Widespread use of credit insurance, combined with anti-insolvency support and legislation, has helped insulate many businesses from the more negative economic impacts of the pandemic.
This year’s Payment Practices Barometer survey took place after the pandemic had taken hold. Comparing the results to last year has given us a unique insight into how businesses are dealing with the virus and with the subsequent recession. Spain has seen a rapid rise in late payments as well as a significant lengthening of payment terms as businesses scrabble to boost domestic sales and support customers with short-term finance.
Looking forward to 2021, although businesses are concerned about pressures on cash flow, most of the respondents to our survey were fairly upbeat about both the domestic economy and international trade next year. This optimism may be rooted in the fact that Spain enjoys one of the highest levels of credit insurance usage in the region, providing both a safety net against insolvency and a springboard for business growth next year.
Key takeaways from the report
- 55% of the businesses we spoke to in Spain told us that they use trade credit to grow sales on the domestic market. This is particularly the case among especially SME businesses
- Longer payment terms offered as short-term finance on domestic market
- The total value of overdue B2B invoices in Spain was overdue increased by 73% year-on-year increase.
- Credit insurance is most favoured credit management tool for 2021
- Maintaining adequate cash flow presents a significant threat to profitability in 2021 for the majority of businesses surveyed
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Spain during the COVID-19 pandemic and global recession, please download the complete report.
The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Construction materials