EUROPEAN PAYMENT INDUSTRY WHITE PAPER

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1 EUROPEAN PAYMENT INDUSTRY WHITE PAPER 2

2 EPR Industry White Paper 2 European Payment Industry White Paper 2 Content Executive Summary 3 Pan-European sectoral analysis 9 Key findings Agriculture, forestry and fishing 1 Mining and quarrying 11 Electricity, Gas, Steam, Water 12 and Air Conditioning Supply 13 1 Transport and Storage Accommodation and Food Service Insurance 21 Real Estate 22 Support Service Public Administration, Defense, Education, Human Health and Social Work Pan-European country analysis Key findings Information about the survey 72 Legal Disclaimer 73 Legal About us 7 Addresses 76 EXECUTIVE SUMMARY Intrum Justitia has compiled data from 1,68 companies across Europe to produce an Industry White Paper. The purpose of the report is to gain insights regarding behavior and the situation of businesses in Europe. The report consists of a sectoral analysis, which examines 13 business sectors in Europe. The report also includes a national analysis from the perspective of selected business sectors in each country. The survey conducted was originally used to develop the European Payment Report of 2 where behavior among business are analyzed on a geographical basis. Producing this White Paper Report has given us valuable insights into the impact of late and non- on European economies and business sectors. The findings of our report clearly show that habits have varying impacts on different economies and industries. Some business sectors and economies are more vulnerable to late than others, although it is clear that all economies and industries in our report are impacted by s that are late or in default. Some aspects of the report indicate a positive outlook, while many aspects indicate negative trends when comparing the results for this year with those of last year. 3

3 EPR Industry White Paper 2 PAYMENT DELAYS As indicated by the results of our survey, late can have severe consequences for companies. Nevertheless, late is common in many business sectors. In Europe in general and among the various business sectors, we find that consumers are the most punctual with their s to companies. On average, consumers are punctual with their s, while corporates are on average three days late with their s and the public sector six days late. At a sector level, our findings show lengthy average delays of eleven days when looking specifically at the sector s s from the public sector. Average delays (in number of days) INCREASING PRESSURE TO ACCEPT LONGER PAYMENT TERMS Judging from the results of our study, we can see that companies are experiencing greater pressure to accept longer terms than they feel comfortable with. Among the companies that took our survey, as many as 61 percent said they have been asked to accept unreasonably long terms. This figure is high, and surprisingly 58 percent of the companies surveyed say they accepted unreasonably long terms. Have you ever been asked to accept longer terms than you feel comfortable with? Yes, Public administration, defense, education, human health and social work Real estate 5 53 We can detect a negative trend when comparing these figures to 2. In 2, less than half of the companies surveyed (6 percent) told us they had been asked to accept longer terms than they felt comfortable with. Pressure to accept long terms is particularly high in the Mining and Quarrying sector, where as many as 83 percent of the companies surveyed have received such requests. Have you ever accepted longer terms than you feel comfortable with? Yes, Public administration, defense, education, human health and social work insurance Agriculture, forestry and fishing Mining and quarrying Electricity, gas, steam and air conditioning supply insurance 55 Professional, scientific, technical, administration and support service Agriculture, forestry and fishing Accommodation and food service 67 Transport and storage 69 communication Real estate 55 Professional, scientific, technical, administration and support service 58 Accommodation and food service 6 Transport and storage 61 Agriculture, forestry and fishing Electricity, gas, steam, water and air conditioning supply retail trade Electricity, gas, steam, water and air conditioning supply retail trade retail trade Mining and quarrying 83 communication 68 Mining and quarrying 85 Transportation and storage 5 Accommodation and food service communication insurance Real estate Professional, scientific, technical, administration and support service Public administration, defense, education, human health and social work days CONSEQUENCES OF LATE PAYMENT Our survey shows that late can have severe consequences for companies, and some sectors appear more vulnerable to late than others. The consequences of late are regarded as being particularly severe with regard to liquidity squeeze and loss of income, according to our respondents. On average, percent of the respondents across all the sectors surveyed rate the impact of late as medium to high with regard to loss of income. Regarding liquidity squeeze, 2 percent of those surveyed rate the consequences as medium to high. Among companies in the Real Estate sector and the Accommodation and Food Services sector, on average 5 percent of the respondents rate the impact of late on loss of income as medium to high. This figure is high compared to the average for all business sectors in Europe. Share of respondents who rate the impact of late s as medium to high with regard to loss of income () [ Accomodation and food service [ Real estate 5

4 EPR Industry White Paper 2 EPR Industry White Paper 2 FASTER PAYMENT WOULD GENERATE MORE EMPLOYMENT OPPORTUNITIES The results of our study show that faster from debtors would enable companies to hire more. Among the business sectors surveyed in Europe, nearly a quarter ( percent) say faster from debtors would either definitely or probably enable them to hire more. In the Mining and Quarrying sector, almost four out of five respondents (79 percent) say faster from debtors would enable them to take on more, which is a considerably larger percentage compared to the average business sector in Europe. MAIN CAUSES OF LATE PAYMENT When companies were asked about the main reasons for late, the two most commonly cited causes were among debtors and intentionally late. More than six out of ten (66 percent) companies report that among debtors is one of the main causes, and more than half (55 percent) of the companies surveyed cite intentional late as the main cause of late. Debtors and intentionally late were also listed as the two main causes of late in our survey from last year (2). What precautions does your undertake to protect against bad? [ Bank guarantees [ Credit insurance [ Credit checks Agriculture, forestry and fishing Mining and quarrying Electricity, gas, steam and air conditioning supply retail trade [ Pre- [ Debt collection [ Factoring ne of the above REVENUE WRITTEN OFF Looking at all the business sectors in Europe that took part in our survey, the average percentage of revenue that was written off for 2 was 2.1 percent of total annual revenue. This is a slightly lower percentage compared to last year, when the equivalent figure was 2. percent. While this is good news, the percentage of lost revenue varies considerably between the different sectors. The highest proportion of revenue written off is in the Mining and Quarrying sector. In this sector, on average 9.7 percent of companies total annual revenue for 2 was written off. This figure has more than doubled since 215, when on average.5 percent of the total annual revenue was written off from the Mining and Quarrying sector. The lowest proportion of lost revenue is in the sector, with 1.8 percent of the total annual revenue written off in 2. The average share of bad debt loss in 2 as a percentage of the total yearly revenue, Agriculture, forestry and fishing 3. Mining and quarrying 9.7 Electricity, gas, steam, water and air conditioning supply retail trade 2.3 Transport and storage 2.8 Accommodation and food service 3.9 communication 2.7 insurance 3.6 Real estate 3.7 Professional, scientific, technical, administration and support service Public administration, defense, education, human health and social work DEMAND FOR NEW LEGISLATION TO ADDRESS THE PROBLEM OF LATE PAYMENT The results of our study indicate that companies are keen to see the introduction of new national legislation to tackle the problem of late. Among the business sectors surveyed in Europe, on average 2 percent say they would like to see the introduction of new national legislation to address the issue of outstanding invoices being paid after the due date. Furthermore, 38 percent of those surveyed say they would like to see the introduction of new national legislation to tackle the problem of demands for terms that extend beyond those recommended by national practice or law. Calls for new legislation in the Accommodation and Food Services sector are particularly high. Almost half (9 percent) want new legislation to tackle the issue of late. In the same sector, 5 percent say they want new legislation in order to address demands for long terms. ROOM FOR IMPROVEMENT IN COMPANIES APPLICATION OF PRECAUTIONS AGAINST POOR PAYMENT PERFORMANCE There are many actions that companies can take to protect themselves against poor performance. Judging from the results of our survey, we can see that there is room for improvement in companies application of protection against bad practices. Almost one in three of the companies surveyed (3 percent) say they do not use any of the most common precautions against Transportation and storage Accommodation and food service communication insurance Real estate Professional, scientific, technical, administration and support service Public administration, defense, education, human health and social work bad practices, such as credit checks, pre and debt collection. In addition, 6 percent of the companies that took our survey say they never hand over their outstanding invoices to a debt collection agency Are you familiar with the European Late Directive? (YES, ) Real estate Accommodation and food service Public administration, defense, education, human health and social work communication retail trade insurance Professional, scientific, technical, administration and support service Transportation and storage Agriculture, forestry and fishing Electricity, gas, steam and air conditioning supply Mining and quarrying KNOWLEDGE OF THE EUROPEAN LATE PAYMENT DIRECTIVE Compared to last year s survey, an increasing number of respondents from this year s survey say they are familiar with the European Late Payment Directive. This year, more than three out of ten surveyed companies ( percent) claim they are familiar with the Directive, which is somewhat higher than last year s figure of 28 percent. In the Electricity sector, more than half (57 percent) are familiar with the Directive. The fact that familiarity with the Directive is increasing is a positive development. However, four years have now have passed since the European Late Payment Directive was implemented and awareness of it remains low. The results reveal that 69 percent of the respondents are not familiar with the Directive, which is a high figure. Not only is familiarity with the Directive low, on average only percent of those who are familiar with the Directive say they have noted a positive impact as a result of the Directive in terms of fewer delays. 6 7

5 EPR Industry White Paper 2 NEGLIGIBLE CHANGE IN INVESTMENT LEVELS DESPITE GLOBALLY LOW INTEREST RATES Key interest rates in Europe are very low, and in some countries they are even negative. Low interest rates should act as a tool to boost the economy and thereby stimulate investment. Despite globally low interest rates, few companies seem to have noticed an increase in investment as a result. Among the business sectors surveyed in Europe, just 13 percent say they have noticed increased investment resulting from the low interest rates. According to our survey, some business sectors have benefitted more than others in terms of increased investment. For instance, more than a quarter ( percent) of companies surveyed in the Transportation and Storage sector say they have noticed greater investment as a result of low interest rates. The figure in this sector is twice the European average (13 percent). Share of respondents who have noted increased investments due to the globally low interest rates Mining and quarrying Agriculture, forestry and fishing Transport and storage Accommodation and food service Real estate insurance Electricity, gas, steam, water and air conditioning supply retail trade communication Public administration, defense, education, human health and social work Professional, scientific, technical, administration and support service PAN-EUROPEAN SECTORAL ANALYSIS Key findings DEBTOR RISK FORECAST TO REMAIN STABLE More than three quarters (76 percent) of the respondents in our survey forecast that debtor risk will remain stable over the next 12 months. This is a higher figure compared to last year s survey, in which the figure was 7 percent. Moreover, 13 percent of the companies that responded to our survey forecast a decline in debtor risk over the next 12 months, as opposed to 12 percent who forecast an increase in risk. In 2, 15 percent forecast an increase in risk. Judging from the results of this year s survey and the survey conducted last year, the trend appears positive with regard to debtor risk. Debtor risk varies across the business sectors in Europe, and is particularly high among companies in the Agriculture, Forestry and Fishing sector. In this sector, only 57 percent of the companies surveyed forecast that debtor risk would remain stable over the next 12 months, while percent forecast an increase in risk. How do you see risks from your s debtors developing during the next 12 months? 1 [ Remaining stable [ Declining [ Increasing Agriculture, forestry and fishing Mining and quarrying Electricity, gas, steam, water and air conditioning supply retail trade Transportation and storage Accommodation and food service communication insurance Real estate Public administration, defense, education, human health and social work Professional, scientific, technical, administration and support service 8 9

6 EPR Industry White Paper 2 EPR Industry White Paper 2 Severe consequences of late Compared to the European average, the Agriculture, Forestry and Fishing sector rates the consequences of late as severe with regard to additional interest costs, loss of income, liquidity squeeze, threat to survival, inhibiting growth, the dismissal of and recruitment capability. For instance, percent of those surveyed rate the consequences of late as medium to high with regard to additional interest charges. This is a higher percentage than the average of percent for all surveyed business sectors in Europe. Faster would generate more jobs In this sector, more than three companies out of ten ( percent) report that faster from debtors would enable their to hire more. This figure is high compared to the corresponding figure for Europe as a whole of percent. Late handover of outstanding invoices Among the companies surveyed in the Agriculture, Forestry and Fishing sector, on average 1 percent forward their outstanding invoices to a debt collection agency. On average, this sector forwards its invoices to agencies 93 days after the due date, which is almost two weeks later than the average European business sector (81 days). Debtor risk forecast to increase In this business sector, on average 57 percent of the companies surveyed forecast that debtor risk will remain stable for the next 12 months. This is a low percentage compared to the European average of 76 percent. In addition, percent of those surveyed in the sector forecast an increase in debtor risk, which is higher than the European average of 12 percent. High level of knowledge of European Late Payment Directive Over half of the respondents (53 percent) in this sector are familiar with the European Late Payment Directive. Knowledge of the Directive in this sector is notably higher than the European average, which is percent. AGRICULTURE, FORESTRY AND FISHING Share of respondents that rate the consequences of late s medium to high (3-5) days [ Agriculture, forestry and fishing days 38 Additional interest cost for your 2 Loss of income Would faster s from your debtors enable your to hire more? Liquidity squeeze 21 Threat to survival 38 Prohibiting growth of the Dismissing Not hiring new late s of your own customers? regarding goods and services 7 9 customers [ Agriculture, forestry and fishing Intentional Late Payment Highest debt loss among all business sectors The loss of total annual revenue in this sector was the highest of all the sectors in our survey. On average, 9.7 percent of total revenue for 2 was written off, which is significantly higher than the European average of 2.1 percent. Late causing the dismissal of Late appears to be more detrimental to the companies in this sector compared to the average business sector in Europe. In this sector, 55 percent report that late leads to employee the dismissal of. Among all the business sectors surveyed in Europe, on average percent respond in the same manner a significantly smaller proportion. Pressure to accept unreasonably long terms In this sector, more than eight out of ten (83 percent) say they have been asked to accept terms that are longer than they feel comfortable with. This figure is considerably higher than the already high European average of 61 percent. Faster would stimulate recruitment Nearly four out of five respondents (79 percent) in our survey say faster from debtors would enable the to hire more. This is significantly higher than the average European business, for which the equivalent figure is percent. Few companies use debt collection In this sector, six out of ten (6 percent) say they never hand over outstanding invoices to a debt collection agency. In Europe as a whole, on average 6 percent respond likewise; indicating that debt collection is less commonly used in this sector. MINING AND QUARRYING Share of respondents that rate the consequences of late s medium to high (3-5) Additional interest cost for your 38 Loss of income 6 2 Liquidity squeeze Threat to survival Prohibiting growth of the days [ Mining and quarrying Dismissing Not hiring new days 9 Would faster s from your debtors enable your to hire more? late s of your own customers? regarding goods and services customers [ Mining and quarrying 55 Intentional Late Payment 1 11

7 EPR Industry White Paper 2 EPR Industry White Paper 2 Accepting unreasonably long terms According to our study, more than seven out of ten (71 percent) of the companies surveyed in this sector have been asked to accept longer terms than they feel comfortable with. This figure is high compared to the European average of 61 percent. Furthermore, 68 percent of the respondents in this business sector have accepted unreasonably long terms. High level of knowledge regarding regulations The level of knowledge of national regulations regarding non- or late is higher in this sector than for the average business in Europe. In this sector, nearly three quarters (73 percent) say they are familiar with regulations concerning late or non-. As a comparison, the equivalent figure in Europe is just 57 percent. In addition, knowledge of the European Late Payment Directive is high in this sector. Almost three out of five (57 percent) in this sector are familiar with the Directive, which is higher than the European average of percent. difficulty Of the companies surveyed in this sector, 85 percent say one of the main reasons for late is that their customers are experiencing. This is higher than the European average of 66 percent. Faster would create job opportunities Nearly four out of ten respondents (38 percent) in this sector say faster from debtors would definitely or probably enable the to hire more. Compared to the European average of percent, this figure is high. Debtor risk on the decline A fifth (2 percent) of the companies surveyed in this sector forecast that debtor risk will decline over the next 12 months. In Europe as a whole, on average 13 percent of the companies surveyed respond likewise. ELECTRICITY, GAS, STEAM, WATER AND AIR CONDITIONING SUPPLY Share of respondents that rate the consequences of late s medium to high (3-5) [ Electricity, gas, steam, water and air conditioning supply days Lowest percentage of lost revenue among all sectors The lowest percentage of lost revenue is in the sector. On average, 1.8 percent of total revenue in 2 was written off in this sector. This is the lowest proportion of lost revenue among all the sectors that took part in our survey. The average figure in Europe is 2.1 percent. Low interest rates stimulating investment Among all the business sectors surveyed in Europe, on average just 13 percent have noted increased investment resulting from globally low interest rates. In this sector, nearly one quarter ( percent) of those surveyed say low interest rates have stimulated investment. Protection against poor performance This sector adopts measures to protect against poor performance to a greater extent than the average business sector in Europe. Debt collection, bank guarantees, factoring, credit insurance, credit checks and pre are more commonly used as precautions against poor performance compared to the European average. For instance, 62 percent say they use pre; a higher proportion than the European average of 5 percent. Few accept longer terms unconditionally Of the European companies that took part in our study, on average percent say their accepts longer terms unconditionally when a customer requests them. However, in the manufacturing sector, only about one in ten (11 percent) of the companies surveyed accept longer terms unconditionally. MANUFACTURING Share of respondents that rate the consequences of late s medium to high (3-5) days [ Additional interest cost for your Loss of income Liquidity squeeze Threat to survival Prohibiting growth of the Dismissing Not hiring new High level of knowledge of 2 European Late Payment Directive 28 3 Knowledge of the European Late 9 Payment Directive is higher in this 9 sector compared to the European days average. Nearly half of the days companies surveyed (8 percent) in the sector are familiar with the Directive. The equivalent figure for all the business sectors surveyed is percent. late s of late s of your own customers? your own customers? Would faster s from your debtors enable your to hire more? [ Electricity, gas, steam, water and air conditioning supply Additional interest cost for your Loss of income Would faster s from your debtors enable your to hire more? Liquidity squeeze Threat to survival Prohibiting growth of the 2 Dismissing 6 9 Not hiring new [ regarding goods and services customers Intentional Late Payment regarding goods and services customers Intentional Late Payment 12 13

8 EPR Industry White Paper 2 EPR Industry White Paper 2 Severe consequences of late The consequences of late are rated as severe in this sector. With regard to additional interest charges, liquidity squeeze, threat to survival, inhibiting growth, the dismissal of and recruitment capability; the consequences of late are rated as severe by a larger proportion of respondents in this sector compared to the average business sector in Europe. For instance, 38 percent say late leads to additional interest charges. In Europe, the equivalent figure is percent. Faster would create more jobs Almost a third ( percent) of the companies surveyed from the construction sector say faster from their debtors would enable them to hire more. The equivalent value in Europe as a whole is percent, indicating a greater impact of late in this sector compared to the average European business sector. Demand for new legislation to tackle issue of long terms More than four out of five (2 percent) in this sector would like to see new legislation introduced to address demands for terms that extend beyond those recommended by national practice or law. This is a higher percentage than the average in Europe, where 38 percent would like to see new legislation to tackle the issue. Loss of income The total annual revenue written off in the construction sector in 2 was 3.1 percent, which is higher than the equivalent figure for Europe as a whole of 2.1 percent. Pressure to accept unreasonably long terms Nearly two thirds (65 percent) of the companies in this business sector say they have been asked to accept terms that are longer than they feel comfortable with. The corresponding figure among all the business sectors surveyed is 61 percent. CONSTRUCTION Share of respondents that rate the consequences of late s medium to high (3-5) Additional interest cost for your Loss of income Liquidity squeeze Threat to survival Prohibiting growth of the days [ Dismissing Not hiring new days 37 Would faster s from your debtors enable your to hire more? late s of your own customers? [ regarding goods and services customers Intentional Late Payment 1 15

9 EPR Industry White Paper 2 EPR Industry White Paper 2 Experiencing late, particularly from the public sector This sector is affected by late, particularly from the public sector. According to the companies surveyed in this sector, consumers are usually punctual with their s. Corporates, however, are offered average terms of days, but do not pay until after 5 days. The public sector is on average eleven days late with their s to this sector. The public sector is offered average terms of 36 days, but it takes an average of 7 days before they pay to this sector. Increasing debtor risk More companies in this sector forecast that debtor risk will increase rather than decline over the coming 12 months. Among those surveyed in the sector, 15 percent forecast that debtor risk will increase in the next 12 months, which can be compared to 11 percent that expect the risk to decline. The proportion of respondents that expect risk to increase in this sector is also higher than the average in Europe of 12 percent. Protected against poor performance The sector uses precautions to protect their companies against poor performance to a greater extent than the average European business sector. The precautions more commonly used in this sector compared to the European average include bank guarantees, credit insurance, credit checks, pre, debt collection, and factoring. Pressure to accept unreasonably long terms Almost three quarters (73 percent) of those surveyed in the sector say they have been asked to accept longer terms than they feel comfortable with. Moreover, 68 percent say they have accepted unreasonably long terms. Globally low interest rates have boosted investment In the sector, globally low interest rates have affected businesses to a greater extent than the average sector in Europe. Almost one in five of the companies surveyed in the sector ( percent) say they have experienced increased investment as a result of low interest rates. WHOLESALE AND RETAIL TRADE Share of respondents that rate the consequences of late s medium to high (3-5) Additional interest cost for your days [ days Increased investment resulting from globally low interest rates In this sector, more than a quarter ( percent) of those surveyed have noticed increased investment as a result of low interest rates. The proportion of respondents that has noticed increased investment in this sector is more than twice the European average of 13 percent. Severe consequences of late With regard to additional interest charges, loss of income, liquidity squeeze, threat to survival, inhibiting growth, the dismissal of and recruitment capability, the consequences of late are rated higher by this sector compared to the average business sector in Europe. For instance, 1 percent of the companies surveyed in this sector say late leads to additional interest charges. In Europe, the equivalent figure is percent. TRANSPORT AND STORAGE Many familiar with regulations concerning late Half of the companies surveyed (5 percent) in the Transport and Service sector are familiar with the European Late Payment Directive. Among all the business 36 sectors in Europe, the average figure is percent, indicating greater familiarity days with the Directive in this sector compared to other sectors in Europe. In addition, a larger proportion of respondents in this sector are also familiar with national regulations regarding non- or 5 late. In this sector, more than 38 7 seven out of ten (71 percent) are familiar 36 with national regulations, which can be compared to the average figure in Europe days of 57 percent. Demand for EU legislation to address late from consumers In this business sector, 3 percent of those surveyed say they would benefit from EU regulations addressing late from consumers. The equivalent figure in Europe as a whole is percent, indicating a stronger need for regulations in this business sector compared to other sectors. National legislation required to tackle issue of long terms Almost half (7 percent) of the respondents in this sector say they would like to see the introduction of new legislation in order to address the problem of outstanding invoices paid after the due date. This is a considerably larger percentage in comparison to the average in Europe of 38 percent. Share of respondents that rate the consequences of late s medium to high (3-5) [ Transport and Storage Loss of income Would faster s from your debtors enable your to hire more? 6 6 Liquidity squeeze Threat to survival Prohibiting growth of the Dismissing Not hiring new late s of your own customers? regarding goods and services [ 6 9 customers Intentional Late Payment 1 8 Additional interest cost for your Loss of income Would faster s from your debtors enable your to hire more? 6 9 Liquidity squeeze Threat to survival Prohibiting growth of the Dismissing Not hiring new late s of your own customers? regarding goods and services [ Transport and Storage 6 9 customers 6 55 Intentional Late Payment

10 EPR Industry White Paper 2 EPR Industry White Paper 2 Demand for new legislation There is a demand from this sector to introduce new legislation in order to tackle the issue of late and customers demanding terms that extend beyond those recommended by national practice or law. Almost half (9 percent) of those surveyed in this sector would like new legislation to tackle the issue of late, which is a higher percentage than the European average of 2 percent. Among those surveyed in this sector, 5 percent would like to see new legislation to address demands for longer terms. The corresponding European figure is 38 percent. High percentage of lost revenue The total annual revenue written off in this sector in 2 was considerably higher compared to the average business sector in Europe. In this sector, on average 3.9 percent of total revenue in 2 was written off, compared to the average value of 2.1 percent in Europe. Consequences of late considered severe With regard to additional interest charges, loss of income, liquidity squeeze, threat to survival, inhibiting growth, the dismissal of and recruitment capability, the consequences of late are rated higher by this sector compared to the average business sector in Europe. As an example, more than half (5 percent) of the companies surveyed in this sector rate the consequences of late as medium to high with regard to loss of income. Compared to the equivalent figure in Europe of percent, this is high. Few hand over outstanding invoices to a collection agency Half of the companies surveyed (5 percent) in this sector say they never hand over their outstanding invoices to a collection agency. This is a higher figure compared to the average in Europe of 6 percent. Declining debtor risk In this sector, almost one in five ( percent) see debtor risk declining over the next 12 months. Among all the business sectors surveyed in Europe, on average just 13 percent forecast declining debtor risk over the next 12 months. ACCOMMODATION AND FOOD SERVICE ACTIVITIES Share of respondents that rate the consequences of late s medium to high (3-5) [ Accommodation and Food Service Unreasonably long terms much in demand More than seven out of ten (71 percent) of the respondents in the sector have been asked to accept longer terms than they feel comfortable with. In addition, 68 percent have also accepted longer terms than they feel comfortable with. These figures are considerably higher compared to the average business sector in Europe. INFORMATION AND COMMUNICATION main cause of late There are several reasons why 2 2 customers pay late. In this sector, two thirds of the companies surveyed Additional Loss of Liquidity Threat to Prohibiting Dismissing Not hiring (66 percent) cite intentional late Additional Loss of Liquidity Threat to Prohibiting Dismissing Not hiring interest income squeeze survival growth new interest income squeeze survival growth new cost for of the as one of the main causes of cost for of the your late by customers. Not only your is this figure considerably higher than the European average of 55 percent, intentional late is also listed as the main cause of late, according to the companies surveyed in this sector. Highly protected against poor performance 2 28 It is more common in this sector to use measures to protect against bad compared to the average days business sector in Europe. Debt days collection, factoring, credit checks, bank guarantees and credit insurance are more commonly used by this sector than the average in Europe. For instance, more than one in 3 three ( percent) of the companies surveyed in this sector use debt 37 collection; a considerably higher days proportion compared to the average days value in Europe of percent. Would faster s from your debtors enable your to hire more? late s of your own customers? [ Accommodation and Food Service 2 regarding goods and services 51 9 customers Intentional Late Payment Faster would create more jobs One third ( percent) of those surveyed in this sector say faster from debtors would definitely or probably enable their companies to hire more. This is higher than the average European figure of percent. Fewer delays noted due to European Late Payment Directive Since the European Late Payment Directive was implemented, this sector has noted a positive impact to a greater extent compared to the average in Europe. More than one in five companies that took our survey (22 percent) have noted fewer delays as a result of the Directive. This is a higher figure than the European average of percent. Share of respondents that rate the consequences of late s medium to high (3-5) 22 Would faster s from your debtors enable your to hire more? 8 1 [ late s of your own customers? regarding goods and services [ 6 9 customers Intentional Late Payment

11 EPR Industry White Paper 2 EPR Industry White Paper 2 High percentage of lost revenue A relatively high share of the total annual revenue for 2 was written off in this sector, compared to the average European business sector. On average, 3.5 percent of total annual revenue for 2 was written off in this sector. The equivalent figure in Europe as a whole is 2.1 percent. FINANCIAL AND INSURANCE ACTIVITIES Share of respondents that rate the consequences of late s medium to high (3-5) High level of knowledge of European Late Payment Directive but negligible impact Among those surveyed in this business sector, almost half of the respondents (9 percent) are familiar with the European Late Payment Directive. This is a higher figure compared to the European average of percent. Despite the relatively high level of knowledge of the Directive, only percent of the companies surveyed say they have noted a positive impact as a result of the Directive, which is a lower percentage compared to the average in Europe Additional interest cost for your 2 Loss of income 36 2 Liquidity squeeze Threat to survival Prohibiting growth of the [ Insurance 21 Dismissing 28 Not hiring new Demand for new European legislation The European Late Payment Directive concerns late from the public sector and in transactions between companies, but not late from consumers. Almost half (7 percent) of those surveyed in the sector say their business would benefit from EU regulations addressing late by consumers. Among all the business sectors in Europe, on average only percent say they would benefit from such regulations. Late handover of outstanding invoices In this sector, close to half (8 percent) of the surveyed companies hand over their outstanding invoices to a debt collection agency. This share is high compared to the European average of 39 percent. On average, this sector passes outstanding invoices on to a collection agency 86 days after the due date. This is longer than the European average of 81 days. On average, this sector passes outstanding invoices on to a collection agency 86 days after the due date. This is longer than the European average of 81 days. Increased investment due to low interest rates This sector has noted increased investment resulting from globally low interest rates to a greater extent than the average business sector in Europe. More than one in five (21 percent) in this sector have noticed increased investment, which can be compared to the European average of 13 percent days days Would faster s from your debtors enable your to hire more? late s of your own customers? regarding goods and services customers [ Insurance 5 55 Intentional Late Payment 2 21

12 EPR Industry White Paper 2 Low usage of debt collection Among the companies surveyed in this sector, 51 percent say they never hand over outstanding invoices to a collection agency. Compared to the average business sector in Europe, this sector has a higher proportion of respondents saying that they never hand over outstanding invoices to a collection agency. Moreover, debt collection is used less as a precaution against poor performance in this sector compared to the European average. Consequences of late rated severe The consequences of late are rated as being more severe by companies working in this sector compared to the average business sector in Europe. The consequences of late are rated as high with regard to additional interest charges, loss of income, liquidity squeeze, threat to survival, inhibiting growth, the dismissal of and recruitment capability. For instance, 5 percent of the companies surveyed in this sector rate the consequences of late as medium to high with regard to loss of income, which is higher than the European average of percent. Substantial loss of income The total annual revenue written off in this sector in 2 was high compared to the average business sector in Europe. In this sector, on average 3.7 percent of total annual revenue for 2 was written off, which can be compared to the European average of 2.1 percent. Faster would create job opportunities As many as 39 percent of the respondents in this sector say faster from their debtors would definitely or probably enable them to hire more. The equivalent figure in Europe as a whole is percent, showing that the figure for this sector is considerably higher than the average sector in Europe. Increasing debtor risk When asked about the level of debtor risk and forecasts for the next 12 months, 15 percent say they see an increasing risk. As many (15 percent) say they see the risk declining over the coming 12 months. These figures are higher compared to the average business sector in Europe. REAL ESTATE ACTIVITIES Share of respondents that rate the consequences of late s medium to high (3-5) days days Additional interest cost for your 5 Loss of income Would faster s from your debtors enable your to hire more? Liquidity squeeze 37 Threat to survival 38 Prohibiting growth of the 3 [ Real Estate Dismissing Not hiring new late s of your own customers? regarding goods and services [ Real Estate 51 9 customers 55 Intentional Late Payment High level of knowledge of regulations Half of the companies surveyed in this sector (5 percent) are familiar with the European Late Payment Directive. Familiarity with the Directive is thus higher in this sector compared to the average business sector in Europe, where the figure is percent. Two thirds of those surveyed (66 percent) are also familiar with national regulations regarding non- or late ; a considerably higher figure than the average in Europe of 57 percent. High usage of precautions against poor performance This sector uses credit checks, debt collection and factoring as precautions against poor performance to a greater extent than the average business sector in Europe. In particular, debt collection is used to a greater extent in this sector than in other sectors in Europe. More than one in three ( percent) of those surveyed in this sector use debt collection. This can be compared to the equivalent figure in Europe of percent. Late handover of outstanding invoices On average, outstanding invoices are handed over to a collection agency 95 days after the due date, which is two weeks later than the average business sector in Europe. Offering plans In this business sector, 37 percent say offering plans is the primary measure taken when customers ask for longer terms. This is a higher figure compared to the average in Europe of percent. main cause of late According to those surveyed in this sector, the main cause of late is intentionally late from customers. 57 percent of the respondents say intentionally late is the main cause of late. This figure is somewhat above the corresponding figure in Europe of 55 percent. PROFESSIONAL, SCIENTIFIC, TECHNICAL, ADMINISTRATION AND SUPPORT SERVICE ACTIVITIES Share of respondents that rate the consequences of late s medium to high (3-5) Additional interest cost for your 1 Loss of income 2 Liquidity squeeze Threat to survival Prohibiting growth of the days [ Support Service Dismissing Not hiring new days Would faster s from your debtors enable your to hire more? late s of your own customers? regarding goods and services 55 9 customers [ Support Service Intentional Late Payment 22

13 Precautions against poor performance routinely used In this sector, bank guarantees and in particular debt collection are more commonly used as precautions against poor performance compared to other sectors in Europe. As many as 5 percent of those surveyed in this sector say they use debt collection to prevent poor performance, which can be compared to the average value in Europe of percent. Late handover of outstanding invoices On average, outstanding invoices are handed over to a collection agency 1 days after the due date. This is 37 days later than the average business sector in Europe. Late has low impact The consequences of late are rated lower in this sector compared to the average in Europe with regard to additional interest charges, liquidity squeeze, threat to survival, inhibiting growth and recruitment capability. Eight out of ten (8 percent) of those surveyed in this sector say late has a low impact in terms of the survival of the. In Europe, the equivalent figure is 73 percent. Financial main cause of late Nearly four out of five (78 percent) of those surveyed in this sector say the main cause of late from customers is. Among the business sectors in Europe, on average only 66 percent cite as the main cause of late. Positive impact of European Late Payment Directive noted A quarter of those surveyed in this sector ( percent) have noted fewer delays as a result of the implementation of the European Late Payment Directive. This is a higher figure compared to the average in Europe of percent. PUBLIC ADMINISTRATION, DEFENSE, EDUCATION, HUMAN HEALTH AND SOCIAL WORK ACTIVITIES Share of respondents that rate the consequences of late s medium to high (3-5) Additional interest cost for your 36 Loss of income Liquidity squeeze Threat to survival Prohibiting growth of the Dismissing days Not hiring new days Would faster s from your debtors enable your to hire more? late s of your own customers? [ Public Administration, Defense, Education, Human Health and Social Work 2 [ Public Administration, Defense, Education, Human Health and Social Work PAN- EUROPEAN COUNTRY ANALYSIS Key findings regarding goods and services customers Intentional Late Payment

14 AUSTRIA EPR Industry White Paper 2 EPR Industry White Paper 2 AUSTRIA Transport and storage Transport and storage days days Would faster s from your debtors enable your to hire more? Transport and Storage Low percentage of lost revenue In this sector, on average 1.5 percent of the total annual revenue from 2 was written off as lost revenue. This figure is low in comparison to the average figure for all the sectors surveyed in Europe, which was 2.1 percent for 2. Handing over outstanding invoices More than six respondents out of ten (62 percent) say their forwards outstanding invoices to a collection agency several days after their due date. Invoices are handed over 9 days after their due date, which is later than the average in Europe of 81 days. Late has low impact The companies surveyed in this sector rate the impact of late as being significantly lower than the average among all the sectors surveyed in Europe. For instance, 97 percent of those surveyed in the sector rate the impact of late as low with regard to inhibiting growth. This figure is significantly higher compared to the European average, with 67 percent responding likewise. Late has low impact The consequences of late are rated lower by the companies in this sector compared to the average in Europe. For instance, more than nine out of ten surveyed (92 percent) say that late has no impact with regard to recruitment capability with regard to recruitment capability. For Europe as a whole, the figure is on average 51 percent. Poor knowledge of regulations regarding late In this sector, knowledge of European and national regulations regarding late is poor. About one in ten (11 percent) of the companies surveyed in this sector are familiar with the European Late Payment Directive; considerably less than the European average of percent. In addition, less than one quarter ( percent) of those surveyed in this sector are familiar with national regulations. The equivalent figure in Europe is 57 percent. Less usage of precautions against bad In general, the use of protective measures against poor performance is lower in this sector compared to the average business sector in Europe. Bank guarantees, credit insurance, pre, debt collection and factoring are used to a lesser extent than the European average. On the other hand, credit checks are more commonly used in this sector than in the average European sector. In this sector, 5 percent of the companies surveyed use this method, while the European average is 3 percent. perceived main cause of late The perceived main cause of late in this sector is intentional late from customers. More than eight out of ten surveyed (82 percent) cite intentional late as the main cause of late. This figure is considerably higher than the average in Europe, which is 55 percent. Loss of income The proportion of lost revenue is higher in this sector compared to the average in Europe. For the year 2, on average 2.9 percent of total annual revenue was written off in this sector. The equivalent figure in Europe is 2.1 percent. Pressure to accept unreasonably long terms More than nine out of ten (91 percent) of the companies surveyed in this sector say they have been asked to accept longer terms than they feel comfortable with. This share is significantly higher than the European average of 61 percent Transport and Storage [ [ [ Transport and storage [ Increased investments change in investments [ Decreased investments Transport and storage Transport and Storage

15 BELGIUM EPR Industry White Paper 2 EPR Industry White Paper 2 BELGIUM Professional, Scientific,Technical, Administration and Support Service days Professional, Scientific,Technical, Administration and Support Service days Would faster s from your debtors enable your to hire more? Not handing over outstanding invoices Forwarding outstanding invoices to a collection agency is not as common in this sector as it is in the average European business sector. More than half (55 percent) of those surveyed in this sector say they never hand over outstanding invoices to a collection agency. For Europe as a whole, the figure is on average 6 percent. Inadequate protection against poor performance The use of bank guarantees, factoring, debt collection, pre, credit checks and credit insurance is less common in this sector than in the average business sector in Europe. For instance, only 8 percent of the respondents in this sector use credit checks. The equivalent figure in Europe is 3 percent. High percentage of lost revenue The proportion of lost revenue is high in this sector compared to the average in Europe. The companies in this sector told us that on average 3.2 percent of their total annual revenue for 2 was written off as lost revenue. This is high in comparison to the European average of 2.1 percent. Late has low impact Companies in this sector give the impact of late a lower rating than the average business sector in Europe. For instance, more than nine respondents out of ten (93 percent) give the impact of late a low rating with regard to the dismissal of. That is higher than the European average of 81 percent. Handing over outstanding invoices In this sector, it is common practice to hand over outstanding invoices to a collection agency. More than half (55 percent) of those surveyed in this sector say they hand over outstanding invoices to a collection agency. Among all the business sectors surveyed in Europe, the average figure is 39 percent. Increased investment due to low interest rates Many companies in this sector have noticed increased investment as a result of globally low interest rates. Almost two respondents out of ten ( percent) say they have noticed increased investment due to low interest rates. This is higher than the average in Europe of 13 percent. Support Service Late Late is a common issue in this sector. Consumers are on average six days late with their s to the companies in this sector. Companies are on average 11 days late. The longest delays to the businesses in this sector are from the public sector, which pays days late on average. Few companies hand over their outstanding invoices Compared to the average business sector in Europe, few companies in this sector hand over their outstanding invoices to a debt collection agency. Six out of ten (6 percent) of the companies surveyed say they never hand over their outstanding invoices. In Europe, the corresponding figure is 6 percent. Demand for new legislation to address issue of late More than half (56 percent) of the companies surveyed in this sector would like to see new legislation being introduced to tackle the problem of late. In Europe, on average 2 percent of all the companies surveyed feel the same Support Service [ [ [ Support Service [ Increased investments change in investments [ Decreased investments Professional, Scientific,Technical, Administration and Support Service Support Service 28

16 CZECH REPUBLIC EPR Industry White Paper 2 EPR Industry White Paper 2 CZECH REPUBLIC days days Would faster s from your debtors enable your to hire more? Well protected against poor performance This sector uses precautions to protect itself against poor performance to a greater extent than the average sector in Europe. Pre and debt collection are the most commonly used methods in this sector. Almost six out of ten (59 percent) say they use pre, while more than a third ( percent) say they use debt collection. On average in Europe, 5 percent use pre and percent use debt collection. Debtor risk expected to remain stable In this sector, more than eight out of ten respondents (81 percent) forecast that their debtors will remain stable over the coming 12 months. Among all the sectors surveyed in Europe, on average 76 percent respond likewise. Low percentage of lost revenue The proportion of lost revenue in this sector is significantly lower than in the average European business sector. The respondents in this sector say that on average.3 percent of total annual revenue for 2 was written off as lost revenue. The European average is 2.1 percent. Late hampers growth Late has severe consequences for the companies in this business sector, particularly with regard to inhibiting growth. As many as 56 percent say late hampers growth; a much higher figure than the European average of percent. Faster will create new jobs Almost a third ( percent) of the companies surveyed in this sector say faster from debtors would enable their to hire more. This is high in comparison to the European average of percent. Pressure to accept longer terms Almost nine out of ten (88 percent) of the companies in this sector have been asked to accept longer terms than they feel comfortable with. This is considerably higher than the European average of 61 percent. Few companies use debt collection agencies In this sector, less than two out of ten companies ( percent) hand over outstanding invoices to a debt collection agency. This is less than half the European average (39 percent). difficulty Late in this sector mainly stems from challenges experienced by debtors. Almost three quarters (73 percent) of the companies surveyed in this sector say one of the main causes of late is that their debtors are in difficulty. This is higher than the European average of 66 percent. Demand for new legislation The respondents in this sector are positive toward the introduction of new legislation to address the issue of long terms and late. Among the companies surveyed in this sector, 3 percent say they would like to see the introduction of new legislation to tackle demands for terms that extend beyond those recommended by national practice. The corresponding figure in Europe is 38 percent. In addition, more than half (55 percent) of the companies surveyed in the sector would like to see the introduction of new legislation to address the problem of late, which is higher than the European average of 2 percent [ [ [ [ Increased investments change in investments [ Decreased investments

17 DENMARK EPR Industry White Paper 2 EPR Industry White Paper 2 DENMARK Electricity, Gas, Steam, Water and Air Conditioning supply Insurance days 2 Electricity, Gas, Steam, Water and Air Conditioning supply Insurance days Would faster s from your debtors enable your to hire more? Electricity, Gas, Steam, Water and Air Conditioning supply Late has low impact The consequences of late are rated significantly lower in this sector compared to the average business sector in Europe. For instance, almost nine out of ten (89 percent) say late has no impact on their with regard to loss of income. The equivalent figure in Europe is 28 percent. Offering plans In this sector, as many as 85 percent say the primary measure taken when a customer asks for longer terms is to offer plans. This figure is considerably higher than the European average of percent. Using pre as protection Pre is commonly used in this sector as a precaution against bad. More than half (53 percent) say they use pre as a precaution to protect themselves against poor performance. In Europe as a whole, on average 5 percent use pre as a precaution. Low percentage of lost revenue In this sector, the proportion of lost revenue is significantly lower than the average in Europe. On average, only.3 percent of total annual revenue for 2 was written off. This can be compared to the average European figure of 2.1 percent. Debtor risk forecast to remain stable More than nine out of ten (9 percent) of the companies surveyed in this sector forecast that their debtors will remain stable over the next 12 months. This is a larger percentage compared to the equivalent figure in Europe of 76 percent. Few familiar with European Late Payment Directive Among those surveyed in this sector, only 5 percent say they are familiar with the European Late Payment Directive. On average in Europe, percent are familiar with the Directive. Insurance Late has low impact The respondents in this sector rate the consequences of late significantly lower than the average European business sector. Among those surveyed in this sector, 97 percent say late has a low impact on their with regard to liquidity squeeze. Handing over outstanding invoices It is more common in this sector to hand over outstanding invoices to a collection agency compared to the European average. Almost three quarters (72 percent) say outstanding invoices are forwarded to a collection agency several days after the invoice due date. On average, outstanding invoices are handed over 5 days after their due date, which is considerably earlier compared to the average in Europe of 81 days. Low percentage of lost revenue The proportion of lost revenue in this sector is low compared to the European average. On average,.5 percent of total annual revenue for 2 was written off, which can be compared to the European average of 2.1 percent. Electricity, Gas, Steam, Water and Air Conditioning supply [ Electricity, Gas, Steam, Water and Air Conditioning supply [ [ Insurance Insurance [ Increased investments change in investments [ Decreased investments Electricity, Gas, Steam, Water and Air Conditioning supply Insurance 6 Electricity, Gas, Steam, Water and Air Conditioning supply Insurance

18 ESTONIA EPR Industry White Paper 2 EPR Industry White Paper 2 ESTONIA Insurance and Support Service days Insurance and Support Service days Would faster s from your debtors enable your to hire more? Delays in handing over outstanding invoices In this sector, it is more common to hand over outstanding invoices to a debt collection agency compared to the average European business sector. Almost three quarters (73 percent) of the companies surveyed in this sector say they forward outstanding invoices to a collection agency. The equivalent figure in Europe is 39 percent. It takes on average 1 days after the invoice s due date before it is handed over to a debt collection agency, which is much later than the average in Europe of 81 days. Declining debtor risk More than a quarter ( percent) of the companies surveyed in this sector see debtor risk declining over the coming 12 months. This is more than twice the European average of 13 percent. Pressure to accept unreasonably long terms More than nine out of ten (93 percent) say they have been asked to accept terms that are longer than they feel comfortable with. The equivalent figure in Europe as a whole is 61 percent. In addition, as many as 87 percent of those surveyed in this sector have also accepted unreasonably long terms. Insurance Knowledge of regulations concerning late and non- More than nine out of ten (93 percent) of the companies surveyed in this sector are familiar with national legislation concerning late or non-. This is considerably higher than the European average of 57 percent. However, knowledge of the European Late Payment Directive is way below the European average. In this sector, 1 percent say they are familiar with the European Late Payment Directive. The average figure in Europe is percent. Protection against poor performance Credit checks and debt collection are more commonly used in this sector compared to the average in Europe. For instance, half (5 percent) of the companies surveyed say they use debt collection as protection against poor performance. This is more than twice the European average of percent. Low percentage of lost revenue In this sector, on average 1.5 percent of total annual revenue for 2 was written off as lost revenue. This is a lower proportion than the European average of 2.1 percent. and Support Service Late has low impact With regard to additional interest charges, liquidity squeeze, threat to survival of the, inhibiting growth, impact on recruitment capability and the dismissal of, the impact of late is rated lower by this sector than the average European business sector. For instance, 9 percent of the companies surveyed in this sector say late has a low impact on their ability to hire new, which can be compared to the European average of 75 percent. inefficiency among customers main cause of late Three quarters (75 percent) of the companies surveyed in this sector cite administrative inefficiency as the main cause of late, making this the most commonly identified cause of late in this sector. This figure is high in comparison to the European average of 9 percent. Unconditional acceptance of longer terms In this sector, the most common way of dealing with requests for longer terms is to unconditionally accept longer terms. A quarter ( percent) of the companies surveyed in this sector say this is the primary measure taken. The equivalent figure in Europe as a whole is percent Insurance [ [ Insurance [ Support Service Support Service [ Increased investments change in investments [ Decreased investments Insurance Professional, Scientific, Technical, Administration and Support Service Insurance Support Service

19 FINLAND EPR Industry White Paper 2 EPR Industry White Paper 2 FINLAND Real Estate Public Administration, Defense, Education, Human Health and Social Work days Real Estate Public Administration, Defense, Education, Human Health and Social Work days Would faster s from your debtors enable your to hire more? main cause of late Three quarters (75 percent) of the companies surveyed in this sector perceive intentionally late to be the main cause of late. This is high compared to the average figure in Europe of 55 percent. Well protected against poor performance Bank guarantees, credit insurance, credit checks, pre, debt collection and factoring are used to a much greater extent in this sector compared to the average in Europe. More than three quarters (77 percent) use pre as a protective measure against poor performance, which can be compared to the European average of 5 percent. Two thirds (66 percent) use debt collection, which is more than twice the European average of percent. Low percentage of lost revenue The respondents in this sector say that on average.7 percent of their total annual revenue for 2 was written off as lost revenue. This is low compared to the European average of 2.1 percent. Real Estate Handing over outstanding invoices It is more common in this sector to pass outstanding invoices on to a collection agency compared to the average in Europe. Of the companies surveyed in this sector, 65 percent say outstanding invoices are handed over to a collection agency within a number of days of the invoice s due date. On average, outstanding invoices are handed over 1 days after their due date, which is significantly earlier than the average in Europe of 81 days. Low percentage of lost revenue On average, 1 percent of the total annual revenue from 2 was written off in this sector. This is a lower proportion compared to the European average of 2.1 percent. Knowledge of regulations There is little knowledge of the European Late Payment Directive in this sector. Only 15 percent of those surveyed say they are familiar with the Directive, which can be compared to the European average of percent. Knowledge of national legislation regarding late and non-, on the other hand, is considerably higher among those surveyed in this sector. Almost seven out of ten (69 percent) of the companies surveyed say they are familiar with national legislation; a larger percentage compared to the average in Europe of 57 percent. Public administration, defense, education, human health and social work Late has low impact The impact of late is rated as very low by the respondents in this sector. For instance, almost three quarters (7 percent) of the companies surveyed in this sector say late has no impact in terms of additional interest charges. The equivalent figure for the average European business sector is 1 percent. Many companies use debt collection Debt collection is the most commonly used precaution against poor performance, according to the companies surveyed in this sector. More than seven out of ten (71 percent) say they use debt collection, which is significantly higher than the European average of percent. Offering plans In this sector, the primary measure taken when a customer asks for longer terms is to offer plans. As many as two thirds (66 percent) say offering plans is the primary measure, which is a considerably higher figure compared to the average in Europe of percent. Real Estate [ [ Real Estate [ Public Administration, Defense, Education, Human Health and Social Work Public Administration, Defense, Education, Human Health and Social Work [ Increased investments change in investments [ Decreased investments Real Estate Public Administration, Defense, Education, Human Health and Social Work Real Estate Public Administration, Defense, Education, Human Health and Social Work 36 37

20 FRANCE EPR Industry White Paper 2 EPR Industry White Paper 2 FRANCE Insurance and Support Service days Insurance and Support Service days Would faster s from your debtors enable your to hire more? Increased investment due to low interest rates This sector has noticed increased investment due to globally low interest rates. In this sector, more than a fifth (22 percent) say they have noticed increased investment resulting from low interest rates. In Europe, the equivalent figure is 13 percent. Late has low impact This sector rates the impact of late as low compared to the average business sector in Europe. For instance, more than nine out of ten (91 percent) of the companies surveyed in the sector say late has a low impact on their ability to hire new. Among all the business sectors surveyed in Europe, on average 75 percent respond likewise. Handing over outstanding invoices More than eight out of ten (82 percent) of the companies in this sector that took part in our study say they pass outstanding invoices on to a debt collection agency. This figure is more than twice the average figure for Europe of 39 percent. Insurance Voluntary initiatives from corporations to address issue of late and long terms More than half (55 percent) of the companies surveyed in this sector say they would like to see voluntary initiatives from corporations to address the issue of long terms and late. This is high compared to the average in Europe of 3 percent. Many use debt collection as a precaution Debt collection is more commonly used as a precaution in this sector compared to the average in Europe. Six out of ten (6 percent) of the companies surveyed say they use debt collection as a precaution to protect their against poor performance. This is more than twice the average in Europe, where percent say they use debt collection. Declining debtor risk In this sector, two companies out of ten (2 percent) anticipate a decline in debtor risk over the next 12 months. In Europe as a whole, on average 13 percent respond in the same manner. Support Service High level of knowledge of European Late Payment Directive Companies in this sector have a good knowledge of the European Late Payment Directive. More than seven out of ten (71 percent) say they are familiar with the Directive. This is more than twice the European average of percent. Moreover, almost a third (3 percent) say they have noted a positive impact as a result of the Directive in terms of fewer delays. This is considerably higher than the European average of percent. Low percentage of lost revenue The proportion of lost revenue in this sector is low in comparison to the European average. The companies surveyed in this sector say that on average, 1. percent of total annual revenue for 2 was written off as lost revenue, which can be compared to the European average of 2.1 percent. perceived as the main cause of late In this sector, the perceived main cause of late by customers is intentional late. Three quarters (75 percent) cite intentional late as one of the main causes of late. In Europe as a whole, on average 55 percent list intentional late as one of the main causes of late Insurance [ [ Insurance [ Support Service Support Service [ Increased investments change in investments [ Decreased investments Wholesale and Retail trade Insurance 75 and Support Service 6 Insurance Support Service 38 39

21 GERMANY EPR Industry White Paper 2 EPR Industry White Paper 2 GERMANY Insurance 2 2 Insurance days days Would faster s from your debtors enable your to hire more? Laws and regulations hinder successful enterprise More than seven out of ten (71 percent) in this sector say laws and regulations make it more difficult to run a successful. On average, 61 percent agree with this in Europe as a whole. Low percentage of lost revenue The proportion of lost revenue is low in this sector compared to Europe. On average, 1. percent of total annual revenue for 2 was written off as lost revenue in this sector. The corresponding figure in Europe is 2.1 percent. Using debt collection agencies This sector routinely forwards its outstanding invoices to debt collection agencies. Almost seven out of ten (69 percent) say they hand over their outstanding invoices to a collection agency. This is high compared to the European average of 39 percent. Furthermore, invoices are handed over quickly from this sector. On average, outstanding invoices are handed over 51 days after the due date. In Europe as a whole, the average time taken is 81 days. High use of protective measures against poor performance The proportion of companies using precautions to protect themselves against poor is higher in this sector compared to the average in Europe. The most commonly used precautions in this sector are credit checks and debt collection. Debt collection in particular is used to a higher extent by this sector compared to the average in Europe. More than half (52 percent) use debt collection, which can be compared to the European average of percent. Late has low impact With regard to additional interest charges, loss of income, liquidity squeeze, threat to survival, inhibiting growth and recruitment capability, the impact of late is rated lower in this sector compared to the average in Europe. For instance, more than half (52 percent) say late has no impact with regard to threat to survival, which is higher than the European average of 5 percent. Increasing debtor risk forecast Among the companies surveyed in this sector, almost a quarter ( percent) forecast increasing debtor risk over the next 12 months. This is twice the European average of 12 percent. Insurance Pressure to accept unreasonably long terms Almost three quarters (73 percent) of the companies surveyed in this sector say they have been asked to accept longer terms than they feel comfortable with. The average figure for all the sectors surveyed is 61 percent. In addition, 65 percent of the respondents in this sector say they have also accepted longer terms than they feel comfortable with. Increased investment due to low interest rates The proportion of respondents who have noticed increased investment due to low interest rates is higher in this sector compared to the average in Europe. Almost a quarter ( percent) of the respondents in this sector have noticed increased investment due to low interest rates, which is higher than the average in Europe of 13 percent. Precautions against bad Bank guarantees, credit checks, debt collection, factoring, credit insurance are more commonly used in this sector compared to the average in Europe. The most commonly used precaution is credit checks; 73 percent of the businesses surveyed in this sector say they use this method. [ [ [ Insurance Insurance [ Increased investments change in investments [ Decreased investments Insurance 15 Insurance 1

22 HUNGARY EPR Industry White Paper 2 EPR Industry White Paper 2 HUNGARY Transport and Storage Transport and Storage days days Would faster s from your debtors enable your to hire more? Few take precautions against poor performance This sector is less protected against poor performance compared to the average European business sector. In this sector, almost six out of ten (58 percent) of the companies surveyed do not use any of the most common precautions to protect their companies against poor performance. This is almost twice the average European figure of 3 percent. Late inhibiting growth On average, a third ( percent) of the companies surveyed in Europe say late inhibits the growth of their. In this sector, as many as 58 percent of the companies surveyed say late holds back their growth a significantly higher share than the European average. Faster would mean more jobs More than half (55 percent) of the companies in this sector say faster from debtors would enable them to hire more. This is more than twice the European average figure of percent. European Late Payment Directive well known but ineffective Companies in this sector have a good knowledge of the European Late Payment Directive. More than half (51 percent) of the companies in this sector are familiar with the Directive. Awareness in this sector is higher than the average figure for Europe of percent. While this is good news, the Directive does not seem to be delivering. Less than one in ten respondents (7 percent) has noted a positive impact as a result of the Directive, which is lower than the average in Europe of percent. Few companies use debt collection agencies It is less common in this sector than in the average European business sector to hand over outstanding invoices to a debt collection agency. Among the companies surveyed in this sector, 57 percent say they never pass outstanding invoices on to a collection agency. In Europe as a whole, 6 percent respond likewise. Declining debtor risk When asked about how the companies in this sector view their debtors situation over the coming 12 months, 22 percent say they anticipate a declining risk. The European average is 13 percent, indicating a positive outlook in this sector. Transportation and Storage Common to accept longer terms unconditionally When a customer asks for longer terms, the primary measure taken in this sector is to accept longer terms unconditionally. On average, 3 percent of the companies surveyed in this sector say this is the primary measure taken. This is significantly higher than the European average of percent. Debtor main cause of late Among the companies surveyed in this sector, almost three quarters (7 percent) say the main cause of late is that their customers are in difficulty. In Europe as a whole, on average 66 percent respond in the same way. Increased investment due to low interest rates More than a fifth (22 percent) of the companies surveyed in this sector state that low interest rates have stimulated investment. This is high in comparison to the European average of 13 percent Transport and Storage [ [ retail trade [ Transport and storage [ Increased investments change in investments [ Decreased investments Transport and Storage Transport and Storage 2 3

23 IRELAND EPR Industry White Paper 2 EPR Industry White Paper 2 IRELAND Real Estate and Support Service Real Estate and Support Service days days Would faster s from your debtors enable your to hire more? Withstanding pressure to offer longer terms Almost three quarters (73 percent) of the companies surveyed in this sector say they have been asked to accept unreasonably long terms. This is a higher figure than the already high European average of 61 percent. However, terms are not negotiated as much in this sector compared to the average business sector in Europe. More than a quarter ( percent) say they do not negotiate terms, which is high compared to the equivalent European figure of percent. Faster would generate more jobs In this sector, almost two thirds (6 percent) say faster from debtors would enable their to hire more. This figure is significantly higher than the European average of percent. Increasing debtor risk More than a quarter ( percent) of the companies surveyed in this sector forecast an increase in debtor risk over the next 12 months. This is more than twice the European average of 12 percent. Real Estate Activities Using precautions against poor performance, but not debt collection Factoring, pre, credit checks, credit insurance and bank guarantees are more commonly used in this sector than in the average European business sector. Debt collection, on the other hand, is used to a lesser extent than in the average European business sector. In this sector, only 8 percent of the companies surveyed use debt collection, which is considerably lower than the European average of percent. Increasing debtor risk When asked about how the companies in this sector view their debtors situation over the coming 12 months, more than a quarter ( percent) forecast an increase in risk. This is more than twice the European average of 12 percent. Late poses threat to companies survival The results of our survey show that late has a severe impact on the companies in this sector. Among those surveyed in this sector, 67 percent say late poses a threat to the survival of their. In Europe as a whole, a significantly smaller percentage ( percent) responds in the same manner. Support Service Many familiar with regulations concerning late or non- In this sector, many are familiar with European as well as national legislation concerning late or non-. More than two thirds (67 percent) of the companies surveyed in this sector are familiar with the European Late Payment Directive. The same percentage (67 percent) say they are familiar with national legislation. In Europe, on average percent are familiar with the Directive and 57 percent are familiar with national legislation. Demand for new legislation Six out of ten (6 percent) of the companies surveyed say they would like to see new legislation to address demands for terms that extend beyond those recommended by national practice. In Europe, on average 38 percent respond in this manner. Moreover, 57 percent in this sector would also like to see new legislation in order to tackle the issue of late ; a higher figure than the European average of 2 percent. Few companies use debt collection agencies Debt collection is used to a lesser extent in this sector compared to the average sector in Europe. Only a fifth (2 percent) say they use debt collection as protection against poor performance. The average figure for Europe as a whole is percent Real Estate [ communication [ Real estate [ Support Service Real Estate Support Service [ Increased investments change in investments [ Decreased investments Real Estate Support Service Professional, Scientific, Technical, Administration and Support Service 5

24 ITALY EPR Industry White Paper 2 EPR Industry White Paper 2 ITALY Electricity, Gas, Steam, Water and Air conditioning supply Electricity, Gas, Steam, Water and Air conditioning supply days days Would faster s from your debtors enable your to hire more? Electricity, Gas, Steam, Water and Air Conditioning Supply Low use of precautions against poor performance The usage of precautions against poor performance is less common in this industry compared to the average European sector. This sector uses bank guarantees, credit checks, debt collection and factoring to a lesser extent than the average business sector in Europe. For instance, only 8 percent of the companies surveyed in this sector say they use debt collection, which can be compared to the average figure for Europe of percent. Late has high impact With regard to loss of income, liquidity squeeze, threat to survival, the dismissal of, recruitment capability and inhibiting growth, the consequences of late are rated considerably higher by respondents in this sector compared to the average European sector. As many as 77 percent of the respondents in this sector say that late s have a medium to high impact regarding threat to survival. The equivalent figure in Europe is percent. Late despite generous terms This sector deals with late despite their generous terms. Consumers are on average offered terms of days, but do not pay until after 2 days. The average terms offered to companies are days, but is not usually received until after 5 days. The public sector is on average 71 days late with its s to this sector. On average, the public sector is offered terms of 7 days, but does not pay until after 1 days. Low percentage of lost revenue The bad debt loss is lower in this sector compared to the European average. On average, 1.6 percent of total annual revenue for 2 was written off, compared to the European average of 2.1 percent. High protection against bad Precautions against poor performance are used to a greater extent in this sector compared to the European average. Bank guarantees, credit insurance, credit checks, pre, debt collection and factoring are more commonly used in this sector than in Europe as a whole. Demand for legislation to tackle issue of late More than half (5 percent) of the companies surveyed in this sector would like to see the introduction of new legislation to address the problem of late. Among all the companies surveyed in Europe, on average 2 percent agree. Late has high impact In the Retail sector in Italy, the consequences of late are rated significantly higher than in the average European business sector. For instance, more than three quarters (76 percent) of the companies surveyed in this sector rate the consequences of late as medium to high with regard to loss of income. The equivalent figure in Europe is percent. Faster would generate employment opportunities Half of the respondents (5 percent) in this sector say faster would enable their to hire more. This figure is more than twice the European average of percent. Not handing over outstanding invoices Forwarding outstanding invoices to debt collection agencies is less common in this sector than in the average sector in Europe. Almost two thirds (6 percent) of the companies surveyed in this sector say they never hand over outstanding invoices to a debt collection agency, which can be compared to the European average of 6 percent. Electricity, Gas, Steam, Water and Air conditioning supply [ Electricity, Gas, Steam, Water and Air conditioning supply [ [ Electricity, Gas, Steam, Water and Air conditioning supply [ Increased investments change in investments [ Decreased investments Electricity, Gas, Steam, Water and Air conditioning supply

25 LATVIA EPR Industry White Paper 2 EPR Industry White Paper 2 LATVIA Agriculture, Forestry and Fishing Real Estate Public Administration, Defense, Education, Human health and Social work 1 Agriculture, Forestry and Fishing 11 Real Estate Public Administration, Defense, Education, Human health and Social 21 work days days Would faster s from your debtors enable your to hire more? Agriculture, Forestry and Fishing difficulty According to those surveyed in this sector, late stems from the challenges of customers. Almost three quarters (7 percent) cite as one of the main causes of late. The average figure in Europe is 66 percent. Using credit checks as protection Among the companies surveyed, 65 percent say they use credit checks as a precaution against poor performance. This is more than twice the European average (3 percent). In addition, other common precautions such as bank guarantees, credit insurance, pre, factoring and debt collection are used to a lesser extent by this sector than the average in Europe. Increased investment due to low interest rates Almost a fifth ( percent) of the companies surveyed in this sector have noticed increased investment due to globally low interest rates. Among all the companies surveyed in Europe, on average 13 percent respond in the same way. Real Estate Credit checks and pre as precautions against poor performance In this sector, credit checks and pre are commonly used as precautions against poor performance. Among the companies surveyed in this sector, 76 percent say they use credit checks, and 62 percent use pre as protection against poor performance. In Europe, on average 3 percent use credit checks; and 5 percent use pre. Government officials attitudes an obstacle for businesses More than half (55 percent) of the companies surveyed in this sector state that government officials attitudes make it harder to run a successful. This is somewhat higher than the European average of 5 percent. Low acceptance of longer terms Our study shows that more than half (58 percent) of the companies surveyed in Europe have accepted longer terms than they feel comfortable with. In this sector, only 36 percent of the companies surveyed have accepted unreasonably long terms. Public Administration, Defense, Education, Human health and Social work Delayed a relatively minor issue The consequences of late are rated lower by this sector than the average European business sector. For instance, 8 percent of the companies surveyed in this business sector say late has a low impact with regard to additional interest charges. In Europe as a whole, the equivalent figure is 71 percent. Bank guarantees and credit checks as protection In this sector, bank guarantees and credit checks are more commonly used as precautions against poor performance compared to the average sector in Europe. More than a quarter ( percent) say they use bank guarantees, which is more than twice the European average (11 percent). Almost half (7 percent) of the companies surveyed in this sector use credit checks, which is higher than the European average of 3 percent. Credit insurance, pre, debt collection and factoring are less commonly used in this sector than in Europe as a whole. Debtor risk forecast to remain stable Among those surveyed in this business sector, 8 percent forecast that debtor risk will remain stable during the coming 12 months. In Europe, on average 76 percent respond in the same manner. Agriculture, Forestry and Fishing Real Estate [ Agriculture, Forestry and Fishing [ Real Estate [ Public Administration, Defense, Education, Human health and Social work Public Administration, Defense, Education, Human health and Social work Agriculture, Forestry and Fishing 3 57 Real Estate [ Increased investments change in investments [ Decreased investments Agriculture, Forestry and Fishing Real Estate 71 Public Administration, Defense, Education, Human health and Social work Public Administration, Defense, Education, Human health and Social work

26 LITHUANIA EPR Industry White Paper 2 EPR Industry White Paper 2 LITHUANIA Transport and Storage Transport and Storage days days Would faster s from your debtors enable your to hire more? Tax levels hinder successful enterprise More than nine out of ten (91 percent) of the companies surveyed in this sector state that tax levels make it harder for them to run a profitable. This is a high figure compared to the average in Europe, where 69 percent respond likewise. Few companies use debt collection agencies Debt collection agencies are used to a lesser extent by this sector than the average European business sector. Among the companies in this sector that took part in our survey, 62 percent say they never hand over outstanding invoices to a debt collection agency. In Europe as a whole, on average 6 percent respond likewise. Payment terms non-negotiable It is less common in this sector to negotiate terms with customers compared to all of the business sectors surveyed in Europe. Of the companies surveyed in this sector, percent say they do not negotiate terms with their customers; a higher percentage compared to the European average of percent. Increasing debtor risk In this sector, almost a fifth ( percent) forecast that debtor risk will increase over the next 12 months. This is higher than the average in Europe of 12 percent. Low interest rates stimulating investment This sector has benefitted from globally low interest rates. Almost three out of ten ( percent) of the companies surveyed say they have noticed increased investment due to low interest rates. This is more than twice the European average of 13 percent. Low level of knowledge of legislation concerning late or non- Few of the companies surveyed in this business sector are familiar with European and national legislation concerning late or non-. Only a quarter ( percent) say they are familiar with national legislation; a considerably smaller proportion compared to the European average of 57 percent. In addition, only 11 percent of the companies surveyed in this sector are familiar with the European Late Payment Directive. The equivalent figure in Europe is percent. Transportation and Storage Not protected against poor performance Among the companies surveyed in this sector, half (5 percent) say they do not use any of the most common precautions to protect themselves against poor performance. In Europe, the equivalent figure is 3 percent. Pressure to accept longer terms Almost three quarters (73 percent) of the companies surveyed in this sector say they have been asked to accept terms that are longer than they feel comfortable with. As many (73 percent) have also accepted unreasonably long terms. On average in Europe, 61 percent have been asked to accept longer terms and 58 percent have accepted unreasonably long terms. Voluntary initiatives to tackle long terms In order to address the issue of demands for terms that extend beyond those recommended by national practice or law, 6 percent in this sector would like to see voluntary initiatives from corporations, which is significantly higher than the European average of 3 percent Transport and Storage [ [ [ Transport and Storage [ Increased investments change in investments [ Decreased investments Transport and Storage 5 Transport and Storage 5 51

27 NETHERLANDS EPR Industry White Paper 2 EPR Industry White Paper 2 NETHERLANDS and Support Service days and Support Service days Would faster s from your debtors enable your to hire more? High percentage of lost revenue Bad debt loss accounts for nearly 3.5 percent of annual revenue, according to the respondents working in this sector. This is higher compared to the average proportion of bad debt loss among all the sectors in Europe of 2.1 percent. Pressure to accept unreasonably long terms Seven out of ten companies (7 percent) working in this sector say they have been asked to accept longer terms than they feel comfortable with. This is a larger figure compared to the average in Europe of 61 percent. Outstanding invoices not routinely passed to collection agencies More than half of the companies surveyed in this sector (52 percent) say they never hand over outstanding invoices to a collection agency. Compared to the average figure for Europe of 6 percent, it is slightly less common in this sector to hand over outstanding invoices. main cause of late According to seven out of ten (7 percent) of the companies surveyed in this sector, the main reason for customers paying late is intentional late. Among all the business sectors in Europe, on average 55 percent cite intentional late as the main cause of late ; a considerably smaller percentage compared to this sector. Late has low impact The companies surveyed in this sector give the consequences of late a lower rating than the average business sector in Europe does. For instance, 71 percent rate the consequences of late as low with regard to loss of income. The equivalent figure in Europe as a whole is 6 percent. Well protected against poor performance This sector uses bank guarantees, credit insurance, credit checks, pre and debt collection as precautions against poor performance to a greater extent than the average business sector in Europe. On average in Europe, only a quarter ( percent) say they use debt collection, whereas percent of the companies surveyed in this sector say they use debt collection to protect themselves against poor performance. Support Service Consequences of late rated low The consequences of late are rated lower by this sector compared to the average business sector in Europe. As an example, 77 percent of the companies surveyed rate the consequences of late as low with regard to inhibiting growth. This can be compared to the average for Europe of 67 percent. High familiarity with regulations concerning late Knowledge of regulations regarding late or non- is higher in this sector compared to the average in Europe. More than one in three ( percent) say they are familiar with the European Late Payment Directive, which is slightly higher than the average in Europe of percent. Two thirds (66 percent) say they are familiar with national regulations regarding non- or late, which can be compared to the European average of 57 percent. Low usage of precautions against poor performance Almost four out of ten (39 percent) of the companies surveyed say they do not use any of the most common precautions such as credit checks, pre and debt collection as protection against poor performance. This is higher compared to the equivalent figure in Europe of 3 percent [ [ [ Support Service Support Service [ Increased investments change in investments [ Decreased investments Wholesale and 2 Support Service 1 85 Professional,Scientific, and Support Service

28 NORWAY EPR Industry White Paper 2 EPR Industry White Paper 2 NORWAY Transport and Storage 39 Transport and Storage days days Would faster s from your debtors enable your to hire more? Pressure to accept long terms Among the companies surveyed in this sector, almost eight out of ten (79 percent) have been asked to accept unreasonably long terms. This is considerably higher than the European average of 61 percent. In addition, more than seven out of ten (72 percent) have accepted terms that are longer than they feel comfortable with. Many use precautions against poor performance Precautions against poor performance are more commonly used by this sector compared to the average in Europe. For instance, 72 percent of the companies surveyed in this sector say they use credit checks as protection, which is more than twice the European average of 3 percent. inefficiency main cause of late inefficiency is perceived as the main cause of late in this sector. As many as 86 percent of the companies surveyed in this sector say customers administrative inefficiency is the main cause of late. In Europe as a whole, on average 9 percent respond in the same manner. Transportation and Storage Faster would generate jobs The results of our survey indicate that faster from debtors would create jobs in this sector. Among the companies surveyed in this sector, 3 percent say faster from debtors would enable their to hire more. The equivalent figure in Europe is percent. Late leads to liquidity squeeze In this sector, more than seven out of ten (71 percent) say that late from their debtors leads to a liquidity squeeze. This is substantially higher than the average in Europe of 2 percent. Increased investment due to low interest rates The companies in this sector have benefitted from globally low interest rates. Almost three out of ten ( percent) of the companies surveyed say they have noticed increased investment resulting from low interest rates. This is more than twice the European average of 13 percent. Knowledge of regulations concerning late and non- Almost three quarters (7 percent) of the companies surveyed in this sector say they are familiar with national legislation regarding late or non-. This is high compared to the European average of 57 percent. With regard to European legislation and the European Late Payment Directive, knowledge in this sector is below the European average. Only 21 percent of the companies surveyed in the sector are familiar with the Directive, which is less than the European average of percent. Unconditional acceptance of longer terms a primary measure When a customer asks for longer terms, the primary measure taken by this sector is to offer longer terms unconditionally. Almost a third ( percent) say this is the primary measure taken, making it more than twice as common in this sector compared to Europe as a whole, where only percent respond this way. Faster would create employment opportunities Among the companies surveyed in this sector, 37 percent say that faster from their debtors would enable them to hire more. In Europe as a whole, on average percent respond this way. [ [ Transport and Storage [ Transport and Storage [ Increased investments change in investments [ Decreased investments Transport and Storage Transport and Storage 5 55

29 POLAND EPR Industry White Paper 2 EPR Industry White Paper 2 POLAND Transport and Storage 39 Transport and Storage days days Would faster s from your debtors enable your to hire more? Transport and Storage 1 Withstanding pressure to accept longer terms Among the companies surveyed in this sector, 65 percent say they have been asked to accept unreasonably long terms. This is higher than the average for Europe of 61 percent. Among the companies surveyed in this sector, percent say they have accepted longer terms than they feel comfortable with, which is lower than the European average of 58 percent. Protection against poor performance This sector uses credit insurance, pre, debt collection and factoring to protect themselves against poor performance to a greater extent than the average business sector in Europe. More than half of the respondents in this sector (55 percent) say they use pre, which is a higher figure than the European average of 5 percent. Late has low impact The consequences of late are rated lower in this sector compared to the average in Europe. As an example, half of the companies surveyed (5 percent) say late has no impact with regard to loss of income. Among all of the business sectors surveyed in Europe, on average 28 percent say late has no impact on loss of income; a considerably smaller percentage compared to this sector. Low usage of precautions against poor performance This sector uses credit insurance, credit checks, pre and debt collection to a lesser extent compared to the average business sector in Europe. For instance, only 1 percent of the companies surveyed in this sector use debt collection, which is lower than the European average of percent. Faster would generate more employment opportunities More than a quarter of the companies surveyed in this sector ( percent) say faster from debtors would enable them to hire more. This is a higher figure than the European average of percent. Tax levels hinder successful enterprise According to eight out of ten (8 percent) companies surveyed in this sector, tax levels make it difficult to run a successful. The corresponding figure in Europe as a whole is 69 percent. Low protection against poor performance Among the companies surveyed in this sector, more than half (5 percent) say they do not use any of the most common precautions such as pre, credit checks and debt collection to protect themselves against poor performance. The equivalent figure in Europe is 3 percent; a considerably lower percentage compared to this sector. Lost revenue In this sector, on average 3.3 percent of total annual revenue for 2 was written off. Among all of the business sectors surveyed in Europe, the average percentage of lost revenue for 2 was 2.1 percent. Faster from debtors would generate employment opportunities Almost one in three respondents in this sector ( percent) say faster from their debtors would enable them to hire more. This is a higher figure compared to the European average of percent Transport and Storage [ [ [ Transport and Storage [ Increased investments change in investments [ Decreased investments Transport and Storage Transport and Storage 56 57

30 PORTUGAL EPR Industry White Paper 2 EPR Industry White Paper 2 PORTUGAL and Support Service days and Support Service days Would faster s from your debtors enable your to hire more? Well protected against poor performance The companies working in this sector are well protected against poor performance. Factoring, credit insurance, bank guarantees, pre, credit checks and debt collection are used to a greater extent in this sector compared to the average in Europe. For instance, credit checks are used by 6 percent of the companies surveyed in this sector, which is more than twice the European average of 3 percent. Debtors forecast to remain stable When asked about how the companies in this sector view the debtor risk trend over the next 12 months, 86 percent forecast that the level of risk will remain stable. In Europe as a whole, the average figure is 76 percent. European Late Payment Directive well known but ineffective In this sector, half (5 percent) say they are familiar with the European Late Payment Directive; a higher figure than the European average of percent. However, only 12 percent have noted any positive impact as a result of the Directive. Furthermore, 1 percent of the companies surveyed in this sector say their business would benefit from EU regulation regarding late from consumers. In Europe, on average percent respond likewise. Pressure to accept long terms Among the companies surveyed in this sector, 87 percent say they have been asked to accept terms that are longer than they feel comfortable with. This is high in comparison to the European average of 61 percent. In addition, 73 percent say they have also accepted unreasonably long terms, which is higher than the average in Europe of 58 percent. Late an issue Late appears to be a common problem in this sector. Consumers are on average four days late with their s to companies in this sector. Companies are on average days late. The longest delays to the businesses in this sector are from the public sector, which pays 5 days late on average. Faster would create jobs More than a quarter ( percent) of the companies surveyed in this sector say faster from their debtors would enable them to hire more. This is somewhat higher than the average in Europe of percent. Support Service Faster would create employment opportunities Among the companies surveyed in this sector, half (5 percent) say faster from their debtors would enable them to hire more. This is considerably higher than the European average of percent. main cause The perceived main cause of late in this sector is intentional late from customers. As many as 88 percent of the companies surveyed in this sector say intentional late is the main cause of late. In Europe as a whole, on average 55 percent respond in this manner. Accepting unreasonably long terms Three quarters (75 percent) of the companies surveyed in this sector say they have accepted terms that are longer than they feel comfortable with. This is high compared to the average in Europe of 58 percent [ [ [ Support Service Support Service [ Increased investments change in investments [ Decreased investments and Support Service Support Service 58 59

31 ROMANIA EPR Industry White Paper 2 EPR Industry White Paper 2 ROMANIA Real Estate 21 Real Estate days days Would faster s from your debtors enable your to hire more? 2 36 Faster would create jobs Among the companies surveyed in this business sector, 5 percent say faster from their debtors would enable them to hire more. In comparison to the European average of percent, this is a high figure. Undertaking precautions against poor performance Bank guarantees, factoring, credit insurance, credit checks, pre and debt collection are more commonly used in this sector compared to Europe as a whole. For instance, percent of the companies surveyed say they use factoring as a precaution. This is significantly higher compared to the average in Europe of 6 percent. Increased investment The companies in this sector have benefitted from low interest rates. More than a quarter ( percent) say they have noticed increased investment as a result of low interest rates. This is high compared to Europe as a whole, where only 13 percent have noticed increased investment. Late incurs additional interest charges Among the companies surveyed in this sector, 58 percent say late incurs additional interest charges. This figure is twice the European average of percent. Not handing over outstanding invoices Compared to the average business sector in Europe, it is less common in this sector to pass outstanding invoices on to a debt collection agency. Six out of ten (6 percent) surveyed companies say they never hand over outstanding invoices to a collection agency. The equivalent figure in Europe is 6 percent. Low knowledge of regulations concerning late and non- Less than a quarter ( percent) of the respondents in this sector are familiar with the European Late Payment Directive. In addition, only 2 percent of the companies surveyed have knowledge of national legislation concerning late or non. Both of these figures are low in comparison to the European average, where percent are familiar with the European Directive, and 57 percent have knowledge of national legislation. Real Estate High percentage of bad debt loss According to the companies surveyed in this sector, bad debt loss accounts for 7 percent of their annual revenue. This is more than three times higher than the European average of 2.1 percent. Government officials attitudes an obstacle for successful businesses Almost three quarters (73 percent) of the companies surveyed in this sector say government officials attitudes to businesses make it harder for them to run a successful. In Europe, on average 5 percent respond likewise, which is a considerably lower percentage. Low use of debt collection More than seven out of ten (73 percent) of the companies surveyed in this sector say they never hand over outstanding invoices to a debt collection agency. Debt collection is thus used to a lesser extent in this sector compared to the average business sector in Europe, where the equivalent figure is 6 percent Real Estate [ [ [ Real Estate [ Increased investments change in investments [ Decreased investments Real Estate Real Estate 6 61

32 SLOVAKIA EPR Industry White Paper 2 EPR Industry White Paper 2 SLOVAKIA Public Administration, Defense, Education, Human Health and Social Work days Public Administration, Defense, Education, Human Health and Social Work days Would faster s from your debtors enable your to hire more? Increased investment In this sector, more than a third ( percent) say they have noticed increased investment as a result of low interest rates. Among all of the business sectors surveyed in Europe, on average 13 percent respond likewise; a considerably lower percentage. Government officials attitudes an obstacle for successful businesses More than three quarters (76 percent) of the respondents in the sector say government officials attitudes make it harder for them to run a successful. On average, 5 percent of all the companies surveyed in Europe agree. What is the European Late Payment Directive? Only one in ten (1 percent) of the companies surveyed in this sector are familiar with the European Late Payment Directive. This is considerably lower than the European average of percent. Late has relatively low impact on businesses In relation to the European average business sector, this sector rates the impact of late as low with regard to loss of income, liquidity squeeze, inhibiting growth and recruitment capability. For instance, 79 percent of the companies surveyed in this sector say late has a low impact on liquidity squeeze. The equivalent figure in Europe is 58 percent. Few use protection against poor performance Among the companies surveyed in this sector, more than half (5 percent) say they do not use any of the most common precautions against bad, such as pre or debt collection. In Europe as a whole, on average 3 percent respond likewise. Low percentage of lost revenue In this sector, on average 1 percent of total annual revenue for 2 was written off as lost revenue. This figure is low in comparison to the average percentage of lost revenue among all the sectors surveyed in Europe, which was 2.1 percent for 2. Public Administration, Defense, Education, Human Health and Social Work Companies would welcome new legislation In order to tackle the issue of demands for terms that extend beyond those recommended by national practice or law, 2 percent of the companies surveyed in this sector would like to see the introduction of new legislation. This is slightly higher than the European average of 38 percent. Few hand over outstanding invoices to a collection agency Almost three quarters (73 percent) of the companies surveyed in this sector say they never pass outstanding invoices on to a debt collection agency. This is much higher than the equivalent figure in Europe of 6 percent. Declining debtor risk In this sector, more than a fifth ( percent) forecast that debtor risk will decline during the next 12 months. Among all the business sectors surveyed in Europe, on average 13 percent forecast declining debtor risk [ [ [ Public Administration, Defense, Education, Human Health and Social Work Public Administration, Defense, Education, Human Health and Social Work [ Increased investments change in investments [ Decreased investments Public Administration, Defense, Education, Human Health and Social Work Public Administration, Defense, Education, Human Health and Social Work 62 63

33 SPAIN EPR Industry White Paper 2 EPR Industry White Paper 2 SPAIN Transport and Storage Professional, Scientific, Technical, Administration and Support Service days Transport and Storage Professional, Scientific, Technical, Administration and Support Service days Would faster s from your debtors enable your to hire more? Severe consequences of late With regard to liquidity squeeze and additional interest charges, this sector rates the consequences of late considerably higher than the average sector in Europe. Almost one in three (51 percent) rate the consequences as medium to high with regard to additional interest charges, which is considerably higher than the average in Europe of percent. More than half (52 percent) rate the consequences as medium to high concerning liquidity squeeze, which is considerably higher than the average in Europe of 2 percent. Late handover of outstanding invoices This sector routinely forwards outstanding invoices to a collection agency. Almost three quarters (73 percent) say they hand over outstanding invoices to a collection agency a certain number of days after the invoice s due date. On average, outstanding invoices are handed over 18 days after the due date, which is much later than the average in Europe of 81 days. Declining debtor risk More than a fifth (21 percent) of the companies surveyed in this sector forecast that debtor risk will decline over the next 12 months. The corresponding figure for Europe is 13 percent. Transport and Storage Late has high impact According to the companies surveyed, late has a high impact on liquidity squeeze and loss of income in this sector. Almost two thirds (65 percent) rate the impact as medium to high with regard to liquidity squeeze, which is high compared to the average share in Europe of 52 percent. In addition, 65 percent rate the impact as high with regard to loss of income, which is significantly higher than the average share in Europe of percent. Faster would generate more employment opportunities Almost one in three of the companies surveyed in this sector (3 percent) say faster from debtors would enable them to hire more. This is higher than the average in Europe of percent. Declining debtor risk Almost four out of ten of the companies surveyed in this sector (39 percent) forecast that debtor risk will decline over the coming 12 months. Among the business sectors in Europe, on average only 13 percent forecast a decline in debtor risk. Support Service Lengthy delays despite generous terms This sector has issues with late, despite offering generous terms. Consumers are on average offered terms of 73 days, but do not pay until after 75 days. Companies are on average offered terms of 5 days, but is not normally received until after 62 days. The public sector is on average days late with its s to this sector. On average, the public sector is offered terms of 56 days, but it takes on average 75 days before is received. European Late Payment Directive well known but ineffective More than half of the companies surveyed in this sector (55 percent) say they are familiar with the European Late Payment Directive, which is considerably higher than the average in Europe of percent. Less than one in ten (7 percent) of the companies surveyed say they have noted a positive impact as a result of the Directive in terms of fewer delays. Protected against poor performance This sector takes precautions against poor performance to a greater extent compared to the average business sector in Europe. The precautions more commonly used in this sector are bank guarantees, credit insurance, credit checks, debt collection and factoring Transport and Storage [ [ Transport and Storage [ Support Service Transport and Storage Support Service [ Increased investments change in investments [ Decreased investments Wholesale and Retail trade Transport and Storage 3 21 Support Service and Support Service

34 SWEDEN EPR Industry White Paper 2 EPR Industry White Paper 2 SWEDEN Electricity, Gas, Steam, Water and Air Conditioning Supply 3 Electricity, Gas, Steam, Water and Air Conditioning Supply 3 Insurance Insurance days days Would faster s from your debtors enable your to hire more? Electricity, Gas, Steam, Water and Air Conditioning Supply Debtors forecast to remain stable More than eight out of ten (83 percent) of the companies surveyed in this sector forecast that debtor risk will remain stable over the next 12 months. This is slightly higher than the European average of 76 percent. Late has low impact Generally speaking, the companies surveyed in this business sector give the impact of late a lower rating than the average European business sector does. For instance, more than three quarters (78 percent) say late has a low impact with regard to liquidity squeeze. In Europe, the equivalent figure is 58 percent. inefficiency main cause of late The most commonly listed main cause of late in this sector is customers administrative inefficiency. Among all the business sectors surveyed in Europe, on average 9 percent cite this as one of the main causes of late. Pressure to accept longer terms More than eight out of ten (81 percent) of the companies surveyed in this sector say they have been asked to accept terms that are longer than they feel comfortable with. This is even higher than the already high European average of 61 percent. Demand for new legislation In order to tackle the problem of demands for terms that extend beyond those recommended by national practice or law, many businesses in this sector would like to see the introduction of new legislation. Among the companies surveyed, percent would like to see new legislation to address this issue; a higher percentage compared to the European average of 38 percent. an issue Almost eight out of ten (79 percent) of the companies surveyed in this sector say one of the main causes of late is intentional late from their customers. This is much higher than the European average of 55 percent. Insurance Late has low impact According to the companies surveyed in this sector, late has a low impact with regard to employee the dismissal of, the ability to hire more, inhibiting growth, threat to survival, liquidity squeeze, loss of income and additional interest charges. For example, 89 percent of the companies surveyed say late has a low impact on threat to survival. The equivalent figure in Europe is 73 percent. Handing over outstanding invoices Almost half of the companies surveyed (8 percent) say they pass outstanding invoices on to a debt collection agency. Not only is this higher than the European average of 39 percent, in addition outstanding invoices are handed over at a relatively early stage. Outstanding invoices are on average handed over 6 days after the invoice s due date. The average time taken in Europe as a whole is 81 days. Unconditional acceptance of longer terms When a customer requests longer terms, the primary measure taken by the companies in this sector is to accept longer terms unconditionally. Among the companies surveyed, 37 percent say the primary measure is to unconditionally accept longer terms, which is considerably higher than the European average of percent. Electricity, Gas, Steam, Water and Air Conditioning Supply [ Electricity, Gas, Steam, Water and Air Conditioning Supply [ [ Insurance Electricity, Gas, Steam, Water and Air Conditioning Supply Insurance [ Increased investments change in investments [ Decreased investments Transport and storage 59 1 Insurance

35 SWITZERLAND EPR Industry White Paper 2 EPR Industry White Paper 2 SWITZERLAND 36 Insurance Public Administration, Defense, Education, Human Health and Social Work days Insurance Public Administration, Defense, Education, Human Health and Social Work days Would faster s from your debtors enable your to hire more? Increasing debtor risk More than a fifth (22 percent) of the companies surveyed in this sector forecast that debtor risk will increase over the next 12 months. This a high compared to the average in Europe, where 12 percent forecast an increase in debtor risk. Many companies pass outstanding invoices to a collection agency Almost three quarters (73 percent) of the companies surveyed say they hand over their outstanding invoices to a debt collection agency, compared to on average 39 percent for Europe as a whole. Pressure to accept unreasonably long terms Among the companies surveyed in this business sector, almost seven out of ten (69 percent) say they have been asked to accept terms that are longer than they feel comfortable with. Moreover, 67 percent say they have also accepted unreasonably long terms. Insurance Undertaking precautions against poor performance A large proportion of respondents in this sector use precautions to protect themselves against poor performance. Bank guarantees, credit insurance, credit checks and debt collection are more commonly used in this sector compared to the average business sector in Europe. The most commonly used form of protection is credit checks, which are used by 77 percent of the companies surveyed a considerably higher percentage than the European average of 3 percent. Knowledge of regulations concerning late and non- More than nine out of ten (92 percent) of the companies surveyed in this sector say they are familiar with national legislation concerning late or non-. This is much higher than the average in Europe of 57 percent. With regard to European legislation, however, knowledge is very low. Only 15 percent of the companies surveyed are familiar with the European Late Payment Directive, which is about half the European average ( percent). Laws and regulations hinder successful enterprise According to 85 percent of the companies surveyed in this sector, laws and regulations make it more difficult for them to run a profitable business. Among all the companies surveyed in Europe, on average 61 percent agree. Public Administration, Defense, Education, Human Health and Social Work Debt collection used as protection In this sector, debt collection is the most commonly used method of protection against poor performance. Among the companies surveyed, 65 percent say they use debt collection as a protective measure. This is significantly higher than the average figure for Europe of percent. Late has low impact In general, the impact of late is rated lower in this sector compared to the average in Europe. For instance, more than eight out of ten (81 percent) of the companies surveyed in this sector say late has a low impact in terms of additional interest charges. The equivalent figure in Europe is 71 percent. Offering plans More than three quarters (77 percent) of the companies surveyed say the primary measure taken when a customer asks for longer terms is to offer plans. Among all the business sectors surveyed in Europe, on average percent give the same response. [ [ Insurance [ Public Administration, Defense, Education, Human Health and Social Work [ Increased investments change in investments [ Decreased investments Insurance Insurance Public Administration, Defense, Education, Human Health and Social Work 5 85 Insurance 6 Public Administration, Defense, Education, Human Health and Social Work 8 92 Public Administration, Defense, Education, Human Health and Social Work 68 69

36 UNITED KINGDOM EPR Industry White Paper 2 EPR Industry White Paper 2 UNITED KINGDOM 1 Real Estate and Support Service days Real Estate and Support Service days Would faster s from your debtors enable your to hire more? Lost revenue The average percentage of lost revenue in this sector for 2 was.5 percent of total annual revenue. This is more than twice the average in Europe of 2.1 percent. inefficiency main cause of late According to the companies surveyed in this sector, the main cause of late is customers administrative inefficiency. As many as 63 percent of the companies surveyed cite this as the main cause of late, which is higher than the European average of 9 percent. Faster from debtors would create employment opportunities More than half (52 percent) of the companies surveyed in this sector say faster from their debtors would enable them to hire more. This is considerably higher than the average in Europe of percent. Real Estate Faster would create jobs Almost half (8 percent) of the companies in this sector that took our survey say faster from their debtors would enable them to hire more. The average figure for all the business sectors surveyed in Europe is percent; a much lower percentage compared to this sector. Demand for new legislation In order to tackle the issue of demands for terms that extend beyond those recommended by national practice or law, almost half (7 percent) of the companies surveyed in this sector would like to see the introduction of new legislation. This is a larger proportion compared to the average in Europe of 38 percent. Few hand over outstanding invoices to a debt collection agency Among the companies surveyed in this sector, 65 percent say they never pass outstanding invoices on to a debt collection agency. The equivalent figure in Europe is 6 percent. Support Service High percentage of lost revenue The average proportion of lost revenue in this sector in 2 was 5.1 percent of total annual revenue. This is a considerably higher figure compared to the European average of 2.1 percent. Late has severe impact The impact of late is higher in this sector compared to the average in Europe. With regard to threat to survival, inhibiting growth, the dismissal of, recruitment capability, additional interest charges and loss of income, the impact is rated as high. In this sector, 9 percent rate the impact as medium to high when it comes to additional interest charges. This figure is higher compared to the European average of percent. Not handing over outstanding invoices More than half (5 percent) of the companies in this sector that took our survey say they never forward outstanding invoices to a collection agency. The average figure for Europe is 6 percent Real Estate [ [ Real Estate [ Support Service and Support Service [ Increased investments change in investments [ Decreased investments Real Estate and Support Service 6 Real Estate and Support Service 7 71