Businesses around the world waited longer to pay their bills last year than in 2021. Payment behavior has declined, especially in China, where bills take an average of 54 days to pay, according to a study.
In 2021 that was still 44 days. In Germany, bills are paid on average after 49 days. That was ten days faster than the global average and a week earlier than usual in neighboring European countries.
Higher bankruptcy risk
Credit insurer Allianz Trade sees the outcome of a recent survey as a clear indication of increasing insolvency risks worldwide. “All in all, we expect about 15 percent more bankruptcies this year than in 2022 and thus a normalization of the insolvency situation,” says Milo Bogaerts, Allianz Trade Manager for the German-speaking area.
According to the insurer’s observations, global payment behavior has deteriorated more sharply in the past year than in the previous seven years. In 2022, bills were paid on average only after 59 days, five days later than last year. Between 2015 and 2021, the deadline was only extended by four days.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
