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Summary conclusion
The economic crisis continued to impact businesses across the world in 2010. More than half of the respondents to the Payment Practices Barometer have experienced late payments without prior agreement and half of the respondents have been asked to extend their payment terms. Whether buyers were trying to take advantage of lingering recessionary sentiment from 2009 or were really still struggling to meet their payment responsibilities, the result has been that respondents across the survey scope have felt the impact of their customers’ actions in the form of payment delays that have frequently resulted in the need for them to take actions to ensure continued efficient responses to their own financial responsibilities.
Generally respondents have been managing this through a combination of credit management practices employed both in the decision process about offering credit terms and in the credit management process following the sale. For most companies two or three credit management processes or considerations are used in conjunction, however for some of the respondents more than three factors or practices are considered when making credit management decisions.
Ultimately the goal of business is to promote safe trade between all parties involved in the transaction. The responses of our survey participants highlights the challenges they are facing in achieving this goal, the impacts of the payment behaviour of their buyers and some of the measures they are taking to manage their receivables portfolios. While some cultural preferences prevail, there are opportunities for businesses across the world to learn from other markets and adapt new procedures that can improve their on-time receipt of payment for the products and services they sell on credit.
Over the past year, how have your credit management practices changed?
Basis: companies surveyed in 22 countries all over the world
Source: Payment practices barometer - Summer 2010
 Download full Payment Practices Barometer group report
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Date: September 2010
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