Almost half of firms deferring payments to manage cash flow - Central Bank

21 of July, 2020
Filed under: Latest News

Around four in ten firms surveyed by the Central Bank say they have unpaid invoices.

The outstanding amounts equate to about 20% of 2019 revenue, according to the regulator, which may result in increased pressure to cash flow.

As many as 42% of firms said they had changed or deferred payments to manage cash flow.

The figure increased to 91% in the accommodation and food sector.

The survey results come as the government prepares to unveil its July stimulus, which, it’s understood, will contain a range of measures targetted at small and medium sized enterprises in the form of low cost loans and grants.

The Central Bank of Ireland’s SME Market Report also suggests that around a quarter of firms had ceased trading temporarily or permanently in April, but this declined to 11% by the end of May, reflecting the gradual reopening of the economy.

The main banks reported that SME credit demand increased in the second three months of the year and is expected to increase slightly in the third quarter.

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