Overdue invoices in Scotland drop to 2025 low

The number of overdue invoices on the books of Scottish businesses dropped to the lowest level in 2025 so far in April, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows Scottish businesses had a total of 602,822 overdue invoices on their books in April 2025 – the lowest monthly total in 2025 so far.

Overdue invoices numbers fell by 0.8% in April when compared to the previous month’s total of 607,492. Compared to the rest of the UK, Scotland was one of only four regions or nations to see a monthly fall in overdue invoice numbers, along with Yorkshire (0.9% fall), Northern Ireland (0.6%) and the North East (0.2%).
However, despite the fall compared to the rest of the 2025 figures, overdue invoice numbers in Scotland increased by 30.2% in April 2025 when compared to April 2024’s total of 462,933, and by 46.5% compared to April 2023, when 411,438 overdue invoices were recorded.

Tim Cooper, Immediate Past President of R3 and partner at international law firm Addleshaw Goddard, said “There’s no single reason behind the fall in overdue invoice numbers, but it suggests that on the whole, more businesses are being paid promptly and are managing their finances in a way that’s helping them avoid building up payment backlogs than there were at the start of this year.

“However, while the drop in overdue invoices compared to the previous three month’s figures is encouraging, this is only a modest drop against a significant and sustained increase in overdue invoices in the two years prior. We should therefore view these latest figures with caution: we don’t yet know whether this recent drop will continue or be short-lived.

“For smaller businesses in particular, being paid on time can make a real difference to cash flow and financial stability. A drop in late payments, even a modest one, is welcome and while this development won’t fix every challenge firms are currently facing, it may ease some pressure across the supply chain at a time when trading conditions remain tough.

“Cost pressures on businesses will have increased in April with the changes to Employers’ National Insurance and the minimum wage, and the impact of these extra costs, at a time when confidence and demand are already weak, may take some time to filter through to the data.
“My advice to businesses that are struggling with late payments or cash flow concerns is simple – seek advice and seek it as early as possible. Doing so gives you more time to assess your options and take action before those options are no longer available to you.”