At the announcement today of the latest ISME Credit Watch Survey results for Winter 2009, the Association said that many SMEs face

bankruptcy because of the inordinate payment delays, exacerbated by a continuing lack of bank credit.

Commenting on the survey results, ISME Chief Executive Mark Fielding stated, "Despite increased efforts by small businesses to collect cash,

more than half of small businesses (59pc) are still left waiting longer for payment, with the average payment period being 75 days; among the

highest in Europe. Almost half (48pc) of companies now have to wait over 3 months to be paid. The situation is continuously deteriorating as

the delays have increased from 50 days at the introduction of Late Payments legislation to 60 days in Autumn of 2007 to the current excessive 75 days.

The main culprits are the large businesses who abuse their dominant position and take longer credit, thereby starting the domino effect down the supply chain".

 

"The fact that so many small and medium companies are being forced to wait longer for payment shows, not only that the seven year old legislation

is useless but that it actually 'aids and abets' larger entities in delaying payments; squeezing small business. The Government's inactivity is disgraceful

and will hasten the demise of many small enterprises and throw more workers on the dole," continued Fielding.

 

Actual average payment period in Ireland for SMEs is 75 days and only 16pc of firms are being paid within 30 days.

 

The survey found that 48pc are experiencing delays of 90 days or more and 14pc are waiting over 120 days, a decrease from 17pc

in the Autumn Survey. Connaught and Ulster are the slowest at 82 and 87 days while construction firms are waiting a massive 88 days,

a reduction from 98 days in Autumn.