Wednesday, June 7, 2023

73% of companies must accept collection periods that are longer than desired

According to a study by Crédito y Caución and Iberinform, 73% of companies have to accept payment terms “more than desired” in order to maintain their customer portfolio, which also indicates that 11% of clothing manufacturers are more than 90 days old. Work longer, same price as 2019.

For their part, 51% of companies with terms of less than 60 days tried to boost the law on measures to tackle crime, up two points from 2019 levels.

According to the study, which surveyed nearly 800 managers, the best behavior was recorded in terms of pay conditions in the public sector and the worst among SMEs and large companies. Only 9% of companies had to accept an unwanted extension of payment terms by the administration, a “significantly lower” percentage than in 2008.

On the other hand, the ability of the self-employed to enforce payment terms also reduces by 17%. In the case of SMEs and large companies, this value reaches 42% and 43%, respectively. According to Iberinform, the self-employed and small, medium and large companies report worse figures than in 2022.

59% of companies experience financial problems with their customers, up twelve points from 2022. Issuing wrong invoices (8%) or disputing the quality of goods and services supplied (8%).

In general, the study found that payment terms in 2023 stabilized at values ​​similar to those in 2022 and 2021, when fiscal stimulus and extraordinary injection of liquidity into the producer fabric returned credit sales terms in B2B to the east. -Covid-19 level.

In the statement Crédito Caución and Iberinform have pointed out that the pandemic has shown a change in the behavior of the two main business sectors in Spain, in line with the waves of 2020 and 2021. In the case of SMEs, there was a “marked increase” in the imposition of longer payment terms. On the other hand, strategies to protect the financial health of their suppliers appeared in large companies.

Nation World News Desk
Nation World News Desk
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