Overdue payments threaten businesses

ONE in five Irish businesses say overdue payments from customers are threatening their survival, according to a new survey.

The survey, by European credit management company Intrum Justitia, found that businesses here only paid their invoices more than two weeks after they fall due.

Almost half of all companies surveyed said slow payment was having a major impact on their cashflow.

Intrum Ireland managing director Nick Biggam said companies needed to improve their credit management practices to help protect themselves from the worst effects of non-payment.

“A healthy credit management system and correct payment behaviour is essential for the survival and growth of business in Ireland and across the single market,” he said.

Ireland’s slow payment record was broadly in line with the European average.

Businesses in Sweden and Finland tended to settle invoices within a week of their due date, while Portugal was singled out as the worst offender with typical payment delays of five weeks.

The survey also showed Irish businesses were confident about their future prospects. One third of businesses surveyed expected general economic conditions to have a positive effect this year.

Debtors in financial difficulties and intentional late payment were the most frequently cited reasons for delays in paying, according to the survey.