Coface, a global leader in trade credit risk management, has released its 2025 Asia Payment Survey, revealing that companies across the Asia-Pacific (APAC) region anticipate worsening payment behaviours amidst economic uncertainty. The survey, conducted among 2,400 companies in nine APAC markets, highlights a significant rise in ultra-long payment delays, with 40% of companies reporting delays exceeding 180 days, up from 23% in 2023.
The survey indicates that economic challenges, including a slowdown and higher costs, are prompting businesses to shorten payment terms, with two-thirds of companies expecting shorter terms in the next six months. This reflects a cautious approach to cost management. Bernard Aw, Chief Economist at Coface, noted, “The economic slowdown and higher costs are making it difficult for businesses to earn sales revenue.”
Despite these challenges, the survey found that businesses in Singapore have shown resilience, with improved payment performance and prudent credit management. However, India, Thailand, and China have experienced the most significant increases in ultra-long payment delays, contributing to a sharp deterioration in credit risk.
Looking ahead, 57% of respondents expect payment behaviours to deteriorate further, with slower demand and rising costs cited as primary risks. Nonetheless, 56% remain hopeful for improvement, particularly in India. The survey underscores the ongoing economic uncertainties and the need for businesses to adapt their credit management practices accordingly.
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