Insight
More than 1.8 million overdue invoices in the North West in Q1, R3 research shows
- Published on: 02/05/2025
The total number of overdue invoices on the books of North West businesses hit more than 1.8 million in Q1 2025, 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 1,871,844 overdue invoices on the books of North West businesses in Q1 2025 – with 621,149 in January, 623,538 in February, and 627,157 in March. This is a rise of 14.8% compared to Q1 2024’s total of 1,630,659.
Looking at the wider UK picture, the North West saw the third highest number of overdue invoices, surpassed only by Greater London which saw figures reach as high as 2.8 million, and the West Midlands (2.6 million).
Fran Henshaw, Chair of R3 in the North West, says: “Late payment levels in the North West have been high for some time, but the surge this quarter is a stark reminder of how financial pressures are escalating for local businesses.
“Cost increases that came into effect at the start of this month, including rises to Employers’ National Insurance and the minimum wage have been a major concern for businesses over recent months. Now that they’re here, there’s a real risk they could push more firms into cash flow difficulties, particularly in sectors already running on tight margins like construction, hospitality and retail.”
The total number of North West companies with overdue invoices on their books also rose by 7.3% in Q1 2025 when compared to the same period last year, rising from 161,783 to 173,664.
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “It’s concerning to see not just that overdue invoice numbers are rising, but more businesses are finding themselves with overdue invoices on their books. When more companies are struggling to pay their bills on time, it has a knock-on effect across supply chains and makes it harder for others to stay on top of their own finances.
“April could be a turning point for many businesses, and it’s crucial that directors know how to spot the early signs of financial distress. If you’re noticing problems like rising late or missed payments, falling margins, or mounting pressure from creditors, then it’s likely time to speak to a professional. Seeking advice as soon as these issues arise can provide clarity, more time to address the situation, and potentially more options for resolving your concerns.”
