The number of overdue invoices in the North West has reached its highest level this year, 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 had 583,133 unpaid invoices on their books last month – the highest monthly total in 2024 so far.
Overdue invoices in the North West increased by almost 28,000 in July 2024 when compared to July 2023’s figure of 555,144 – a rise of 5%.
Fran Henshaw, Chair of R3 in the North West, says: “The yearly increase in overdue invoices in the North West reflects the continued cost pressures businesses have faced this year.
“Rent, raw materials and wages are rising, and these increased expenses have made it very difficult for businesses to stay on top of their bills, and there’s a real concern this trend could lead to a domino effect and push even more companies into financial difficulty.
“If this trend continues, we could see more and more businesses in the North West turning to a formal insolvency solution as they struggle to manage mounting debt.”
The number of companies with overdue invoices on their books in the North West also rose by 4.7% year-on-year in July, from 53,905 in July 2023 to 56,418 in July 2024. This was the second largest yearly rise of all the UK’s regions and nations, surpassed only by Scotland which saw an increase of 18.4%.
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “Paying your suppliers late is just one of the key indicators of financial distress. I would urge business owners and directors that are seeing their debt levels rise to seek advice as soon as they can from a qualified professional.
“Most R3 members in the North West will be happy to provide a free initial consultation so you can explain the challenges you’re facing, and help you understand the best course of action for you and your business.”
