Companies in our survey of Hungary continue to show a cautious approach to B2B trading on credit in the current challenging economic times.
Key takeaways from the report for Hungary
The 2024 Payment Practices Barometer survey for Hungary 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 caution amid challenging economic landscape
- A relatively cautious approach to B2B trading on credit is evident among Hungarian companies. Only 44% of B2B sales are currently being made on credit across all sectors, while there is a significant decline to just 34% of sales on credit in the transport industry.
- Payment policies are generally stable with 62% of businesses reporting no change during the past year. The average payment term stands at three months from invoicing, but the terms are much stricter in the transport sector at 30 days from invoicing. Late payments currently affect an average 51% of all B2B sales on credit among companies in Hungary while bad debts stands at 7% of all B2B sales.
Widespread worry about profitability and competitive jobs market
- The most pressing worry for companies in our survey of Hungary is the increasing emphasis on adopting sustainable business practices and adhering to environmental regulations. This is most acutely felt in the agri-food and transport sectors.
- Another notable concern reported by Hungarian businesses is difficulty in attracting and retaining skilled talent for their workforce. The skills gap is exacerbated by a competitive jobs market, and poses significant barriers to growth and efficiency. 64% of companies in Hungary tell us they anticipate a rise in demand for their products and services, notably in the agri-food and transport industries. 32% of businesses expect no change and the only negativity is found in the energy-fuels sector.
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 Hungary and Central and Eastern Europe, please download the full reports available in the related documents section below.
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