Speed of B2B payments in the Americas declines

Press release

Baltimore, 28 June 2018 - Increasing level of deterioration in payment practices in the Americas

The latest results of annual B2B payment practices survey conducted by global credit insurer Atradius show an increasing level of deterioration in payment practices in the Americas.

  • Average payment duration increased from 61 days in 2017 to 63 days in 2018.
  • On average, 90.3% of respondents frequently experience late payments
    (the average is highest in Mexico (94.4%) and the U.S. (90.9%).
  • On average 50% of invoices are unpaid by the due date.

David Huey, Atradius President and Regional Director of U.S., Canada and Mexico stated,
“It is interesting that in a healthy, growing economy, bad debt continues to plague the B2B markets. To think that 51% of respondents have had a customer suffer bankruptcy or simply close their doors is eye opening. Any business that provides customer credit, domestically or internationally, will benefit from the data reported in the Payment Practices Barometer.”

 

 

Payment duration trend in the Americas 2018

 

 

The average proportion of uncollectable B2B receivables in the Americas declined, though slightly, from 2.1% in 2017 to 1.8% this year. At 2.5%, Brazil is the country with the highest percentage of uncollectable receivables in 2018, mainly because customers filed bankrupty as reported by 54.7% of respondents in Brazil.

 

 

Uncollectable B2B receivables in the Americas 2018

 

 

The level of intra-regional exports seems to be stable, particularly among the NAFTA countries. This, despite the threat of a protectionist turn by the U.S. and pending the revision of the free trade agreement. Nearly half of the suppliers interviewed in NAFTA countries say that more than 50% of their commercial activities occur within the region, with 16.5% trading exclusively within the current free trade area. Trade with the U.S. either increased or remained stable for 81.5% of the suppliers interviewed in Mexico. In Canada the positive trade picture is even more pronounced with total of 90.3% maintaining the same or better trade levels with the US.

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.