Companies polled in Hungary sharpened cash flow focus due to increased B2B customers' credit risk affecting their business.
The 2023 Payment Practices Barometer survey for Hungary 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 Hungary
Cash flow focus sharpened by an increased risk of B2B payment defaults
- An average 10% decrease in the proportion of B2B sales transacted on credit by companies polled in Hungary represented the sharpest drop across all markets surveyed in Eastern Europe. This was probably a reflection of subdued domestic economic activity, although trade credit still plays a vital role among Hungarian companies, comprising an average 46% of all the country’s B2B sales.
- It is also an important source of short-term finance with 50% of Hungarian companies polled requesting trade credit from suppliers for that reason. However, our survey found that 45% of companies received less than they requested, signalling an increased aversion to risk when trading on credit
Widespread worry about persistent inflation affects the long-term outlook for the economy
- Anxiety about the ongoing impact of inflation is the primary concern of companies polled in Hungary about the year ahead. This was clearly expressed, even though a gradual easing of inflationary pressure in the Hungarian economy has already begun. Businesses polled said a particular concern was the effect of inflation on production costs that cannot be fed through to price-sensitive customers.
- Companies polled in Hungary also fear that tight monetary policy designed to curb inflation will further weaken economic activity. High energy costs was another area of concern, while the construction sector reported worry about the volatile costs of production input materials and resources.
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.
Interested in finding out more?
For a complete overview of the 2023 survey results for Hungary and Eastern 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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