Monday, June 8, 2009

Construction SMEs owed £2.5bn on any given day

Small and medium-sized construction firms are owed ВЈ2.5bn on any given day because suppliers and customers are failing to pay on time.

That’s the finding from the Barclays Local Business annual Late Payments report.

The report showed that the on a typical day, construction firms in England and Wales are ВЈ2,837 out of pocket as a result of suppliers or customers failing to pay within 30 days.

The total figure has resulted in these SMEs losing nearly £1.1 billion over the last twelve months due to non-payments – an average of £1,292 per business.

John Davis, marketing director for Barclays Local Business said: "Despite some recent positive economic signs, it’s concerning that late payments are on the rise. This is a serious issue for the construction firms we talked to - four in ten say it threatens their day-to-day survival."


Construction SMEs owed £2.5bn on any given day


The survey also found that firms typically have to wait 13.3 days after the invoice due date before they get paid. On average they spend 1.4 hours a day chasing late payment.

And Barclays found that the problem showed few signs of easing - 65% of companies polled in the survey said they thought the problem was likely to get worse over the next 12 months.