Late payment ‘strangling’ small firms

THE first three months of 2010 could see a significant increase in the number of small firms going bankrupt, due to a lengthening in the period of time it takes them to get paid by customers.

In launching its winter 2009 credit watch survey ISME (the Irish Small and Medium Enterprises Association) branded the late payments legislation – which was introduced in 2002 – “a sham” and accused the Government of continuing to turn a blind eye to the plight of SMEs, as the late payment issue worsens.

The organisation is calling for the Government to properly enforce the legislation “as intended with no exceptions”. It also wants a mandatory guaranteed 30-day payment deadline scheme put in place.