Billions of pounds in late payments are owed to tradespeople across the UK, according to new research from Ford Pro.
Carried out as sole traders say delayed or missing payments are a major issue heading into 2025, the study finds that tradespeople are owed as much as £3.5bn in overdue payments.
That equates to an average of £3,942 each, the equivalent of over a month’s salary for a typical UK tradesperson.
Almost two-thirds of tradespeople experience late payments regularly, with an average delay of 35 days, while 71% of UK tradespeople have experienced outright payment refusal, likely taking its toll on home and family life.
Nearly one-quarter (23%) struggle to cover essential bills due to delayed payments while 17% have turned to payday loans to make ends meet.
And 20% of tradespeople are worried about supporting their families this Christmas, and many are cancelling holidays or cutting back on gifts due to cash flow issues caused by unpaid invoices.
Ford Pro is aiming to shine a light on the consequences of late payments on small business owners and their families through its Little Debt Collectors campaign.
The manufacturer of the Transit Custom conducted a social experiment with UK homeowners, with the results highlighting that getting customers to pay quicker could be as simple as raising awareness among homeowners. In fact, two-thirds (67%) of homeowners say they would pay invoices faster if they understood the impact of delayed payments on tradespeople and their families. The experiment found that invoices are paid an average of one day sooner when homeowners are reminded of the financial strain late payments create for tradespeople.
Coinciding with the research, Ford’s Little Debt Collectors content series is rolling out online and puts an unlikely duo on a mission to get UK homeowners to stand up and take responsibility for their actions and pay tradespeople on time.
Mandy Dean, director of commercial vehicles, Ford UK and Ireland, said: “We know that homeowners and tradespeople are all feeling the pressure so we want to bring both parties closer together – from helping tradespeople create more effective invoices, to helping homeowners understand the potential impact of an unpaid invoice; it’s not just a number, it’s a meal on a table or a present under the Christmas tree.”
Emma Grant, head of trade experience at Checkatrade, commented: “Small businesses are the backbone of our economy, yet without consistent cash flow they cannot function nor cover essential running costs such as materials and wages, and the subsequent need to chase overdue payments strains their customer relationships, damaging their reputation and future job opportunities. While delays may be justifiable in certain cases, they all too often create unnecessary pressure and we’d urge homeowners to prioritise payments to these integral small businesses over the festive season.”
