Vienna (ots/PRNewswire) – The current Atradius payment behavior barometer surveyed Asian companies about the payment behavior of their business customers. As a result, 70 percent of the companies surveyed in Asia expect demand to increase in the coming months and are therefore placing a greater focus on the payment challenges arising from B2B business.
While the forecasts for world trade in 2024 are of growth of slightly more than
Assuming 3%, the pace of growth in Asia could remain subdued and may not be as robust as in previous years. A growth inhibitor is subdued exports due to weaker demand from key Asian export markets such as the United States and the European Union. This situation is unlikely to change in the short term, which in turn could weaken the resilience of Asian economies this year.
This is already clear, for example, from the decline in B2B credit trading for all companies surveyed by an average of 6% last year. However, this decline varied in the individual markets. Taiwan and Singapore saw significant declines, while China and Vietnam saw increases in B2B sales on credit.
However, looking to the future, Asian companies are much more optimistic about their growth prospects. This is shown by the survey results for companies in China, Hong Kong, Indonesia, India, Japan, Singapore, Taiwan and Vietnam current survey. The survey found that around 70 percent of Asian companies expect demand for their products and services to increase in the coming months.
Our survey shows not only that businesses in Asia are optimistic about the future, but also that they are addressing the challenges posed by the deterioration of B2B payment practices, reflecting the vulnerabilities of the global economy and market.
Although the status of each market varies, most Asian companies pay close attention to maintaining strong cash flow and liquidity. Effective measures to mitigate cash flow risks are already evident in various Asian economies, particularly China, Japan and India.
More than 50 percent of companies surveyed in the region responded that they have increased their efforts to collect overdue B2B receivables in the last 12 months. A strategy that is complemented in each market by specific credit risk management measures. These efforts have had a positive impact: late payments fell by 12 percent in Asia last year and now account for 44 percent of all invoiced B2B sales. Bad debts also fell slightly and affected 5 percent of all invoiced B2B sales.
Companies in Vietnam, Singapore and China report improvements in overdue payment management. The survey thus highlights the ability of Asian companies to adapt to the current economic turmoil and emphasizes the importance of thorough risk assessment when trading on credit with B2B customers.
Andreas Tesch, Chief Market Officer of Atradius, explains: “The flexible use of credit management by Asian companies, of which 47 percent of the companies surveyed have trade credit insurance, enables them to take advantage of opportunities in a growing market while at the same time protecting themselves against potential credit risks Secure B2B trading business. Their integration of trade credit insurance into their risk management underlines their resilience, forward-looking approach to business operations and their reduction of cash flow risks.”
About Atradius
Atradius is a global provider of credit insurance, guarantees, debt collection services and business information with a strategic presence in more than 50 countries. The products offered by Atradius protect companies worldwide from the risks of default when selling goods and services on credit. Atradius is a member of GCO, one of the largest insurers in Spain and one of the largest credit insurers in the world. Further information can be found online at www.atradius.at.
For more information: Atradius credit insurance
Niederlassung der Atradius Crédito y Caución SA Insurance and Reinsurance
Questions & Contact:
+49 (0) 221 2044 – 2210E-Mail: astrid.goldberg@atradius.com |Stefanie HeilkenPress OfficerTelephone: +49 (0) 221 2044 – 1034Email: stefanie.heilken@atradius.com
2023-10-25 20:04:16
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