Firms taking 26 extra days to pay

BUSINESSES in counties Cavan and Roscommon are the fastest at paying their bills while firms in counties Kildare and Monaghan take the longest.

This is according to figures released by services firm Experian, which found that on average Irish firms are taking 26 days beyond credit terms to settle their bills — four days more than businesses in the North.

The figures, which cover the second quarter of the year, show a one-day improvement on the previous quarter. In the second quarter of 2008, however, Irish businesses were paying their bills on average 24.85 days beyond terms — almost two days earlier than the same period this year.

Payment performance manager at Experian, Paula Carney, said late payments “can have very damaging consequences for businesses”.

“There is a large percentage of businesses in Ireland that have yet to review their credit policies in light of the current climate and are continuing to extend credit terms to customers who do not have the means to pay on time.

“This is very unhealthy business practice and can lead to dire consequences if a debt turns bad.”

Small firms group ISME called on the Government to introduce a mandatory payment period of 30 days from the end of month of invoice or delivery.

It also proposed a mechanism along the lines of the existing small claims court structure to settle business-to-business disputes.