Credit policies remain fairly constant as business continues growth commitments
Introduction
Over recent years, Switzerland has been operating within an environment of heightened insolvency where businesses were using trade credit to both grow export sales and provide short-term finance to boost customer liquidity. Although the use of trade credit is down a little on last year’s figures, most businesses reported retaining last year’s credit policies after the onset of the pandemic. In addition to offering more trade credit than prior to 2019, this includes a commitment to trade credit insurance and the stated desire to growth both domestic and international trade accounts.
This year’s Payment Practices Barometer Survey took place after the onset of the pandemic. Comparing the results to last year has given us a valuable insight into how businesses are dealing with the virus and with the subsequent recession.
Key takeaways from the report
- Businesses in Switzerland offered the greatest percentage of trade credit to larger enterprises on the domestic market with a strong credit record and payment history
- Credit policies target domestic customers and export sales
- Despite cautious approach to terms, late payments grow by 70%
- As economic crisis bites, businesses in Switzerland start to report distress
- Looking ahead, the majority of businesses polled told us that they plan to use trade credit insurance in 2021 to help them protect their accounts receivables during the ongoing recession
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Switzerland during the COVID-19 pandemic and global recession, please download the complete report.
The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Chemicals
- Construction
- Construction materials
- Stee-metals
- Transport
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