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With help from Clear View

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Get your Dream Home

With help from Clear View

Wide Range of Aluminium Products

Including Bi-folding, Sliding & Patio Doors

Helping People all Over the UK

From our base in West Yorkshire

All Products Manufactured in House

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Open Daily and Saturday Mornings

News

Companies in construction sector write off 2bn pounds a year in bad debt

SME’s in the construction sector write off up to £2bn a year according to recent reports.

Clear View, leading providers of bi-folding doors across the UK, has recently learnt of this astonishing figure after it was publish in a report by funder Bibby Financial Services and consultant The Vinden Partnership.

The same report shows that over 70% of SME Construction firms have suffered with bad debt since 2012. On average, the amount wiped off the balance was just over £30,000 each year.

Helen Wheeler, who is the MD of Construction finance at Bibby Financial Services released a statement saying: “Bad debt is a serious issue for many construction businesses and represents a huge leakage in terms of sector output. Non-payment can occur due to customer insolvency, payment default or dispute, and the issue is severely problematic for smaller firms who have often already footed the bill for labour and material costs.

“This places a massive strain on these businesses, often causing viable firms to fold. The problem is particularly acute for those who do not have sufficient working capital or bad debt protection in place to cover against this situation.”

Clear View is slightly alarmed at the high figure of debt that is being written off each year, but after news that the construction sector has been booming in the past 12 months, hope that this figure reduces significantly.

 

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