Construction Debt: Failing at the foundations?
21st November 2018
More than 70% of Construction companies in the UK have bad debts. Around 280,000 firms in the sector are each losing around £10,000 per year equating to an industry loss of £2bn.
Bad debt is a serious issue for many construction companies and represents a great discrepancy in the sector. Non-payment can present itself due to customer disputes, Insolvency after the work is completed and differences in agreed payment terms. This has a huge impact on the contractor themselves as they have often had to bear the expense of labour and materials.
The number of insolvencies in the sector is rising on average by 10% each year and is currently at an all-time high since 2014. The figures and other statistics regarding debts in the construction industry paint a bleak picture. However, a lot of the problem is down to individual companies taking too long to recover the money that is owed to them.
Whether that be down to not wanting to darken a good relationship with the client, thinking the money will arrive eventually or down to not being bothered to chase what’s rightfully owed. Ultimately if the money is yours it needs to go in your pocket, not stay in someone else’s.
Cash flow is essential to keeping your business afloat and whether you are owed a few thousand pounds or several hundred thousand, DCBL can help you recover the funds due to you.
Debt recovery in the construction industry requires specialist expertise, the complex nature of construction contracts can often mean you are paid less than actually owed, not paid within your terms, or even not paid at all. One of the biggest issues for construction debt is quick reactions in terms of payment recovery and many businesses struggle to get these payments back. This is where we specialise, we ensure your debt is recovered quickly and successfully without tarnishing your business or relationship with your client.
Speed can mean the difference between failure and success
Direct Collection Bailiffs Limited (as seen exclusively on the Channel 5 T.V series Can’t Pay? We’ll Take it Away!) have a unique understanding of the Construction industry and the best practices to ensure the debt is recovered. By instructing DCBL to recover your outstanding debts, with our knowledge of the industry and experience in debt collecting you can be confident that you’re in good hands.
All our processes meet FCA and ICO standards and we hold ISO9001:2015, NLA, BPA, IPC, CSA and ICO memberships and accreditations.