B2B payment practices trends, Denmark 2024

Bad debts are surging to stand at 8% of all B2B sales, up from 3%. This highlights the complexities companies in Denmark currently face in managing customer credit risk. B2B payment practices trends, Denmark 2024 Bad debts surge highlights the complexities companies in Denmark currently face in managing customer credit risk. Key takeaways from the report for Denmark   The 2024 Payment Practices Barometer survey for Denmark was conducted between the end of Q1 and the beginning of Q2 2024. The findings should therefore be viewed with this in mind. Trading on credit declines amid surge in bad debts Late payments are trending downwards across all sectors in Denmark, now affecting 49% of all B2B credit sales, down from 54% the previous year. In contrast, bad debts are surging to stand at 8% of all B2B sales, up from 3%. This highlights the complexities companies currently face in managing customer credit risk.   A downward trend in B2B sales being transacted on credit is evident in our survey of companies in Denmark. These now average 43% of all B2B sales, with the rest on a cash basis to minimise credit risk. Most caution is being shown in the electronics/ICT sector, reflecting the rapidly evolving nature of the industry. Rising fears about insolvency risk amid concern over domestic economy The state of the domestic economy is the primary concern in both the short-term and long-term for companies in Denmark, with consumer spending being limited by high levels of household debt. There are signs of recovery, but challenges remain such as a lag in fixed investment, supply chain disruptions and weak demand.   A range of short-term anxieties are expressed by businesses in our survey. These include the impact of geopolitical risks, inefficient or outdated processes, insufficient production capacity and intense competition. This is especially felt in the Danish chemicals sector, which is a major exporter. The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.  Interested in finding out more?  For a complete overview of the 2024 survey results for Denmark and Western Europe, please download the full reports available in the related documents section below.  All content on this page is subject to our Disclaimer, available here