Thu. Nov 14th, 2019

Public delinquency drowns the accounts of the self-employed

The delinquency of public administrations continues to be one of the biggest problems faced by the self-employed when it comes to balancing their monthly accounts. The situation is drowning the liquidity of entrepreneurs, who must meet their tax obligations despite not having collected the amounts due. Few public administrations meet the deadlines and most of them delay payment terms to their suppliers due to the tensions arising from their Treasury.

With this panorama, Murcia and Cantabria repeat as the two Spanish regions that take longer to pay their suppliers, with average periods of 76 and 56 days, as reported in a report by the association of autonomous workers ATA, relative to the month of August .

The average of the payment periods of the autonomous communities during the first half of 2019 was set at 35 days and at the end of August 2019 the average has increased to 40 days, which means a 14.3% more wait. But the worst data is offered by local administrations, for which the majority of freelancers work, which doubles the payment period established by law and pays their bills to 78 days. This wait has increased exponentially since the first half of this year, when the average was 65 days, up to 20%, with an average waiting time of 11 weeks, well above the established legality.

In addition to Murcia and Cantabria, more regions systematically fail to meet deadlines. Castilla-La Mancha (57 days), Valencian Community (53), Balearic Islands (48), La Rioja (45) and Madrid (43). In the opposite pole, Galicia and the Canary Islands (both in 19 days) stand out soon.

In general, the three administrations fail to comply with the law regarding the period of payment to suppliers, although it is the central one that is closest, with a 33-day term (10.8% less since June); followed by the regional one, with 40 days (14.3% more); and the local, with 78 days (20% more).

Municipalities are precisely the worst payers, since the delay exceeds two months (78 days). But there are municipalities that record much worse data. It is the case of consistories such as Jaén, which is still the one that takes the longest to pay in Spain, doing so in an average of 582 days, higher than the 542 days that it registered in the first half of the year. That is to say, a freelancer who does a job for this town hall will charge, on average, 19 months after submitting the invoice. The suppliers in Jerez de la Frontera (414 days) also wait for more than a year on average, and more than nine months the freelancers who have issued an invoice to the municipalities of Parla (267) and eight those of Granada (243 days). They are followed by the consistories of Las Palmas de Gran Canarias (173 days), Badalona (151 days), Vélez-Málaga (137 days on average), El Puerto de Santa María (121 days), Santiago de Compostela (102 days) and Telde (94 days) In the positive balance is Algeciras, which has reduced from the first semester on average in 126 days to 39 days and has thus abandoned the list of the 10 that pay the worst.

But neither does private business. Late payment between private companies (B2B), on average, is set at 73 days, five days more than the 68 they showed in the first half of the year, and 13 days more than 60 days established by the Late Payment Law. Depending on the size of the company, the self-employed without workers and small businesses – which have up to 9 workers or 9 to 50 workers – are the ones that paid their suppliers before. As the size of the company is escalating, the average payment periods are getting worse, being again the companies with more than 1,000 workers, the ones that take the longest to pay the outstanding invoices (115 days on average).

. (tagsToTranslate) javier de antonio

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