Saudi Arabia is the ‘worst’ country in the G20 for UK firms to do business with, according to research released today. The findings, compiled by business information provider Creditsafe, have revealed Saudi Arabian businesses pay bills to their UK counterparts later than any other G20 country, at an average of 92 days beyond terms (DBT).
Creditsafe used its trade payment data databases to analyse over 283,000 UK invoices for companies across all 18 of the G20 countries outside of the UK. The results show that on average, it takes 19 DBT for a company from a G20 country to settle invoices with UK businesses.
The best G20 country to trade with based on the findings is Brazil, with Brazilian companies taking an average of just one DBT to pay UK firms. The G20’s other South American representative also emerges credibly, with Argentinean businesses paying UK firms two DBT on average. By way of comparison, UK businesses take an average of 13 DBT to pay their fellow G20 partners, with 30 days being the average standard payment terms set by UK businesses.
The findings also revealed that so far in 2016, French businesses have received the most invoices from UK companies (nearly 80,000), settling payments 16 DBT on average. Meanwhile, Indonesian businesses have had the fewest invoices (187) from UK firms in terms of G20 members, paying these nine DBT on average.
Rachel Mainwaring, Operations Director at Creditsafe, commented: “While clearly there are a vast number of factors that UK businesses should take into consideration before trading overseas, our findings do highlight one particularly critical aspect in terms of speed of payment. We advise that all businesses carry out thorough checks on all of the potential companies they will be working with, both here at home as well as abroad.
“UK firms are continually looking to identify new regions to expand operations into and businesses on the ground to work with, which is something we would absolutely encourage. However, we would always caveat this by advising that businesses use all of the information available through reports such as ours to make the most informed choices on who to work with.”
Creditsafe, the world’s most used supplier of online company credit reports, also explored all member countries of the EU in its analysis. Of these, Greece emerged as the worst country for UK companies to do business with, as Greek businesses take an average of 78 DBT to pay. This compares to an average of 20 days across all other EU countries outside of the UK, with Austria ranked as the best country to do business with at 7 DBT to settle invoices on average.
For further information, visit www.creditsafeuk.com