Italian businesses tighten their B2B trade credit policy amid a tough domestic landscape featuring a sharp rise in insolvencies.
The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.
The 2023 Payment Practices Barometer survey for Italy was conducted between the end of Q1 and the beginning of Q2 2023. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Italy
Insolvency fears spark strong credit management measures
- A significant tightening of trade credit policy was adopted by companies polled in Italy amid a tough domestic economic landscape featuring a sharp rise in insolvencies. This was evident in the strong downward trend of sales transacted on credit with B2B customers, which now average 58% of all B2B sales.
- Another response of Italian businesses to the heightened risk of payment default was granting markedly shorter payment terms to their B2B customers. These now average 43 days from invoicing, although the steel-metals sector bucked the trend by offering more liberal payment terms to remain competitive in international markets.
Business prospects worsen amid uncertain economic outlook
- The fragile domestic economy, with inflation slowing only gradually, means companies polled in Italy have a range of fears about the year ahead. Many businesses told us they are concerned that continuing high costs of input for production and energy will put heavy strain on their cost structure.
- Persistent high inflation is also a key worry in a period of falling household consumption and a weak global economy. Uncertainty was also expressed about the effect of rising interest rates, which companies polled said would very probably mean a slowdown in business investment this year.
Interested in finding out more?
Please download the full report for a complete overview of the 2023 survey findings of the Atradius Payment Practices Barometer for Italy.
For a complete overview of the survey results for Western Europe, please download the full report available in the Related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.
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