Challenging trading conditions lead to rise in late payments

The Midlands is home to the largest number of companies with late payments outside Greater London, new figures reveal.

New research by the insolvency and restructuring trade body R3 shows that 78,601 Midlands companies had invoices on their books last month which were overdue for payment.

R3 based the figures on an analysis of the data carried out by business intelligence provider Creditsafe.

The research also indicates that local entrepreneurs are becoming more cautious, with the number of East Midlands start-up companies falling to 2030 in September from 2279 in August.

R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “This research indicates the negative impact of the current economic climate on local businesses.

“Trading conditions are proving to be extremely challenging, not least because we are heading into the winter with rising supply and energy costs on top of a market which is still recovering from the effects of the pandemic.

“For those business owners with significant concerns about their situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free initial consultation to those who are looking for such help and want to explore their options.”