North West businesses had over 6.8 million overdue invoices on their books in 2024, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows that businesses in the North West recorded a total of 6,879,584 overdue invoices last year. This was the third highest yearly total, falling only behind Greater London (10.5 million overdue invoices) and the West Midlands (8.4 million overdue invoices).
The total number of overdue invoices in 2024 rose by 4.2% when compared to 2023’s total of 6,601,976 overdue invoices. October saw the highest volume of overdue invoices, with a total of 609,193 recorded during the month.
Fran Henshaw, chair of R3 in the North West, said: “2024 was an incredibly challenging year for North West businesses. While a decline in inflation levels provided some relief by slowing the pace of rising costs, this was overshadowed by a host of other challenges.
“Ongoing supply chain disruptions made it harder for businesses to operate smoothly, high energy costs continued to squeeze profit margins, and political uncertainty surrounding the election left many unsure about the future. These difficulties were further compounded by new pressures introduced in the October budget, making it even harder for businesses to regain their footing.
“The combination of these ongoing pressures has left many businesses in the North West unable to meet payment deadlines and struggling to stay afloat.”
The number of North West companies with overdue invoices on their books reached 670,016 in 2024. This is a 3.4% increase from 2023, when 647,884 firms recorded overdue invoices on their books.
In 2024, the North West saw the fourth highest number of firms with overdue invoices on their books of all the UK’s nations and regions, surpassed only by Greater London (1,193,220 firms), East Anglia (758,866), and the South East (701,987).
Fran, who is head of corporate recovery and insolvency at Beever and Struthers, said: “Over the past couple of years, many businesses struggled to pay their bills on time, and as conditions have not improved enough, these debts have snowballed. This has placed immense pressure on North West businesses, with more and more now unable to meet their payment deadlines amidst ongoing financial challenges.
“If conditions don’t improve early this year, we could see more companies facing even greater pressures, with some turning to insolvency processes to address their financial issues.
“I would urge businesses in the North West to seek advice at the first signs of financial distress. Conversation around money can be extremely difficult, but by facing your problems early, you’ll have more time to think about your next steps and more potential options available to you for resolving your concerns.”
