Table 3

Declared accounts receivable management policy and survey replies

Survey questionRespondent's replyPolicy choice(%) (rank)
ConfrontationalPrudentialRelations-based
Preferred objective of overdue accounts receivable management (policy)41.336.522.1
Do you have the contracts you sign read by a lawyer?yes64.171.769.1
no35.928.330.9
Do the contracts you sign have collaterals?yes39.147.834.9
no60.952.265.1
Do you choose your counterparties carefully or is the contract concluded because the market shows it is wise to do so?careful choice68.073.367.8
market choice32.026.732.2
At the contract stage, do you check your potential counterparty's financial standing?check the financial standing of a potential counterparty51.466.557.9
do not check the financial standing of a potential counterparty48.633.542.1
How is the counterparty's financial standing checked?examine the financial statements in the National Court Register26.827.923.0
check whether the counterparty is listed in the National Debt Register7.012.410.5
verify the counterparty with a mercantile agency8.57.27.9
verify the counterparty with a credit bureau3.93.21.3
employ other measures10.619.523.0
Whenever an amount becomes overdue, does the entrepreneurgo to court to claim it?47.936.335.5
resort to mediation?47.555.856.6
resort to a conciliatory procedure?3.96.05.3
resort to arbitration?0.41.21.3
In order to manage their accounts due, the businessconsults external lawyers48.643.832.9
relies on in-house lawyers10.913.115.1
handles contracts and debts on their own40.142.250.7
accepts the contract terms imposed by the counterparty0.40.81.3
Source(s): Authors’ own elaboration

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