Turkey: business sentiment upbeat despite late payments

Payment Practices Barometer

  • Turkey
  • Agriculture,
  • Automotive/Transport,
  • Chemicals/Pharma,
  • Consumer Durables,
  • Food,
  • Textiles

25th November 2020

Businesses in Turkey are currently well-placed to rebound in 2021, although much hinges on how well the country manages both the health and economic impacts of COVID-19 through the year end.

Introduction

Geopolitical uncertainty and a subdued economic performance in some key  industries had already begun to cause some payment delays and insolvencies  even before the pandemic recession took hold. Despite the challenges faced by Turkey’s businesses many are faring better  than their peers in Eastern Europe. 50% of businesses in Turkey reported a  negative impact of the pandemic-led economic crisis on revenue, compared to  59% at a regional level, and 48% told us of pressures on their cash flow,  compared to 51% across the region.

Overall, most businesses in Turkey were optimistic about the outlook for both domestic and international demand next year.

Key takeaways from the report

  • Turkey’s pandemic payment terms have shrunk by an average of 17 days. This is likely to be due to the heightened insolvency environment and a bid to reduce exposure to risk.
  • DSO and late payments soar over pre-pandemic levels
  • The value of overdue invoices grew by 83% compared to pre-pandemic levels.
  • Payment history and ability to make cash are KPIs for credit assessments in Turkey
  • Nearly all businesses in Turkey are managing the economic crisis by asking for payment up front, sending overdue invoice reminders and preparing to absorb bad debts in house
  • Despite economic stresses in Turkey, most businesses believe the domestic economy, global economy and international trade will all see some  improvement over the next six months.

Interested in getting to know more?

For a complete overview of the corporate payment behaviour in Turkey during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:

  • Agri-food
  • Chemicals
  • Consumer durables
  • Textiles
  • Transport

Download the full report

All content on this page is subject to our Disclaimer, available here.


Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommen¬dation or advice 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 any Publication 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 any Publication 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 any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.