Nearly five times as many Welsh businesses were set up in May than in January, according to new research from R3, the insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe showed that the number of start-ups in Wales has risen from 1,659 in April to 1,798 in May – and is now 4.8 times larger than January’s statistic of 372.

However, the research also revealed late payment in Wales is increasing, with Welsh businesses having 229,934 invoices on their books that had gone past their payment deadline in May – nearly 3,500 more than April’s figure of 226,463.

In the same month, 20,059 companies in Wales paid their invoices late, up by 0.4% from April’s figure of 19,983 – although Wales saw the lowest monthly percentage increase in late payments when compared to the other regions and nations in the UK.

R3 Chair for Wales Charlotte May comments:

“Although it’s fantastic to see entrepreneurial spirit so high in Wales, there are other economic indicators which suggest the business climate is tough.

“A worrying number of businesses are paying their invoices late. Not only is this a sign they could potentially be financially distressed, but it can also have a knock-on effect on those awaiting payment.”

Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol continues:

“In the current climate, more and more businesses are finding themselves in an uphill battle as their costs increase and consumers don’t have the spare cash to spend on non-necessities.

“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.”