Client News > Release

09-06-2010

Payment performance improves in Ireland

Businesses in both the Republic of Ireland and Northern Ireland saw their payment performance improve during the first quarter of 2010 compared to last year, according to the latest insight from Experian®, the global information services company. However, Irish businesses are still paying their overdue bills on average eight days later than companies north of the border.

Businesses in the Republic of Ireland are now paying their invoices 25 days beyond terms, two days faster than in Q1 2009. However Northern Ireland businesses are paying their bills 17 days beyond terms, an improvement of three full days on the 2009 average of 20 days beyond terms.  

By analysing the payment records of tens of thousands of businesses in the Republic of Ireland and Northern Ireland, including those owned by overseas companies, Experian is able to identify both if and, crucially, when they are going to pay their debts. The latest Experian payment performance analysis reveals that: 

·         Irish businesses paid their bills on average 25.11 days beyond terms in the first quarter of 2010, a year-on-year improvement of two days compared to the 27 days beyond terms average of Q1 2009.

· However, for the first three months of the year payment performance among Irish companies moved in a negative trajectory, with businesses paying 22, 26 and 27 days beyond terms in January, February and March respectively. 

· In comparison, businesses in Northern Ireland paid their bills on average 17.28 days beyond terms in the first quarter of 2010 and 20.42 in the first quarter of 2009. For the first three months of the year payment performance has stayed relatively consistent showing a slight improvement, at 16, 17 and 18 days beyond terms for January, February and March of this year. 

· Kerry businesses were the quickest in the country to pay their bills, averaging just 20.93 days beyond terms in Q1 2010.   

· At the other end of the scale, businesses in Wexford were the slowest to settle bills, paying on average 36.88 days beyond terms. 

Ciaran Canning, Business Development Manager at Experian Business Information in Ireland, explains: "Despite the EU Directive on Late Payment in Commercial Transactions Regulations, which allows companies to automatically charge interest penalties on accounts outstanding beyond 30 days, late payment remains an issue for businesses in Ireland. The average payment period is still significantly slower than in the UK & Northern Ireland.

"In the current climate, when many businesses are struggling with cash flow and the increased cost of doing business, late payments can have a detrimental effect as businesses are forced to find alternative forms of working capital finance. Late payments also present an unnecessary administrative burden on businesses and prove to be a real strain on resources when a debtor is using a business as a source of free credit."  

Experian’s payment performance data helps an organisation to identify whether they should do business with a customer in the first place. It also allows them to identify whether a customer is simply a serial late payer, or one whose payment performance is rapidly deteriorating - indicating its potential inability to meet future commitments.

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. 

Counties with Fastest Paying Businesses in First Quarter 2010  

Rank Average DBT County 
 
1 20.93 Kerry
2 21.56 Wicklow
3 21.68 Cavan
4 21.79 Mayo
5 21.87 Limerick
6 22.48 Galway
7 23.15 Carlow
8` 23.16 Cork
9 23.56 Laois
10 23.79 Dublin
 

Counties with Slowest Paying Businesses in First Quarter 2010

Rank Average DBT County 
 
1 36.88 Wexford
2 34.76 Waterford
3 30.27 Offaly
4 30.02 Tipperary
5 29.26 Leitrim
6 28.92 Monaghan
7 28.10 Kildare
8 28.07 Louth
9 27.55 Longford
10 27.04 Westmeath