Press Release: Every eighth small company in debt

The most recent statistics of the payment behaviour of companies prepared by Creditinfo AS reveal that every eighth small company was in debt in the first half of 2017. The share of companies with tax arrears and payment defaults among commercial undertakings whose average number of employees is 10-49 is 12.3 and 5.0 percent, respectively.

The amounts of payment defaults or debts between companies increased by a massive 35.6% and reached the level of 32.7 million euros. The almost fourfold increase in amounts of payment defaults in the construction sector stood out the most alongside the real estate sector, where they increased by 3.2 times. However, the median average amount of a payment default, 932 euros, remained on the level of the previous year.

The amounts of tax arrears or the debts of companies to the state increased by 7.5% over the year and totalled 37.2 million euros. Tax arrears increased the most in the finance and insurance (3.5 times), transport and warehousing (65.5%) and construction (26.5%) sectors. The median average sum of tax arrears has increased to 2,768 euros, which is the highest in the last five years.

The number of companies with debts has not changed much against the background of the increase in debt amounts. The number of companies with payment defaults in the first half of 2017 was almost the same as the year before: 2.7% or 2,120 active companies. The share of companies with tax arrears has decreased to 5.3%, i.e. 4,257 actively operating Estonian companies owe money to the state.

There are only 11.1% companies with high credit risk in Estonia as of August 2017, which is the lowest indicator of the last three years. In conditions of active competition, this indicator can be considered good when it’s between 12-15%.

The statistics of the payment behaviour of companies are based on the credit opinions of Creditinfo Eesti AS and the data of the Official Payment Defaults Register and the Tax and Customs Board. The sample consisted of 79,618 actively operating Estonian companies. Creditinfo has been presenting information about the payment behaviour of companies for nine years now and does it twice a year. The objectives of the study are to observe and, if necessary, regulate the methodology of the credit rating of companies to guarantee quality credit information to decision-makers.

 You can read the full study on the Creditinfo website: Payment Behaviour of Companies in First Half of 2017

Creditinfo Eesti AS (formerly Krediidiinfo AS) is the largest and most experienced company in the Estonian credit information sector whose principal activity is the management of the financial risks of Estonian companies. Creditinfo regularly carries out studies of the bankruptcies, financial performance, payment behaviour and credit policy of companies.

Further information:

Alar Jäger, Development Director, Creditinfo Eesti AS

T: 665 9643

E: alar.jager@creditinfo.ee

 

AS Creditinfo Eesti - Narva mnt 5, 10117 Tallinn, Estonia
+372 665 9600 (9:00-17:00) info@creditinfo.ee
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