Coface’s 2023 Germany Corporate Payment Survey Reveals Increasing Payment Delays, Growing Use of De-risking Strategies
As many COVID-19 support measures end and the impact of energy subsidies stabilizes, Coface’s 2023 Germany Corporate Payment Survey reveals an increase in the number of companies (76%) reporting payment delays this year. This figure represents a significant uptick from the 2020-2022 period but remains slightly below the 2019 level (85 percent).
While overall payment behavior shows resiliency, the business outlook for many respondents appears pessimistic. Only 13 percent of respondents believe their current situation is better in 2023 compared to 2022, with 41% perceiving it as worse. The outlook for 2024 is uncertain, with just 20% expecting a recovery and 28% bracing for further challenges.
In response, German businesses are turning to de-risking strategies aimed at reducing their reliance on individual countries, suppliers, or clients. In 2023, 12% of respondents reported embracing de-risking strategies, with another 25% of German companies planning to adopt such strategies over the next three years.
The changing business environment has also reshaped perceptions of favorable business locations, with Germany's support declining in comparison to the United States and Eastern Europe. Although China has experienced increased attractiveness, it still trails historically.
The results of Coface’s 2023 Germany Corporate Payment Survey highlight changing dynamics within the German business environment and emphasize the critical role of resilience and adaptability amidst today’s unpredictable economic conditions.
For a full assessment of survey results, read our full publication.