Survey: 74% of Self-Employed Tradespeople Carry Above-Average Business Debt
What happened
A survey by Lowell, the UK debt management group, has found that nearly three quarters (74%) of self-employed tradespeople carry more business debt than the national average.
The average tradesperson owes close to £6,000 in business debt. At the sharper end, almost 5% of respondents said their debt sits between £50,000 and £75,000.
The report points to a combination of rising material prices, upfront equipment investment, and the persistent challenge of securing consistent work as the main drivers. Late payments and unpaid invoices compound the problem — tradespeople are often left covering job costs out of pocket while waiting for clients to pay up.
What this means for tradespeople
If you're a plumber, electrician, or builder running your own business, this probably isn't surprising — but the scale is worth paying attention to. Nearly three in four of your peers are carrying meaningful debt, and late payments are a big part of why.
The trades that rely most on upfront material purchases — kitchens, bathrooms, extensions — tend to feel it worst. When a customer takes 60 or 90 days to pay, you're effectively lending them money interest-free while servicing your own supplier accounts.
This is one of the less obvious reasons why a strong online reputation matters. Tradespeople with consistent 5-star Google reviews tend to attract higher-quality customers who pay on time — homeowners who've done their research, chosen you deliberately, and value the work enough to settle promptly. A weak or empty Google profile, on the other hand, often means competing on price with bargain-hunters who are statistically more likely to dispute invoices or delay payment.
What to do about it
The immediate fix for late payments is better terms — deposits, staged payments, and clear invoicing. But the longer-term fix is positioning yourself as the obvious choice in your area, so you can pick your customers rather than chasing anyone with a pulse.
That starts with your Google reviews. A steady stream of recent, genuine reviews does two things: it pushes you higher in local search results (so you're not scrambling for leads) and it pre-qualifies the customers who contact you (they've already decided you're good before they call).
Source: Fix Radio / Lowell