Unpaid invoices shouldn’t be a death sentence for SMEs- Boland

Creation of a new court for businesses could fast track debt recovery for Small Medium-sized Enterprises (SMEs), a Fine Gael Election Candidate has said.

Grace Boland, Fine Gael General Election Candidate for Dublin Fingal West and practising solicitor, believes this is a move that could be transformative for SMEs that are struggling with unpaid invoices and late payments.

“As a solicitor who works closely with small businesses, I see the same issue cropping up again and again—unpaid invoices and late payments that are crippling SMEs.

“Even a few thousand euros can mean the difference between staying afloat or going under for many of these businesses. Yet, the current legal system is just not built to help them recover these smaller amounts quickly or affordably.

“Right now, the Irish Small Claims Court doesn’t even allow for debt claims, and it’s capped at just €2,000. That’s nowhere near enough to address the needs of businesses that are owed much more.

“There’s also the European Small Claims Court, but it’s only applicable if one of the parties is based in another EU country, and even then, the limit is €5,000.

“Many other EU countries have far more streamlined systems, offering quicker, more affordable access to the courts, and that’s something Ireland is sorely lacking.

“My proposal is for a dedicated Small Claims Business Court that would cater to all businesses but would have a particular benefit for SMEs. It would have a streamlined procedure, dispense with the requirement for companies to have legal representation and allow claims for unpaid invoices, late payment fees, and interest for amounts up to €50,000.

“Small businesses are key to our economy. It’s time we start supporting them by giving them the tools they need to collect what they’re owed.

“This isn’t just about justice—it’s about making sure our SMEs can keep contributing to the economy, creating jobs, and driving innovation.”

Kathryn Lynch, Chair of Fine Gael Small Business & Enterprise Council, said: “We hear from small businesses up and down the country about the prohibitive expense of chasing money that is owed to them. It can make or break a company.

“I have experienced it first hand in my own business too and a small claims mechanism that doesn’t involve the traditional court process would be a fantastic help.”