Atradius Collections presents Payment Practices Barometer Western Europe 2017
The use of credit terms for B2B sales by respondents in Western Europe decreased slightly compared to 2016, stressing the challenging business environment.
With a minor 2% decline forecast, the 2017 insolvency outlook for advanced markets is stable. However, tighter access to financing and political uncertainty are putting pressure on businesses. This may be the reason why most respondents in Western Europe seem more inclined to sell on cash terms – despite the potential for losing sales to competitors offering credit terms.
The use of credit terms for B2B sales by respondents in Western Europe decreased slightly compared to 2016, stressing the challenging business environment and increasing concerns of suppliers about being paid. All Western European countries surveyed seem to be more inclined to sell on credit terms to domestic B2B customers than to foreign B2B customers.
The percentage of overdue B2B invoices in Western Europe(41%) increased slightly compared to 2016 (39%), pointing to increased volatility.
Compared to 2016, average payment terms granted by respondents in Western Europe remained almost stable. However, payment delays from domestic B2B customers increased, indicating a slowdown in the speed of payment.
B2B customers of respondents in Western Europe delayed their payments most often because of liquidity issues but also for reasons unrelated to creditworthiness.
Around 18% of respondents in Western Europe plan to do more to protect their businesses from the impact of Brexit, the slowdown in Asia and US protectionism.
The proportion of B2B receivables reported by Western European respondents as uncollectable is 1.3%, under the level reported in 2016 (1.4%).
Read the whole report on the following link.