Other Indicators: Charges, Insolvency & Dormant Companies

Beyond the core filters like company type, status, and location, firmlist provides additional indicators that can be crucial for risk assessment, due diligence, and specialist research.

This guide covers three important data points:

• Charges & Mortgages — secured borrowing against company assets
• Insolvency Cases — financial distress and formal procedures
• Dormant Companies — companies with no trading activity

UK Company Charges & Mortgages Explained

When viewing UK company records, you may see references to charges or mortgages. These entries relate to secured borrowing and can provide valuable insight into a company's financial structure, risk profile, and relationships with lenders.

What is a company charge?

A company charge (historically also referred to as a mortgage) is a form of security granted by a company over its assets to secure borrowing.

Charges are registered at Companies House and typically relate to:

• bank loans
• asset finance
• debentures
• revolving credit facilities

They protect the lender if the company fails to repay its debt.

Charges vs mortgages (terminology)

• Mortgage is an older term historically used for certain fixed charges
• Charge is the modern, umbrella term used by Companies House

In practice, you should treat them as the same concept: secured lending against company assets.

What assets can be charged?

Charges can apply to:

• property (land or buildings)
• plant and machinery
• vehicles
• intellectual property
• receivables and book debts
• "all assets" (via a debenture)

Some charges are:

• fixed (specific assets)
• floating (classes of assets that change over time)

What does it mean if a company has charges?

Having charges means:

• the company has (or had) secured borrowing
• a lender has priority over certain assets
• proceeds from asset sales may go to charge holders first

Important: Having charges is not inherently bad. Many healthy companies use secured finance.

Why charges matter for B2B analysis

Risk assessment

Companies with many or recent charges may:

• be more leveraged
• have less financial flexibility
• present higher credit risk

Insolvency outcomes

In insolvency:

• charge holders are paid before unsecured creditors
• floating charge holders often influence administration

Due diligence

Charges are useful for:

• suppliers offering credit terms
• M&A and investment screening
• legal and financial research

When charges may not matter

For many B2B use cases, charges are not relevant, including:

• marketing and outbound sales
• SaaS or subscription services
• non-credit-based selling

In these cases, excluding charge data can simplify analysis without losing value.

Common misconceptions about charges

"Charges mean the company is failing" — False. Many stable companies carry secured debt.

"No charges means low risk" — Also false. Absence of charges does not imply financial strength.

Charges are a contextual signal, not a verdict.

Sources: GOV.UK - Registering a charge, GOV.UK - Companies House

UK Company Insolvency Cases Explained

A company can be insolvent before it is dissolved or liquidated — and in many cases, its Companies House status may still show as Active.

This makes insolvency data particularly important (and often misunderstood) when analysing UK companies.

What is insolvency?

A company is insolvent if it cannot pay its debts as they fall due or if its liabilities exceed its assets.

Insolvency is a financial condition, not a single legal status.

Insolvency vs company status

This distinction is critical:

• Company status reflects legal existence (Active, Dissolved, etc.)
• Insolvency proceedings reflect financial distress processes

A company can be:

• Active and insolvent
• Active and under administration
• Active and subject to a CVA

This is why insolvency data must be considered separately from status.

Common UK insolvency procedures

Administration

• Company enters administration to attempt rescue or achieve a better outcome for creditors
• Company often continues trading
• Status may still show as Active

Company Voluntary Arrangement (CVA)

• Formal agreement with creditors
• Company continues trading
• Indicates financial distress, not closure

Liquidation

• Company is being wound up
• Trading usually ceases
• Status typically changes after proceedings progress

Receivership

• A receiver is appointed for secured creditors
• Often linked to charges or debentures

Why insolvency data matters

Sales & marketing

Insolvent companies are usually poor sales prospects.

Credit risk

Suppliers offering payment terms should avoid companies in insolvency processes.

Specialist services

Some businesses actively target:

• companies entering administration
• firms proposing CVAs
• directors of distressed companies

Common misconceptions about insolvency

"If the company is Active, it's healthy" — False. Activity status does not reflect solvency.

"Insolvency always means closure" — Also false. Many companies exit insolvency procedures and continue trading.

How to use insolvency data in firmlist

Best practice:

• Exclude insolvency cases for standard B2B sales
• Include insolvency data for risk, advisory, or restructuring services
• Combine with charges, company age, and status filters

Sources: GOV.UK - Liquidation and insolvency, GOV.UK - Closing a limited company

Dormant Companies Explained (UK)

A dormant company is one that exists legally but has no significant accounting transactions during a financial year.

Dormant status is common — and often misunderstood.

What is a dormant company?

According to HMRC and Companies House, a company is dormant if it:

• has had no significant financial transactions
• is not actively trading
• still exists on the register

Dormant companies must still:

• file annual confirmation statements
• submit dormant accounts

Why companies become dormant

Common reasons include:

• holding companies for future projects
• companies formed but never traded
• intellectual property holding vehicles
• group structuring
• paused operations

Dormancy does not automatically imply failure.

Dormant vs dissolved

Why dormant companies matter (or don't)

Usually irrelevant for sales

Dormant companies:

• are not trading
• do not buy services
• rarely respond to outreach

They should usually be excluded from B2B sales lists.

Relevant for research and structuring

Dormant companies may matter for:

• corporate group analysis
• IP ownership research
• director behaviour analysis

Dormant companies and status filters

Important:

• Dormant is often inferred from accounts, not always a headline status
• A company can be Active but file dormant accounts

This makes combining status, accounts, and activity signals important.

Best practice on firmlist

For most users:

• Exclude dormant companies
• Focus on Active, trading entities

For specialist use cases:

• Include dormant companies intentionally
• Combine with company age and type

Sources: GOV.UK - Dormant companies, Companies House - File dormant accounts

Related guides

• Company Types Explained
• Company Status Explained
• SIC Codes Explained
• Company Numbers & prefixes
• Postcode & location filtering
• Company age & incorporation date