Companies in the Valencian Community are increasingly allocating More efforts to manage and combat the consequences of inflation in their work, to the point where most of them started neglecting other duties and many are considering giving up their growth plans to face this situation and get out of the current situation.
This is reflected in the last European Payments Report To companies from all over the continent that Intrum performs problems caused by rising prices Following the Ukrainian war. Moreover, it is a situation in which more than half of the businessmen (52%) apply for autonomy. It will continue for at least another year.
Currently, the uncertainty and instability created by high inflation are already having significant consequences on the daily life of organizations. so, until 86% of Valencia companies that the business is so focused on managing its economic risks, neglected other attempts this will make them more competitive as a company. This is well above the Spanish average of 54% and the European average (53%).
“Persistent inflation, rising interest rates or rising labor costs affects the profitability of many companiesweakens the income statements. Therefore, as the report reflects, it is now more important for them to prioritize issues that help guarantee their liquidity over growth strategies.” Santiago Married.
A situation that does not seem likely to change in the near future, because at the same time 59% of businesses The Community of Valencia, in response to inflation and the rise in interest rates, rethink your growth strategy business to achieve greater efficiency and control costs.
Until concrete measures come 43% Proportion of companies consulted within the scope of autonomy, reduce your costs in the coming months, this is 12 points more than the national level. Same way, 38% indicates that it will be displayed be more careful when assuming financial debt, compared to 16% of the national group.
On the contrary, only 4% plan to expand their investment in innovation and development In response to this current situation, new products are more competitive.
More time to manage payments
On the other hand, the study also analyzes the situation of payments between companies, where some of the consequences of this persistent inflation situation are already being perceived. So, until 83% of businesses from customers of the region. willingness to accept deadlines longer payment terms, which is four points more than a year ago.
along the same line until 57% of companies in the community spend more than 10 hours a week to track their customers’ payments, 12 points more than those claiming to have the same issue at the national level.
Overall, companies in Spain invest an average of 81 days a year to demand payment for their products and services, seven more than the European average.