Businesses in Leitrim are fastest to pay their bills, with an average 17.07 days beyond terms according to the latest figures from Experian.
The figures also showed that 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.
In Northern Ireland, businesses continued to pay significantly faster than their counterparts in the Republic, paying on average 14.5 days beyond terms in the second quarter 2013.
By analysing the payment records of thousands of businesses in the Republic of Ireland and Northern Ireland, including those owned by overseas companies, Experian is able to identify if and when they are going to pay their debts.
The latest Experian payment performance analysis reveals that:
• Businesses in the Republic paid their bills on average 23.14 days beyond terms in the second quarter of 2013 compared with 26.61 days beyond terms in the first quarter.
• In Northern Ireland, businesses paid their bills on average 14.5 days beyond terms during the three month period, compared with 15.9 days beyond terms in Q1 2013.
• Businesses in Cavan are now the slowest to settle their bills averaging 26.84 days beyond terms.
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,” he told the Leitrim Observer following the release of the figures last week.
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.