Irish businesses are taking longer to pay their bills - Kildare worst county for stretching credit

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News : Irish

Last Updated: Apr 24, 2009 - 5:31:05 PM

Irish businesses are taking longer to pay their bills - Kildare worst county for stretching credit
By Finfacts Team
Nov 17, 2008 - 6:08:26 AM

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Reflecting tightening economic conditions, Irish businesses are taking longer to pay their bills, according to the latest figures on Payment Performance trends in Ireland, released today by Experian Ireland, a unit of the global information services company. The study analysed the payment records of tens of thousands of Irish businesses, including those owned by overseas companies. Kildare has the worst record fro stretching credit.

Key trends identified by Experian’s Payment Performance analysis, include:

On average, businesses in Ireland pay their suppliers 26.83 days beyond terms (DBT)
Kildare’s businesses are the slowest to settle bills, on average paying 32.32 DBT
Businesses in Offaly are the quickest in the country to pay (18.07 DBT)
In the last six months businesses in all counties took longer to pay suppliers – businesses in Waterford saw the greatest increase (71.8% to 24.12 DBT). Sligo’s businesses saw the smallest increase (1.56% to 18.16 DBT)

Paula Carney, Payment Performance Manager at Experian’s Business Information division, commented: “Everyone in business knows the damaging effects caused by customers paying their bills late, and our analysis illustrates the huge differences in the time it is taking Irish companies to settle up. Experian’s Payment Performance service brings payment history and trends to its credit reporting suite of products, allowing organisations to know when a debtor is likely to pay. This level of insight is incredibly powerful for businesses of all sizes.”

"Armed with this information, companies can change their terms of business for individual customers, demand at least some payment upfront and, in the most extreme cases, refuse to do business with a customer. Companies can use this insight to take the right steps to ensure that their cash flow is strong enough to survive the late payment of a large invoice."

Paula Carney added: “Obviously, many companies are good at paying their bills on time but it is a great advantage to know those that aren’t and can save a company from having its own financial crisis. It is interesting to note that businesses in Kildare are using their debtors as a source of finance. It is worth considering that your customer may be using your receivables to fund their business.”

Payment by County

Top ten counties for quickest/best paying businesses
Rank	County	DBT
1	Offaly	18.07
2	Sligo	18.61
3	Cork	22.84
4	Clare	23.58
5	Kerry	23.58
6	Waterford	24.12
7	Donegal	24.17
8	Kilkenny	24.22
9	Galway	24.25
10	Tipperary	24.51

Top ten counties for slowest/worst paying businesses
Rank	County	DBT
1	Kildare	32.32
2	Wicklow	30.08
3	Cavan	29.11
4	Wexford	28.86
5	Monaghan	28.83
6	Dublin	27.26
7	Meath	27.26
8	Carlow	27.20
9	Roscommon	27.15
10	Longford	27.03