Only half of Spanish firms take steps to pay invoices on time

Only half of Spanish firms take steps to pay invoices on time ...

Only 45% of Spanish firms consider it a priority to improve the payment process to its suppliers in a boom period. This is one of the main reasons for companies to postpone their own payments.

Delinquency is one of the most common problems that businesses face, a situation that has been exacerbated in recent months by economic instabilities, which puts their liquidity and viability at jeopardy.

In this sense, businesses are well aware of the importance of making payments promptly in order to maintain good relationships with both their suppliers and customers. 66 percent of Spanish companies believe that payments within established deadlines are essential to engender and maintain trust with suppliers and partners.

Despite the fact that only 53% of businesses follow the pay schedule, this situation might seem to be a consequence of the current economic uncertainty, but in reality, 45% of Spanish companies identify as one of their main objectives to ensure that they pay their suppliers and partners on time.

Spain is the third country that is least concerned about implementing this type of measure in periods of economic boom, only ahead of the Netherlands (42% and Portugal (43%), while Switzerland (65%), Slovakia (66%) and Ireland (66%) are the countries with the greatest number of companies that pay their bills on time.

One of the main reasons for businesses to postpone payments to their suppliers is the delay in the collections of their own clients, according to 73 percent of businesses that strive to improve the way in which they administer and manage their processes to pay their own customers' collections on time: 73% of businesses interviewed said they would pay their suppliers sooner if they received payment from their debtors sooner.

In comparison to other aspects of sustainability, expansion, and digital transformation, a response is positioned as the company's top objective.

In line with the latest CEPYME ‘SME Barometer on delinquency’ data, business delinquency increased by 42% in the first quarter of the year in comparison to the same period in 2021, reaching 348,992 million euros.

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