A sharp worsening of B2B customers' payment practices during the past months prompted a range of actions in response by companies polled in Ireland.
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 Ireland 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 Ireland
Trade credit risk concern as bad debt levels soar
- The trade credit risk landscape worsened significantly during the past year across all sectors polled in Ireland, payment delays increasing by 20% and bad debts rising to almost double the previous level. Late payments now affect an average 58% of all B2B invoiced sales, posing a clear threat to business liquidity.
- These stark trends occurred even though the appetite for selling on credit remained steady among companies polled in Ireland and they employed a far more liberal trade credit policy. Many companies polled said they used trade credit as a means to obtain short-term finance in preference to less affordable bank loans.
Economic headwinds remain a worry but outlook is optimistic
- A range of concerns still cloud the outlook for companies polled in Ireland amid a generally optimistic economic forecast. Many businesses told us they fear that the legacy of high energy prices will feed into non-energy sectors and put a heavy strain on cost structures.
- There is anxiety, too, that persistently high interest rates will mean further headwinds for the Irish economy. Companies polled also said the liberal payment terms widely offered to B2B customers to remain competitive in domestic and international markets could bring cashflow issues and liquidity shortfalls, and even threaten the viability of the business
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 Ireland.
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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