The value of debt being chased through court claims by haulage firms increased by 87% during Q1 this year compared withQ1 2008, according to debt recovery law firm Lovetts.
"Our findings demonstrate just how active road haulage firms have become in tackling bad debt," says Lovetts chairman and MD Charles Wilson.
"They appreciate the risks of allowing late payments to become major debt issues and, as such, are acting on both longer-term
arrearsand current outstanding payments, which is increasing the level of debt chased."
The RHA says cashflow is a critical issue at present for its members. "Cash is going out faster through even tighter credit terms from diesel suppliers who cannot reclaim the 54.19p/litre fuel element of a bad debt; and is coming in slower through longer payment by customers. With banks taking a hard line on lending, chasing payment sooner is a necessity for business survival," says RHA director of policy Jack Semple."Hauliers' harder line on this issue is to be encouraged. We need sustainable rates, promptly paid by customers, instead of the exploitation that put the industry well behind the UK business average."
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