B2B payment practices
Payment Practices Barometer | Eastern Europe
Despite losing steam, economic growth in Eastern Europe is projected to remain solid.
Credit offered more often than last year
Suppliers surveyed in Eastern Europe transacted on average 67.2% of the total value of their sales to B2B customers on credit (up from 38.8% one year ago).
Average payment terms have increased in most surveyed countries
Besides offering trade credit more often than last year, suppliers surveyed in Eastern Europe appear equally likely to give their B2B customers more time to settle invoices.
Assessing creditworthiness and dunning are most common credit management techniques
The credit management techniques that suppliers surveyed in Eastern Europe appear to use most often are the assessment of the prospective buyer’s creditworthiness prior to any trade credit decision (as reported by 39% of respondents) and dunning activities (outstanding invoice reminders) as reported by 36% of respondents.
Late payments has most impact in Turkey and the least impact in Bulgaria
Consistent with increased timely payments from customers (73.3% of invoices paid on time compared to 64.3% one year ago), suppliers surveyed in Eastern Europe could significantly shorten their invoices to cash turnaround to an average of 48 days, down from 55 last year.
80% of respondents don’t expect access to bank finance to improve over the coming months
3 in 5 suppliers surveyed in Eastern Europe do not expect payment practices of their B2B customers to change over the coming months.