EOS four-country survey 2007. European payment habits: every country pays differently

Hamburg, 21 April 2008 – Long credit terms are no guarantee of punctual payment. This is just one of the findings of the EOS four-nation survey of ‘European Payment Habits’ in 2007.

In the survey, conducted in October 2007, EOS and the independent market research organization Ipsos asked 200 companies in Greece, Poland and Russia respectively, and 45 in Romania, about the prevailing payment practices in their countries. The survey results show that cultural differences are reflected in financial behaviour, in other words payment practices, adherence to terms of payment and/or bad debt losses, among other things.

The findings provide companies active in these countries with valuable tips on how to organize their credit management. For example, Greek companies allow their customers an average of 105 days before sending a first reminder. That is a comparatively long period: in Russia the corresponding figure is 78 days, in Romania 36 days and in Poland just 32 days (see chart). Despite their long credit terms, however, the Greeks have only moderate success: just 68% of their outstanding debts are settled punctually. In Russia, the proportion is 84% and in Romania – despite the considerably shorter credit term – it is still 67%. In Poland, only 9% are paid on time.

All together average outstanding debts make up 10% of Polish companies’ overall sales. This is the lowest level of the four countries. While the comparable figure is similar in Russia (12%) and Romania (15%), it rises to 25% for Greek companies. Greek companies, moreover, are owed comparatively large sums of money by their debtors: up to EUR 10,000 on average. They are obliged to write off 2.5% of their overall receivables. Polish companies, similarly, have to write off 2.6% of their receivables. The figure in Russia and Romania is 2%.

EOS four-country survey 2007: European payment habits

Towards the end of 2007, the EOS Group, in cooperation with the independent market research organization Ipsos, asked a total of 645 companies in four countries about the prevailing payment practices in their respective countries. 200 enterprises in Greece, Poland and Russia respectively, and 45 in Romania, were asked questions on all aspects of their payment experiences, economic trends in their home country and the general topics of information management, arrears management and receivables management.

The EOS Group

With around 3,100 employees in 21 countries, the EOS Group, an Otto Group company, is one of the leading financial services undertakings in Europe. The 37 operating companies in the Group are active in the Information management, Arrears management and Receivables management business units and look after some 20,000 clients around the world – from banks and insurance companies, through manufacturing industry and the mail order segment, right up to public utilities, telecommunications firms and IT companies.

EOS Group Contact:

Lara Flemming
External Communications
Tel.: +49 (0)40 2850-1560
e-mail: l.flemming@eos-solutions.com