In Europe, companies grapple with late payments – but certain regions and countries lag in getting suppliers paid. A new study finds Slovak firms among the worst offenders, while in the US, late payments from a seafood processor makes waves.
In Europe, Slovak firms are among the “least disciplined” payors, as evidenced by a European Payment Practices study conducted by the firm EOS KSI.
As reported by spectator.sme, the data showed that as much as 27 percent of payments from Slovak firms were late, or never paid at all in 2018. The study shows that that percentage has not changed since 2017.
“Late payments, or the fact that companies do not receive any remuneration at all, can cause serious cracks in business and significantly disrupt cash flow,” said Michal Šoltes of EOS KSI Slovakia, as quoted in a statement. Slovakia had the worst score among 17 firms studies, followed by Greece and Romania, where 26 percent of payments were late.
The data show, too, the site reported, that Eastern European companies were more lax in payment discipline than Western European firms. In Eastern Europe, 25 percent of invoices were late in 2017 and overall were 22 percent last year. In Western Europe that tally stood at 19 percent.
A bit closer to home, in Massachusetts, the “value added processor” known as National Fish and Seafood shuttered operations, but as the undercurrentnews.com reports, seafood suppliers in Thailand, Singapore and Indonesia have stated that the company owes them $2.5 million due to nonpayment and damages that are owed. The suppliers filed suit earlier this month and Indonesia shrimp and crab supplier Bumi Manera Inerusa and Singapore seafood trade firm Crustrade are among the plaintiffs.
In Washington state, a series of lawsuits allege that Kristopher Lapp kept back payments for as much as $1.8 million from subcontractors. The lawsuits were filed by E2 Consulting Engineers, which said that Lapp’s company stopped paying invoices for five staff members who had been working for Lapp’s firm, i3 Global. And later, checks sent by i3 Global bounced. In the lawsuit, E2 said that it had been provided a number of explanations as to why payments were not forthcoming and that payments would eventually be made.
A trial is scheduled for next year. Lapp, according to, beumontenterprise.com, also faces other trials slated for April of next year, from Integrated Global and Columbia State Bank, where the former firm said it is owed $450,000 for staff tied to I 3 contracts for a nuclear reservation site.
Finally, in the state of California, several business owners who during the recession of a decade ago received IOUs rather than payments from the state of California could be paid as much as $2.7 million. The class action lawsuit is addressed in Gov. Gavin Newsom’s budget proposal that asks for money to satisfy the lawsuit, which stems from 2010, as reported by modbee.com. The suit had been filed by a small embroidery business owner who had been given IOUs in 2009 for work provided on shirts and uniforms — and the IOUs still demanded that she pay taxes on the as-yet-unpaid money. A ruling three years ago stated that Baird and others who joined the suit — who were issued IOUs before the end of July 2009 — are owed money and late fees. The state’s Prompt Payment Act requires that firms and the state pay penalties on late payments.
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