October 2024
Construction sector in Lithuania twice as risky as other businesses

Despite rising incomes and headcount, seizures amount to almost EUR 110 million
19% of construction companies are in the high and top bankruptcy classes and 31% are at risk of late payment, according to a recent study by Creditinfo Lithuania. Despite the number of employees and the rapid growth in revenues, the sector has already recorded 169 company bankruptcies this year. Nearly 11,000 debts have been registered, totaling more than €91 million. 1049 companies are subject to asset seizures amounting to almost €110 million.
There are currently 19850 construction companies registered in Lithuania, employing a total of almost 110 000 workers. At the beginning of this year, the number of companies in the sector was 20367, creating 108.2 thousand workplaces, while in 2023 the figures were 19167 and 107.7 thousand respectively.
According to data provided to the Centre of Registers, in 2023, construction companies in Lithuania together generated revenues of more than EUR 10.6 billion, representing 14.7% of the country’s GDP. In comparison, in 2022, construction companies’ gross revenues were 22.6% lower at EUR 8.7 billion.
Following the data provided by the companies, the top ten construction companies in terms of revenue in 2023 are Kauno Tiltai (EUR 192.9 million), YIT Lietuva (EUR 191.1 million), Fegda (EUR 184.2 million), Conres LT (EUR 117.3 million), Infes (EUR 107.3 million), Green Genius (EUR 102.7 million), “Merko statyba (EUR 97.8 million), Žilinskis & Co (EUR 94.4 million), Autokausta (EUR 94.3 million), Stiemo (EUR 87.4 million).
Despite the year-on-year increase in revenues, the construction sector is twice as risky as any other business in Lithuania. Currently, 19% of construction companies are in the high and highest bankruptcy classes, while almost one third (31%) are at risk of default. The sector has a similar risk profile from the beginning of 2023. Over the last 5 years, the highest risk levels were reached in 2020 and 2021, when a quarter of construction companies were close to bankruptcy and almost half of the companies (47%) were at risk of default.
In comparison, the average riskiness of all Lithuanian businesses is twice as low: 9% of companies are in the high and highest risk classes, while 16% are at risk of default.
Since 2007, 4,497 construction companies have gone bankrupt in Lithuania, with an average of 254 each year. The highest number of bankruptcies was recorded in 2009, when 445 companies became insolvent. This year, 169 construction companies went bankrupt between January and September.
The average amount of seized assets increased by 34.7% to EUR 105 thousand
Currently, 10892 debts of construction companies are registered in the credit bureau system, with a total amount of EUR 91 million and an average debt of EUR 8 360. Compared to the beginning of January 2024, the number of debts exceeded 13,000, the total amount was €164 million, and the average debt size was 1,5 times higher (€12,602).
According to the data of the Credit Bureau, there are currently 2209 seizures on construction companies, including 1043 seizures with monetary value, for a total amount of EUR 109.8 million. The number of construction companies with at least one attachment is 1049 and the average attachment per company exceeds EUR 105 000. At the beginning of this year, the number of seizures was 2,702, with 1,293 seized companies, and the average amount of a single seizure was EUR 68.7 thousand, 1/3 (34.7%) lower than at present.
“If you notice in the credit bureau’s systems that a business partner or client has seizures, please be careful. It is a serious sign that the company is at risk of defaulting on its payments,” advises Rasa Rasickaitė, Risk Assessment and Management Expert at Creditinfo Lithuania. Asset seizure is a compulsory restriction of the ownership right to property, which can be applied by state authorities to secure evidence, civil action, possible confiscation of property, as well as the collection of fines and unpaid payments, satisfaction of creditors’ claims, and fulfilment of other claims and liabilities. Therefore, when you see a registered seizure, you should also pay attention to other available information, such as court information, debts to creditors, the tax authorities and the social security system.”
According to Rasickaitė, in the event of a seizure of assets, it is advisable to find out the reason for which the seizure has been registered, what assets have been seized, and whether the seized assets are allowed to be disposed of in the course of the company’s business. If there are doubts about the ability of the business partner to pay, it is advisable to ask for prepayment or guarantees.
Can Expanding the Role of CRBs Through Trade Data Sharing Enhance Business Credit and Improve Cash Flow Management?

There is a growing need to expand the information shared with Credit Reference Bureaus ( CRBs) to include trade data. Many manufacturers, wholesalers, and retailers have reported cash flow challenges due to difficulties in recovering debts from their customers. This often results in their ability to restock or pay suppliers, further straining their operations. In Kenya, trade agreements frequently rely on informal arrangements, with limited legal recourse due to delays in the judicial systems. Could CRBs play a more significant role in addressing these issues?
As businesses increasingly rely on data to drive decision-making, it’s evident that CRBs, which currently hold financial data related primarily to bank and mobile loans, could greatly enhance their scope. While the inclusion of traditional credit data has boosted financial inclusion, expanding this to cover trade credit information especially from manufacturers, service providers, and wholesalers could revolutionise how businesses extend and manage credit.
If this trade data were collected and shared under a regulatory framework, it could enhance credit trading, improve business relationships, and further financial inclusion. Regular purchasing and payment data, when synthesized, could help businesses evaluate potential customers, set credit limits, and make informed decisions beyond traditional borrowing data.
Accounts receivable teams often struggle to recover overdue debts from customers extended credit without proper risk assessment. Introducing legislation to compel specific entities to share trade data based on factors like turnover or invoice value could help manage risk, reduce legal disputes, and cut down on costs associated with unpaid receivables.
Moreover, the Kenya Revenue Authority could benefit from improved tax collection, as greater financial discipline would be encouraged to avoid negative CRB listings, which can impact a company’s ability to do business. This would also help reduce the burden on the Judiciary, where countless civil cases related to unpaid debts remain unresolved, leading to significant business losses.
Properly managing and sharing trade credit information could streamline the business environment, improving cash flow and financial planning. Additionally, incorporating trade credit data into CRB decision making tools could help boost an individual’s or entity’s creditworthiness when seeking traditional loans. On an individual level, high value asset purchase, such as land and vehicles, could also be evaluated using shared credit sales and receipts data, providing both buyers and sellers with insights into the financial reliability of potential customers.
In conclusion, expanding the data shared with CRBs could significantly improve risk management, debtor control, and financial stability, creating a more transparent and efficient trading environment for businesses of all sizes.
By Francis Shikuku
Accounts Assistant, Creditinfo Kenya
Creditinfo appoints Charles De Winnaar as Global Head of Sales Strategy and Sales Operations

Former Marsh Africa Sales Leader – Charles De Winnaar – brings a wealth of sales and leadership experience to drive Creditinfo’s international growth
London – 26th September 2024: Creditinfo, a global service provider for credit information and risk management solutions, announces the appointment of Charles De Winnaar as its Global Head of Sales Strategy and Sales Operations. As an experienced sales leader in financial services, Charles will lead Creditinfo’s global sales strategy and operations across its network of 30 credit bureaus. He joins the company from Marsh Africa, where he held the position of Sales & Distribution Leader.
In his role, Charles will be responsible for Creditinfo’s revenue growth, market expansion, and operational excellence to ensure scalability and enhance the customer experience across its different markets. From developing strategic partnerships to driving innovation in sales processes and technologies, he’ll play a key part in the next phase of Creditinfo’s international growth.
With over two decades of experience in sales and finance, Charles has a deep understanding of global financial markets and an impressive history of leading large-scale sales teams, bolstering business growth, implementing customer-centric solutions and transforming sales operations.
As Sales Leader at Marsh Africa, he executed the revenue and portfolio optimisation strategy across multiple Africa regions. Prior to joining Marsh Africa, he held various sales leadership roles at the National Bank of Kuwait and Barclay’s Bank Africa. During his time at Barclays, he led the development and launch of a first-to-market mobile payment wallet lending solution in Africa.
Charles De Winnaar, newly appointed Global Head of Sales Strategy and Sales Operations at Creditinfo said: “I’m delighted to join Creditinfo, a company that is committed to empowering people and businesses through financial inclusion. I look forward to working with the talented global team and contributing to Creditinfo’s long-term success.”
Satrajit Saha, Global CEO at Creditinfo said: “With his unmatched expertise in global markets and a proven track record of building strategic partnerships across different regions, Charles is a valuable addition to our leadership team. As we look to accelerate market expansion, harness digital transformation in our global strategy, and continue to facilitate access to finance for millions of individuals and businesses worldwide, Charles will be instrumental in helping us to achieve these goals.”
Charles will report directly to Satrajit Saha, Creditinfo’s Global CEO.
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About Creditinfo
Established in 1997 and headquartered in London, UK, Creditinfo is a provider of credit information and risk management solutions worldwide. As one of the fastest-growing companies in its field, Creditinfo facilitates access to finance, through intelligent information, software and decision analytics solutions.
With more than 30 credit bureaus running today, Creditinfo has the most considerable global presence in this field of credit risk management, with a significantly greater footprint than competitors. For decades it has provided business information, risk management and credit bureau solutions to some of the largest, lenders, governments and central banks globally to increase financial inclusion and generate economic growth by allowing credit access for SMEs and individuals.
For more information, please visit www.creditinfo.com