The Irish Exporters Association said today that over 50% of Irish exporters were hit by bad debts last year.
The Export Ireland Survey 2004 showed that 46% of Irish exporters thought they wasted too much time chasing payments and 44% believed that customers take too long to cough up payment.
However, exporters are optimistic on the year ahead, with over half expecting an increase in turnover.
Speaking on extended credit, Michael Counahan, president of the association, said that giving customers extended credit puts a huge strain on a company's resources.
"The survey clearly establishes that the great majority of exporters depend on cash flow and overdrafts to fund this credit," he said.
He added that this increases the level of risk involved and the ability of exporters to expand their business.
State support for exporters was rated badly by half the respondents, with only 27% giving a positive rating here. Counahan commented: "There is clearly a significant gap for government and Enterprise Ireland to address".