One in eight businesses suffer late pay issues
Problems with late invoice payments are still hitting one in eight regional firms, according to new research by insolvency and restructuring trade body R3.
The latest edition of R3’s regular Business Distress Index, which looks at measures of business success and distress across the UK, indicates that 12 per cent of firms in the North East, Yorkshire and Humberside are currently owed payment on invoices that are more than 30 days past their due date.
And Neil Harrold, chairman of R3 in the North East, is hoping the issues highlighted by the Carillion liquidation will act as a catalyst towards further action being taken to tackle poor business practices.
He said: “The impact of late-payment problems have been made more visible recently and despite a great deal of effort in recent years to improve business practice around paying suppliers on time, there is clearly much more that needs to be done.
“Late payments put unnecessary strain on the finances of businesses which can threaten their viability.
“Business owners need to stay on top of their invoice ledger and to tackle late payment issues as soon as they start to become apparent.”