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Case study - AMD Electrical

“We are a subcontractor in the electrical industry, and also a member of ECA – the leading trade engineering services trade association.

“In the 31 years I have been in the industry, I have probably worked for 100 different larger contractors. I can count on one hand how many of them would actually abide by the terms of the contract, with no fuss, no nonsense, and actually pay you on time.

“Late payments on a 30-day contract are frequent, with the 45 to 60-day mark being a regular payment date. That can be worth anything from £100,000 to £200,000 a month, which is at least 15 to 20 days late. Subsequently that pushes all of my payments back to my wholesalers.

“If I were to walk away from 95% of work opportunities, I might as well just go and claim benefits somewhere, because I would not be working for anybody.

“The next step for our business would ideally be to take on larger contracts of £1 million-plus, and therefore invest in more employees and more apprentices. However, I am loath to do that because of the issues of late payment.

“Money is the only issue. Larger businesses hold our money and they do not want to distribute it down the supply chain. There are a few solutions about — may be the use of a client bank account where money is drawn directly down from that by subcontractors.”

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