The survey of 500 business owners revealed that 54% of companies recorded a decrease in profit in December 2010, which compared to 49% in September 2010. When aggregated out across the whole of the UK, R3 claims that around 934,000 companies experienced a drop in profits in December 2010.
It also claimed that creditor support from HMRC and the banks had diminished, while suppliers insisting on payment in advance was flat at 18%.
R3 president Steven Law said: "The overall picture indicates that conditions got more challenging from September to December last year – though we must remember that during this period businesses were affected by the adverse weather conditions.
"However, the increase in businesses struggling to pay bills on time is worrying as this is the technical definition of insolvency. This coupled with an increase in the number of businesses using the maximum overdraft facility, which stands at one in five, suggests that many businesses are running on empty."
The number of firms reporting cashflow difficulties rose to almost a quarter at 24%, up from 19% in September.
Overall, one in 10 business owners (9%) feared that they were at risk of insolvency in the next 12 months.
Other signs of decreasing business include a regular customer withdrawing business (32%) and the introduction of a pay freeze or cut (27%).
