Payment delays are posing a challenge to companies
This is confirmed by the current EOS study “European Payment Practices,” which surveyed 2,200 financial decision-makers across 11 European countries.
One in four invoices is paid too late or not at all.
Payment delays and defaults reduce profits and postpone planned investments.
Less than half of the companies have a dunning workflow that has largely been transformed into a digital process.
Every second company offers digital payment methods.
One-third of the companies rely on external service providers in receivables management.
More invoices are being paid late
Current EOS survey on receivables management in Europe
The EOS study “European Payment Practices” has been providing recurring insights into the international economy’s views on receivables management since 2007. Among other findings, the current study concludes that many European customers do not take payment deadlines particularly seriously. For companies, this often means less liquidity and higher costs. So far, only a small share of them have drawn the necessary conclusions and are consistently driving forward the digital transformation of their dunning process.
What are the reasons for the poor payment morale in business transactions? What consequences does this have for companies? And what expectations do they have for the future? You can find answers to these questions and other results of our survey in this short video.
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Complete digital transformation of dunning remains a topic of the future
More and more companies are needing to wait longer for invoice payments or are required to write off their receivables as uncollectible. Every fourth invoice is paid late or not at all. Unpaid receivables often trigger a domino effect. Many companies are already familiar with this problem: They suspect payment difficulties with their own customers as the most important reason for payment delays or defaults among business customers. In second place is the use of supplier credits, most likely to protect their customers’ own liquidity. However, the companies say that processing manual or partially digital workflows also causes delays in the timely payment of receivables.
For companies, the poor payment morale of their customers has tangible consequences: financial decision-makers report declines in profits, higher interest expenses, liquidity bottlenecks, and postponed investments. One in five companies even sees its very existence at risk. In order to counteract this, companies are focusing on shorter payment terms. However, most are still hesitant to roll out digital payment methods and completely digitize receivables management. Fewer than 47 percent of European companies can be said to have largely digitized their dunning processes.
Concerns about private customers, yet companies stay positive
In Croatia, nearly half of respondents suspect deliberate non-payment by private customers – the highest share in Europe. Yet companies remain comparatively optimistic about the future and expect payment practice to improve.
Our current study shows that payment morale in Europe is a challenge that we must not underestimate. Companies should prepare for this development, as it places high demands on liquidity management.
Marwin Ramcke
CEO EOS Group
How can the payment habits of late payers be improved?
Professional receivables management becomes a success factor
The weak economy gives little hope that payment morale will improve in the next two years. The globally unstable environment is making it increasingly difficult for creditors to enforce their claims. Without a professionally organized receivables management system, the risks of liquidity bottlenecks, profit losses, and even insolvency continue to rise.
To collect outstanding payments more quickly and consistently, companies would like policymakers to simplify legal procedures and reduce bureaucracy. The increasing digitization of receivables management could also have a positive effect on payment morale in business transactions, enabling companies to respond more quickly and effectively to payment delays.
Soft factors gain strategic importance
The findings of the survey "European Payment Practices" clearly demonstrate that soft factors are playing a decisive role in shaping European business strategies. Alongside the growing recognition of sustainability —now seen as essential by half of all interviewed financial decision-makers— the far-reaching impacts of the skilled labor shortage are increasingly influencing corporate performance and payment practices.
Sustainability's ascent
Half of all respondents in European companies see sustainability as vital to corporate success.
0
percent of companies
“Sustainability isn’t just a trend – it’s become an essential criterion for business success.”
Christian Emus, Corporate Development EOS Group
Taking action for the planet
More than half of European companies are actively integrating sustainable practices.
0
percent of European companies
Future-Focused
A significant majority of respondents want companies to prioritize sustainability even further.
0
percent of respondents
Skills shortages burden companies
Almost two-thirds of enterprises in Europe currently do not have enough qualified staff, which impairs business processes.
0
percent of enterprises
Skills shortages delay payments
Around half of companies see misconduct and staff shortages as the main causes of payment delays or defaults in the B2B sector.
46.0
Misconduct
40.0
Staff shortages
All study results at a glance are available in our whitepaper
Download the EOS study “European Payment Practices” free of charge
Hesitancy in the digital transformation process of European receivables management is slowing companies down and exacerbating liquidity problems. The current EOS study “European Payment Practices” shows that Germany in particular has significant ground to cover, while Spain and Romania are leading the way.
How can payment discipline in Europe be improved? Companies’ top demands include less bureaucracy and more effective tools to recover outstanding payments.
2,200 financial decision-makers from a wide variety of companies.
Countries
Eleven countries from Western and Eastern Europe: Bulgaria, Germany, France, Croatia, Poland, Romania, Switzerland, Slovenia, Spain, the Czech Republic, and Hungary.
Period
The survey was conducted via online and telephone interviews with the support of the independent market research institute Kantar between March 27 and May 14, 2025.
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