The number of outstanding invoices owed to North West firms has increased for the second month in a row according to new research from R3, the insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe reveals that the number of invoices past the payment deadline on North West companies’ books increased from around 748,600 in March to 772,200 in May.
However the number of companies in the region which themselves had overdue bills – a key sign of business distress – has increased more slowly, from almost 59,000 to 59,500.
Meanwhile the number of insolvency-related activities – which includes North West companies and also creditor meetings – has declined sharply, from a peak of 815 in March to 285 in May.
R3’s North West chair Allan Cadman, who is also a partner at insolvency firm Poppleton & Appleby, says: “Rising costs and interest rates are the latest in a long line of economic shocks facing UK businesses and not surprisingly, some are delaying paying their bills as they attempt to ride out the current economic turbulence.
“But having problems paying suppliers is a key indicator a business is financially distressed, so we would urge any director who is in this situation – or is worried about their business – to seek advice from a qualified source as soon as possible.
“Talking about your worries about your business is an incredibly hard thing to do, but having that conversation while your worries are fresh and these problems are relatively new will give you more options for improving your situation and more time to take a decision about your next step than if you’d waited until the problem had worsened.”
