Businesses in Turkey are currently well-placed to rebound in 2021, although much hinges on how well the country manages both the health and economic impacts of COVID-19 through the year end.
Geopolitical uncertainty and a subdued economic performance in some key industries had already begun to cause some payment delays and insolvencies even before the pandemic recession took hold. Despite the challenges faced by Turkey’s businesses many are faring better than their peers in Eastern Europe. 50% of businesses in Turkey reported a negative impact of the pandemic-led economic crisis on revenue, compared to 59% at a regional level, and 48% told us of pressures on their cash flow, compared to 51% across the region.
Overall, most businesses in Turkey were optimistic about the outlook for both domestic and international demand next year.
Key takeaways from the report
- Turkey’s pandemic payment terms have shrunk by an average of 17 days. This is likely to be due to the heightened insolvency environment and a bid to reduce exposure to risk.
- DSO and late payments soar over pre-pandemic levels
- The value of overdue invoices grew by 83% compared to pre-pandemic levels.
- Payment history and ability to make cash are KPIs for credit assessments in Turkey
- Nearly all businesses in Turkey are managing the economic crisis by asking for payment up front, sending overdue invoice reminders and preparing to absorb bad debts in house
- Despite economic stresses in Turkey, most businesses believe the domestic economy, global economy and international trade will all see some improvement over the next six months.
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Turkey during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Consumer durables
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