Revealed: One fifth of Yorkshire firms owed overdue invoices

New research from insolvency trade body R3 has revealed that 21% of businesses across Yorkshire and the Humber and the North East are awaiting payment for invoices that are more than 30 days past due.

Nationally, manufacturing saw the highest percentage of businesses owed late payments, at 27%, followed by services at 22% and distribution and retail at 13%.

R3’s Yorkshire chair, Adrian Berry, who is a partner with professional services firm Deloitte LLP, said of the discovery: “The late payment problem is a persistent one and not only for businesses in Yorkshire but across the UK and puts unnecessary strain on the finances of businesses.

“Businesses having to wait too long to receive money owed can have a harmful knock-on effect not only on their own business but further down their supply chain too.”

The findings were made as R3 commissioned its latest Business Distress Index, which is carried out by market research firm BDRC Continental.

Elsewhere, the research found that fewer of the region’s enterprises are experiencing expansion compared to earlier in 2015. 19% of respondents said their business is currently growing, down from 21% in April.

Adrian continued: “The rise in the proportion of businesses in a position to expand is a positive indicator.

“However, with businesses looking to expand, cash-flow becomes increasingly important and late payment can needlessly jeopardise access to cash.”

He added: “Being paid late and being paid inconsistently prevents businesses from being able to plan ahead with confidence.”

Businesses in Yorkshire and the Humber and the North East also reported record low distress levels. Just 18% of the region’s companies said they were experiencing signs of business distress, such as decreasing profits, new redundancies and maxed-out overdrafts.

For the rest of the UK, 28% of businesses were found to be experiencing distress indicators.

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