Only 70 pct of Romanians pay their invoices on time, reveals EOS KSI survey

Newsroom 16/09/2014 | 16:32

Romanians and Bulgarians are the least punctual payers in Europe, with only 70 percent of invoices paid on time, according to a EOS KSI survey conducted in 12 European countries this year. Overall, the share of invoices settled on time in Romania has been dropping for a second consecutive year in 2014, the survey has revealed.

Romania comes behind the Eastern European average of 72 percent and substantially behind the pan-European average of 75 percent. Nevertheless, the rate of bad debts has been improving, from almost 10 percent in 2012 to 5 percent this year.

The average payment term in Romania at present is 38 days (companies pay in 40 days on average and individuals in 33 days), compared to 37 days, the average in both Eastern and Western Europe.

“The reasons cited for the poor payment practices of B2B customers are primarily cash flow problems, outstanding payments from their own customers and the current economic situation. In the case of B2C customers, late payments are also often attributed to unemployment,” said Georg Kovacs, the managing director of EOS KSI Romania, stressing that in Romania there is a general tendency to pay late.

The survey has also revelead that unlike in the rest of the region, Romanian companies are more optimistic about the future. “Compared with other Eastern Europeans, Romanian companies are more likely to assume that payment practices are going to improve in the next two years,” added Kovacs.

The local debt collection market is estimated to have reached EUR 260 million in 2013, up by about 10 percent y-o-y. A similar growth rate is expected this year as well, said EOS KSI Romania’s head.

The EOS Survey 2014 ‘European Payment Practices’ was conducted in early 2014 by TNS Infratest which polled 2,600 financial experts from 12 European countries about the payment practices in their respective nations.

Read more in next week’s print edition

Simona Bazavan

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