B2B payment practices trends, Austria 2024

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights the importance of strategic credit management as bad debts and Days-Sales-Outstanding (DSO) worsen in Western Europe [8][10] - Nearly half of all B2B sales in Western Europe are transacted on credit, with significant variations across countries [8][10] - Companies are experiencing a consistent trend of late payments, with bad debts now impacting 8% of all B2B sales, up from 6% the previous year [8][14] Summary by Sections B2B Payment Practices Trends - Trading on credit remains significant, with 50% of B2B sales on credit; Spain leads at 67% while Austria is at 38% [8][10] - Average payment terms have increased to 52 days from invoicing, up from 41 days a year prior, with Finland having the longest terms at 71 days and Greece the shortest at 32 days [8][10] - Late payments affect nearly half of all B2B sales, with the machinery industry facing the highest impact [8][10] Key Figures and Charts - 43% of invoices were paid on time in 2024, down from 45% in 2023; overdue payments remain at 49% [14] - The average DSO has increased by 30% compared to the previous year, with the electronics/ICT sector having the highest DSO at over 100 days [10][11] Looking Ahead - 40% of companies anticipate an improvement in B2B customer payment behavior in the coming year, with the highest optimism in Ireland [20][22] - However, over 60% of companies expect an increased risk of insolvencies among their B2B customers, particularly in Austria, Switzerland, and Germany [23][26] - Concerns about domestic economic conditions, environmental regulations, and geopolitical tensions are prevalent among businesses [26][29]