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A stand-out finding from our survey from our survey in the US is that companies report a range of diverse experiences in the payment behaviour of their B2B customers on credit. This mixed landscape in payment challenges is highlighted by half of all invoices issued in B2B trade currently being overdue, which has a clear impact on working capital management. Bad debts stand at an average 8% of all B2B invoices, adding further financial strain when written off as uncollectable, with the chemicals industry hardest hit.
A clear shift of approach among companies in the US is towards strengthening their strategic credit risk management framework. Around 15% more businesses than last year tell us they have moved away from in-house retention and management of customer credit risk to more
strategic methods, including the leverage of credit insurance, which acknowledges that their financial health is safeguarded even during payment challenges. It is a notable change, that recognises the limitations of relying solely on reserve funds to cover unexpected losses or significant write-offs, as well as the potential hindrance of holding funds idle rather them investing them in business growth.
Uncertainty about the future trend of insolvencies and its potential impact on the business landscape is evident in our survey of US companies. Around 50% of businesses, chiefly in the steel/metals industry, tell us they anticipate an increase in insolvencies during the year ahead, which could lead to financial distress. The US chemicals sector is more optimistic, expecting a positive trend in the coming months. There is also a mixed mood about the outlook for Days-Sales-Outstanding (DSO). 45% of companies believe DSO will remain stable, but a similar percentage anticipate an improvement in debt collection efficiency, notably in the electronics/ICT sector. This positivity reflects efforts to streamline payment collection through innovative methods, which can enhance cashflow and financial stability.
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.
For a complete overview of the 2024 survey results for the US and North America (USMCA), please download the full reports available in the related documents section below.
