- €13,780 is the average amount written off by every SME in Ireland annually due to customer non-payment or insolvency
- SME’s encouraged to put practices in place to safeguard against bad debt
€13,780 is the average amount written off by every SME in Ireland annually due to customer non-payment or insolvency, according to the recent Global Business Monitor published by Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SME’s.
The Global Business Monitor is an international survey of over 1,200 small and medium sized enterprises across eleven countries: Ireland, UK, US, Canada, Hong Kong, Singapore, Czech Republic, Poland, France, Germany and the Netherlands.
When asked which area is the most problematic in managing their business cashflow, over half (57%) of Irish SME’s cited collecting payment from customers on time. Almost a third of SME’s (32%) suffered from bad debt over the past 12 months. With almost 250,000 SME’s around the country, this equates to a total of €1.7 billion in revenue being lost by Irish businesses every single year.
Internationally, German SME’s suffer the most from bad debt with businesses writing off €44,000 per annum on average. SME’s in the Czech Republic write off the least, with an average of €6,200.
Mark O’Rourke, Head of Business with Bibby Financial Services Ireland, said:
“It’s shocking that such a large amount is being lost by Irish businesses each year as a result of bad debt. SME’s need to take steps to ensure they don’t fall foul to non-payment such as completing full background checks on all customers before extending credit, diversifying their customer base and ensuring strict payment protocols are enforced.
Furthermore, business owners are often unaware of the broad range of funding options available to them as they wait for debtors to settle outstanding amounts – in many cases, alternative funding solutions are far more suited to their needs than traditional lending options.”
Bibby Financial Services Ireland is a leading provider of financial support and funding solutions to Irish SME’s, helping businesses to thrive and grow in domestic and international markets by providing bespoke financial assistance and a wide range of specialist and working capital funding options.
A member of the Asset Based Finance Association, Bibby Financial Services Ireland’s funding portfolio includes invoice discounting, factoring, export finance, foreign exchange services and specialist funding for a range of sectors.
Bibby Financial Services Ireland is part of Bibby Financial Services Group, an independent financial services partner to over 10,000 businesses across 13 countries. The Irish operation was established in 2006 and has an expert team of 30 employees based in Sandyford, Dublin.
For more information about Bibby Financial Services Ireland, please visit:
The Bibby Financial Services Global Business Monitor 2017 is available here: www.bibbyfinancialservices.ie/global-business-monitor-ireland
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