North West overdue invoices rose by 13.4% this winter, R3 research shows

The total number of overdue invoices on the books of North West businesses rose by 13.4% this winter compared to the same period last year, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows there were 1,842,471 overdue invoices on the books of North West businesses over the winter months – with 597,784 in December, 621,149 in January and 623,538 in February. This was a rise of 13.4% when compared to the previous winter’s total of 1,624,871.

Looking at the wider UK picture, the North West had the third highest total number of overdue invoices over this winter, and saw the seventh largest yearly rise in overdue invoice numbers. Northern Ireland was the only location to see overdue invoices fall year-on-year.

Fran Henshaw, Chair of R3 in the North West, says: “The rise in late payments across the North West is a sign of the impact of the ongoing financial pressures faced by businesses in the region.

Many companies have been grappling with increased costs and lower consumer spending for some time now, and this has made it increasingly difficult for them to pay their bills on time.

“With the rise in Employers’ National Insurance, the increase in the minimum wage, and the energy price cap increase all coming into effect this April, these challenges could push some businesses to breaking point.”

The total number of North West companies with overdue invoices on their books also rose by 7.7% this winter when compared to the same period last year, rising from 160,080 to 172,340.

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues:

“The number of businesses failing to pay their bills on time hasn’t just risen since last winter, it’s continued to climb steadily since November 2024. With further changes to the financial landscape expected this April, there’s growing concern that businesses which aren’t preparing now could face significant challenges, and for some, this could lead to them becoming insolvent.

“If directors are worried about the health of their business, they shouldn’t wait to ask for help. When debts are piling up and you’re struggling to pay your bills on time, taking that first step to get support can feel really daunting. However, doing so at an early stage can give you more clarity to make the right decisions for the future of your business and may give you more options for resolving your concerns.”