The Chasing Payments report surveyed over 1,000 mobile tradespeople and micro businesses in the UK. It found that 75% of respondents have had a late payment in the last 12 months.
The research showed that tradespeople are owed an average of £799 in outstanding payments per year and write off an average of £770 per year in outstanding payments.
There are 3.137m skilled tradespeople currently working in the UK. Once the data is extrapolated across the country, these micro businesses are owed a total of £2.5bn per year, writing off up to £2.4bn of that debt.
Individual consumers have been identified as the worst culprits for late payments. Micro businesses have reported receiving a wide variety of excuses for not paying on time, including “the goat ate my cheque book” and “I fell over on the way to the bank”.
|UK sole traders and mobile microbusinesses could be owed up to £2.5bn each year by late-paying customers - e-moneyman.co.uk|
According to the research, tradesmen often wait up to 15 weeks to get paid. Builders and plumbers are among the worst affected, with 88% and 90% respectively reporting late payments. For plumbers the wait can be up to 27 weeks.
Among those who have been paid late in the last 12 months, 45% have experienced cash-flow problems.
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