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.