practices among 2,200 firms from 10 European countries. The company engages in debt collection.
The poll cited commercial firms in the service sector, industry and trade, some of which supply goods and services to other companies and some of them - end-users. For companies working with customers, the share of timely payments as a percentage of the total is 71.9% and for companies working with business clients, the figure is 66 per cent. Typically, companies seek external service recovery when it comes to overdue debts from other companies, experts commented.
Bulgarian companies have the highest share of receivables written off then in Romania - over 8% for 11.4 per cent for Romanian companies, according to the survey. In Bulgaria liabilities are derecognised after the five-year limitation period specified Svetla Petrova. She said that unlike other countries in Europe the large Bulgarian companies wait several months or even years, while taking steps to debt collection, while companies in Western countries sought help much earlier.
If steps are taken to recover the amounts in the first three months, the success rate is 90-95 percent, but if you wait a year or two - tends to zero, said Mrs. Petrova.
Companies in the industry derecognised largest share claims. Problems remain in tourism and construction sectors.
In comparison with data from similar study of current practices last year's trend for the payment of arrears is deteriorating, and increases the percentage of receivables written off, says the data. However, the level of optimism among companies in Bulgaria is one of the highest in comparison with other European countries, with Romania, Russia and Germany are the most pessimistic, the survey showed.