5% of inter-company invoices in Hungary remained unpaid last year, while 2.3% of invoices had to be written off in 2021, according to an analysis of payment habits by credit insurer Atradius.
According to the survey of 200 Hungarian companies, 40% of firms found that their customers paid later than a year earlier, compared with 33% in 2021, according to the Atradius summary.
In the agri-food industry, 60% of respondents said they gave more customers credit to make a purchase; in 2021, 42% of transactions were on credit, compared with 47% last year. This was justified by the ability to attract new customers and retain old ones despite competitive pressure. Last year, the payment period in the two sectors was 43 days, five days more than in 2021.
In the steel industry, 54% of companies did not change their credit policy, but 10% gave their customers shorter time to pay their bills than in 2021. The average payment period was 39 days in 2022, compared to 35 days in 2021. In the steel industry, 31% of customers paid suppliers late and 4% did not pay at all.
In the food industry, 35% of customers paid their invoices late in 2022, and 6% did not pay at all. In consumer durables, the share of late payments was 33% and the share of bad debts was 5%.
According to the survey, some respondents have tried to boost their own cash flow by giving their customers a discount for early payment. Another typical technique was for companies to spend more time and money on collecting invoices than in the past.
In all the sectors studied, firms were often forced to delay payment to their own suppliers. One third of the companies surveyed used credit insurance to manage liquidity problems.
According to the Atradius survey, 46% of the 200 Hungarian respondents expect their company's performance to decline this year, and 49% believe that the turnover of invoices will continue to increase because their customers' liquidity is not improving.


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