94% of companies surveyed sell their products or services on credit to other private or autonomous companies. What effect do unpaid on your account have? According to recent estimates, the default rate of Spanish companies is slightly higher than 7%. However, the heterogeneity of this rate, directly related to credit risk management and the corresponding choice of customers, is very wide (Figure 3). About 30% of the business structure retains its influence on healthy levels, below 1% of sales. On the other hand, about 15% of business structures maintain non-payment levels in their transactions between companies (B2B), which put them at risk.
Commercial relations with state administrations are much less generalized than B2B. Only 43% of companies make some sales to the public sector. However, the level of non-payments in this area is much more pronounced (Figure 4): 22% of suppliers of various state administrations are in the zone of maximum risk when they bear non-payment levels above 10% relative to the volume of its operations and loan recovery.
In accordance with the transitional schedule of payment terms stipulated by Law 15/2010 for 2011, companies selling to other companies had to limit their maximum payment terms to 85 days. However (Figure 6), 43% of the companies that participated in the study admit that they have been working with payment terms longer than required by law. 33% of companies say they work with payment dates of less than 60 days.
Another 24% have terms from 60 to 85 days. In this case, although they still do not meet the deadline set by the legislator, they are within the time limits set by the transition calendar for 2011. In May 2011, only 33% of companies planned to go beyond 85 days, but in the October wave this percentage had already risen to 43%, which is a significant lengthening of the terms, which is now confirmed in the third wave. This evolution implies a clear link between the deterioration of payment terms and the uncertain evolution of the economic environment, especially in the euro area, as of the second half of 2011.
The transition calendar, provided for by Law 15/2010, since 2012 reduces the payment terms between companies from 85 to 75 days (Figure 9). However, given the growing lack of liquidity, difficulties with access to financial loans and the continuing weakness of domestic consumption, more than 52% of companies expect to exit within these terms (Figure 8).
It should be noted that this is the highest percentage of discrepancies collected by various waves of research. This is a clear deterioration in commercial conditions in 2012 compared with 2011 in all sections. The number of companies trained to work less than 60 days is reduced to 30%, which means that some of the companies that worked with these commercial conditions in 2011 do not expect to keep them in 2012. In May 2011, when the projected development of the environment was different, 42% of companies expected to spend 60 days in 2012.
B2B debt collection, an insurance company, has been promoting the growth of companies for almost 80 years, protecting them from default risks associated with their sale of goods and services. With a market share of about 54% and 33%, it is the leading company in its sector in the Iberian market. In addition, Crédito y Caución has expanded its direct operations in Brazil.
The company operates in these three markets of the Atradius group, represented in 45 countries. With a total income of about 1.8 billion Euros and a 31% share in the global credit insurance market, he has access to credit information of more than 100 million companies around the world and makes more than 20,000 decisions. Daily credit limits. Financial sustainability and medical billing are supported by a rating. About debt collection specialists – a lending and surety company specializing in company valuation, preparation of commercial and financial information, as well as marketing databases. Their services help companies make business decisions and minimize customer risks. It is the only supplier on the market that has its own network of informants that extends and updates information from open sources through personal surveys, making an average of 550,000 reports examined per year. Its default forecast ratings let us know the likelihood of default by companies. It offers access to property, commercial and travel records, to the registry of unpaid acceptances, as well as to online databases and user marketing databases.