CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow 8 million companies in Europe would hire more employees if they got faster payment from debtors
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
8 million companies in Europe would hire more employees if they got faster payment from debtors PDF Print E-mail
Tuesday, 26 May 2015

Every third company in Europe would be able to hire more employees if they got paid faster by their debtors. It appears from the debt collection company Intrum Justitia's European Payment Report 2015, based on questions about payment answered by 8979 companies in 29 countries. 32 percent answered yes to the question "Would you hire more if you got the invoices paid faster?" This corresponds to 8 million businesses in the countries surveyed.

”There are 25 million companies in the countries included in our survey.  If we relate this to the fact that there are 23 million people without a job in the EU, one can conclude that if every company employed one more the unemployment would be erased - a theoretical yet interesting assumption. Our survey indicates that 8 million companies would probably employ at least one more if they received faster payments. This example illustrates the great importance of payment issues and payment management”, comments Lars Wollung, CEO & President of Intrum Justitia..

The geographical differences are relatively large. In southern European countries it is four out of ten companies and in Eastern European countries, 44 percent, who believe themselves to be able to hire more if they got paid faster. In northern Europe, the figure is 16 percent.

Every other European company state that they have been asked to accept longer payment period than they are comfortable with. When asked about the consequences of late payments, the connection to employment is clear: Every third company sees a clear connection to not being able to hire more, and one in four companies (24 percent) also stated that late payments contribute to the need to lay off staff. Among companies with more than 50 employees it is 19 per cent who see a correlation between late payments and having to terminate employees.

Intrum Justitia has also asked about what the main causes are to customers paying late. It turns out that 6 out of 10 judges that "deliberately late payments" are a principal cause. This also applies to companies which have only business customers and it means that conscious strategies to pay late contributes to reduced liquidity, which in turn contributes to fewer jobs.

(Source - Intrum Justitia European Payment Report 2015)  

 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197