Latest research from the Midlands branch of national insolvency and restructuring trade body R3 reveals a steady rise in the number of East Midlands companies with invoices overdue for payment.
The statistics, which are based on an analysis of data from business intelligence provider Creditsafe, show that over 26,800 East Midlands companies had overdue invoices in August, a figure which has risen steadily since April of this year.
The R3 report also indicates that monthly insolvency-related activities in the East Midlands have risen from 62 at the start of the year to 102 in August. These figures include liquidator and administrator appointments as well as creditors’ meetings, indicating the extent to which local companies may be struggling.
The region’s entrepreneurial spirit appears not to have been dampened, however, as there were 2,279 business start-ups in the East Midlands in August, an 8.0% increase on the July figure of 2,110 but a 7.2% decrease on the 2,457 at the beginning of the year.
R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, 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 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.”
