Nearly half (43%) of Welsh businesses are owed payment on invoices that are over 30 days past due and 13% say they are regularly using their maximum overdraft facility, according to new research by insolvency trade body R3.

Ross Connock, chair of R3 in Wales and director at PwC, said:

“Wales’ late payment problem is a persistent one, and puts unnecessary strain on the finances of businesses. Companies having to wait too long to receive money owed can have a harmful knock-on effect not only on their own business but further down their supply chain too. This practice may also be responsible for pushing many businesses into relying on their overdraft facilities..”

The finding is from R3’s latest Business Distress Index, a long-running survey of business concerns and growth prospects carried out by BDRC Continental.

The latest survey also reveals 52% of Welsh businesses are experiencing business expansion, up significantly from 9% in April of this year and a much higher percentage than the UK-wide average of 30%.

Ross continues: