UK businesses confident about trade credit resilience – but research results show different conclusion

Broking organisation Marsh has warned UK business leaders that they must not fall into the trap of believing they are resilient to growing trade credit risks because “risks are increasing and what worked a year ago may not be fit for purpose now”.

This view arose as the broker published a new report on 16 July 2026, entitled Trade Credit Report 2026: Perception versus Reality – Is high risk becoming normalised in a volatile environment?

This research, which surveyed 1,000 UK chief executives and finance directors of businesses with turnover of £20m and more that 50 staff, uncovered a seemingly unwarranted confidence that British companies can successfully manage the financial threats of their supply chain and client payment failures in a climate of rising financial instability.

At a breakfast briefing for journalists held on the same day as the report launch, Ian Leslie – managing director and head of trade credit and credit specialties at Marsh Risk – noted that Marsh had been surprised by the confidence of respondents, with 98% of them believing they are currently resilient to financial risks.

“The results last year were what we expected, but we have been surprised this year,” he said. “Businesses were pretty optimistic this year, which has surprised us.

“UK [businesses have] gone through Brexit, Covid-19, global conflicts and rising costs, so to see that optimism has been a surprise.”

Leslie warned that while UK organisations may feel they are resilient to financial shocks, this could not be further from the truth, in his opinion.

“We have 84% [of respondents] expecting to see business growth in 2026,” he explained. “However, 85% said they have been victims of late payments and 75% say they have been forced to write off bad debts.

“A quarter of those who responded [said] that 50% of their revenue would be at risk if one of their top five customers failed to pay. We also see 99% of companies [state] they are now relying on smaller supply chains than they did in 2025.

“It is a discussion [we] have been having since Covid, when businesses understood they needed to ensure they were not putting too much of their supply chains in the hands of a small number of companies. If [these] fail to deliver, they have no back up.”

What risk functions can do today

Marsh’s report revealed five top tips to help businesses better navigate trade credit risk.

1) Confidence should match visibility. Leslie explained: “Businesses may feel resilient, but rising risks mean confidence is simply not enough. They need to understand their risks and weaknesses and take action to mitigate those threats.”

2) Growth strategies should be supported by stronger credit protection, such as trade credit insurance. Although sales directors will be excited by prospect lists and the growth potential of their business entering a new market, for example, finance directors will be more “concerned over access to a market where the level of data and information can vary significantly”.

Leslie added: “Boards are not willing to take the step without mitigation for the perceived risks and that is where trade credit insurance plays its part.

“Trade credit is not an investment tool. But if it makes companies confident to access new markets or new partnerships, then it is doing its job.”

3) Reducing risk concentration to improve resilience. With “a growing dependency on key customers and suppliers”, Marsh recommended that businesses diversify their customer bases and review supplier concentrations to bolster resilience.

4) Acknowledge that digital resilience is linked to financial resilience. Leslie explained: “What is clear is [that] digital resilience is now a major financial resilience issue. Digital disruption, cyber threats, fraud and artificial intelligence related risks are linked to financial exposure [as well as] operational disruption.

“Cyber and digital risks are now a topic for boardrooms, but the financial and wider impacts need to be [discussed] and steps taken to tackle the risks.”

5) Resilience strategies and trade credit insurance should match exposures. “Exposures continue to rise and organisations cannot sit back and believe they are resilient,” Leslie noted. He emphasised that businesses “need to regularly review risks and exposures, and ensure mitigation solutions match those exposures”.

He continued: “Businesses may well believe that they have been through so much in recent years [that] the volatility we see [today] is simply something they need to navigate.

“Companies may think they are able to cope with the risks and are resilient, but those risks are increasing and what worked a year ago may not be fit for purpose now.”