Late payment delays weigh heavily on economy

A person pays their QR invoices using a smartphone, computer, and calculator.

(02.08.2023) Late payment delays constitute a significant obstacle to the smooth operation of Swiss businesses. Nearly a quarter of them (24%) report that uncertainties related to this issue disrupt their growth strategy, according to the European Payment Report by the debt collection agency Intrum.

Swiss firms spend an average of 59 days per year dealing with payment delays, which is 15 days less than European businesses (74). Across the entire continent, this phenomenon results in a loss of 275 billion euros for the European economy, equivalent to nearly one-third of Switzerland's GDP. According to Thomas Hutter, Executive Director at Intrum, "What was once a mere inconvenience has now become a top priority on management's agenda."

In this context, half of Swiss companies aim to improve payment management to reduce delays. However, many of them face a lack of internal expertise and resources.

Furthermore, six out of ten companies fear that some of their clients may be unable to honor their invoices on time. However, this phenomenon does not seem to affect all businesses in the same way. Indeed, 38% believe the risk will worsen in the coming year, while 28% expect it to decrease. The remaining 34% consider the situation will remain stable.

The issue of payment delays is a strategic priority for a majority of Swiss firms. The most frequently used solutions to guard against them include advance payments (47%), credit checks (42%), and credit insurance (35%).


Last modification 02.08.2023

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