A report from the Asset Based Finance Association (ABFA) has been published after research by insolvency trade body R3 revealed £41.5bn in late payments was owed to businesses in the past six months, City AM has reported.
ABFA identified construction and real estate as the sectors worst affected by late payments, with the waiting period increasing 22% over the past five years.
Companies in this sector now wait on average 107 days, compared with 88 days in 2008.
Government concern over increasing pay delays led business secretary Sajid Javid last week to announce the inclusion of plans to create a small business conciliation service in the upcoming Enterprise Bill.
It is intended to help settle disputes between small and large businesses over late payment practices.
Over the past few months, H&V News has been campaigning against long-established barriers impeding the growth of firms in the building services sector.
Prompted by readers such as Martin Burton of Delron Services and supported by the Specialist Engineering Contractors’ Group and the Building & Engineering Services Association and many other organisations, the Time for Change campaign has highlighted the problems of cashflow faced by small and medium-sized firms in our sector.
Earlier this week H&V News, urged readers to contact their MPs to seek their support.