Nov. 2020 | Covid-19 |

At Innovation Summit we had Morten Trasti, Debt Economist at Intrum, joining us. Intrum’s recently launched their latest European Payment Report, which focuses on the current situation and how that affects the financial wellbeing of consumers and payments and share his thoughts on the COVID crisis and payment challenges into the future.

Morten outline how Covid-19 has impacted 10,000 businesses across 29 countries in Europe. Results show that many businesses are fighting for survival. Sustaining liquidity and cashflow by ensuring timely payment has become their lifeline.

Some of the key highlights from the presentation is highlighted below: 

  • Recession is the top challenge for companies during Covid-19: up from 26% pre-crisis to 44% during crisis say recession has severe impact on their business.
  • Hospitality and leisure has taken a big hit. About 4 in 10 survey respondents from this sector say that a recession will have a severe impact on their businesses – the highest figure of the 11 industries surveyed.
  • A majority of companies say late payments threaten their survival during the Covid-19 crisis. SMEs are particularly vulnerable for unfavorable payment terms.
  • Half of European companies seek initiatives to prevent late payments from corporations and new legislations.

The full report can be downloaded here.