Transport SME’s turn down work due to lack of finance

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More than one in three (39%) small to medium transport businesses have turned down contracts and orders as they cannot deliver the work, new research has revealed.

The study, from Hitachi Capital Invoice Finance, shows that 38% of operators believe jobs do not pay enough.

Unfair payment terms (36%) and lack of management time (30%) were the other predominant causes of such enterprises having to say no to contracts in the past year.

Of 501 business owners questioned, 54% of those in the transport sector said ‘yes’ when asked if they have ever had to turn down a contract solely due to a lack of finance. Nearly half said this has cost them in excess of £10,000 in the past year.

“SME’s are unfortunately having to decline contracts and orders due to unfair payment terms and unreasonable asks, not because they can’t deliver the work. Bad payers and unrealistic contractual terms can have a huge impact on any business, especially those that are relatively small or in start-up, said Andy Dodd, managing director at Hitachi Capital Invoice Finance.

Outlook remains positive however, with over 60% of transport companies agreeing they don’t think that Brexit will impact on them rejecting more, or acquiring less work in the years ahead. This was an attitude found amongst the majority (60%) of companies surveyed.

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