Overdue invoices top 500k in North East as pressure mounts, R3 research shows

The number of overdue invoices on the books of North East businesses hit more than 500k in Q2 2025, according to new research from R3, the UK’s restructuring, turnaround and insolvency trade body.

R3’s analysis of data provided by Creditsafe shows there were 523,065 overdue invoices on the books of North East businesses in Q2 2025 - with 174,060 in April, 172,470 in May, and 176,535 in June. This is a rise of 16.5% compared to Q2 2024’s total of 448,802.

The North East saw the fourth highest rise in overdue invoice numbers between Q2 2024 and Q2 2025, preceded only by the West Midlands (28.8%), Scotland (24.5%) and Wales (16.6%).

Kelly Jordan, Chair of R3 in the North East, says: “The sharp rise in overdue invoices across the North East is a clear sign that increasing financial pressures are taking their toll on businesses. This trend is concerning because delayed payments can quickly escalate into wider cash flow problems, putting companies at real risk if they fail to take action early.

“Recent policy changes, like the hike in employers’ National Insurance contributions and the increased minimum wage, are undoubtedly squeezing margins further. Many businesses that were already operating under tight financial conditions are now being pushed closer to the edge, which helps explain why we are seeing such a marked increase in unpaid invoices compared to last year.”

The total number of North East companies with overdue invoices on their books also rose by 8.7% in Q2 2025 when compared to the same period last year, rising from 37,324 to 40,587.

Across the UK, every region saw a rise in the number of companies with overdue invoices on their books in Q2, with Scotland recording the largest increase at 14.7% and Northern Ireland the smallest at 3.3%.

Kelly, who is a partner at Muckle LLP, continues: “While overdue invoices alone do not tell the full story, they often precede more serious difficulties. We will have a better sense of how this UK-wide trend is feeding through to insolvency levels when the next set of monthly statistics is published later this month – but it is already clear that more businesses are feeling the strain.

“For business owners, recognising the early warning signs of financial distress is critical. If you are noticing issues like persistent late payments, growing debts, or difficulties meeting payroll obligations then it is more than likely time to seek professional guidance.

“R3 members in the North East typically offer a free initial consultation to help businesses assess their situation and discuss potential next steps.”