70% of businesses experience delays of 2 months or more.
83% of SMEs would favour a statutory 30 day payment regime.
The ISME Credit Watch Survey for the first quarter of 2017, was published today (27th April). Credit days remain unchanged at 59 days from Q4’16 and Dublin businesses are waiting the longest to be paid.
Commenting on the results ISME CEO Neil McDonnell said “Today’s results are no better than the previous quarter and are disappointing. Paying on time is vital for the economic viability of any business”
“We need a change in attitudes to late payments in Ireland. We cannot accept 70% of businesses experiencing delays of 2 months or more in receiving payment. We call on all businesses to sign up to the Prompt Payment Code.”
The main findings from 764 respondents in the last week of March are:
Average payment period for SMEs in Q1’17 remains static at 59.
70% of SMEs are experiencing delays of 2 months or more, marginally down from 71% in Q4’16.
Late interest is charged by only 4% of SMEs.
13% are afraid to charge for late payments in case they lose custom.
28% of big businesses are taking longer to make their payments, up from 18% in Q4’ 16.
83% of SMEs favour a statutory 30 day payments regime; with no opt out.
Construction is waiting 76 days, while Hospitality waits 30 days.
Dublin businesses wait longest on payment at 59 days, followed by businesses in Leinster.
The Association called on the Government to;
Prioritise the mandatory introduction of Prompt Payments legislation.
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, including the HSE, adhere to the 15 day rule.
The office of Government Procurement should require all tenderers to publicise their creditor days.
“ISME is actively promoting the need for vendors and suppliers to become prompt payers. In February, the Association launched in conjunction with the Department of Jobs, Enterprise and Innovation the Prompt Payments Code. We continue to encourage business to sign up and become prompt payers”.
For further information, please contact
Neil McDonnell, Chief Executive
T: 01 6622755, M: 087 2995658
Sectorally, Businesses in the construction sector are waiting longest to be paid. While those in the hospitality sector are waiting the shortest amount of time at 30 days. Distribution is waiting 68 days, services 62, manufacturing 57 and wholesale 48. With the exception of the hospitality sector, all other areas are experiencing significant delays in receiving payment.
Regionally, Businesses in Dublin are waiting longest at 59 days, followed by the rest of Leinster at 58 days. Munster and Ulster businesses are waiting 57 days and 55 days respectively, while businesses in Connaught are waiting the shortest period of time of 45 days.