Public authorities slower at settling accounts, says survey
Irish public authorities take longer to settle their accounts than private or business customers, according to the latest payment survey carried out by Intrum Justitia, a leading provider of credit management services.
The bi-annual survey of more than 6,500 companies in 23 European countries, including Ireland, captures trends in payment behaviour.
The Survey reveals that Irish public authorities take an average of 56 days to settle their accounts, while private and business customers take 51 days and 53 days respectively.
“Cashflow is the life blood of any company. It is very disappointing that, despite the EU Late Payment Directive, Irish public authorities have been found to be the worst offenders in settling their accounts. SME’s in particular are hardest hit by late payments and on average are owed twice as much as they owe themselves,” said Nick Biggam, Managing Director, Intrum Justitia Ireland.
The survey also revealed that 450,000 jobs and €23.6bn are lost across Europe each year as a result of insolvencies caused by late payment.
