Most SME's in Ireland, write off an average of €13,780 annually due to customer non-payment or insolvency, according to the recent Global Business Monitor published by Bibby Financial Services Ireland.
The firm which provides financial support and funding solutions to Irish SME’s said that over half (57%) of the businesses surveyed cited collecting payment from customers on time as an area that has proven to be the most problematic in managing their business cashflow.
Meanwhile, almost a third of SME’s (32%) said that they suffered from bad debt over the past 12 months.
Mark O’Rourke, head of business with Bibby Financial Services Ireland, said it’s 'shocking' that such a large amount is being lost by Irish businesses each year as a result of bad debt.
“SME’s need to take steps to ensure they don’t fall foul to non-payment such as completing full background checks on all customers before extending credit, diversifying their customer base and ensuring strict payment protocols are enforced.” He added.
With almost 250,000 SME’s around the country, this equates to a total of €1.7 billion in revenue being lost by Irish businesses every single year.
© 2017 - Checkout Magazine by Donna Ahern