domestic and foreign business partners less positively in early 2009 than in summer 2008,
and receive a negative evaluation of their own payment practices from their international
business partners. Despite a substantial worsening of the European and international
payment landscape over the past six months, notable differences between countries remain.
The “Atradius Payment Practices Barometer”, a twice-yearly survey amongst 1,800 firms in nine
European countries (
- Significant differences in payment terms of countries surveyed
- German companies set the shortest term of payment, 24 days on average, followed
by Swedish companies with 30 days. Companies in
payment with 75 days, followed by
- German companies set the shortest term of payment, 24 days on average, followed
- Southern European countries have worst payment practices
-
practices as “poor” or “fair”.
Countries) rate domestic payment practices as “good”, “very good” or “excellent”.
-
- Domestic payment duration increased in only half of countries compared to summer
2008, but except for Belgium, does not exceed the average of winter 2007/2008- Compared to summer 2008, domestic payment duration is 14 days longer in Spain,
(average of 80 days compared to 66 days in summer 2008) and 6 days shorter in
Italy (average of 78 days compared to 84 days in summer 2008).
- Compared to summer 2008, domestic payment duration is 14 days longer in Spain,
- Domestic payment delays were mostly down compared to Summer 2008, but mostly
up compared to winter 2007/2008- Companies in
delays “very infrequently” or “rather infrequently” and domestic non-payments “very
infrequently”, compared to summer 2008.
- Companies in
- In general, foreign payment practices rated better than domestic payment practices
- Great Britain (70% of companies surveyed) and Sweden (59%) rate foreign
payment practices as “good”, “very good” or “excellent”; France (56%) and Spain
(57%) rate foreign payment practices as “poor” or “fair”.
countries surveyed that rated domestic payment practices higher than foreign
payment practices.
- Great Britain (70% of companies surveyed) and Sweden (59%) rate foreign
- Foreign payment delays down compared to Summer 2008
- Compared to summer 2008, Dutch, French and German companies experienced
foreign payment delays “very infrequently” or “rather infrequently”, whereas British
and Swedish companies experienced foreign non-payments “very infrequently”.
- Compared to summer 2008, Dutch, French and German companies experienced
- Payment defaults up compared to winter 2007/2008
- Both domestic and foreign payment defaults rose in winter 2008/2009 compared to
winter 2007/2008 in all markets surveyed in both periods. This contrasts with a
predominant decline in foreign payment defaults and balanced mix of rising versus
declining domestic payment defaults compared to summer 2008.
- Both domestic and foreign payment defaults rose in winter 2008/2009 compared to
- Nordic countries considered to have best payment practices by international
business partners- The payment practices of Danish and Swedish companies are rated good to
excellent by an average of 70% of their international business partners. Payment
practices of Italian and Spanish companies are rated “poor” or “fair” by respectively
62% and 56% of the international business partners interviewed.
- The payment practices of Danish and Swedish companies are rated good to
- By country, only 56% to 70% of all European companies interviewed take steps to
protect themselves from payment risks:- 70% of British companies take steps to protect from payment risks, followed by 65%
of French and 64% of Spanish companies.
- 70% of British companies take steps to protect from payment risks, followed by 65%
The most notable finding of the survey may be that despite the poor economic conditions and
rising default rates throughout the world, the majority of respondents reported no meaningful
deterioration in payment practices, particularly when comparing winter 2008/2009 to summer 2008.
This result somewhat contrasts respondents’ reports of increasing payment defaults.
Responses that cash flow, sales volume and access to financing are now believed to have the
strongest impact on the ability of customers to pay their invoices however, are expected in view of
current economic conditions.
Isidoro Unda, CEO of Atradius N.V. commented: “Although the global economic downturn has
negatively impacted payment practices worldwide, this impact has varied from country to country. It
is essential for businesses to understand and thoroughly evaluate the payment landscape and
different credit risks in the markets they are doing business, as miscalculation may result in serious
cash flow problems.”
The full “Atradius Payment Practices Barometer” survey which is designed to track companies’
perceptions of payment practice and culture can be downloaded from www.atradius.com
About Atradius:
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 42 countries. Its products and services aim to reduce its customers’ exposure to buyers who cannot pay for the products and services they buy. With total revenues of more than EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.
For further information:
Atradius Corporate Communications
Christine Gerryn
Tel.: +31 20 553 2047
E-mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
www.atradius.com