Payment practices by industry
Similarly to what was observed in Western Europe, domestic B2B
customers in the paper sector in Eastern Europe are extended
the longest payment terms (averaging 40 days from the invoice
date). Markedly above the average for the region are also the payment
terms extended to domestic customers in the consumer
durables sector (38 days). Foreign customers in the construction
sector are given the longest time to pay invoices (payment terms
average 37 days).
Despite the most relaxed average term for payment of invoices,
domestically, the paper sector in Eastern Europe generates the
highest proportion of late payments (around 55% of the invoice
value ends up in late payments). Past due payments on foreign
invoices occur most often in the consumer durables and food
sectors (around 36% of invoices paid late).
In Eastern Europe, domestic late payments due to insufficient
availability of funds are reported to occur most often from B2B
customers in the agriculture and construction sectors. Late payments
due to the formal insolvency of the customer (liquidation,
receivership, bankruptcy) are most often reported in respect to
the textile sector (33% of respondents). The majority of the respondents
in Eastern Europe don’t expect changes in the payment
behaviour of domestic customers. However, a sizeable percentage
of the respondents (29%) expects a slight deterioration
in the payment behaviour of domestic customers in the chemicals
sector in the next 12 months.
Late payments due to insufficient availability of funds from foreign
B2B customers are reported to occur most frequently in the
paper sector (around 67% of the respondents). In half of the cases
this is due to the formal insolvency of the customer. Most Eastern
European respondents do not expect c