Results of the annual credit policy market survey conducted by Krediidiinfo AS reveal that despite deceleration of economic growth, the payment patterns of Estonian companies exhibit no signs of deterioration. 

Compared to the previous year the delays in payments have actually decreased by 1 day – the average delay in payments is 8 days. What is more, during the past year the number of companies making their credit payments on time has increased. 62% of Estonian companies settle their accounts on time. 

Payment practices have not deteriorated during the period under evaluation and 86% of companies are satisfied with their customers’ payment patterns. However, the poor level of credit management practiced by Estonian companies is becoming an increasing threat. 

It is rather alarming that only 18% of companies have adopted written rules and regulations for making credit decisions. In 80% of companies credit issues are decided by the executive and the inclusion of other specialists (eg. accountants, financial and sales managers) is decreasing each year. 

In addition, the underutilization of preventive measures in credit management also refers to potential problems. Only about half of the companies (57%) monitor their customers’ activities, whereas merely 33% of the companies use credit limits for risk management 

41% of companies use professional services in dealing with debtors. The services of collection agencies and law offices are deployed most frequently. In addition, the popularity of credit monitoring services has been increasing yearly. Customers who have become indebted are usually „disciplined” by credit suspension, additional penalties and shortening of payment deadlines.