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Bucharest
December 10, 2022
EDITORIAL

Creditinfo report : 1500 companies in bankruptcy due to the delays in paying the invoices

The debts of the Romanian companies to the state budget have increased 5.6 times during the last year, from 13 billion to 84 billion RON, and the delay in paying the invoices has put more than 1.500 companies into bankruptcy. The most affected was the construction sector, where there are uncollected invoices for over a year and a half. These delays propagate exponentially in the system, so that companies with large cashing debts have become, at their turn, bad payers, with delays that exceeded even eight years.

Increase of debts to the state budget from December 2015 until June 2016 is due to a number of 84.000 companies, which recorded new debts in 2016 amounting to 63 billion RON. Among these, 30% are inactive and the amount in RON of the debts in June 2016 was 43 billion RON.

The information is included in a report about the business environment in Romania, conducted by Creditinfo. The report also points at the situation of bankruptcies, payment behaviors and the profitability of companies depending on the field of activity and the region. The number of companies that have ceased their activity (through dissolution, insolvency or suspension) is decreasing compared to previous years. According to data provided by Creditinfo Romania, most companies that have ceased operations in 2016 are registered in the region Bucharest-Ilfov (19.69%), followed by the North-west regions (13.59%) and Central regions (11.49%). One should consider that these figures relate to the regions with the greatest number of companies registered with us. At the country level, the riskiest region is the South-West one, where there are registered 3502 inactive companies while the number of active companies reached 95.462.

The most bankrupt companies have commerce as object of activity (26.9%), constructions and real estate (9.19%), manufacturing businesses respectively (6.30%). Bucharest ranks first in the number of inactive companies, also having the largest number of companies registered to the Trade Register, followed by the counties of Brasov and Bihor.

The most important cause of inactivity consists in the inability to pay, a situation encountered in the case of 76.6% of the companies analyzed. All of these recorded net losses.

“The average cash circuit was 577 days for companies declared bankrupt in 2016. If this occurred within the banking system, debtors would be executed immediately. Paradoxically, the business market in Romania accepts the delays with a sort of resignation. Companies feel more than ever the need to have available a reliable tool in order to check the payment behavior of future partners or customers, namely a credit report”, considers Aurimas Kacinskas (photo), managing director.

 

Record in Romania: more than 100.000 companies received free reports during “Credit Information Day”

 

Creditinfo Romania is a company specialized in collecting and providing business information from public and private sources. On the occasion of “Credit Information Day”, the company sent on Thursday, September 22th, more than 100.000 emails with their own reports to active companies from Romania.

It is the first social initiative of this kind in our country, which is held concurrently with other global markets. “We wanted to send a message of transparency and urge to the contractors and managers to check their image from external sources and to use such a tool for a better understanding of future customers and for the possibility to predict their payment behavior”, stated Aurimas Kacinskas, managing director.

These reports include information on: identification and registration, tax data, shareholders/associates and managers, financial data, payment behavior, legal information and credit risk analysis. This information can be used in order to understand which is the company of your image in the eyes of your business partners, but also for: credit application, negotiating supplier’s payment terms, applying for European funds and state loans, etc.

 

 

 

 

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