North West firms had over 1.7 million overdue invoices on their books this summer, according to new research from R3.
The UK’s insolvency and restructuring trade body’s analysis of data provided by Creditsafe, shows North West businesses had 1,745,091 overdue invoices on their books over the summer months – with 566,558 in June, 583,133 in July and 595,400 in August.
Overdue invoice numbers in the North West increased by 5.2% in summer 2024 when compared to the same period in 2023, when 1,658,792 overdue invoices were recorded. This was the fifth largest yearly rise by percentage of all the UK’s regions and nations, surpassed only by the West Midlands (45.8% rise), Scotland (29%), Greater London (9%), and the South West (8.6%).
Fran Henshaw (pictured) chair of R3 in the North West, said: “While the rise in overdue invoices in the North West has been more modest compared to other regions, it remains a warning sign of the financial strain many businesses in the region are still facing. Costs are continuing to rise, albeit at a slower pace, and it’s becoming increasingly more difficult to pass on these extra costs to customers or to cut back in other ways.
“As a result, businesses are experiencing tighter margins and cash flow challenges, making it harder to keep up to date with the payments they owe.”
More than 169,300 North West businesses reported that they had invoices which had gone past their payment date on their books this summer – with 55,946 in June, 56,418 in July and 56,985 in August. This is 4.7% higher than the same period in 2023 (161,723) and was the third largest yearly increase of all the UK’s regions and nations.
Fran, who is head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “The number of companies failing to pay bills on time has steadily increased since the beginning of the year and this is creating a growing financial pressure for businesses across the North West.
“Without a consistent improvement in payment practices or cash flow, many companies may find it increasingly difficult to manage their debt and maintain operations, and we could see more and more businesses turning to a formal insolvency solution as a result.
“I would urge business owners and directors that are struggling to manage their cash flow to seek advice as soon as they can. Taking that first step can be hard, but by having the conversation early, you will have more time and more options available to you than if you’d waited for the problem to get worse.”
