The recent results of Intrum Justitia’s European Payment Index Survey Spring 2008 show that companies, public authorities and private individuals across much of the European Union are taking longer to settle their outstanding invoices than ever before. The study conducted by Intrum Justitia, Europe’s leading provider of Credit Management Services, compares payment risks in 25 European countries.
Download: Get your free electronic copy (PDF)
Print: Get your free printed copy
Payment risks: it is getting harder to get paid on time
There are almost certainly worse times ahead. The growing credit crunch along with the impact of higher oil and food prices will create a tougher lending climate for individuals and corporations as banks and other financial institutions adjust to the new reality. The potential consequences for Europe of the late payment issue are dire. Late payments remain one of the most significant trade barriers in Europe, costing around €25 billion annually in additional costs for companies.
Payment loss and its harsh effect on business
Payment loss should be minimized as it has a high impact on the business. Payment loss percentage increased from 1.9% in 2007 to 2.0% in 2008.
There are almost certainly worse times ahead. The growing credit crunch along with the impact of higher oil and food prices will create a tougher lending climate for individuals and corporations as banks and other financial institutions adjust to the new reality. The potential consequences for Europe of the late payment issue are dire. Late payments remain one of the most significant trade barriers in Europe, costing around €25 billion annually in additional costs for companies.
For further information, please contact:
Intrum Justitia Group, Stockholm
Madeleine Bosch, Head of Research EPI
Tel: +31 70 452 7323
Mobile: +31 6 46 21 25 79
E-mail: public-relations.epi@intrum.com
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group, with revenues of approximately SEK 2.8 billion (USD 375 million) and around 2,900 employees in 24 European markets. Intrum Justitia strives to measurably improve customers’ cash flows and long-term profitability by offering high quality in relationships with both customers and debtors in each local market. The group offers a wide range of services to manage commercial and consumer receivables. Intrum Justitia AB (ticker IJ) is listed on the OMX Nordic Exchange in Stockholm. Fore more information, please visit http://www.intrum.com/
Payment Index
The payment index is used to compare different economies, regions or sectors. Alongside technical financial figures, the index is based on assessments from the companies surveyed. The data forming the basis of the index is generated twice yearly using a standardised written panel survey. List of basic data elements: Contractual payment term (in days); Effective payment duration (in days); Age structure of receivables (DSO); Payment loss (in %); Estimate of risk trends; Characteristics of the consequences of late payment; Causes of late payment. The Payment Index is calculated from eight differently weighted sub-indices, which are based on a total of 21 individual values.
Payment Index - Implications for Credit Policy
100 no payment risks, i.e. payments are made in cash, on time (or in advance) and without any credit
101 - 124 preventive actions - measures to secure the current situation are recommended
125 - 149 need to take action
150 - 174 strong need to take action
175 - 199 major need to take action
over 200 urgent need to take action
Optimize your operational profit
Intrum Justitia gives you the opportunity to compare key operational figures for your company with average market values and Best Practice values. The tailor-made report calculates the individual risks for the company and presents comparisons of payment history of customers, the age structure of outstanding receivables as well as payment losses. Furthermore, potential improvement opportunities (capital commitment, profit optimisation) are identified and calculated. This unique expert tool includes values from 26 European markets. The European Payment Benchmark report is available free of charge. To get access click here.Companies, public authorities and private individuals across much of the European Union are taking longer to settle their outstanding invoices than ever before according
to Intrum Justitia’s latest annual European Payment Index survey. And, in general, the worst offenders are the very people who should be setting the best example in paying on time – public authorities.
Download: Get your free electronic copy (PDF)
Print: Get your free printed copy
Payment risks: it is getting harder to get paid on time
There are almost certainly worse times ahead. The growing credit crunch along with the impact of higher oil and food prices will create a tougher lending climate for individuals and corporations as banks and other financial institutions adjust to the new reality. The potential consequences for Europe of the late payment issue are dire. Late payments remain one of the most significant trade barriers in Europe, costing around €25 billion annually in additional costs for companies.
Payment loss and its harsh effect on business
Payment loss should be minimized as it has a high impact on the business. Payment loss percentage increased from 1.9% in 2007 to 2.0% in 2008.
There are almost certainly worse times ahead. The growing credit crunch along with the impact of higher oil and food prices will create a tougher lending climate for individuals and corporations as banks and other financial institutions adjust to the new reality. The potential consequences for Europe of the late payment issue are dire. Late payments remain one of the most significant trade barriers in Europe, costing around €25 billion annually in additional costs for companies.
For further information, please contact:
Intrum Justitia Group, Stockholm
Madeleine Bosch, Head of Research EPI
Tel: +31 70 452 7323
Mobile: +31 6 46 21 25 79
E-mail: public-relations.epi@intrum.com
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group, with revenues of approximately SEK 2.8 billion (USD 375 million) and around 2,900 employees in 24 European markets. Intrum Justitia strives to measurably improve customers’ cash flows and long-term profitability by offering high quality in relationships with both customers and debtors in each local market. The group offers a wide range of services to manage commercial and consumer receivables. Intrum Justitia AB (ticker IJ) is listed on the OMX Nordic Exchange in Stockholm. Fore more information, please visit http://www.intrum.com/
Payment Index
The payment index is used to compare different economies, regions or sectors. Alongside technical financial figures, the index is based on assessments from the companies surveyed. The data forming the basis of the index is generated twice yearly using a standardised written panel survey. List of basic data elements: Contractual payment term (in days); Effective payment duration (in days); Age structure of receivables (DSO); Payment loss (in %); Estimate of risk trends; Characteristics of the consequences of late payment; Causes of late payment. The Payment Index is calculated from eight differently weighted sub-indices, which are based on a total of 21 individual values.
Payment Index - Implications for Credit Policy
100 no payment risks, i.e. payments are made in cash, on time (or in advance) and without any credit
101 - 124 preventive actions - measures to secure the current situation are recommended
125 - 149 need to take action
150 - 174 strong need to take action
175 - 199 major need to take action
over 200 urgent need to take action
Optimize your operational profit
Intrum Justitia gives you the opportunity to compare key operational figures for your company with average market values and Best Practice values. The tailor-made report calculates the individual risks for the company and presents comparisons of payment history of customers, the age structure of outstanding receivables as well as payment losses. Furthermore, potential improvement opportunities (capital commitment, profit optimisation) are identified and calculated. This unique expert tool includes values from 26 European markets. The European Payment Benchmark report is available free of charge. To get access click here.Companies, public authorities and private individuals across much of the European Union are taking longer to settle their outstanding invoices than ever before according
to Intrum Justitia’s latest annual European Payment Index survey. And, in general, the worst offenders are the very people who should be setting the best example in paying on time – public authorities.
