The number of invoices being paid after their due date in Northern Ireland fell more than 35% in September 2023 compared to the same period in 2022, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows that overdue invoice numbers in Northern Ireland have fallen from 103,836 in September 2022 to 67,272 in September of this year – a drop of 35.2%.
All of the UK’s regions and nations saw a yearly fall in the number of overdue invoices, with the South West seeing the largest fall (42.4%) and Scotland seeing the smallest (27.3%).
The number of companies with overdue invoices on their books in Northern Ireland also fell by 13% yearly, from 9,273 in September 2022 to 8,068 in September 2023.
Ian Leonard, Chair of R3 in Northern Ireland, said “Compared to this time last year, there were nearly 36,600 fewer invoices paid after their due date in Northern Ireland last month. “This is an impressive number, and suggests cash flow management is improving among businesses in Northern Ireland.”
“Even though a number of wider economic challenges remain prevalent, the overall business climate appears to be improving. Inflation is easing, the economy is growing and the mood in the business community is more confident. It’s clear that many firms are now feeling stronger in their position than they have previously and may mean they have been able to tighten up their payment processes as a result.”
“Despite the fall in numbers, late payment is still an issue for businesses in Northern Ireland – and can be a sign that a business has become financially distressed.”
“If payment deadlines are becoming an issue, or you’re concerned about your business’s finances, the best thing to do is to speak to a qualified advisor.”