Home » Industry » Credit Information » European Risk Climate: More than 25% of European Business Failures are the Result of B2B Customer Defaults

European Risk Climate: More than 25% of European Business Failures are the Result of B2B Customer Defaults

B2B credit risk exposure is now at the top of C-level priority concerns.  According to Tinubu estimates, customer receivables represent more than a third of a B2B company’s assets. More than 25% of business failures in Europe are the direct result of B2B customer defaults. Write offs of bad customer debt have grown from an average .5% of revenues to 1% or higher, depending on industry and country. Outstanding trade credit in Europe is five times the total volume of short-term bank credit.

Source:  Tinubu Square

Leave a Reply