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An average of 76% of SMEs in both Northern Ireland and the Republic say they have moved away from cheques in the past five years in favour of electronic payment methods.

This is according to results from the most recent Close Brothers Business Barometer. The quarterly survey gauges the opinion of SME owners and managers from a variety of sectors across the UK and Ireland.

Payment methods in order of popularity - NI:

  • BACS/electronic transfer 46%
  • Credit or debit card 24%
  • Direct debits 12%
  • Cheques 10%
  • Cash 6%

Payment methods in order of popularity - RoI:

  • Direct debits 31%
  • BACS/electronic transfer 26%
  • Cheques 19%
  • Credit or debit card 14%
  • Cash 7%

Newly appointed MD of Close Brothers Commercial Finance, Ciaran McAreavey, said: “Our research echoes both the Payments Council’s Quarterly Statistical report for March 2015 and stats from the Irish Payment Services Organisation (IPSO). They showed continued growth in electronic credit volumes in 2013 and the 8th successive year in which cheque numbers fell. This seems a welcome contrast to the uproar a few years ago when plans to scrap cheques by 2018 were in motion.

“The use of technology is ever increasing and of those that prefer to make electronic payments, 61% said it’s because of its ease of use. 18% said it gives them better control of their cash flow and 22% say it guarantees payment on time.”

The survey further found that 68% of respondents will use online banking even more between now and 2020.

Mr McAreavey continued: “For me, the most important point highlighted above is cash flow. It might sound like an obvious statement but it’s the lifeblood of any business and its careful management must not be underestimated.

“If company owners offer a variety of ways for their customers to pay, including electronic payments, it can mitigate reasons for late or non-payment and help avoid bad debt.”

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