Covid-19 hits companies’ payment capacity in Mexico: Study

In 2020, the payment capacity of companies in Mexico was the most affected by the effects of the COVID-19 pandemic among North American countries; but nevertheless, Maintain their ability to pay during the critical months of an emergency, the consultant pointed out Dan and Brad Street.

to me Study Payment 2021 Produced by Dun & Bradstreet, a global provider of business decision data and analytics, One-time payments from companies operating in the country fell 4.3 percentage points, by 48.8 percent, from the end of 2018 through the end of 2020.

This is the deepest drop compared to companies in the United States and Canada, which lost 1.4 and 0.9 percentage points, respectively, in the same period.

At the end of last year, 54.9 percent of businesses operating in the United States made their payments on timeWhile 31.3% of companies in Canada have fulfilled their obligations.

Dan and Bradstreet explained it late payments affect in different ways. theThe consequences can range from the ability to obtain contracts, loans, credits and investments, Among other points. It can even affect the operation of the business, by reducing the company’s cash flow and putting its finances at risk.

In parallel, dealing with delinquency becomes a credit ‘purifier’. If payment is imposed, it may harm the business relationship, but if it misses it becomes a financial burden. Purgatory can be summed up in two categories of partners: those who will eventually pay, and those who will leave accounts outstanding.

The sectors that experienced the greatest deterioration in the ability to repay on time in Mexico are: Real Estate, down 11.3 percent; Hotels and other accommodations with a shrinkage of 11.1 percent; and recreational and leisure services, with a decrease of 10.2% by the end of 2020.

“In North America, industries – in general – are showing resistance to the impact of the pandemic. Even if Industries such as those related to tourism in Mexico report late payments and increased late paymentsThe reopening and economic recovery will help companies revitalize their cash flow to meet their financial obligations.”

The company added that the economic recovery must be supplemented in the future by sound decisions by companies on issues such as: extending credits, extending loans, and providing favorable terms and conditions for the parties involved. in the end, Lenders, suppliers and sellers are part of the same ecosystem for similar purposesHow do you satisfy the customer?

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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