Research and analysis

Trade credit in the UK construction industry

Examines the trade credit to UK construction firms and how they use it to support operations. BIS research paper 118.


Research commissioned by the Department for Business, Innovation & Skills (BIS) to inform analysis for the ‘Industrial Strategy for Construction’.

It explores the availability of trade credit for UK construction firms and how they rely upon it to support their operations. It looks at:

  • how companies in the construction sector finance their work
  • how finance structures within the construction sector compare to those of the economy as a whole
  • how the way construction companies fund themselves differs between main contractors and subcontractors, and by size of firm
  • whether the structure of construction industry finance significantly altered since the financial and banking crisis

It makes recommendations on the implications of these findings for companies in the construction sector.