A growing number of German corporations encounter delays in receiving their payments.
It appears that a substantial number of businesses in Germany are experiencing delayed payments, as suggested by French credit insurer Coface, which has a base in Mainz. The survey conducted by Coface unveiled that an astounding 78% of the companies questioned this year experienced payment delays, which is a 2% rise compared to the previous year and even surpasses the rates recorded during the pandemic.
The delay in payments, though, has only slightly increased this year, with the average payment delay duration reaching 31 days. In contrast, before the pandemic, it took a substantial 40 days for payments to be settled. Nevertheless, Coface reported that 16% of the companies were hit by "exceptionally late" payments, which accounted for over 2% of their annual revenue. This figure represents a significant jump of 7% points compared to the previous year.
"Exceptionally late" payments, Coface's Jochen Böhm explained, pose a "notable business risk" and may even lead to bankruptcy. Extrapolating globally, over 80% of claims older than 180 days are not compensated, as per Coface's data.
The apparel industry, according to Coface, struggled the most in terms of payment discipline, with 88% of the companies reporting late payments, contrasted to 68% in the transport sector.
Coface collected data from a substantial 774 companies representing 13 "broadly diverse" industries through interviews carried out between June and August this year.
The percentage of businesses facing "exceptionally late" payments, which account for over 2% of their annual revenue, has significantly increased by 7% points this year. Furthermore, globally, around 80% of claims older than 180 days are not compensated.
