A growing number of firms in the South West are struggling to pay bills on time, according to new research.
Restructuring trade body R3 said businesses across the region South West had more than 462,700 invoices on their books that had gone past their payment deadline in May - nearly 14,000 more than in April.
The organisation said data it had seen, provided by Creditsafe, suggested there were 243 more South West businesses with outstanding invoices in May (43,499) than in April (43,256).
R3 said it had recorded 96 insolvency-related activities in the South West, including liquidator appointments, administrator appointments and creditors’ meetings. It said this represented a fall to levels not seen since January, and was down from 116 in April.
Despite this reduction, Charlotte May - chair of R3 in the South West - said the rise in late payments was an indication that suggested businesses in the region were “really struggling”.
Ms May said: “There are a worrying number of businesses that have outstanding invoices, which not only suggests they’re showing one of the first signs of financial distress – it can also have a knock-on effect on those awaiting payment.”
Ms May, who is insolvency litigation financing firm Manolete’s associate director for South West and Wales, added: “In the current climate, more and more businesses are finding themselves in an uphill battle working against rising costs and with consumers reluctant to spend on anything other than the basics.
“My advice to anyone running a business is that if they see it’s financially distressed or they’re worried about its finances or ability to make payments to suppliers, they should seek advice at the earliest possible opportunity. Doing so will give them more options for resolving their situation and more time to make a decision about their next steps.”
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