1 in 4 companies in Spain is in default
Debts
Did you know that 27% of companies suffer significant defaults? 64% suffer the negative consequences of late payment in their activity and 9% are at risk of closing for this reason. This has been shown by the latest Credit Risk Study promoted by Crédito y Caución, Iberinform and the IE Business School.
What do the statistics say about the defaults of Spanish companies?
However, one of the most "worrying" data, as reported by Crédito y Acción, is that, for the first time, the results show a slight worsening in several indicators, such as the rate of companies that have suffered significant defaults in the last twelve months.
Other conclusions of the report indicate that the consequences of late payments increase companies' financial costs by 39%, represent a loss of income of 39% and, in addition, limit growth by 16% and new investments by 15%.
According to the study, the Administration's payment behavior with companies has registered an improvement. 3% of companies that work for the public sector, compared to 7% the previous year, suffer default rates that pose a clear risk to their survival.
In the field of 'business to business' (B2B, for its acronym in English), the first worsening has been recorded since the study was carried out: 6% of companies suffer high rates of non-payment with their clients, compared to 3% of the last year.
What characteristics are the main causes of the enormous delinquencies?
1.- Inflation rates.
It is evident that in the euro zone there are high inflation rates that have caused the prices of services and industrial contracts to be constantly changing and modifying for many months. Therefore, this factor negatively affects non-payments, since many companies need to increase their final sales prices, since at the same time the prices for the purchase of materials or services to be contracted have increased and must affect these increases to the final consumer. If the final consumer consumes or uses these services to a lesser extent, this produces a drop in billing levels, but on the other hand, an increase in the purchase of materials, which creates a scenario of business vulnerability and a greater risk of it makes defaults.
2.- Increase in prices of raw materials due to lack of existence.
At the same time, many companies have noticed that the prices of raw materials and materials for manufacturing and/or providing services have increased significantly, due to the circumstances caused by the Covid-19 pandemic. The global pandemic closed factories and businesses, paused activity worldwide, resulting in a lack of stocks and products that directly affected an increase in materials, due to the enormous existence of accumulated demand after the pandemic and in Instead, an enormous lack of supply due to the cuts caused by the health emergency.
3.- War conflicts.
For all these reasons, and after listing the first two reasons, there have also been serious war conflicts on a global scale as a result of tensions between Russia - Ukraine and between Israel - Gaza Strip. All of this has caused many companies with businesses in Russia and/or Ukraine to close due to the destruction of cities and huge industrial complexes. In addition to the enormous amount of raw materials and great dependence on Russian crude oil, to run countries, industries and all types of companies. Finally, the tensions and war between Israel and the Gaza Strip have not helped the economic recovery of companies, since there is no political stability and attacks and victims still occur day after day.
For all this, the combination of these three characteristics in short periods of time justifies the risk of non-payment both for Spanish companies that import and export, as well as for international companies with clients in Spain.
What can I do if I want to recover a debt or non-payment?
It is best to put yourself in the hands of a law firm that has a lot of experience in debt recovery. This is the case of Forcam Abogados, which has a team of lawyers specializing in the recovery of very high debts.
At Forcam Abogados we recover debts quickly and effectively, by having lawyers with experience in recovering non-payments of large amounts, both from companies and individuals.
What do the statistics say about the defaults of Spanish companies?
However, one of the most "worrying" data, as reported by Crédito y Acción, is that, for the first time, the results show a slight worsening in several indicators, such as the rate of companies that have suffered significant defaults in the last twelve months.
Other conclusions of the report indicate that the consequences of late payments increase companies' financial costs by 39%, represent a loss of income of 39% and, in addition, limit growth by 16% and new investments by 15%.
According to the study, the Administration's payment behavior with companies has registered an improvement. 3% of companies that work for the public sector, compared to 7% the previous year, suffer default rates that pose a clear risk to their survival.
In the field of 'business to business' (B2B, for its acronym in English), the first worsening has been recorded since the study was carried out: 6% of companies suffer high rates of non-payment with their clients, compared to 3% of the last year.
What characteristics are the main causes of the enormous delinquencies?
1.- Inflation rates.
It is evident that in the euro zone there are high inflation rates that have caused the prices of services and industrial contracts to be constantly changing and modifying for many months. Therefore, this factor negatively affects non-payments, since many companies need to increase their final sales prices, since at the same time the prices for the purchase of materials or services to be contracted have increased and must affect these increases to the final consumer. If the final consumer consumes or uses these services to a lesser extent, this produces a drop in billing levels, but on the other hand, an increase in the purchase of materials, which creates a scenario of business vulnerability and a greater risk of it makes defaults.
2.- Increase in prices of raw materials due to lack of existence.
At the same time, many companies have noticed that the prices of raw materials and materials for manufacturing and/or providing services have increased significantly, due to the circumstances caused by the Covid-19 pandemic. The global pandemic closed factories and businesses, paused activity worldwide, resulting in a lack of stocks and products that directly affected an increase in materials, due to the enormous existence of accumulated demand after the pandemic and in Instead, an enormous lack of supply due to the cuts caused by the health emergency.
3.- War conflicts.
For all these reasons, and after listing the first two reasons, there have also been serious war conflicts on a global scale as a result of tensions between Russia - Ukraine and between Israel - Gaza Strip. All of this has caused many companies with businesses in Russia and/or Ukraine to close due to the destruction of cities and huge industrial complexes. In addition to the enormous amount of raw materials and great dependence on Russian crude oil, to run countries, industries and all types of companies. Finally, the tensions and war between Israel and the Gaza Strip have not helped the economic recovery of companies, since there is no political stability and attacks and victims still occur day after day.
For all this, the combination of these three characteristics in short periods of time justifies the risk of non-payment both for Spanish companies that import and export, as well as for international companies with clients in Spain.
What can I do if I want to recover a debt or non-payment?
It is best to put yourself in the hands of a law firm that has a lot of experience in debt recovery. This is the case of Forcam Abogados, which has a team of lawyers specializing in the recovery of very high debts.
At Forcam Abogados we recover debts quickly and effectively, by having lawyers with experience in recovering non-payments of large amounts, both from companies and individuals.
Contact us, and we will take care of studying your case, with the aim of recovering all the money you are owed.
You can also contact us through the telephone number (+34) 936 26 49 49. We offer legal advice on the claim and recovery of debts at a national and international level. In addition, we have offices in Barcelona, Madrid and Reus.