Small business group ISME has claimed that its members are suffering from 'deliberately delayed' payments from State agencies and bigger companies.
This is despite the findings of its winter credit survey, which shows that the average payment period is 72 days, a slight improvement from 73 days in its autumn survey. 43% of the 700 firms in the survey are experiencing delays of three months or more.
ISME says the delays are still 'excessive' and are creating cash flow difficulties for small business.
'If small business has to pay within 30 days but is forced to give 90 and in some cases 120 and more days credit to the financially more powerful big business and state organisations, then this acts, not just as a constraint on growth but as a threat to the very existence of many small businesses,' said ISME chief executive Mark Fielding.
He claimed that legislation on the issue was a 'sham', and called for a mandatory payment period of 30 days with no exceptions.
Meanwhile, just over a third of 122,000 companies analysed by consultants Vision-net.ie are in danger of failing according to a credit report issued by the firm.
Vision-net analysed the accounts of the companies over a three-year period. It reported that many businesses, especially in the construction, motor and property sectors, had built up significant debts and were struggling to either repay them or to secure further funding from banks to trade through their cashflow problems.
Bid to boost small business tender opportunities
Enterprise, Trade & Innovation Minister Batt O'Keeffe has asked public sector bodies to build stronger relationships with Enterprise Ireland.
The aim is to boost the participation of small businesses in tender opportunities for public service work. The Minister said the agency had already connected more than 70 of its client firms with public bodies.
The Dublin Airport Authority (DAA) is talking to technology firms about developing new systems to help improve passengers' experiences as they transit through terminals. A number of companies are also involved in opportunities for the design, construction and management of infrastructure supporting the ESB's roll-out of electric cars.
