Late Payments Plague 83% of CEE Suppliers, Atradius Survey Shows
Event summary
- 83% of Central and Eastern European suppliers report late payments, with nearly one-third of invoices overdue.
- 54% of B2B sales are paid at the point of sale, while 46% are made on credit.
- Customer liquidity pressure is cited as the main cause of payment delays by 60% of companies.
- Reduced liquidity headroom, cash flow planning challenges, and rising financing needs are the top impacts on working capital.
- Higher borrowing costs may exacerbate liquidity struggles as firms rely more on external financing.
The big picture
The Atradius Payment Practices Barometer highlights a widening liquidity gap in Central and Eastern Europe, driven by sticky inflation, rising costs, and economic uncertainty. The survey underscores how payment delays are reshaping working capital dynamics, with firms facing reduced liquidity headroom and increased financing needs. These trends reflect broader challenges in the region's economic environment, where weakening demand and compressed margins are exacerbating financial pressures.
What we're watching
- Liquidity Cycle
- How the interplay of weaker customer credit quality, delayed payments, and rising financing needs will deepen liquidity constraints.
- Financing Costs
- Whether higher borrowing costs will further strain already stretched balance sheets.
- Trade Credit Use
- The pace at which firms will increase reliance on trade credit to sustain sales amid tightening liquidity.