Key findings Regional overview Our recommendations
European Payment Report 2020
Our recommendations
European Payment Report 2020
Our recommendations
“All business is based on trust,” said one of our interviewees. “In the long-term, the only way to survive is to be ethical.”
About three-quarters of respondents (73 per cent) agree that payments paid on time are critical to building and maintaining trust with their suppliers and partners.
But our survey also shows that businesses across Europe have a long way to go to improve payment practices. And now Covid-19 is increasing the pressure on businesses, as slowing economic growth reduces demand and supply chains are disrupted.
What can businesses do to tackle the problem of late payment?
“All business is based on trust,” said one of our interviewees. “In the long-term, the only way to survive is to be ethical.”
About three-quarters of respondents (73 per cent) agree that payments paid on time are critical to building and maintaining trust with their suppliers and partners.
But our survey also shows that businesses across Europe have a long way to go to improve payment practices. And now Covid-19 is increasing the pressure on businesses, as slowing economic growth reduces demand and supply chains are disrupted.
What can businesses do to tackle the problem of late payment?
1
Build stronger relationships with customers
This year’s survey shows that the risk from debtors in terms of late or non-payment is increasing, as government lockdowns have restricted cash flow, which threatens jobs.
To mitigate the risk, businesses must make it as easy as possible for a customer to pay what they owe. New technologies, such as credit and payment-collection software, can increase efficiency in the debt collection process and build stronger client relationships.
1
Build stronger relationships with customers
This year’s survey shows that the risk from debtors in terms of late or non-payment is increasing, as government lockdowns have restricted cash flow, which threatens jobs.
To mitigate the risk, businesses must make it as easy as possible for a customer to pay what they owe. New technologies, such as credit and payment-collection software, can increase efficiency in the debt collection process and build stronger client relationships.
2
Tackle the late-payment culture
When they try to solve the problem of late payment in their industry, businesses must first look to their own payment practices.
About six in 10 survey respondents agree that paying suppliers late is a governance issue and should be addressed through internal business practices – such as by enabling a culture that supports prompt payment across the supply chain – and about four in 10 have a code of ethics in place to encourage such timely payment
2
Tackle the late-payment culture
When they try to solve the problem of late payment in their industry, businesses must first look to their own payment practices.
About six in 10 survey respondents agree that paying suppliers late is a governance issue and should be addressed through internal business practices – such as by enabling a culture that supports prompt payment across the supply chain – and about four in 10 have a code of ethics in place to encourage such timely payment
3
Show leadership
Larger businesses can act as role models within their industry. By getting involved in in prompt-payment initiatives such as the UK’s Prompt Payment Code, they can promote best practice throughout their own supply chains. But our survey finds that 45 per cent of large corporations across Europe have no involvement in any voluntary initiative to support good payment practice.
Half of respondents would like to see the introduction of new legislation in order to tackle the problem of late payment – a 5 per cent rise on last year. Engagement in voluntary and government initiatives will help to bring about that late-payment culture change – and ultimately help to rebuild healthy economies post-crisis.
3
Show leadership
Larger businesses can act as role models within their industry. By getting involved in in prompt-payment initiatives such as the UK’s Prompt Payment Code, they can promote best practice throughout their own supply chains. But our survey finds that 45 per cent of large corporations across Europe have no involvement in any voluntary initiative to support good payment practice.
Half of respondents would like to see the introduction of new legislation in order to tackle the problem of late payment – a 5 per cent rise on last year. Engagement in voluntary and government initiatives will help to bring about that late-payment culture change – and ultimately help to rebuild healthy economies post-crisis.
For more information please contact: Anna Fall Chief Brand & Communications Officer Intrum Phone: +46 70 996 98 21 e-mail: anna.fall@intrum.com
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For more information please contact: Anna Fall Chief Brand & Communications Officer Intrum Phone: +46 70 996 98 21 e-mail: anna.fall@intrum.com
© Intrum 2020
© Intrum 2020