Blog: How can you protect your construction business from bad debt?
Head of EQ Property & Construction Steven Todd provides tips to protect your construction business from bad debt.
Bad debts are a problem that affects most businesses, irrespective of size or sector; however the issue is particularly problematic for smaller firms who often have to incur upfront costs, many of which don’t have sufficient cashflow to survive.
Small firms in the construction sector are particularly affected by bad debts, with 29% of owners reporting bad debt over the last year. Small construction companies were forced to write off as much as £15,000 on average.
Bad debt can occur for a number of reasons and business owners often don’t have the financial resources or access to advice to pursue legal action for recovery.
So how can you protect your business from bad debts?