November 28, 2020

“The increase in taxes on large companies will affect small companies”




The president of Cepyme, Gerardo Cuerva, has described as “pyrrhic” the government’s support measures for companies due to the crisis and has said that “I am concerned that taxes on large companies will be raised because in the end it will affect small companies and citizens.”

Cuerva has made these statements in the presentation of Cepyme’s business delinquency and financing bulletin for the first quarter, which recorded an increase in payment terms to 87 days, four more than in the previous quarter, compared to the 60 established by the law. The average payment period is at the record figure sincee 2011.

The president of Cepyme has criticized that “While in the rest of the countries taxes are lowered, here they are raised” and has requested that both the grace period and the repayment terms of ICO loans be extended. “

Regarding ERTE, he has pointed out that as of October 19, there were 517,357 workers affected by force majeure files and another 103,312 for the rest of causes.

According to the results of the barometer presented today, 57% of the SMEs consulted are suffering or believe that they will suffer an increase in default by its clients and 36% also contemplate its increase by public administrations.

Default has a direct impact on the company’s income. 30% of SMEs that suffer delinquency indicates that it represents more than 10% of their income. And for many of them it is an obstacle to their survival. One in eight companies that is in default (almost 13%) foresees the closure of their company for this reason, 20% believe that it will lead to a situation of insolvency, 17% point to a reduction in its structure and for the half will mean more need for financing or financing costs. Likewise, the increase in delinquency will also affect them in loss of customers (53%) or in the reduction or loss of margins (50%).

The current crisis has a direct impact on the maintenance of the payment chain. According to the results of Cepyme’s barometer, more than 25% of SMEs are concerned about their obligations to suppliers and 11% already foresee incurring defaults with their suppliers.

Only large companies reduced the average payment period in the first quarter of 2020, while both micro and small and medium-sized companies increased these terms.

These increases were more important in microenterprises, whose delay increased by 9.4 days to 89.9 days, and in small companies, which increased the average payment period by 4 days, to 87 days. Medium-sized companies registered a slight rebound, as their payment period grew by 0.4 days, reaching 85.5 days. Large companies went from 69.8 days in the last quarter of 2019 to 67.2 days during the first quarter of the year, a reduction of 2.6 days.


The construction and promotion of houses and the textile sector are those that maintain the highest average payment periods, with 101 days and 92.9 days, respectively. On the contrary, the sector where the average payment period is reduced the most is that of paper and graphic arts, which goes from 83.3 days in the last quarter of 2019 to 74 , 8 days in the first quarter of this year, followed by agri-food which stood at an average of 73.6 days (-4.8 days compared to the previous quarter) and agri-food distribution activity, which stood at an average of 71.3 days (-3.6 days).

Aragon is the region with the shortest average payment period by its companies, equivalent to 71.6 days. It is followed by Castilla y León (72.6 days). Other communities that have reduced their delay are Extremadura (-3.9 days) and Castilla-La Mancha (-3.3 days).

The worst performance is observed in the Autonomous Community of Navarra (119 days of average delay), Cantabria (108.7 days) and the Community of Madrid (95.6 days). All three have seen their average payment period significantly increase compared to the previous quarter: Navarra in 39.9 days, Cantabria in 27.2 days and Madrid in 11.7 days.

Public administrations

As for the delinquency of public administrations, the trends observed in previous quarters are maintained. Thus, in May 2020, the average payment term of the State is still within the legal period, despite the slight increase of 5.1 days compared to the previous month.

For its part, the delay of payment of the autonomous communities is placed five days above the legal, standing at 34.9 days in May. Finally, local corporations, which continue to present a clearly differentiated behavior, register an increase in their average payment term between April and May by 9.8 days, to triple the legal period, reaching 92.5 days.

Catalonia presents the worst results at the national level, for the second consecutive quarter, going from 48.2 days to 52 days. They are closely followed by the Balearic Islands (48.4 days), La Rioja (47.27) and Cantabria (41.5). At the other extreme is Galicia, which, with an average payment period of 13.2 days, is well below the legal one. Other regional administrations that stand out for their good performance are the Canary Islands (16.5 days), Andalusia (16.9) and the Basque Country (21.44).

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