West Midlands businesses hit by bad debts high – R3 Midlands
Latest research from the Midlands branch of national insolvency and restructuring trade body R3 reveals the West Midlands has the highest number of companies impacted by bad debts outside of Greater London and the North West.
The R3 report also indicates that the 382 bad debts held by West Midlands companies in August is the highest number for the region since the start of 2022 and a 61.9% increase on the July figure of 236.
Further findings from the R3 statistics, which are based on an analysis of data from business intelligence provider Creditsafe, show that over 51,000 West Midlands companies had invoices overdue for payment in August, a figure which has risen steadily since April of this year.
The region’s entrepreneurial spirit appears not to have been dampened, however, as there were 5,726 start-ups in the West Midlands in August, a 1.5% increase on the July figure of 5,643 and a significant 258% increase on the 1,599 at the beginning of the year.
R3 Midlands chair Eddie Williams, a partner at PwC in Birmingham, said: “These statistics highlight the tremendous challenges facing local companies trading in this current economic climate. While the increasing number of start-ups in the region is positive, it is obvious that late payments and bad debts are likely to be a significant threat as businesses deal with the significant inflationary challenges ahead.
“It is crucial for local business owners, whether in start-ups or established companies, to be on top of their invoice ledgers and tackle late payments and the impact of bad debts as soon as they become evident.
“For those businesses which are already struggling, or whose directors may be worried about its 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 consultation to those who are looking for such help and want to explore their options.”