Fintech PR

Intrum: A third of European businesses practice late payment hypocrisy

Published

1 year ago

July 6, 2023

More than a third (37 per cent) of European businesses admit to increasingly paying their suppliers later than they would accept from their own clients and customers
Half (54 per cent) would like to pay their suppliers faster, but don’t believe this is feasible in the current economic climate
Reducing late payments would enable greater investment in product and expansion of services, according to 62 per cent of European businesses

STOCKHOLM, July 6, 2023 /PRNewswire/ — More than a third (37 per cent) of European businesses are increasingly paying their suppliers later than they would ever accept from their own clients and customers. This is according to the findings of Intrum’s 2023 European Payment Report. In the UK, this figure rises to 54 per cent, a significant spike compared with neighbouring European countries such as France (36 per cent), Germany (36 per cent) and Spain (33 per cent).

While companies promote on-time payments, most are not leading by example. Payment hypocrisy is becoming increasingly prevalent among businesses of all sizes. This means having to shoulder late payments is not just common but expected across all sectors.

That said, businesses show regret when making late payments; over half (54 per cent) of European businesses would like to pay their suppliers faster but don’t feel it is feasible in the current economic climate of high inflation, rising interest rates and increasing labour costs.

Accepting delayed payments to preserve good client relations

The European Payment Report reveals more than half (53 per cent) of businesses will accept longer payment terms than they are naturally comfortable with, because they do not want to damage client and customer relationships. Looking across sectors, construction firms (57 per cent) are the most likely to accept late payments to preserve good client relationships.They are closely followed by businesses in government and the public sector (56 per cent) along with transport and logistics (56 per cent).

Worryingly, 47 per cent of European businesses admitted that in the past year they have been forced to accept longer payment terms in order to avoid the risk of their clients and customers going bankrupt. And the bankruptcies have been visibly on the rise since mid-2022.⁽¹⁾

Does size matter?

While larger companies have historically used their size and influence to gain favour and leniency, Intrum’s research shows a growing number of SMEs also asking for more flexibility around payment terms. Nearly two fifths (39 per cent) of SMEs said they would be more likely to request longer payment terms from suppliers or pay an invoice later than agreed, compared to 35 per cent of large businesses. This is likely because smaller businesses have relatively lower financial buffers and are therefore more susceptible to difficult economic environment.

In response to requests for longer payment terms, 53 per cent of businesses admitted they would accept this from large companies but are more reluctant to extend the same courtesy to SMEs. Just over a third (38 per cent) of businesses across Europe said they would accept longer payments to SMEs.

The cause and cost

When looking at the reasons for late payment hypocrisy, apart from difficult economic environment, half (50 per cent) of European businesses state that when they grow, they struggle to upgrade their processes and admin in a timely manner.

Furthermore, 50 per cent of businesses blame late payments on poor routines and processes, claiming these processes are not strong enough to support financial sustainability despite economic uncertainty. This highlights the growing pains involved with scaling up a business at pace in the current environment and the deep-rooted issues associated with late payments.

Earlier research from Intrum showed that businesses across Europe are spending more than a quarter of the working year, 74 working days, chasing late payments*. The time spent chasing late payments by European businesses costs the European economy €275bn**. This is more than the entire GDP [Gross Domestic Product] of Finland at approximately €272bn***.

Dealing with late payments helps businesses go for growth

If late payments became less commonplace this would enable businesses to instead invest this vital cashflow into other areas of their business, positioning them well for long-term growth. Two in three (65 per cent) European businesses said that faster payments from their clients and customers would enable their company to pay their own suppliers faster, enabling them to preserve client relationships. 62 per cent of businesses said having to shoulder less late payments would enable them to increase investment in products and expand their service offerings.

“An increasing number of businesses are pushing boundaries and taking risks when it comes to making payments to their suppliers, by failing to practice what they preach. This is a trend we are seeing across the board, from large businesses right the way through to SMEs and can have dangerous consequences for key working relationships.

“Not making payments on time has knock on effects and hinders all businesses’ ability to invest in long-term, sustainable growth. In extreme cases it can even mean businesses can’t pay their own staff on time or have to miss on their financial obligations while they wait to be paid, which could lead to bankruptcy. Balancing short-term cash flow pressures while continuing to prioritise making timely payments is crucial to ensure businesses maintain good client relationships and are viewed positively by both customers and suppliers.

“It is also vital that businesses have robust routines in place to manage late payments. Our research highlight a correlation between businesses that pay on time and those that have put codes of ethics in place. Businesses that make a public commitment to paying suppliers on time are more likely to do so”, said Anna Zabrodzka-Averianov, Senior Economist at Intrum.

(1) https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Quarterly_registrations_of_new_businesses_and_declarations_of_bankruptcies_-_statistics

Notes to Editors

*Businesses spend a quarter of the working year chasing late payments – 255 working days of the year. 74 as a percentage of 255 is 29%

** Figure based on Intrum survey findings extrapolated using OECD data on working hours and average salaries across European economies

*** https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=FI

About The European Payment Report 2023

The European Payment Report 2023 is based on an external survey conducted by FT Longitude in 29 countries in Europe. In total, 10, 556 small, medium, and large companies across 15 industry sectors participated in the research. Respondents were CFOs or other persons with financial knowledge of the company they work for and the companies have been selected randomly from a B2B database. The fieldwork for the study was conducted between November 2022 and March 2023.

The full report is available via the following link https://www.intrum.com/epr2023/

For more information, please contact:
Karin Franck, Media Relations and Public Affairs Director
+46 70 978 72 74
[email protected]

Kristin Andersson, Media Relations and Public Affairs Director
+46 70 585 78 18
[email protected]

The following files are available for download:

https://mb.cision.com/Main/8612/3800960/2175907.pdf

IAB_2023.07.06_European Payment Report #3

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Fintech PR

China’s AIMA brand electric motorbike is now in Bangladesh

Published

8 hours ago

November 23, 2024

CISION (PR Newswire)

DHAKA, Bangladesh, Nov. 23, 2024 /PRNewswire/ — With the popularity of electric vehicles in Bangladesh, the globally renowned AIMA brand has also arrived in Bangladesh. The esteemed DX Group has brought the AIMA F-626 to customers. This environmentally friendly battery-operated electric motorbike has already been approved by the Bangladesh Road Transport Authority (BRTA) now.

In light of the increasing popularity of electric motorcycles in the country, the internationally-leading brand AIMA has entered the market. By the end of 2023, AIMA electric two-wheelers had established a presence in over 50 countries worldwide, with 11 global production bases, including overseas factories in Indonesia and Vietnam. In 2022, AIMA collaborated with Rob Janoff, the designer of the Apple logo, to refresh the brand’s VI system with a youthful and fashionable image. In 2023, AIMA teamed up with PANTONE, the global authority in color expertise, to create the trending color of the year. As an industry leader, AIMA spearheads the electric two-wheeler sector and showcases the prowess of a leading electric two-wheeler brand on a global scale. As of March 31, 2024, AIMA’s total electric two-wheeler sales had reached 80 million units, earning certification from Frost & Sullivan, a globally recognized business growth consulting firm, as the “Global Leading Electric Two-wheeler Brand”.

Over the years, AIMA has always been a product trendsetter in the electric two-wheeler sector. As of March 31, 2024, the total sales volume of AIMA electric two-wheelers reached 80 million, and Frost & Sullivan, a world-renowned market consulting company, awarded AIMA with the market status certification of the “Global Leading Electric Two-wheeler Brand (by Sales)”.

AIMA adhere to the customer-centered product philosophy and technologies that support long-term innovation and breakthroughs. We believe that the efficiency and modern technology of the AIMA F-626 will present an excellent alternative means of communication for our customers.

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Fintech PR

China Telecom Gulf Officially Launches in Saudi Arabia for Business

Published

9 hours ago

November 23, 2024

CISION (PR Newswire)

china-telecom-gulf-officially-launches-in-saudi-arabia-for-business

HONG KONG, Nov. 23, 2024 /PRNewswire/ — On November 21, China Telecom Gulf was officially launched in Riyadh. This milestone marks a significant step in China Telecom’s efforts to provide deep services under the “Belt and Road Initiative” and to promote the building of a “China-Arab Community with a Shared Future.” It signifies another solid advancement on China Telecom’s path toward internationalization. Mr. Liu Guiqing, Executive Director and EVP of China Telecom Corporation, delivered an opening speech, along with Mr. Fawaz, Representative of Contact Office of Chinese Companies in the KSA, Deputy General Manager of Industrial and Commercial Bank of China Riyadh Branch. Over 100 guests and leaders from the Economic and Commercial Office of Embassy of the PRC of the KSA, Saudi Telecom Company (STC), Bank of China, Huawei, and others attended to witness this momentous occasion.

In his address, Mr. Liu Guiqing emphasized China Telecom’s commitment to openness, cooperation, and mutual benefit. He expressed the company’s willingness to share its experiences in cloud-network integration, cloud transformation, intelligent operations, and technological innovation. China Telecom aims to work closely with various levels of Saudi governments, enterprises, and partners to actively participate in the development of local digital infrastructure, drive the rapid advancement of next-generation information technologies, and establish a robust bridge for cooperation between China and Saudi Arabia in the field of information technology. Leveraging its extensive resources and global operational capabilities, China Telecom plans to bring its strengths in 5G, cloud computing, artificial intelligence, and other fields to provide innovative, high-quality communication products and services to Saudi enterprises, institutions, and consumers.

Mr. Fawaz extended his warm congratulations on the opening of China Telecom Gulf. He highlighted that as a leading global provider of communication services, China Telecom possesses abundant cloud-network resources and mature international service capabilities. The establishment of China Telecom Gulf is a significant step toward supporting the digital transformation of businesses in the region. He expressed confidence that through joint efforts, the company will seize opportunities in the digital era and contribute to Saudi Arabia’s socio-economic development and practical cooperation between China and Saudi Arabia in various fields.

China Telecom showcased its global resources, business capabilities, and its investments and partnerships in the Middle East and Africa. Key services introduced included eSurfing Cloud, computing power solutions, quantum technology, and customized 5G networks. Currently, China Telecom operates branches in 42 countries and regions worldwide, owns 53 international submarine cables, and manages 27 self-operated Internet Data Centers (IDCs). Its cloud-network integrated infrastructure and customer-centric digital service systems provide coverage across the globe.

During the event, China Telecom Gulf signed strategic cooperation agreements with Saudi Telecom Company (STC), Huawei Saudi Arabia, and Baud Telecom Company. The parties committed to deep collaboration, leveraging their respective strengths to provide optimized and convenient digital experiences to Saudi customers.

The establishment of China Telecom’s presence in Saudi Arabia marks a major milestone in the company’s entry into the Middle Eastern communications market, representing a key development in its global strategy. Moving forward, China Telecom Gulf will leverage China Telecom’s robust digital infrastructure and resource integration capabilities. We will collaborate closely with local Saudi enterprises, Chinese businesses expanding internationally, and global companies to strengthen cooperation and enhance exchanges. The company aims to contribute to the growth of Sino-Saudi and Middle Eastern industrial cooperation, continuously offering more smart solutions for the development of the Middle East’s digital economy, while striving to become a world-class provider of digital and intelligent technology services.

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Fintech PR

Redefining Financial Frontiers: Nucleus Software Celebrates 30 Years with Synapse 2024 in Singapore

Published

1 day ago

November 23, 2024

CISION (PR Newswire)

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SINGAPORE, Nov. 23, 2024 /PRNewswire/ — The thriving India–Singapore partnership in banking and technology reached a new milestone as Nucleus Software celebrated 30 years of transformative innovation at Synapse 2024, held in Singapore. The event underscored the company’s role in redefining financial services across Southeast Asia (SEA) and the globe, bringing together leaders in finance and technology to explore a shared vision for the future of banking.

Synapse 2024 celebrated 30 years of Nucleus Software’s leadership in driving transformative change across Singapore and Southeast Asia’s financial ecosystem. The event also shone a spotlight on the Global Finance & Technology Network (GFTN), an initiative supported by the Monetary Authority of Singapore (MAS) to champion responsible technology adoption. The event highlighted the deepening synergies between India and Singapore, driven by their shared commitment to innovation, cross-border collaboration, and financial inclusion. As the financial services sector undergoes rapid evolution with advancements in artificial intelligence, blockchain, and digital banking, these partnerships are setting the stage for a more connected, resilient, and inclusive global ecosystem.

Vishnu R. Dusad, Co-founder and Managing Director of Nucleus Software, reflected on the milestone: “For over 30 years, we’ve had the privilege of aligning our journey with Singapore’s ascent as a global financial powerhouse. Back in 1994, when we chose to go East instead of West, it was a bold and emotional decision—guided by our belief in Singapore as a hub for innovation and collaboration. We saw then what remains true today: Singapore is at the heart of the global financial landscape, a place where new ideas take root, and partnerships thrive.”

The event brought together a distinguished array of participants, highlighting the transformative potential of India–Singapore collaboration. Mr. Piyush Gupta, CEO of DBS Group and the Guest of Honor, set the tone for the event with his opening remarks, emphasizing the transformative role of big tech in reimagining scalable, customer-centric financial services in the digital age.

Following his address, key speakers enriched the discussions with their insights. Mr. Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore and Group CEO-Designate of The Global Finance & Technology Network (GFTN), underlined the importance of fostering responsible technology adoption and building inclusive financial ecosystems. Mr. Vinod Rai, globally respected public policy expert, Distinguished Visiting Research Fellow at the National University of Singapore, and former Comptroller and Auditor General of India, shared his perspectives on governance and policy frameworks in financial systems. Mr. S.M. Acharya, Chairman of Nucleus Software and former Defence Secretary of India, offered a visionary outlook on leveraging technology to modernize and secure banking frameworks. Finally, Mr. Pieter Franken, Co-founder and Director of GFTN (Japan), a global FinTech pioneer and deep tech innovator, discussed the future of decentralized finance and its implications for the financial sector.

The event showcased the transformative role of technology in global financial systems, emphasizing innovations that set benchmarks for scalability and inclusivity. Panelists discussed the importance of localized solutions, the challenges of cross-border integration, and leveraging dual business models to optimize capital and foster public participation. The dialogue highlighted the need for common standards, unified frameworks like APIs, and collaborative efforts to accelerate financial inclusion and drive global connectivity in the digital age.

For 30 years, Nucleus Software has consistently introduced advanced lending and banking solutions that support financial institutions’ evolving needs in Singapore and South East Asia. Driven by lean development methodologies like Acceptance Test-Driven Development (ATDD) and Continuous Integration/Continuous Delivery (CICD), Nucleus Software continues to push boundaries in efficient, flexible, and secure financial technology.

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