In Germany average payment default reaches record level in December

According to the information service provider CRIFBÜRGEL, 10.5 per cent of companies in Germany either paid their invoices late, or not at all, in December 2020. Based on an analysis of the payment behavior of approximately 450,000 companies the average payment delay companies reached a new yearly peak of 35.5.

Development of payment behavior in 2020

Although the percentage of German companies in arrears fell overall during the year

from 13.1 percent in January 2020 to 10.5 percent in December 2020, the average period for overdue invoices increased from 26.4 to 35.5 days. "Companies that are still doing well economically have a high willingness to pay and do not want to fall into arrears under any circumstances. Around 10 per cent of businesses have such severe financial problems that their ability to pay is limited. When these companies do pay their bills, it is only with a significant delay in payment", observed Dr. Frank Schlein, CRIFBÜRGEL Managing Director.

In practice, the figures mean that 10 out of 100 B2B customers, for example, are currently not paying their invoices or are doing so only with a massive delay.  These payment delays are often to the detriment of SMEs and small businesses, since a lack of liquidity, e.g. triggered by late or unpaid invoices, is considered one of the most frequent causes of insolvency. In addition,  this also leads to increased administrative work and therefore additional costs. A vicious circle  can develops, where companies have to do without their own investments for longer than planned, or are unable to fulfil orders due to late payment of invoices. If their customers are reluctant to pay, small companies can find themselves in financial difficulties.

Companies in Berlin with the highest payment delays

There are clear regional differences in the average payment delays of companies. Companies in Berlin are the most likely to be overdue with their payments, on by an average 68.4 days. Correspondingly high average delays can also be seen in Brandenburg (average delay 56.8 days) and in Rhineland-Palatinate (48.7 days). In contrast, in Thuringia, the average delay is 19.6 days.

Payment morale collapses in the hotel and restaurant industry and in the arts and entertainment sector

The cultural, entertainment and leisure industry currently  suffer from the worst payment morale. Invoices from businesses in this sector are currently paid 77.6 days late (in January 2020: 32.8 days). In addition, the proportion of companies here that do not pay or pay late rose from 11.5 percent in January to 17.2 percent in December. Payment morale in the hospitality industry has also plummeted, as while in January 2020 invoices were paid on average 33.5 days late, the current figure has risen to 59.4 days.

The manufacturing sector has experienced a smaller increase, from 17.3 days to 22.9 days over the course of 2020.

More than one in four Berlin companies  is in arrears.

In Berlin, the proportion of late and non-payers is the highest at 26.1 percent. In Hamburg, as well, the rate of 17.1 percent is higher than the national average (10.5 percent). Payment morale is currently best in Thuringia, as  here only 6.5 percent of companies do not pay or pay late.

Data basis:

Based on the B2B business database DDMonitor, CRIFBÜRGEL regularly analyses the creditworthiness and payment behavior of more than 450,000 companies. Participants in the DDMonitor (Deutscher Debitoren Monitor) submit the payment experiences made with their business partners anonymously.