Bad debts have surged in Hong Kong and almost half of all B2B credit sales are overdue. Customer liquidity issues appear to be the cause.
According to the Atradius report, “Despite these concerns, most companies are either maintaining or relaxing their trade credit policies to support customer relationships and sales volumes, even at the cost of increased financial exposure. Nearly 60% of B2B sales are now transacted on credit, with average payment terms around 60 days, leaving businesses exposed for longer durations.”
