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‘Thrive Not Just Survive’ – Hauliers Must Address Normalised Late Payments

Posted By: Bluestone Credit Management

Posted: 30th September 2025

  • 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.”

Government data supports Simon’s view. Analysis published by the Office for National Statistics in January 2025 revealed that more than a third (36.8%) of transport and storage companies had no cash reserves, and an additional 12.4% indicated they had less than a month of available financial resources left. This represented the lowest level of cash reserves for any UK industry.

Work by Opus Business Advisory Group underlined the working capital situation. 15% of haulage companies had negative working capital of at least £20,000. In short, their short-term liabilities due for payment within a year exceeded their ‘quick’, easily realisable assets such as receivables, inventory, and cash.

The numbers are stark, and the fact that the sector’s industry journal, Motor Transport, has a dedicated Administration watch section with plenty of sad stories says much about the challenge. As Simon concludes, an increased focus on the debtor ledger is potentially business-critical for the motor haulage sector:

“Fear of upsetting clients and the ripple effect of late payments through the logistics chain are often at the heart of late payments. It is a challenge to be addressed head-on. Highlighting their customers’ legal obligations and challenging embedded beliefs independently can be surprisingly effective in reducing debtor days. It also enables businesses to get on with thriving rather than surviving.”

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