B2B payment practices trends in Mexico 2026

Bad debt remains a key financial risk in Mexico 

Against a backdrop of slower economic growth and ongoing pressure on business liquidity, Mexican businesses continue to balance the need to support sales and customer relationships with cash flow protection. On average, around 30% of the sales that Mexican companies currently make in business-to-business (B2B) trade are on credit terms. While Canada is the market most reliant on trade credit within North America, US businesses make comparatively less use of this form of financing. Within Mexico, large construction firms are the most active users of B2B trade credit. 

Trend data show that Mexican companies have shifted towards selling on credit more strongly than the regional average. Nearly half of businesses reported an increase in the share of their B2B sales on credit in recent months, well above the regional benchmark. Most of the remaining respondents said there had been no change, while only a small minority reported a decline. This suggests that B2B trade credit is becoming increasingly important in the Mexican market, as businesses are more likely to sell on credit to strengthen customer relationships and support sales growth. 

Mexican companies tend to offer longer payment terms to B2B customers than the regional average. While half of businesses set payment terms of up to one month from invoicing, this is notably below the regional benchmark. Longer payment terms are more common in Mexico than across the region, particularly those spanning two to three months. Only a very small proportion of businesses extend payment terms beyond three months, in line with the regional average. Medium-sized and large industrial companies offer the longest payment terms. Compared with the regional average, Mexican companies have shown a greater tendency in recent months to lengthen payment terms offered to B2B customers. However, this approach also increases exposure to cash flow pressures, late payments, and customer payment risk. 

Over the past months, B2B payment behavior in Mexico has remained relatively steady, with a larger share of businesses reporting no significant change than the regional average. Nevertheless, around seven in ten companies report experiencing late payments from B2B customers, highlighting that payment delays remain a common feature of B2B trade in the market, in line with the regional picture. Overdue B2B invoices account for an average of one fifth of all B2B invoices, slightly below the regional benchmark. Trend data show that Mexican businesses have been more likely than their regional peers to report a decrease in the share of overdue B2B invoices in recent months, which helped ease some of the pressure that late payments can place on cash flow and working capital.  

The reasons behind late payments in Mexico differ somewhat from the regional pattern. Banking delays are the most frequently cited cause of payment delays, reported more often than across the region. Customer cash flow constraints rank as the second most common reason, although they are reported less often than the regional average. Mexican businesses are also more likely than their regional peers to attribute payment delays to complex payment processes and currency or cross-border issues. 

Despite the observed decrease in overdue B2B invoices, survey findings show that delayed payments from B2B customers continue to translate into revenue losses and reduced profitability for many Mexican suppliers. While bad debts account for less than 1% of annual revenue for most companies, broadly in line with the regional average, Mexican firms are more likely than their regional peers to report higher levels of bad debt, with losses eroding up to 10% of annual sales revenue. This is particularly evident among large companies in the trade sector, highlighting the financial impact that customer defaults can have even in an environment where payment performance is apparently improving.  

Beyond profitability, the impact of customer payment risk extends to working capital. Mexican businesses are more likely than their peers in North America to report that customer payment risk affects operational liquidity, constrains investment, and leads to delays in payments to suppliers. These findings suggest that customer payment issues can have a ripple effect across the business, affecting both financial performance and operational flexibility. With customer insolvency the leading trigger for bad debt write-offs, the survey highlights the importance of assessing customers' financial strength before extending trade credit. 

To manage customer payment risk, Mexican companies most often rely on requesting upfront payment from B2B customers, a strategy used more frequently than across the region. They are also more likely than their regional peers to build bad debt reserves and offer early payment incentives, reflecting efforts to limit the financial impact of customer defaults and accelerate cash collection. The use of credit insurance and active credit management practices remain broadly in line with the regional average. Overall, these findings suggest that Mexican companies focus on protecting cash flow and limiting exposure to customer payment risk through preventive measures, rather than addressing issues only after they arise. 

Optimism tempered by economic uncertainty 

As Mexican firms look ahead to the coming months, they are markedly more optimistic than their regional peers about the outlook for B2B payment behaviour. Despite ongoing concerns about customer insolvency and bad debt, more than seven in ten Mexican companies expect payment behavior among their business customers to improve over the short term, far above the regional average, while only a small minority anticipate a deterioration. This positive outlook could help ease some of the pressure that customer payment risk places on working capital and profitability. Medium-sized companies in the trade sector stand out as the most likely to anticipate a worsening in B2B payment behavior, suggesting that concerns about customer credit risk remain in parts of the market. 

The relatively positive outlook for B2B payment behavior is also reflected in expectations for the financial health of business customers. Most Mexican businesses do not foresee an increase in customer insolvency risk over the short term, suggesting confidence that recent improvements in payment performance will be sustained. Nevertheless, around one in four companies anticipates a rise in insolvencies, highlighting that concerns about customer financial resilience have not disappeared entirely. 

Mexican businesses are also optimistic about their profitability outlook. More than half expect profit margins to improve over the short term, a notably higher share than the regional average, while only a small minority anticipate a deterioration. This suggests that Mexican firms expect a combination of stronger payment performance, stable customer solvency and continued trading activity to support profitability in the coming months. 

Despite their positive expectations for B2B payment behavior, Mexican businesses remain mindful of a range of risks that could disrupt customer payment performance in the months ahead. While an economic slowdown remains the most often cited concern, companies in Mexico are more likely than their regional peers to identify currency volatility and higher interest rates as potential threats to timely payment. 

Concerns about geopolitical instability, cybersecurity risks, and regulatory changes are also more common in Mexico than elsewhere in North America. This suggests that, while businesses are generally optimistic about the outlook for B2B payments, they remain aware of the challenges posed by the current business environment.  

A significant share of Mexican companies accepts that shifts in economic or market conditions can quickly affect customers' financial position and payment capacity. As a result, confidence in the payment outlook is accompanied by a continued focus on strategic credit risk management to safeguard cash flow, protect profitability, and strengthen financial resilience in the months ahead. 

Interested in finding out more? 

For a full overview of the 2026 survey results for Mexico, please download the market specific report from the related documents section below. Insights into North America are available in the related content section below. 

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