Evaluation of payment risk in the markets of Baltic States during economic crisis

Abstract

Due to the difficult business situation, payments to business partners, clients or suppliers are delayed more than usual. This can be a serious threat to enterprises. In this article, the importance of solvency to all business units and companies’ ability to pay their debts to other enterprises (partners, suppliers, etc.) in the markets of Baltic States is discussed. In addition, the payment index in Lithuania and other countries of the Baltic region, the harm that can be done to enterprises, and the behaviour of companies with regard to payment delays, is analysed. The data used in this article are taken from EPI (European Payment Index) research made by Intrum Justitia OY. The conclusion of the article shows that the payment situation in the Baltic region is rather difficult.