The number of invoices being paid after their due date in the South West fell by nearly 44% in October 2023 compared to the same period in 2022, according to new research from R3, the UK's insolvency and restructuring trade body.

R3's analysis of data provided by Creditsafe shows that overdue invoice numbers in the South West have fallen from 507,034 in October 2022 to 284,659 in September of this year – a drop of 43.9%.

The South West saw the largest year-on-year fall in overdue invoices of all the nations and regions in the UK, followed by the East Midlands (43% fall) and Wales (42.1% fall).

The number of companies with overdue invoices on their books in the South West also fell by 15.3% yearly, from 44,087 in October 2022 to 37,359 in October 2023.

Charlotte May, Chair of R3 in the South West, says: "We've seen a steady decline in the number of overdue invoices and the number of companies with overdue invoices on their books since the start of the year as the trading climate improves and businesses get better at paying their suppliers."

Charlotte, who is Associate Director for South West and Wales at Manolete, continues: "Despite the fall in overdue invoice numbers – to the point where 222,375 fewer invoices are being paid after their due date than this time last year – late payment is still an issue for businesses in the South West, and can be a sign that a business has become financially distressed.

"If payment deadlines are becoming an issue, or you're concerned about your business's finances, the best thing to do is to speak to a qualified advisor. Many R3 members in the South West are happy to provide a free initial consultation to learn more about your concerns and help you understand the options you have for resolving them."