photo of Vladimir Ivanovs (V).
For many people in Lithuania, the problem is the debtor’s and partner’s obligations not fulfilled on time, according to the latest European payment report published by the credit management company Intrum.
77% of respondents in Lithuania added that the problem for them is unpaid debtors’ obligations. At that time, a fifth of the companies in Lithuania were counting increased losses due to unpaid customer debt.
To this day, there is no shortage of business, so the need for every late payment or unsecured borrowing increases. Since the company’s growth and development possibilities largely depend on a smooth cash flow, obstacles and obstacles in this area stop investments, which in turn contribute to the growth of the entire economy, Ilva Valeika, Director of Intrum in the Baltic States, is quoted in the report.
83% of the respondents also stated that paying bills after the agreed term is a problem. 67% of company representatives named the long payment terms required by partners as a problematic trend. Another 56% cited client bankruptcies as a problem.
According to the report, 43% of respondents in Lithuania plan to prioritize growth each year.
Most of the company representatives who participated in the survey emphasized the importance of fulfilling obligations on time. 65% of them claimed that faster debt collection would allow the company to expand its range of products and services, and 63% of the respondents claimed that it helped to pay their supplier’s invoices faster.
Another 60% of company representatives claimed that smoother payments would allow increasing company investments in the area of sustainability.
44% of the Lithuanian public said that after ensuring smoother cash flows, they can hire more employees, 43% more actively implement digital innovations, and 34% expand geographically faster.
Delayed payments lead to a kind of domino effect, when one person’s debts limit the other’s ability to pay their bills on time. Therefore, financial discipline and timely payment of accounts is a sign of ethical business that understands the importance of its actions for the wider environment and general economic processes, says I. Valeika.
According to the data of the European payment report, the gap between the desired and actual payment terms in Lithuania in the private consumer segment is 10 days, in the business segment 12 days, and in the public sector 18 days.
The European education report was prepared on the basis of a survey of representatives of companies operating in different fields in 29 European countries. In total, more than 11,000 company representatives were interviewed.
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