[ad_1]
The bills are paid faster than before the crown crisis. Businesses have even less bad debt. Unlike the federal government, citizens pay particularly on time.
Who would have thought that? In the midst of an economic crisis, of all places, Austrians display a pay discipline that is unrivaled internationally. Corporate customers pay their bills five days earlier than they did before the pandemic broke out. “Payment behavior has improved,” Ricardo-José Vybiral, head of the credit protection association KSV1870, said of the results of a survey of 1,200 companies in August.
Surprising, because even the payment term has been shortened. Last year, companies had 24 days to pay their bills. This year, the transfer must be made before, that is, after 18 days. Austrians need an average of 24 days. This results in a six day delay in payment. This is phenomenal in international comparison. According to Atradius, the US is overdrawn in three months, twice as much as in 2019. Last year, only the Germans and the British were able to keep up with their domestic punctuality in Europe. (Current figures are not yet available for these countries.)
Vorarlberg is a model student
Although nine out of ten companies in Austria are struggling with the consequences of Covid-19, 77 percent of corporate clients pay their invoices within the agreed payment term. Even bad debts decreased. This year it was five percent of sales, in 2019 it was 5.6 percent. However, 60 percent of companies must follow open invoices. Last year it was 78 percent, but it’s still tough.
Meanwhile, a written reminder is out of date, said Walter Koch, KSV’s head of claims management. “We recently noticed that the phone reminder has become more important again. At the same time, we note that the atmosphere in the phone conversation is more constructive and that many are interested in a solution that makes sense for both parties, ”explained Koch. Vorarlberg is a model student among the federal states. There, the companies are only canceled in two days, in Salzburg in ten.
Take a look
Payment behavior has improved in Austria. The pandemic has raised awareness on the issue of finances. This is how individuals pay their bills without delay. Corporate clients pay five days earlier than last year. Only the federal government needs 13 more days, and it takes a total of 49 days. In total, 1.9 million invoices are not paid.
A total of 1.9 million invoices for a total of 1.35 billion euros are not paid annually, even after reminders and payment reminders. As in the previous year, the main reason remains inefficient administration. Interestingly, 30 percent cite a liquidity bottleneck as the reason, compared to more than 40 percent in the prior year. Over-indebtedness was only a problem for seven percent.
The citizens are particularly good. Individuals pay even two days before the crisis, that is, after 13 days. In view of the economic effects of the Covid 19 crisis on consumers, such as short-term work or job loss, this is quite surprising. Vybiral sees increased sensitivity to finances. “The focus is on home because you are more at home.”
Here too, Vorarlbergers is setting a shining example. Pay one day before the deadline, Salzburg even two days before.
Bund takes his time
The main reason for not paying more than half of individuals: forgetfulness. Only a fifth blame the virus. Interesting: unemployment only accounts for ten percent. And over-indebtedness is not a problem: only 13 percent gave this as a reason, less than in the previous year (22 percent).
The Bund takes the longest. The duration of the federal authorities’ payment increased by 13 days. They need a total of 49 days to settle outstanding invoices. “This immense deterioration is likely also due to the fact that numerous companies have applied for a wide variety of Covid-19 subsidies for which they felt they had to wait a long time,” Koch said.
(“Die Presse”, print edition, October 15, 2020)
