Tim Cooper

The restructuring, turnaround, and insolvency trade body’s analysis of data provided by Creditsafe shows there were 1,820,706 overdue invoices on the books of Scottish businesses in Q2 2025 – with 602,822 in April, 589,298 in May, and 628,586 in June. This is a rise of 24.5% compared to Q2 2024’s total of 1,462,590.

Looking at the wider UK picture, Scotland saw the second largest percentage increase in overdue invoice numbers, preceded only by the West Midlands which saw a rise of 28.8%.

The total number of Scottish companies with overdue invoices on their books also rose by 14.7% in Q2 2025 when compared to the same period last year, rising from 107,490 to 123,299.

Tim Cooper, immediate past president of R3 and partner at international law firm Addleshaw Goddard, said: “The sharp rise in overdue invoices across Scotland is a clear sign that increasing financial pressures are taking their toll on businesses.

“This trend is concerning because delayed payments can quickly escalate into wider cash flow problems, putting companies at real risk if they fail to take action early.

“Recent policy changes, like the hike in employers’ National Insurance contributions and the increased minimum wage, are undoubtedly squeezing margins further. Many businesses that were already operating under tight financial conditions are now being pushed closer to the edge, which helps explain why we are seeing such a marked increase in unpaid invoices compared to last year.”

Mr Cooper continued: “While overdue invoices alone do not tell the full story, they often precede more serious difficulties. We will gain a clearer understanding of how this trend is impacting insolvency figures when the upcoming quarterly statistics are released later this month – but it is already apparent that more companies may be struggling than before.

“For business owners, recognising the early warning signs of financial distress is critical. If you are noticing issues like persistent late payments, growing debts, or difficulties meeting payroll obligations then it is more than likely time to seek professional guidance.

“R3 members in Scotland typically offer a free initial consultation to help businesses assess their situation and discuss potential next steps.”