Tradesmen including plumbers, builders and electricians are owed up to £50,000 by customers who sometimes take several months to settle their bills, a report reveals today.
Two out of five tradesmen told a survey they had had a bad experience with a customer, often leading to cash flow problems.
Research for the small business arm of insurance giant Eagle Star showed that the most common problem was persuading people to settle their bills.
A third of those left in arrears said they were owed over £5,000, 14 per cent were due more than £20,000 and 7 per cent were owed £50,000.
Almost half of the 500 workers questioned said their customers had taken more than six months to clear their debts.
More than a third of the plumbers, electricians, carpenters, glaziers and builders polled had to work longer hours because of late payment problems and a fifth took on more jobs.
Steve Wilson, managing director of Eagle Star Small Business Direct, said: "We see plenty of TV programmes on so-called cowboy builders but there's little on how some customers are reluctant to pay up for perfectly good work.
"This can have serious repercussions on any small business."
Friday August 15, 2003
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