissolved, it’ll be listed as ‘struck off’’ or ‘dissolved’.

However, it should be noted that in cases where liquidation proceedings have only recently commenced, Companies House records may not yet reflect the current status of the company thanks to administrative processing timeframes.

You should always verify information received with more than one source to ensure accuracy.

London Gazette insolvency notices

The London Gazette is another key tool in checking the insolvency status of a company.

Using this, you can verify if a business has gone into liquidation or administration.

Similar to the Companies House all you need is the company registration number or the trading name, enter it into the London Gazette website any search through their posted notice if any.

This includes registered corporate insolvency procedures and changes to registered office addresses and ownerships.

Understanding a company’s insolvency status is important whether you’re a creditor, supplier, or business partner. Before you sign any deals, or deliver any goods and services, it’s important for you to know if the company you’re dealing with is in liquidation and that starts with knowing how to check if company is in liquidation.

But if you’ve already had dealings with a company who is undergoing liquidation, seek professional advice immediately. 

Insolvency specialists such as our team can help you understand your position as a creditor and the steps you can take to protect your interests.

Have concerns about your business or a company you’re working with?

Not sure how to find out if a company is in liquidation?

Irwin Insolvency can help, reach out to our professional team and let us help protect your business.

 

 

Contact Irwin Insolvency today for your free consultation

Call us
0800 254 5122

About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency,
 rescue and turnaround.