A recent study analyzing data as of May 31 has revealed that only 20% of companies in Portugal adhere to the agreed payment terms with their suppliers.
This issue is widespread across all sectors and regions, with large companies showing a higher rate of non-compliance, as just 4% meet their payment deadlines.
The study also indicates that 43,000 companies are at risk of significant delays. This risk assesses the likelihood of a company experiencing a payment delay of more than 90 days to at least one creditor in the next 12 months.
Despite these figures, the study notes a “slight improvement in the percentage of compliant companies,” with the current figure at 20%, up from 15% five years ago. The average number of days late for payments has also decreased from 26.6 in 2020 to 22.6 currently.
Nevertheless, this progress lags behind the European Union (EU) average, increasing the gap between Portuguese companies and those in the EU.
The percentage of EU companies meeting deadlines has risen from 38% in 2013 to 49% by the end of 2024.
“Most commercial transactions between companies are conducted on credit, based on trust between businesses. Payment delays not only erode this trust but also negatively impact creditor companies, affecting their ability to secure loans and make growth-oriented investments. This creates a vicious cycle affecting companies in the same customer and supplier chain, particularly impacting more vulnerable companies like SMEs,” said Teresa Cardoso de Menezes, general director of Informa D&B.
Informa D&B is a business information company. According to an official source, its business database is the most used in Portugal and reportedly has over 500,000 users.
Informa D&B is part of the world’s largest business information network, D&B Worldwide Network, with access to data on over 500 million economic entities worldwide.
