Latest monthly research from the local branch of national insolvency and restructuring trade body R3 reveals that the Midlands is the UK region with the highest number of companies with late payments outside Greater London.
R3’s figures for September, which are based on an analysis of data from business intelligence provider Creditsafe, show that 78,601 Midlands companies had invoices on their books last month which were overdue for payment.
The R3 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. In the West Midlands, the number of start-ups in September decreased to 5032 from August’s figure of 5726.
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.”
