Greek businesses shorten payment terms offered to B2B customers. This reflects concern about the cost of obtaining new credit required to fill potential liquidity gaps caused by late payments.
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 Greece 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 Greece
Cashflow struggle sparks sharp tightening of payment terms
- Selling on credit continues to play a significant role in B2B trade for companies polled in Greece, with an average 57% of sales to B2B customers transacted on credit across all sectors. This represented only a slight increase from 56% last year, but this trend was not replicated in the logistic-shipping maritime transport sector, one of most important industries in the Greek economy.
- Overall, there was a significant shortening of payment terms by businesses polled in Greece in a bid to minimise the risk of B2B customer payment defaults. Payment terms were reduced by two weeks to stand at an average of 36 days from invoicing. The most important factor in setting terms was the cost of obtaining new credit required to fill potential liquidity gaps caused by late payments.
Sharper focus on credit risk management amid payment defaults concerns
- The main concern looking ahead expressed by companies polled in Greece is potential problems in global trade caused by geopolitical tensions and a weakening worldwide economy. This is because the shipping sector is one of the largest industries in the country and particularly vulnerable to such disruption.
- A range of other worries were also reported despite expectations of a slightly improved outlook for the domestic economy. Companies polled are wary about potential obstacles to business growth, which include climate change regulations, new tariffs and trade restrictions such as the enforcement of capital controls on exports involving the logistic-shipping maritime transport sector.
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 Greece.
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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