Late payment pressures are increasing for East Anglian businesses, with more than 1.6 million overdue invoices recorded in the region during the third quarter of 2026, according to R3’s latest Business Health report.
The report, based on Creditsafe data, found there were 1.6 million overdue invoices in East Anglia in Q3 2026, a 6% increase compared with the same period last year and a 56% rise on the previous quarter when there were 1.03 million.
Meanwhile, East Anglia recorded the largest year-on-year fall in insolvency-related activity of any UK region with a 10% decline to 882 cases last quarter compared to 978 cases in Q3 2025. Activity was also down by 4% on the previous quarter.
R3 Eastern Chair, Hayley Watson, an appointment-taking director at FRP Advisory in the region, said:
“The rise in overdue invoices is a real concern and shows the scale of the challenge facing businesses when it comes to getting paid on time.
“Late payments can have a significant impact on a company’s cashflow and its ability to pay staff, suppliers and other bills, particularly when businesses are already dealing with high operating and employment costs.
“It’s encouraging that insolvency-related activity in East Anglia has fallen, but that shouldn’t obscure the ongoing financial pressures businesses are facing ranging from higher energy and employment costs, to expensive borrowing and cautious consumer demand.
“Directors need to keep a close eye on cashflow and credit control. If customers are taking longer to pay, cash reserves are reducing or the business is struggling to meet its financial commitments, seeking professional advice from an R3 member as early as possible will give you more options for resolving the situation.”
Nationally, R3’s report found that overall insolvency-related activity remained broadly stable, with 6,939 cases in Q3 2026, similar to the same period last year when there were 6,912.
Construction remained the sector with the highest level of insolvency-related activity, while wholesale and retail overtook accommodation and food services to become the second most distressed sector, recording 953 insolvency-related activities during the quarter, an 8% rise on Q2 2026. Other sectors which saw insolvency activity increase included real estate, professional services and education.
