The organisation representing small and medium businesses has claimed the Government is refusing to address the problem of late payments.
The Irish Small and Medium Enterprises Association said large companies and State agencies were deliberately delaying payments.
A survey of more than 500 businesses found that many were being forced to wait an average of 73 days for money owed to them.
ISME Chief Executive Mark Fielding said the Government must introduce a mandatory credit period to guarantee payments within 30 days.
Mr Fielding said late payments have always been a problem for small businesses and this has intensified as State bodies and accountancy-led big business take longer to pay during the current recession.
He says that when smaller businesses are not paid on time, they cannot in turn pay their suppliers, and the vicious circle ends with the smallest and most vulnerable being forced to close down.
