SMALL BUSINESSES are being “destroyed” by late payments, the Irish Small and Medium Enterprise (Isme) association has warned.
The latest survey carried out by the lobby group found that small businesses are now waiting an average of 73 days for payment, the longest waiting period on record.
Some 45 per cent of small enterprises are experiencing delays of 90 days or more.
According to Isme “big business” and the State sector are the main culprits for late payments.
“The situation is continuously deteriorating as the delays have increased from 60 days in autumn of 2007 to the current excessive 73 days,” said Isme chief executive Mark Fielding. “And banks are . . . refusing to extend credit limits to assist cash flow.”
Mr Fielding described the Government’s recent announcement that it had approved arrangements to cut the payment period to its business suppliers from 30 to 15 days as “purely a sop”.
Isme also accused the Government of a “dereliction of duty” in the struggle to ensure timely payment for small and medium firms.
“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,” Fielding said.
