A study sheds light on the consequences of non-punctual payments in European businesses.
Late payments are a fairly widespread trend in the labor market, and they pose a far more important risk to businesses than one can imagine. In fact, as a first consequence, they create an immediate drop in liquidity for companies that issue invoices, with a significant impact not only on the company itself, but also on the labor market.
According to a study by Intrum 📄 evaluating the behavior related to payments and the financial situation of European companies, quite significant data can be deduced from this point of view. The study shows that the delay in payments significantly compromises the choices on hiring and layoffs. One out of five companies says that faster payments would allow hiring more employees. With late payments, on the other hand, the risks of dismissal increase exponentially.
Sometimes delays are intentional. In the case of the IT sectors there is a tendency to delay in making payments, often appealing to a vague inefficiency in the company’s administrative sector; and then, eventually, to have to compromise, accepting discounts not previously agreed upon. The same trend is registered in 30% of Italian manufacturing companies taken as a sample, while for European companies, this practice reaches 6%.
A change of course is necessary to guarantee the company survival and growth, starting from a simplification and optimization of the administrative procedures. It is precisely the Public Administration, in fact, to hold the “black jersey” of payments, for bureaucratic issues and widespread immobility which often entail a violation of the deadlines of more than six days. Consumers are the most punctual: the payment of an average user arrives in 41 days, even in advance of the 51 foreseen by the deadline.
Scarica l’ European Payment Report 2019: intrum-epr-2019