Entrepreneurs wait double the time of European operators to be paid for services
Maltese entrepreneurs working in the local market, as an average, have to wait double the time of European entrepreneurs to be paid for services or products they introduce in the market. This emerged during the European congress which is discussing credit management. The entrepreneurs are both importers and those who manufacture their products for the local market.
This was stated by the President of the European Federation of Credit Management Associations, Josef Busuttil, during the federation’s conference currently meeting in Malta.
Mr Busuttil stated that a survey carried out last year shows that local entrepreneurs have to wait an average of 82 days to be paid, while the European average is 45 days.
“This may result because we are small and there is a lot of competition. Literally in Malta if you don’t sell on credit, you cannot do business. There are factors that vary”, Mr Busuttil said.
The FECMA President said the European directive on this provides that in the private sector, pending payments for products and services should be paid within two months. He stressed that entrepreneurs know with whom they are working so that they are not cheated. “There are companies, even big ones, who do not have workers trained enough to manage the credit. The credit represents 40% of a company’s assets and these assets are liquid.”
The conference, which continues tomorrow, was also addressed by the Opposition Leader Adrian Delia who spoke on the creation of new industries so that more quality jobs will be available. He said that his vision for Malta is that investment will be done in the public, education and infrastructural services in the next decade while development will not damage the environment, as he said is occurring today.