Business

A third of invoices from small firms in Northern Ireland paid after 30 days

More than a third of payments owed to small firms in Northern Ireland by large companies in the UK are paid after 30 days , according to new figures.
More than a third of payments owed to small firms in Northern Ireland by large companies in the UK are paid after 30 days , according to new figures. More than a third of payments owed to small firms in Northern Ireland by large companies in the UK are paid after 30 days , according to new figures.

MORE than a third of payments owed to small firms in Northern Ireland by large UK companies are paid after 30 days, according to new figures.

Research from the UK Small Business Commissioner has revealed that 34 percent of invoices issued by small businesses in the north take longer than the 30-day payment terms.

The Northern Ireland figure is above the UK average (32 per cent) and alongside the east midlands is the joint-second worst in the UK behind only Yorkshire and the Humber.

According to the study invoices are taking, on average, 41 days to be paid to small firms in the north - four days longer than the UK average of 37 days and well above the Small Business Commissioner’s recommended exemplar of 30 days.

As a result of the research, the UK Small Business Commissioner, Paul Uppal, is to recommend a traffic light warning system to give small firms a signal about which large businesses pay their bills late.

Mr Uppal said the effect of late payment on small firms in Northern Ireland can be "devastating".

"It impedes business growth, but also has an impact on the lives and mental health of those running small firms," he said.

“Our initial findings indicate that almost two thirds of payments are likely to be owed to smaller firms at any time. This is money that could be used to grow smaller businesses and generate tangible economic activity. Instead it is stuck on large firms’ business ledgers doing nothing," he said.

Ed Thurman, managing director of global transaction banking at Lloyds Bank Commercial Banking added:

“We have discovered wide variations in payments depending on where businesses are located. For some businesses two weeks can be critical in the financial well-being of a smaller businesses."