A late summer fall in the number of West Midlands businesses with overdue creditor payments, as well as a decrease in insolvency-related activity, could indicate a much-needed boost for the local economy heading into the final quarter of 2025.
This is according to the Midlands branch of national restructuring, turnaround and insolvency trade body R3, and is based on an analysis of data from business intelligence provider Creditsafe.
R3’s figures show that the number of West Midlands businesses with invoices overdue for payment dropped from 50,986 in July to 48,775 in August, while the quantity of debts owed by liquidated firms in the region fell by a sizeable 10.83 per cent over the same time period.
There was also a month-on-month decrease in insolvency-related activity between July and August, with fewer liquidator and administrator appointments as well as creditors’ meetings.
R3 Midlands chair Stephen Rome, a partner at Penningtons Manches Cooper in Birmingham, said: “It’s encouraging to see the local economy tightening up on the all-important business cashflow, particularly as there is much speculation about tax rises in the Autumn Budget and how the Government will counter increased spending and a widening fiscal ‘black hole’.
“In recent months, however, while we have seen some economic improvements provide companies with a bit of breathing space for growth, there is no doubt that trade remains tough.
“R3 would urge any business owners struggling financially to seek advice as early as possible. Most R3 members offer a free initial consultation to explore potential solutions for any significant financial issues.”
