Late payments are getting worse. Who actually carries the cost?

Late payments have become an accepted part of doing business in construction. But the latest data suggests the problem is getting worse.

CreditorWatch reported that Australian business payment arrears reached their highest level in six years in April 2026. Construction was among the hardest-hit industries, with 7.15% of invoices more than 60 days overdue.

For tradies and subcontractors, the problem is simple.

If you complete the work and wait 60 days to be paid, you have effectively given your customer a 60-day interest-free loan.

During that time, you still need to pay wages, buy materials, cover fuel, service vehicles and fund the next job.

The work might be profitable on paper, but that doesn't mean the money is sitting in the bank.

Research from CreditorWatch found that 80% of Australian businesses experienced late or overdue payments during the previous 12 months, with delays averaging 25 days beyond the agreed payment terms. Sixty per cent had used personal funds to support their working capital.

That is where late payment becomes more than an inconvenience.

One customer paying late can leave a business delaying payments to its own suppliers or using cash from another project to fill the gap. The pressure simply moves down the chain.

Better invoicing and clearer payment terms can help, but they still rely on the money being available when payment is due.

Witzer takes a different approach. Project funds can be committed upfront and held securely, then released as agreed work is completed.

Instead of finishing the job and hoping the money arrives, both sides know the funds are there from the beginning.

Because the person doing the work shouldn't also have to finance it.