Companies in Asia Divide Over Bankruptcy Prospects
In a recent survey conducted by Atradius, the payment behavior and risk expectations of businesses in Asia for the coming months have been revealed. The findings, announced via Media OutReach Newswire on August 11, 2025, indicate a nearly even split between businesses expecting stable payment behavior and those foreseeing a deterioration in payment risk.
The survey, which was conducted in Q2 2025 across China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan, and Vietnam, has highlighted several key trends. Late payments affect 44% of B2B credit sales, with bad debts averaging 5%, significantly impacting profitability despite appearing modest. Major causes of late payments include customer liquidity problems, delays in payment processes, invoice disputes, and supply chain disruptions.
Despite these challenges, around 60% of Asian companies have expanded trade credit offerings while keeping payment terms steady to manage exposure to payment risk, maintain customer loyalty, and encourage sales. Credit remains central, with 54% of B2B sales on credit and average payment terms of 48 days.
Businesses in the region are relying on bank loans, invoice financing, and internal funds as other key funding sources amid rising financial vulnerabilities caused by global trade policy uncertainty and liquidity constraints. This paints a picture of cautious optimism but with significant concerns about increased payment risks and cash flow pressures in Asia's corporate sector.
It is important to note that this announcement does not provide any new information about the businesses, their customers, or the Asia region. The announcement does not provide any new information about the entity that conducted the survey, Atradius, either. The location of the announcement is separate from Hong Kong SAR, where the survey was conducted.
The 2025 edition of the Atradius Payment Practices Barometer survey for Asia serves as a valuable resource for businesses operating in the region, providing insights into the current payment landscape and offering a basis for informed decision-making in the face of these challenges.
[1] Source: Media OutReach Newswire [3] Source: Atradius Press Release
- The survey reveals that about 60% of Asian companies in the business sector are expanding their trade credit offerings, while maintaining steady payment terms to manage payment risk, foster customer loyalty, and boost sales.
- In an effort to manage financial vulnerabilities caused by global trade policy uncertainty and liquidity constraints, businesses in the region are turning to bank loans, invoice financing, and internal funds as key funding sources.
