A rise in companies with late payments on their books, as well as a steep fall in the number of new businesses being set up in the region, is indicating a further toughening of the local economy.
This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on an analysis of data from business intelligence provider Creditsafe.
R3’s figures show that the number of East Midlands companies with invoices overdue for payment increased from a sizeable 23,194 at the start of the year to 24,258 last month.
Over the same period, the number of invoices which had gone past their payment date in the region shot up from 204,216 to 216,533.
The tightening up of the local economy is also indicated by a dampening of entrepreneurial spirit, with the number of East Midlands start-ups falling by 25.68% from 2,995 in January to 2,226 in August.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “There will be very few local companies finding the current trading conditions favourable, and these latest research figures back this up.
“While we have seen some economic improvements in recent months, driven mainly by a successful summer of sport and increased political stability following the General Election, doing business remains tough.
“There is a glimmer of positivity on the horizon, however, with the Bank of England expected to cut interest rates later this year and potential for further growth in GDP, but continuing economic uncertainty could overshadow these opportunities.
“R3 would urge any local businesses struggling financially to seek advice as soon as possible. Most R3 members offer a free initial consultation to explore potential solutions for any significant financial issues.”
