Financial experts warn of hard times coming up to the crisis

By: Trademagazin Date: 2022. 08. 25. 10:25

Due to the economic crisis, more and more companies fear that their operations will be jeopardized due to late payments. In Europe, most companies would fight against outstanding debts with legal enforcement, but such procedures are expensive, lengthy and their results are uncertain.

Several companies cannot pay before the deadline

In the countries of the European Union, 60 percent of company managers are worried that their receivables due to late payments will increase this year, according to the European payment report (ECPR) of the receivables management company Intrum. However, many people are at a loss when it comes to improving collections or dealing with late payments. More than a quarter (26 percent) of business leaders surveyed by Intrum feel that late payment threatens the company’s survival, while 53 percent say they don’t have enough people and resources to improve the management of the problem.

According to the Intrum survey, most Hungarian companies try to improve the efficiency of debt management in-house: 29 percent of the respondents, for example, send automatic payment reminders to non-paying customers. In addition, more than half of the companies (57 percent) are specifically preparing to take more legal steps this year, i.e. to initiate executions against late or non-paying customers.

Intrum