Despite negative impacts of the pandemic, businesses in Ireland remain upbeat
Introduction
Some changes in credit policies of irish businesses did occur after the onset of the pandemic, such as the trend that has become commonplace across Europe, to seek credit assessment information direct from customers. However, for the most part, businesses in Ireland have chosen to maintain the same credit policies, with a majority committing to a greater use of self-insurance next year.
There are still many unknowns concerning the pandemic. Will frequent lockdowns be required during 2021? Much will depend on how the virus mutates and whether an effective vaccine can be rolled out. Most of the businesses we spoke to acknowledged these challenges and told us that maintaining adequate cash flow presents the main business challenge facing them next year.
Key takeaways from the report
- Trade credit is currently involved in 58% of the B2B sales of the businesses surveyed in Ireland. This compares to the 55% average for Western Europe
- Majority of businesses opt to maintain credit policies
- Late payments increased by 76% year-on-year
- Following the onset of the pandemic, nearly half of the businesses surveyed told us they began sourcing credit information directly from the customers more often
- The majority of survey respondents told us they expect to see an improvement in their customers’ creditworthiness, the global and domestic economies and international trade next year
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Ireland 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:
- Agri-food
- Consumer durables
- Construction
- ICT/electronics
- Business services
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