Business group ISME has warned that small businesses are in danger of "going to the wall" because of delayed and late payments from big firms and State agencies.
In its quarterly Credit Watch survey, ISME says the average payment period in Ireland for small and medium enterprises is 71 days, a similar level to the previous quarter.
40% of companies saying they were experiencing delays on payments of three months or more, while 12% are waiting over 120 days, a small improvement on the December figures of 14%.
The survey shows that Ulster businesses are forced to wait the longest to be paid at 79 days, while Dublin remains the best at 68 days. It also reveals that construction firms wait on average of 77 days to get paid while services have rise to 67 days.
ISME chief executive Mark Fielding said the Government had recognised the problem of late payments in its Action Plan for Jobs, but that little action has been taken.
ISME is calling on the Government to introduce a "fair payment charter" for all businesses, and says this should be adhered to by companies seeking State contracts. It also wants State agencies to pay within 15 days.
''All businesses and in particular small enterprises must be allowed to predict their cash flow with some certainty. However, because of abusive dominance of big business, cash flow in the entire SME sector is drying up and this, coupled with the lack of available and affordable credit from the banks, is putting many small businesses at risk, with the resulting threat of closures and job losses,'' Mr Fielding stated.
