Small firms wait months for payment

THE STATE and big businesses are continuing to squeeze smaller enterprises by delaying payments for goods and services by up to three months, according to the Irish Small and Medium Enterprises association.

It says its latest survey shows members are waiting an average 73 days for payment when 30 days is supposed to be the standard. Big businesses and State agencies are the chief culprits, and it claims they are deliberately delaying payments to smaller suppliers.

The association’s credit watch survey for summer 2011 shows small businesses have to wait an average of 77 days for payment while medium-sized firms wait 67 days. Some 44 per cent of the 600-plus respondents are experiencing delays of three months or more, while 14 per cent have to wait over 120 days. The survey says Government departments have improved payment times, but State agencies and big businesses have increased delays.

Chief executive Mark Fielding called on Minister for Enterprise Richard Bruton to introduce legislation that would require all businesses to pay up within 30 days.