ISME: SMEs Waiting Average Of 60 Days For Payment
Published on Dec 15 2014 11:28 AM
The Irish Small and Medium Enterprise Association (ISME) has released a survey showing that the average payment period for SMEs in the fourth quarter of 2014 has only slightly improved to 60 days.
ISME launched its quarterly Credit Watch Survey yesterday, which showed that 24% of SMEs are experiencing delays of three months or more, while over 5% are waiting more than 120 days. Dublin businesses continue to wait the longest, at 61 days. Meanwhile, Distribution businesses wait on average 69 days, while Hospitality businesses wait on average 54 days.
Speaking at the survey launch, ISME Chief Executive Mark Fielding stated, “Once again the ISME figures show how Irish SMEs are being abused by their big business customers and recent ECB SAFE figures also confirm that big business in Ireland extract more credit from trade debt than any other EU country.”
The group has called on the Government to step in and ensure that businesses get paid on time. The group want a change in the Prompt Payments legislation, and for the introduction of a statutory 30-day payments regime for all businesses trading within Ireland with other Irish-based enterprises.
Fielding said, “Small and medium businesses rely heavily on a smooth cash flow from their customers in order to pay their bills, buy the stock and take advantage of market conditions and pay wages and taxes."
He called on the government to "stand up to big business and insist on prompt payments, the lack of which is placing many small businesses at risk, with the resulting closures and job losses.”
The ISME Credit Watch surveyed 952 respondents in the second week of December 2014.
© 2014 - Checkout Magazine by Genna Patterson