May 05 2015
A recently published study by the Electrical Contractors Association (ECA) has revealed that building services contractors still have serious problems getting paid, even when working on public sector projects.
A survey their members showed that the majority of contractors had less than 40% of invoices paid within the industry benchmark of 30 days.
Despite numerous government initiatives to improve the situation on overdue business debts, 89% of the association's members said that they had seen “no improvement” in payment during 2014.
Samantha White from My Credit Controllers commented:
"While regulation has forced the public sector to pay their suppliers more quickly, all too often that's where it stops. The quicker payment terms are not flowing down the supply chain to the small and medium sized businesses that subcontract to the main contractors on these government construction projects."
"This situation makes it all the more important for smaller companies to have rigorous credit control and effective debt collection processes. With outsourced credit control services and online debt collection, My Credit Controllers can help smaller contractors protect their cash flow."
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