Companies in Asia Are Divided on Bankruptcy Prospects
The results of the 2025 Atradius Payment Practices Barometer survey for Asia have been unveiled, shedding light on the payment practices of businesses in the region. The survey indicates a nearly even split between businesses expecting stable payment behavior and those foreseeing a deterioration in payment risk.
According to the survey, late payments affect 44% of B2B credit sales, with bad debts averaging 5%, negatively impacting profitability. The top reasons for late payments include customer liquidity issues, delays in payment processes, invoice disputes, and supply chain disruptions.
Many companies foresee increased financial vulnerabilities and expect a rise in customer insolvencies in the near future. Despite these concerns, some businesses remain cautiously optimistic about future sales and profits while adopting strategies such as outsourcing credit risk management to mitigate risks.
The survey results paint a complex picture where payment risk is rising but with adaptive approaches being taken by firms to manage the evolving economic challenges. The Asia B2B payment landscape is described as fragmented, with significant worries over cash flow and profitability amid global trade policy uncertainties and worsening payment behavior.
It is important to note that the announcement does not specify the identity of the issuer, nor does it discuss the methodology or findings of the survey in detail. However, it does indicate a split in the outlook for payment behavior among businesses in Asia, with some businesses anticipating a worsening of payment risk in the coming months.
In conclusion, the 2025 Atradius Payment Practices Barometer survey for Asia reveals a mixed outlook for payment behavior among businesses in the region. Businesses are adapting to the challenges posed by late payments and payment risk, but there is a need for continued vigilance and proactive risk management strategies.
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