Late payments surge in Wales, hitting highest level in over two years
Late payments surge in Wales, hitting highest level in over two years
Welsh businesses are facing a growing cash flow crisis as the number of overdue invoices reached a 26-month high in April 2025, according to new data from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of figures from business intelligence provider Creditsafe reveals that 156,775 invoices were overdue in April — the highest number since February 2023, when the total stood at 161,860. This marks a 19.2% increase from the 131,272 recorded in April 2024, and a 1% rise from March 2025.
The number of late invoices has climbed steadily since November 2024, underscoring growing pressure on businesses amid rising operational costs and sluggish payment practices.
Bethan Evans, Chair of R3 in Wales and a partner at Menzies LLP, described the trend as a “stark reminder” of worsening trading conditions. “Late payment levels are now higher than during 2023 and 2024, when many businesses were still recovering from COVID-19, inflationary pressures, and the cost-of-living crisis,” she said.
Evans noted that new cost burdens introduced in April — including increases to Employers’ National Insurance contributions and the National Minimum Wage — are exacerbating financial strain, particularly in vulnerable sectors like construction, hospitality and retail. “These changes have been a major concern, and their arrival could push more businesses into cash flow trouble,” she warned.
In addition to the rising number of overdue invoices, more companies are now being affected. The number of Welsh businesses with overdue payments on their books rose to 18,879 in April 2025, up 5.8% from 17,849 a year earlier.
Evans cautioned that the broadening impact of late payments could ripple across supply chains. “When more companies can’t pay their bills on time, it creates a domino effect that can destabilise entire networks of businesses,” she said.
She urged company directors to stay vigilant for early warning signs of financial distress — including late payments, falling margins and creditor pressure — and to seek professional advice promptly. “Early intervention can provide clarity, more time, and often more options to turn things around,” she added.
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