20% of all Small Businesses May Go Bust in Weeks

It's bad news for construction, all the large firms run at tiny margins (which this will destroy), so this will knock onto medium firms as they will get less work, then this will knock onto smaller firms as their payments will get delayed (or just not paid). It's the worst industry in the UK for companies not paying out what they should, when they should and any additional signs of problems just tip the trolley over.

Then you have bonkers clauses where if company A (the client) goes bust, then company B (the main contractor) don't have to pay company C (the cub contractor). Also, if Company C goes bust, then their invoice to company B becomes void, so B gets work done for nothing and the materials suppliers to C get nothing, and no insolvency payments from C (or maybe 1-2% of the invoice value).

It's a 100% backwards industry, massively in need of regulation to protect smaller businesses.
 
Wev yes contractual debtors. Always has been a problem in the sector and the reason invoice discount facilities have not been available to the smaller companies To help with cashflow.
 
Only suspended dividends not scrapped them.

"But they will now retain those funds and not pay out any money to shareholders until at least the end of the year, which the Bank of England said "should help the banks support the economy through 2020"
 
You must log in or register to reply here.
Back
Top