Irish businesses improved their payment performance by nearly three and a half days in the second quarter of 2013, according to the latest insights from Experian, the global information services company. The research also shows that businesses in Mayo are seventh fastest to pay their bills, with an average 20.25 days beyond terms.
Businesses in the Republic of Ireland paid creditor invoices on average 23.14 days beyond invoice terms during April, May and June, compared to 26.61 days during the first three months of the year. Businesses in Leitrim pay their bills the fastest while businesses in Cavan are now the slowest to settle their bills.
Fin O’Driscoll, Managing Director at Experian Ireland explains, “The improvement in payment performance is a welcome development for Irish SMEs who rely on prompt payments to ensure a healthy cash flow in their business. The introduction of the European payment directive in March this year seems to be having a positive effect on the overall payment performance of Irish businesses and we hope this trend continues. Coupled with that, however, Irish businesses need to operate with caution and carefully examine their credit policies and procedures to ensure they are only extending credit to those customers that are in a position to pay in a timely manner.”
Experian has the largest database of up-to-date commercial payment data in Ireland, which is extracted from more than 6,500 ledgers processed every month.