Late payments in the construction industry

Late payments in the construction industry

Credit control services help to ease the pressure of late payments and done professionally can ensure a good relationship is maintained between all parties. Daniels Silverman acts on behalf of companies to send friendly reminders for all outstanding invoices and ensure there is an open line of communication for your clients should there be any queries.

Late payment and cashflow

A lot of companies working in the construction industry have a tough time maintaining their cashflow, largely through no fault of their own. There are multiple pressures facing the SME contractor at the moment and a level of uncertainty surrounding the economy and forecast growth levels. Liquidity of cash in the business is a key component of these companies being able to continue trading.

Survey

A recent survey of electrical contractors* revealed that costs faced by companies had seen significant increases during the second quarter of 2018. Over 70% of respondents in the survey reported that their material costs had increased.

Fulfilling obligation

Being able to efficiently plan your time and your money relies on other people in the chain fulfilling their obligations. Most contractors work on 30-day terms, however, this does not mean that they are honoured. The results from the survey showed that only 30% of commercial clients paid their contractor’s invoices within 30 days, with the rest taking up to 89 days to settle their accounts. This has a significant effect on the ability of the contractors to manage their cashflow, forecast their growth or to have security and stability for their staff. 

Public sector clients are supposed to model best practice to the industry and settle their accounts in a timely manner, giving the industry confidence that they will be paid. Over half of all payments from public sector clients took more than 30 days. All of this adds pressure to the industry, placing unnecessary and avoidable stress on these companies.

Credit Control Services

Credit control services help to ease the pressure of late payments and done professionally can ensure a good relationship is maintained between all parties. Daniels Silverman acts on behalf of companies to send friendly reminders for all outstanding invoices and ensure there is an open line of communication for your clients should there be any queries.

A flat monthly fee is charged for the service meaning companies can control their monthly spend depending on the number of invoices collected. The same day service means businesses always know exactly where their accounts are up to, freeing up time and allowing them to manage their cashflow and business with much more certainty and accuracy. This pro-active approach to managing a businesses’ cashflow before problems arise is more important than ever in light of the results of this survey.

 Why not give Daniels Silverman a try? We are fully GDPR compliant and our debt collection and credit control services are outstanding, and we have the experience to prove it. Find out more by visiting our website and starting a webchat, or give one of our business development team a call on 0800 0730221.

*Survey carried out on behalf of the Electrical Contractors Association, the Building Engineering Services Association, Scottish electrical trade body Select and the Scottish & Northern Ireland Plumbing Employers’ Federation.