Overdue invoices in the South West hit 2024 high

The number of overdue invoices in the South West has reached its highest level this year, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows that businesses in the South West had 333,244 overdue invoices on their books in September – the highest monthly total in 2024 so far.

And compared to 12 months ago, overdue invoices in the South West increased by over 46,000 compared to September 2023’s figure of 286,750. The year-on-year increase of 16.2% in the South West was the third largest of all the UK’s regions and nations, preceded only by the West Midlands (55.4% rise) and Scotland (39.3%).

Bethan Evans, interim cChair of R3 in the South West, says: “The yearly uptick in overdue invoices in the South West reflects the continued cost pressures businesses have faced this year.

“Rent, raw materials and wages are rising and these increased expenses have made it increasingly difficult for businesses to stay on top of their bills, and there’s a real concern this trend could lead to a domino effect and push even more companies into financial difficulty.

“If this trend continues, we could see more and more businesses in the South West turning to a formal insolvency solution as they struggle to manage mounting debt.”

In September, the total number of companies with overdue invoices in the South West reached 37,829 – a fall of 0.6% compared to August’s total of 38,072, but 1.1% higher than the 37,402 recorded in September 2023.

Bethan, who is a partner at Menzies LLP, continues: “Paying your suppliers late is just one of the key indicators of financial distress. I would urge business owners and directors that are seeing their debt levels rise to seek advice as soon as they can from a qualified professional.

“Most R3 members in the South West will be happy to provide a free initial consultation so you can explain the challenges you’re facing, and help you understand the best course of action for you and your business.”