SMEs waiting longer to get paid
The average payment period in Ireland for small and medium sized enterprises (SMEs) has increased to 76 days, according to the Autumn ISME Credit Watch Survey.
It shows that only 16pc of firms are now being paid within 30 days and 47pc are experiencing delays of 90 days or more. Nearly one-fifth (17pc) are waiting over 120 days, an increase of 10pc compared to the Spring survey.
Leinster and Munster are the worst regions, at 77 days, while construction firms are waiting 98 days for payment.
“Despite an increase in SME credit management training and practice, more than half of small businesses (56pc) are waiting longer for payment, with the average payment period being 76 days; among the highest in Europe. The situation is continuously deteriorating as the delays have increased from an average of 60 days in Autumn of 2007 and banks are, in the main, refusing to extend credit limits to assist cash-flow," said ISME chief executive Mark Fielding.
“The fact that so many companies are being forced to wait longer for payment shows that the seven-year-old legislation is useless and should be amended, as small businesses continue to be squeezed by their larger counterparts,” he added.