The Irish SME Association (ISME) today published the results of its quarterly Credit Watch Survey for the second quarter of 2018. Based on the findings, credit days for this quarter have worsened from 52 to 55 days.
Businesses in Ulster are waiting longest to be paid at 64 days. While the Manufacturing and Construction sectors are waiting longest on payment - an average of 63 and 69 days respectively.
The report finds that 67% of businesses are experiencing delays of 2 months or more. As a result of this, 71% of SMEs would favour a statutory 30 day payment regime.
Commenting on the results, ISME CEO, Neil McDonnell said, "Today’s report showing an increase in payment delays is disappointing. Cash flow certainty is essential for sustainable businesses. Failure by businesses to pay each other on time has a knock-on effect on productivity, development and growth."
He added, "There needs to be a change in our attitude when it comes to paying creditors. Today’s results paint a negative image for big business when paying SMEs. 41% are taking longer to pay, which is unacceptable. Few small businesses have the same working capital buffers that big businesses enjoy, and can’t wait to get paid."