The Atradius Payment Practices Barometer survey for Western Europe in November 2020 revealed that businesses are cautious and have reduced the use of trade credit due to the pandemic and recession. The average use of trade credit is down to 55% from 60% in the previous year. Payment terms have also increased by an average of 12 days. Overdue invoices have more than doubled, with write-offs increasing from 2% to 7% of total invoice value. The majority of businesses in Europe have lengthened their DSO, with an average increase of less than 10%. Despite these challenges, a modest majority of businesses in Western Europe are cautiously upbeat.
