A rise in customer credit risk among businesses in the Czech Republic is evident in our survey.
Key takeaways from the report for the Czech Republic
The 2024 Payment Practices Barometer survey for the Czech Republic was conducted between the end of Q1 and the beginning of Q2 2024. The findings should therefore be viewed with this in mind.
Trade credit risk surges amid evolving economic dynamics
- Overall 46% of all B2B sales are being transacted on credit by Czech companies, but there are clear differences between sectors. Three-quarters of all B2B sales are on credit in the chemicals industry, but less than 40% in construction and steel-metals.
- More than one-third of Czech businesses are offering longer payment terms to B2B customers, particularly in the chemicals sector. The majority of companies are showing no change from last year, with average payment terms at 58 days from invoicing.
Rising insolvency risk and state of domestic economy spark concern
- The state of the domestic economy is the major concern for companies in our survey of the Czech Republic, both in the short-term and long-term. This is most acutely felt in the construction sector, compounded by anxiety environmental and sustainability issues.
- Cybersecurity risks are another clear worry amid the digitalization of the Czech economy. Potential financial constraints such as the availability and costs of external funding is another concern along with customer acquisition challenges. Businesses in the Czech chemicals industry also express most negativity about the outlook for profitability.
The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.
Interested in finding out more?
For a complete overview of the 2024 survey results for the Czech Republic and Central and Eastern Europe, please download the full reports available in the related documents section below.
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