Calls for SME 30-day ‘regime’

Isme has called for a statutory 30-day business-to-business payments ‘regime’ to be introduced, stating that the current prompt payments legislation has failed to benefit SMEs since being introduced 12 years ago.

The latest Credit Watch Survey from the small firms lobby group, published this morning, shows that despite a slight improvement in the current quarter, Irish SMEs are still waiting an average of 60 days to be paid by customers. This has led the group to conclude that the current voluntary code on prompt payments is being ignored by big business.

The survey also shows that three-quarters of all SMEs have their credit terms dictated to them by larger business customers and that, despite legislation allowing them to do so, only 3% of SMEs charge interest on late payments.