Payment delays for contractors in the supply chain are getting longer according to an analysis of more than 7,500 firms.

 

Late payment proceeds its torment of businesses in the UK, and small and medium-sized enterprises continue to suffer the most. Despite the multitude of government initiatives  and failed attempts to resolve the issue, a large majority of businesses are still not paying their suppliers on time. As a result, many suppliers are facing financial distress and the whole supply chain is being placed in jeopardy.

A new report from Companies House has revealed how some suppliers are still waiting over  42 days on average for invoices to be paid. This means that many small businesses are being threatened by the bad payment behaviour of its customers, and many more are not seeing a way out.

With the government unwilling to punish the bad payers and more friendly initiatives proving ineffective, dissolving the late payment culture becomes the responsibility of the businesses themselves. At the Credit Protection Association, our debt recovery credit management products have aided many business owners who have suffered at the hands of late and bad payers. While many firms insist upon internal credit control, approaching a third-party can make all the difference, and bring forward a position resolution.

Conrad Ford, CEO of Funding Options, said: “A single late payment can be an issue even for larger and more successful firms, and worsening delays could create more insolvencies.

“Carillion’s collapse sent shockwaves through the industry, affecting smaller suppliers who will now never get paid what they are owed.

“It is crucial that construction companies understand all the options available to them for the funding they require to minimise the impact of late payments.

“There is a variety of alternative lending available to small businesses seeking funding, such as invoice finance, asset finance, crowdfunding and peer-to-peer lending.

 

Conrad Ford, CEO of Funding Options, said: “Construction businesses have high overheads and labour costs, and many cannot afford to wait for payment for lengthy periods of time.

There are indeed a variety of different funding options for business owners; from alternative platforms such as crowdfunding to more traditional bank loans from high street lenders. These options indeed provide the funding necessary for expansion, growth or to pay off suppliers. However, with political and economic conditions relatively unstable, businesses should be focussing on improving their finances as well as merely plugging up the holes in their cash flow.

At the Credit Protection Association, our debt recovery and credit management services provide our Members with financial stability, while also advising them on the right way to sustain it. Our credit checks, status reports and company directories protect our Members from future damage from late payers, slow payers or bad payers.

Here at CPA, we fight to the tooth for our members, particularly those who have suffered through late payment and bad payment practices. We recently created a new department within our company dedicated to getting our members rightly compensated in accordance with the Late Payment of Commerical Debts (Interest) Act 1998. This has unlocked hidden cash and potential for our members and brightened their prospects and confidence.

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.

The Latest Insolvencies to 18 Jun 2018

Previous Post

Small Business Commissioner Still “Tackling” Late Payment

Next Post

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.
Call us today

0330 053 9263