Romanian companies face increasing problems in paying their bills

Some 7 out of 10 Romanian companies are late in paying their bills, which leads to an increase in the financial bottleneck across the economy, according to an analysis by local consulting firm Frames, based on a survey conducted in partnership with Train Your Brain, local G4media.ro reported. On average, the Romanian companies pay their bills within 120 days now.

According to a study conducted by Frames & Train Your Brain on May 2-7, 2019, on a sample of 180 representative companies across the whole economy, unveiled at the Train Your Business Iasi conference, 68% of surveyed managers acknowledged that they postponed the payment of bills up to the maximum limit to secure the necessary cash flow for their business.

The main reasons why companies fail to pay their financial obligations on time are the lack of available financial resources, mentioned by 53% of respondents, non-collection of invoices (22%), increase in operational costs (15%), and shrinking sales (7%). The areas most affected are, according to statistical data, construction, mining, agriculture, commerce, pharmaceuticals, transport, and services.

Statistics come to confirm anticipations revealed by Economic Outlook 2019 Barometer published at the end of last year when 78% of entrepreneurs indicated financial blocking (accumulation of bills not paid or paid late) as the main problem expected for this year, the authors of the survey concluded.

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