Debt Collection for Construction Companies
29th September 2022
The requirement of debt collection for construction companies is sadly a continuing issue amongst the industry, and in recent years has shown no signs of declining.
Considering the construction sector is one of the largest in the UK economy, this is not so surprising.
Debt Collection for Construction Companies – Contents
- Debt Collection for Construction Companies – A Growing Concern
- Trust DCBL to Recover Your Portfolio of Construction Debts
Working within a growing construction firm can be hardworking at the best of times and when multiple invoices turn into unpaid debts this can add to that workload.
Most construction companies will have a dedicated credit management team to deal with such issues however, sometimes this isn’t enough to stop someone who simply will not pay.
Direct Collection Bailiffs Ltd (DCBL) aren’t unfamiliar with this and has a long history of expertise and experience dealing with debt collection for construction companies.
Debt Collection for Construction Companies – A Growing Concern
Whilst the construction industry in the UK continues to grow, so does the cost of materials and energy. As a result, construction firms must ensure that late payments reduce as to not impact cash flow.
There is a multitude of reasons why construction company clients may not pay invoices, such as:
- Forgetting the payment date of the invoice.
- Cashflow pressures have resulted in not being able to pay.
- Late payments from their own customers mean they cannot pay on time.
- Simply ignoring the invoice as they never had intentions to pay in the first place.
Construction debt is not uncommon and it has been reported that around 26% of companies within the industry have clients that do not pay within the agreed time limit.
In an ideal world, prompt payment of all invoices without any issues or excuses from the client would be commonplace.
The Construction Act (1996) intends to ensure that payments are made promptly throughout the supply chain and that disputes are resolved swiftly, which is disappointing to see this gets ignored.
In reality, even the most reliable client with a good track record of paying can suddenly turn into a problem for your business.
You need a professional and effective debt collection service when someone does not obey a construction contract and the answer to this is by instructing DCBL.
Trust DCBL to Recover Your Portfolio of Construction Debts
CEOs of construction companies have enough on their plates to worry about delinquent clients refusing to pay what they owe.
Dedicated debt recovery solutions are needed to ensure that the number of unpaid invoices reduces, and action plans are put in place to ensure these are eliminated in the future.
By instructing DCBL to recover your high volume of construction debts, we will save you both time and money and allow you to focus on what matters (your business).
Our unique brand awareness and reputation, paired with over 20 years of experience, have resulted in a proven 25% higher recovery rate of debt than that of our competitors.
Due to our unique group structure, we provide a full, seamless debt recovery journey from the first reminder letter to agent enforcement.
Don’t hesitate to take action today to build back your cash flow by contacting our industry experts.