Post date: Oct 01, 2010 12:3:5 PM
CARDIFF, Wales, October 1, 2010/PRNewswire/ -- Businesses across the world continue to struggle to meet payment terms, according to the latest Payment Practices Barometer by leading trade credit insurer Atradius.
The twice yearly study which reviews payment behaviours of almost 3,971 businesses around the world, found that even countries not directly hit by recession, such as China and Poland, were suffering the impact of trading with business in other less robust economies. Late payments or worse, payment defaults, continue to affect the financial health of otherwise stable businesses. Respondents cited the need to take specific measures to protect and correct their own cash flow and in some cases to postpone payments to their own suppliers.
Overall, more than 50% of the respondents of the survey received payments from customers late without prior notice and around 50% received requests for an extension of the payment term. In Great Britain, key findings were:
- 59% of respondents reported that customers had requested extended payment terms over the past six months - 57% of respondents reported delayed payment from customers without prior agreement - 46% were asked for an increase in credit - 42% of the invoices of British respondents were paid late
Pete Davies, Country Manager of Atradius UK said:
"As an economy, the toughest challenge for UK plc is that of the unexpected. Unexpected payment delays can have a devastating knock-on effect up the supply chain, which, in a worst case scenario can force bankruptcy. We urge businesses not to be complacent and to protect themselves against the unforeseen. It is critical to our economic recovery that businesses protect their cash flow."
The full report can be found at http://www.atradius.com
The GB report can be found at http://www.atradius.co.uk
About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily. Its products and services aim to reduce its customers' exposure to buyers who fail to pay for the products and services they buy. With total income of more than EUR 1.7 billion and approximately 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit.
Source: Atradius N.V.