this The price crisis begins to stress the coffers of many countries. Businessespecially the smaller ones. Costs rise, the price of money becomes more expensive (and higher), and payers try to turn time into gold. Especially collectors’ time. And companies operating in Spain, delaying your payment terms, reversing the downward trend these have decreased in recent years. This is confirmed by a report released this Sunday by the Cepyme employers association, which examines the accounts of small and medium-sized companies in the first half of the year, stating that collection times are currently taking longer. no risk of widespread non-payment.
Treasury tensions do not weigh the same on the shoulders of a large company as that of a small company, and in Spain, an SME country, increased payment terms are a problem for multiple companies. These are currently small companies (between 10 and 49 workers). within 84.7 days, the period between the issuance of the invoice by these companies and the payment of the buyer of the product or service. This period has increased by 7.3% in the last one year. For medium-sized companies (between 50 and 249 workers), these periods remained more stable, increasing only 0.5% to 84.8 days.
Guilt is not an issue, as was implied by the 2008 crisis. For now, according to Cepyme data, 88.6% of SME invoices have been paid within the agreed timeframe or less than 30 days’ delay. Other indicators of the weakest links in the payment chain, such as: most freelancersBegins to reveal negative symptoms. According to the latest ATA barometer, linked to Cepyme through the large employer CEOE, 41.6% of self-employed people claim to have committed some form of crime, a percentage that has increased by almost 10 percentage points over the past year.
Borrowing is on the rise
Cepyme data currently does not reveal cracks in the payment chain. However rising debt ratiosIn a context where central banks make money more expensive by raising rates, they can erode this percentage of punctuality. “We must not forget that debt is still at a high and growing level, an additional burden will be added to business accounts due to the rise in interest rates,” recalls the employers’ association.
The debt ratio, measured as total liabilities to net worth, increased for the fourth consecutive quarter, closing at 100% in July. In other words, SMEs currently have as much debt as equity, but small debt is growing at twice that of medium-sized. “This is the highest level since 2018. and 12.7 percentage points higher than the previous year,” underline the report’s authors.
stagnant profitability
The Cepyme report finds a 14% increase in sales over the previous year. It’s something that hasn’t happened since the 1980s, and it’s explained by the escalation of inflation. That is, not because they sell much more, but because their bills are at record numbers due to the increase in prices. On the other hand, your expense account is also increasing. And this The turnover of medium-sized companies is growing more than small companies.
However, as revenues rise, so do costs, which have increased 24% overall last year. Particularly noteworthy, EnergyHe It became 113.7% more expensive for SMEs last year. And transport has grown to a lesser extent, but at the same time, notably by 20.5%. This is the biggest increase in the last two decades.
what leaves net return on assetsthat is, the ability of SMEs to generate profits stopped at 2.8%; very similar to the previous year and lower than any data recorded between 2016 and 2020. According to the employer’s analysis, this profitability gap was “caused by a 55% lower activity level compared to pre-pandemic levels, which, according to the study’s authors, affected by anti-epidemic measures and still incomplete recovery and the remaining 45% inflation, driving costs and impacting margins,” according to the employer’s analysis.