Nearly half of B2B credit sales now overdue: report

The report also said bad debts have surged, currently impacting 7% of B2B invoices.

Overdue invoices now affect 49% of B2B sales on credit, with delays mainly attributed to customer liquidity constraints, according to an Atradius report.

The report also said bad debts have surged, currently impacting 7% of B2B invoices, posing a serious threat to cash flow.

Around 44% of B2B transactions in the consumer durables sector are conducted on credit. Currently, 38% of B2B invoices are overdue, a figure that has improved in recent months.

Meanwhile, 65% of B2B sales in the electronics and ICT industry were conducted on deferred payment terms. 57% of invoices are now overdue, with B2B customers typically taking an additional month to settle past-due accounts.

In the textile and clothing industry, 63% of B2B sales are transacted on credit, a decline from last year.

Overdue payments affect 52% of B2B invoices, an improvement from last year, with delays mainly caused by customer liquidity challenges.

Despite these concerns, most companies are either maintaining or relaxing their trade credit policies to support customer relationships and sales volumes.