USMCA: late payments rise as pandemic recession bites

Introduction

The USMCA Atradius Payment Practices Barometer is an annual survey of B2B payments behaviour in the US, Mexico and Canada. This year’s poll reveals a dramatic rise in the total value of overdue invoices, including a doubling of payments that are more than 90 days  overdue.

Although the COVID-19 containment measures have negatively impacted trade across the  region and each of the USMCA countries are now in recession, business confidence among  those surveyed remains high. This is in large part due to the belief that banks will continue to provide finance and that, ultimately, sales and profits will continue to grow.
 

Key takeaways from the report

• Growth in credit sales favours domestic B2B customers
• Canada bucks trend by shortening average payment terms
• Company standards direct payment term policies
• Late payments up and long overdues double
• Short-term financing and disputes are leading causes of payment delays
• Optimism prevails with businesses predicting growth
   

Key survey findings for the USMCA

For further insights in the B2B payment practices in each of the economies surveyed
in the USMCA, please refer to the regional report or to the dedicated reports that form the 2020 edition of the Atradius Payment Practices Barometer for the USMCA, available for download on this website.

Available reports:

• USMCA (regional report): huge rise in late payments as pandemic recession bites
• Canada: growth in late payments knocks business confidence
• Mexico: does doubling of write-offs signify deep economic stress?
• the US: industry remains positive despite deterioration in payments behaviour

Overview of B2B payment practices in the USMCA - By industry

A detailed overview of the B2B payment practices by industry in each of the markets surveyed in the USMCA is contained in the market reports that form the 2020 edition of the Atradius Payment Practices Barometer for the USMCA.

The regional report for the USMCA covers the following selected industries:

• Agri-food
• Chemicals
• ICT/electronics
• Steel/metals
• Paper
• Transpoort
• Construction materials
• Services

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