A recent survey by Atradius has uncovered a growing divide in the business-to-business (B2B) credit environment across Asia, with smaller companies facing heightened payment stress. The Atradius Payment Practices Barometer Asia, published today, analysed feedback from 2,145 suppliers in China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan, and Vietnam. It found that whilst larger firms maintain stable payment behaviour, smaller businesses and certain sectors are struggling with liquidity pressures and volatile demand.
The survey reveals a “two-speed credit landscape,” according to Silvia Ungaro, Senior Adviser on B2B payment trends at Atradius. “Risk is becoming more concentrated rather than widespread, masking a widening gap in performance,” Ungaro noted. Stronger companies continue to sustain stable payment behaviour, whereas weaker segments are experiencing rising strain.
Key sectors such as construction and trade are particularly vulnerable due to their reliance on trade credit and long payment cycles. Manufacturing is also showing signs of stress, with increasing overdue invoices and bad debts. In contrast, the services sector remains relatively stable but cautious, reflecting broader economic concerns.
The survey highlights that over 80% of suppliers have experienced late payments recently, driven by customer cash flow stress. This has led to a domino effect, with many firms delaying their own payments, thereby amplifying risks across supply chains.
Looking ahead, business sentiment remains uncertain. “Companies are almost evenly split between expecting payment conditions to improve or deteriorate in the months ahead,” Ungaro stated, underscoring the ongoing uncertainty in the region’s key trade markets.
