Communications, transport and construction industries worst hit by late payments

According to research conducted by LloydsTSB, it found that although the national average of firms experiencing late payments was a staggering 63%, almost two in three, that some firms had worrying exposure to the onset of late payments.

As per the law of averages, some will have lower levels than the average, and others higher. Those operating in industries above the national average in experiencing late payments are the communications, transport and construction industries who respectively reported that 86%, 72% and 70% of firms operating in these industries reported late payment issues.

Aside from the telecoms giants, the communications industry also includes sectors such as advertising, media and publishing where alongside the likes of Sky, BT and Virgin Media, advertising giants Saatchi & Saatchi or AKQA, sit SME’s delivering web services like web design, web hosting and publishers working on online or offline publications.

Although the UK ICT and communications industries have grown far faster than any other UK industry (especially in the iPhone/Smart Phone app market) it doesn’t bode well for the UK that the smaller communications businesses are amongst those in the whole of the UK, more likely to be on the receiving end of late payment problems. So much so that almost nine in ten out of all UK communications firms are reporting late payment problems causing cash flow issues.

The damage is not just to the firms in the fasting growing UK sector, and their very survival, but the impact on the economy as a whole. The later the  payments are, the later the money can be re-introduced back into that economic sector and the economy in general. This is a significant barrier to growth and economic recovery.

Cash flow problems are the biggest killer of businesses small and large, national and international so if any of the issues highlighted in this ‘late payment’ blog post are of a concern to you, get in touch and start reducing your debtor days. Debt Recovery and Outsourced credit control are two vital services at CCDR . Credit Control, sometimes called business credit management manages credit lines offered to customers, reviews creditworthiness and ensures that payments and customer invoices are collected on time.

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