A challenging year for North East businesses saw them struggle with almost two million overdue invoices on their books last year, latest figures show.
The region’s companies saw a 3.4% rise in unpaid bills year-on-year, with the total number of overdue invoices creeping up to 1,872,510 in 2024, the research from R3, the Ƶ’s insolvency and restructuring trade body, revealed.
R3 analysed data provided by Creditsafe to reveal the figures, which showed that October proved to be the toughest month, with a total of 171,028 recorded during the month.
The number of North East companies feeling the strain of overdue invoices also rose to 150,126 in 2024 – an increase of 1.8% from 2023 when 147,473 firms recorded overdue invoices on their books.
Kelly Jordan, chair of R3 in the North East, said: “2024 was an incredibly challenging year for North East businesses.
“While a decline in inflation levels provided some relief by slowing the pace of rising costs, this was overshadowed by a host of other challenges.
“Ongoing supply chain disruptions made it harder for businesses to operate smoothly.
“High energy costs continued to squeeze profit margins, and political uncertainty surrounding the election left many unsure about the future.
“These difficulties were further compounded by new pressures introduced in the October budget, making it even harder for businesses to regain their footing.
“The combination of these ongoing pressures has left many businesses in the North East unable to meet payment deadlines and struggling to stay afloat.”
In 2024, the North East saw the sixth largest increase in the number of firms with overdue invoices on their books, when compared to the other Ƶ’s nations and regions, with Scotland seeing the largest rise, followed by Greater London and the North West.
Ms Jordan, who is a partner at Muckle LLP, added: “Over the past couple of years, many businesses struggled to pay their bills on time, and as conditions have not improved enough, these debts have snowballed.
“This has placed immense pressure on North East businesses, with more and more now unable to meet their payment deadlines amidst ongoing financial challenges.
“If conditions don’t improve early this year, we could see more companies facing even greater pressures, with some turning to insolvency processes to address their financial issues.”
