Romanian micro-enterprises are heavily-indebted, study shows

The level of indebtedness defined as total debt to total assets of the Romanian micro-enterprises reached 73%, according to a report by local financial services provider Instant Factoring.

The most affected are the companies with a turnover of less than EUR 50,000, which have to deal with an indebtedness level of 81%.

The indebtedness in the retail trade is 90%, while companies in the health sector and professional services are better capitalized, therefore their indebtedness levels are only 49% and 52% respectively.

The analysis is part of a study conducted by Instant Factoring on the evolution of micro-enterprises (companies with turnover up to EUR 500,000) based on preliminary data for 2018.

Out of the 525,000 companies in the sector, 37%, meaning 197,000, registered negative equity. The current liabilities of local micro-enterprises totalled RON 122 billion (EUR 25.5 bln) and accounted for 60% of their total debts. Meanwhile, their total receivables were RON 58.8 billion (EUR 12.3 bln).

The average period for getting paid was 164 days and the average period for paying the debts was 341 days.

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