The economic changes in recent years have led to a significant reduction in payment terms for companies. Since the end of the zero interest rate phase, the average payment term for corporate customers in Austria has fallen from 24 to 19 days. Private customers now have to pay their bills within 12 days on average, a decrease from 2021, when it was still 15 days.
The reasons for this development lie in the weak economy, rising insolvencies and higher financing costs due to increased interest rates. Companies need to secure their liquidity and are responding by collecting payments faster. As interest rates rise, the opportunity cost of outstanding receivables also increases, as capital becomes expensive and could be better invested elsewhere.
Experts such as Christian Giehler CEO from Coeo | AT emphasize that swift communication is crucial when it comes to outstanding claims. The faster reminders are sent, the greater the chance of actually receiving payments. This is especially important for corporate customers, as delayed payments often lead to difficult situations.
In addition, surveys show that shorter payment periods have a positive influence on payment behavior. Companies that remind their customers more quickly increase the probability that receivables will be paid on time. The development shows that proactive receivables management and the optimization of liquidity are becoming increasingly important for companies in times of higher interest rates.
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About the coeo Group
The coeo Group is the leading technology-based debt collection company in Europe. With a clear focus on combining groundbreaking AI and first-class customer service, coeo is setting new standards in the industry and continuously driving the optimization and further development of receivables management and all other business processes.
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