(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.
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
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
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.