Smaller contractors and building materials companies could face a liquidity crunch if big construction and engineering groups keep delaying payments to suppliers, McGrathNicol has warned.
Construction and engineering companies paid suppliers 10.5 days more slowly in 2016-17 than they did a year earlier, reversing the previous trend of paying suppliers faster, according to the insolvency group’s annual working capital survey.
The slowdown comes as companies find it harder to recover owed cash from clients, collecting payments 8.5 days more slowly than a year earlier.
Macmahon Holdings was the only company of the 16 engineering and construction groups surveyed by McGrathNicol that paid its suppliers more quickly in 2016-17. By co…
Read the full article at: http://www.afr.com/business/debt-payment-delays-could-lead-to-liquidity-crunch-warns-mcgrathnicol-20171110-gzixgu
