Swiss companies express anxiety about the impact of exchange rate swings on the business. They fear that it will create pressure on both export demand and on operating margins.
The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.
The 2023 Payment Practices Barometer survey for Switzerland was conducted between the end of Q1 and the beginning of Q2 2023. Its findings should therefore be viewed with this in mind.
Key takeaways from the report for Switzerland
Credit risk fears prompt strong focus on easing liquidity shortfalls
- During the past 12 months, Swiss companies were significantly hit by payment delays and bad debts, largely attributable to the phasing out of government support and bankruptcy of zombie firms. Late payments now affect 60% of all B2B invoiced sales, up from 45% last year, and currently stand at an average of 46 days from invoicing.
- In response to a sharp deterioration of credit risk in B2B trade, a range of other measures were also used by businesses polled in Switzerland to maintain liquidity. Many companies told us they sought external finance mainly by borrowing through trade credit.
Optimistic mood clouded by exchange rate swings
- Widespread concern was reported by companies polled in Switzerland about the effects of the volatility of the Swiss franc compared to other currencies. They fear that if this exchange rate pattern continues it will create pressure on both export demand and on operating margins.
- Despite these particular worries for Swiss companies, as well as general anxiety about the challenging global economic situation, our survey found optimism about prospects for the year ahead. A striking 77% of businesses polled said they anticipate increase in demand and sales growth during the coming months.
Interested in finding out more?
Please download the full report for a complete overview of the 2023 survey findings of the Atradius Payment Practices Barometer for Switzerland.
For a complete overview of the survey results for Western Europe, please download the full report available in the Related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.
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