Are you having issue with late payments or a customer not paying for construction work?
According to MBH Corporation new research shows SME bosses are concerned that access to finance will become much more difficult over the next three years as they continue to grapple with the challenge of late payment of invoices.
MBH Corporation’s study found 2 in 5 (40%) of SMEs believe applying for funding will become harder while just 1 in 10 expect it to become an easier process . Around a third (33%) believe lending conditions will not change and 17% are unsure of the outcomes.
Their research found access to finance will be a huge issue for SMEs, , as nearly 1 in 3 (30%) will want to borrow to fund growth over the next two years. The past year has been difficult for SME owners, with more than 1 in 3 (34%) reporting an increase in late payment of invoices underlining the need for alternative cashflow solutions.
Despite this, there is good news from the experience of the past year, when looking at applying for finance. Only 17% of SMEs that applied for loans were rejected by the financier. The biggest impact on the business from being rejected was not being able to hire staff or expand exports. MBH Corporation research last year found that around 1 in 3 SMEs applied for Government loans with many planning to pay them back sharpish, as they are optimistic about the future of their business.
Callum Laing, CEO of MBH Corporation plc said:
“Access to funding is a constant worry for SMEs and being rejected can have major consequences for expansion plans.
“SMEs are generally optimistic about the future as underlined by their plans to access finance for expansion shows. The good news is that experience over the past year shows that SMEs which have applied for finance have been successful.”
One way to ease the stress on your cashflow is to make sure you have strict payment terms. That said, we understand that there are unscrupulous clients out there that just don’t pay. This is something that is rife in the Construction Industry!
With this in mind CRS, a specialist construction debt recovery agency, have set up a dedicated “Help Desk” to help give small contractors and sub-contractors with Free Construction Debt Advice. This will help you deal with a customer not paying for construction work and/or any underhand tricks of your employers QSs.
Do you have a customer not paying for construction work? We will give you one Free Hours worth of advice and at the end of this we will;
- Tell you where you stand
- Suggest a way forward
- Tell you if we can help