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Business News Wales
a day ago
- Business
- Business News Wales
Overdue Invoices in Wales Hit 26-Month High
The number of overdue invoices on the books of Welsh businesses hit a 26-month high in April 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 156,775 overdue invoices on the books of Welsh businesses in April 2025 – the highest on record since February 2023's figure of 161,860, and a 19.2% increase on April 2024's total of 131,272. Overdue invoice numbers have risen consistently since November 2024, and April's figures were 1% higher than March's total of 155,279. Bethan Evans, Chair of R3 in Wales, said: 'Late payment levels in Wales have been high for some time, but their rise to the highest point in more than two years is a stark reminder of how difficult trading conditions have become. Late payment levels are now higher than they were in 2023 and 2024, when many businesses were grappling with the aftermath of COVID, rising costs, and the impact of the cost-of-living crisis. 'Further cost increases came into effect at the start of last month, including rises to Employers' National Insurance and the minimum wage, and these 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 Welsh companies with overdue invoices on their books also rose by 5.8% in April 2025 when compared to the same period last year, rising from 17,849 to 18,879. Bethan, who is a partner at Menzies LLP, continued: '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 was 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.'
4 days ago
- Business
Overdue invoices in Wales reach 26-month high, warns insolvency trade body
THE NUMBER of overdue invoices owed by Welsh businesses has surged to a 26-month high, according to new data released by R3, the UK's insolvency and restructuring trade body. R3's analysis of Creditsafe figures reveals that Welsh firms had 156,775 overdue invoices on their books in April 2025 – the highest monthly total since February 2023, when the figure stood at 161,860. This marks a 19.2% increase compared to April 2024, when the total was 131,272. Overdue invoices have been rising steadily since November 2024, with April's figure up 1% from March's total of 155,279. Bethan Evans, Chair of R3 in Wales and a partner at Menzies LLP, said: 'Late payments have been a persistent issue in Wales, but the fact they've now reached the highest point in over two years underlines just how tough trading conditions have become. These levels are now exceeding those seen in 2023 and 2024, when many businesses were still recovering from the pandemic, facing soaring costs, and grappling with the wider cost-of-living crisis.' Evans noted that new financial pressures came into effect in April, including increases to the National Minimum Wage and Employers' National Insurance contributions. 'These additional costs are likely to exacerbate cash flow challenges, particularly for sectors already operating on thin margins – such as construction, hospitality, and retail,' she added. The number of Welsh companies with overdue invoices has also climbed. In April 2025, 18,879 businesses reported overdue payments – a 5.8% increase on the 17,849 recorded in April 2024. Evans warned that the ripple effects of late payments could be far-reaching: 'When more businesses struggle to pay their bills on time, it disrupts supply chains and increases the financial strain on others. April marked a critical point for many companies, and it's vital that directors can spot the early signs of financial distress. 'If you're seeing warning signs – such as rising late or missed payments, shrinking margins, or mounting pressure from creditors – it's time to seek advice. Acting early can offer a clearer path forward, more options, and a better chance of resolving financial difficulties.'
