German companies reported increased reliance on trade credit in B2B transactions to cushion impact of tighter monetary policy on the business.
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 Germany 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 Germany
Wider use of trade credit cushions impact of tighter monetary policy
- The reaction of German companies to a year of rising interest rates and tighter monetary policy used to fight inflation was a need to redesign their corporate financing options. This involved a clear switch towards an increased reliance on trade credit in B2B transactions, with 49% of businesses polled taking this path, in effect borrowing through trade credit from their suppliers.
- When they did so, more than one third of companies polled said they received less trade credit volume than requested. This strategy was used in preference to borrowing from banks, which had become less affordable due to increasing interest rates. Only 39% of companies polled opted for bank loans.
Clean energy storage among major concerns amid downbeat mood
- Our survey found a striking change in the nature of business outlook with a focus on the problem of clean energy storage amid the crucial transition to a green economy. This was the primary concern expressed by companies polled in the German chemicals sector, a worry that is likely to increase widely across all energy-intensive industries.
- The chemicals sector also showed a particular anxiety about cyber fraud in the year ahead. The main concern, generally, was that high energy and input costs could affect the competitiveness of German businesses amid the global economic downturn.
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 Germany.
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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