The gradual recovery and modest growth of the Italian economy forecast for 2014, as highlighted for many other Eurozone countries, will be driven by a significant increase in global trade, which will contribute to an increase in exports also for Made in Italy. Internally, various factors such as the limited progress in terms of structural reforms, the weakness of the economic performance, the persistent difficulties in accessing credit by companies, in addition to the high public debt, make Italy vulnerable in the event of a possible return of the crisis in the Eurozone. In such a context, which is still decidedly uncertain from an economic point of view, most of the companies interviewed by Atradius in Italy believe that a further contraction in the demand for goods and services could negatively affect the ability to maintain adequate cash flows for this year. The recovery of credits owed to customers worries 21,7% of Italian companies, against 23% of respondents in Western Europe. Such an opinion reflects the anchor high level of non-payments in our country, expected to increase in terms of volumes during 2014.
The concerns of Italian companies regarding debt collection and cash flow maintenance reflect the extent of commercial credit risk in the country. On average, 42,2% of the total value of claims owed by agents is not paid when due. The figure is evidently above the average for Western Europe (37,6%). The wholesale/retail/distribution sector, and SMEs, are the most affected by late payments. In the face of payment extensions granted on average of 48 days from the date of the invoice (average for Western Europe: 32 days), respondents in Italy declare that customers in general take on average about one month more from the invoice due date , before honoring their payment commitments (23 days c survey average). This is particularly true for payments claimed by SMEs, in all Italian sectors covered by the survey. Considering that an average of 6,5% of the value of bad debts has been declared still unpaid 90 days after the due date, it can be concluded that the operators interviewed in Italy lose on average 35% of the value of the credits if these are not paid within that period. Average collection times from 1 to 30 days are reported by 45% of the interviewees; from 31 to 90 days by 36% of the interviewees, while around 19% of the latter (12,7% in Western Europe) record deadlines of more than 90 days.
The trade credit risk profile that emerges from the survey in Italy confirms the importance of adopting trade credit management policies. This starts from the knowledge of customers' payment behaviors, as an incorrect evaluation could lead to liquidity problems for the supplier. The majority of those interviewed in Italy (56,3% in reference to domestic customers and 45,3% in relation to foreign customers) indicate liquidity shortages as the main reason for late payment by customers. The data is higher than that recorded in Western Europe (46,6% of respondents in relation to domestic customers and 35,2% to foreign customers). SMEs in the wholesale/retail/distribution sector are the most affected by payment delays due to liquidity problems of customers on the domestic market, while Italian manufacturing SMEs are the most exposed to payment delays by foreign customers. However, 76,4% of those interviewed in Italy (against 59,2% in Western Europe) use credit management tools to protect their business from commercial credit risk. Only positive sign, symptom that businesses are aware of the risks they face on the domestic and export markets and are proactive in managing them. 46,7% monitor customer risk (respondents in Western Europe: 35,9%). Before selling on credit, 41,0% of those interviewed in Italy (against 43,3% in Western Europe) check the customer's solvency through bank information, balance sheets and by purchasing information reports.
