Romania: cash dominates as businesses shun trade credit

Payment Practices Barometer

  • Romania
  • Chemicals/Pharma,
  • Construction

1st December 2021

Businesses polled in Romania favoured the surety of cash sales this year. However, this put them at a disadvantage in a global market place where credit terms are a competitive tool.


This year's Payment Practices Barometer survey in Romania reveals that most of the businesses surveyed across the country favoured the surety of cash sales than trading on credit with B2B customers. Demands for cash payments from B2B customers helped to drive down last year’s high write-off rate and contain the costs associated with managing their own invoice collection efforts. However, demands for cash payments can put businesses at a disadvantage in a global market place where credit terms can be a competitive tool to expand market share.

Key takeaways from the report

  • Businesses polled across Romania revealed a drop in the use of trade credit. 47% of all B2B sales were transacted on credit this year, compared to 58% last year. Where requests for trade credit were refused, this was most often due to higher risk of payment default.
  • Late payments affect an average of 35% of the total value of the B2B invoices issued by the businesses polled in the country. This is down from 47% reported last year. Write-offs saw a significant year-on-year reduction to 4% of total sales, down from 8%.
  • Businesses that told us they opted to manage customer credit risk in-house told us they had incurred increased administrative and collection costs.
  • Although many were able to contain DSO levels (Days Sales Outstanding), businesses told us the effort to do so was costly. This may explain why a significant number of the
    businesses we polled in Romania told us they had sought credit insurance as a more cost-effective solution for managing cash flow.
  • Looking into 2022, 76% of businesses anticipate growth in 2022. The belief that payment practices will improve is widespread and nearly half of businesses intend to offer trade credit more often next year.
  • An increasing percentage of businesses polled in the country is considering taking out credit insurance over the coming months, although retaining credit risk in-house is still preferred by most businesses we polled,
  • When asked which pandemic-induced changes will become a permanent feature of the way they do business, 57% of businesses told us that they have permanently integrated
    some digital innovations, particularly in the area of home working.

Interested in getting to know more?

The Payment Practices Barometer report for Romania gives insights into B2B payment practices and businesses' approach to the management of customer credit risk in the following local industries:

  • Chemicals
  • Construction
  • Construction materials

For a complete overview, please download the full country report available in the Related documents section below. The Statistical Appendix and regional Payment Practices Barometer survey results are also available free to download.

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