Up Again Hungary: Suppliers and Contractors

Restructuring

1. Navigating the supply chain in a distressed market:

a. My company supplies goods and I am concerned about the solvency of my customers. Are there any steps I can take to mitigate risk/my exposure?

Depending on the business/contractual relationship between the parties, it is advisable to shorten the payment deadline or alternatively request for simultaneous performance.

Requiring additional securities may be an option. In any event, continuous monitoring of the public databases for warning signs (e.g. liquidation, execution, foreclosure) is sensible.

b. My company relies upon the supply of goods/services and I am concerned about the solvency of my supplier? Are there any steps I can take to mitigate risk?

Depending on the business/contractual relationship between the parties, it is advisable to shorten the payment deadline or alternatively request for simultaneous performance.

Requiring additional securities may be an option. In any event, continuous monitoring of the public databases for warning signs (e.g. liquidation, execution, foreclosure) is sensible.