On average, late payments affect just over a third of invoices issued by Chinese companies in B2B trade. Bad debts account for roughly 3% of all B2B credit sales, with energy and fuel sectors hit the hardest. Overdue invoices are typically converted to cash about three weeks past their due date, and 42% of businesses report that this disrupts cash flow.
To reduce the risk of liquidity challenges from late payments, companies use strategies such as postponing investment plans, delaying payments to suppliers, and accessing bank credit. Enhanced debt collection efficiency has also strengthened financial resilience by helping stabilize Days Sales Outstanding (DSO).
Learn more here: https://atradius.ca/reports/payment-practices-barometer-b2b-payment-practices-trends-china-2024.html
