Emma Reilly shares practical insights directly from recent credit manager forums, exploring the contrast between high-level reports and what is happening on the ground across the UK construction sector. From flatlined new business and rising mid-tier debt to upcoming legislative overhauls and the hidden risks of credit card merchant fees, this episode provides credit teams with the intelligence needed to safeguard margins and keep cash flowing.

• 00:00 – Introduction

  Emma Riley introduces the episode and sets the stage for examining the real day-to-day state of construction credit management.

• 00:46 – Market Reality & Payment Trends

  Why account openings are stalling into dormancy, how major infrastructure (HS2) contrasts with a slowing housing sector, and the dangers of creeping £10k–£50k mid-tier balances.

• 02:00 – The Legal & Political Radar

  Upcoming reforms under the Commercial Payments Bill (60-day terms cap, retention bans, mandatory 8% interest) and expanded Small Business Commissioner enforcement powers.

• 02:50 – The Credit Manager’s Balancing Act

  Navigating conflicting boardroom demands: rapid customer sign-ups vs. keeping DSO low and card fees down.

• 03:22 – The "Terms vs. Limit" Trap

  Why extending payment terms from 30 to 60 days inadvertently forces suppliers to double their risk exposure on cash-strapped debtors.

• 04:12 – Emerging Operational Risks

  The dangers of instant onboarding without real-time checks, plus the margin-eroding impact of customers using credit cards for large invoices.

• 04:54 – 4 Actionable Strategies for Q4

  Practical guidance on monitoring limits, implementing merchant fee caps, utilizing live trade data over outdated filings, and unpicking disputed balances.

• 06:06 – Closing & Special Offer

  How to access Top Service trading data and details on getting involved with future episodes.

• Watch the Accumulation: Insolvencies make headlines, but multiple unpaid debts in the £10,000–£50,000 range can silently drain working capital just as quickly.

• Look Past the Calendar: If a buyer requests an extension from 30 to 60 days, evaluate whether you can afford to double their credit limit when their ability to pay is already compromised.

• Protect Your Margins from Fees: Cash-poor debtors paying off trade balances via credit cards can cost tens of thousands in merchant fees; set clear settlement policies to prevent margin erosion.

• Break Down Disputed Debt: Separate uncontested amounts from retention claims and variations early to collect clear cash immediately rather than letting whole balances stall.

• Prioritise Live Intelligence: Filed accounts reflect where a firm was up to a year ago—current liquidity requires real-time network alerts and community trade experiences.

• Top Service Free Trial: Test the platform free for 48 hours with no obligation to see live trading data and credit alerts on your key accounts.

• Get in Touch: Connect with Emma Reilly on LinkedIn to share feedback, ask questions, or suggest topics for upcoming episodes.

In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) introduces an extract from a joint webinar with the CICM.

Moderated by Philip King (Non-Executive Director), the panel features Simon Howell (Tarmac) and Sue Chapple (Chartered Institute of Credit Management) discussing key operational issues in construction credit management. They address the ongoing challenges surrounding retentions, the real-world impact of payment initiatives (such as the Fair Payment Code), and emerging shifts in customer payment habits.

Key Takeaways & Discussion Highlights

• The Reality of Construction Retentions:

  • Systemic Cash Flow Impact: Simon Howell notes that retentions continue to present significant hurdles for cash flow across the supply chain, impacted by the same dispute and payment delays affecting standard invoices.

  • Organization is Crucial: Because retention payments are protracted over long periods, credit teams must be exceptionally organised and stay proactive in tracking and collecting these funds before they stall completely.

• Impact of Fair Payment Initiatives & Government Codes:

  • Positive Messaging, Process Hurdles: Sue Chapple highlights that initiatives promoting prompt and fair payment are welcome, but many late payments from larger companies stem from operational and technical process issues rather than deliberate withholding of funds.

  • Inter-Small Business Strain: A growing concern across the industry is small-to-medium businesses delaying payments to other small businesses.

  • Balance Sheet Fragility: Tier 2 contractors and smaller subcontractors face fragile balance sheets and lack the deep pockets needed to self-fund delayed projects, making sudden, unexpected insolvencies a continuous worry.

• Emerging Trends in Payment Behaviour:

  • Micro-Delays (1–3 Days Late): Simon calls attention to a notable shift where previously reliable, prompt-paying customers have begun paying slightly late—even by just one, two, or three days.

  • Cash & Balance Sheet Preservation: These subtle payment delays indicate that larger contractors and Tier 1 businesses are actively managing their cash reserves and balance sheets tightly, requiring credit managers to keep a close eye on accounts to prevent short delays from escalating.

Webinar Announcement

To sign up for the next webinar, please visit:

👉 https://www.cicm.com/cicmevents.html

Connect with Us

Have questions about managing retentions, credit risk, or payment trends? Reach out on LinkedIn:

• Emma Reilly: Search for Emma Reilly Top Service on LinkedIn.

Subscribe to Minimise Debt, Maximise Cash on your favourite podcast platform so you never miss an episode!

In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) introduces an extract from a joint webinar with the CICM.

Moderated by Philip King (Non-Executive Director), the panel features Chelsea Ware (Travis Perkins) and Rosie Payne (Saint-Gobain) discussing current trends in collections. They explore whether overdue debts are rising, how credit teams manage "can't pay" versus "won't pay" scenarios, the increase in payment plan requests, and how to spot "red flag" invoice disputes.

Key Takeaways & Discussion Highlights

• Overdue Debt Trends & Cash Flow Bottlenecks:

  • Payment Delays on the Rise: Chelsea Ware notes that while a substantial volume of payments continues to come through, delays, payment plans, and cash flow strains are noticeably increasing across the construction supply chain.

  • Ripple Effects on Subcontractors: Main contractors delaying payments creates a trickle-down effect on subcontractors and sole traders, leaving multiple businesses vulnerable to a single client non-payment.

  • Unexpected Insolvencies: Alongside long-monitored accounts showing warning signs, credit teams are seeing unexpected failures driven by short-term cash flow freezes.

• "Can't Pay" vs. "Won't Pay" Dynamics:

  • Shift Toward "Can't Pay": Rosie Payne points out that sluggish cash flow across the supply chain means most current delays stem from genuine financial struggles rather than simple unwillingness.

  • Managing Payment Plans & Flexibility: With record requests for payment plans and split payments, credit teams are having to adapt, flex credit limits, and evaluate clients on a case-by-case basis to keep trade moving safely.

• Tactical Invoice Disputes & Red Flags:

  • Disputes as Cash Flow Shields: Disputes often increase during tough economic periods as clients seek excuses to delay payments.

  • Spotting Red Flags: A major red flag occurs when a client who rarely queries invoices suddenly places an entire set of overdue invoices into a Proof of Delivery (POD) query.

  • Operational Readiness: To counter tactical delays, credit teams must ensure backend operational processes (automatic PODs, order acknowledgements) are robust, removing excuses and enabling swift payment demands.

Webinar Announcement

To sign up for the next webinar, please visit:

👉 https://www.cicm.com/cicmevents.html

Connect with Us

Have questions about managing credit risk or handling disputed debts? Reach out on LinkedIn:

• Emma Reilly: Search for Emma Reilly Top Service on LinkedIn.

Subscribe to Minimise Debt, Maximise Cash on your favourite podcast platform so you never miss an episode!