Mersey Reporter - #Merseybites #News

THE number of overdue invoices on the books of North West businesses hit more than 1.8 million in Q2 2025, according to new research from R3, the UK's restructuring, turnaround, and insolvency trade body.

R3's analysis of data provided by Creditsafe shows there were 1,881,070 overdue invoices on the books of North West businesses in Q2 2025 - with:- 628,125 in April, 622,420 in May, and 630,525 in June. This is a rise of 12.5% compared to Q2 2024's total of 1,671,379.

Overdue invoice numbers also rose by over:- 9,000 in Q2 2025 when compared to Q1 2025's total of:- 1,871,844.

Fran Henshaw, Chair of R3 in the North West, says:- "The sharp rise in overdue invoices across the North West is a clear sign that increasing financial pressures are taking their toll on businesses. This trend is concerning because delayed payments can quickly escalate into wider cash flow problems, putting companies at real risk if they fail to take action early. Recent policy changes, like the hike in employers' National Insurance contributions and the increased minimum wage, are undoubtedly squeezing margins further. Many businesses that were already operating under tight financial conditions are now being pushed closer to the edge, which helps explain why we are seeing such a marked increase in unpaid invoices compared to 2024."

The total number of North West companies with overdue invoices on their books also rose by:- 7.3% in Q2 2025 when compared to the same period in 2024, rising from:- 166,693 to 178,878.

Across the UK, every region saw a rise in the number of companies with overdue invoices on their books in Q2, with Scotland recording the largest increase at:- 14.7% and Northern Ireland the smallest at:- 3.3%.

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues:- "While overdue invoices alone do not tell the full story, they often precede more serious difficulties. We will have a better sense of how this UK-wide trend is feeding through to insolvency levels when the next set of monthly statistics is published later this month, but it is already clear that more businesses are feeling the strain. For business owners, recognising the early warning signs of financial distress is critical. If you are noticing issues like persistent late payments, growing debts, or difficulties meeting payroll obligations then it is more than likely time to seek professional guidance. R3 members in the North West typically offer a free initial consultation to help businesses assess their situation and discuss potential next steps."

Liverpool (Gladstone)

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