BUSINESSES HAVE to wait almost 11 weeks for customers to pay them, according to a survey due for release today.

It also shows that the health service is ignoring Government commitments on paying its bills.

The Small Firms’ Association (SFA) winter credit survey shows that companies have to wait an average of 75 days from the date of invoice before they get paid.

A study last autumn found that the average time was 66 days.

The association’s director, Patricia Callan, said yesterday that the situation is squeezing many small firms’ cash flow and risks driving some of them into insolvency.

Since 2002, EU regulations require invoices to be paid within a period of 30 days from the date that they, or goods or services, are received. However, the law allows companies to exempt themselves from this by setting their own contractual terms.

Ms Callan accused State and large companies of abusing their positions by deciding when they want to pay suppliers.

“It is appalling that the Health Services Executive, in its terms and conditions, has set out a payment period of 45 days, in direct contravention of commitments given by An Taoiseach and An Tánaiste that all central Government departments will pay their bills within 15 days and all other State bodies and local authorities will pay within 30 days,” she said.

She called on the Government to instruct the entire State sector to pay all its bills within 15 days.

“If the Government is serious about helping small business with their cashflow problems, then this is essential.”