The monthly number of East Midlands businesses with late payments on their books has fallen for the first time this year, while there has also been a drop in insolvency activity in the region.
According to the Midlands branch of R3, the UK’s insolvency and restructuring trade body, the quantity of East Midlands companies with unpaid invoices past their due date fell to 24,145 in September, which is the region’s lowest number for 2024. It is also the lowest figure for the month across all English regions, except for the North East.
R3’s figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show a decrease in insolvency activity in the East Midlands, which includes liquidator and administrator appointments as well as creditors’ meetings.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “There are signs that the local economy is shifting from a period of high inflation, stagnation and recession to conditions which are more favourable for growth.
“We have seen retail sales rise over the summer, and the construction and tourism sectors have also received a boost. However, despite some improvement in the local economic picture, there are still significant obstacles to overcome as we head into the critical pre-Christmas trading period.
“It is therefore absolutely crucial for both new and longer-established businesses to keep a careful eye on cashflow and to plan ahead. As soon as any significant financial difficulties arise, professional advice should be sought so that rescue options can be maximised.”
