- According to the latest Department for Business and Trade data, 494 haulage businesses entered insolvency in 2023, nearly double the number from 2021. In the first half of 2024, the figure stood at almost 170.
- It is also estimated that 33% of businesses in the haulage sector are deemed maximum insolvency risk, up from 22% 12 months ago.
- Late payment of invoices, which commonly exceeds 60 and even 90 days, is a critical problem.
High operating costs, notably volatile fuel prices, driver shortages, inadequate road infrastructure, and environmental pressures are all adding to the haulage sector’s pressures. However, cashflow is without doubt the most significant threat facing the industry, according to Bluestone Credit Management’s development director, Simon Frost;
“Continuous late payment in the haulage sector risks becoming normalised, despite legislation to ensure suppliers are paid on time. The need for cashflow within haulage businesses forces far too many to rely on overdrafts or factoring to keep the doors open, which can be expensive for a sector with notoriously tight margins. The better solution is to take steps to get paid on time, which is where the expertise of businesses such as Bluestone Credit Management can be invaluable.”