Late payments remain a significant challenge for businesses across South America. In 2024, 51% of surveyed companies reported experiencing delayed payments. In Brazil and Colombia, over half of businesses noted payment delays, a trend also seen in key industries like construction, energy, and information technology (ICT).

The average delay in payments has also grown substantially, increasing from 36 days in 2023 to 52 days in 2024. This rise is particularly pronounced in Ecuador, Colombia, and Peru, where delays have lengthened by over 20 days within the past year. Ecuador has the longest delays, averaging 64 days, while Brazil (33 days) and Argentina (45 days) have the shortest.

This widespread increase in payment delays highlights the growing liquidity challenges businesses face due to weak demand and rising costs. Instances of extremely long delays, exceeding 150 days, though still rare, have also risen, now impacting 6% of surveyed companies compared to less than 1% in 2023. The pharmaceutical and textile industries are the most affected by these extended delays, with increases of 60 and 38 days, respectively.

Learn more here: https://www.coface.com/news-economy-and-insights/more-restrictive-credit-terms-and-much-longer-payment-delays-in-latin-america