The scale of the problem is stark, with tradespeople owed an average of £2,023 in late payments. Over two-thirds (68%) of tradespeople are currently chasing at least one late payment from their clients. Many are juggling multiple outstanding debts: almost one in four (23%) are currently chasing four or more late payments simultaneously, with 7% chasing six or more.

Over four in 10 tradespeople (42%) surveyed have been forced to write off debts of over £500 from invoices that were never paid and a fifth (20%) have abandoned chasing invoices of over £1,000. The average largest amount written off by tradespeople is £1,646.

Nearly half (46%) of tradies say that they now ask customers for ‘proof of funds’ before starting larger jobs with a further four in 10 (44%) saying that they are considering doing so. The most common proactive measure is taking half the payment upfront (39%), followed by sending invoices well in advance (29%) and charging late payment fees (26%).

Mark Summerville, product manager at Direct Line business insurance, commented: “Late payments are often cited by tradespeople as their biggest problem.

“When a client fails to pay on time after work is completed, it can create a highly stressful situation. Payment delays disrupt both personal and business finances, affecting the ability to cover bills and manage cash flow for future projects.

“In some cases, tradespeople feel they have no choice but to write off unpaid invoices, which is not only financially damaging but also deeply demoralising.”