Overdue payments hit year peak in October
Overdue invoices in Scotland have reached a new high for the year, indicating a growing level of concern over cash flow through the supply chain.
Analysis by insolvency and restructuring trade body R3 of data provided Creditsafe shows the number of invoices in Scotland that have gone past their payment deadline rose to 593,114 in October.
This is the highest recorded monthly figure in 2022, and 13,941 more than September’s figure of 579,173.
The monthly rise in late payments has been mirrored across the UK, with the South East of England and Scotland seeing the biggest jump between September and October rising 4.1% and 2.4% respectively.
The number of Scotland-based firms with overdue invoices on their books has also risen, with 101,835 companies failing to meet payments on time between August and October – an increase of 1,016 companies from the previous three months.
Richard Bathgate, chair of R3 in Scotland, said: “The increase in late payments we’ve seen in October 2022 suggests that more and more businesses are either financially distressed or potentially concerned about their cash flows and that more businesses – those on the receiving end of the late payment – are going to potentially have issues paying their own staff and suppliers.”