Welsh firms had more than 495,000 overdue invoices on their books this winter, new research from insolvency and restructuring trade body R3 has revealed.
R3’s analysis of data provided by Creditsafe shows 495,843 invoices were overdue in Wales over the winter months – with 171,798 in December, 162,185 in January and 161,860 in February.
Over 55,000 Welsh businesses reported that they had overdue invoices on their books this winter – a figure which peaked last month at 18,648– 2 per cent more than in January. The month-on-month increase in the number of firms with overdue invoices in Wales was one of the smallest among the regions and nations in the UK. Scotland saw the largest monthly increase (3.7%), followed by the North East (3.6% rise), the North East (2.5%), and Yorkshire and Humberside (2.6%).
Charlotte, Associate Director for South West and Wales at Manolete in Bristol
“Times are still tough for Welsh businesses as they battle rising costs and contend with cautious consumers.
“Both of these will have an effect on their cashflow levels and their ability to pay invoices on time, which might explain why Welsh firms had so many overdue invoices on their books this winter.
“Paying invoices late can be a sign of wider issues within the business, or that it’s financially distressed, and can have a negative knock-on effect on supply chains if the payment issues from one customer are passed on by the supplier to those they owe money to.”
Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol, continues:
“As a company director, keeping your business healthy should be your top priority, and you should be alert to any signs that issues may be arising.
“If your firm is having problems paying invoices, staff or suppliers, or you’re worried about its finances, that’s the time to seek advice from a qualified source. By doing so, you’ll have more time and more options open to you, so you can take a considered decision about your next steps.
“Business which are struggling to pay debts as they fall due will need to take serious consideration of their creditors as a whole in order to fulfil the duties owed as directors and we recommend seeking specialist advice.”
