The number of Welsh companies with overdue invoices on their books reached a 2024 high in September, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows that 18,360 Welsh businesses had unpaid invoices on their books last month – the highest monthly total of the year so far.
The number of Welsh firms with overdue invoices on their books rose by 3.7% in September 2024 when compared to September 2023’s total of 17,709.
Bethan Evans, Interim Chair of R3 in Wales, says:
“The rise in businesses failing to pay their bills on time is a clear sign that economic recovery in Wales is still fragile.
“While some sectors may be bouncing back, many firms are still grappling with the ongoing effects of rising costs, wage pressures, and reduced consumer spending, which is making it harder for them to manage their cash flow effectively.”
The number of overdue invoices in Wales also reached a 2024 high in September, with a total 145,687 recorded. This is a slight yearly rise of 0.3% when compared to September 2023’s total of 145,273.
Bethan, who is a partner at Menzies LLP, continues:
“Wales’s business debt burden has crept up every month since March and this is creating a growing financial pressure for businesses.
“Without a consistent improvement in payment practices or cash flow, many companies may find it increasingly difficult to manage their debt and maintain operations, and we could see more and more businesses in Wales turning to a formal insolvency solution as a result.
“I would urge business owners and directors that are seeing their debt levels rise to seek advice as soon as they can from a qualified professional. Most R3 members in Wales will be happy to provide a free initial consultation so you can explain the challenges you’re facing, and help you understand the best course of action for you and your business.”
