Despite minor improvements, the impact of late payments cannot be denied and businesses in Asia Pacific need more time to convert B2B invoices into cash.
Poor payment behaviour, a lack of information about the business or payment performance of customers, and economic and political risks have led to a reduction in the proportion of B2B sales in the Asia Pacific region being made on credit terms. However, the frequency of late payments seems to have declined as has the proportion of overdue B2B invoices. Still, the impact of late payments cannot be denied and it is taking businesses in the region more time to convert B2B invoices into cash. While 2018 brought small changes in the average proportion of uncollectable B2B receivables, some things remain the same – the main reason for writing off B2B receivables as uncollectible is the customer going bankrupt or out of business.
Full Atradius report here: Asia Pacific: an increase in payment duration in 2018