By postponing investments, domestic companies protect themselves against late payments

Agriculture and the food industry are in a bad situation

According to a survey by the credit insurance company Atradius, 63 percent of Hungarian companies did not experience any change in their customers’ payment habits. At the same time, 14 percent of the companies reported that it is more difficult to get the consideration for their invoices than last year. 42 percent of the invoices were paid on time by the customers in the last 12 months. This year, the rate of late payments is 51 percent, while defaulted loans are 7 percent. Among the sectors, it was mainly in agriculture and the food industry that customers paid late. The companies involved explained this with supply chain obstacles. As a result, 28 percent of companies postponed their planned investments, e.g. the modernization of buildings or the expansion of plants. 24 percent of the companies, mainly in the transport and forwarding industries, paid their utility bills late, as well as their workers’ wages. – While the high tax burden and unpredictability have a negative impact on corporate and residential expectations, the development of export sales and the significant reduction in energy prices have a positive effect. The rate of development of the domestic economy can be greatly helped if loan interest rates decrease and foreign, especially European Union, funds arrive, said Balázs Vanek, Atradius’ country director.