Fonte immagine: Freepik
There is growing concern among Asian companies about a possible increase in insolvencies, which could negatively impact B2B credit trading. The management of credit risk and the impacts on supply chains is therefore a priority in order to protect the profitability of the business. These are the conclusions of a study by Atradius, one of the main credit insurance companies, which has just published the 2024 barometer on payment practices in Asia.
The payment behavior of B2B credit customers – underlines the report – has remained constant over the last 12 months for almost half of the companies interviewed, although this “hides deeper problems”. The rest is almost evenly split between companies that have seen payment practices worsen and those that have seen an improvement.
The fact is that late payments are still a major problem for Asian businesses and currently affect an average of 46% of B2B credit sales. Companies in Taiwan, Singapore and Hong Kong are the most affected. Bad debt now averages 4% of all B2B invoices, creating further financial strain, especially for businesses in Japan. Cash flow problems are cited by 42% of businesses in Asia as the cause of payment delays, particularly in India. Another important factor is inefficient payment processes among B2B customers.
“The global economy is expected to grow 2.7% this year. Weak demand and restrictive credit conditions also create difficulties for Asian companies. Defaults in Asia could increase by 23% due to the Chinese economic slowdown” underlined Andreas Tesch, Chief Market Officer of Atradius.
