Ireland's prompt-payment legislation has failed according to Isme, and stronger legislation needs to be introduced. The Isme Credit Watch Survey has found that Irish SMEs are "still waiting 62 days to be paid".

The lobby group's chief executive Mark Fielding said: "The bald fact staring them in the face is average credit period prior to legislation: 12 years ago, it was 52 days; today it has deteriorated to 62 days. With 83 per cent of SMEs favouring a mandatory 30-day payment, it is now up to the Government to amend the legislation."

Mr Fielding said that after surveying 1,044 firms, Isme had found a quarter were experiencing delays of three months or more in getting paid, with five per cent having to wait more than 120 days.