GRONINGEN, 19 September 2019 – Just as in the first quarter of 2018, Dutch businesses faced slow payers at the start of 2019. An analysis by Payt, provider of credit management software, of more than 1.8 million invoices shows that just over half of all invoices in the first quarter were paid on time.
In this period, as in 2018, companies in the rental of movable goods and business services experienced the slowest payment practices. On average, they had to wait just under a month (29 days) to receive payment, making them the businesses waiting the longest for their money. By contrast, the healthcare sector proved to be the fastest payer in the first quarter, with invoices settled within twenty days.
Improvement compared with 2018
In 2018, the proportion of invoices paid before the first reminder rose from 60% to 63%. This upward trend continued in the first quarter of 2019, when 63.4% of invoices were settled before a reminder was required.
“The fact that the economy is currently booming is reflected in these figures. Payment practices have been improving for some time. For us, these are clear signs that progress is slowly but surely being made in the speed with which invoices are paid,” said Payt director Sander Kamstra.
Wholesale and retail among the best payers
The wholesale and retail sectors achieved the strongest payment performance: fewer than 1% of invoices from the first quarter remained unpaid three months later. Kamstra finds it striking that retailers outperformed other industries:
“That is incredibly surprising. Retail is a sector that is under considerable pressure – that’s no secret. The fact they are managing to collect invoices more quickly is very good news for the sector,” he said.
Meanwhile, companies in consulting, research, and business services continued to face the worst payment behaviour, with 1.6% of invoices still outstanding three months after the end of the quarter.
Payment behaviour varies by region
Regional differences were also significant. Businesses based in the Netherlands, Drenthe and Groningen received payments the fastest in the first quarter of 2019, with an average wait of 22 days. In contrast, companies in Friesland, Gelderland, and Flevoland faced much longer delays, waiting 27, 26, and 25 days respectively for payment.
