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The current DIHK survey shows numerous sectors at risk of insolvency
The risk of insolvency for numerous sectors continues to rise the longer the lockdown, due to Corona, lasts. This is not only the result of a recent survey by the Association of German Chambers of Industry and Commerce (DIHK). According to the economic survey at the beginning of 2021*, travel agents are expecting further, in some cases massive, declines in sales, with 39 per cent of those surveyed in the hospitality industry and 40 per cent in retail. So it is no wonder that many of the sectors especially affected by the lockdown see themselves threatened by an acute risk of insolvency.
The figures for the German Confederation of Skilled Crafts (ZHD) are very similar: In the survey of around 2,500 craft businesses in January 2021, 58 percent of them reported a drop in turnover in the last four weeks, only 34 percent reported turnover at the level typical for the season. Personal service trades, as well as motor vehicle and health trades were particularly affected by the decline in turnover. This also shows that the long lockdown has significantly increased the economic impact of the pandemic on the craft sector.
Payment behaviour collapses
The figures of a well-known credit agency also fit in with this: According to these, the average payment delay reached an all-time high of around 36 days in December 2020, and payment practice in the arts and entertainment sector in particular plummeted. The data from the information service provider is based on an analysis of the payment behaviour of around 450,000 companies.
In mid-February, the legislature extended the suspension of the obligation to file for insolvency until the end of April 2021 in order to cushion the consequences of the pandemic for companies. However, it remains to be seen to what extent this measure – and the currently agreed phased plan for possible openings when incidence figures fall – will effect the businesses.
ZDH survey on the impact of Corona:
CRIFBÜRGEL: Late payments by companies reach record high in December 2020:
Information on the Federal Government’s suspension of insolvency:
atrigaprotekt: The right solution at the right time
Christoph Ruoff, Managing Director of atriga, sees the strategy of his company, which also includes the launch of a new type of complete receivables management solution with atrigaprotekt, confirmed: “The current surveys and forecasts clearly show that we were completely right with our market assessment and can now offer a product at the right time with atrigaprotekt, with which especially small and medium-sized enterprises, craftsmen and self-employed persons can prevent invoice defaults in advance and handle their entire debt collection and receivables management completely digitised via an innovative online platform.”
Further information (in german) on: www.atriga-protekt.com
According to a recent DIHK survey, companies in a wide range of sectors see themselves increasingly threatened by insolvency as a result of the ongoing lockdown.