Monday 24th Jul 2017 - Logistics Manager

SMEs turn down contracts owing to lack of finance

Some 54 per cent of small to medium transport businesses have turned down contracts because of lack of finance, according to a study from Hitachi Capital Invoice Finance.

The study found that other factors included: jobs would not pay enough, (38 per cent); unfair payment terms (36 per cent); and lack of management time (30 per cent).

“Bad payers and unrealistic contractual terms can have a huge impact on any business, especially those that are relatively small or in start-up,” says Hitachi managing director Andy Dodd.

Of the 501 business owners surveyed, nearly half had lost out on up to £10,000 in the past year due to rejecting contracts.