Amid the ongoing global economic downturn, a widespread concern over a deterioration of the outlook for B2B payment behaviour in the coming months is a major worry for companies in Eastern Europe.
There is anxiety about the outlook for 2023 that a combination of factors like high inflation, the energy crisis and geopolitical tensions could significantly affect also the outlook for their domestic economies. This is one of a range of survey findings of the latest edition of the Atradius Payment Practices Barometer survey of Eastern Europe.
The survey, which based on feedback from nearly 1,300 domestic and export suppliers across Bulgaria, the Czech Republic, Hungary, Poland, Slovakia and Turkey, reveals that around half of the respondents in the region expect their Days Sales Outstanding (DSO) to deteriorate over the coming 12 months. Liquidity problems among B2B customers was cited as the main factor behind late or non-payment in B2B trade.
This is a widely reported issue across all markets and industries, which comes along with the likelihood of a struggle for cash flow for many businesses in the region as they try to protect their liquidity position against DSO swings. The most worried about this are respondents in the Czech Republic, Slovakia and Turkey.
The Atradius Payment Practices Barometer for Eastern Europe also reports businesses’ approach to credit management amid cautious optimism about prospects for growth in the coming months. This prompted around one third of the companies polled in the survey to say they will be inclined towards the use of credit insurance in the year ahead, allowing them to protect liquidity and profitability, while being more competitive in domestic and foreign markets.
The complete reports highlighting all findings of the December 2022 edition of the Atradius Payment Practices Barometer for Eastern Europe are available here: B2B payment practices trends, Eastern Europe 2022