A more dynamic approach to selling on credit was found among companies polled in Turkey. Payment terms offered in B2B trade were the longest across our survey of Eastern Europe.
The 2023 Payment Practices Barometer survey for Turkey 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 Turkey
B2B sales on credit trend upwards amid longer payment terms
- B2B sales that companies polled in Turkey made on credit rose by 10% during the past year, and now average 46% of all B2B sales. This was particularly reported by the transport and storage sector and is largely due to resilient domestic demand and strong export performance. It was also underpinned by a far more relaxed payments policy aimed at supporting sales, with payment terms now standing at a 55-day average from invoicing, up from 42 days a year ago.
- However, the electronics/ICT sector, an essential element of the Turkish economy, bucked the trend with more stringent payment terms. Payments terms recorded in Turkey were the longest across our survey of Eastern Europe, and one consequence was that companies polled in Turkey also said they had a longer wait to collect payments from B2B customers.
Moderate optimism amid concerns about inflation and energy costs
- The consequences of persistently high inflation are the chief concern for the year ahead expressed by companies polled in Turkey. Even though the level of inflation is easing, businesses said they worry that it will continue to affect the domestic and global economies for a long period. This anxiety was particularly reported in the textile/clothing sector.
- Another concern is that it will prompt further monetary tightening by central banks and thus slow down the recovery of the global economy. Fluctuating energy prices that affect production costs are also a worry for the year ahead among Turkish companies. Despite the volatility surrounding economic growth in Turkey during the past few years, there is optimism about the coming months for both demand and profit margins
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 Turkey 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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