Almost a tenth of the Hungarian companies' revenue comes from the collection of late payments.
Budapest 25 February 2020 – According to the EOS Group study on European payment habits, a significant 8% of companies' revenue comes from the recovery of overdue receivables. One of Europe's leading debt management companies has interviewed 3400 corporate decision-makers in 17 European countries in its research.
One in two (51%) representatives of Hungarian companies said they would rely on an external partner to manage their debts, including not only the professional receivables management companies, but also service providers such as law firms. This is a 3 percentage-point increase over last year and is relatively high in Europe. 42% of all European surveyed companies work with external partners, which is a 5 percentage-point increase compared to the previous year's data.
An important factor in the performance of the economy is that most of the money collected by companies is used to pay off their debts (72%), while 49% of them use it to protect or create jobs. The first one shows a significant increase of 18 percentage points compared to the previous year, which shows that circular debt is a typical scenario in Hungary. 46% of the surveyed firms mentioned expansion and 29% mentioned R&D as being funded from managed debts.
Tamás Kraszna, head of EOS Hungary's Unsecured Collection Department, emphasized that the proper and professional handling of receivables has many positive effects on economic performance. “Companies finance a significant proportion of economic stimulus activities, such as job creation and expansion, from the revenue they generate” the expert said.
About EOS 2019 'European Payment Practices' Study
In the spring of 2019, EOS Group interviewed 3,400 financial experts in 17 European countries about their payment practices in their country. In Austria, Belgium, Bulgaria, Greece, UK, France, Poland, Romania, Russia, Slovakia, Spain, Croatia, Czech Republic, Switzerland, Germany, Slovenia and Hungary, 200 decision makers in the receivable management sector responded to questions about payment, economic trends and debt management over the past 12 years.
The EOS Group
The EOS Group is one of the leading international providers of customized financial services. Its main focus is on receivables management, and with its 60 subsidiaries, more than 7,500 employees and 20,000 customers, it is one of the largest players in the market. Working in an international network of partner companies, the EOS Group has resources in more than 180 countries, and directly operates subsidiaries in 26 countries. The company's key target sectors are banking, insurance, utilities, telecommunications and IT companies. EOS is part of Otto Group.
For more information please go to: www.eos-solutions.com.