GRONINGEN, September 19, 2019 – Just like in the first quarter of 2018, Dutch companies also faced slow payers at the beginning of 2019. An analysis by Payt, provider of debtor management software, of over 1.8 million invoices shows that just over half of the invoices in the first quarter were paid on time.
In the first quarter, as in 2018, companies in the rental of movable goods and business services faced poor payment practices. They had to wait just under a month (29 days) for payment. These are the companies that, on average, wait the longest for their money. The healthcare sector turned out to have the fastest payers in the first quarter: the money was transferred within twenty days.
Better than in 2018
In 2018, the number of payments received before the first reminder increased from 60 percent to 63 percent. The upward trend that started last year has continued in the first quarter of 2019. In this quarter, 63.4 percent of the invoices were paid before the first reminder. “The fact that the economy is currently booming is reflected in these figures. The payment practices of companies have been improving for some time. For us, these are signals that progress is slowly but surely being made in the speed of getting invoices paid,” said Payt director Sander Kamstra.
Wholesale and retail customers loyal to invoice
The wholesale and retail sectors have the best payment practices: less than 1% of the invoices from the first quarter remain unpaid three months after the end of the quarter. Kamstra finds it remarkable that payment practices in retail are better than in other sectors. “That is incredibly surprising: retail is a sector that is not having an easy time. That is no longer a secret to anyone. That they are able to collect invoices faster is very good for the sector,” says Kamstra.
Just like in most of 2018, companies in consulting, research, and business services are dealing with the worst payers, with 1.6% of the invoices still unpaid three months after the end of the quarter.
Payment practices vary significantly by province
Companies located in Drenthe and Groningen received payments the fastest in the first quarter of 2019. It took an average of 22 days for them to receive the money. The provinces of Friesland, Gelderland, and Flevoland lag significantly behind Drenthe and Groningen. Entrepreneurs there had to wait 27, 26, and 25 days, respectively, for their money.
