East of England has UK’s lowest rate of late payment, says R3 survey

R3 Eastern chairman Frank Brumby.

R3 Eastern chairman Frank Brumby. - Credit: Archant

Businesses in the East of England are the least likely in the UK to be victims of late payment, research by insolvency trade body R3 shows.

Only around one-in-seven (13%) of the region’s firms have invoices more than 30 days overdue, which is eight points below the national average of around one-in-five (21%). The South West and South Wales have the highest ratio of unpaid invoices, standing at more than two-in-five (41%).

R3 Eastern chairman Frank Brumby, a director at Isadore Goldman in Norwich, said: “It is positive to see that the late payment problem is less of an issue for our region than for others across the UK, but it still remains a persistent barrier to growth.

“In April this year, an R3 survey found that East of England businesses had almost one-in-six (16%) of their invoices paid late. With earlier R3 research finding that late payment is a primary or major factor in a similar number (20%) of corporate insolvencies, more needs to be done to eradicate this practice.

“R3 recognises that the government is keen to make an impact on late payment with new guidelines and business campaigns, but progress has been slow over 2014 and 2015. A stricter and more effective line now needs to be taken.”