European Risk Climate: More than 25% of European Business Failures are the Result of B2B Customer Defaults

Posted by Joachim Bartels | Oct 12, 2012 | Credit Information, Credit Insurance, Credit Management, Credit Management Consulting, European Union, France, Member, Member News, Platforms / Workflow Tools, Risk Solutions - Prediction, Tinubu Square | 0 |

B2B credit risk exposure is now at the top of C-level priority concerns. According to Tinubu estimates, customer receivables represent more than a third of a B2B company’s assets. More than 25% of business failures in Europe are the direct result of B2B customer defaults. Write offs of bad customer debt have grown from an average .5% of revenues to 1% or higher, depending on industry and country. Outstanding trade credit in Europe is five times the total volume of short-term bank credit.

Source: Tinubu Square

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Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

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