Home Publications Archive Payment Practices Barometer

Payment Practices Barometer

Survey of Payment Behaviour of European Companies

Payment Practices barometer 

Learn about European Payment Practices:  how long does it take our business partners to pay?  Understanding the payment behaviour of potential customers in foreign countries is vital.   Assumptions or poor assessments can lead to major problems in financial planning due to the significant impact posed to both large and small companies by poor payment practices.  For the Atradius Payment Practices Barometer, 1,200 companies from six European countries are asked to evaluate the payment practices of their domestic and international business partners and their company's credit management in general.  Take advantage of this key business information and understand what is involved with trading in Europe

Payment Practices Barometer

Payment behaviour of European companies Summer 2009

Payment Practices Barometer - trading with emerging markets July 2011

Doing business with emerging markets in 2011

EU businesses believe their peers based in emerging markets are willing to take more risks when entering new markets and introducing new products.

 

 Download the  results here

 

 

Payment behaviour of European companies Summer 2009

Payment Practices Barometer - Spring 2011

Most frequent reasons for offering credit to B2B customers are to improve long term business relationships and to promote sales growth.

 Download the  results here

 

Payment Practices Barometer

Spring 2011

Payment Practices Barometer


Summary conclusion

Ireland has been hit harder than most other nations around the globe as the economic downturn has taken hold. As we go to press, insolvencies continue to pose a very real threat to the domestic economy in Ireland and it is unsurprising therefore to note some of the results in the study, which reflect caution. A significant proportion of the business surveyed had experienced late payment, demands for extension to credit or other challenges to payment terms. However it isn’t all bad. The behaviours of foreign customers reflects slightly better payment practices towards their Irish suppliers. This means that export, historically a mainstay of the Irish economy, is likely to be key to full economic recovery.



Source: Payment practices barometer - Spring 2011

 


 ____________________
Date: May 2011

 

Payment Practices Barometer

Spring 2011

Payment Practices Barometer


Summary conclusion

Ireland has been hit harder than most other nations around the globe as the economic downturn has taken hold. As we go to press, insolvencies continue to pose a very real threat to the domestic economy in Ireland and it is unsurprising therefore to note some of the results in the study, which reflect caution. A significant proportion of the business surveyed had experienced late payment, demands for extension to credit or other challenges to payment terms. However it isn’t all bad. The behaviours of foreign customers reflects slightly better payment practices towards their Irish suppliers. This means that export, historically a mainstay of the Irish economy, is likely to be key to full economic recovery.



Source: Payment practices barometer - Spring 2011

 


 ____________________
Date: May 2011

 

 

Payment behaviour of European companies Summer 2009

Payment Practices Barometer
Mandatory payment terms EU
If an impact is anticipated will there be an increase or improvement in business practices?

Find out more

 

Mandatory payment terms in the EU
Payment Practices Barometer

Payment Practices Barometer

Survey conclusion

The new EU legislation still needs to be approved by the full Parliament. If implemented, it is not expected to have a big impact on most companies because the proposed 30 or 60 day payment terms already fall within the terms they customarily use. Where it might help is in the minority of situations where extended payment terms and payment delays occur. This also means that we can expect continued need for outsourced credit management tools like credit insurance and collections as businesses realise that mandatory payment terms don’t mean guaranteed payment of invoices.

Despite this, if an impact is anticipated it is expected to be an increase or improvement in business practices. Those areas with the greatest expectations of improvement include in cash flow, in the ease of collecting outstanding invoices and in the efficiency of receivables management. These are all very realistic outcomes if payment terms become shorter or if buyers have fewer opportunities to hide behind local customs that are less familiar to their foreign suppliers. Essentially the hope is that standard mandatory payment terms will result in more buyers becoming better payers.

In a number of cases, the responses of businesses outside of the EU had greater expectations of an impact on their businesses. This was particularly the case of respondents from China. Chinese businesses sell a lot of products to buyers in the EU.

Adaption of the EU model when selling to EU buyers could simplify their receivables management practices and improve their efficiency and effectiveness when doing business with these customers. Realistically, this could be a common benefit within the EU as well. If Poland and Italy are now working on a common set of payment terms with the same rules and regulations in respect to the treatment and collection of late payments, it stands to reason that doing business internationally will be simplified.

Overall, while the general impression is that standard maximum payment terms in the EU will have a limited impact on business. The majority of those who expect it to influence their business are anticipating it to be a positive influence. Essentially mandatory payment terms should not be a major hardship.

Download full Payment Practices Barometer Great Britain report
 

 

Mandatory payment terms in the EU
Payment Practices Barometer

Payment Practices Barometer

Survey conclusion

The new EU legislation still needs to be approved by the full Parliament. If implemented, it is not expected to have a big impact on most companies because the proposed 30 or 60 day payment terms already fall within the terms they customarily use. Where it might help is in the minority of situations where extended payment terms and payment delays occur. This also means that we can expect continued need for outsourced credit management tools like credit insurance and collections as businesses realise that mandatory payment terms don’t mean guaranteed payment of invoices.

Despite this, if an impact is anticipated it is expected to be an increase or improvement in business practices. Those areas with the greatest expectations of improvement include in cash flow, in the ease of collecting outstanding invoices and in the efficiency of receivables management. These are all very realistic outcomes if payment terms become shorter or if buyers have fewer opportunities to hide behind local customs that are less familiar to their foreign suppliers. Essentially the hope is that standard mandatory payment terms will result in more buyers becoming better payers.

In a number of cases, the responses of businesses outside of the EU had greater expectations of an impact on their businesses. This was particularly the case of respondents from China. Chinese businesses sell a lot of products to buyers in the EU.

Adaption of the EU model when selling to EU buyers could simplify their receivables management practices and improve their efficiency and effectiveness when doing business with these customers. Realistically, this could be a common benefit within the EU as well. If Poland and Italy are now working on a common set of payment terms with the same rules and regulations in respect to the treatment and collection of late payments, it stands to reason that doing business internationally will be simplified.

Overall, while the general impression is that standard maximum payment terms in the EU will have a limited impact on business. The majority of those who expect it to influence their business are anticipating it to be a positive influence. Essentially mandatory payment terms should not be a major hardship.

Download full Payment Practices Barometer Great Britain report
 

 

 

Payment behaviour of European companies Summer 2009

Payment Practices Barometer - Summer 2010
 
Atradius conducts regular surveys of corporate payment behaviour across a range of countries. In the second survey of 2010 and the eighth in the series, approximately 4,000 companies were interviewed for their views of their business partners’ payment behaviour.

Find out more

 

Payment behaviour of European companies Summer 2009

Payment Practices Barometer - Survey results summer 2009
 
Payment Behaviour of European Companies
Survey Results Summer 2009

 

Payment behaviour of European companies winter 2008/2009
Payment Practices Barometer - Survey results winter 2008 / 2009

Payment Behaviour of European Companies
Survey Results Winter 2008 / 2009

altDownload Survey results winter 2008/ 2009


 

Payment behaviour of central and eastern European companies
Payment Practices Barometer - Survey results May 2008

Special: Payment Behaviour of Central and Eastern European Companies
Survey Results May 2008

altDownload survey results for May 2008

 

Feedback and Requests

We welcome any feedback, corrections and suggestions you have on how we could improve our publications. Please e-mail  these to Christian Bürger