B2B payment practices trends, North America (USMCA) 2024

Reports

Our survey of companies in North America reveals key insights into current B2B corporate payment trends. Explore emerging dynamics that could shape the future of business transactions.

Silvia Ungaro

Senior Advisor

9 Sep 2024

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B2B payment delays strain cash flow of North American business

Cash flow challenges remain a major concern, with late payments and bad debts impacting on financial stability and operational capacity. On average, almost half of all B2B invoices are
currently overdue, and bad debts affect an average 6% of all B2B credit sales. Companies in the US appear to be hardest hit. Customer cash flow issues contribute significantly to these
payment delays for almost one-third of companies in the region, primarily in Mexico. The response of 35% of companies across North America to poor payment practices is to delay payments to their own suppliers. Deferring investment plans is another popular strategy, especially among businesses in Canada.

Situations experienced by North American suppliers due to the impact of B2B customer credit risk

Economic woes and uncertain insolvency trends cloud North American business outlook

A clear diversion of opinion on the crucial issue of the outlook for insolvencies is evident among businesses in North America. 48% of the companies in our survey, primarily those in Canada, tell us they anticipate an increase in insolvencies during the year ahead, worried that
economic pressures will lead to a higher rate of business failures. In contrast, 49% of businesses, mainly in Mexico, expect no deterioration of the insolvency landscape.

In addition, 67% of companies anticipate a surge in demand for their products and services during the coming months, notably in Mexico. A little more caution is expressed about the prospects for profitability, with only 48% of businesses maintaining positive expectations about improved profits in the year ahead. Economic uncertainty may be one of the factors behind this relative caution. Among the major concerns looking ahead for businesses in North America is a slowdown in their domestic economies, especially in the US, which they fear may have a negative impact on their financial health.

Insolvency risk trend expected by North American companies surveyed

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers.

Interested in finding out more?

For a complete overview of the 2024 survey results for the North America (USMCA), please download the full report available in the related documents section below.

Summary

Late payments currently affect around half of all B2B invoices issued by North American businesses. Bad debts stand at an average of 6% of all sales transacted on credit with B2B customers.
35% of businesses across North America, particularly in the US, respond by delaying payments to their own suppliers, despite the risk of a domino effect.
There is a split among North American businesses about the outlook for insolvencies. 48% of companies anticipate an increase in insolvencies during the coming months, while 49% expect the insolvency trend to remain stable.
The main concern looking ahead for businesses in North America is the state of their domestic economies.