Shocking losses underlines need for an independent retention service

New figures have revealed that UK construction contractors have been hit by £700 million in cash retention losses caused by insolvencies in the past three years.

The figures, which come from a report commissioned by the Department of Business, Energy & Industrial Strategy (BEIS), have rightly been described as ‘shocking’ by the trade body the SEC Group.

The SEC claims that the brunt of those losses have been borne by small sub-contractors who, sitting further down the feeding chain, are less likely to recover monies owed to them if a client or main contractor goes bust.

50% Off Experian Credit Reports

If your business doesn’t lay the right groundwork when working with customers, you’re leaving yourself wide open to the risk that you’ll never get paid at all. Time and again, we hear of well-meaning companies putting in in hours of labour - and investing into raw materials - only to find that their customer doesn’t have the means to pay the bill.

According to National Statistics, 4,547 companies entered insolvency in Q2 2017. And over the next few years, we foresee a turbulent time for small companies which could increase this figure significantly. If you don’t yet have full understanding of the companies you're dealing with, and their creditworthiness, your business could be just a few short months from a serious cashflow crisis.

Safe Collections is pleased to offer half-price credit reports from Experian. You pay just £9.99 to check the official credit report for your client; a small fee, but a big weight off your mind.

Air Berlin Grounded By Insolvency

After Monarch went bankrupt and left thousands of passengers stranded, it looks like Air Berlin, the second largest German airline, looks likely to be the next carrier to close down operations.

While Air Berlin is fizzing out slowly, in contrast to Monarch’s overnight collapse, as many as 9,000 redundancies are expected once it finally winds up with many small and medium sized suppliers braced for significant losses.

Monarch and Toys R Us Prove No Brand Is Too Big to Fail

It is every supplier’s worst nightmare. You have finally secured a lucrative contract with a big name global brand, giving you what feels like a sense of security and assurance for future earnings.

Then, all of a sudden, the unthinkable happens - the company goes bust. From a position of relative comfort, you now find yourself at the back of a long queue chasing unpaid invoices you may well never recover.

Depending on how reliant your business is on that one big client, you could easily find yourself in jeopardy too, unable to absorb the loss.

Asda & Iceland Top Grocery Name-and-Shame List

The UK’s supermarket watchdog has published its annual grocery code compliance list, naming and shaming supermarkets for poor treatment of suppliers and other breaches of the industry code of practice.The UK’s supermarket watchdog has published its annual grocery code compliance list, naming and shaming supermarkets for poor treatment of suppliers and other breaches of the industry code of practice.

This year, Asda has secured the dubious honour of having the poorest relationship with its suppliers, leapfrogging its West Yorkshire rival Morrisons which topped the shame list last year. Iceland, meanwhile, was ranked worst for overall compliance with the Groceries Supply Code of Practice in the past year.

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