Atradius Sample
Atradius Sample
Atradius Sample
Survey objectives
SURVEY RESULTS
STATISTICAL APPENDIX
Czech Republic
213
20.4%
Hungary
200
19.2%
Poland
210
20.1%
Slovakia
200
19.2%
Turkey
220
21.1%
Industry
Manufacturing
334
32.0%
177
17.0%
Services
532
51.0%
Micro-enterprises
464
44.5%
Survey scope
500
47.9%
Large enterprises
79
7.6%
77 Selection process:
Internet survey: companies were selected and contacted by
use of an international Internet panel. At the beginning of
the interview, a screening for the appropriate contact and for
quota control was conducted.
Country
Business size
Where a single answer is possible, it may occur that the results are a
percent more or less then a 100% when adding the results up. This is the
consequence of rounding off the results. We have chosen not to adjust the
results so the outcome would fit to a 100%, with the purpose of representing
the individual results as exact as possible.
Eastern Europe
Top
for E
Falling
42.9%
38.4%
Western Europe
44.9%
37.7%
Domestic customers
Foreign customers
SURVEY RESULTS
Over the past two years, the proportion of domestic and foreign B2B sales transacted on credit in Eastern Europe dropped
sharply. This is different to what observed in Western Europe,
where the percentage of domestic and foreign B2B credit-based
sales was slightly higher than two years ago. In particular, B2B
credit sales to foreign customers declined more than domestic
ones (by 13.4 and 10.5 percentage points respectively). Similarly
to what was observed in Western Europe, this would point to a
more conservative approach to using trade credit in foreign B2B
transactions than two years ago, particularly in the current global
business environment which can be risky and often challenging.
Cost c
Ea
Samp
Sourc
STATISTICAL APPENDIX
SURVEY DESIGN
Ave
unp
Easter
Weste
Samp
Sourc
SURVEY DESIGN
42.9%
SURVEY RESULTS
Overall, domestic B2B invoices issued by respondents in Eastern Europe are more likely to be paid late than 38.4%
foreign invoices
are.
Based
on
responses
in
Eastern
Europe,
an
average
of 41.2%
Western Europe
of the total value of domestic B2B invoices remained unpaid af44.9%
ter the due date (average for Western Europe stands at 40.2%).
This percentage peaked in Turkey at 55.2%, dropping
37.7% to 27.3%
in Hungary. Foreign invoices paid late represented 34.2% of the
Domestic
customers
Foreign customers
total value
of B2B credit-based
sales abroad (average for Western Europe is 35.4%). Again, this rate peaked in Turkey at 49.8%,
Sample: companies interviewed (active in domestic and foreign markets)
dropping to 19.4% in Hungary.
Source: Atradius Payment Practices Barometer May 2015
STATISTICAL APPENDIX
16%
Over the past two years, there was a notable increase in the
levels of overdue payments in the countries surveyed in Eastern Europe, averaging around 10 percentage points in respect
to both domestic and foreign trade. At country level, the highest increase in domestic and foreign overdue payment levels
was recorded in Turkey (around 23 percentage points in each
case). Among the other countries surveyed, late payment rates
increased the most in the Czech Republic (by 17.2 percentage
points), and the least in Hungary (2.4 percentage points). The
increase in late payment on foreign invoices was the highest
in Slovakia (13.3 percentage points) and the lowest in Hungary
(1.6percentage points).
Late payment of invoices is reflected in the Days Sales Outstanding (DSO) figure, averaging 59 in Eastern Europe (the average
for Western Europe is 48 days). This is equal to the DSO figure
recorded in 2013. By country, the highest DSO figures were recorded in Poland and Hungary (80 days each). The Czech Republic recorded an average DSO of 50 days, and Turkey of 59 days.
7.2%
6.7%
Western Europe
7.6%
7.0%
Domestic
30 days
Payment delay (avg. days)
20 days
4
Foreign
2014
25 days
Cash
s
Eastern Europe
s
ale
2014
24 days
At country level, it takes customers in Turkey the longest to settle domestic past due invoices (on average 34 days after the due
date). In the remaining countries surveyed, domestic trade debt
was settled, on average, not later than 21 days after the due date.
In Hungary, domestic past due invoices are paid the swiftest (on
average 10 days after the due date). In terms of foreign overdue
invoices, once more respondents in Turkey have to wait the longest to collect past due payments (an average of 33 days from the
due date), and respondents in Hungary the shortest (around six
days). In the remaining countries surveyed, foreign overdue invoices are paid, on average, not later than 18 days past due.
Except for Turkey, where the average domestic payment delay
levelled off over the past two years, most of the countries surveyed in Eastern Europe saw a decrease in payment timing of
domestic past due trade debts over this time frame. This finding
contrasts with what was observed in Western Europe, where the
average domestic payment delay increase in most of the countries surveyed. In Eastern Europe, the average decrease ranges
from three days in the Czech Republic to nine days in Poland. The
biggest decrease was recorded in Hungary, where domestic trade
debts are settled in half the time they were two years ago.
Credit sales
40.7%
2014
47.2%
HKKJKKKL
Foreign payment delays appeared to have decreased more markedly over the same time frame. Once more, respondents in Hungary received payment on past due invoices around two weeks
earlier than two years ago. Respondents in the remaining countries surveyed received their payments, on average, within twelve
days after the due date. Turkish respondents, who now have to
wait an average of three days longer than two years ago for past
due foreign invoices to be settled, are an exception to this.
SURVEY DESIGN
SURVEY RESULTS
STATISTICAL APPENDIX
Overdue
38.0%
Paid on time
Uncollectable
1.1%
!
2014
31.9%
2014
1.2%
SURVEY DESIGN
SURVEY RESULTS
Uncollectable accounts
An average of 1.1% of the B2B receivables of respondents in Eastern Europe was reported as uncollectable (average for Western
Europe is 1.2%). At regional level, uncollectable domestic receivables in Eastern Europe come mostly from the construction and
services sectors. By country, the proportion of domestic uncollectable receivables is above the regional average in Turkey (2.0%) and
the Czech Republic (1.4%).
STATISTICAL APPENDIX
Foreign B2B write-offs are once more mainly related to the construction sector, along with the business services sector. Of the
countries surveyed in Eastern Europe, collection of receivables on
exports proved to be more successful than of domestic receivables. This is in line with what was observed in Western Europe, and
may very well be related to the relatively higher proportion of sales
made on credit domestically than abroad. It may also point to a
natural tendency of paying closer attention to foreign than to domestic receivables.
For 56.6% of respondents in Eastern Europe, B2B receivables were
uncollectable mainly due to the customer being bankrupt or out
of business (66.4% of respondents in Western Europe). This was
most often reported by respondents in Slovakia (68.4%) and in
Hungary (65.0%). For 38.4% of the Eastern European respondents
(25.1% in Western Europe), write-offs were chiefly due to the failure of collection attempts. This was most often the case for respondents in Turkey (53.8%).
Over the past two years, the percentage of uncollectable receivables of Eastern European respondants decreased around 1 percentage point. The oscillations of the rate are stronger in relation
to domestic than to foreign uncollectable receivables. For more insights into B2B receivables collections practices in Eastern Europe,
please see the Global Collections Review by Atradius Collections
(free download after registration), available from 19 May 2015 on
www.atradiuscollections.com.
22%
19%
Cost containment
16%
24%
Eastern Europe
Western Europe
Eastern Europe: proportion of domestic and foreign past due B2B invoices
SURVEY DESIGN
Statistical appendix
10
11
12
13
SURVEY RESULTS
14
STATISTICAL APPENDIX
Eastern Europe: proportion of total B2B sales made on credit (domestic and foreign)
SURVEY DESIGN
Period:
2015 vs. 2014
0% - 20%
20% - 40%
40% - 60%
Eastern Europe
SURVEY RESULTS
60% - 80%
40.7
Poland
28.2
Czech Republic
STATISTICAL APPENDIX
44.8
Slovakia
19.4
Hungary
72.0
Turkey
40.4
Wholesale / Retail /
Distribution
Services
Micro-enterprises
SMEs
Large enterprises
Domestic
45.2%
54.8%
37.6%
38.2%
46.4%
49.0%
Foreign
40.3%
44.7%
33.4%
33.4%
39.9%
42.5%
Eastern Europe
Business size
Eastern Europe
77.2
16.0
4.8 2.0
30
Western Europe
75.0
17.1
5.4 2.5
33
13.0
86.0
Hungary
83.3
Poland
13.3
83.5
Slovakia
11.5
81.2
Czech Republic
12.7
53.6
Turkey
1 - 30 days
28.6
31 - 60 days
11.4
61 - 90 days
1.0
25
2.4 1.0
26
4.0 1.0
29
4.7 1.4
31
6.4
42
Over 90 days
Source: Atradius Payment Practices Barometer May 2015
SURVEY RESULTS
average days
STATISTICAL APPENDIX
percentage
SURVEY DESIGN
Business size
Manufacturing
Wholesale / Retail /
Distribution
Services
Micro-enterprises
SMEs
Large enterprises
Domestic
32
33
28
26
34
31
Foreign
35
31
28
25
34
35
Eastern Europe: proportion of domestic and foreign past due B2B invoices
SURVEY DESIGN
Uncollectable
(% of total value of
receivables)
percentage
41.2
Eastern Europe
1.1%
34.2
40.2
37.7
Western Europe
1.2%
SURVEY RESULTS
55.2
Turkey
49.8
47.7
Slovakia
0.4%
37.0
42.1
Czech Republic
1.4%
37.3
35.5
Poland
1.1%
29.3
STATISTICAL APPENDIX
27.3
Hungary
1.0%
19.4
Domestic
2.0%
Foreign
Source: Atradius Payment Practices Barometer May 2015
Wholesale / Retail /
Distribution
Services
Micro-enterprises
SMEs
Large enterprises
Domestic overdue
37.8%
43.1%
42.6%
38.7%
42.7%
44.2%
Foreign overdue
30.4%
35.6%
37.7%
37.1%
32.8%
37.3%
1.0%
1.5%
1.1%
0.9%
1.2%
1.7%
10
Business size
Incorrect
information
on invoice
Insufficient
availability of
funds
Eastern Europe
59.98%
34.75%
24.22%
13.34%
11.43%
8.97%
8.07%
6.05%
5.49%
5.38%
Western Europe
51.4%
34.1%
18.5%
16.3%
11.8%
15.3%
12.2%
8.7%
5.8%
11.0%
Poland
57.61%
36.96%
26.09%
15.22%
12.50%
12.50%
10.33%
10.33%
3.26%
4.89%
Czech Republic
39.20%
57.79%
42.21%
13.07%
8.54%
15.08%
9.55%
5.53%
7.54%
4.52%
Hungary
78.57%
13.64%
15.58%
9.09%
3.25%
0.65%
2.60%
0.65%
3.25%
4.55%
Slovakia
73.46%
26.54%
17.28%
6.79%
4.32%
3.70%
4.94%
1.23%
11.73%
5.56%
Turkey
57.51%
32.64%
16.58%
20.73%
25.91%
10.36%
11.40%
10.88%
2.07%
7.25%
Manufacturing
58.52%
36.30%
25.56%
12.22%
11.85%
12.59%
7.78%
6.30%
5.93%
3.70%
Wholesale
/ Retail /
Distribution
64.10%
32.05%
23.72%
11.54%
8.33%
7.69%
4.49%
3.21%
7.05%
5.13%
Services
59.44%
34.76%
23.61%
14.59%
12.23%
7.30%
9.44%
6.87%
4.72%
6.44%
Microenterprises
61.56%
36.62%
22.08%
11.95%
9.87%
6.49%
5.45%
4.16%
8.31%
4.42%
SMEs
60.00%
34.09%
25.23%
14.77%
11.82%
9.77%
9.55%
6.36%
3.18%
6.14%
Large enterprises
50.75%
28.36%
29.85%
11.94%
17.91%
17.91%
13.43%
14.93%
4.48%
5.97%
Other
Invoice was
sent to wrong
person
Industry
SURVEY RESULTS
Dispute
over quality
of goods
delivered
or service
provided
Buyer using
outstanding
debts /
invoices as
a form of
financing
STATISTICAL APPENDIX
Formal
insolvency
of the buyer
(example:
Inefficiencies
liquidation, Complexity of
of the
receivership, the payment
banking
bankruptcy)
procedure
system
Goods
delivered
or services
provided
do not
correspond
to what was
agreed in the
contract
SURVEY DESIGN
Eastern Europe: main reasons for payment delays by domestic B2B customers
Business size
11
Eastern Europe: main reasons for payment delays by foreign B2B customers
SURVEY DESIGN
Goods
delivered
or services
provided
do not
correspond
Invoice was
to what was
sent to wrong agreed in the
person
contract
SURVEY RESULTS
STATISTICAL APPENDIX
Inefficiencies
of the
banking
system
Dispute
over quality
of goods
delivered
or service
provided
Formal
insolvency
of the buyer
(example:
liquidation,
receivership,
bankruptcy)
Incorrect
information
on invoice
24.06%
20.87%
17.68%
15.36%
14.78%
12.46%
8.41%
3.19%
29.4%
28.1%
22.2%
16.5%
17.4%
15.1%
13.8%
13.5%
3.1%
40.48%
29.76%
23.81%
19.05%
20.24%
20.24%
21.43%
16.67%
8.33%
0.00%
Czech Republic
23.61%
34.72%
34.72%
22.22%
33.33%
19.44%
8.33%
16.67%
4.17%
1.39%
Hungary
64.71%
10.29%
16.18%
2.94%
2.94%
4.41%
5.88%
7.35%
1.47%
1.47%
Slovakia
50.00%
35.71%
3.57%
14.29%
10.71%
7.14%
14.29%
3.57%
3.57%
25.00%
Turkey
36.56%
22.58%
27.96%
36.56%
16.13%
18.28%
20.43%
11.83%
18.28%
2.15%
Manufacturing
41.13%
30.50%
19.86%
19.15%
14.18%
13.48%
14.18%
9.22%
7.09%
3.55%
Wholesale
/ Retail /
Distribution
41.67%
22.22%
20.83%
20.83%
19.44%
16.67%
11.11%
5.56%
8.33%
4.17%
Services
41.67%
21.97%
30.30%
22.73%
20.45%
16.67%
17.42%
19.70%
9.85%
2.27%
Microenterprises
39.71%
20.59%
23.53%
17.65%
11.76%
8.82%
5.88%
8.82%
7.35%
5.88%
SMEs
40.68%
26.69%
25.00%
20.76%
19.92%
16.95%
15.25%
13.56%
8.05%
2.12%
Large enterprises
48.78%
26.83%
19.51%
26.83%
14.63%
17.07%
26.83%
12.20%
12.20%
4.88%
Insufficient
availability of
funds
Buyer using
outstanding
debts /
invoices as
a form of
financing
Complexity of
the payment
procedure
Eastern Europe
41.45%
25.51%
Western Europe
37.1%
Poland
Other
Industry
Business size
12
27.9
49.7
Eastern Europe
52.0
Western Europe
28.0
68.4
Slovakia
29.7
40.4
Turkey
10.3
53.1
1 - 30 days
20.4
31 - 60 days
11.0
48
6.6 5.3
34
15.9
35.9
Poland
59
7.7
33.8
33.3
Hungary
12.5
9.0
19.7
52.8
Czech Republic
9.9
61 - 90 days
5.1
9.9
9.9
20.5
21.4
50
59
SURVEY RESULTS
average days
80
80
Over 90 days
Source: Atradius Payment Practices Barometer May 2015
STATISTICAL APPENDIX
percentage
SURVEY DESIGN
Business size
Manufacturing
Wholesale / Retail /
Distribution
Services
Micro-enterprises
SMEs
Large enterprises
65
56
56
64
57
53
13
percentage
22
Eastern Europe
20
Western Europe
16
18
SURVEY RESULTS
15
16
Slovakia
STATISTICAL APPENDIX
Maintaining
adequate cash flow
10
20
13
Hungary
17
20
20
Turkey
13
Cost
containment
19
8
5
10
16
11
8
9
13
P oor view of
customers
portfolio risk
8
6
7
8
14
19
B ank lending
restrictions
18
10
16
ollection of
C
outstanding
invoices
9
11
11
25
Poland
12
24
36
Czech Republic
Falling demand
for products and
services
16
9
E fficiency in
receivables
management
7
11
10
10
8
9
Increase in
disputed
invoices
Wholesale / Retail /
Distribution
Services
Micro-enterprises
SMEs
Large enterprises
19.5%
22.0%
23.5%
23.5%
20.2%
24.1%
13.8%
17.0%
16.5%
14.9%
17.2%
11.4%
Cost containment
21.0%
13.6%
13.7%
16.8%
15.8%
12.7%
10.5%
14.1%
12.8%
12.1%
11.4%
19.0%
9.6%
9.6%
9.4%
9.7%
9.4%
8.9%
10.8%
9.0%
8.5%
9.1%
9.0%
12.7%
9.3%
7.3%
8.3%
6.7%
10.4%
6.3%
5.7%
7.3%
7.3%
7.3%
6.6%
5.1%
14
Business size
Disclaimer
This report is provided for information purposes only and is not intended as a recommendation as to particular
transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure
that the information contained in this report has been obtained from reliable sources, Atradius is not responsible for
any errors or omissions, or for the results obtained from the use of this information. All information in this report is
provided as is, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and
without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations,
or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken
in reliance on the information in this report or for any consequential, special or similar damages, even if advised of
the possibility of such damages.
15
Atradius N.V.
David Ricardostraat 1 1066 JS Amsterdam
Postbus 8982 1006 JD Amsterdam
The Netherlands
Phone: +31 20 553 9111
info@atradius.com
www.atradius.com