The Asia Corporate Payment Survey reveals tightening credit conditions among 2,400 companies, with payment terms decreasing to 64 days. Late payments increased to 60%, notably in Textiles and Construction. Despite challenges from inflation and geopolitical risks, 56% anticipate economic improvement in 2024, citing demand slowdown and competitive pressures as key concerns.
The Asia Corporate Payment Survey, conducted by Coface between December 2023 and March 2024, provides insights into the evolution of payment behaviour and credit management practices of about 2,400 companies across the Asia Pacific region. Respondents are active in nine markets (Australia, China, Hong Kong SAR, India, Japan, Malaysia, Singapore, Taiwan and Thailand) and 13 sectors.
Overall, credit conditions are tightening, with payment terms decreasing to 64 days from 66 in 2022. In the meantime, the duration of payment delays decreased from 67 to 65 days.
Late payments were more frequent, with 60% of companies experiencing them compared with 57% in 2022, but their average duration fell from 67 to 65 days. Ultra-long payment delays have increased. Textiles and Construction are the most affected sectors by these delays.
56% of companies expect the economic outlook to improve in 2024.
The year 2023 was one of normalisation from the pandemic, but the economic landscape continued to offer its share of challenges in the form of an elevated inflationary and interest rate environment amid persistent geopolitical risks. The surveyed companies expressed the same concerns with about half of respondents citing slowing demand and over-competitive pressures as the two main risks to their company’s operations in 2024. Coface forecasts economic growth in Asia Pacific to maintain at…
