Late Payments in Europe: Break the Cycle and Protect Growth
Late payments in Europe have shifted from annoyance to existential threat. As macroeconomic uncertainty deepens and insolvencies rise, businesses across the continent are scrambling to protect working capital and stay ahead of deteriorating payment behaviour.
In this exclusive joint webinar, Baker Ing and Dun & Bradstreet break down the data, the danger, and the decisive action needed to turn the tide.
A Shaky Economic Foundation
Across the UK and Eurozone, business sentiment is collapsing. PMI indicators are flashing red across services and manufacturing, with confidence in both sectors at multi-year lows.
Eurozone growth forecasts have been slashed to 0.8% in 2025
UK Composite PMI has fallen to 48.2, the lowest in 29 months
Consumer pessimism and weakened FX rates compound the issue
North vs South
Bankruptcies Are Climbing — Again
From Reactive to Proactive
Dun & Bradstreet’s latest CRIBIS Payment Study reveals a stubborn divide:
- Just 51% of European B2B payments meet agreed terms
- In Southern Europe, fewer than 4 in 10 payments arrive on time
- France has worsened sharply post-COVID, averaging 16.5 days delay
The UK, however, has improved — now averaging 10.8 days, better than the EU average
Europe’s temporary post-COVID insolvency drop is over:
- +6% failures in the Eurozone (2024)
- +3.4% y/y rise in England & Wales (Q1 2025)
- France, Italy, and Germany all show double-digit increases
Waiting to act is no longer an option. You must anticipate risk, not react to it.
Tim Vine (Dun & Bradstreet) stressed the risk of passive credit strategies:
“You only know what you know. Most businesses don’t realise where they sit in their customer’s creditor hierarchy — until it’s too late.”
To break the cycle:
- Always-on monitoring is now essential
- Segment debt by risk, value, and margin
- Use external data, not just your internal lens
- Prioritise action, not admin
The 60-Day Seesaw: Baker Ing’s Peak Payment Model
Lisa Baker-Reynolds introduced a predictive model that changes the game.
The 60 DBT Window is where most risk escalates:
After 60 days beyond terms, payment likelihood and recovery profit collapse.
The model recommends:
Red-Amber-Green ledger segmentation (by DBT, credit score, profit)
Dual-tone messaging: reward prompt payers, warn slow ones
Supply chain insight: know where your customer is exposed — and when you’re next
Outsource your volume: free internal teams to focus on high-risk, high-value accounts
Reject the Status Quo. Rebuild the Terms of Trade.
Late payment isn’t a given. It’s a symptom of poor credit discipline, misaligned incentives, and opaque supply chains.
To break the cycle:
Don’t give credit away blindly Don’t accept 120-day norms in “risky” markets Don’t let sales dictate terms based on contract value — focus on profit at risk
Need a Practical Starting Point?
Download the full 14-slide deck from our recent webinar with Dun & Bradstreet:
“Late Payments in Europe – Breaking the Cycle.”
It’s built for credit managers, collections teams, and finance professionals navigating deteriorating payment behaviour, macro uncertainty, and rising insolvency risk.