- Credit days improve from 57 to 55 days for businesses.
- Businesses in Munster and Ulster wait 60 days to be paid.
- 67% of businesses are experiencing delays of 2 months or more.
- Wholesale sector waits longest to be paid.
ISME, The Irish SME Association today (February 16th) published the results of its quarterly Credit Watch Survey (Q4) for 2017. Based on the findings, Credit days for this quarter have improved from 57 to 55 days. Businesses in Ulster and Connacht are waiting longest to be paid. While the Wholesale sector is again waiting the longest on payment; an average of 75 days. The Association highlights the importance of cash flow certainty.
Commenting on the results ISME, CEO Neil McDonnell said “Today’s results represent a consecutive decline in the number of days businesses are waiting on payment. Credit days for this quarter are at a two year low, which is encouraging, although some sectors are experiencing unacceptable delays in payment. The Wholesale sector is waiting on average 75 days to be paid.”
“There needs to be a collective effort on behalf of all business to pay each other on time. It makes practical and common sense to do so. Cash flow certainty is key for the growth, prosperity and development of a business”
The main findings from 516 respondents in the third week of January are:
- Average payment period for SMEs in Q4’17 improves from 57 to 55 days.
- 67% of SMEs are experiencing delays of 2 months or more, down from 69% in Q3’17.
- 81% of respondents do not charge interest on late payments,
- 12% are afraid to charge for late payments in case they lose custom.
- 17% of multinationals are taking longer to make their payments, down from 50% in Q3’ 17.
- 76% of SMEs favour a statutory 30 day payments regime; with no opt out.
- The Wholesale sector is waiting longest on payment at 75 days, while Hospitality waits 30 days.
- Businesses in Ulster and Munster are waiting longest on payment at 60 days.
- Businesses in Connaught wait the shortest time at 39 days.
The Association called on Government to;
- Actively publicise, promote, and champion the Fair Payment Code for all businesses.
- Insist on adherence to Fair Payment Charter as criterion for granting state contracts.
- Insist that all state agencies adhere to the 15 day rule.
- The office of Government Procurement should require all tenderers to publicise their creditor days.