The period of time small and medium-sized firms have to wait to be paid has extended to 73 days, according to a representative body for the sector.
A survey from the Irish Small and Medium Enterprises found that less than a quarter of firms received payment within 30 days while 45 per cent had to wait for a minimum of 90 days.
According to Isme the average waiting time has extended from 60 days in the autumn of 2007 to 73 days, a wait the association describes as “excessive”.
One in eight, or 15 per cent, had to wait over 120 days, an increase of 10 per cent compared with Isme’s Spring survey.
“The recent announcement that Government had approved formal arrangements to reduce the payment period by Government departments to this business suppliers from 30 to 15 days is purely a sop from the Tánaiste and does little to assist,” according to ISME chief executive Mark Fielding.
He said the tightening of lending by bank, who he said were refusing to extend credit limits to assist cash flow, was compounding the problem.
Mr Fielding said a mandatory payment period of 30 days was required and that an equivalent of the small claims court should set up for businesses to settle disputes.