Business-risk level worsens in 2Q

Liquidity, bounced checks, large losses threaten 13% of companies.

By SHARON WROBEL
July 18, 2010 23:47
1 minute read.
Illustrative photo

stocks 311. (photo credit: AP)

Israel’s business climate worsened moderately in the second quarter as uncertainty in global markets and Europe’s debt crisis affected the risk level of local companies, Business Data Israel reported Sunday.

The business-risk index increased 1 percent the second quarter, although it was 2% lower than the same quarter last year, BDI said.

Be the first to know - Join our Facebook page.


Thirteen percent of the surveyed companies were at very high risk, BDI said. These businesses suffered from liquidity problems, bounced checks and large losses in revenues and profits.

The problems would continue to threaten their continued existence for the next one or two years, BDI said.

The cafe and restaurant sector was the riskiest, followed by tourism, transportation and haulage, and construction.

The chemicals sector had the least risk, followed by the paper and carton sector.

BDI’s payment-reliability report showed that the average number of late-payment, or credit, days was seven days, up one day compared with the previous quarter.

The average credit period agreed to by businesses and suppliers was 91 days, up one day from the previous quarter.

The hotel and hospitality sector had the most lax payment norms, with payment made an average of 16 days past the agreed deadlines, BDI said.

Payment in the food, catering and beverage sector lagged 15 days behind the agreed deadline, and it was 12 days late in the electricity and electronic-machinery sector.

The most reliable deals were made in the chemicals and drugs sector, where payment was late by one day, followed by the books, computers and CDs sector, where payment was late by two days.


Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS

Israel Weather
  • 10 - 21
    Beer Sheva
    11 - 20
    Tel Aviv - Yafo
  • 9 - 16
    Jerusalem
    10 - 18
    Haifa
  • 15 - 25
    Elat
    12 - 22
    Tiberias