Global Insolvencies Hit a Fifth Consecutive Record
This video examines the sustained rise in business insolvencies and its implications for accounts receivable in 2026. It covers regional forecasts, the pressures driving failures and practical steps for monitoring credit risk and managing cross-border recovery.
Key takeaways
- Global insolvencies stand 24% above their pre-pandemic level, with Coface forecasting a further 2.8% increase in 2026.
- Services, retail, construction and automotive businesses account for the greatest volumes of insolvency cases.
- The article recommends reducing concentration when one customer represents over 15% of receivables or one sector exceeds 30%.
- Rising Days Sales Outstanding warrants attention alongside industry comparisons, automated payment reminders and earlier escalation.
- International recovery depends on understanding local claim priorities and filing requirements.
What this video covers
The video explains why continued business failures require a reassessment of receivables risk rather than an assumption that conditions are returning to normal. In 2026, global insolvencies are 24% higher than before the pandemic, while Coface projects another 2.8% rise worldwide. The central lesson is that slower deterioration does not mean financial distress has passed. Regional differences matter for credit decisions. The source projects increases of 10% in China and 8% in the United States, compared with declines of 4% in France and 3% in Spain. It also identifies expensive borrowing, unpredictable tariffs and the removal of pandemic support as pressures on vulnerable businesses. For AR teams, the video connects these trends to customer and sector concentration, worsening payment timelines and recovery readiness. It highlights the article’s recommended exposure thresholds: more than 15% of receivables with one counterparty or 30% in one industry. Monitoring Days Sales Outstanding against sector benchmarks, using automated reminders and escalating before insolvency are presented as important responses. Finally, it explains why international claims require local legal knowledge, including attention to filing deadlines and creditor priorities. Collecty’s recovery infrastructure spans 190 jurisdictions, with an emphasis on early intervention and locally informed handling of insolvency and restructuring cases.
