Credit insurance company: the rate of late payments increased by twenty percent in trade between Hungarian companies

By: Trademagazin Date: 2023. 06. 23. 12:12

This increase means that 40 percent of intercompany (B2B) invoices were paid after the deadline by Hungarian customers in the past 12 months. Among other things, this is stated in Atradius’s analysis of credit insurance payment habits. 70 percent of the Hungarian companies interviewed in the survey reported that it is more difficult for them to collect their claims than last year. In Eastern Europe, sales on credit decreased the most in Hungary, by 10 percent. The survey was conducted by interviewing 210 companies.

Selling on credit is still an important tool in trade between companies, 46 percent of B2B transactions are done on credit. However, Atradius respondents reported that suppliers are making stricter decisions when applying for credit than last year. – 45 percent of companies said they received less credit from their suppliers than last year because suppliers are trying to avoid risky deals. This is also confirmed by the slightly shorter deadlines for paying invoices. Last year, the average deadline was 43 days, and this year it is only 41 days, while this year the companies received the value of their invoices after an average of 69 days – said Balázs Vanek, Atradius’ country director.

Barometer of Payment Habits c. according to a study, in the past year, 55 percent of Hungarian companies paid their suppliers on time, while previously this rate was still 62 percent. The respondents in the construction industry justified the frequent late payments in the sector with temporary liquidity problems. In the machinery industry, bankruptcy of customers caused problematic cases.