One-in-three European companies would be able to hire more employees if they received customer payments more quickly, according to the European Payment Report 2015 from credit management services group Intrum Justitia.

A third (32%) of survey respondents answered in the affirmative when asked: “Would you hire more if you got invoices paid faster?”

Lars Wollung, CEO & President of Intrum Justitia, commented: “There are 25 million companies in the countries included in our survey. If we relate this to the fact that there are 23 million people without a job in the EU, one can conclude that if every company employed one more the unemployment would be erased - a theoretical yet interesting assumption.”

“Our survey indicates that eight million companies would probably employ at least one more if they received faster payments. This example illustrates the great importance of payment issues and payment management,” he added.

There are, however, relatively large geographical differences in terms of companies feeling able to hire more employees. Approximately four-in-10 companies in Southern and Eastern Europe feel that they would be able to hire more if they received payments more quickly. In northern Europe, the figure is 16%.

Around half of the companies were uncomfortable with the fact that they have been asked to accept longer payment periods. A third of companies see a clear connection between late payments and not being able to hire more. A quarter (24%) of companies also stated that late payments have contributed to staff lay offs. Among companies with more than 50 employees, a fifth (19%) see a correlation between late payments and having to terminate employees.

Respondents were asked what they felt were the main causes for customers paying late, with six-in-10 stating that payments were made deliberately late. This also applies to companies that have only business customers, and it means that conscious strategies to pay late contributes to reduced liquidity, which in turn contributes to fewer jobs.

To access the full report, click here.