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The BMA has called on its members’ customers to pay during COVID19 outbreak. A growing number of manufacturers have been told by major customers that payments could be withheld beyond invoicing terms. Late payments could make a bad situation worse, warn the trade body.

The Government has introduced a range of measures to help cashflow within the construction industry. Along with the support packages available to all businesses, a procurement notice has been published to ensure prompt payment of Government construction contractors. However, these efforts to support cashflow have not stopped some customers from refusing to pay invoices on time. 

Refusal to pay in line with invoicing terms has an immediate impact on manufacturers’ cashflow. It can also prevent access to invoice financing from banks.  

Tom Reynolds, Chief Executive of the BMA said: 

“We understand the strain that COVID19 is putting on all businesses right now. That’s why we support the Construction Leadership Council’s letter to Boris Johnson requested extra additional support for the construction industry. However, some companies, including large players, are benefitting from liquidity support measures without passing it on to the whole supply chain. 

Reynolds continued: 

Refusing to pay bills on time, for products already delivered, could do irreparable damage when manufacturers are already dealing with a sharp drop in demand. I’ve spoken to the Government’s Business Department about the issue, who understand the problem and are looking at what can be done.”     

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