Construction sector ranks among top ten worst-hit UK industries for late payments
Posted by: electime 17th February 2025
Amid a new report showing a 58 per cent rise in construction firms facing critical financial distress late last year, new research has revealed the sector grapples with one of the UK’s longest payment delays.
The business finance experts at money.co.uk business credit cards have analysed data from the Department for Business and Trade to show how late payments affect UK businesses and give tips to help construction firms budget for financial shortfalls.
| Rank | Industry* | Median days to pay large businesses |
| 1 | Manufacturing | 47 |
| 2 | Wholesale and retail trade; repair of motor vehicles and motorcycles | 36 |
| 2 | Agriculture, forestry and fishing | 36 |
| 2 | Water supply; sewage, waste management and remediation activities | 36 |
| 5 | Accommodation and food services activities | 35 |
| 6 | Transportation and storage | 34 |
| 7 | Construction | 33 |
| 8 | Mining and quarrying | 32 |
Joe Phelan, money.co.uk business credit cards expert, offers his tips for handling late payments:
“While overdue invoices might feel like an inevitable part of running a business, there are ways to mitigate their impact. By adopting proactive measures and leveraging financial tools, SMEs can build resilience and protect their operations from the risks associated with late payments.
“Using a business credit card effectively, for example, can be a lifesaver when payment schedules don’t align. The key to this is thinking of the card as a short-term buffer rather than a long-term crutch.
“Start by choosing a credit card that offers longer grace periods – some providers do this for new customers. You should also look for cards that provide zero or a reduced introductory APR, especially if you anticipate carrying a balance from time to time. And, if they offer cashback or rewards, that is even better, as this can offset some of your expenses.
“Timing can be everything, so align your credit card payments with your income schedule as best as possible. For example, if you’re typically paid mid-month, set the card payment to be due later in the month to avoid late fees.
“Lastly, remain disciplined and make sure to pay off the balance in full wherever possible. It’s well known that credit cards can accrue interest very quickly, depending on your interest rates. It’s also better to use accounting software to manage these payments, as manual methods can lead to human error. And remember, a credit card should supplement your business’s financial plan, not replace it.”
