Overdue invoices in Scotland hit 2024 high – Scottish Business News

THE number of overdue invoices in Scotland has reached its highest level this year, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows that businesses in Scotland had 538,172 unpaid invoices on their books last month – the highest monthly total in 2024 so far.

Overdue invoices in Scotland increased by 27.7% in July 2024 when compared to July 2023’s figure of 421,501.

Scotland saw the second highest yearly rise in overdue invoices of all the regions and nations in the UK in July, preceded only by the West Midlands which saw a rise of 45.8%.

Richard Bathgate, Chair of R3 in Scotland, commented: “The yearly rise in overdue invoices in Scotland reflects the continued cost pressures businesses have faced this year.

“The costs of rent, raw materials and wages are rising, and these increased expenses have made it increasingly difficult for businesses to stay on top of their bills, and there’s a real concern this trend could lead to a domino effect and push even more companies into financial difficulty.

“If this trend continues, we could see more and more Scottish businesses turning to a formal insolvency solution as they struggle to manage mounting debt.”

The number of companies with overdue invoices on their books in Scotland also rose by 18.4% year-on-year in July, from 31,014 in July 2023 to 36,733 in July 2024. This was the largest yearly rise of all the UK’s regions and nations.

Richard, who is Restructuring Partner at Johnston Carmichael in Aberdeen, continues: “Paying your suppliers late is just one of the key indicators of financial distress. I would urge business owners and directors that are seeing their debt levels rise to seek advice as soon as they can from a qualified professional.

“Most R3 members in Scotland will be happy to provide a free initial consultation so you can explain the challenges you’re facing, and help you understand the best course of action for you and your business.”