June 01 2015
Businesses in the construction industry have the longest wait for their invoices to be paid of any business sector, says the Asset Based Finance Association (ABFA), with delays now averaging more than 15 weeks.
According to research by the ABFA, waits for payment for businesses in the construction sector have increased by 22 per cent in the last five years from 88 days in 2008 to 107 days now. By contrast, restaurants, bars and hotels experience the shortest waits for payment of 20 days on average.
The ABFA says that long delays in payments are heaping pressure on a sector that is yet to recover from the collapse in the property market in 2009.
Jeff Longhurst, Chief Executive Officer of the ABFA, says, “Many businesses are finding that payment delays are getting worse rather than better, despite the economic recovery and moves to improve prompt payment practices.
Samantha White, CEO of My Credit Controllers said, “Despite government initiatives such as requiring public bodies to pay their bills promptly, payments to main contractors are clearly not being passed on further into the supply chain. Smaller subcontractors, with costs for materials and labour to meet are being made to wait for too long for payment. Professional credit control is now available to smaller firms on an outsourced basis, and these figures show that the UK construction sector desperately needs this kind of help.”
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