Prior to the pandemic, trade credit was used in more than 80% of B2B sales in the Czech Republic. After the virus brought most of the world to a standstill, this plummeted to about 50%.
The Czech Republic’s export-to-GDP ratio is one of the highest in Europe. Although rising inflation had caused some recent interest rate increases, prior to 2020 the country had been enjoying robust growth. When the COVID-19 pandemic struck, the economy was already facing some external headwinds. This was largely caused by heavy dependence on international value chains and a vulnerability to a slowdown in the EU, its main export destination.
This year’s Payment Practices Barometer survey was conducted during the COVID-19 pandemic and provides valuable insight into how businesses of all sizes and sectors throughout the Czech Republic are coping with the sudden economic downturn.
Key takeaways from the report
- Amount of overdue invoices surges during the pandemic
- SMEs with a poor credit record increasingly refused credit by suppliers
- Czech Republic experiences rapid drop in credit sales
- Supplier cash flow hit hard in COVID-19 economic crisis
- Majority of businesses concerned about falling demand for products and services in 2021
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in the Czech Republic during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Steel -metals
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