Irish businesses improved their payment performance by almost four days in the first quarter of 2014, according to the latest insights from Experian, the global information services company.
Businesses in the Republic of Ireland paid invoices on average 18.44 days beyond invoice terms during January, February, and March 2014, compared to 22.40 days during the last three months of 2013. However, the year on year figures show a more significant improvement, with businesses increasing their payment performance by almost seven days on average, from 25.39 days beyond terms in the first quarter of 2013 to the current 18.44 figure.
The latest payment performance analysis also reveals:
- Businesses in the Republic have been steadily improving their payment performance over the last year, moving from an average of 25.39 DBT in the first quarter of 2013, to 23.91 in the second quarter, 23.23 in the third quarter, 22.40 in the fourth quarter and 18.44 in the first three months of 2014.
- Businesses in Donegal are paying their bills the fastest, averaging 11.74 days beyond terms in the first three months of the year.
- Businesses in Westmeath are paying their bills 10th fastest, averaging 15.97 days beyond terms in the first three months of the year.
- Conversely businesses in Tipperary are now the slowest to settle their bills averaging 24.05 days beyond terms.
Declan Murphy, commercial director at Experian Ireland explains, “The improvement in payment performance is a welcome development for Irish SMEs who rely on payment within terms to ensure healthy cash flow in their business. However, Irish businesses need to continue to operate with caution and adapt their credit policies to ensure they can make smarter, more informed decisions about who they are doing business with. Good forward planning, business monitoring, and flexible policies to address late payments can help businesses make more informed choices and minimise the impact of a late bill.”