To minimise the risk of incurring severe liquidity issues amid late or non-payment by B2B customers, companies polled in Romania took a wide range of measures.
The 2023 Payment Practices Barometer survey for Romania 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 Romania
Cash flow struggles prompts cautious approach to B2B trade credit
- A prudent approach to the use of trade credit in B2B transactions was evident among companies polled in Romania. Our survey found that an average 45% of all B2B sales were made on credit, with 55% of sales transacted on a cash basis. There was particular caution about granting trade credit in the steel-metals sector, probably reflecting the current uncertain economic and business landscape.
- Payment terms were set at an average of 36 days from invoicing by companies polled in Romania, with 53% of companies polled reporting no significant change to terms granted to B2B customers during the past 12 months, although longer payment terms were found in the transport sector. The main factors in setting payment terms was the cost of seeking external finance along with profit margins.
Pressure on operating costs and inflation worries companies
- As they look to the year ahead, companies polled in Romania are significantly concerned about the volatile trend in the cost of raw materials and of input for production. The cost of energy and commodities were most often cited by companies polled, a particular worry for companies in the Romanian agri-food sector.
- Across various sectors of Romania’s market, businesses surveyed told us this uncertain cost trend would make budgeting difficult, having the potential to seriously dent profit margins in the coming months. Despite its gradual softening, the threat of persistent inflation was another key anxiety expressed in our survey, particularly the impact of energy inflation on businesses’ operating costs.
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 Romania 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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