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The good news about global growth also accompanies a significant drop in payment terms, according to a study by Euler Hermes Economic Research and quoted by hotnews.ro – "The delay of debt recovery (DSO) increased by two days 2017, 66 days on average worldwide, the highest level since 2007. Over the past five years, the debt recovery period has been constant at 64 days. Romania, debt collection is the most difficult in the pharmaceutical and automotive sectors. "As global growth accelerated, companies boosted their customers' trust by increasing payment terms -" So we expect that the DSO will increase from one day, to 67 days in 2018, due to the positive economic and financial outlook. "The economic and financial crisis of 2007-2008 has led companies to closely monitor or to accelerate the recovery of receivables, reflected by the sharp decline in SSDs (-5 days, up to 60 days in 2008, on average). The return to growth has allowed the DSO to rise to 64 days, remaining constant from 2012 to 2016, in the context of an average GDP growth of 2.8% per year. From a sample of 25,000 companies listed in 20 sectors and 36 countries, DSO has grown an average of two days globally, reaching 66 days at the end of 2017. Thus, only one in four companies is remunerated. customers in less than 31 days, and one in four is paid after 90 days. In comparison, in 2016, one in four businesses receives a payment within 88 days. The Euler Hermes study also shows that the expansion of DSO reflects a relaxation of payment standards in companies. As global economic health improves, companies tend to trust their clients to pay for them despite the growing insolvency of large corporations. The largest DSOs are registered in the aerospace (72), automotive (72), machinery (87) and electronics (91) sectors. Just below the global average of 66 days is the energy sector (63), metals (58) and paper and paperboard (62). The opposite is the food sector (46 days), transport (49) and durable goods (49)
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