Late payment by the private sector continues to be a problem for 98 per cent of small companies, according to a survey carried out by the Small Firms Association (SFA).

Mr Pat Delaney, SFA director, said the average payment period of 59 days compared unfavourably with Britain, at 49 days, and Germany, at 38 days, putting Irish firms at a disadvantage. He said the introduction of the Prompt Payment of Accounts Act last January had alleviated the problem of late payments from the public sector and a small claims court for companies would help in the private sector.

The survey found that only 8 per cent of private companies pay within 30 days and 90 per cent of small firms favour legislation for the private sector. A lack of coherent credit management policies and defensive attitudes were identified as "significant weaknesses" by the SFA.