There was a sharp rise in commercial judgments last year, mostly against established companies, with a 67 per cent jump in value and a 29 per cent increase in cases, new data shows.
The data, published by credit risk analyst CRIFVision-Net, shows there were 1,808 judgments against companies recorded in 2025 totalling €47.2 million.
“This trend indicates that more businesses are struggling to meet payment commitments, forcing creditors to seek legal recourse,” the group said.
CRIFVision-Net managing director Christine Cullen said the data highlighted a “widening gap” between entrepreneurial activity and financial resilience.
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“While it is encouraging to see strong levels of start-up formation, the rise in commercial judgments signals that many existing businesses are under significant financial pressure,” she said.
“More companies are struggling to meet payment obligations, which is increasingly forcing creditors to seek legal recourse.
“If rising costs, tighter credit conditions and export market volatility persist without adequate support, there is a real risk that today’s start-up momentum will not translate into sustainable long-term growth.”
The average age of insolvent firms is 11 years, suggesting that established businesses, rather than young start-ups, are feeling the most pressure from rising costs and tighter credit.
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“Many of these companies have already weathered previous economic shocks, but are now facing a more sustained combination of rising operating costs, higher interest rates and tighter access to credit,” the group said.
“For mature firms with fixed overheads, long-term leases and legacy debt, the ability to adapt quickly is often limited, leaving them more exposed as margins are squeezed and cash-flow pressures intensify.
“This trend points to a challenging environment for the core of the business economy, not just its newest entrants.”
The data also shows 26,500 new companies formed last year, which was the highest number in 15 years, representing an 11 per cent year-on-year increase.
Agriculture (38 per cent), IT (29 per cent) and construction (18 per cent) saw the largest year-on-year increases, reflecting the “urgent demand for housing and infrastructure”, the group said.
Meanwhile, key sectors such as wholesale and retail (9 per cent) and hospitality (5 per cent) remained big contributors to the figures.
While Dublin accounted for more than 40 per cent of all new companies, with 11,450 start-ups, there was growth across the country. There were 2,552 new firms in Cork, followed by Galway (1,145), Kildare (1,124), and Meath (1,018).
The figures exceed the previous post-Covid peak of 25,692 recorded in 2021. “Traditionally, periods of record-low unemployment can dampen start-up activity,” the group said.
“However, current trends point to a strong and growing appetite for indigenous enterprise.
“This reflects a strategic shift to reduce reliance on global multinationals amid heightened geopolitical uncertainty, global tariff concerns and evolving trade relationships.”
At the same time, it said tighter credit conditions, rising corporate stress, housing pressures, an ongoing cost-of-living burden and increased volatility in export markets “may be contributing to elevated stress indicators”.
“Without targeted support, this momentum could stall, leaving Ireland’s continued dependence on multinationals exposed,” it added.
Ms Cullen said the figures show “remarkable resilience and entrepreneurial ambition” across Ireland.
“While the surge in new start-ups is encouraging, it also underscores the importance of supporting established businesses facing rising costs and tighter credit conditions,” she said.
“By nurturing both emerging and existing enterprises, Ireland can sustain this momentum and strengthen its economy amid global uncertainties.”
