East Anglian businesses are struggling against a tide of late payments as they themselves face mounting bills, insolvency experts have warned.

Research by regional insolvency trade body R3 Eastern shows the region's firms had more than 760,000 overdue invoices on their books in June 2022.

The figure has risen steadily this year - and by more than 4% since March, it said, as inflation soars to 9.4%.

Its report - based on analysis of data from business intelligence provider Creditsafe - found a notable increase in insolvency-related activities in the region.

Activities including liquidator and administrator appointments as well as creditors’ meetings rose by nearly 5% between May and June of this year as challenges mount for the region's companies.

R3 Eastern chairman Alistair Bacon said the cashflow problems firms were facing was only getting worse.

East Anglian Daily Times: R3 Eastern chairman Alistair BaconR3 Eastern chairman Alistair Bacon (Image: Alistair Bacon)

“Late payment is a key contributory factor in business insolvency, despite huge effort being made by professional bodies such as R3, policy makers and opinion formers to improve business practice around paying suppliers on time," he said.

“With the UK inflation rate spiralling upwards, along with the cost of raw materials, manufacturing and distribution, there is enormous pressure on business cashflow, which bears the added strain of rising fuel and utility costs and decreasing consumer confidence.

“Now, more than ever, it is crucial for business owners to ensure that they are in control of their invoice ledger and tackling late payment challenges as soon as they become apparent.

“If problems linked to late payment or any other cashflow issue arise, then the sooner business owners look for expert advice on what they can do to resolve them, the more options they will have for finding the best possible outcome.”