Fintech PR
Intrum: A third of European businesses practice late payment hypocrisy
- 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.
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:
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IAB_2023.07.06_European Payment Report #3 |
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VILNIUS, Lithuania, Dec. 27, 2024 /PRNewswire/ — BingX, a global leading cryptocurrency exchange, is excited to announce the launch of ALTCOIN Index, the first futures trading pair involving top altcoins. This innovative trading product offers users a one-click solution to efficiently track and trade major cryptocurrency trends with ease.
Traditionally used in stock markets, a futures index is a financial derivative that tracks the performance of a group of assets, such as stocks of commodities. These instruments were first introduced to simplify trading by allowing investors to speculate on or hedge against the collective movements of selected market sectors. Instead of purchasing individual stocks, traders are able to access broad market exposure in a single transaction, saving time and reducing costs.
In the cryptocurrency market, this new ALTCOIN/USDT futures trading pair works similarly by bundling the performance of the top mainstream cryptocurrencies by market capitalization, excluding Bitcoin (BTC) and stablecoins. The current index includes ETH, XRP, SOL, BNB, DOGE, ADA, TRX, AVAX, and SHIB. This approach is more efficient compared to buying individual cryptocurrencies or ETFs as this allows for direct speculation using tiered leverage options without the need to manage multiple positions, effectively diversifying trading risks associated with individual asset volatility.
Vivien Lin, Chief Product Officer of BingX, commented on the new offering: “By aggregating a range of leading cryptocurrencies into a single trading instrument, we’re giving users a practical and efficient way to better capture market trends. This index trading pair should help our less experienced users with their trading goals more easily, particularly when they are unsure which asset to trade and just want to trade major altcoins in general with leverage.”
BingX users can take advantage of tiered leverage options and competitive rates consistent with the platform’s perpetual futures terms, simplifying open order management and enhancing trading efficiency. The platform also ensures that the index composition remains current, with regular quarterly adjustments and temporary updates in response to market conditions.
About BingX
Founded in 2018, BingX is a leading crypto exchange, serving over 10 million users worldwide. BingX offers diversified products and services, including spot, derivatives, copy trading, and asset management – all designed for the evolving needs of users, from beginners to professionals. BingX is committed to providing a trustworthy platform that empowers users with innovative tools and features to elevate their trading proficiency. In 2024, BingX proudly became the official crypto exchange partner of Chelsea Football Club, marking an exciting debut in the world of sports.
For more information please visit: https://bingx.com/
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SINGAPORE, Dec. 27, 2024 /PRNewswire/ — Nodepay, a decentralized AI platform transforming unused internet bandwidth into real-time data pipelines for AI training, today announced it has raised a second round of funding, bringing its total to $7 million.
The latest funding round welcomed new strategic investors IDG Capital ($23 Billion AUM), Mythos, Elevate Ventures, IBC, Optic Capital, Funders.VC, Matthew Tan (Etherscan founder) and Yusho Liu (CoinHako Co-founder & CEO) as notable angels. They join an impressive roster of previous backers that includes Animoca Brands, Mirana, OKX Ventures, JUMP Crypto, Tokenbay Capital and more.
Nodepay’s network taps into a global community of users running privacy-protected nodes. By sharing their spare internet bandwidth, these participants earn rewards for creating a real-time data source that improves AI inference with accurate, timely information—an approach known as Retrieval Augmented Generation (RAG).
Darren Nguyen, co-founder of Nodepay commented: “Our mission is to develop solutions that create tangible value for both AI developers and its end users. We give contributors a share in the AI ecosystem they help fundamentally build.”
Nodepay’s infrastructure platform integrates real-time data retrieval, a Web3-focused decentralized answer engine, reinforcement learning for more accurate model output, and gamified human verification. Together, these components combine to create a fair, collaborative, and innovative AI ecosystem.
Eric Le, investment director of IDG Capital, said, “The team at Nodepay is democratizing the AI economy by providing a platform that allows users to share directly in the value they create. We’re proud to support their vision of making AI more accessible and beneficial to all.”
With this funding, Nodepay will continue to commercialize its infrastructure to benefit both its community and partner AI labs. As it prepares to launch on Solana, Nodepay stands ready to lead the next era of decentralized AI development and training.
Already serving over 1.5 million active users worldwide, Nodepay continues to expand its reach, solidifying its role as a leader in the integration of AI and blockchain technology. Users can expect further updates and new announcements through their social channels and official website.
About Nodepay
Nodepay is a decentralized AI platform dedicated to democratizing AI training through real-time data retrieval. By turning idle internet bandwidth into a valuable resource, Nodepay fuels the next generation of AI models and stands at the forefront of AI decentralization.
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PASAY CITY, Philippines, Dec. 26, 2024 /PRNewswire/ — The SM Group is approaching the coming year with cautious optimism, encouraged by the continued growth of the Philippine economy.
SM Investments President and Chief Executive Officer Frederic C. DyBuncio said that despite ongoing challenges of peso volatility and higher inflation, the business sector has adapted well.
Consistent demand sustained household spending in the third quarter, with Household Final Consumption Expenditure posting a year-on-year growth of 5.1%, maintaining the same level in the same quarter last year, data from the Philippine Statistics Authority showed.
“Any moderation in inflation should trigger a strong confidence rebound. This could create opportunities in consumer-focused sectors in the country and we are poised to cater to these evolving demands,” Mr. DyBuncio said.
To cater to growing demand, SM continues to expand into more underserved areas, contributing to sustainable economic development and collaborating with government stakeholders to enhance access to modern retail, financial services, and integrated property developments.
“By investing and expanding to more areas nationwide, SM creates new markets and improves access to these essential sectors, serving more communities and helping stimulate sustained economic activities,” he said.
Mr. DyBuncio also said SM continues to invest in promising ventures such as renewable energy and logistics, that foster economic activity.
SM has invested in the clean energy industry through Philippine Geothermal Production Company (PGPC) which produces 300 Megawatts of geothermal steam supply. SM aims to continue to develop geothermal concessions through PGPC in support of the Department of Energy’s goal of reaching 50% renewable energy supply by 2040.
To encourage circularity towards green energy production, SM’s property arm, SM Prime Holdings partnered with GUUN Co. Ltd. (GUUN) to implement the Japanese technique of reducing landfill impact. The technology converts non-recyclable and hard-to-recycle packaging into alternative fuel.
SM’s banking arm, BDO Unibank is one of the largest funders of renewable energy projects. BDO has funded PHP898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.
In logistics and tourism, the improvement of transport networks across the country’s archipelago connects tourist and industrial areas that will help create inclusive growth. SM though its subsidiary 2GO launched MV Masigla and MV Masikap in 2024 to help better connect goods to 19 ports across the country including Iloilo, Bacolod, Cagayan de Oro and Manila, further supporting the government’s push for medium term growth through an upgraded tourism infrastructure and ecosystem.
“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future,” Mr. DyBuncio said.
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