The number of outstanding invoices owed to North West firms has increased for the fifth month in a row, according to new research from the insolvency and restructuring trade body R3.
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 748,700 in March to almost 817,600 in September – a rise of over nine per cent.
The number of companies in the region which themselves had overdue bills – a key sign of business distress – also increased, albeit more slowly. Almost 59,000 companies were behind with their bills in March, rising to 60,320 in September – an increase of just over two per cent.
R3’s North West chair Allan Cadman, who is also a partner at insolvency firm Poppleton & Appleby, says: “At a time when many businesses were expecting to have bounced back after the pandemic, they are now facing further challenges in the form of rising interest rates and costs and a squeeze on household spending.
“Not surprisingly, late payments are on the increase as are the number of firms falling behind with their bills. We would urge businesses to ensure they have good credit control procedures in place to protect their own cashflow.
“Those companies which are themselves behind with the bills should review their situation, as problems paying suppliers is a key indicator of financial distress. Directors worried about the financial health of their business should seek professional advice so they can tackle any issues as early as possible.”
