With a huge number of businesses set to be impacted by this, from those with mounting piles of invoices they can’t pay, to those unable to collect payment on invoices owed, there is a likelihood of many companies being forced into a distressed scenario.
It seems likely that, as the economic impact of COVID-19 continues to unfold over the coming months, the problems caused by unpaid invoices for some will present opportunities for others. The next few months could present a prime marketplace for acquisitive parties looking to take on distressed businesses.
According to figures from Creditsafe’s late payment tracker, 61 per cent of all invoices paid in April 2020 were paid late, a 52 per cent increase from March 2020 and a 41 per cent leap from April 2019. This was especially felt in the transport, IT and real estate sectors, which saw significant increases.
Unpaid invoices remained an issue over the course of May. According to the Sidetrade invoice tracker, on June 13th 2020, 53.5 per cent of invoices by volume in the UK were unpaid, a 238 per cent increase on the average before the pandemic.
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