October 25, 2019 10:23 am

300,000 German companies not creditworthy

Almost every tenth company in Germany is currently not creditworthy. This is the conclusion reached by Creditreform Economic Research, which has analysed more than 3.75 million German companies in terms of their credit ratings. According to the study, financial instability can lead to potential negotiation difficulties and defaults among the 300,000 companies affected.

Large differences in creditworthiness can be found in the various business sectors: According to Creditreform, the highest number of uncreditworthy companies comes from the hospitality (14.3%) and the transport sector (13.6%). The situation is better in the health and social sectors. Less than three percent of companies are affected there.

For Creditreform, the existence of negative judicial characteristics is one of the decisive factors for the credit rating of a company. Such a negative characteristic is given, for example, when a court applies for insolvency proceedings or orders security measures. Creditreform

This post was written by Jens Secker

(Image rights: istockphoto.com/undefined undefined)

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