The 2016 edition of The European Payment Industry White Paper provides an insight into how late and non-payments affect economies and industries across Europe.
In the Swiss Professional, Administrative and Support Services sector, 40 percent see an increased risk from debtors in the next 12 months – a possible early warning as many service businesses tend to be early in an economic cycle.
That is a high number compared to Europe as a whole where 15 percent of those surveyed in the European Payment Report (EPR) said they see an increasing risk while almost three quarters expected their debtors to remain stable over the next 12 months. Most worries are found in the Agriculture, Forestry and Fishing sector where 22 percent said they see an increased risk.
A disquieting trend in the survey is that many businesses are pressured to accept longer payment terms. On average, 46 percent of businesses have been asked to accept longer payment terms than they feel comfortable with and an equal number have also accepted longer payment terms. The Manufacturing sector tops the list with 63 percent of the respondents saying they have been asked to accept longer payment terms.
Consumers are the most diligent payers while the public sector is the worst and in Italy the Professional, Administrative and Support Services sector suffers from an average delay of 63 days on payments from the public sector.
Late payments are not a concern solely for the individual company but also for the overall economy as faster payments could help generate more jobs. In the German construction sector a startling 98 percent of respondents said that faster payments probably or definitely would generate more jobs. In the construction sector as a whole, which is a key business in several European economies, the corresponding number is 45 percent.
The White Paper also concludes that many businesses do not protect themselves against bad payment as well as they could, using instruments such as pre-payment, credit checks or debt collection.
Fill in your contact details and download your own free copy of the EPR Industry White Paper here.