Tech firms waiting three times longer for payment
Irish technology companies are waiting three times longer to be paid for their products and services than they were one year ago, a major new survey has found. The 1,400-member Dublin Chamber of Commerce survey found that the average payment period for companies had risen from 30 days to 90 days.
“It’s not simply about the banks not lending money,” said Aebhric McGibney, policy director of the Dublin Chamber of Commerce. “People are taking longer to pay each other.
A year ago, it was 30 days. Six months ago, it was 60 days. Now it has risen to 90 days. And it’s getting worse. It’s seriously affecting business confidence.”
The survey also found that some companies were being left up to six months to receive redundancy support payments from the government, despite a commitment by the government to reduce payment times to businesses to 15 days.
In May, Tánaiste Mary Coughlan set up the national Credit Supply Clearing Group to improve payment processes to indigenous firms. However, the 15-day payment promise is not being heeded by state bodies other than government departments, according to the survey.
“Redundancy payments are taking up to six months,’’ said McGibney. “Some of our members can’t afford to make redundancies because the cheques for previous rounds of redundancies haven’t yet arrived from the government.”
The survey also found that commercial rates were becoming unaffordable for many companies.” Some of our members will not survive if the rates system stays as it is,” said McGibney. “Many pay annual rates of over €150,000. That’s a fixed cost with no flexibility.”
