Four in 10 companies are being hampered by the late payment of invoices, despite the introduction of legislation to ensure timely payments, according to a new survey by Bank of Ireland Business Banking.

The bank's survey also shows that double payment of invoices is adding to businesses' cash flow problems. On average, payment terms of 0-30 days were exceeded by 18 days, while payment terms of 31-60 days were exceeded by six days.

Two-thirds of respondents to the survey said the delay was intentional, while 39 per cent indicated that it was due to their debtors experiencing financial difficulties.

One quarter blamed disputes regarding the goods and services delivered, while almost a third said they had not followed up invoice payments efficiently.

Legislation introduced two years ago was designed to ensure timely payments. Two-thirds of Bank of Ireland business customers felt that enforcement of this legislation would help resolve the late payment issues.

Almost half said that improving their own credit management systems would help alleviate the problem. Nearly a quarter of the businesses surveyed admitted to paying suppliers or service providers twice.