Drop in late payments ‘makes for cautious optimism’, R3 says

An increase in the number of East Midlands start-up businesses and a drop in the number of companies with late payments makes for cautious optimism amidst a sluggish UK economy, UK insolvency and restructuring trade body R3 has said.

According to research by R3’s Midlands branch, 3.7% more companies were established in the East Midlands last month compared to April (2422 compared to 2335).

R3 Midlands’ figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show that the number of East Midlands companies with late payments on their books fell over the same period.

R3 Midlands chair Stephen Rome, a director at law firm Thursfields, said: “These are encouraging statistics for our region and show that there is still scope for growth in the current environment.

“The decrease in the number of local businesses with late payments is further positive news, particularly as the business economy is still facing the challenges of stubbornly high inflation, rising costs of materials and wages as well as a squeeze on consumer spending.

“Should significant cash flow difficulties arise, however, it’s crucial for business owners to take relevant professional advice. There is a significant amount which can be done to rescue and support local businesses, beyond traditional insolvency solutions, if help is taken early enough.”