Bibby Financial Services’ latest report Planning for Growth, made headlines this week when it featured in a piece in The Telegraph newspaper. The Telegraph picked up on figures in the report which revealed the amount of money that small building firms write off each year.
The Planning for Growth report was written with the help of The Vinden Partnership and it featured a sample of 200 small construction businesses who took part in the study in October 2014. The report offers unique insight into work levels, opportunities and challenges facing these smaller firms in 2015 and beyond.
Writing off £10,000 per year
The Telegraph reported on figures contained in the report, but paid most attention to the fact that 70.5 per cent of construction companies employing 250 staff, write off more than £10,000 per year due to late or non-payment.
The construction sector contributes around £90bn in gross value added to the UK economy and supports 2.93m jobs. Red tape and skills shortages are a problem for this industry, but the biggest challenge it faces is late or non-payment of monies due.
Planning for non-payment
Bibby Financial Services want to assist those business owners in the construction sector who are experiencing payment issues. Specialist invoice finance providers like Bibby Financial Services offer debt collection and credit control expertise along with access to finance.
Cashflow issues caused by late or non-payment can heavily impact SME construction businesses, and the report highlights that lengthy payment terms are standard in the construction sector. While many construction businesses are planning for growth in 2015, it’s clear that more can be done to assist them with funding and credit control expertise.
BIBBY FINANCIAL SERVICES
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for companies in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.