New data released earlier this month suggests that the impact of Carillion’s insolvency is even more far-reaching than once thought.
According to research carried out by Prompt Payment Directory, a ratings platform which reviews payment practices, there has been a 30% year-on-year rise in the amount of UK construction companies that have reported they are either close to liquidation or bankruptcy or could be soon.
This conclusion was made after 400 Owners, Chief Executive Officers and Managing Directors of small businesses were surveyed on the financial challenges that they face. Almost three quarters of these are said to be experiencing serious cashflow difficulties.
It has been suggested that the above issues are partly linked to late payments. Though the problems are clearly complex and cannot be attributed to one matter, 73% of the firms that took part in the study state that as a supplier they have been paid past the 45-day timeframe that is often mooted in the industry. One third noted they have previously struggled to manage with sudden payment term changes too.
Reassuringly, Hugh Gage, Managing Director of Prompt Payment Directory, thinks that the high-profile Carillion liquidation has helped in a way due to it raising awareness for the knock-on impact of late payments.
Either way, over the past ten years our Leeds, Harrogate, Bradford and Darlington-based licensed insolvency specialists have helped hundreds of organisations who were facing the possibility of insolvency across Yorkshire and the North East with their sympathetic, practical and professional approach.
If you would like to arrange a free, no-obligation chat or meeting with us to discuss what actions to take next, please do not hesitate to call Walsh Taylor today on 03300 244 660.