CREDIT CRISIS SHOWS AN IMPACT ON HABITS OF PAYMENT

An investigation of credit insurer ‘Atradius’ shows a first impact of the international credit crisis on the habits of payment of European and Belgian traders. 1200 companies are sounded out about the habits of payment of their business relations in Belgium, Germany, France, Italy, the Netherlands and the United Kingdom. Belgian companies pay their foreign outstanding accounts after an average of 35 days. That’s six days faster then the premising terms of payment. To their Belgian suppliers is the average 41 days, that’s ten days faster than last year. The investigation shows that traders search for alternative and cheaper manners of financing. One of them is the decrease of terms of payment for customers. Belgium and France are the only countries who undertake more steps this year to protect themselves against risks of payment.

Companies have to perform these manners if they want to see their money in the future. If you give customers a lot of time to pay off your bill, they will be inclined to pay first other debts and maybe afterwards there is nothing or less left for you. It’s a nowadays problem that people can start too many credits even if they have the financial possibilities to pay them back.

Jan

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