Businesses in the South West had 141,412 fewer overdue invoices on their books in April 2023 than in April 2022, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows that there were 311,232 overdue invoices in the South West last month, compared to April 2022’s figure of 452,644 – a yearly fall of 31.2%.
The South West’s year-on-year reduction in overdue invoices was the third highest of all the regions and nations in the UK, with only the East Midlands (32.5% fall) and Wales (32.1% fall) showing a greater drop in numbers.
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Charlotte May, chair of R3 in the South West, said: “The South West’s debt burden has fallen steadily since the end of 2022 – with more than 49,500 fewer overdue invoices last month than in December, and more than 19,000 fewer overdue invoices last month since February.
“This is encouraging news, and suggests more businesses have better control of their cash flow and their payment practices.”
Ms May, who is associate director for South West and Wales at Manolete, continued: “However, overdue invoices are one of the first signs a business could be struggling, and it’s not a problem that goes away on its own, so we urge any director whose firm is having problems paying its invoices on time or is worried about its finances to seek advice as soon as possible.
“By speaking to a professional at an early stage, you’ll have more time and more options available to you than if you’d waited until the issue had spiralled.”
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