Delayed Payments on the Rise in Germany, Highlighted by Coface, a Major Market Contributor
Germany is experiencing a significant deterioration in payment conditions, as revealed by the latest study on the payment behavior of German companies conducted by Coface. The study, which was the ninth of its kind, was carried out in May and June 2025.
The study sample consisted of 847 businesses in Germany. It found that payment delays in the country have been increasing for four consecutive years. In 2025, 81% of companies reported delays, up from 59% in 2021. This figure is close to the 2019 peak of 85%. The average payment delay length increased slightly to about 31.8 days, though this is still below the pre-pandemic average of 39.7 days.
The increase in payment terms and delays is tied to political instability and growing geopolitical risks. Companies active in both domestic and export markets have shown a pronounced rise in granting longer payment deadlines—from 81% to 93% in one year. The financial advisory sector recorded one of the steepest increases in delays (+10.3 days).
Despite this deterioration, Germany continues to stand out for having some of the shortest payment terms and delays compared to other countries surveyed by Coface. There is cautious optimism for improvement in 2026 amid ongoing reforms, even as political uncertainties persist.
Meanwhile, the European Union has proposed a new digital levy on large tech companies, including Google, Facebook, Amazon, and Apple, to address concerns about the taxation of digital companies. The levy will be a 3% tax on the revenues of tech companies with global revenues of €750 million and EU revenues of €50 million. The proposal aims to raise about €7 billion per year and will be a temporary measure, lasting until a global agreement on digital taxation is reached. It is important to note that the levy is not applicable to small and medium-sized enterprises.
This digital levy is set to be discussed by EU finance ministers in December 2021. The exact impact of the levy on the tech industry and the broader economy remains to be seen, but it is clear that the payment conditions in Germany have worsened compared to previous years, and efforts are being made to address these issues.
[1] Coface (2025). Coface Payment Survey: Payment Conditions in Germany Deteriorate for Fourth Consecutive Year. [online] Available at: https://www.coface.com/en/publications/coface-barometer/germany-payment-conditions-deteriorate-for-fourth-consecutive-year
[2] Coface (2025). Coface Payment Survey: Sectoral Analysis of Payment Delays in Germany. [online] Available at: https://www.coface.com/en/publications/coface-barometer/sectoral-analysis-of-payment-delays-in-germany
[3] Coface (2025). Coface Payment Survey: Outlook for Payment Conditions in Germany in 2026. [online] Available at: https://www.coface.com/en/publications/coface-barometer/outlook-for-payment-conditions-in-germany-in-2026
- The financial advisory sector in Germany, which has recorded one of the steepest increases in delays, is part of the 847 businesses in the study by Coface that were experiencing a deterioration in payment conditions.
- While the European Union is discussing a digital levy on large tech companies to address concerns about digital companies taxation, German businesses, particularly in the financial advisory sector, have experienced longer payment delays compared to previous years.
