Asia's B2B credit landscape faces deepening liquidity divide
Over 80% of Asian suppliers report a rise in late payments, signaling a hidden strain beneath the surface of seemingly stable regional economic data. While large firms maintain steady operations, smaller businesses and specific sectors struggle with liquidity, creating a fractured credit environment across eight key markets.
The latest Atradius Payment Practices Barometer reveals that risk is concentrating rather than spreading evenly. Silvia Ungaro, Senior Advisor at Atradius, notes that strong companies continue to demonstrate stable payment behavior, masking the vulnerability of weaker segments that face mounting pressure from volatile demand and supply chain disruptions.
Sector performance reveals distinct vulnerabilities. Construction firms face the highest risk due to long payment cycles and reliance on trade credit, while the manufacturing sector is seeing an uptick in bad debts. Conversely, the services sector remains relatively stable, though businesses there are exercising increased caution as they navigate a broader economic slowdown.
This two-speed reality is exacerbated by firm size. Larger corporations leverage diversified customer bases and better access to financing to stay afloat. Small businesses, however, are forced to tighten their own credit terms to protect liquidity, a defensive move that often transmits further stress through the supply chain. With local firms evenly split on whether market conditions will improve or worsen, the regional outlook remains caught between persistent uncertainty and the slow buildup of payment discipline issues.
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