Cash flow issues remain a major concern for companies polled in the Czech Republic, which said they spent more time and resources on chasing unpaid B2B invoices.
The 2023 Payment Practices Barometer survey for the Czech Republic 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 the Czech Republic
Significant switch towards more liberal trade credit policy
- A clear change of approach to selling on credit in B2B trade was found among companies polled in the Czech Republic as they granted longer payment terms to customers.
- These terms now stand at an average of 51 days from invoicing, up from 43 days last year, and were most probably offered in a bid to encourage sales in a period of weak domestic demand and waning export growth.
Cautious optimism amid ongoing worries about inflation
- The major worry looking ahead among companies polled in the Czech Republic is that inflation will continue to have a negative impact on the domestic economy, further weakening domestic and foreign demand.
- Anxiety was also widely reported about companies facing liquidity shortages, as well as worry about difficult access to external finance, due to tighter monetary policy and high borrowing 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 Czech Republic 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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