43% of SMEs in Ireland have noticed a deterioration in the length of time it takes for an invoice to be paid, according to new data from Bibby Financial Services Ireland.
The research shows that over the last three months, on average it took 28 days for SMEs to be paid.
Those in the construction and transport sectors took the longest to be paid, at 37 and 32 days respectively.
Meanwhile, the research shows that one third of SMEs in Ireland have had to write off bad debts in the past 12 months, with €18,543 the average amount written off.
While 61% of SMEs state that their business' cashflow is stable and meets their needs, 27% feel that they do not have the required cashflow to grow.
"These results clearly demonstrate that managing cashflow and accessing working capital is an ongoing consideration for SMEs," said Mark O'Rourke, Head of Business with Bibby Financial Services Ireland.
"Such funding is vital in ensure businesses can deal with the range of issuing facing them such as inflation and supply chain disruptions as well as offering them the opportunity to invest and grow."
"However, SME's also have to take steps to ensure they don’t fall foul to non-payment such as completing full background checks on all customers before extending credit, diversifying their customer base and ensuring strict payment protocols are enforced," he added.
Today's research shows that of those who have had to open a new business account due to the imminent departure of KBC and Ulster Bank, 55% said they found it hard to find a 'human' to talk to discuss their issues, while 36% said that incurring significant fees and cashflow problems caused by having to reapply for overdrafts were an issue.
