Businesses in Wales had 84,451 fewer unpaid invoices on their books in July 2023 than July 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 Wales have fallen from 233,925 in July 2022 to 149,474 in July of this year – a drop of 36.1% year-on-year.
Wales’s year-on-year reduction in overdue invoice numbers was the third largest of all the nations and regions in the UK, falling only behind the South West (37.1% fall) and the East Midlands (36.8%).
And the number of companies in Wales with invoices that had gone past their payment deadline on their books also fell by 11.6% year-on-year – from 20,170 in July of last year to 17,828 in July 2023.
Charlotte May, Chair of R3 in Wales, said “Welsh firms’ payment practices have improved dramatically over the last year and since the start of 2023, with more than 12,700 fewer overdue invoices last month than in January, and 458 fewer companies reporting late payments on their books last month compared to the first month of this year.”
“However, it’s important to note that the late payment figures in Wales are still high and reflect the tough trading conditions that the country’s businesses are currently facing.”
Charlotte, who is Associate Director for South West and Wales at Manolete, continues: “Paying invoices late can be an early warning sign that a business might be in difficulties and I would urge any directors or business owners facing these or facing other financial challenges to be proactive and seek advice as early as possible.”
“Speaking to a professional when your concerns are at an early stage gives you more time to take a decision and more potential solutions for resolving your concerns than if you’d waited until the situation escalates.”