Sharp downward trend in B2B sales on credit of Danish companies. Key factors are weak domestic demand, strong export headwinds and enhanced perception of the risk of B2B payment default.
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.
The 2023 Payment Practices Barometer survey for Denmark 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 Denmark
Selling on credit in B2B trade decreases as inflation continues to bite
- The effects of persistent high inflation were evident in a sharp downward trend in B2B transactions made on credit by companies in Denmark. They fell to an average 49% of all sales to B2B customers, down from 55% last year. Weak domestic demand due to inflationary pressures was a key factor, along with strong export headwinds and a stronger perception of the risk of B2B payment defaults.
- Many companies polled in Denmark told us they introduced stronger credit control processes, and this had a clear impact in reducing the level of bad debts written off as uncollectable. These now stand at just 3% of all invoiced B2B sales, down from 7% last year. The outlier here was the electronics/ICT sector, where 40% of businesses reported waiting significantly longer to cash in overdue payments.
Cautious optimism amid anxiety about sluggish global economy weighing on export demand
- Widespread concern about a sluggish recovery of the global economy weighing on export demand is the major preoccupation looking ahead for companies polled in Denmark. They fear this will weigh heavily on foreign demand, a particular worry expressed by SME wholesalers in the electronics/ICT sector, who also have similar anxiety about the effects of stubborn inflation, despite its easing.
- Cautious optimism about prospects for the year ahead was expressed by businesses polled in Denmark despite their range of worries. 74% of companies told us they anticipate an increase in demand across various sectors leading to a rise in sales.
Interested in finding out more?
Please download the full report for a complete overview of the 2023 survey findings of the Atradius Payment Practices Barometer for Denmark.
For a complete overview of the survey results for Western 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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