As the economy faces headwinds chiefly due to weak domestic demand, uncertain exports trend and high borrowings costs, Spanish businesses withstand trade credit risk to strengthen cashflow.
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.
The 2023 Payment Practices Barometer survey for Spain was conducted between the end of Q1 and the beginning of Q2 2023. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Spain
Businesses withstand trade credit risk impact amid economic headwinds
- The challenging trade credit risk landscape in Spain is reflected in a sharp downward trend in B2B sales transacted on credit during the past 12 months. Our survey found that an average 49% of B2B sales are now made on credit, down from 56% last year. Spanish construction companies contributed most to this decrease, demand in the sector having been hit hard by significantly increased borrowing costs to which it is particularly sensitive.
- Further evidence of the strain on cashflow amid economic headwinds is seen in a far more stringent approach to payment terms among companies polled in Spain. These terms now stand at 34-day average from invoicing, three weeks shorter than last year, in a bid to reduce exposure to B2B payment defaults.
Range of concerns expressed by businesses cloud outlook for the year ahead
- Businesses polled in Spain reported a range of concerns for the year ahead. High inflation, high interest rates and high production input prices continue to worry companies across all sectors, with the fear they could continue to negatively impact payment behaviour in B2B trade. Various potential obstacles to business growth also prompted concerns, among them the effects of climate change regulations, new tariffs and trade restrictions.
- An expected growth in consumer confidence and spending during the coming months is reflected in optimism expressed among companies polled in Spain about an increase in demand. 61% of businesses told us they anticipate that greater demand will lead to increasing sales.
Interested in finding out more?
Please download the full report for a complete overview of the 2023 survey findings of the Atradius Payment Practices Barometer for Spain.
For a complete overview of the survey results for Western Europe, please download the full report available in the Related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.
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