Late payment in the construction industry: Reading the signs in your supply chain

27 March 2018


It is not uncommon for small contractors to suffer from late payment in the construction industry. With the current economic turbulence we are all facing, it is easy to see why the financial situation is critical for many small construction businesses in the UK.

The key to success is obvious – find and keep reliable, solvent customers. Reducing the risk of non-payment is fundamental, especially if you are a supplier or a purchaser in a longer supply chain. But how can you read the signs and know where to go for information on supply chain partners?

It can be time consuming to find and understand key financial information regarding potential clients. Companies House only offers abbreviated accounts and you won’t be able to view turnover or profit and loss. You can search online for CCJs and judgements against people and firms. Being able to effectively rate a business and understand whether a company is likely to stay solvent and pay on time can be a difficult and time consuming task.

Embracing technology and using online tools is a good start to navigating a supply chain and finding successful, solvent customers.

Copronet, a user-friendly platform to help trades, suppliers and contractors come together and manage work online effectively in one place, offers a quick and easy to use solution to help the issues with late payment in the construction industry. Its Finance Checker tool. The service allows you to check the credit rating of potential and existing suppliers ensuring they are solvent. Unless you perform a credit check, you just don’t know whether a client is capable of paying you.

The Copronet Finance Checker allows you, with just one click, to view information such as company details, credit score and credit limit, payment trends, CCJ’s and much more. The information is provided by CreditSafe one of the UK’s largest and most respected credit rating agencies and it works by using a Rating Model – a highly predictive analysis tool that can give you a view of your current and future customers.

The Finance Checker not only credit checks but will also notify you with any changes. The simple to use service provides you with updated information received daily that will allow you to make informed decisions about who to work with and help you find steadfast suppliers and reliable customers. So how does it work?

Rating Model

The Copronet Finance Checker uses a Rating Model to do one thing: Predict which UK companies are likely to fail within the next year. It was created by analysing companies that had failed within the previous 12 months and searching for commonalities.

To fail: A definition

The Rating Model defines the following as failure:

  • In Receivership/Liquidation
  • Administrator Appointed
  • Appointment of Liquidator
  • Meeting of Creditors
  • In Receivership/Administration
  • Administrative Receiver Appointed
  • Administration Order
  • Company is liquidated or is wound-up

Rating Bandings

Companies are rated 1 to 100 on a scale of risk. Higher risk companies get a low ranking, low risk companies rank highly. The Rating bandings is an easy-to-use segmentation tool which allows you to assess our rating model in 5 simple segments. Copronet Finance Checker also compares companies and then ranks businesses by their likelihood of becoming insolvent, allowing for further and more insightful decisions.


Copronet’s technology means businesses can keep track of all aspects of the supply chain, from checking finances, to asking pertinent questions of potential clients and identifying problems early with the aim of avoiding the contractor being a victim of non or late payment.

Accessible on any device, Copronet is the ideal tool to help you grow, manage and protect your business.

This article was written for NAPIT for their Competent Person Magazine to help advise their members on avoiding non or late payment.

NAPIT is one of the leading Government approved and United Kingdom Accreditation Service (UKAS) accredited membership scheme operators in the building services and fabric sector. There are currently more than 10,000 NAPIT registered installers in the electrical, heating, plumbing, ventilation, microgeneration and building fabric trades across the UK domestic, commercial and domestic markets.

Copronet has partnered with NAPIT to support members with their businesses.

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