Advertise Here
Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Image
  Subscribe To »

German companies have switched to “crisis-mode” and offer less payment terms

Published

2020

Wed

23

Sep

Germany Corporate Payment Survey 2020

 

Paris, September 15, 2020 - German companies want to cash in as early as possible, according to the fourth edition of Coface’s survey on corporate payment experience in Germany, conducted in July and early-August 2020, with 753 participating companies located in Germany. 

 

Unsurprisingly, COVID-19 and its effects on the global and German economy is the predominant topic of this survey. One major finding is that German companies are getting worried: companies became cautious in providing payment terms to their clients and less companies are offering payment terms overall and these have shortened, even drastically in some sectors.

 

The main risks for the export-business have changed a lot. Last year’s number-one risk, the U.S.-China trade conflict, is only marginal within the risk spectrum of 2020. Instead, 3 out of 4 companies named COVID-19 and its effects on the global or the German economy as the main risk, alongside the disruption of production chains because of the pandemic. Nevertheless, risks like the Brexit - which is present since our 2017 survey - have not vanished and could become even more urgent with a “No-Deal-Brexit” looming for 2021. Thus, even with a slightly brighter outlook for 2021, Germany is far from exiting the “crisis-mode”.   

 

Payment terms: Cash is king

 

  • The average payment term decreased by 3 days, from 37 days in 2019 to 34 days in 2020. 
  • Only 62% of our participants answered that they offered payment terms in 2020. In the four previous years, over 80% of surveyed companies offered payment terms.
  • Short-term credit periods (0 to 30 and 30 to 60 days) dominate the German business landscape: half of the companies requested payments to be made between 0 and 30 days.
  • 100% of participants in the construction sector answered that they offered payment terms between 0 and 30 days stands out, bringing the average payment term in this sector to the minimum of 15 days. 
  • Automotive is the most generous sector in 2020, with an average payment term of 43.8 days.
  • The biggest change occurred in the pharma-chemicals sector, where payment terms were reduced by almost 18 days to 31.7 days.

 

Payment delays: Companies get their money faster

 

  • In 2020, 68% of our surveyed participants reported payment delays compared to 85% in 2019. 
  • The average overall payment delay time decreased by almost 2 days, from 37.7 days in 2019 to 35.9 days in 2020.
  • The reasons behind payment delays overall are mainly related to financial difficulties (48% in 2020).
  • 9% of participants named COVID-19 explicitly as the main reason for payment delays.
  • Sales outstanding (DSO) decreased sizeably by around 9 days, from 65.8 days in 2019 to 56.5 days in 2020.

 

Economic expectations: 2020 – a year of pessimism and uncertainty

 

  • While old risks have not vanished and still threaten the activity of German companies, COVID19 and its effects is the overwhelming topic in 2020, especially for the export business. 
  • 39% of all respondents expect better business conditions in 2021 compared to 2020, 14% are pessimistic for 2021.
  • 3 out of 4 companies named COVID-19 and its effects on the global or the German economy as the main risk, alongside the disruption of production chains because of the pandemic. 
  • 91% of the respondents consider the domestic market to be the market with the biggest business opportunities (vs. 81% in 2019).
  • 1 company out of 2 has benefited from State aids and especially, the short-time work compensation.

 

Methodology:

This is the fourth edition of Coface’s survey on corporate payment experience in Germany, conducted in July and earlyAugust 2020, with 753 participating companies located in Germany major sectors.

 

Click on the link below for the full publication:

https://www.cofaceza.com/News-Publications/Publications/Germany-Corporate-Payment-Survey-2020-German-companies-have-switched-to-crisis-mode-and-offer-less-payment-terms

 

As our lowest category is 0 to 30 days, the minimum average payment term is 15 days in our survey.

Construction, Transportation, ICT, Pharma-Chemicals, Retail-Wholesale Trade, Paper-Packing, Agri-Food-Wood, Metals, Machinery, Textile-Clothing, Automotive)

 
Source: Coface
 
« Back to previous page Print this page » |
 

Breaking News »

What will Finance Minister Tito Mboweni's 2020 Medium Term budget offer?

South Africa's economic recovery plan The plan is aimed at fast-tracking the recovery of the economy from the devastation caused by the COVID-19 pandemic. It outlines government's plan to revive the ...
Read More »

  

It's all about Software-as-a-Service (SaaS)

What is SaaS eCommerce? SaaS stands for Software-as-a-Service, is a software licensing and delivery model in which software is licensed to a user, it’s a way of delivering services which can be accessed ...
Read More »

  

Introducing Insure Cloud, your SaaS short term insurance platform

Stepping into the market   During the pandemic COVID-19 many industries along with the insurance sector experienced a time of uncertainty followed by a sudden change and growth in technological and digital ...
Read More »

  

Allianz appoints Head of Property for South Africa

Ronald Dodo-Tabaziva, currently Lead Property Underwriter is appointed Head of Property in South Africa. Robert Ter Morshuizen, who oversaw Property, Energy and Construction will focus on Energy and Construction ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Default:

Failure to pay an insurance premium on the due date specified in the policy. This defaulter is not penalised if thepremium is paid within the grace period (for life insurance).
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.